The Road to Success (w Tom Bilyeu) Pt. 1 Sept. '22 Ep 480

In this discussion, Alex Hormozi shares his insights on business growth and the mindset required for success. He emphasizes the importance of ascribing meaning to our actions and outcomes, viewing business as a game, and the necessity of focusing on one thing to achieve material success. Alex advocates for a strategy of selling to one avatar through one channel, utilizing advertising, selling, and product development as key skills. He introduces the concept of the "Rule of 100" to maintain consistency in business actions. The conversation also delves into overcoming the fear of judgment and the importance of discipline and sacrifice for long-term achievements. Alex's approach to sales, which he finds therapeutic, is about empowering clients to make decisions by guiding them through their own objections and insecurities, highlighting the value of clear communication in sales. He concludes by expressing the contrarian belief that emotions don't have inherent meaning; rather, the meaning we ascribe to our experiences shapes our reality.

• Alex believes that meaning in our actions and outcomes is assigned by individuals themselves, not inherently present.
• This belief has been a foundational part of Alex's material success.
• He sees business as a game and shares his experiences to help others grow their businesses.

"For me, a very core belief that has been, I think, intrinsic to at least the material success that we've experienced has been a belief that meaning is self ascribed, so that there is no inherent meaning in the things that we do or the actions we take or the outcomes that happen, but only that which we ascribe to it."

The quote emphasizes the perspective that individuals are responsible for assigning meaning to their actions and outcomes, which has been a key to Alex's success.

• Focus on one opportunity rather than many to avoid being overwhelmed.
• The initial goal for a startup should be to sell something to someone, focusing on one avatar, one product, and one channel.
• Consistency in one's chosen channel and method is crucial for sales.

"They should focus on one thing in general, rather than lots of different things, things that you're not sure about. Because if you're starting out, everything looks like an opportunity. So the correct answer is all of them are opportunities, but all of them won't work unless you pick one, right?"

Alex advises that focusing on a single opportunity is essential when starting a business, as it prevents distraction and overextension.

• Essential skills for reaching six figures include advertising, selling, and understanding the product.
• Advertising is defined as making the product known to others.
• Consistency in applying these skills can lead to significant income, potentially reaching $100,000 a month.

"You have to learn how to advertise, which I define as the process of making known. So how do you let other people know about the stuff you sell?"

This quote highlights the importance of advertising as a critical skill for entrepreneurs, which involves informing potential customers about the products being sold.

• Alex's "rule of 100" involves committing to 100 primary actions per day for 100 days to achieve six figures.
• This could include content creation, reaching out to potential customers, or a daily ad spend.
• Consistency in these actions is key to achieving the desired financial outcome.

"You have to pick one of them, but 100 per day, and you do that for 100 days, and I promise you, you'll be making six figures if you do that."

The quote introduces the "rule of 100," which is a structured approach to achieving business success through consistent and focused actions.

• Fear is a major obstacle that prevents people from taking the necessary actions to succeed.
• People are often afraid of not being validated or judged by others.
• Overcoming fear requires discipline and the willingness to make short-term sacrifices for long-term achievements.

"I think it's fear, mostly. I know that's not a skill, but I think it's a character trait."

Alex identifies fear as a significant barrier to success, suggesting it's not a lack of skill but rather a character trait that hinders progress.

• Learning from failures and acquiring knowledge and skills is critical.
• Marketing is about testing and learning from both successes and failures.
• One must be willing to acknowledge their shortcomings and improve upon them.

"Marketing is just a fancy nine letter word for test."

Tom underscores the importance of testing in marketing, highlighting that failure is a part of the learning process and not a permanent state.

• Alex's past failures taught him valuable lessons.
• Skills, experiences, and character traits gained over time are more valuable than material assets.
• These attributes can be leveraged for future success, even after significant setbacks.

"I didn't lose the five years. I lost the assets, which were not the most valuable thing that I had earned over that time. It was the skills, the experiences, and character traits, because I still had those."

Alex reflects on his past failures, concluding that the intangible gains such as skills and experiences are more valuable than any material losses.

• Exposure to information is not the same as learning.
• Most learning comes from doing and taking action, not just consuming information.
• The "rule of 100" is a way to force learning through action.

"99% of the things that I have learned, I've learned through doing."

Alex clarifies that true learning is a result of engaging in actions and experiences, rather than passively absorbing information.

• The importance of volume and consistent effort in achieving success is emphasized.
• There is a common underestimation of the amount of work required to be successful.
• Success is often not immediate; it requires persistence and learning from feedback.
• Volume of work leads to skill development and valuable feedback.
• The example of learning from repetitive action, such as doing squats, illustrates the concept of improvement through volume and practice.

"And then I think most people have a dramatic underestimation of how much volume it takes to be successful independent of the thing."

This quote highlights the common misconception about the amount of effort required for success, suggesting that people often underestimate the volume of work needed.

• Unrealistic expectations can hinder success.
• People often expect immediate results without sufficient experience.
• Lowering the action threshold and accepting initial failure is crucial for progress.
• The expectation of immediate success is unrealistic and detrimental.

"And it would be unreasonable for you to be good if you haven't done it before."

This quote stresses that expecting to be proficient at something on the first attempt is unreasonable and that it is normal to not excel initially when trying new things.

• Authenticity and expertise are crucial in content creation.
• Audiences constantly seek reasons to trust the content creator.
• Success in a field often precedes successful content creation in that field.
• Sharing personal experiences rather than instructing others can be more effective.
• People prefer learning from those with proven success and trustworthiness.

"And so I think you should advertise the stuff that you sell, let people know about what you're doing, but it should be about the true expertise that you have, which is oftentimes just talking about the stuff you're doing rather than saying you should be doing this."

This quote emphasizes the importance of showcasing genuine expertise and sharing personal actions and experiences rather than merely instructing others on what to do.

• Creating content can lead to a fear of appearing imperfect.
• The fear of failure can inhibit growth and experimentation.
• Embracing failure is essential for improvement and follows the "physics of progress."
• The scientific method analogy is used to describe the process of testing and learning.

"But people are so interested in looking cool that the content becomes the trap that stops them from actually getting good."

This quote suggests that the desire to maintain a certain image can prevent content creators from taking risks and improving their skills.

• Personal motivations can propel individuals toward success.
• Childhood experiences and parental expectations can shape one's drive.
• Reflecting on personal goals and motivations is important for authentic success.
• Recognizing and redirecting motivations can lead to more fulfilling achievements.

"And so I wasn't really setting any rules. I was just playing with the rules that were given to me and kind of thing like, is this even the game I want to play?"

This quote reflects a moment of self-awareness where the speaker questions whether they are pursuing their own goals or merely fulfilling others' expectations.

• Research has identified three common traits among highly successful individuals.
• These traits include a superiority complex, crippling insecurity, and impulse control.
• The combination of these traits creates a powerful drive toward success.
• The level of these traits varies among individuals and contributes to their success.

"And if you put those three things together, it's like you've got a big goal that's pulling you this way. You've got this big fear that you are running away from, and then you've got impulse control to keep you focused on the one thing that matters."

This quote summarizes how the interplay of the three identified traits can lead to high levels of achievement by balancing ambition with control and fear.

• Delaying gratification is a significant factor in long-term success.
• The ability to delay gratification varies among individuals and can predict financial stability.
• The "marshmallow test" analogy is used to discuss the importance of waiting for greater rewards.
• The degree of one's ability to delay gratification can determine their level of success.

"If you can wait twelve months, if you can wait a decade, you're going to be above the 1%."

This quote implies that the ability to delay gratification for extended periods is correlated with achieving significant success and financial prosperity.

• Success is linked to one's ability to work without immediate results, potentially waiting years or a lifetime.
• Extending one's time horizon for measuring success allows for greater achievements.
• Bill Gates' quote emphasizes the common mistake of overestimating short-term abilities and underestimating long-term potential.
• Individuals who plan and think in terms of decades, rather than days or months, demonstrate a mindset that aligns with significant future success.
• Immediate gratification often hinders people's abilities to achieve long-term goals, such as in dieting or learning new skills.
• Alex encourages listeners to support the podcast as it provides value without advertisements or sales, aiming to help entrepreneurs succeed.

"If you can wait ten years for an outcome, be able to do the doing without seeing the result for ten years, you will be able to be above any most achievement of most people."

This quote highlights the importance of patience and long-term commitment to achieve exceptional success.

"People overestimate what they can do in a year and underestimate what they can do in a decade."

This quote, attributed to Bill Gates, points out the common misjudgment of one's abilities in the short term versus the long term.

• Tom discusses the concept of patience, suggesting that while patience is necessary, one must also work tirelessly, likening it to running a marathon at a sprinter's pace.
• Winston Churchill's quote about maintaining enthusiasm through failures is highlighted as a key to success.
• The ability to endure boredom and continue working towards a goal, despite not seeing immediate results, is crucial for entrepreneurs.
• Tom emphasizes the importance of attaching meaning and purpose to one's work to maintain motivation through challenges and setbacks.

"Success is the ability to go from failure to failure without a loss of enthusiasm."

This quote, often attributed to Winston Churchill, underscores the necessity of resilience and maintaining a positive attitude through repeated challenges.

"Boredom kills more entrepreneurs than fear."

Tom suggests that the inability to stay engaged with tasks that are not immediately rewarding is a significant obstacle for entrepreneurs.

• Alex discusses the concept of "need to believes" in the context of investment decisions, aiming to minimize uncertainties and maximize the likelihood of a business's success.
• The discussion shifts towards the idea of taking action to ensure success, suggesting that consistent effort over time, such as making a large number of cold calls, is likely to yield improvement and success.
• The importance of directionally correct actions over binary success/failure outcomes is emphasized, with the idea that starting something is better than inaction.
• Both Alex and Tom reflect on their past failures and the learning experiences that led to their eventual successes.

"What amount of action would it be unreasonable for me not to be successful?"

Alex poses this question to frame the idea that a significant amount of effort in a particular direction is likely to result in success.

"With 20 hours of focused effort, most people can be pretty decent at something."

This quote suggests that a relatively small amount of dedicated practice can lead to competency in a skill, but many people delay even starting.

• Alex and Tom discuss the perception of sales and how it can be seen as negative or beneath someone, but through exposure, one can learn to appreciate and excel in it.
• The conversation turns to the qualities that make a salesperson effective and not "creepy," with Alex being highlighted as an example of good salesmanship.
• The concept of "holding the frame" in sales is introduced, referring to controlling the conversation to increase the likelihood of a successful outcome.

"It's structuring a conversation to increase the likelihood that the person who's on the other side gives you money."

Alex defines sales as a structured conversation aimed at achieving a financial transaction, indicating the strategic aspect of sales.

"I love sales. So when two people interact, in general, no matter how much you love your job, there's always overhead."

Tom expresses his passion for sales and acknowledges that regardless of one's profession, there are always less enjoyable tasks involved.

• The concept of "frame" refers to the context in which an individual holds authority or dominance.
• The idea of "alpha" is contextual and can vary depending on the situation.
• In sales, holding the frame involves having a clear agenda and controlling the conversation.
• Clear communication is emphasized as a major advantage for salespeople.
• The process of selling includes clarifying the problem, turning desire into a decision, and using a clear framework for decision-making.

"Whatever it is, there is a decision of who is alpha. Now, the alpha is also contextual."

This quote introduces the idea that in any interaction, there is an unspoken decision about who holds the dominant position ("alpha"), which can change based on the context of the situation.

"The ability to hold the frame for most salespeople is really having a clear agenda and controlling the conversation."

This quote highlights the importance for salespeople to maintain control over the interaction by having a clear purpose and guiding the conversation, which is integral to successful selling.

• Effective sales strategy involves clear communication and understanding the customer's problem.
• Salespeople should focus on helping the customer make a decision, not just on making a sale.
• Overcoming objections is a critical part of the sales process.
• Sales calls should be direct and focused on the issue at hand, avoiding unnecessary conversation.
• The goal is to empower the customer to make a decision that moves them towards what they want.

"The goal is to get the person to decide."

This quote emphasizes the objective of sales, which is not necessarily to get a person to buy, but to help them reach a decision.

"People blame all the woes of their lives on circumstances, other people, and then ultimately themselves."

This quote from Alex explains the common reasons people fail to make decisions, which salespeople must address to help customers overcome obstacles.

• Salespeople need to address and debunk excuses, such as lack of time or needing approval from others.
• The sales process should peel back layers of objections to get to the core of a person's reluctance to make a decision.
• Sales techniques involve reframing objections and empowering the customer to take action.
• The sales conversation should guide the customer through a logical process to address their concerns and lead them to a decision.

"If you learn how to do it when you're busy, when it gets quiet, you'll succeed even more."

This quote explains how overcoming the "I don't have time" objection can lead to long-term success, as people learn to manage their goals even when busy.

"It's today the day, right?"

This quote is part of a rhetorical strategy to challenge the customer to take action and make a decision, rather than postponing due to external objections.

• Beliefs about the meaning of events and emotions are subjective and can be chosen.
• Reframing discomfort and stress as a natural part of the process can help manage emotions.
• The discrepancy between expectations and reality often causes emotional responses.
• Entrepreneurs can benefit from a belief system that frames experiences positively, helping them stay on track towards their goals.

"It's the beliefs we have about our emotions that are the things that drive us mad."

This quote from Alex discusses the idea that our beliefs about our emotions, rather than the emotions themselves, cause us distress, implying that reframing these beliefs can lead to better emotional management.

"There is nothing either good or bad, but thinking makes it so."

This quote, referenced by Tom, suggests that our perception of events as good or bad is shaped by our thoughts, which in turn influence our actions and outcomes.

• Beliefs are the foundation for behaviors, and behaviors determine outcomes.
• It is important to hold beliefs that are effective and aligned with one's goals.
• Recognizing the link between beliefs and outcomes can lead to more intentional and goal-oriented thinking and actions.

"If my behaviors are predicated on my beliefs and my outcomes are predicated on my behaviors, then my outcomes are actually linked to my beliefs."

Tom's quote underscores the causal chain from beliefs to behaviors to outcomes, highlighting the importance of holding empowering beliefs to achieve desired results.

"I only do and believe that which moves me towards my goals."

This quote from Tom encapsulates his philosophy of adopting only those beliefs and actions that are conducive to achieving his goals, emphasizing a pragmatic approach to belief systems.