How To Become A Millionaire In 2023 | Alex Hormozi EP 816

0:00Hi, my name is Lewis Howes and welcome to the Daily Motivation Show.

0:11What math is required to make a million dollars? Like we can either sell, you know,$100 ,000,$10 ,000 things. We can sell$1 ,000,$1 ,000 things. Just how much somebody's going to spend with you over the period of time that they buy from you in general. Right now, if you sell those products, that might just be the lifetime value. But if you sell services like the dog guy, he probably has people who stay with him for years. And so he has to add up that total lifetime value as the number. So the first is like, what is the math to get to the million? and you have to figure out how many units you're going to sell.

0:36So let's use$1 ,000 because it's an easy one. So we have 1 ,000 sales of 1 ,000 bucks. Exactly. So we have to do 1 ,000 sales. Now, how are we going to break that down on an annual basis? Because 1 ,000 sounds like a huge number. Well, it's about three a day, right? Like, okay. Well, three a day is all of a sudden a lot more manageable. And we're like, okay, well, what creates a sale? So at some point, you have to sell something to someone. That's it. That's all you have to do to get to six figures to do that. So that's one avatar, one product, one channel. That's all that is. you add the fourth piece, which is consistency, right?

1:07That's what goes from six to seven. That's hard for people. And the consistent, yeah, 100%, because then you can tackle all the emotional or whatever it is that why you're not being consistent. But from a math perspective, we just have to break down what are the primary actions that result in the output, right? And so if three sales means that I sell one out of three people who want to walk, or one out of two people who come for the dog walking, okay, well, then I need six appointments a day. Okay, how do I get six appointments a day? It's like, well, I have six ways that I can get appointments, right?

1:33I can get appointments from referrals. I get appointments from affiliates. So I make a deal with the local grooming place for dogs or the local vet for dogs. I put my flyers up or something. Or the urgent care for dogs or pet coat. Like whatever. I mean, like there's a million ways, right? Like I get one of those guys. I figure out how to deal with them. And I say, I'll give you the first two months of what they pay me to you if you just send them to me. More money for them. And it probably helps their customers because it's a need that they can't solve. But they have the same avatar. Cool. So you got referrals.

1:59You got affiliates. You could just reach out to people you know. Just one-on-one. Like, hey, I've got my thing. like do you need help with your dog? You can reach out to people you don't know, which you can do through post-it notes, cold calls, emails, door knocking, flyers. Yeah, all of those things are ways that you can reach out to people you don't know one-on-one. You can make content about how dog walking is amazing and ways to walk your dog better, ways to take care of a dog. And the whole point of that is to get people to feel comfortable with you specifically and your brand that you will do a better job taking care of their dog than they will.

2:26Exactly, right? You want people to feel guilty that they're not doing all this stuff for their dog. And then they would start, you know, then you start getting, you feel inbound, right? And then finally, you have ads. You have run paid ads to get new appointments booked. And so those are the six primary things you can do to get customers. And so it's like, okay, I need six appointments a day. I have those six different ways that I can get them. Which of them do I feel most comfortable with? You can win at all of them. It could be soliciting your customers for the referrals. It could be getting the affiliates relationships set up.

2:53It could be the one-on-one DMs. It could be the ads. It could be the content. Any of those six would work. And so we just have to pick which one you want. And so then you just reverse engineer those actions. If you reverse engineer the affiliate thing, right? So how do you get affiliates? It's like, well, I need to reach out to 100 people a day. So you'd still use one of the other methods. So cold outbound, warm outbound content or ads, right? To get those affiliates and say, okay, well, if I reach out to 100 affiliates a day that are in my local region to see if they will partner with me and I can create some sort of relationship, I do that every day.

3:25Maybe I'll get two of those referral partners a week. And if each of those referral partners, week and get me 10 appointments, then for me to get my six appointments a day, it's 180 appointments per month, I need 18 affiliates. So all I got to do is get 18 affiliates. But then if you're thinking right now, you're like, well, wait, but I would be able to get 18 affiliates in probably like a month or two. And the answer is you're right. But people just don't think through the math of how to do it. Because if we're being real, there's no reason you should cap your business at a million. Right? And so to the same degree, when we ask the question, like, how do I make a million dollar business, you also think in increments that somebody who's trying to make a million dollars thinks in, right?

4:00Because I got asked on this TikTok, so they gave me this prompt. They said, hey, Alex, how would you make six figures a year? That was the question. And my immediate response was I would sell something for a hundred grand and then figure out what I would do for the rest of the year. And so it's like these people think about money differently. You know what I mean? If you think about how do I build this thing into like a hundred million, like, and you have to think of a number that's as high as you can fathom, right? If you can't fathom a hundred million, don't think that. But like as high as you can mathematically fathom.

4:27So it might be$10 million. Okay. Think like how many dogs would I need to walk? And you just reverse the math into what you need. Right. And then people I need to hire. Exactly. And then you start and then you start with the inputs because in the beginning, the only inputs you have is going to be the content. It's going to be running the ads and be doing the warm. It's going to be do the reach outs. That's it. Those are the inputs. And then everything else is going to stem from that. And then what will happen is if you have that, the advertising machine on the front end to bring people in, the bottleneck becomes your leading rather than the selling and the product.

4:52You're leading. Right. And so then the focus then becomes, how do I use that same, if you really want to get deep on those, how do I use that same skill set of advertising and then shift it to my internal? Because I still have to do warm reach ads. I still have to run ads. I still have to make content. I still can have affiliates or get referrals from my employees to get more team. And so every business has two funnels. You have the front end funnel that gets your customers and the back end funnel that gets your team. It says you crank this guy and you need to crank this one. And then that's how you can scale these things to the moon without stopping.

5:19A lot of people were told things about the world that were not true, and they take them as fact. And so they're making their decision calculus off of something that is not true, and so they're making conclusions off of false data. So that's why they can't see it, because what they're basing their assumptions on is false. The way that the biggest beliefs have been broken for me have been one of two ways. Reality proves me wrong, or someone tells me a story and gives me evidence from their lives. We went to a mastermind. We were just starting out. I was not making a ton of money. a guy got up there and he gave his little spiel and he was like yeah you know we're making three or four hundred thousand dollars a month i don't really know what i'm doing i'm not really sure i like the business blah blah blah and the guy did not seem smart and so that was like he through evidence like he reshaped my reality it was one of the most momentous thing i remember layla and i both had the same takeaway because she was next to me when we both saw this guy do this like we walked out like dude if he can like we both immediately had the same conclusion like if he can do it we can do it you either have reality proving wrong or someone else is that reality for you where they tell their story about, hey, I used to feel the same way.

6:18I used to think this thing. And then I will share my story so you don't have to have the scar. Yes. So you don't have to give up five years of your life to learn this lesson. I'll just give you the story so you don't have to have the scar. The thing is, is like a lot of us and myself included, I get caught up and they're like, man, these kids have it so easy, you know, blah, blah, blah, blah, right? YouTube wasn't even around when I, you know, like all this stuff, right? Yeah, yeah, yeah. But the thing is, if you ask most entrepreneurs what they want to do with their lives, they say they want to make an impact on the world.

6:41They want to make the world a better place. like making the world a better place what that looks like is it being easier for the next generation and so rather than lamenting the fact that the guys who are younger have it easier that was the point yes that was the like mission accomplished it reframed how i thought about being the greatest of all time because i think a lot of people have that goal to be the greatest i mean a lot of people have that goal but the more i thought about it the more i was like i can't have that goal because if i did my job then i have to have made people who are after me get there faster than I got there.

7:11And so the mark of the success is that I'm not the greatest of all time, but that other people who come after me are even better. And so it really shifted my relationship with how I saw past generations, guys who are older than me who are killing it. And I used to think, oh, I'm going to, I'm going to, I'm going to beat them. And if I look at my, how much I'm worth at this, at this age versus them, like just doing the math, I should be further along than them by the time I'm their age. And it was this kind of like different competition rather than this gratitude for like, well, of course I'm going to be bigger than they are at their age.

7:39I had them to help me. They didn't have them to help them. I'll age up and we'll be multi-billionaire, whatever it is. Right. And then there's going to be a young whippersnapper who had me to help, right. Who had me to help him out. Cause I'm sitting, you know, we have guys who apply for acquisition.com who are in their twenties to a hundred million a year. Right. And I'm like, and that was, that wasn't possible 50 years ago. It just wasn't. So we think about like the human the race in general, on a macro perspective, right? Rather than seeing the people who are older than you as the old dogs that you have to kick off and the people, the young whippersnappers behind you as, you know, resenting them for the fact that they got it easier.

8:13It just flipped the script for me in terms of like, I'm so grateful for these guys who came before me because they didn't have them. And then if these guys do eventually beat me rather than lamenting them to protect my ego, because what it really says is you're better than I am. Because if they're, If they're making more money at a younger age than me, that means they're better at business in some way than I was at that age. That's just a fact of business. They're better than me at that age. I think it just reframes it. And so it takes the ego away from I need to crush these guys or I need to poke at why it's easier for them.

8:45And instead say like it being easier for them is my purpose. How can I say that my mission is to document each other the best practices of building world-class companies and then not be pumped for someone to use the best practices of building world-class companies 10 years before I learn them to accelerate way past?

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10:04Again, have an amazing day, and I'll see you tomorrow with another episode of the Daily Motivation Show.

10:19Thank you.