The Simple Math to Make Your First Million | Alex Hormozi

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0:30Hi, my name is Lewis Howes and welcome to the Daily Motivation Show.

0:42I think so many people are afraid to launch their thing because they don't understand how to do it. And they think it's going to take a lot more time than it actually is. You may not be good at it right away. Yeah. Your website probably wasn't perfect. Yeah. But you got the website up within four hours. Yeah. and then you can make it better over time. And there's this, because that first hour is you paying down the fear of uncertainty. It's all these fears of like not being enough. What if I feel stupid? Because you have felt stupid when you try to figure something else out. But like if you remember how hard it was to learn how to tie your shoes when you were a kid, right?

1:15Because it's like, I have to remember then this one and then the two bunny ears, you know, the whole thing, right? But like now you can do it in your sleep. And it's just the emotions we have about beginning work because the judgments we're going to put on ourselves about how we're doing. But if we can remove the judgment of how we're going to do and say, I assume I'm going to suck. And all I'm doing is I'm going to start pulling the thread of this 20 hours. That's my only goal is to start sucking. That's it. I just want to start sucking rather than nothing. Right. You got to love embarrassing yourself the way I feel like it.

1:43These skills that you're going to learn, they're going to bring you a lot of value long-term. They're not easy to start with. They're not. And so you've got to be okay with accepting embarrassment of your own self. What's the belief that, why is it so hard for people that haven't made money? Let's talk about like the daunting number for a lot of people, which is seven figures. It was hard for me to get over the hump mentally and psychologically of like, how do I go from$5 ,000 a month to$10 ,000, then$10 ,000 to$20 ,000. And then how do you get a business, I'm talking about business owners, how do you get it to six figures and then to the seven figure mark as a business owner?

2:25Do we overcomplicate money in our minds if we've been taught stories as kids or been taught beliefs about it? And how do we get over the overcomplication of making seven figures as entrepreneurs? I agree with you that I think it gets overcomplicated. and so we just have to boil it down to the first principles of the math. Like what math is required to make a million dollars, right? Like we can either sell, you know, $100,$10 ,000 things. We can sell$1 ,000,$1 ,000 things. We can sell, and when I say things, you don't have to price your product at$1 ,000. Your just lifetime value of a customer has to be$1 ,000, right?

3:02So 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. And it's like, well, how many of those do I need to sell? And then you just divide it to back into it. And so once you know the math, right? 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.

3:27So let's just use something that's, let's use$1 ,000 because it's an easy one. Okay. A thousand sales for a thousand bucks. Exactly. So we have to do a thousand sales. Now, how are we going to break that down on an annual basis? Because a thousand sounds like a huge number. Well, it's about three a day, right? Like, okay, well, three a days, all of a sudden, a lot more manageable. And we're like, okay, well, what creates a sale? So at some point, to get set, I'm going to take one step before for six figures for anybody who's not there. It's like you have to sell, and this is, again, for business owners and entrepreneurs.

3:56If you have a job, then awesome. But if you're trying to make money, 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 medium, one channel, right? One product, one channel. That's all that is. You add the fourth piece, which is consistency, right? That's what goes from six to seven. That's hard for people. 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?

4:25And 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? I 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 petco. Like whatever. I mean, like there's a million ways, right? Like I get one of those guys.

4:54I 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. Yes. 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. You got affiliates. You've got, you could just reach out to people you know, just one-on-one. Like, hey, I've got my thing. 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. All of those things are ways that you can reach out to people you don't know one-on-one.

5:23You can make content about how dog walking is amazing and ways to walk your dog better, ways to take care of a dog. 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. 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, if ads, right, you pay, you have run paid ads to get, to get new, new appointments booked, right? And so those are the six primary things you can do to get customers.

5:55I have a brand new book called Make Money Easy. And if you're looking to create more financial freedom in your life, you want abundance in your life and you want to stop making money hard in your life, but you want to make it easier, you want to make it flow, you want to feel abundant, then make sure to go to makemoneyeasybook.com right now and get yourself a copy. I really think this is going to help you transform your relationship with money this moment moving forward. We have some big guests and content coming up. Make sure you're following and stay tuned to this episode of the Daily Motivation Show.

6:36Thank you so much for listening to today's episode of The Daily Motivation, and I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description. That will take you to the full episode of our main podcast on The School of Greatness. And if you are loving The Daily Motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple Podcasts right now. And if you want more exclusive content and ad-free listening experience, make sure to subscribe to our Greatness Plus channel on Apple Podcast right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the Greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

7:26Again, have an amazing day, and I'll see you tomorrow with another episode of the Daily Motivation Show.

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