Posts of the Week

For anyone who hasn't stepped inside the Hormozi world (Raises hand -- I haven't read or watched one thing from him) there is a ton of wisdom to be gained in merely observing his tactics and his execution.

You don't need to take out a second mortgage to learn it.

Simple study his tactics with Observed Modeling.

The biggest lesson is audience acquisition and having control over it.

When Hormozi stormed on the scene many years ago with his now infamous "I have nothing to sell you" few people knew what was going on. I did -- he was playing the long game.

He dropped value bomb and value bomb and asked for nothing. Sold nothing.

He built trust quickly, because after all, this guy is selling nothing!

The audience grew.

He sold his book on Amazon for cheap (or free).

The audience grew.

More value bombs via YouTube.

The audience grew.

Once the audience was large enough and established, then he monetized it... it started with snagging equity investments in growing companies that met his taste and audience.

The audience grew.

The big slaughter happened this weekend when he sold gazillions in books in one day, not to mention the corresponding mega upsells.

As a book publisher myself, this is impressive on many fronts.

His book is NOT on Amazon (yet) -- he sold it direct.

Therefore, he controlled pricing ($30 for a paperback book is far above normal paperback pricing for a non fiction-book) and maximized profits. On Amazon one book sale might profit $10. A publisher? $4.

Because Hormozi controls the publishing and logistics? The margin is likely $25 on one book.

Translation?

He told all the middlemen to F-OFF.

He CONTROLLED the entire process and gave AMAZON NO CUT.

Due to the depth and control over his audience, he didn't need Amazon.

Yep, he cut out the biggest player in the game, because he could.

In publishing, this is impressive "Harry Potter" level of power.

I'm impressed.

And it demonstrates why influence and control is the only way to rid yourselves from the Big Tech umbrella. Better, Hormozi used Big Tech like a rented mule to grow his audience, but made damn sure he had could leverage it later.

Love or hate him, it's a masterclass in CENTS.

I paid for his workshop and went last year.

It has made me many many tens (if not hundreds) of thousands of take home profit directly that I can attribute to that workshop just in the few months following it.

That’s how to frame your decisions.

If you are some dork with no business and no money, just watch free YouTube videos, buy a $20 book or two, learn and implement.

Thats all you need.

But if you’re a business owner making 100k and you want to be making 500k, spend 10k on stuff to get you there and grow your knowledge and skills.

If you’re making 500k and want to get to 1m-5m a year in profit, it’s worth paying 35k for experts to work with you one on one.

So if you’re making less than 100k in take home profit from a business, relax, this stuff isn’t really for you, go read a cheap book and watch some videos and take action.

If you’re here and making a million a year in profit, you probably already know a ton and don’t need a guru for a few grand. You have complex problems.

But if you’re in the middle, Hormozi has some amazing offers that will really help you get to the next level. Amazing marketing and sales stuff. Spend a few grand, get to the next level, make mid six figures and keep growing.

Yes, he gets super rich doing so. And that’s awesome. Thats what the losers will never understand. Anyone getting super rich must be a scam in their eyes. It’s okay for there to be win wins. We should study the win wins and learn from them and make our own life a win win too. One where you have peace of mind, and make 50 million dollars. Where you can come give a speech and walk away having sold $20 million worth of something by just talking. That’s awesome.

We loved Switzerland so much last year, we went back, truly the best country in the world

We also checked out Gstaad to see what real money looks like

I was not disappointed, a Ferrari F40 drove past like it was someone's daily, and the locals were lovely and very down to earth.

Seeing money like that makes you think bigger and more long-term.

It also makes you think about what really matters. These people are all so fit and healthy, happy. Where they live, they can ski, drive sports cars in the mountains, hike, swim, etc, and it's just generally peaceful, safe and secluded.

Complete opposite of what I imagine Dubai to be like.

Although I will be visiting Dubai to compare later in the year, if anyone wants to join, let me know.

Our solution for handling the balancing act between capacity, attendance, and scheduling.

If you have a recurring service, you have a set number of customers that need servicing each day. That requires a set number of employees.

If you need 5 employees working at 100% capacity and you only have 5 employees. You will be on schedule for approximately….0 days until your schedule is screwed.

Someone will quit when you need them most.

Someone will get sick.

Someone will just….not come in.

How much does this happen?

In an industry like mine, everyone is basically a shitty person. It happens….almost every day.

So I always had an extra truck and trailer and an extra employee and they would all work at reduced capacity and get paid for the full day if everyone showed up, we would get ahead of schedule a bit and that’s how we managed it.

Someone suggested an alternative, which was if everyone was able to work, offer a day off to one of the workers, and if there’s no takers, dismiss someone for the day and make them have the day off.

I thought there’s no way that would work. People want to work and they will be mad they aren’t getting a chance to.

I was wrong.

These lazy turds fought over getting a day off like it was the last lifeboat on the titanic.

So now we don’t need an extra truck, we save on payroll, and we fall behind less.

If the average attendance of a worker is 90%, we are short on 10% of days. We try to make that up on the weekend but it’s hard.

With our new model, the only days we are short are when it’s multiple people. So that’s 10% of 10%. 1%.

If attendance is 80%, the new model means you’re short on 20% of 20% of days.

It’s a huge difference. You don’t pay any extra on payroll.

Always set up the game so that no matter which action someone else takes, you’re okay with it.

When people wouldn’t come in, I’d get pissed. Their laziness is affecting my business.

Now?

Who cares.

Set it up so that when other people are predictably shitty, it still works out.

Our contract cancellations are like that.

You sign up for lawn care at $150 a month and you are a batshit crazy Karen after one visit for no reason and refuse any attempt at helping you?

Fine, cancel and pay us $300 for an early termination. You don’t really “pay it”, it’s taken out automatically because your card is on file. We submit your contract if there’s a dispute and we usually win.

We get $450 to mow your lawn 1-2 times and it pays for the acquisition cost to get another customer who isn’t insane.

So much of being a business owner is just strategically managing other peoples selfish, borderline evil behavior. Everybody will do almost everything in their power to oppose your interest of making money. Employees, customers, vendors, government. They are all fighting against you to give you as little as possible, take as much as possible, and lie to you all the time.

In your business, whatever problems you’re having when it comes to other people’s choices, think “how can I set it up so I’m happy with whatever someone else does?”. Add penalties, change terms, etc.

Another example was I was tired of employees leaving trucks unlocked at our lot. I would get mad when I checked and the doors were open.

Now, I will take $100 out of your paycheck if I check and your truck is unlocked.

Now I’m thrilled if it happens.

There are many examples of this, apply it to your own business.

A few other notes

Look up Diderot effect, and also consider the habit that’s going to build where as your income increases you finance more and more expensive things

How much will insurance and maintenance cost? As others said it’s probably going to cost you 100k which at 18 is a lot of money, enough to travel the world a year, or buy a house

If you want to build your personal brand my first thought was you are building it on authenticity, I don’t see how a car would help, but if it does, just rent one

Maybe rent one and see if it helps with the videos

You’d be able to rent a nicer one than that and you’d save a lot of money

Or just change your personal brand, travel to luxury places is just as much of a flex, and harder to fake than renting a car

If you want something nice buy a nice watch, no overheads, holds its value, can actually wear it, unlike the car you won’t ever want to sell it even if you upgrade, but if you did need to it will be a lot easier to sell especially for a good price

I actually came into this thread originally to say buy the car have fun be abundant etc so I get it but yeah this one is not the move imo

Maybe spend 20k on a vw and 10k on a watch, 5k on a rental and a videographer

A paid off vw at 18 is a flex, most adults don’t have a car paid off

A Rolex at any age is a flex

Travelling the world especially at 18 is a flex and the best experience you’ll ever have

A cheap financed used sports car is just dumb

Want to feel abundant? Have no debt and a heap of savings