Why Do Smart People Stay Poor (on Impact Theory with Tom Bilyeu Pt 1) | Ep 849
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Hey guys, welcome back to the game. This is a guest spot on Impact Theory with Tom Bilyeu. I had a blast doing this particular episode. We're breaking this into two parts. We go deep on a ton of topics. It's me, so it's going to be business related. I don't get to go this deep on stuff often, and so it was enjoyable. Alex Hormozy, welcome back to the show. Thank you so much for having me, Jerry. Truly a pleasure. You're welcome.

Let me ask, why do smart people stay poor? They don't do the things that makes people rich. And I think they probably convince themselves that they're smarter than they are. And so if you were smart, then you would be rich. And so then it follows that there's probably a series of traits of behavior that you don't do either because you think you're above them or

or you don't know about them. So either it's a declarative knowledge deficit, meaning you don't know about the thing, which has nothing to do with the intelligence. Like if somebody eats an apple, sorry, banana, and they're from a different country and they just eat it through the skin, it doesn't mean that they're stupid. It means they're ignorant, which is very different. That's a declarative deficit. Then there's procedural deficits, which is knowing how to. And I think one of the big difficulties with

smart people is they have tremendous amounts of declarative knowledge and very little procedural knowledge. And so it's like saying you read a book on how to do a private equity deal and you know everything that has to happen, but you've never done a private equity deal. It's probably unlikely that you know how to do a private equity deal. And so delineating those things has been helpful for me. And since the procedural knowledge has significantly more utility on a daily basis from a moneymaking perspective, I have reduced, or at least this is me, you know,

And I try to get to the procedural part of it as fast as I possibly can, because I know that I'll learn significantly more by failing and doing it than, you know, reading 100 books on sales versus doing 100 phone calls. Like you'll learn a lot more in the first 100 calls. Yeah, it's interesting. This to me is I'm always trying to get entrepreneurs to one thing from first principles, which most people don't even know what that means. So you start by defining it. But yeah.

um, this feels like that getting to understand the essence of what it is so that you understand it the way that somebody understands a combustion engine. So you can get in and be like, well, I know what has to happen for this car to go. And if I know what has to happen, you can break it, you can pull it apart and I'll be able to put it back together because I actually understand how this works. So how does wealth creation work? Uh,

You have to have a mechanism for letting people know about your stuff. And so that can happen on a variety of channels. That typically happens either one-on-one or one-to-many. And so one-on-one would be you knock on doors, you reach out to people via DM, you send emails, you send direct mail, you make phone calls, you send text messages. Any of those are one-on-one. Outreach is one way of letting people know. You could do one-to-many to people who already know who you are, which is basically today's equivalent of a billboard, which is social media. You make posts.

You make content. The third way would be that you run paid advertisements. So on those same platforms, you just pay to get the exposure rather than doing it by earning it through quality content. And then the kind of like the door, door four would be using those three methods to then get someone who already has exposure

the type of person that you want to advertise to and doing structuring some sort of deal with them. But you'd still need to reach out to them one-on-one. You'd have to make content to attract them or you'd have to run an ad to get to that person. So these are the core things that someone must do to promote whatever they have. Because if we think about it from what must occur in order for a transaction to happen, well, people have to know that you exist or that your product exists. No one can buy something without knowing it exists. And so we have to start with promotion.

The second component is that they have some sort of voluntary exchange. And so that means you have goods and services that are exchanged for money. And so I think the idea of like money being created really only happens with the government, but for everybody else we exchange for it. And so there are people all around us. Like one of my really fun exercises is looking at whatever room you're in.

and knowing that everything that was there, there's a business behind it. So like the walls you have, there's the person who manufactured the raw materials, there's the person who sourced the materials, there's the labor that went to installing it, there's an architect who designed it, and then you look at this mic and you're like, okay, well, there's this foam thing, which he probably got from a third party, then there's the mechanisms inside, which is another business, there's the distributor that you bought this from. There's all these pieces when people are like, man, I don't know what opportunities there are. I'm like, you can literally open your eyes and everything that you see has a business behind it.

And so from the value component for people who are, I'll just tie this into people who are starting out. I recommend most people start with services because it requires no capital and you require time. And when you start out, you use what you have. And so if you have no money and you only have time, then you trade the time for money. And so either you're going to do something that other people don't want to do that they know how to do. So like taking someone's trash out, doing lawn care, washing things like cleaning. Those are all things that people know how to do, but don't want.

Then the second level of that is doing things that people don't want to do or know how to do. And obviously that's knowledge work, which you get your, the amount that you can get paid is predicated on the value that whatever that skill deficiency is to the other person. And so I think about it like that. The person has to know you exist. So you have to do one of those advertising activities I referenced. And then the thing that you give them is you're going to give them some amount of time back, either the time to learn the skill or the time to do the skill, right?

Um, and then once that exchange is made, uh, then both people say thank you because they didn't want to do the work and you wanted the money. And so everyone wins. And then around and around we go. Okay. So the around and around we go, you and I both know that even though you just laid out a lot of things that are very, very true, do you think about the gap as to why the vast majority of humanity will not be able to translate that into actual money? Um,

I think a lot of people spend a lot of time on everything that isn't revenue generating. And so everything that's not what we just outlined, like if you're not reaching out to people one-on-one, you're not posting content or you're not running ads or getting in touch with someone who already has an audience of the people you want to reach. If you're not doing that right now, then nothing else you do matters. It doesn't matter.

You have to have something to sell, which, like I said, you can start with your time. Very easy. And my recommendation is to go and get money from a stranger. Doesn't matter what you sell. Just get a dollar from a stranger to actually walk through the process. That's the procedural knowledge. Like it's one thing. Okay. Oh, shoot.

How do I take a credit card? Oh, that's a whole nother thing. Oh, I have to get a payment process. Oh, to get a payment process, I need a bank account. Oh, to get a bank account, I need an LLC. Right. So like you walked in like, oh, here we go. Now, now I can get my first dollar across. Once you get the first dollar across, the second one comes very fast. And so why don't people why don't people do the stuff that it takes to make money? Because they're doing everything else that doesn't make money.

I've got, so I am now teaching a business scaling course. Oh, cool. Yes. It actually is a lot of fun. Uh, where can people find it? Oh, sure. It's so funny because the answer of course is school, your company, but I promise we did not talk about that. Set that up. Uh, but yeah, on school and, uh,

The it's got me asking a lot like, OK, I really want these people to be successful for no other reason than to be a glowing testimonial. And so what's going to be the place that they fall down? There is a concept in sailing that I am beginning to think other than intellect, which unfortunately matters. I'm beginning to think is like the thing is called sailing.

velocity made good VMG. And the whole idea is that you can have a lot of wind, but if your sails aren't angled in the right direction, you could be moving fast, but not going in the direction that you want to go. You could be not moving at all because your sails just aren't able to capture it. Um, or you could actually be moving fast in the direction that you want to go. And

That to me, like pulling that apart as to what are the things that people don't understand? What are like if we were going to make angling the sales, not a metaphor, but like a reality? What is it like as somebody who's now scaled a business tremendously? What is it in all of those things that allows you to capture the potency of your intellect?

to understand that making, just making content doesn't do it. The content has to be aimed in a direction. It has to have a goal in mind. How would you teach entrepreneurs how to quote unquote angle the sales? So the process that I follow is common factors analysis for basically a retroactive look back window. Now that sounds like a whole bunch of fancy words, but basically I look back at stuff I did and see what worked better than other stuff.

And then I say, okay, well, the top 10%, what things that they have in common? And then the bottom 10% or the bottom half, what things did those lack compared to the top 10%?

And then I try and do a next batch of activities, whether it's phone calls, whether it's content, whether it's product iterations that then do more of the thing that worked. And so that process has been, I think, the fastest feedback loop that I've had. So rather than trying to find like a specific course around something super niche, which gets really difficult, the more niche it is, I rely on the universe for feedback, which is like,

We have to try 100 repetitions of whatever the thing is, look at the top 10 or 20 percent, look at the common factors, and then do a whole next batch of 100 with those common factors. If performance goes up, then the variables that we isolated were the correct ones. And then within that next batch, there will be another top 10 or 20 percent that by variation of repetition, which will always happen, there will be other mutations like in DNA that occurred in that batch.

subset that I can then replicate again. And that process is how I got good at sales. It's how I started making content. I just, I, but I think the first piece that people stop

that they prevent themselves from doing is doing the hundred repetitions because they think that they're it's the it's the fallacy of the perfect pick like they're going to get it all right so that they don't have to fail the first time but like my favorite one of my favorite scenes in the matrix is when neo tries to jump across both buildings and then he falls and cypher everyone's like what does it mean and he's like everybody falls the first time so even the one falls the first time obviously wasn't the one then whatever we can get into that but i i just like that as a

failure as an assumption, rather than something to avoid. Like Elon was able to get the rockets up because he failed five times faster than people were able to do one. So he got five failed rockets out before he got a sixth. And everybody was looking at the five failures, but he's like, well, look at how much further we got with each one. And I think that most, so one of the difficulties with skill is that masters are

have more milestones along the way. And so they're able to mark progress with more nuance. A beginner only sees kind of a binary outcome between it worked or it didn't work. But for me, if I'm going to go into a new advertising channel, for example, if I want to say I want to start doing cold outbound,

Well, I actually have a great story about this. When we started doing Cold Outbound for gym launch, my executive team, so, you know, not like experienced people about three or four months in basically did like an intervention with me. And they said, you're putting all of your time and attention to this. We think this is a shiny object using my words against me. Right. This is a woman in the red dress. And we think you should stop and let's double down on what works, which for us at the time was paid ads and some content.

And the thing is, is that they were too far away to know the progress we were making. And so they just saw that we basically hadn't made any sales. We made one sale in like three months. But I knew that the first problem we had is we didn't know where to get the data from. Where do we get these lists from? So then we finally got the list and we're like, OK, but no one's picking up. We have to enrich the data. OK, then we enrich the data. Then no one is still picking up. So then we're like, oh, well, we have to find out how to get people to pick up. So we have to do local call wrapping on our phone so that increases the pickup frequency. So then people start picking up, but then no one wanted to book a call because our script was off.

So we fixed the hook and then people would listen to us, but they didn't like the offers and we fixed the offer. Then people came to the second call, but then they weren't showing up to the second call. And then we were like, okay, we have to create a follow-up sequence. Now at this point, they're like, Hey, you need to get, you need to stop. But it was just, we have a hundred steps that we have to take and we're 33% of the way there. But if you're a beginner, you don't know you're 33% of the way there. And so I think it's one of the difficult things as a beginner is that there is, there is a leap of faith. Like when you do your first week at the gym, you're not going to get results.

But it doesn't mean that working out is wrong. It just means you're measuring on the wrong time horizon. And I think one of the things that has thrown a ton of beginners off is the understanding of volatility and volume. So basically, when you have a new business or a new endeavor, what appears inconsistent or volatile is typically a function of doing too little.

And so it's like if I it's like, yeah, you know, one sale comes in every, you know, a couple of weeks. It's I'm still, you know, but if we look at the activities that generate that sale, it's like you might have done 100 reach outs over 30 days and then one of them becomes a sale. So it appears volatile, but really it's just you got 1% and you're doing far too little.

And so if we did 100 a day, then all of a sudden we might make one sale a day. And all of a sudden it seemed very consistent. And so the volatility is only a function of insufficient volume. And so I think that that misconception is why many people who start out fail quickly or choose not to start because they are measuring their feedback loop on too short of a time horizon.

All right. So if 90% of businesses fail outright, 96% fail to break a million and only 4% go over that. What is it that those have in common? The ones that make it, do they share something in common? And if so, what?

Well, I think to cross a million, you need a consistent acquisition process. I think that's about it. Customer acquisition. Yeah. Sorry. Yeah. Customer acquisition process. Like in the beginning, you have to do something period zero to one, you have to do something and then you have to make your first dollar. And then, uh,

your advertising is inconsistent because you're inconsistent. Once you, once you become consistent, then your sales become inconsistent because you don't have a process. So then you have to dial in the sales process. So basically advertising and sales have to become a consistent process with predictive metrics. We know that if we do a hundred primary actions, whether that's a hundred posts, a hundred dollars in ad spend, um, a hundred reach outs that that will generate this many leads, which generates this many calls, which generates this many sales. And it could be on e-commerce or it could be, you know, in a, in a service or,

environment like I'm describing with calls. But fundamentally, you just have to get to that equation. And once you get there, then it's just inputs and outputs. And then you're just pouring as much in and then figuring out what the constraints are from you putting more in. At least that's how I think about it. Do you force yourself to predict the outcome of initiative before you do it? Not as much as I used to, to be really honest with you. This is actually a huge change for me in terms of how we grow our portfolio now. I'm actually really curious what you think on this.

But I heard Jensen Huang say it. And so I feel like a little bit better. But basically, they did away with all long term planning. And I always felt like long term planning, because when I got a year later, I was like half these things that we were talking about a year ago, the variables of the environment, talent,

many of the major movers have changed what the priorities are in the business. And so I focus almost exclusively now on what are we going to do in the next 12 weeks? Now, we obviously have long term objectives, but I don't want to plan out forecasts and and basically obsess and get everything down to the decimal when I can't even estimate the big forces that are going to be at play. Now, if I say I think if we build the brand this year, that is a good thing. And that's our number one priority.

then great, then I can reverse that. But I'm reversing it only into the present for the next 12 weeks because things will change. Very interesting. So I'm thinking a slightly different angle. So here's what I always tell entrepreneurs to do. So you described a very similar thing to the way that I try to go about scaling, which I call the physics of progress. So to me, progress has a nature. There's just a way that it works. So you try a thing and it either works or it doesn't. But to know if it worked, you had to say, this is where I'm trying to end up.

Yeah. This is what I think is my obstacle. This is the thing I think I need to do to overcome my obstacle. Now I'm going to do that. Yeah. But what I find is entrepreneurs will lie to themselves when they get the result. I'll be like, yeah, that's roughly what I expected. Now, the problem is that that will break their ability to do things as a thought exercise. And so now they have to actually test everything, not realizing they don't know how to predict the outcome.

So what I tell them to do is look, and this is what I do myself. I'm going to do this thing, whether it's build a piece of content and put it out, whatever.

And I think this is gonna get a million views, 1.5, whatever. So when it does 75,000 views, I'm like, whoa, there is something I did not understand. And so when it comes to content, I'll even predict at the idea level and I, okay, this is what I think it's gonna get. Then we'll execute and I'll say, actually now it's in execution, I don't think it's quite as good. And so now I think it's gonna be this and then you put it out. And that way, if you can really come to understand why something works or doesn't work,

now you've got a better shot. But because I know I'm prone to lie to myself that yeah, that's roughly what I was expecting. Cause people want to look cool. Yeah.

But you're saying in that scenario, you guys just sort of art by the pound. Get a lot more things out. Are you looking to build intuition or? - Yeah, I mean, I think I'm so aligned with what you said. You know, what are the causal factors? And I mean, the whole common factors analysis concept is basically trying to do that. Like, how can we identify it? Like, we're gonna do everything with these variables in addition to the last time. And if those variables don't meaningfully change, then they're not the correct variables.

But it's so funny you said that because I thought you were going to go in a different direction. So I've been putting together this $100 million scaling roadmap. It's probably the biggest project that I've done in a long time. It actually releases on Black Friday. It's free. It's free for everybody. I'm so shocked. Alex Hormozy with the free stuff. But the first thing I spent a long time on was like, is there a micro framework that fits into this larger framework? Which is like,

How does anything scale? And then I try to make an acronym out of it. And I think I think I have a decent one. So S is start. You got to start. You have to do something. C is compound. You have to do more. So first you start, then you do more. A is augments and then you do better. So it's like, OK, I've done a lot. That's the common factors part. So I'm going to try and do something better. L is leverage. So how can I get it to be consistent? How can I do how can I automate it?

Both sides of that. And then ease, expand, you do it again. So that's the loop. So that scaling loop exists on content at all levels, organizational structure, because that one, first we start, then we do more, then we do better, then we try and make it consistent and automate it, and then we expand to the next thing. That works for markets. It works all the way across. So that fundamental unit became how I thought through

scaling all eight departments, which is what I divide everything into. So it's customer service, product, sales, marketing, IT, HR, recruiting, and finance.

I don't put legal in there because I didn't think it was, most people outsource their legal anyways for a while. And so those are the eight functions that I had of the business going from zero to 500 people headcount. I did zero to 100 million because no one would know what zero to 500 people would be. But most businesses at 500 headcount are usually over 100 million. And it was easier to draw parallels on organizational structure rather than by revenue because like a software company like school can do $100 million with 25 people. Whereas a restaurant might do $1 million with 25 people.

And so doing it by revenue felt too, it wouldn't be valid or useful. And so instead...

I went by headcount, which had far more similarities. And so in thinking about that scaling, I broke it into first there was functions like what must occur in order for us to move to the next level. And then you have the people who do those functions. And then the third element is the operations that connects the people to the functions. And so that would be like training, meeting cadence, communication structures. That's all the operation side. And then the people is what is the hierarchical? How does the hierarchy look? Who do you need to hire? What point typically?

And so that's basically the three sides of the pyramid in terms of thinking about scale. The scaling roadmap that I have that I came out as just the functions part, 'cause it was already a monster. Basically it's like an hour plus long video going through each of the functions

of each of the departments at each level. And then I vetted it with a few of my friends who have multi-billion dollar companies. And they're like, dude, this is so accurate. It's freaky. And so I was like, I felt really good about that. And they helped me with a couple of them. Like I would raise it like this. And maybe this is, you know, move this instead of here. But that micro framework of, yeah,

We have to start, then we have to do more, we have to do better, then we have to automate it or create some sort of leverage around it. And then we expanded the next thing was the micro concept that I then applied across all departments to tease out the functions that happen at each level.

Makes a lot of sense now. So again, I'm always trying to figure out where are people going to fall down because you can give this stuff to people and they're still going to struggle. So you said something earlier that, that is profoundly insightful that I want to know how, if you have a method for that or if you just have a brain for it.

But you said we need to get local call wrapping as people are more likely to pick up a local number. So you're sitting in a room, you're not getting the results that you want. And you start thinking to yourself, what is stopping this from happening? Yeah. Does it just bubble up into your conscious mind? Or do you have a method? So I would think so if I were to have to solve this problem out loud in front of everyone, I would think, okay, what we're doing is not working.

What is it that increases the likelihood that I pick up my phone when a phone number calls? Okay. If I know the person and like them, that would be the highest likelihood person that I'd pick up. Okay. So Layla, that's the highest likelihood pickup.

The second highest likely would be somebody that I know. So their number is saved. Okay, got it. Now, what numbers that I don't know, would I be more likely to pick up the numbers, other numbers that I don't know? Well, a local number that would either be local from my hometown or local to my regional area. Those would be the two categories that I would probably pick. Now, the call wrapping feature that we were able to do could only do one of those because it didn't know where they were, but it did know what area code they had. So we could call from that. But

But if there was another software, for example, that could do both, then that would have been even cooler. But that's how I would reason through it. And then obviously the lowest probability would be like a four digit number that's calling from Zimbabwe or a private call or something like that I probably wouldn't pick up. And so I just walk through it from that perspective. Then I probably also ask other people.

What are the calls that you'd be most likely to pick up? What are the calls, you know, then walk through it and then I'll try and tease it out that way if I had to solve a problem. So that is one of my favorite things to do is to go to a conference, stand up on stage with a microphone and say, okay, ask me your hardest question. I have nowhere to go. There's nowhere for me to hide. What is that biggest problem that you have in your business? I've had people ask me stuff like, uh, I am a farmer in South America and I'm going up against the cartel. What do I do? I mean like really crazy stuff. Yeah.

But if you can do what you just did in a formal fashion, which I'll round to thinking from first principles, like if you just start, so I I'll tell entrepreneurs, you need to start at literal physics. Like, what do we know about physics? Start from there. So this was the thing at quest.

where we go to make the bar, everyone says the bar can't be made. And we're like, hold on, this does not violate the laws of physics. You then realize the thing that's actually stopping us is that for the last 70 years, corn has been subsidized by the government. So everybody uses high fructose corn syrup. So all the equipment that's being engineered is being engineered

thinking you're going to use high fructose corn syrup, which has a certain viscosity. And so now you go, oh, wait a second. So all we have to do is engineer our own equipment. Got it. Now, maybe we're not willing to do it, but at least now I know what that sequence going back to a combustion engine. If you understand how the engine works, you can walk through and be like, it's broken right there. Yeah. And now you can go, okay, how would I fix that? What is the level of physics that's going to carry across?

Now, what you did, which is the shortcut that most people take is, look, I'm trying to sell a thing to a guy. And so now I'm just leaping leaping to the physics of the human mind. So what do I know to be true about people? And the way that you just walked through that's so brilliant. How do you get people to do that? Like, do you have magic words? Do you have a training thing that you do for people that come on? So.

First off, I think it's a practice that I think it's a skill. I think you practice doing it over and over and over again and you get better at doing it. But I would say the thing that I try to practice by modeling that other people can model is thinking about things only in the observable universe. And so eliminating a lot of the fanfare of like motivation, energy, frequency, you know, manifestation, like all of these things.

I see all of those as noises that we make with our faces that may or may not increase the likelihood that we take certain actions. And those actions have either high or low correlate or are high or low correlates for the outcome that we want. And so in trying to break apart a system or a department that's not working, I think about a lot in terms of approximations. What increases or decreases the likelihood that what we want to have happen happens?

And that creates a really easy razor black and white. Does this increase the likelihood? Okay, so if our team is incentivized on performance, we have a higher likelihood that they do the stuff that performs. If they're incentivized on hierarchy, then increases the likelihood that they will perform in terms of hierarchy in politics.

So it's like, okay, well then I can bet then I should do that. Then we have to get into the execution of it. But just from a, from an ideological perspective, getting those, what would make it more likely to occur has been a really, has been like my first razor for this. And then in terms of the creative problem solving, which I love that you just went through with the bar thing, um, is there was like an implied question that you asked, which is probably my, the two most frequently asked questions are the one I just said, which is what does this increase or decrease likelihood? And the second is what would it take?

And I love that question because it, it, it presumes or it assumes success or it assumes reality that we can make a bar that would do that. Okay. Then what would it take for that to happen? Well, I guess we'd have to like have our own facilities. Okay. Well, we'd have to have our own machine. Like we'd have to have a different supplier that was okay. Great. Now that we know what that is, do we have the resources today or do we need to use resourcefulness? It's one of the two. It's either we have the resources or we have to go get them. And, and,

Is the trade-off for the outcome worth assembling those resources? And what I found, and this is really fun stuff. This is like probably the most fun thing that I do in my life, which is asking the question of like, okay, what would it take? What else would have to be true for impact theory to get 10 times the views in 12 months? It's not physically impossible. There's no reason for it to be like somebody else's. There's another YouTuber right now who's going to do it this year. So,

What would it take for us to get that? Now, that might mean we'd have to get the smartest people. Okay. Well, what does it take to get the smartest people? Well, probably more money or maybe some chunk of the upside. And maybe I have like, and I might not get that guy, but there's probably 10 of those guys or 20 of those guys. And if I go to all of them, is it reasonable to believe that all 20 will turn me down? Probably not. Okay. What offer would I need to give them to make it worth it for them? And then is what I give them worth less than what I get?

on the larger umbrella? And if the answer is no, then we make the trade. But I think a lot of people think in terms of I'm here, how do I do more of what I'm doing, rather than what would have to be true for this to be 10 times bigger? And are the resources required to have that happen

within my control and oftentimes they are but it's a move that's off the board it's not in the in the immediate do more and i'm all about do more do better like to be clear but every once in a while the order of magnets you change it to the business happen when you do something different and it's usually and to me that is strategy is that you've limited resources against unlimited potential moves there's a million things you can do but you only have this much time this much money this many people and so the best strategists in my opinion

have the most visibility into the most potential moves and allocate the asset or the resources to the thing that gets the highest return. And I think the thought process of thinking what would it take for this reality to be true and then working backwards has been one of the most fruitful and productive thought processes that I go through from a strategic perspective.

Dude, violent agreement. So Lisa and I call it no bullshit. What would it take? Okay. So of everything you're trying to do in your business, no bullshit. What would it take? Again, you might not be willing to do it, but you shift out of problem mindset into solution oriented mindset. This is one of the things that I find the hardest to instill in people, especially if just by nature, they're,

a problem finder where they can tell you all the reasons why something isn't gonna work. But Peter Thiel has a really cool way to frame this, which is to ask, how do I make my 10 year plan happen in six months? Because he said, everybody gets locked into this incrementalism. Like how do I make this 10% better, 30% better? And he's like, you have to throw everything that you know away when you have to make something 10X or a hundred times better. Now, all of a sudden you're gonna be reaching for a,

what I call a frame of reference that is so radically different than the way that you look at the world now. And I'm always trying to get entrepreneurs to understand you are trapped inside of a frame of reference right now. And you don't even realize it. It's shit that your parents said to you when you were a kid, it's the girl that you asked out and it didn't go well. It's the first sales calls that you did and they failed. It's that business that went under. It's a thing of VC said to you one time in a meeting that just kicked you in the nuts. And once you understand, Oh, okay, wait a second. I,

I have to get out. This is the box that people are telling me to think outside of. And I have to find a way out of this. And that Peter Thiel angle of, I have to make something that I thought would take me 10 years. I have to make it happen in six months. And I refuse to let myself believe that it's impossible. So now it's like, like you said, what would have to be true? Yeah. I love that. And for the beginner who's at zero. So we went sky and now we're going to go back down to dirt. The way that you'd frame that is,

What would I have to do that would make it unreasonable that I didn't get a sale? Like how much action would you be like there's no way there's no possible way that if I ask a thousand people to buy something One doesn't buy it. It's just there's no way and so then you take that he's like, okay Well, just in case I multiply by ten if I ask ten thousand people

And the thing is, is that 10,000 is not that hard to do. Like you hear that you're like 10,000, but like right now, if you think about that, you're like, well, I mean, yeah, obviously if I asked 10,000 people, okay, a hundred people a day, a hundred days, it's a quarter. And if right now you've been stuck in years of not making that first dollar of years of wanting to start a business, then a quarter is nothing. And so again, we have this, well, it'd be unreasonable that if you make, uh, you know,

10,000 asks of different people. And the thing is, is that you'll also have a feedback loop, which is that you'll look at the first hundred. Well, which one's got closer to saying yes? Because you didn't get a yes yet. Maybe, maybe you do get a yes on the first one. It happens a lot. People are like, they commit mentally to doing 10,000. And then by day four, they're like, oh my God, I got a sale. But the idea, and maybe this is, maybe I should teach this differently because maybe I should just say do a hundred today, but I want people to stick with it. But when, when, when people do that,

the feedback loop of which ones went well, which ones didn't go well. What did I do in the beginning? This one's I made a joke at the beginning. Okay, I'm going to make a joke on all of them next time. Great. Now I made a joke. Okay, I got further in the sale with these guys. This guy even asked me about price. Okay, what happened in that one? Okay, this one I asked him about what he was struggling with earlier on.

Okay, I'm gonna start asking that question too. So I'm gonna make my joke and I'm asking what he's struggling with. And I'm gonna do that a hundred times. And so that's the process of iteration that can get you to that first W. And then you just do it as many times as you can. Yeah, iteration, iteration. It's funny, people are so terrified of failure.

Right.

And also, let me know what you think about this. I think you have whatever, 8.4 billion chances to make a first impression. Probably more than that. Cause most people are going to forget that they ever encountered you in the first place. And so getting out ultimately, I think what people care about is can you, they have a screaming problem that you make go away and they'll forgive everything that they've encountered up to that point. If you can and anybody, somebody that they respect told them, no, for real, like this works. Yeah.

I think you bother, you have a hundred percent chance of bothering somebody on earth by existing. And so if every action you take has somebody who will hate it, then it kind of cancels everything out and you might as well just do whatever you're going to do anyways. Very fair. Speaking of somebody that clearly winds people up, you mentioned Elon earlier. Yeah. What is it that makes him special? I, I'm, I...

So many things, you know, I mean, how many guys have six billion dollar companies and run all of them and have time to go all in on political campaigns in the meantime, notwithstanding what side or any of that, but just just the like the big question that I feel like is the unspoken one right now, at least in the zeitgeist of the entrepreneur world is how does he do it?

And I love the impossible nature of the feats that he takes on, literally pushing the realm of physics, obviously, with SpaceX. But he reinvented the car industry. He's creating brain chips. He's aggressively attacking AI. I'm sure you saw the Jensen Huang interview where he's like,

he did in 19 days what everyone else takes three years to do. And so we're talking multiple orders of magnitude in terms of improvement compared to the basics. Cause he starts at physics and works his way up, but he truly does it. Cause he's also like a physicist. He really knows it. Like I get to pretend to sound that, you know, intellect to we, you know, whatever he really does. And so, um,

I, that, that's his, his material achievements. But I think the thing that I admire the most is the balls. The man is not a coward. And I think that in thinking about him,

I think about what are the things that he does? What are the things that I do? He is more successful than me. How can I do more of those actions that he does in order to approximate his success? And so I think modeling is one of the most effective ways for people to learn. It's how children learn, how monkeys learn. It's cross species. And I think that he functions as a model for many people. Now, again, he only became political in the last three years. So if you all of a sudden now hate him, like maybe question that if you didn't hate him three years ago, um,

But you cannot question that he is the best. Like right now, people say he's the best entrepreneur of our generation. I think he's the best entrepreneur of all time. It seems like it to me. It's not even to me. It's not even close. Like he is. Yeah. I mean, I could I could get on an Elon parade, but yeah.

He has forced me to think significantly bigger about the problems that I want to take on and who I want to become and what to do with the small platform that I have that best serves humanity.

And so that's what, and I think at least from my point of view, that he really genuinely wants to do the best thing for humanity. Some people disagree with that. I don't, I don't agree with them. I think if there was ever somebody who would have, you know, with great power comes great responsibility, he's probably the guy you'd want. Hmm.

Agreed. Why balls? Why is that the thing that catches your eye? He had the most to lose, like literally financially, he had the most to lose. So I'm quite like he had the most to lose and went the most polar on the bets that he took. And I think that, again, there's a really great like masterclass in winning here that he did with this whole election thing.

Because if you think about how Elon tried to solve the election, he absolutely treated it like any business problem. And so he looked at the whole map and then it was whoever wins Pennsylvania wins the election. And then zooming into Pennsylvania, it's there are 28 counties or whatever the amount of counties that we have to win. And so then he flies to Pennsylvania himself and then since three weeks campaigning gives a million dollars away a day just to get people to register to vote.

holds town halls every day. So it's like he finds the greatest point of leverage and then just bombs the hell out of it with unbelievable amounts of action at that one crucial spot. And I see that as that's how he violently solves problems. It's like, how do you build a supercomputer for AI in 19 days? Like he looked at the whole supply chain and he found the point of greatest leverage and then was like, we're going to dump as much into this as we possibly can.

There are two options before people in life. So option one is lay your balls out on the table like Elon did. And you give people a chance to smash them with a big fucking hammer. Or you can hide and you can go a long way hiding. Why do you admire people that slap them up on the table? I think courage is the quintessential trait that leads to everything else. Like you have to first have courage.

You have to have courage to quit your job. You have to have courage to get rejected. You have to have the courage to ask the girl out, to shoot the shot, to run the ad. And, um,

if you don't first have courage, nothing else follows. And so I see it as again, it's not are you courageous or not? It's how courageous are you? It's not a binary. And so I just like I think that based on my history, I have courage because I have done things that have required it. But I think Elon has more courage than I do. And so I see that as how can I how can I move more in that direction if this is a trait that leads me into the better version of myself?

How do you model yourself after somebody from afar? So we live in the age of the internet where, you know, people want to get to know somebody. I'm old enough to look at the internet and be like, you do not understand what a glorious time this is to be alive. I mean, it's unimaginably cool.

Uh, so people will look at you and say, well, you can get access to anybody, but somebody like Elon, who you say is worthy of modeling, how would you run something that all of them now can do? Yeah. So this actually comes down to, and I wasn't sure if you were going to press me on this, but like courage, for example, um, I try to the single thing.

most effective decision that I've made about how to run my life across all functions has been only thinking about behavior and erasing everything else because it's the only thing you can observe. And I'll tell you a little micro story about this. So there was a guy on my team who, uh, he were getting complaints that he was acting like a dick. And so he had talked to three of the leaders in my company who had had one-on-ones with him and said, Hey man, stop being a dick. He continued to be a dick.

And so they said, Alex, you talk to him. And I said, sure. And so when I sat down with him, I said, hey, to be clear, I don't really care what you do. I care about the fact that you have now taken my time. And so this is now the most costly thing that you could have done for me personally. And getting complaints from other people detracts on their ability to get things done within the company, which now also costs me. And so my goal here is to decrease the likelihood that people complain about you.

And so they keep saying that you're acting like a dick. And so he's like, yeah, I know I'm working on it. I was like, no, it's fine. I don't care about whether I was like internally, you can be a dick for as much as you want. I don't care. I don't care about intention. What are the actions that you take that increase the likelihood they call you a dick? And so number one is that you interrupt them on meetings. Number two is that you say that, you know, their department better than them. And number whatever I had, I have my list of things.

And I was like, so don't do those four things and do this instead. So when this circumstance occurs, do this action instead of this action. And in the next week, everyone's like, oh my God, it was like night and day. And the thing is, is that we give each other feedback all the time. And this happens in marriages and whatever. It's like, hey, don't be a dick. That doesn't help people.

You have to tell them granularly what to do instead and focusing on the observable. And so this is my weaved in answer to how does someone model Elon? Well, it's not like I need to get Elon's mindset. It's like, no, look at what he does just with your eyes. What does he do? Because it's the only thing that you can you can measure. It was funny because when you said earlier about what I want to happen, what am I going to do that I think is going to have to happen? And so your planning process is identical to ours because it's the scientific method.

Like mankind has figured this one out. Like we know how to make a guess of like, this is what we want to have happen. This is our hypothesis. We're going to test the hypothesis. We say, did we do the thing or not? And then, and did what we think was going to happen, happen.

Four steps, scientific method. And so don't try and reinvent that one. Like that one works. The same can be true, but it has to be observable for the scientific method to occur. It has to be something that you can see. Saying like, I need to be more motivated. Well, if you want to be anything, and this one trips, I think, a lot of people out. But have you ever heard like be, do, have? Yes. Okay. I think it's complete crock of shit. Mainly because...

If we want to have something, we must do it. I think if people are okay, you have to do stuff to get stuff. Okay, we're good with that. But if we just have to do stuff and the having occurs, then we don't need to talk about have. So now we just have be do. All right. Then how do we describe how someone is? We describe them by what they do.

I mean, even in the olden days, people used to be Carpenter, John Carpenter, John Butler, John Taylor, right? We literally described people's beingness, who they were by what they did. And so if you want to be a certain way, then you need to act in accordance with the behaviors that people describe as that trait.

And so then I this is how I make sense of the world, because the world doesn't make a lot of sense to me in a lot of ways. And so this is the only way that I've been able to navigate. And this has given me so much peace because I actually think everyone's wrong. And it drove me nuts for a long time because I didn't know how to do what I wanted to do. I was like, I want I want to be I want people to think I'm smart. I want people to to think I'm hardworking. That doesn't mean anything. Be charismatic. It means nothing.

You can't look at someone and say, don't be a dick, be charismatic. No. How do I do that? So they give you beings rather than doings. And so if you break it into the corresponding chunks, which may be 20 or 30 skill sets, which are under this condition, you act in this way. Then all of a sudden, when you do all 20 or 30 of those things, then people describe you as charismatic. And I find this interesting because we talk about culture or values in a business and

These values that we choose are bundled terms that are meant to approximate many behaviors because there's no like when you get into a business or a company, you have to like figure out the culture. But the culture is just the rules that govern reinforcement in a business, which is what are the things that are rewarded? What are the things that are extinguished and what are the things that are punished? That's it. And so the culture is just what are those rules?

And so people have to basically either watch other people get punished, rewarded or extinguished for the actions they take, or they have it themselves. But either way, it's just a series of if this, then that, if this, then that, and it's a monster list. And so to speed up the process, we create a couple of phrases that are meant to approximate the largest percentage of those list of rules as we can. And so in thinking about my, if you were to microcosm into a person,

What are the traits we want? Then we just have to get really granular. And I think that this is how we solve problems in a business, which is it's convenient for communication to use these amorphous terms, confidence, you know, loyalty, like these things. But no one can be more loyal. We have many activities that under conditions people describe in retrospect that this person has loyalty. Loyalty has occurred.

And so, um, that single framework of thinking through the world has been the most valuable thing that has finally made the world make sense to me. And so that's in fundamentally how I model people, or if I want to be more like this person, be more like this person, I try and do more of what they do. What are the behaviors that Elon does that you think are worthy for somebody of your level of already absurd success? Sorry, I appreciate it. Um,

I will one is he makes big concentrated bets. And so that's a behavior. He does that. I can observe that. I've seen him make big bets. He's willing to give up equity in companies for lots of capital in order to make things happen faster. That's something that he does. He ties every company he has to saving humanity. That's something that he does.

Um, he, this is me just parroting what he has said, but his approach to solving systems is one that I have adopted, which is question all requirements of the system, delete everything that doesn't, that doesn't matter, optimize the rest, pull up, uh, uh, feedback loops and timelines, and then automate. And that process I've applied to sales. I've applied to marketing content, whatever. And those are things that he does.

And so there's, I mean, a lot of things that Elon does, but those are just some of the ones off the top of my head that I think are the greatest impact, at least the ones that I'm specifically trying to model. There's one that really had a big impact on me, which is the idea. So I had Mark Andreessen on the show. Shout out to my boy, Mark Andreessen. Yeah. Love that guy. Love that guy. I'm such a fan. Mark, if you hear this. He is amazing. And yeah.

I asked him, what is it that you think makes Elon so efficient? And he said, making a long story short, he goes down to the level of engineering and he understands the engineering. And so he figures out what the bottleneck is and talks directly to the engineer that can make that problem go away and just makes that problem go away and eliminates the bureaucracy and all the BS of it all. And I,

I was like, that is utterly brilliant. And even though except on the gaming side of impact theory, we're not an engineering company. There still is that same concept. Like if you've got a problem, let's say with a piece of content, Hey, our retention at 60 seconds is not where we want it to be.

Okay, well, who are the engineers that can solve that problem? Whether it's the editor or me myself, you go and you solve the problem at that level. I think so many people get sucked into the vortex of, well, this is their boss and I need to go talk to them. And oh God. I want to get around the chain of command. Yeah. Oh yeah. We try to encourage people to kick people

through any chain of command. Go over, go under, go around, build coalitions. I tell people literally, if you don't like an answer I give you, by all means, build a coalition and come back and try to convince me. I know that I am blind to some answers. What was that? I said, but you'll be wrong. Yeah, exactly. Save you some time, guys. Yeah, no, I'm so paranoid that there's something I don't see. And my primary analogy of what life is, truth exists inside of a black bag.

and we're all wearing mittens. We get to reach inside the black bag and be like, "Ah, I think it's like this." And then if I can get other smart friends to reach in and grope around and tell me what they think. So yeah, I'm on a campaign to get people to distrust themselves. People that drive me the most fucking crazy are people that are utterly convinced they're right.

And yeah, that really drives me nuts because one, if you're right and you're already right, it's a pretty short detour to be like, hey, anybody see a problem that I don't see? And the number of times that someone would give you like an oblique angle to look at something like, oh my God, that is incredibly useful.

I first off so wholeheartedly agree with the jumping into the dirt of like, how do I get as close to the problem as humanly possible? The biggest mistakes I've made in my entrepreneurial career is, um, and I heard this from a mentor. I like this ism, but you have to know where the bodies are buried.

So it's like if I, and it's, it's been a great limits test for me to understand when I'm getting too far away from a department. When, if I don't know what's going wrong in a department, cause there's always things going wrong. If you don't know what's going wrong or too far away. Interesting. And so that's been a really good, like just an easy black or white test for me. Oh, I need to get a little closer to this. Cause they say, oh, marketing's great. I'm like,

There's no way. There's always things. There's got to be things that are wrong or missed opportunities. That's actually a totally separate entrepreneur thing that I think you might dig a lot. Layla taught me this this year, and it's been a huge entrepreneurial unlock for me. And it was a huge source of anxiety for me for my life, which was...

I did not differentiate the difference between missed opportunities and problems. And so basically, if we were not capitalizing on an opportunity, I treated it as though it was a problem with the same level of urgency and moving things out of the way. But I would say that where I'm at right now, and maybe I'll, you know, maybe I'll be different in the future. But right now, the thing that has been rewarding me again and again, which has been counter to my nature is, you

looking at the problems in front of me as the opportunities, which is like fundamentally, like if we made these things exceptional, then maybe the opportunity set that I'd have as a result of that would be fundamentally bigger, different than the one that I'm having today. And whenever I, in the past allocated resources away from solving problems towards missed opportunities, I ended up just scaling my problems. And so allowing the bigger by better,

and really leaning into that and doing fewer things at a higher level has been, I think, the reason that in the last two years, Acquisition.com has done exceptionally well from a returns perspective on all of our portfolio and then obviously what we do on the content side and things like that.

That's interesting. It makes a lot of sense to me. The two years ago, I had to put a policy, no new things because I am a, I'm King red dress. So that has been really advantageous. And if I'm completely honest, we still do too many things. And so, yeah, narrowing your focus, knowing that you have a finite amount of time and energy, especially now where we're,

so many companies have a face. It's like every department or every company, depending on how you think about it, wants to use me, my face. And so it just becomes a real time drain if I'm not careful. And so, yeah, really narrowing scope, I think is super important. Yeah. Where it gets really wild is like, I think about, I heard this, someone say this offhand remark and it's like, it like, it hit me. He was like, Zuckerberg didn't have a side hustle.

And it's like, it's so true. And you think about your face, right? There's one of the three divisions that you have underneath the impact theory that has a higher return on your face than the other two. Now, it might be on different timelines or towards whatever mission you have, but one of them has a higher return. And the thing that makes me sick is thinking like, do I need to kill my other children? Because if I believe what I say I believe, then I should act in accordance with that belief. I think about this every day. Right.

No, and that kills me. And I think it's, I had a mentor tell me, he was like, so I was like, this is what we're going to do this year. And I was like, these are the, you know, the priorities. And this is the biggest, the missed opportunities versus problems has been a massive improvement for me as an entrepreneur. The other one was a deeper understanding of focus. And a lot, part of that was from Elon. And people were like, well, how do you run six companies? I'm like, he's an alien, but for everyone else, like we need to run one, honestly. But basically, yeah,

If you don't know what the number one priority is, then how can you expect everyone on your team to know it? And for years, I came in with five annual objectives. And I think then it went down to three. And now I'm just trying to say if we just did one of these things and it made the biggest difference. Yeah, I mean, I've done away with a lot of the long-term planning components because of the dynamic nature of the environment.

And the other one is, if we're not sure that this one thing is the one thing, then there's another one thing that exists that will be clear. And if I can't do it, then I'm not doing my job. Because if I'm chief strategist, which I define as prioritization, right? You prioritize limited against unlimited, limited resources and limited options. If I can't clearly articulate that,

then I am not doing my job. I'm not allocating the resources in the best way possible. And I say that everyone in the company is a strategist. It's just that the resources that you have dominion over is smaller or narrower in scope.

And so it's like I have the entire portfolio of all the companies of the different places that I could allocate whatever resources I have. And then if you're the CEO of one of those companies, then you have everything in that company. If you're the head of marketing, then you have the 10 people that are in marketing. But every person has to ask the question, these are the resources I have. This is the objective I have. What is the best mix of this to get that thing? And is there one thing that I can do that would give me an outsized return compared to all of the other things? And

I mean, I think one of the better decisions that I made in 2020, I think, was when we started getting into this investing thing. I was like, I don't think I'm going to beat Warren Buffett at picking. And I don't know if I'd beat him at negotiating. I was like, so how do you win in a world where everyone's better than you at most of that stuff? And I was like, well, I'm pretty good at marketing. And I was like, but how do you tie that to like private equity?

And so then it was like, well, if I had more companies walking towards me than anyone else, then I could be pretty terrible at picking and still do like I could I could hit the broad side of a barn. You know, like I could I could I could get the really easy ones right.

And if I'm negotiating, but I'm negotiating only with people who want to do a deal with me, then I don't have to be the best negotiator. And if the companies are good and I'm okay at negotiating, but they're good companies, then it's not going to matter whether I got 29% or 54%. Because if the thing becomes 100 times bigger, who cares? And so that one big thing was you need to build a big business brand.

And so if I just do that one thing, none of these other things matter. And so originally you think, okay, I have to get a broker network. You know what I mean? I might have to raise capital. Like these, the normal activities that most people would do. But that was one of those kind of like high order of magnitude changes. Like what would have to be true for me to be able to outcompete people who are significantly smarter and better capitalized? Yeah. Yeah.

The ability to see the problem from a different angle, man, is so clutch. That is definitely, you're so good at systems. You're so good at taking a view askew. This is why I really encourage people, anybody, if you can hear the sound of my voice right now, I'm telling you, and I'll take the conversation somewhere political for a second. Feel free to dodge as much as you need to. But yeah,

My thing is the center is the destination. And what I mean by that is I want the friction between the left and the right to help me find an actually intelligent path forward. I want people to help me see the problem from different angles. I don't want to get a hard on from hearing somebody say what I already believe, which is like the big temptation. And I get it, dude. It juices me up as much as it does anybody.

But I'm just like that. That is not going to help me see the problem from a more clear perspective. So I think of myself as I'm a terrible debater. Let me be very clear. I'm a deep thinker, but a slow thinker. So debate is never going to be my thing. But I want to know as if I were going to have to debate this. I want to know the best arguments from both sides, because if I really understand the smartest people who think that my angle is just idiotic.

If I can say, okay, I'm going to steal men's argument. I know their argument as well as they do. And then here's why I believe, which my whole thing is predictive engine to getting you where you want to go. Right. So I know my goal. And then what has the most predictive validity? Cool. So I want the collision of those ideas, but there is something in the human brain, just the very architecture where people are so hungry to be told what they already think that that one makes me sad for them because it's,

If you can do what you just did, which is go, okay, I have a problem, but I need to see this from a totally different angle. And then I need to formalize what I see. If you can do that, and then you're willing to iterate, iterate, iterate and go, actually, I need to update this, this breakdown that I have. And while I haven't seen you do it, I absolutely will bet my life.

Entire net worth that if you found a better system, you would update your thinking you tell the world. Yeah, I'm doing something differently now, which I think is Incredibly powerful. Oh, thanks. Well, I think um, I think Zuckerberg said that he's a well He said he's a truth teller, but I think before you can be a truth teller You have to be a truth seeker and basis also talks about this which is that their goal is truth so when we're making decisions he said

The goal shouldn't be to compromise. Like if you say it's 10 feet tall for the ceiling and I say it's 11 feet tall, we shouldn't meet in the middle. We should find a way to know who's right. We should get a tape measure out and we should measure it. And so from that truth-seeking perspective, I probably like you, I just want to win.

and winning doesn't care whether it was your idea or not, or whether it was your original idea. It just cares whether you did it. Um, and like we recently, cause we talked about this before the, the, the, the show started, but like, um, a quarter or two ago we had a hypothesis, which was, Hey, we're going to make wider content because if, you know, Mr. Beast, cause my theory was, okay, taking the natural extreme, Mr. Beast, everybody knows who Mr. Beast is, or many people do. Uh, and so he has by default, uh,

all business owners in his audience or many business owners. And so then I will go the how do I go wider and general fame? And we then ran that pretty hard for about 16 weeks. And when I saw the data that came back, which was all of the vanity metrics, the views, the subscribers, things like that were all way up.

But the metrics that I cared about, which was how many people were going to acquisition.com, how many people were applying to be portfolio companies, how many people were buying books, all of those metrics were down. And I thought that was so, it was counter to my hypothesis. Yeah.

But at that point, I had to look at the team and be like, yeah, so that experiment was wrong. And that's on me. But we're going to go what we call back to business. And so everything is going to be business related, which means that we all need to accept now that all of our views are going to be lower. Our subscribers are going to be lower.

but we're going to attract business owners. And I had one anecdotal experience that really like cemented this. I had a guy who came out who's a business owner does probably 10 million bucks a year. And he was like, yeah, I listened to your podcast for years. And I, you know, I just, I guess I'm not really in your audience. I'm not your core audience anymore. And so I stopped listening to it probably the last six months. And I was like,

You are 100% my core audience. And that was like this kick to my stomach. But I mean, like you probably being right has zero value. Like why? I just want, I want to win. And so that's, I mean, my, my, uh, my little ism for my team is just win. And that's, that's, that's all I care about. Like just win. And if, if it's your idea, it's my idea. It's the janitor's idea, uh,

test it, see if it works. And so that's been, that's been a really, really big for me. How do you get people to buy into that? I find the, I run into, um, frames of reference, natural ego, evolutionarily placed algorithms, like by default, most people just really want to be right. Yeah. Um, I don't tolerate that much. I, um, I, we let the data talk. We let the data decide data's king.

And so, I mean, sure, we can try your way, do your way. We'll do it my way and we'll see which one works. And if yours works, I'm all in. Yeah.

And so I think that's like, there's no arbiter of truth that's arbitrary. Well, right. That just, just, just says you are now, right. It's we can, we can know this. Now I think where it gets difficult is on the ones that you don't know, or let's say you have limited shots on goal, which shot do we take? That's where it gets harder. And then we try and do, we try and assemble as much, you know, as much data to support an argument. But I think fundamentally at the base level of entrepreneurship is you make approximated bets. Like you, you,

By the time you have complete information to make a decision, the opportunity is gone. Yeah, for sure. And so we have to, and this also goes for beginners, because I think it's actually especially for beginners, is there's this fallacy that you're going to know everything before you can begin and you simply cannot. And so you have to get over the discomfort of the unknown and you have to get comfortable making bets of saying, okay, is this reversible?

Yes. And to what degree is it reversible? Okay, if you lose all your money, is money replenishable? Yes. Okay. Now, how long will that take given my skill set? And that'll give you a degree of how big of a bet this is. Now, is there a way that I can make an approximated bet? Can I get a directional bet on this that would give me a much better clue as to whether this bigger bet that I'm going to make afterwards is correct?

And so I'll try and make smaller bets that give me a little bit more information that are a little bit more reversible before making a big one. But like that was a big bet that we made with all the resources that I had and all my time for 16 weeks making all that. Now you could make the argument, okay, we gained audience that's not really core. And then that might hurt my later videos. And I've got, you know, 50 more years. So, okay. We lost a quarter. Yeah. Big deal. Yeah.

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