Is Alex Hormozi A Legit Businessman Or A Fake Guru?
Gyms, Supplements, Millions, and Questionable Ethics - January 31, 2022 (about 3 years ago) • 11:01
Transcript:
| Start Time | Speaker | Text |
|---|---|---|
Sam Parr | Alright I have to tell you about something interesting ben cue the music | |
Shaan Puri | a $1,000,000 isn't cool you know what's cool | |
Sam Parr | A $1,000,000,000. Alright, Billy of the week. This person is not a Billy, but they're incredibly fascinating to me.
I've been getting targeted on YouTube like crazy, not from ads, but for "things you also should watch" because of the video "My First Million." There's this guy named Alex Hermozzi. Have you seen this person?
| |
Shaan Puri | Yes, dude, this guy's all over my TikTok feed. I see this buff motherfucker in every TikTok. Every other swipe is this guy. So, who is this guy? What's his story?
| |
Sam Parr | I will tell you, he looks like an eighties cop had a baby with Arnold Schwarzenegger.
| |
Shaan Puri | like he's like mustache | |
Sam Parr | Great mustache and just huge, jacked... like he looks like a good-looking dude with a very fascinating look. Right when you see him, he stands out. Ben's pulling up a picture of him.
Yeah, I mean, he's yoked. I've been getting these YouTube videos from him everywhere, like "Learn from me, a guy who has a business that's doing nearly $100,000,000 a year in revenue." I'm like, "What? This guy looks like he's 30 years old," and I think he's 31.
So let me tell you about this guy, and let me preface this by saying I think this guy's legit, but it's almost too good to be true. So I'm like, "I wonder what the truth is," right?
Alright, so his name's Alex. Basically, he started out when he was like 22 or 23. He opened up a gym and scaled that gym to three gyms. It still wasn't that good of a business. He met some folks at ClickFunnels. ClickFunnels is a little bit multi-level marketing... incredibly, it's an incredibly direct.
| |
Shaan Puri | just internet marketing I I wouldn't say multilevel | |
Sam Parr | it probably attract but it's it's it's it's it's the cousin of it | |
Shaan Puri | you | |
Sam Parr | know they all go to the same family | |
Shaan Puri | reunion thanksgiving together | |
Sam Parr | yeah they're all | |
Shaan Puri | they're all | |
Sam Parr | They all go to the same Mormon church up in Utah. I would guarantee you that they all know how to run a call center.
So anyway, he learns about that guy, learns about copywriting, and then he meets one of the guys at the company. He says, "Wait a minute, you're opening gyms? That's a horrible idea. Don't open gyms." He was like, "Your gym's good." He goes, "Yeah, they're really successful, but like the best gym isn't that successful."
And they said to him, "Dude, teach people how to open up a gym." So he creates this thing called **Gym Launch**. Gym Launch is basically like a course that costs around $20,000. I saw somewhere that it was $16,000, then I heard somewhere else that it was $20,000. So let's just say it's between $16,000 to $20,000.
It's like a course, but they hold your hand and you meet with them like a mastermind. It's a course that teaches gym owners how to improve their gym and, well, all according to...
| |
Shaan Puri | the website it's financial freedom | |
Sam Parr | Okay, sorry. It's about financial freedom. He's running these great ads and has really good copywriting. He's getting his people to improve their gym, whatever.
| |
Shaan Puri | Hold on, Ben. Can you go up to that founder section on the website? What does that say? "We slept on the floor." What does that say? I want to read this.
| |
Sam Parr | that's what he says to this story he was like I was living in the gym because I didn't have any money | |
Shaan Puri | Gotcha, okay. So, yeah, I was a former gym owner who slept on the floor of his gym. When it was full, I couldn't acquire, serve, or retain enough customers. Over the next three years, I became a sponge. I experimented, blah blah blah, and became great. Now, he has Gym Launch. Okay, go ahead.
| |
Sam Parr | Okay, and then from Gym Launch, he launched another company called Prestige Labs.
So once he gets the gym owners coming to him, he says, "Hey, like, buy these supplements too! You should sell supplements at your gym. Why not? We did all the work, and we know which ones sell best. We're making them, so you can just go ahead and buy it from us."
Then he starts this third company that says, "Alright, what?" Yeah, smart.
| |
Shaan Puri | too smart moves yeah | |
Sam Parr | Then he starts a third company. He says, "Okay, you've got a gym. One of the things that I told you was that you need more leads. I'm going to create a lead company," which I don't entirely understand what that means. But it's kind of like a marketing company, and somehow they send... they maybe set up your Yelp and set up your Google AdSense.
| |
Shaan Puri | Things like that... They just, what they do is you search, you know, "gym near me San Jose," and then they know that the gym owner is not buying that top click on Google.
They're going to buy that. They're going to create a search engine that lets you say, "Put in your zip code, we'll find a gym near you. What's your email?"
Then they'll pass the gym owner your email or your phone number and say, "You know, pay us per person who's interested in a gym near you."
| |
Sam Parr | And so collectively, these businesses—these three things that I said—are doing in the world, according to his videos and my research, **$70 to $80 million** a year.
In fact, he just sold one of the businesses, the gym launch and supplement business combined. He sold **66%** of it for **$46 million**.
In one of his talks, he says, "Over the last 5 years, both through the sale of the company as well as dividends, I've paid myself **$72 million**."
I thought, "That is nuts! That is crazy! That is crazy volume!"
| |
Shaan Puri | yeah | |
Sam Parr | and this like kinda blew my mind | |
Shaan Puri | But there's another business. His wife has a business, right? Or he and his wife, they have another business, like acquisition.
| |
Sam Parr | Man, this is one of those guys that's just *prolific*. He's got a book on Amazon, he's done all this. He's like Steve Bartlett. Who are you talking about? He just has his hands in so much stuff. I don't know how.
| |
Shaan Puri | Far called Acquisition.com. I was looking at this the other day because I saw a video on TikTok, and I was like, "What's up with this? Is this real?" I was literally like, it's so funny you did the research on this because I had jotted this down as like, "Dig in, find out."
So, what Acquisition.com is basically saying is, "Do you want to scale your business? I will 3x the profits of 100 businesses that are doing between $1 million to $10 million EBITDA per year that are service-based businesses over the next 5 years."
If you want help scaling your company without giving up a majority interest, click the purple button below.
Then, yeah, it basically says the same kind of story that you were saying before. It's like, "How do you want to learn from us? Here's my course, here's my book, here's my podcast, here's my link to join my accelerator," or whatever.
| |
Sam Parr | But this, I don't know if he's selling a course on Acquisition.com or if he's just trying to get leads on small businesses he could buy.
He bought one business, and that's a photography business. I listed the name of it; it's called something like "Enchanted Fairies."
Yeah, Enchanted Fairies. It's spelled F-A-I-R-I-E-S. Sorry, Enchanted Fairies. It's like a photography business he bought. Is that crazy though? I mean, this is like a pretty wild enterprise.
| |
Shaan Puri | Yeah, and he actually has some pretty good stuff. I sent, I don't know, about 20 TikToks out a day to three people.
This is the thing: I have my friend who I can send offensive, funny things to. Actually, you're in this bucket too, where you're one of the few people that I can send something that's like "cancel-worthy." If you think this is funny, I can send it to you, and I can send it to my brother-in-law. That's what I do; I send it to both of those people.
I'll tell you what, this is bad, but there’s this Twitter account I follow that's like a meme account. It's got about 200,000 followers, and he tweeted out, "Men's mental health is not important." Follow-up tweet: "Just get more." That was his tweet.
I'm like, I know I shouldn't... it's like a fart joke. I shouldn't think this is funny, but it cracked me up because it's so anti my Silicon Valley timeline, which is just super progressive. Everything matters; everything is justice for everybody.
It's nice to just hear, like, where I'm from in Houston. I went to a pretty ghetto school growing up, and the sense of humor that comes from that just hits home for me.
| |
Sam Parr | potty potty jokes | |
Shaan Puri | Yeah, just like, you know, it's just like you don't bring your pronouns to the hood type of thing. There's this hood humor that I just find really funny.
Anyway, you and this guy, that's like my inappropriate jokes. There's, you know, I'll send my wife or my sister just like kind of, "Oh, that's funny kid stuff, mom stuff," whatever. Then there are little business or marketing hack tactics that I think are actually pretty interesting.
So this guy, Alex, to me, one of the reasons I suspected he's legit is because his advice is actually pretty legit. He's not just saying general motivational quotes.
For example, he says something like, it's like a little sales thing that helps. And these are TikToks, right? Those are like 10 seconds, you don't have to invest much in it. It's like a little sales trick that kind of helps me.
Getting somebody to say yes is hard; it's like a commitment. So if I'm like, "Would you like to sign up?" it's like, "Let me think about it, let me get back to you." That's something you'll get frequently.
He's like, "I'll ask a no commitment question." So I'll say, "You know, if we're able to work out the details, would you be opposed to actually signing up with us?" And they're like, "No, I'm not opposed to that," like, "No, I'm not against it."
Actually, this is something that when I heard it, I was like, "Oh, actually, I've kind of accidentally done this a couple of times." Hey, you know, that's a good...
| |
Shaan Puri | There's something there in the psychology. Cool, noted.
I'll pick up these little things from him and like five other people that are, you know, in this copywriting, sales, persuasion world. I just think those are interesting to me.
So, I actually think this guy is legit for that reason. Even though people look down on lead generation, they've looked down on course businesses. There's a stigma around course businesses, which is like, "Oh, you probably couldn't do it. That's why you're selling courses."
| |
Sam Parr | Let me change... let me clarify how I feel. I think he's legit, and he seems like a decent guy. He for sure seemed like a smart guy. I don't know him well, but he seemed like a really nice guy.
However, he's in an industry with a lot of shady people. Not that he's shady, but he's in the supplements industry and selling this type of stuff.
| |
Shaan Puri | supplements courses yeah | |
Sam Parr | Yeah, and of course, I don't know if he's shady. I'm just saying there are shady people.
Also, it's a $20,000 course, and I frankly don't think I've got the **chutzpah** to sell that to someone on the phone.
Yeah, like, that's really bold, and frankly, I find it to be challenging. So, I wouldn't say that I think he's shady. I'm just saying that, like, that world has a lot of players who are...
| |
Shaan Puri | Yeah, yeah, yeah, I’m with you. I don’t think you said anything negative. I think we were actually quite complimentary towards him. But okay, I like that.
|