Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it..

Last updated: Jun 15, 2023

The video is about how Alex Hormozi made his first million dollars in profit and the decisions he made to focus on one business, Gym Launch, after a life-changing event.

This video by Alex Hormozi was published on Sep 17, 2021.
Video length: 31:04.

In this video, Alex Hormozi talks about how he made his first million dollars in profit and the importance of focusing on profit rather than revenue.

He shares how a head-on collision in a DUI was the catalyst for him to make hard decisions and focus on one thing, which led him to go all in on gym launch. He explains how he and his partner would fly out and do gym turnarounds, spending their own money on marketing and offering to fill gyms in 30 days for free in exchange for keeping the upfront cash and letting the gym keep the contract value. He also shares how he had to shut down his other businesses and gyms, and how he ended up with nothing after his partner took the money from their last gym.

Despite this, he was able to write checks for all the customers and escape emotionally unscathed.

  • Alex Hormozi made his first million dollars in profit and emphasizes the importance of profit over revenue.
  • He had constraints due to running multiple businesses at the same time and was spread too thin.
  • He decided to go all in on Gym Launch and shut down his other businesses.
  • He made hard calls and focused on one thing, which led to the success of Gym Launch.
  • He started Gym Launch with only $1,000 and a credit card with a $100,000 limit.
  • Gym Launch started with six locations and grew to 50 locations in six months.
  • Alex learned the importance of doing right by everyone, taking risks, having a strong support system, hard work, and constantly learning.
  • He realized that success comes from focusing on one thing and doing it well.
  • He learned the value of constantly improving oneself, not just making money.

I made $3,000,000 at 27...this is EXACTLY how I did it.. - YouTube

Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it.. 001

Introduction

  • Alex Hormozi talks about how he made his first million dollars in profit.
  • He emphasizes the importance of profit over revenue.
  • He shares how a life-changing event made him confront his decisions and focus on one thing.
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Letting Go of Constraints

  • Alex talks about the theory of constraint and how most people have limiting beliefs that hold them back.
  • He shares how he had constraints due to running multiple businesses at the same time.
  • He talks about how he was spread too thin and was working every hour of the day.
  • He shares how he got in a head-on collision and decided to make the next move, which was going all in on Gym Launch.
  • He talks about how he had to shut down his other businesses and put the money from their sale into the last gym facility.
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Gym Launch

  • Alex talks about how he and Layla would fly out and do gym turnarounds for free.
  • He shares how they would spend their own money on marketing and sell an average of 10 memberships a day.
  • He talks about how he decided to focus solely on Gym Launch and fire-sold his other businesses.
  • He shares how he had to shut down the last gym facility and stomach rent and payroll with no new cash flow coming in.
  • He talks about how he wrote checks for all the customers and didn't pursue anything with the partner.
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I made $3,000,000 at 27...this is EXACTLY how I did it.. - YouTube

Conclusion

  • Alex shares how he made hard calls and went all in on Gym Launch.
  • He talks about how he had to let go of his other businesses and focus on one thing.
  • He emphasizes the importance of profit over revenue and making decisions that will benefit you in the long run.
  • He shares how he was able to escape the situation emotionally unscathed by doing right by everyone.
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Starting from Scratch

  • Alex had $23,000 left after selling six businesses.
  • He realized that the entrepreneurial journey is about improving oneself, not just making money.
  • He made $100,000 in sales in the next 30 days after starting Gym Launch.
  • Layla convinced six of her friends to quit their MLM jobs and join Gym Launch.
  • Alex trained a salesman who made $120,000 in sales in December.
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Unexpected Obstacles

  • Alex was waiting for a deposit from his gym processor but it didn't arrive.
  • He was told that he was in an annual review and that it was standard.
  • He called again and was told that they were working through some final things.
  • On Christmas Eve, he was told that they were holding onto his funds for six months.
  • Alex lost his temper and said some mean things to the person on the phone.
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Dealing with the Consequences

  • Alex and Layla were supposed to go to the movies but he was too stressed.
  • He realized that he needed to come up with $100,000 to launch six gyms in two days.
  • He called his friend who had a successful gym and asked for a loan.
  • His friend agreed to lend him the money but with a high interest rate.
  • Alex and Layla launched six gyms and made $500,000 in sales in the first month.
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The Importance of Focus

  • Alex realized that he needed to focus on one business instead of spreading himself too thin.
  • He sold his other businesses and focused solely on Gym Launch.
  • He hired a team to help him run the business and expand it.
  • Gym Launch became a multi-million dollar company and Alex became a successful entrepreneur.
  • He learned that success comes from focusing on one thing and doing it well.
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Life-changing event

  • Alex was owed a large sum of money from a processor that was holding it.
  • He found out for the first time that a processor can hold money.
  • He owed a salesman a commission check of $22,000.
  • He had $1,000 left and a credit card with a $100,000 limit.
  • He decided to launch Gym Launch with the remaining money.
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Launching Gym Launch

  • Alex launched Gym Launch with only $1,000 and a credit card with a $100,000 limit.
  • He had to pay for hotel, airfare, food, car, ad spend, and commissions for six guys every day.
  • He was paying someone part-time to process contracts, but it was not enough.
  • He had to call everyone he knew to try and find a way to process the money.
  • He finally found a high-risk processor who gave him a $50,000 limit.
Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it.. 013

Scaling Gym Launch

  • Gym Launch started with six locations and grew to 50 locations in six months.
  • Alex had to learn how to scale the business and manage the growth.
  • He had to hire more people and create systems to handle the workload.
  • He had to deal with cancellations and refunds, which were a big challenge.
  • He had to focus on customer service and making sure clients were happy.
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Lessons learned

  • Alex learned the importance of doing right by everyone and not carrying emotional scars.
  • He learned the value of taking risks and not being afraid to fail.
  • He learned the importance of having a strong support system and surrounding himself with the right people.
  • He learned the value of hard work and persistence in achieving success.
  • He learned the importance of constantly learning and improving himself and his business.
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Starting Out

  • Alex started out with a credit card debt of $100,000.
  • He was able to get a merchant account that allowed him to process $50,000 per month.
  • He was able to catch up with his debt by processing $100,000 in the first month.
  • He was able to process $150,000 the next month and started to see profits.
  • He learned the lesson of controlling everything end to end.
Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it.. 017

Refunds and Sales

  • 35% of all sales were refunded due to lack of control over fulfillment.
  • Refunds wiped out all the savings he had over the last month or two.
  • He had to sell more to cover the refunds from the previous month.
  • He felt like he was in a death trap and didn't know how to get out of it.
  • He wrote a sales letter and started selling weight loss programs online.
Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it.. 018

Transitioning to Online Sales

  • Alex's wife was making $3,000 a month from her online coaching business.
  • Alex decided to take the middleman out and sell weight loss programs online.
  • He wrote a sales letter and started running traffic to it.
  • They started doing $1,000 a day in online sales.
  • They were able to transition their sales team to sell from home and do $8,000 a day.
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Lessons Learned

  • Control everything end to end.
  • Transition to online sales to increase margins.
  • Don't rely on others for fulfillment.
  • Be willing to take risks and make changes when necessary.
  • Focus on one business and make it successful.
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Turning Point

  • Alex decided to stop doing gym launches and focus on a new direction.
  • One of his clients asked him to show them how he signed up 200 people in three weeks.
  • Alex initially refused but eventually agreed to show them for $6,000.
  • Seven more clients agreed to pay him $8,000 each to learn his methods.
  • Alex ended up doing $60,000 in sales in a day.
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Scaling Up

  • Alex realized he needed to make $150,000 in profit in the next 30 days to pay off his debts.
  • He called up every gym they had launched at that point and offered to show them how to fill up their gym.
  • He ended up doing $300,000 in sales the next month selling a digital product.
  • The average gym that used the consulting program Jim Launch did $30,000 in collected cash in the next 30 days.
  • Word of mouth helped Jim Launch grow rapidly.
Alex Hormozi: I made $3,000,000 at 27...this is EXACTLY how I did it.. 023

Product Quality

  • Alex's success was not just due to marketing but also the quality of his product.
  • He launched his book "100 Million Offers" for 99 cents with one post on Instagram and it sells about a thousand copies a day with no funnels or ads.
  • He charged an "egregious" amount of money for his consulting program because it made people so much money.
  • He knew every aspect of the process because he had done it for his own gyms and for the 30+ gyms they had launched.
  • He knew how to train sales guys, position the offer, and maximize sales in the lobby.
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Conclusion

  • Alex's success was due to his willingness to pivot and focus on a new direction.
  • He was able to scale up quickly by offering his consulting program to gyms they had launched.
  • The quality of his product was key to his success.
  • He knew every aspect of the process and was able to train others to replicate his success.
  • Word of mouth helped him grow rapidly.
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Building a Foundation Takes Time

  • Developing skills, character traits, and beliefs takes time.
  • Don't expect your first business to be the one that makes you successful.
  • Accumulating skills and traits over time is what becomes your actual asset.
  • The businesses you start are just manifestations of those assets.
  • It's important to understand that the journey is long.
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Don't Skip the First Five Years

  • Most people want to skip the first five years of the story.
  • It took Alex five years to develop the skills and traits he needed to succeed.
  • He didn't feel good enough to sell his first gym until he had accumulated enough skills.
  • He did gym launches for almost two years to accumulate skills and traits.
  • People need to have the skills, character traits, and beliefs that align with what they want to achieve.
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The Foundation Dictates the Height of the Pyramid

  • The foundation you set will dictate the height of the peak of the pyramid you want to build.
  • Most people have a very small foundation and are not good enough.
  • The amount of money you make will be predicted by the value you provide to the marketplace.
  • People need to have the skills, character traits, and beliefs that align with what they want to achieve.
  • It's important to have a strong foundation before starting a business.
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Transitioning to Better Opportunity Vehicles

  • As Alex's beliefs and character traits changed and developed, he was able to switch into better opportunity vehicles.
  • He had the same skills, but was able to switch to higher gross margin opportunities.
  • He transitioned from gyms to a done-for-you sales model to licensing code and media.
  • Switching to media had significantly higher gross margins.
  • It's important to have the right opportunity vehicle for your set of skills.
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Transitioning through different vehicles to success

  • The first step is to acquire the necessary skills to repackage and transition through different vehicles.
  • Many successful people have had years of thankless work to develop the necessary skills, traits, and beliefs that set them free.
  • People should not skip the rocky cut scene of acquiring skills and think they can become a millionaire in six months.
  • Entrepreneurial journeys vary, and it took Alex Hormozi three years to start making real money.
  • Acquisition.com, Alex Hormozi's company, generates about 85 million dollars in revenue annually.
  • People should keep being awesome and subscribe to Alex Hormozi's YouTube channel for more videos.

Watch the video on YouTube:
I made $3,000,000 at 27...this is EXACTLY how I did it.. - YouTube

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