From: alexhormozi
The journey of business and personal growth necessitates continuous learning and adaptation [00:00:11]. According to one entrepreneur, the most crucial element in ensuring success from any educational investment is the individual’s mindset and approach, not the quality of the teaching itself [00:00:49]. This perspective highlights that one’s personal commitment and a strategic approach to successful learning are paramount [00:00:52].
The Role of Personal Mindset in Achieving ROI
Despite investing over $500,000 in business education—including courses, masterminds, coaching programs, and workshops—the speaker claims to have never had a negative return on investment (ROI) [00:01:04]. This consistent success occurred even when dealing with “bad teachers” or “scumbags,” underscoring the belief that the individual makes the program work [00:01:10]. The core principle is that you are the one who makes it work [00:00:52].
Levels of Competence
To understand how individuals approach learning and execution, a top-down framework of five competence levels can be applied [00:01:34]. These levels describe an individual’s inclination and active/passive engagement in learning and achieving goals:
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Level 1: Positive Active [00:02:08]
- Characteristics: Believes that if no one has proven something cannot be done, it can be done [00:02:22]. Takes full ownership of success, aiming to be the best student regardless of the teacher’s competence [00:02:31].
- Examples: Elon Musk, who challenges physical limits [00:03:16]; Roger Bannister, who broke the four-minute mile barrier when it was considered impossible [00:03:25].
- Mindset: “Prove to me why I cannot do it” [00:02:24].
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Level 2: Positive Passive [00:03:43]
- Characteristics: Believes “if someone else did it, I can do it” [00:03:51]. Willing to replicate existing successful methods [00:04:15]. These are often “A-minus players” who are highly capable [00:04:04].
- Examples: People who ran the four-minute mile after Roger Bannister [00:03:47].
- Mindset: Replicate before you iterate [00:04:15].
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Level 3: Neutral Passive [00:04:31]
- Characteristics: Takes a “let’s see if it works for me” approach [00:04:36]. Passively accepts outcomes, common among the general population and often leads to mediocre results [00:04:52].
- Example: A gym-goer saying, “We’ll see if your program works for me” [00:05:11].
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Level 4: Negative Passive [00:05:21]
- Characteristics: Believes “it might work for other people, but it probably won’t work for me” [00:05:22]. Often “half-asses” efforts, blaming the system or program when it doesn’t work [00:05:31].
- Case Study: Salon Owner [00:05:37] A salon owner claimed a gift card campaign “didn’t work” [00:05:45]. Upon review, it was revealed he hadn’t followed the instructions correctly, allowing customers to use gift cards for themselves instead of for referrals [00:06:01]. His approach was to blame the system rather than acknowledge his incomplete execution [00:06:17].
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Level 5: Negative Active [00:07:54]
- Characteristics: Actively tries to prove that a system won’t work for them, believing they are a “special snowflake” with unique circumstances [00:07:57]. Their identity is attached to being “right” about their limitations [00:09:03]. It’s easier to blame external factors than accept personal responsibility for lack of success [00:09:24].
- Example: Believing one’s body defies calorie laws or that marriage communication advice won’t work for their unique relationship [00:08:07].
The Power of Transformation: Level 5 to Level 1
Interestingly, individuals at Level 5 (Negative Active) have the highest potential for dramatic transformation, often jumping directly to Level 1 (Positive Active) [00:09:41]. This occurs when their active energy shifts from proving something won’t work to proving it will work [01:00:00].
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Case Study: Gym Owner [00:10:07] A gym owner, initially a Level 5, insisted his market, zip code, and even the “corner his gym is on” were different, preventing success [00:10:15]. After being challenged, he decided to apply the same energy he used to prove the system wrong to proving it right [00:10:49]. By fully committing, he transformed his gym into one of the top facilities among thousands, eventually being hired by the program because he outsourced his gym and made it highly profitable [00:11:03]. The system was the same; his approach to successful learning and competence level changed [00:11:25].
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Case Study: Autumn (Gym Client) [00:11:31] Autumn, an early gym client, exhibited Level 5 behavior, claiming “nothing works for me” due to a “special thyroid” [00:11:38]. When her peers started losing weight, she was confronted with a choice: “Do you want to be right and fat, or do you want to get skinny?” [00:12:07]. Choosing to be thin, she committed fully, lost significant weight, became a top client, and a brand ambassador [00:12:29]. This highlights a powerful identity shift.
The Philosophy of “Do, Not Try”
Inspired by figures like Morpheus from The Matrix and Yoda from Star Wars, the philosophy emphasizes “doing” rather than “trying” [00:13:13].
“Stop trying to hit me… and hit me.” [00:13:24] “There is no try, there is only fail or do and not do.” [00:14:21]
“Trying” inherently allows for the possibility of failure [00:14:30]. A winning mindset, especially at Level 1 or 2, fundamentally believes that if something is not physically impossible, it will be achieved [00:14:37]. This creates a “no fail” situation where success is an inevitability [00:24:24].
Building Success from the Ground Up: The Role of Skills
Beyond mindset, success in learning also depends on the skills an individual possesses when entering an educational program [00:16:02]. This is the “bottom-up approach.”
- Skills as Building Blocks: Education builds sequentially, like adding bricks to a bridge [00:16:21]. Earlier, foundational learning, though seemingly less impactful, is crucial for later success [00:17:06]. Attributing all success to the “last brick” (most recent learning) rather than the entire cumulative process is a common mistake [00:16:41].
- Meta-Skills and Vagueness: The more skills (especially “meta-skills” like problem-solving or basic literacy) an individual possesses, the more they can bridge gaps where instructions are vague [00:18:11]. A comprehensive skill stack allows for more abstract guidance to be executed effectively [00:18:07].
- Learning from Failure (Inversion Thinking): Even if a program or experience is terrible, it still offers an opportunity for learning through “inversion thinking” [00:19:19]. By identifying what not to do, one can still derive immense value and achieve a positive ROI [00:19:44]. This applies to business products, parenting, or relationships [00:19:24].
- Replicate Before You Iterate: A strategic approach to successful learning is to first replicate exactly what has been taught to achieve the same results [00:23:09]. Only after understanding why it worked (by retracing the steps) should one begin to iterate and improve [00:23:33]. Iterating too early, without full comprehension, leads to failure [00:23:40].
Ultimately, champions create success regardless of conditions [00:21:16]. The choice is whether to be right in your perceived limitations or to achieve the desired outcome [00:12:12]. True learning and transformation involve proving to oneself, yet again, that one can win no matter what [00:25:20].