From: alexhormozi
For entrepreneurs and business owners, growth is paramount, and this growth is intrinsically linked to continuous learning [00:00:11]. The speaker emphasizes that success in business education and coaching programs has consistently stemmed from becoming the top student and eventually surpassing the instructor [00:00:06]. A key insight is that success is not determined by the quality of a program or teacher, but by the individual’s commitment to making it work [00:00:49]. Regardless of the teacher or program, a “winner’s mindset” will always yield positive results [00:03:11].
Levels of Competence
A top-down approach to understanding competence outlines five distinct levels that influence success in learning and business. This framework combines mindset with skill perspective to yield better results [00:01:37].
Level 1: Positive Active
This is the highest level of competence [00:02:06]. Individuals at this level believe that if no one has proven something cannot be done, it is possible, and they actively challenge others to prove them wrong [00:02:22]. Their mindset is, “I will be the best student this person has ever had, no matter how incompetent the teacher is; I will win because that’s who I am” [00:02:31]. This perspective puts the power of success in their own hands [00:02:48]. Examples include Elon Musk breaking down challenges to physics or Roger Bannister running the first four-minute mile [00:03:16].
Level 2: Positive Passive
These individuals are motivated by seeing others succeed [00:03:44]. They think, “Okay, he did it, so I can do it too” [00:03:51]. This is still a strong position, representing “A-minus players” who are willing to replicate successful actions before attempting to iterate [00:04:04].
Level 3: Neutral Passive
The majority of people fall into this category [00:04:57]. They have a “let’s see if it works for me” approach, passively accepting whatever happens [00:04:34]. They often act as mediocre customers or clients, lacking strong personal agency [00:05:07].
Level 4: Negative Passive
This level is characterized by the belief that “it might work for other people, but it probably won’t work for me” [00:05:22]. They are still passive but have a negative inclination, often “half-assing” efforts [00:05:27]. An example shared was a salon owner who blamed a gift card campaign for not working, despite failing to follow the instructions correctly [00:05:37].
Level 5: Negative Active
This is the “bottom of the barrel” competence level [00:07:41]. Individuals actively try to prove that something won’t work for them [00:07:54]. They see themselves as “special snowflakes” for whom rules or systems do not apply [00:08:05]. This mindset is often rooted in an identity attached to struggle, making it easier to blame external factors than to accept personal accountability [00:09:03].
Despite being the lowest level, individuals at Level 5 have the highest potential to jump directly to Level 1 [00:09:41]. Their active energy, if redirected from proving failure to proving success, can turn them into “absolute animals” and strong brand champions [00:10:00]. Examples include a gym owner who transformed from a Level 5 to a top performer by assuming a system would work [00:10:07], and a client who, after being challenged to choose between being “right and fat” or “thin,” committed to the program and lost weight [00:12:07].
Do or Do Not, There Is No Try
The concept of “trying” is considered “insidious” because it inherently allows for the possibility of failure [00:14:27]. Instead, the mindset should be one of inevitable success, where failure is not an option [00:14:44]. This aligns with Yoda’s famous line: “There is no try. There is only do, or do not” [00:14:21]. Successful individuals do not try to make things work; they make them work [00:14:45].
The Role of Skills in Learning Outcomes
Unequal outcomes in education and business programs are largely predicted by the number of existing skills an individual possesses when starting a program [00:16:02]. Learning is viewed as building a bridge: each previous educational experience or skill acquired contributes “bricks” to that bridge [00:16:21]. Success is often wrongly attributed solely to the “last brick” (the most recent program) rather than the cumulative skills built over time [00:16:41]. More meta-skills allow individuals to bridge gaps where instructions might be vague [00:18:12].
Learning from All Experiences
Even “bad” experiences, teachers, or products can yield positive returns through inversion thinking [00:19:19]. By identifying what not to do, one can learn to do the exact opposite and still derive benefit [00:19:46]. This ensures that every experience, regardless of its initial perceived quality, contributes to growth and understanding, creating a “no-fail situation” for the learner [00:20:20].
Winning Regardless of Conditions
Champions create success irrespective of the conditions [00:21:16]. They do not blame external factors like the education system, teachers, or vendors for their lack of success [00:21:21]. Instead, they force winning to occur, much like Tom Brady changing teams and still reaching championships [00:21:38]. The most effective way to demonstrate someone else’s inadequacy is to surpass them and continue to win [00:25:41].
Replicate Before You Iterate
A crucial strategy for entrepreneurial success is to replicate existing successful methods before attempting to innovate [00:23:09]. This means meticulously following proven steps to achieve the same results as someone who has already succeeded [00:23:23]. Only after understanding why a method works by replicating it should one attempt to iterate or improve upon it [00:23:43].
This mindset emphasizes personal accountability and an unwavering belief in one’s ability to win, regardless of external circumstances. It transforms challenges into learning opportunities and positions the individual as the ultimate determinant of their own success [00:25:20].