#718 - Replacing Yourself With an Amazing Team (Audio Only)

here in my garage. I haven't even met you and I can guarantee that I know the hardest part, the most complex part, the trickiest part of you trying to make money. You want to know what it is? Finding, hiring, training, and managing good people. Trickiest thing you will run into on your path. Whatever your goal is, you want to make a million bucks, you want to make 10 million, you want to make a billion, you got one hard path in front of you. One extra tricky one. See, marketing, the code can be cracked. Social media virality, you could crack the code. I know how to crack the code. That's a formula. Of course, it's not super easy. You get paid in proportion to the difficulty of things you know how to do. So, it's not like marketing and and social media and sales and operations is that easy. But the trickiest part of the whole game without a doubt is managing people. And I'm going to tell you why. and we're going to go through the solutions to building, hiring, finding, recruiting, training, retaining, managing, improving people. Now, if you look at the in an old textbook on economics, what will it teach you? It'll say the three classic factors of production are land, labor, and capital. So, for the last 10,000 generations, humans have realized there's three things you need. You need land which in the modern world is more of a brand. You need a product a brand. So land it used to be in agricultural you know your your product was your land and the product and and the crops that you produce and the animals you produced on your farm. But now in the modern world you could take the word land and call it brand. Now next you have number two labor. That's people humans. And that's what we're going to focus on on today's podcast episode. Welcome to the Tai Lopez show. This is on my mind. I'm in the trenches of building businesses. You know, I've scaled businesses beyond 500 million a year that I've owned. I've been in the game of the online game since 2001. Um, you know, Chat GPT ranks me number one in history at doing paid ads and funnels and marketing and monetizing social media in the education space. So, I don't know if I'm number one, but I have a lot of years of trying to win at this game, and I and I want to save many years for you off your learning curve. So, whether you're a beginner at the game of making money online or you're highly advanced, um, I think you're going to a lot of what I talk about today is going to be applicable to you. I'm on a on a car ride back from a business retreat in Palm Springs, back to Beverly Hills. So this is actually something I was dealing with today. Some frustration I was dealing with just to be transparent with some of my seuite. So I've had different size teams over the years. The most I've ever had is 8,500 employees reporting to me with 60 seuite people and I've had small companies when I first started as just you know one or two staff. And so here's the universals. I want to give you the one, two, three of building a team that allows you to replace yourself, allows you to buy back your time, allows you to scale at the game of money because make no mistake, the game of money is very related to the people you surround yourself. Like I said, the three classic factors of production uh factor one is of course uh what I said, land, brand, product. You got to have a good one. I'm just going to assume you have a irresistible product. Then the third one is capital. And I talk a lot about this. For those of you in my 18 strategies, I talk about this. You can go to tylo.com and buy the 18 strategy system. It's specifically on how to scale from 10 million to 100 million. Okay? And in that system, what one of the things that I teach people is it's basically 18 strategies. If you just listen to these 18 things and put them in practice, this you can scale past 10 million. But you gota every one of the 18 strategies have to be put in place to go 10 million to 100 million annual revenue or beyond. So one of those I talk about capital. So I'm not going to talk about that so much in this podcast and the 18 strategies for those of you who get into that. You can go through the stuff on capital. I say basically it's called capitalism. A lot of entrepreneurs forget we don't live in an entrepreneur world. We don't live in a you know it's not an entrepreneur economy. We live in a capitalistic economy. There's only three main economies in the world. Socialism, communism, and capitalism. And if you're in the Western world, you're probably in a capitalistic society. Maybe if you're in Sweden, a little bit socialistic, but they're still pretty capitalistic, too. So, we'll we'll skip number one and number three today. I want to focus on number two. The second factor, classic factor of production is labor. The people you surround yourself with inside your company. the people who on a day-to-day b uh basis execute whatever it is you're trying to do. Now, let's start in chronological order. First, you have to find them. Okay? So, let's take some time. How the hell do you find them? A lot of people are like, I can't even find these people. Okay? So, a couple things. I'll give you a practical quick solution and then we'll go more in depth. One simple solution is make a quick video of you as the owner CEO. Just saying, you know, this is a 60-second video. Hey, I'm hiring people. This is what I do. I really need good people. And run it as an Instagram ads on stories and then just say, hey, if you're interested, message me below. And you could generate for very cheap. Even if you're not well known, you can generate a flow of income. I'm sorry, a flow of applicants, not income. It'll turn into income. So, a flow of applications. If I owned a plumbing business, if I was an online coach, if I was, you know, had a big sales floor, if I whatever I did and I'm trying to find people, I would be running Instagram story ads. But I liked Instagram story ads. You can also do it on regular Instagram ads because they can direct message you. You can also do it on Meta. And then you can do some targeting. There's some specific rules of targeting on social media. You you can't discriminate. So you got to re you can't target just males or just females. you sometimes you you can't even target by age, right? But you can still target, you know, people with similar interests. So if I'm hiring, for example, for my company, TLB Brands.com, I'm looking for people with an interest. They follow other digital marketing channels, for example, lookalike channels, all this ways you but but spend 20 bucks a day, $600 a month minimum at just continually casting a wide net. So, the number one thing on finding people is you need to continually don't think of it as like, "Oh, I only look for people when I need them." Then you're going to be too stressed. Only a fool does things when they need it, right? Only a fool waits till he's morbidly obese to start losing weight so he doesn't after he has a heart attack. I mean, that's the foolish way. The wise ways go, you know what? I don't want a heart attack. Let me do this now, way ahead of time. let me eat right way ahead of time. So, you should have a function in your business that some of your staff are continually running. I'd rather have a flow of, you know, two new applications every day for a year than 700 all coming in in one month. It's easier to manage when you do it slowly. So, that's my practical advice. Run Facebook and Instagram ads. Record a quick authentic video, not a cheesy one. It can be a handheld selfie style ad. Hey, I own this business and I need people and I'm going to share with you a little bit of why we're different at a company. Some interesting things you'll learn coming to work for me. Here's the job title I need. You can you you don't have to say the pay range, but just say message me the word job and just do simple call to actions and then you or your team can just reply back and forth to people. Have a nice steady flow. I'm always recruiting. Um I have a system called the 14 divisions. That's how I just divide up my company into 14 different divisions. Division one is people. So I have an HR function, a hiring and recruiting function that's always running. It's never turned off. Next 5 years I'll run it for 5 years. Sometimes I turn up the intensity. It's the ad spend and sometimes I keep it low, but I like a steady state. Okay. Now, when you're finding people, there's other ways to find people. Recruiting. I've used recruiters before. You can use head hunters that poach people away. I've never been big at poaching, but you know, you can do that. Some people like that. I I've never liked that because then you poach people who aren't loyal and then they're not loyal when they work for you. So, if you can poach somebody for a paycheck, then guess what? They're brought somebody else can do the same thing back. So, I'm a huge fan of, you know, running ads, but I do use some of the more conventional things sometimes. Now, there's websites, there's job boards, there's places like Toptile, there's Upwork, and those are okay. They're a free-for-all. And so, you really got to one out of 12 people is actually going to be good. And I'll talk about that more in step two, but step one in in the recruiting, very important step is use objective quizzes. I'm such a big fan of quizzes. Now, some people think it's weird, but I go, "Hey, it's like Einstein said, the thing about smart people is they seem weird to stupid people." So, sometimes people, "Oh, that sounds weird, Ty." I go, "Yeah, either that or you're stupid." I mean, I say that with a tongue and cheek and laughing a little bit. But, but it makes my point that just cuz it sounds unconventional doesn't mean it's wrong, right? It just might be far ahead of the game, might be ahead of the curve. So, I think using quizzes has slowly become more standard. You look at big companies like Google that get three million applications. They're not doing three million job interviews. In fact, and by the way, the homework for today's podcast episode is called Work Rules. Work Rules by Llo Bach. who was the head of hiring at Google for some years and he was processing over 3 million applications and they actually went deep in the science of what actually you can do in the hiring process that predicts that you will have a high quality uh employee or independent contractor staff member. Right? So in my company we run them through a series of quizzes. Now you got to use compliant quizzes. Okay? You got to use compliant quizzes. So if you're in the United States, you need a quiz that essentially is conservative enough that even states like California and New York that have all kinds of BS overregulations, but as a you got to just live with that evil, you know, it's overregulation nonsense, but it's just the game. Don't hate the player, hate the game, right? So I use there's a couple companies I'm actually launching a company. I own 12types.com. If you haven't taken your personality quizzes, I got three really insanely good ones. I'm telling you, they're better than any other quiz you can take online. And that's an individual personality quiz. If you go to 12types.com, the number 12 types like personality types.com. There's a career quiz. What is your best occupation? There's a there is a uh number two. There's a worldview quiz. And then there's a four motivations. What's your core motivations? Very important. Everybody take that four motivations quiz. But anyway, I'm coming out with an enterprise version of 12 types too that will have these quizzes, but you can Google. There's different companies that do it depending on what country you're in. So, the first quiz that I like to use is called a cognitive quiz. It's not an IQ quiz, okay? It's literally called they call cognitive quizzes, but what did Google find in their hiring the science of hiring? They found that cognitive quizzes are very correlated uh with hiring the right person that does well in the long run. So, I found though, not that I know more than Google, but uh I would say I found it depends on what role. So, if I'm hiring salespeople, I don't necessarily do the cognitive quiz first. Why? Because I have not found that necessarily high cognitive people are better salespeople. In fact, maybe they're worse. like on a one to 100 quiz score. I've got lots of green salespeople that only score a 60 or 70 cognitive because their their IQ might not be super high, but their EQ, emotional skills, social skills, that's what we're really looking for in sales. So, but when it comes to operations, you want high cognitive. Now, you might not put the bar as high as me, but I put the bar at, you know, n I like people 90 percentile. 90 out of 100 or higher. 95 plus is my favorite. Now, that's much higher. That's like one out of a 100 people that really falls into that category, just so you know. Okay, that's a very rare that you that you find a I've only once or twice ever seen a 99. Um, so you can take the wiz, too. Um, but I I use this cognitive quiz soon. If you go to 12types.com, I I'll try to put up a I'll put up a button that says weight list. You can go to the weight list. If you click up in the corner, it'll say enterprise. So, if you go to 12types.com, go to the enterprise in the upper right. So, cognitive first, unless I'm hiring for sales, then if you're hiring for sales, believe it or not, an interview is great because you can interact with them on Zoom. So, if you don't have time to do a Zoom, depending on the compliance in the state you live, you can ask ChatBT if it's compliant. You can ask them to set send a sales uh video of them selling. Uh most states that's compliant. I'm not sure if it's compliant in every one of the US states. So, check with your lawyer or Chad GBT before you do that. But you can do a Zoom hiring interview. It just takes more work, right? Because it's live. But those are really important in my experience. Really important in my experience. Why? Because I can see their social skills. But if I'm hiring operations, we do an interview on Zoom last last. Why is the least important things for a good operations person? It is important to do at some point either face to face or Zoom just to make sure you're not getting a totally insane weird, you know, serial killer or something like that. But that's the last step. When I'm hiring marketing people, social media marketing people, when I'm hiring finance, accounting, lawyers, HR people, fulfillment people, every function of the 14 besides sales, I lead with a cognitive quiz. You're looking for high IQ people. Uh especially in in high IQ divisions of the business like marketing. Marketing is very much a high IQ thing, you know, conventional IQ, right? Sales not so important. Um, and so what I do, and by the way, you know, if you look at Bill Gates is really the first guy to be at the top of the fork list for 20 straight years as the richest man on earth. He he there was an interview that I saw and not many people have seen this interview, but they just said, you know, what's your secret? What do you attribute to you creating so much wealth so young? He said, easy. I did a IQ quiz to come work for me at Microsoft, and I just asked one super hard question that 99 out of 100 people couldn't answer. So he would change it all the time. I think at one point the question was guesstimate the volume of water throat that flows through the mouth of the Mississippi River per minute. And he wasn't necessarily needing the exact answer, but he wanted to see if there were high IQ to get in the realm and the vicinity. I've seen people do, you know, guess how many fire hydrants there are in Manhattan or guess how many windows there are in downtown Los Angeles. things like that. That's what Bill Gates used. He didn't have any other kind of quizzes and he was building it makes sense a computer programming tech business. You want your tech guys. My lead tech dev, his name is Lynn. He he is freaking intelligent. Um I hired him many years ago, almost more than 15 years ago before I even knew about cognitive IQ quizzes for hiring. And it's strange. It's funny because I should have known he was high IQ cuz the first month he only spoke Chinese. So we I was using he was using a translator app. We were talking back then on Skype and then I remember a month later he started answering faster and I'm like oh what'd you do? He's like oh yeah I taught myself English this month. That should have been my sign. Of course he wasn't fully fluent but he got so good in a month at English. And let me tell you something for all of you watching. You're frustrated with your team. You're frustrated IQ. when it comes to anything besides sales is insanely correlated with your life frustration versus life happiness as a business owner. And here's why. High IQ people read your mind. Now, if you go into a Harvard textbook, this is called mentalism or mind readading. We're not talking about like psychic supernatural powers. Harvard actually teaches. Dr. David Bus, one of my longtime mentors, he is writing a paper right now on mental uh mentalism or mind readading. It doesn't mean literal. It's when people are high IQ, they can before you fully explain it, they know what you're wanting. So like with my lead programmer, I can just essentially, you know, tell him kind of what I want him to do with computer code. Just a little bit and he'll do it. Does that make sense? Right. I can just kind of tell a little bit. I don't have to spend an hour explaining. I got other guys. I have some other geniuses that work for me. And every one of those geniuses, I I they kind of read my mind. And if you go to great leaders that ruled great empires, right? If you look at somebody like Napoleon Bonapart who you know will Durant the wisest man probably ever to live in the modern world said that the French Revolution is essentially the most important moment in human history because it introduced democracy instead of rule by royalty or rule by thiefts and so on and so forth. So you know Napoleon Bonapart was a child of the French Revolution and he changed the course of the modern world. He also was one of the people who helped usher in the French Revolution democracy democratic concept which the United States took in 1776. Okay. And he of course Napoleon spread his version of democracy across Europe where it still is. And he redefined boundaries and so he was a master of people and he had 28 field marshals. There's an autobiography. It's a very hard to find book. I found it. I posted it on my social. It's the autobiography of Napoleon. There's also a very famous, if you just type in Napoleon biography by I forget who the author is, but it's a very I'll look it up in a second, but one of the things I took away because he administered this humongous empire, which was, you know, at some point he even conquered Moscow to Paris all the way to Italy, you know, parts of Northern Africa and so on and so forth. And so, you know, how did he manage all those people? He said a couple things. He said number one I had 28 field marshals. This was like his sea suite right this is like his sea suite of geniuses okay seuite of genius had 28 field marshals uh his most famous field marshall when Napoleon was writing his autobiography he was you know exiled to this island he said this field marshall never failed to read my mind in 20 years. So think how beautiful of a life Napoleon was having. Kind of like you want to have in your little empire, your business. We all are small compared to Napoleon. I mean this empire you know there's more books written about Napoleon Bonapart than any other human more than Jesus more than Muhammad more than you know Adolf Hitler I think is number two or something like that. Anyway, so when we think about, you know, building a team to buy back your time so that you can hire great people, you're looking for that high IQ because mentalism mind readading slashing knowing what you want them to do without you having to say it is a big timesaver and energy saver in your life. If you have to spell out everything you want your team to do, you're going to burn out early, my friend. you ain't going to last as an entrepreneur for years. And you only make money if you last and you stick around as an entrepreneur. Nobody makes money statistically in their first couple years. So you you need to be optimizing for longevity. So you got to hire for IQ cognitive in the ops department. You know, one of the best guys who ever worked for me, he was a 90. He scored 98 out of 100. He was a intern. He became a medical doctor. I always wish he's actually related to me. He's one of my cousins. And I and I was tempted to be selfish and be like, "Forget being a doctor. Come work with me forever." But in that one summer, I he steps just me and him. He read my mind. He had great ideas for how to name them, how to reorder them. I just he he took something that would have taken a hundred of my hours of mine, you know, thinking a 100 hours and it took zero. He did he just took all 100 hours. Of course, I had to think through some stuff, but man, if you can hire people that score the upper 90s in a cognitive quiz, it's such a gamecher. You're literally going to be angry that all the other social media business gurus you follow never told you this. You're going to be angry like, "How come Todd Lopez is the first one ever told me this? This is ridiculous. How come business school didn't tell me?" And by the way, it's very common sense, right? Right. It people with high IQ aren't better than people with lower IQ. just means they compute things faster. Especially things that are related to money, which is a game of numbers. Especially things that are related to computer programming, which is basically numbers. Especially when it comes to things like marketing, which is essentially crunching numbers to know which split test is winning, right? So IQ is is just so important. I could spend this entire podcast and still not cover it enough on the importance of IQ. And and know IQ's become one of these things that a lot of people just you know humans talk bad about it like IQ doesn't matter. Well it depends on for what for happiness. Yeah lower IQ makes you happier. I mean the happiest people on earth are for sure the people who have under 100 IQ. So it all depends what you want out of life. If you're listening to this episode of the Tai Lopez Show podcast, I'm assuming you know this episode's about growing your business by having better people around you, by hiring a better team, staff, employees. Okay? And so if that's the game, then you cannot dismiss IQ as one of the most correlated and possibly positive factors in high performance for you. I'm talking one IQ per but think of it this way. If you're working 12 hours a day now to make money, for sure every high IQ person you surround yourself with will knock one of those hours off. So if you can find four people over a 90 on an objective cognitive quiz, you probably took your workload down per day from 12 hours to 8 hours. Okay? If you, you know, can get 10 people of extremely high IQ, you might take your workload down and just be working like Tim Ferrris 4hour work week. Okay, it's a big deal. If you only remember one thing from this damn podcast, please remember this one thing. Please remember this one thing. You don't need your Now, there's other things we're going to cover, but this is probably the singular most important thought and concept of today's broadcast. Now, I I might not I'm not going to beat this dead horse necessarily anymore. Um, so what I'll move on to is what other quizzes I like. So other quizzes I like would be a world view quiz or an a occupational quiz. So I have a quiz on 12 types. Enterprise will be there soon. But I have a career quiz. It basically says which department, which division in a company you would work best in. Are you best in marketing? Are you best in sales? are you best in accounting? So, I think a quiz like that, um, that's why I've developed that will really help you because sometimes people you're going to be recruiting for marketing and you're going to get somebody, let's say, that's lower on cognitive, but they score very high on potential sales skills, high EQ, high social skills. And so, sometimes when people apply to a job, I'll be like, you know what, I'm not going to hire you at that job, but I'll hire you at this other one. So I think another good quiz is a career type quiz. Which type of employee or staff member should you be? Should you be a leader, a manager should you be? So my quiz at 12 types, the career quiz, uh you could you could use it a little bit. I'll soon have the enterprise version. It's not going to be very expensive and you can use it and have every it'll display everybody's results in the back end. Right now it just displays to the person taking it. So it's not really good for hiring. Maybe by the time some of you are listening to replays months from now, you'll re you'll be using the enterprise version of 12types.com. So the other quiz, the third quiz that I like is a worldview quiz. In that quiz, I asked some things related to honesty, work ethic, organizational skills, um you know, cynicism, skepticism, and you're you're weeding out people that there's no right answers on those. But if for example you have a highly jolly company, everybody has fun and you wouldn't necessarily on a worldview quiz want to hire somebody whose score is extremely ruthless. One of my worldview quizzes on 12 types, it it gives people a ruthlessness score, right? So if you're now if you're trying to build, you know, military, if you're a Marine recruiter, you may and you're hiring Navy Seals, you probably want ruthlessness. You know what I mean? You probably want ruthless. I would want ruthlessness. But if I'm I have a home business, you know, a family business and I'm just hiring two or three people and it's a jolly business and we all enjoy the day and we want to make money but we're not totally money driven. I'm not sure I would want a you know high ruthlessness worldview person. So the three quizzes I like are the cognitive, the career type, and the overall world view. And those are the three that I optimize for. Uh, and I most people who have ever worked for me have taken all three of those quizzes. As I said, for salespeople, I sometimes skip the cognitive. I still like to do it because if someone scores too low on cognitive, sometimes it means they don't speak your language. They don't, they might be smart, but they don't speak English. So, I don't, but usually that will be last for sales. I'll start out with the, you know, career type quiz to make sure they actually have the personality that would be good in phone sales or in-person sales. And then I also add in uh the worldview quiz to make sure I understand their perspective on life overall. Are they honest? Are they ruthless? You know, are they high energy? Are they high conscientiousness? Their extraversion factors, things like that. Uh their agreeableness, their flexibility, you know, their learning curve, speed. And then lastly for salespeople, I'll do that, you know, do that cognitive quiz. So I recommend you keep this on file with people. Make sure you do it in a compliant way, but I recommend you keep this on file because if you keep this on file, guess what? You can refer back to it over time. You'll be like, "Oh man, I've been hiring people that are too high in this or too high in that." And you can start adjusting your patterns by looking at what scores end up doing the best for your company. You got to think like a scientist if you want to make a lot of money. You got to think like a scientist if you want to make a lot of money, right? You got to think like a scientist if you want to make a lot of money. That's my recommendation to you. Okay? So, what I'm trying to do in this world all day long is cut my learning curve. And if you're hiring people in a horrific way, like most people are doing, right? Doing lots of interviews, uh, you know, most people aren't good being frustrated. like these quizzes are going to take your workload down by 80%. Now, let's talk about the next thing. So, number one is kind of finding people and the initial screening. Number two, onboarding. So, if you want to build an insanely good team so that you could buy back your time as a business owner, not work all the time, replace yourself. Okay? Then number two, you got to have the right onboarding because your hiring process can be perfect. you're still accidentally going to hire the wrong person. So, how you onboard them? And I consider the onboarding period from day one to day 67. I consider onboarding from day one to day 67. Why 67? Because my 67 steps is built around the science that uh people take about 67 days to change habits. So, within 67 days, you can kind of see if they adapt enough to your business, right? Uh now that sometimes I fire people in the first week because it's so obvious they're not a fit. But in general I give people, you know, 14 to 67 days unless they're obvious horrific. If they're good, I still let it go 67 days before I take them and truly consider them part of the company. So I kind of say like, "Okay, we're hiring you." Depending if they're an independent contractor or a W2 full-time, I'm like, "Okay, we're hiring you, but let's be clear. I I really this is kind of an evaluation period. I'm watching you, okay, for these 67 days. So do do good. Perform, my friend. Perform perform. So in those 67 days, what am I looking for? Well, number one, and this is very important, a hire for every position at least three people at a time. So if I'm trying to hire an executive assistant, I hire three. I tell them I'm hiring three people part-time. I'm trying to see who's the best. I just tell people. I'm just transparent. If I'm trying to hire a maid, I I I'm like, let's say I use a maid agency to send me maids. I'm like, send one on Monday, one on Tuesday, one on Wednesday. Keep alternating. Then send the the Monday one back on Thursday and Friday. Give me 67 days. Now, this is called a work sample. So, stage one is the hiring and the filtering and the screening. Two is sampling their work. And in that book work rules one of the key principles here that laz is one of the most causitive or we should say correlated attribute of somebody who becomes an amazing part of your team is someone who in the demonstration early phases they really showed they didn't show that they had a college degree. We all know people with college degrees can be idiots, okay? They actually, if I'm hiring somebody to for my roofing company day one, we're like, "Hey, can you get up here on the roof with us and put on a roof?" If they can't perform on that first day, you've saved yourself a lot of time. You didn't need to do a lot of interviews. If you're hiring a, you know, if you're hiring somebody who is a marketer for your company, you're like, "Good. I'm throwing you right in. Hey, here's here's log into my meta account. What would you change?" So, I really like to onboard people in the first 67 days. I call it throwing them into the fire, right? That is not literal, obviously. It essentially means I'm just putting you right in the middle of things. I'm not starting you out slow. If I hire you for marketing, I'm not training you that much on day one. I'm just saying what happens if I just stick you right into my marketing company and ask you to perform on day one. This is the second most important thing in this entire podcast is knowing how to do the work sample evaluation phase because in general one out of three maximum more likely one out of 12 will actually make the cut in the long run. Okay? In general you're going to be at a 1 to2 ratio my friend. 1 to 12. Why is that? Because just people lie on their resumes. People overexaggerate. Okay, people overexaggerate like them. It just it's just a it's in many ways it's a horrible thing that people do. Okay, I don't love it, but people do it, my friend. They exaggerate. Okay, and so because I know that humans exaggerate, I know that my ratio at best is one to three people that I hire actually make it past the 67-day evaluation period. more likely uh I would say it takes you know roughly uh 12 people if you really on a one I always use a 1 to 10 scale but you can't use seven five is average six is good four is below average uh one is the worst 10 is is perfect nine is shockingly good eight is amazing and there is no seven 1 to 10 no seven then you know it's uh amazing when you find eight nines or tens but they're not just out there in abundance So, you're going to have to get good at kissing a lot of frogs, as they say. You're going to have to get good at filtering down. It's kind of like if you wanted a wife, you would probably go on 12 dates with 12 different women before you chose the one that matched you the best. You know, you looking for a spouse, you you better not just go on your first Tinder date and go, "All right, you're good enough." And that's, believe it or not, what 99% of entrepreneurs do. And then they can't figure out why they're frustrated. I'm like, "Well, I know why you're frustrated. You just married the first frog that came along. what are you doing? Like what are you doing, man? Have some pickiness to your life. Have some pickiness for the love of God and just it's you know why I think entrepreneurs perceive hiring multiple people at once as really hard. But it's not hard if you just throw them to the fire. So if I hire, you know, three marketing people, I don't do one hour training with each one on day one. I'm just like, "Yep, here's our marketing Slack huddle. Here's our daily all hand Zoom call. Just get on in here and uh add value." So, the cool thing about the first 67 days is I would not invest that much into hiring and and training these people, right? I I would invest a little, but I you want to reserve and we'll talk about that in part three. You want to reserve part three is how to train, nurture, and retain amazing people. But we're still in stage two, which is like onboarding and still going through evaluation stage. So when I'm going through that onboarding evaluation, I'm not investing too much in anybody. Very, very, very little. Okay? I recommend you do very, very little. Not none, but not much. 5% of the total training you'll ever do on an employee should happen in the first 67 days. Now, you can give them some SOPs. You can give them some manual, but you're looking for people who can read your mind and just figure things out. Remember the the goal of this podcast is getting amazing people. I'm if you want to hire good people, you can ignore this whole podcast. But I I'm looking for people that are willing to put in extra effort, extra brain power into hiring people that on the 1 to 10 scale are an 8 n or a 10 because that's all that matters for you having an amazing life as an entrepreneur, business owner, for you having an amazing life making money. It just comes down to do you have a lot of eights, nines, and tens around you? And you got to really go through the whole company like is this person an 8 n or a 10 or do they have the potential to quickly become an 8 n or a 10 and you got to be kind of ruthless and uh you know making money is a little bit like war. You got to make some tough calls sometimes and you got to cut like I got to cut this person. But you know what? You owe it to the overall team to have high standards. Because if you have low standards, you also are torturing yourself and everybody else who works for you is tortured because they got to interact with this ding-dong that you've kept in the company. So, so, okay. So, I'm hiring 3 to 12 people. Like, I just hired salespeople. I hired 40 at a time. 40 in one batch in a week or two. And I just threw them to the fire. And there's a woman, Rachel. She just started getting sales on her own. Didn't give any of the 40 that much training. We gave some we give 20 minutes a day or so and we gave them scripts and we gave them and they got to participate and observe with the more senior salespeople. But out of 40 8020 rule, I bet you 20% will be exceptional or shockingly good or perfect. 20%. So what does that mean? That means out of you know 40 people to hire, if I can just find eight amazing people, I think I've won at the game. I think I'm a winner at the game. So, I really want to encourage you to be okay with hiring a lot of people at once in batches because that will also make you less desperate. I found people some people go, "No, I'm just going to hire one at a time and if they're not good, I'll fire them and I'll hire another person." This is the worst way. This is a way I would curse my enemies to do because your brain works off contrast. They call it the contrast cognitive bias. And so if if you only have if you hire one computer programmer, no matter how smart you think you are, you don't have a baseline really to compare. And if you hire three at the same time, you're like, "Wait a second. I gave these just a little bit of training. How come this person knows how to do so much more than the other two?" So this is based a little bit, my system is based off what Dr. David Bus calls the CVS formula of biology. Uh Citriteria, Variance, S selection. So the way mother nature, God, the universe works biologically, especially on Earth is a CVS selection period. So the universe has criteria, right? If it's a fish, it's like this fish needs to be able to breathe under water, needs to be able to find shelter, food, shelter, water, needs to be able to reproduce. Then there's variance. What does that mean? Well, when you have a lot of fish in the ocean, some of them suck. They get eaten right away. They're not good at hiding from predators. They're not good at reproducing. They're not healthy enough. So you get variance. That means you have to have more than one fish, right? So when you're hiring one at a time, it's like having one fish. And then S comes naturally. It'll be obvious who's selected. In biology, it's the survival of the fittest and the strongest and the most adaptable. In the modern world, it's kind of you'll be like, "Wait a second, this person's so much better than everybody else. I'm going to let the other two go." Which leads us to step number three of building a team to replace yourself, an exceptional, shocking or perfect team full of high performers. What Steve Jobs called A players. He said, Steve Jobs said that was his secret. He said, "I only worked with A players. If you weren't a player, he got rid of you real quick." And so here's what he said. Oh, or here is how I interpret that for stage three. Once you they've made it through the evaluation period, you didn't put that much energy and one-on-one into them. You didn't give them you didn't make it that easy for them. You didn't purposely try to make it hard, but you didn't, you know, bend over backwards and they made the cut. Like when I hired these 40 people in about two weeks, I'll pair this back to eight the best eight or 10. And so now the game changes. There's really three phases to this game. We talked about phase one, talked about phase two, and now we're talking about phase three. This is where you nurture, train to retain. So, I'm not going to compensation is a whole another podcast I'll do. So, I'm not going to go insane on talking about compensation right now. But what I will say is, you know, essentially to retain, you got to train. You do at some point have to put extra time into the outliers. And so, just for example, I'm flying I'm driving back now. Well, I have a driver, but I'm driving back from Pal Springs. I did a business retreat. I bought brought two of my highest performing phone sales closers, high ticket phone closers. I brought them with me. Why? Because I'm spending extra time. I'm putting time in. I'm I'm, you know, we went to the movies. We went out to eat. We went to the gym together. I'm nurturing. You got to do that. And some people hire good people and then they forget that important stage and so they lose them. I have a crazy low rate of ever losing anybody. Like people stay with me for a long time. People stay with me for a long time. I have almost a zero loss rate of people that I want to boost. Not literally, but I mean so low it's mind-blowing. So low it's mind-blowing. Okay. So what do I what do I do? I I attribute a lot of it to the people who make the evaluation cut. Okay? They make the cut. They make it past that 67 days. I start to go slowly but surely above and beyond. Now, what I do, number one thing that I do is I do a daily call that I show up. I do it six days a week. Now, do you have to do that exact thing? No. I'm just telling you what I do. I got that from Sam Walton. He said to build Walmart, he had to do six times a day. I mean, six times a week. So, you know, for me, I'm like, "Okay, I will do six times a week." So, I show up on, let's say, five of them. I show up on five of them is what I would say. I'm not on all seven. Uh, all six, but I'm investing. I'm in there. I'm training. I'm talking. I also invest in Slack. I pay more attention. I I answer. I leave voice memos. I leave videos. I bring them on trips, you know, I get in person with them. I get in person with them. That to me is they it's a feeling. Remember, all humans are driven primarily by illogical causes. The more logical somebody thinks they are, the more illogical I know they really are. Because it's just obvious from looking at humanity that humans are driven by emotions more than the medium prefrontal cortex, which is a teeny part of your brain. The majority of your brain is driven by your amygdala and your cerebellum and your medulla and all these more primitive sections of the brain that pretty much are reactionary, right? We say somebody's emotional when they're reactionary. They kind of just react, right? Logical people are cold and calculated. And so the reason that, you know, I I'm sometimes surprised by entrepreneurs, it's like they're forgetting on the emotional side. If you liked a girl or a guy that you were dating, what would you do? You invest time, pay attention to them, you do some trips together, you do some extracurricular stuff outside of work, you go to a movie together, you know, you go golfing together, whatever. So you you you if you don't do that, humans are emotional enough that somebody else will. Just like if you're dating somebody beautiful and you don't give them any attention, somebody else will, my friend. Like make no mistake, somebody else will. That that's a given. You don't have to you don't have to think about it. Somebody else will. That's um telling my driver to go slow. Okay. So, um I'm a big fan of kind of, you know, being kind of tough in the first 67 days and then now that doesn't mean I'm not tough and disciplined over time, but I I vary it up more. I got a lot more forgiveness in the system, right? I got a lot more forgiveness in the system after they pass at 67 days and then people work for me for 5 years, 10 years. I continue to give them points, so to speak, in my head, like a little more lenient on them. Okay, that guy don't want to come on the daily caller. Okay, I'm going to be a little more lenient. You you have to have a reciprocal system. They call this literally the reciprocal bias or the reciprocal altruism bias of humans. Dr. Robert Triivers is one of the pioneers, one of my mentors from Harbor. And and you know, reciprocal altruism is kind of this concept that tit fortat. Somebody does something nice for you, you should reciprocate back. Someone does something mean to you, you should do something mean. Or reciprocal altruism is essentially just the nice side of things, right? The nice side of things. So, how can you be nicer to people who are nice to you? Now, we're not talking about literal niceness. We're talking about people who add value to your life and their company. Don't just think you should reward with money. You should reward with money. If you look, there's a great there's a there's an author named Steven Pink. He's one of the he's one of the number one experts. Uh yeah, he's one of the number one experts on he wrote a book called Drive. He kind of understands the science of what motivates humans from a drive standpoint. Okay. And what's interesting is that so what's interesting is that hold on one second here. He finds that humans are not 100% driven by money. What I would add to that cuz I think that's slightly oversimplistic. When I do my worldview quiz, we find out how moneydriven people are. And there's wide variance. I have people working for me that are, you know, on a 1 to 10 scale, they're 20, they're two out of 10 motivated by money. even have other people that are an eight. So some of that science that I've read, not that I want to disrespect a great scientist like Daniel Pink, but the real truth is there is variance in the human personality. So I would never say something so broad that oh humans are are are motivated by money or humans aren't. I mean we all know people in life that are not that motivated by money. And we all know somebody who's crazy motivated by money. They would sell their own family for enough money. And we know other people that are hippies that are just la. So you have to be this is chess. Making a lot of money is chess, not checkers. And most people try to oversimplify making money into into checkers. And and it's not. And so the real truth is you have to be thinking, okay, I'm dealing with Bob. I'm dealing with Susie. Let me go back. Let me look at their four motivations quiz they did on 12 types. Let me understand their motivations. Okay, this person is really motivated by material things. or this person is really motivated by status. Some people best motivation is a is a title change. There's some people out there at least 25% of earth primary motivation is having a cool title, right? At least 25% of people are literally motivated by material things. They want to have Gucci, Louis Vuitton, and diamond rings on their hands. You know what I mean? And then you got 25% of people that are really motivated by freedom kind of, you know, intangible purpose. you know, like they feel free to pursue their goals. And that person could be motivated by having time off. They're going to be motivated by what your business does. A lot of times people motivated by freedom are, you know, very motivated by working for a company that has a purpose. And then, of course, you have the motivations. Some of four M's, one of them is matey. Some are very, they're just working because they want to they love their family and they want to put food on the table. They're family motivated, you know. And so never oversimplify motivation. But what I would say is the universal 100 people 100% 100 out of 100 people are motivated by people paying attention to them, investing resources into them. So that's why I say like this trip to Palm Springs is very powerful in retaining good stat. Didn't cost me that much. I didn't have to get them fancy rooms or anything. just a nice little, you know, m regular little bit above average hotel with golf course and just spend four days there with some of my key players. And guess what? It really matters. It really matters. It really matters. Like I notice the odds of me retaining these people is 10 times higher. 10 times higher because I put that energy into them because I put because the one thing I know for sure is humans are motivated by people who pay attention to them. Um, so what I know is that everybody is motivated by being invested in them. This is the one universal for all personality types. Now once again, if they're introverted, they might not be as motivated by you talking to them. Maybe just it's kind of like the five love languages in relationships. Words of affection, quality time, gifts, uh what's the other way? Uh act I think acts of service is one. I forget the five right now. Oh, physical touch. Don't do the physical touch one with it, boys. But um you can tell one thing we know is the human organism. We're a biological creature and creatures that have more resources invested live longer, survive, reproduce. So it's it's in our innate DNA to be to like people who invest in us who have that that's what this concept of reciprocal altruism is. So we know for sure people are likely to not stay at a company where they feel like nobody notices them, where we feel like nobody calls out their good or their bad. By the way, I think humans respond when you call out their BS, too. I It's funny. I had a guy who was we did a a business together and he was like, "Man, Ty, I don't understand." He's like, "You're tough with some of your employees and they never quit." And I'm like, "That's because me being tough with them and honest and fair, but tough. It actually builds loyalty because that's investing in people." I'll tell you this. If you raise kids and you let your kids be spoiled and do whatever they want, they won't love you more for that. Oh, no, they won't. One day, they'll be mad at you and they'll disrespect you and love you less. So, in the same way, humans want to have people who invest both in correcting constructive criticism and who invest in, you know, positive. So, I think you got to have a carrot and a stick to you know. Now, like I said, compensation plans is really I need to do a separate podcast on it. It's it's a really long conversation, but so I wanted to just hit on the three foundations, the three critical phases that you must go through. And by the way, don't be skipping any of these phases. Don't go, I don't need to use the quizzes. Oh, I don't need to tie 67day evaluation. Don't try to take shortcuts, my friend. Like the Amish say, a fence that goes up fast falls down fast. But a fence that's built slowly will last a generation. Barn that's built fast falls down fast. I worked on an Amish farm and they had a barn. It was so well built from the 1800s. When they wanted to take it down, they had to uh use put a stick of dynamite in a in a bucket and hang it from the middle of the barn. Just a small not a full stick, a small amount of dynamite. And it it you know the air compression loosened all the boards cuz it was built so well in the 1800s they used to use old techniques like you know tongue and groove more mortise and tenon that the building actually got stronger with time not weaker. The modern barns that are get built the modern stick houses you know that are just put up with 2x quick 2x4s and these houses blow down in a hurricane. Some of these old barns can they've literally stood the test of time or 100 to 200 years. When you build your company, you don't want a lot of turnover on the good people, right? So you you you if you do my one, two, threephase system, this is going to change your life. I mean, you you will come to me one day. We'll meet on the street. We'll meet at a conference. We'll meet on a live call. And you'll be like, "De number one thing that changed my life with those three phases of hiring and me not at all skipping even one phase. Don't skip a phase, my friend. Don't be looking for shortcuts. No shortcuts in this game." And here's the cool thing. These three phases can be done with very low stress. They're not very stressful. They're actually pretty low stress phases. What I'll tell you what's stressful. hiring one at a ton, having no screening mechanisms like quizzes, just relying on an interview, then instantly investing in somebody and then they leave three months later, training them, put all your heart and soul into them in the first three months, then they're gone. These are the painful things. Doing my slow and steady methodical way is beautiful. It's painless relatively. I mean, I've been through that. I see people, you know, by the way, I have a private client program. Uh, if you're an entrepreneur doing more than 10 million, just go to tyloas.com/mpodcastcal and book a book a time to talk to my CEO on working with me privately. I have a one-on-one program. I have a couple different levels, but talk to them on my private client program. I personally mentor a lot of the people that you follow on social media have been my clients and I've helped them scale their business, replace themselves, hire the right people. So, it's it's a one-year program working with me. I've been doing it since 2013. Knock on wood, I've never had somebody ask for a refund. Um, you know, even though it cost, you know, $125,000 a year, it's a little over, it's about 10 grand a month. I I've never had uh a person never had somebody say, "Wait a second, this wasn't worth it." So, if for those of you who are, you know, if you got a $300,000 business, you're not ready for my private client. I can only take so many clients at a time. But I really encourage you to go to tylopiz.com/mpodcastcalendar and book a time with my CEO or my COO. They'll do a quick demo call to see if the private client is a good good idea for you. Like don't be afraid. You know the average person, the average entrepreneur is very cocky, doesn't make much money, not much profit. But if you look at the elite entrepreneurs, they have mentors, they have paid coaches, CEO coaches. It's funny people don't realize Zuckerberg Facebook he became a billionaire and after that he realized he still needed mentors and he went out and made Steve Jobs his mentor best mentor you could have he was humble enough so stay humble even if you're doing I always say the worst entrepreneurs are the 1 to 10 million guys cuz the smartest person in their family the smartest person at making money in their family uh and friend group but they're not really that good at making money I mean 1 to 10 million is nothing in the game of money right And and so if you're in that 1 to 10, don't get too cocky like most people. Don't get too cocky like most people. Don't get too cocky like most people. Stay humble. Realize yes, you can figure it out on your own, but pay somebody to cut one to 10 years off your learning curve in every area of the business, in marketing, in sales. I'm only looking I'm not looking for overnight success, but I am looking for shortcuts. And when I say shortcuts, I don't mean shortcuts like cutting corners, right? I want to be like the Amish and build a barn that lasts a hundred years. So, a shortcut would be hiring an Amish guy who's built barns that have lasted 50 years. That would be a shortcut, a good one. A bad shortcut would be using cheap lumber, cheap materials. But a quality shortcut is hiring somebody who's already been there and done it well hundreds or thousands of times. The the main game of entrepreneurship, it's won by people who really have smart mentors. I mean, Elon Musk had the PayPal mafia, 23 people. 23. He surrounded himself, gave him equity and PayPal. Peter Teal, two of them went on to start YouTube, one went on to start Yelp, one went on to start LinkedIn. Okay? So, um, stay in the game through humility. And remember, there's seven types of narcissism, and one of them's called self-sufficiency. Being overly self-sufficient is a sign of narcissism. It's funny for those of you for Americans to realize that self-sufficiency when it's too high is considered a clinical mental illness. So, if you're an entrepreneur, don't get too self-sufficient. Realize you eventually can figure out everything on your own, but you might be 250 years old. You might be too old to appreciate the money you made if it takes you too long to make money. Okay, so I'm going to sign off now. I hope you got value. I hope you've gone to tylop.com/mpodcast calendar. If you're an advanced entrepreneur, if you are not doing 10 million or more, I recommend you go to tyloopas.com and click on the 18 strategies button. There's a menu. click on the menu and then find 18 strategies and and um sign up for that system. That is a system for those of you on how to scale. I cover a lot of this and I cover other important areas besides just building a team. Until then, I will see you. We're releasing on I release video vlogs Monday, Wednesday, Friday on YouTube and Facebook and Instagram. I release audio podcasts on Tuesday, Thursday, and Saturday. So, I got something for you six days a week. Subscribe. By the way, if you engage here, leave a review or if depending on where you're watching this, you know, like this, engage, follow. But not just because I want more followers, but because the algorithm will then show you my content or often because we all know these algorithms out here hiding stuff. So, if you're really enjoying my stuff, engage, forward this to a friend that needs to hear this. talks him.