Billionaire REVEALS The Key Habits That Will CHANGE Your Life! | John Paul Dejoria

The Journey from Homelessness to Billionaire

Introduction to John Paul DeJoria

• Tom Bilyeu introduces the show, emphasizing the importance of executing dreams and human potential.

• Today's guest is John Paul DeJoria, a self-made multibillionaire with a rags-to-riches story, born to immigrant parents in East L.A.

• DeJoria faced significant hardships, including homelessness and selling newspapers at a young age to support his family.

Key Life Events

• After various struggles, he co-founded Paul Mitchell Systems with a hairstylist named Paul, which became a global success despite initial setbacks.

• He later co-founded Patron Tequila, achieving remarkable entrepreneurial success while maintaining employee-centric values.

Defining the American Dream

• Bilyeu asks DeJoria about his definition of the American dream; he describes it as pursuing opportunities without limitations.

• DeJoria reflects on his childhood experiences of working joyfully from an early age and contributing financially to his family.

Lessons on Rejection and Resilience

• He shares insights on handling rejection: being prepared for it helps maintain enthusiasm regardless of setbacks.

• Emphasizes that persistence is crucial; one must remain enthusiastic even after facing numerous rejections in business or personal life.

Teaching Resilience to Future Generations

• Bilyeu questions whether these lessons can be taught; DeJoria affirms their importance and mentions imparting them to his children.

• He stresses that understanding rejection prepares individuals for life's challenges and encourages resilience in entrepreneurship.

Quality Over Quantity in Business

How to Build a Product That People Want to Reorder

The Importance of Quality in Business

• Emphasizes the necessity of communicating your idea effectively, ensuring that the quality of the product is so high that customers want to reorder or recommend it.

• Highlights the concept of being in the "reorder business," suggesting that success comes from creating products or services that people will repeatedly seek out.

• John Paul DeJoria reflects on his experience with Paul Mitchell, asserting that their product's quality was key to gaining customer loyalty and repeat business.

Overcoming Sales Challenges

• Discusses the challenges faced as an encyclopedia salesman, noting that most salespeople quit quickly due to rejection and difficulty in making sales.

• Describes how persistence and learning from experiences helped him improve his sales techniques over time, leading to greater success.

• Shares insights on believing in the value of what you are selling, which can enhance confidence and effectiveness during sales pitches.

Techniques for Effective Selling

• Stresses the importance of eye contact during interactions, explaining how looking someone in the eye can build trust and connection.

• Suggests practical tips for overcoming discomfort when making eye contact, such as focusing on their eyebrows instead.

• Advocates for smiling before engaging with potential customers as a way to create a positive atmosphere and influence interactions positively.

The Value of Door-to-Door Sales Experience

• Reflects on how door-to-door sales sharpened his skills and prepared him for future business challenges by teaching resilience and adaptability.

• Tom Bilyeu agrees on the profound impact this experience has on personal development, emphasizing handling rejection as a critical skill.

Learning Through Experience

• Discusses how real-world experiences often provide valuable lessons that cannot be learned through traditional education or easy paths.

• Acknowledges that many people desire quick solutions but emphasizes that enduring tough situations builds character and skills necessary for success.

Overcoming Adversity: Lessons from John Paul DeJoria

The Importance of Persistence

• John Paul DeJoria emphasizes the need to do what unsuccessful people avoid, highlighting a proactive approach to challenges.

• He shares a motivational phrase, "When the going's tough, the tough get going," illustrating his mindset during difficult times.

• Reflecting on personal struggles, he describes hitting rock bottom when his wife left him and financial stability was lost.

Navigating Financial Hardship

• After losing financial support, John faced immediate challenges like unpaid rent and bills, leading to eviction within days.

• Despite feeling ashamed about his situation, he collected soda bottles for cash as a means of survival while maintaining pride.

Building Towards Stability

• John discusses how he kept pushing forward despite being in survival mode due to the responsibility of caring for his young son.

• He utilized free nursery services for his child while seeking employment to ensure their basic needs were met.

Strategic Planning and Learning from Failure

• His initial focus was on survival; however, he gradually began planning for future goals such as securing a job and an apartment.

• Each job loss taught him valuable lessons that contributed to his eventual success in the beauty industry.

Embracing Rejection and Seizing Opportunities

• John reflects on how experiences with rejection shaped his resilience and prepared him for future endeavors.

• He recounts needing half a million dollars to start John Paul Mitchell Systems but faced setbacks when their backer withdrew last minute.

The Journey of Paul Mitchell: Values and Business Principles

The Impact of Investor Decisions

• John Paul D. reflects on the initial investment structure, noting that they each had 30%, which positioned them to potentially own the company if an investor held 40%.

• Tom Bilyeu questions whether John has spoken to the investor who pulled out, suggesting that this individual might regret missing such a significant opportunity.

Overcoming Necessity in Business

• John emphasizes that necessity drove their success, contrasting it with how many people falter under pressure.

• He discusses essential business principles, highlighting the importance of psychology and finding solutions during challenging times.

Building a Brand with Integrity

• John shares how they maintained integrity by committing to only sell Paul Mitchell products in salons, avoiding drugstores or supermarkets.

• He stresses that any Paul Mitchell product found outside salons is either counterfeit or from the black market, reinforcing their brand's exclusivity.

Commitment to Quality and Ethics

• The demand for Paul Mitchell products exceeds supply due to their quality; customers are willing to pay full retail prices at salons.

• John notes that his first three products remain best-sellers after nearly 37 years, emphasizing the importance of maintaining high-quality standards.

Internal Values and Employee Treatment

• Tom asks about when John's strong internal values began shaping company policies. John recounts negative experiences from previous jobs influencing his approach.

• He implemented employee benefits like free lunches and profit-sharing as soon as financially feasible, aiming to treat employees well based on his past experiences.

Low Turnover Rates Through Care

• Tom inquires about how John's golden rule approach contributes to low turnover rates. John believes treating employees well directly impacts customer satisfaction.

Do You Want to Go to America?

The Importance of Employee Care and Inclusion

• John Paul DeJoria shares his experience asking employees if they want to move to America, highlighting their satisfaction with the current work environment due to good pay and free meals.

• Tom Bilyeu inquires about how DeJoria maintains a warm company culture even when he is not present, emphasizing the need for systematic approaches.

• DeJoria explains that all Paul Mitchell Schools must engage in the company's culture, which includes community service and understanding core principles.

Cultivating Corporate Culture

• Mara Gourdine serves as the ambassador of corporate culture, ensuring all employees are reminded of their values and new hires undergo cultural indoctrination.

• The company engages in various charitable activities globally, fostering a sense of belonging among employees by involving them in significant causes.

Communication and Feedback Practices

• Employees can directly reach out to DeJoria or co-founders for support, reinforcing an open communication channel within the organization.

• DeJoria advises against public reprimands; instead, feedback should be given privately. In contrast, praise should be public to boost morale.

Evaluating Company Fit as an Employee

• Bilyeu asks how potential employees can assess whether a company aligns with their values during interviews.

• DeJoria suggests candidates reflect on what excites them about work and seek environments that foster that enthusiasm.

Tips for Job Interviews

• Candidates should inquire about workplace happiness by speaking with current employees during interviews for genuine insights into company culture.

Philanthropy and Personal Growth

The Genesis of Philanthropic Thought

• Tom Bilyeu inquires about the origins of John Paul D.'s philanthropic mindset, suggesting it may have evolved from initial business struggles.

• John Paul D. recounts a formative experience at age six when his mother encouraged him and his brother to donate a dime to The Salvation Army, instilling early values of giving.

• He reflects on the significance of that dime, emphasizing how even small contributions can make a difference, especially when one is aware of those less fortunate.

• His mother’s lesson emphasized the importance of helping others regardless of one's financial situation, advocating for volunteering if monetary donations aren't possible.

• This early lesson became foundational in shaping his approach to philanthropy throughout his life.

Impactful Experiences in Philanthropy

• John Paul D. shares an emotionally significant moment from his first trip to Africa where he met orphans affected by AIDS, highlighting their dire circumstances.

• During a photo shoot with these children, he recalls meeting a boy who had been rescued from a trash can just before their encounter, illustrating extreme poverty and neglect.

• The transformation witnessed as this boy drank soda and smiled during the shoot was profoundly moving for John Paul D., evoking tears and joy.

• He emphasizes that true fulfillment comes from selfless acts without expecting anything in return; such experiences provide unparalleled emotional highs compared to any substance use.

• Tom Bilyeu prompts further discussion about Grow Appalachia, which embodies the philosophy of teaching self-sufficiency rather than providing handouts.

Grow Appalachia: Empowering Communities

• John Paul D. explains that Grow Appalachia began around 2010 as a response to food insecurity affecting many families reliant on food stamps.

• Collaborating with Berea College, he funded initiatives aimed at teaching communities how to grow their own food through irrigation and seed provision.

• The program initially focused on personal vegetable gardens but evolved into teaching participants how to sell excess produce locally for income generation.

• As the initiative progressed, they introduced chickens for eggs and bees for honey production, leading many families towards self-sufficiency and entrepreneurship.

• Today, approximately 35,000 individuals benefit from their own gardens due to this initiative's success.

Call to Action: Community Involvement

• John Paul D. stresses that real change must come from individuals taking action rather than waiting for government intervention; community involvement is crucial for progress.

• He notes an increasing number of people are actively working towards positive change globally; engagement is essential for making impactful differences in society.

The 1% and the 99%: A Discussion on Wealth and Responsibility

The Perspective of Wealth Distribution

• The speaker identifies as both part of the 1% and the 99%, emphasizing a collective identity among wealthy individuals.

• They argue that achieving wealth is part of the American dream, which includes giving back to society.

• The speaker highlights that many billionaires, including themselves, have pledged to donate at least 50% of their wealth during their lifetime or after death for societal betterment.

Philanthropy Among Billionaires

• Notable figures like Bill Gates and Warren Buffett are mentioned as examples of billionaires who contribute significantly to charitable causes.

• The discussion suggests that the contributions from these wealthy individuals often surpass governmental efforts in aiding those in need.

Encouraging Meaningful Contributions

Identifying Personal Causes

• When advising successful friends on philanthropy, the speaker emphasizes identifying personal passions or issues they wish to address.

• They advocate for applying entrepreneurial principles to non-profits, suggesting that financial acumen can enhance effectiveness in charitable endeavors.

Improving Charitable Organizations

• Business-minded individuals should assist charities by improving management practices akin to for-profit businesses.

• Strategies include effective marketing of causes and creative fundraising methods within budget constraints.

Teaching Values to Children

Key Lessons for Success

• The speaker shares three important lessons taught to their children: prepare for rejection, ensure high-quality work, and understand that success unshared is failure.

Instilling Work Ethic

• Their children were not spoiled; instead, they learned the value of money through modest allowances tied to age.

Real-world Experience

• Children were encouraged to gain real-world experience through jobs or involvement in family business activities.

The Four Ps: Principles for Success

Core Principles Outlined

• The four Ps discussed are profit, people, positivity, and helping the planet.

How to Cultivate a Positive Mindset and Succeed in Business

The Importance of Positivity

• John Paul D. emphasizes that positive individuals tend to navigate life more effectively, as they focus on both good and bad experiences, leading to faster personal growth.

• He warns against gossiping, highlighting that sharing unverified information can lead to misunderstandings and damage relationships.

• Encouraging a positive outlook is crucial for happiness; negativity can lead to dissatisfaction with life and work, potentially shortening one's lifespan.

• John Paul D. suggests surrounding oneself with positive people and actively seeking solutions rather than complaining about problems.

• He shares his personal experience of finding positivity even during tough times by looking for practical solutions, like recycling bottles for cash.

Strategies for Success in a Crowded Market

• Tom Bilyeu questions how one can create space in an oversaturated business environment where many ideas seem exhausted.

• John Paul D. explains the importance of identifying gaps within existing industries as a strategy for entering competitive markets.

• He provides an example from his company ROK Mobile, which offers comprehensive services at an affordable price point by addressing consumer needs overlooked by larger companies.

• ROK Mobile's unique offerings include unlimited calls to the U.S. and Mexico, international minutes, music streaming, telemedicine services, and accidental life insurance—all bundled at $49 per month.

• By collaborating with major music labels and understanding industry churn rates, ROK was able to position itself favorably against established competitors.

Community Impact Through Business

• John Paul D. discusses using profits from ROK Mobile to support community initiatives aimed at helping youth in underserved areas like East L.A. and Harlem.

• The initiative includes providing allowances through their service model—$5 monthly for each user—which encourages financial literacy among children while promoting the service itself.

Cold Sore Treatment and Business Philosophy

Innovative Cold Sore Solution

• Approximately 3.7 billion people are infected with the cold sore virus, affecting two out of every three individuals.

• A plant-based gel developed in collaboration with Native American universities has shown effectiveness in treating cold sores, often preventing them from surfacing when applied at the first sign of a tingle.

• The product, named Aubio, is available for under $30 and has been positively received by users who report visible results within two days.

• Aubio is distributed through major retailers like Target and Rite Aid without traditional advertising; its success relies on word-of-mouth endorsements from satisfied customers.

Disruption in Traditional Industries

• Tom Bilyeu emphasizes the importance of disrupting established industries by introducing modern solutions that address current consumer needs.

• John Paul D. shares his perspective on identifying niches where innovation can lead to better products or services while also benefiting the environment.

Philanthropy and Personal Impact

• John Paul D. does not maintain a personal website but encourages people to explore his philanthropic efforts through various organizations he supports, including JP's Peace, Love & Happiness Family Foundation.

• He expresses a desire to leave a positive impact on the world during his lifetime, emphasizing the importance of contributing meaningfully to society.

Business Ethics and Values

• Tom Bilyeu highlights John Paul D.'s commitment to ethical business practices, noting how he prioritizes relationships with salon professionals over maximizing profits.

• By choosing not to expand distribution beyond salons despite potential financial gain, John Paul D. demonstrates integrity and respect for those who helped build his brand.

Vision for Future Generations

• The conversation concludes with an acknowledgment that future generations will demand businesses operate ethically and prioritize social responsibility as part of their core values.