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

Transcription for the video titled "Billionaire REVEALS The Key Habits That Will CHANGE Your Life! | John Paul Dejoria".


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Intro (00:00)

- Hey everybody, welcome to another episode of Impact Theory. You are here my friends because you believe that human potential is nearly limitless, but you know that having potential is not the same as actually doing something with it. So our goal with this show and company is to introduce you to the people and ideas that will help you actually execute on your dreams. All right, today's guest is the quintessential Rags to Richest story. He was born to immigrant parents, grew up hard on the streets of East L.A., and drifted in and out of biker gangs, but ultimately took himself from homeless to self-made multi-billionaire. His life literally sounds like it's been ripped from the pages of a Hollywood screenplay. His father left when he was just two years old. He had to sell newspapers and Christmas cards at the age of nine to help support his family. At one point, he and his young son were forced to live out of a car. He ended up having to sell encyclopedias door to door to make ends meet, and even that success proved fleeting, leaving him homeless again at age 36. But as with any great Hollywood tale, things were darkest just before the dawn. And he ended up turning a fortuitous encounter with a hairstylist named Paul into an idea for a company. And despite the backers pulling out at the 11th hour, the pair went on to launch and grow through sheer force of will. What is now the global powerhouse, Paul Mitchell, a company that made him a household name and fantastically wealthy in the process. But that was just the beginning. And less than 10 years later, he co-founded an even more successful company called Petron Tequila, placing him in the very rare pantheon of entrepreneurs who have had multiple home runs. And what makes his success so beautiful is that he's done it the right way. Putting his employees first, John Paul Mitchell Systems has had turnover of less than 70 people in 35 years. And he has baked philanthropy into the core culture of all of his companies. So please, help me in welcoming the recipient of the Horatio Alger Award for Distinguished Americans, the philanthropist and founder of the Peace, Love, and Happiness Foundation, John Paul DeGiorria. - Thank you. - Thank you. - Good on large.

Path To Entrepreneurial Success And Overcoming Challenges

The American dream (02:20)

- That's a great introduction. Thank you very much, very kind. America still works. - And that's a perfect place to start. So reading your story, it really feels like the American dream that I grew up with as a kid, that I'm not sure people think of as the same American dream. If you had to define the American dream, what would you say it is? - That when you think that there's all the opportunity you want and you don't know any better, you go after it. In my generation, it was a pleasure work. Whether it was at the Variety Boys Club at seven years old, making flower pots, going on selling them or Christmas cards at nine or going on the streets at 11 years old, delivering morning newspapers, for us it was fun to work. Now, what do we do with the money? We give to my mom, so we have a better way of life. We've gotten to high school. My brother and I saved a little bit of it for our car, which happened to be a junker, but we rebuilt it in Auto Shop, but because for us it was a pleasure to work, just because, wow, we got a job, it was so cool. So it's a little different in those days than today. We also knew that if we produce something, we produced it. If we want to go somewhere, you got to do it. If there's problems along the way, and I love to say this especially to entrepreneurs, one of the great secrets in life, to becoming successful, whether it's in a business, whether it's working with someone or for someone or in your personal life. And I learned this selling in Sacklerpedia's door to door in the early 20s, is be prepared in life for a lot of rejection. Because if you're prepared for a lot of rejection, it comes, you don't get turned off, you don't get disappointed, like, well, I'm not going to do this anymore, no one thinks it's a good idea. It's like, I say selling in Sacklerpedia's, knocking on a hundred doors, they slam them in your face, you must be just as enthusiastic on door number 101 as door number one. And that's what the real secrets, and growing up as kids in downtown LA, we all knew that, we didn't have a lot, we knew there's a lot of things that are going to turn you down. At seven, trying to sell a flower pot on the street, most people said no, but it's only 50 cents, no, no, no. Soon, a waitress in a little restaurant said, only 50 cents, that's really great, she bought it from us. And we wouldn't build another one. - That really is like one of the secrets of the universe in my opinion, that ability to stay as enthusiastic on door 101 as you were on door one when you had it slammed in your face over and over and over. How, is that something you can teach? Like, in fact, have you parted that onto your kids? Like, is that something that they've adopted? And if so, how did you pull that off?

Preparing for Rejection (05:00)

- Definitely, it's just like your viewers of your fabulous show here. They've just heard me say that. Now, if they write that on a piece of paper, be prepared for a lot of rejection. Whether it's in their personal life, that someone says you're too old, you're too fat, you're too young, you're not going to do anything other than yes, you've got holes in your nose, you've got things coming out your ears, whatever is other than yes, this is wonderful. Realize this can happen in life. As soon as people know that, when something goes wrong, they look at a piece of paper, oh yeah, that reminds me. The other quote that I give people a lot, especially entrepreneurs, is any business you're in, whether it's a service or whether it's a product, or anybody you work with that has a product or a service, always make sure that your product or your service is of the highest quality you could ever make it because you do not want to be. You do not want to be in the selling business. You want to be in the reorder business. Granted, you've got to tell somebody what your idea is and you know, and how it's going to cure something they may need, but the quality has to be so good that after that they want to reorder it or if it's a one time item, tell friends about it. And if people think in whatever they're doing in life, they're going to be in the reorder business, whether it's with a personal relationship, whatever you see right now, you're going to see again and again and again it's going to enhance. They'll be ups and downs. Here's my product, it's so darn good you're going to use it. We started Paul Mitchell. We had no money, but we knew our product was so darn good that if we got an answer of enough people, they're going to be reordering it because it was that quality. Service to save money. - And I love that stance. I mean, you can see that across all of your companies that you're really going for the best of the best to make the experience better. And getting to understand your technique and selling is easy once you get to Paul Mitchell and I do want you to walk us through that in a second, but how did you get through like tactically to a sale in the encyclopedia world? Like people don't want to hear from you.

Commission Only Direct Sales (06:50)

So like how do you overcome that? - What a question to ask me. The average encyclopedia salesman lasted three days. I was out for three and a half years. And the way it worked in those days, it was commission only. So the way it worked is you went for an interview, they told you all you could possibly make off commission only. And we were in training for three days. It was a presentation that was scripted. We'd have to memorize the whole thing. When we got in the field, you remember parts of it. You knock on doors, you're not quite sure of yourself. A lot of dirt are closed in your face. But what happens after a while, you start getting used to it. And you see what you can say or do that'll make it better. But when you go back the next day with your other salespeople, what did you see, what did you do, what did I say? So let's say knock on a hundred doors, get into one. Give 10 presentations to sell one book. But then when you get better and better at it, through your experiences and losses along the way, it sharpens you up. Where all of a sudden I got to a point where, if I gave three presentations, I have no less than one order commission only. But I believe that I could do that. I believe that college was the best set of books because a high school student could read it. It wasn't like a college manual you had to read. And I was doing something good for somebody. So you have to believe that what you're doing is good. It's going to benefit somebody. And you learn as you go, okay, do I look someone in the eye? See a lot of people don't know these things. Look someone in the eye. All too often people say, it's hard to look someone in the eye because you feel uncomfortable. Of course you do. They're not on the same wavelength, you're on the same frequency. So what do you do? How do you overcome that? You learn these things along the way. You look them right between the eyes or the eye round. Looks like you're looking over the eye. I've been working on a book for a couple of years with some of these tips and it's not ready yet. Maybe next year I'll be ready. But there's all they see. And of course smile. Smile's the most wonderful thing God gave us. And you don't smile when you first talk to somebody. You smile before you knock on their door. And if your day sucks, you fake it. Hi, how you doing? So when you smile everything changes. People change. - It's interesting.

Doing Sales Door to Door (09:03)

I've heard you talk about that before. How even on a phone call, if you smile on the other end, and if somebody's having a bad day, you were like, if you walk into an elevator and people are like totally turned in on their own world, that just a smile can literally change their brain chemistry. I think that's really, really a powerful reminder. How much do you think that doing the door-to-door sales sharpened you, trained you to be successful in business? - Tremendously. If they still sold and sacked the PDF's door-to-door, all of my children would be inclined and made to do that for at least three months. - What an experience. You're on your own, you make no money unless you do something and they're not even expecting you. You go there door-to-door and try and get in and try and tell some of these books that are gonna be good for you and here's how you use them. - Yeah, I really hope that people listening heard that. That if that was the thing, you would still make your kids do it because it's such a profound proving ground. It's a way to sharpen your skills. It's a chance to handle rejection. So I did door-to-door sales for a while. I was not the man you were. I assure you, I did it probably for about three or four months. But it is the loneliest. Like it is so awkward. Like they don't want you there and you have to like, you have to literally each and every time talk yourself up, get in the space where you can come, put the smile on. And to the people that are able to do that and develop the internal game in order to get to that point, I think is just super critical. And a lot of people want the easy answer, not realizing that going through the hard thing is the thing that's ultimately going to toughen you up. You're struggling hard times, but fall you, you've got to go do something. How do you know what to do? Sometimes you don't. Sometimes you don't know what the hell they do. You're just out there doing it. And you just kind of learn from your own experience or go with whatever your heart tells you to do. And if something goes wrong, you ask them, "God, here's what I said. Was that right?" You just kind of improve yourself. But many times if you're there, you don't have an answer, go with your heart. Give an answer, just say, "I really don't know, but I'm going to find out and I'm going to get back to you." - Yeah, I love that attitude.

Opportunity To Learn (11:09)

Like, were you actively saying in your head is you approached going up to knock on these doors that each one of these is an opportunity to learn something? - Mine kind of was, this in the beginning, okay, was successful people do the things on successful people who want to do. I'm going to knock on their door. - You literally repeat that. - Oh yeah, that's where I learned that one phrase. It was a great phrase, my gosh. And then if you're going out there for three or four hours, and then you still haven't gotten a door given to a presentation, the second phrase that God knows where it came from, it just came from me was when the going stuff, the theft of it going, one more door, one more smile. And it was tough, it was, I think, a week before I even sold my first set of books, but I just kept going. - I love that there's no secret formula to your success, that it's really been these basic building blocks convincing yourself to do it. In fact, walk people through, how do you go from, you show up one day and your wife is walking out the door and she hands you the keys and basically she leaves, you're in your darkest hour, you've explained pretty well like how you don't get stuck at level one. - Well that was level minus one or two.

John Paul Mitchell Business Story (12:11)

Okay, that time, yeah, I'd been the master ceremonies for the sportification and recreational vehicle show that weekend had something new to do the following week. But whatever little money we had in the bank she took, that check coming from them wasn't coming in for one week. And needless to say, she didn't pay the rent, I didn't know it didn't pay the electric bill. Within three days we were out of there, it was kind of down. And I think at that time, coming from an environment, we run across a lot of things that are very disappointing. I just looked at, okay, I have no money, I have a kid. Okay, got a hold of an old car that was loaned to me. We got a house now, we could put some of our stuff, our blankets will go in there, our clothes will go in there, right, we'll store the rest of my mom's house. I was too proud to tell my mother, mom, I'm down and now I got a kid, you know, Bella Split, Mom Cambo, room back, my son next to me, I was stupid. This happened twice in my life, I was ashamed to even tell her. So I knew that there were Coke bottles everywhere in those days or soda pop bottles, two cents for a little one, five cents for a big one. I went around collecting them, which helped with ecology, cashed them in, in those days, every grocery store, every liquor store had to give you the money. - And how did you keep going though? Like how did you not, okay, I'm out of survival mode now. So now I'm there and most people stay there forever, like how did you get to the next level and the next and the next? - Well, for me it was, I knew I had to work, plus I had this little kid. So I would drop him off at two and a half years old to a little nursery school, that time the one I went to was free, the city actually had one, I'd go out and have to have a job. Many of the other guys we were around didn't have jobs, but I knew I needed a job to take care of myself, my son and be able to one day have enough money to get an apartment and move on. - And did you plan things like that out? Did you say, okay, list item number one, apartment or job or like how did you put the plan together? - Number one was just survival period and not having to tell my mom what I'm going through. Again, it was pride, stupid pride. But then after that it was one thing led to the other. I had one thing the survival part was taken care of.

Get Experience or Opportunities (14:11)

Then it was, okay, what do I wanna be doing and how do I do that? Well, the first thing is you gotta have an income, you gotta have a job, then I just started getting it together and things fell in place. Now along the way there were jobs I had where I was fired at those jobs for the dumbest reasons in the world, but each one I was fired from taught me something. There were three companies in the beauty industry I worked with. I was the vice president of two of them and the national manager of one of them. And each one of my divisions did very well I was there. In one case I was a trainer for the whole company and they grew 50% in millions of dollars while I was there. Shortly after I started with 700 bucks John Paul Mitchell systems. Two years later something flashed in my mind. Wow, there is something called fate. There is something called your destiny. If you don't do it, be open, it could do it for you. Had I not worked for all three companies, it would have been impossible to start John Paul Mitchell systems with $700 for any amount of money. Each company I reflected taught me a different thing. One about the beauty industry and distribution. The other one about making products or bringing top artist and the other one about how to make these bottles, these products where to get it. All three were stepping stones for me and I never knew it. Goes back to what we were talking about rejection. Be prepared for a lot of rejection. If every time someone goes bad where you're rejected or turned down for something, if one can remember that be prepared for it. Well, this was a surprise, it was a surprise to me. I didn't expect it. But what happened was well, it's meant to me to do something else. I was just meant to do something else. Look at the backer, our backer pulled out. I needed half a million dollars. Paul Mitchell. To start John Paul Mitchell systems. Yeah, yeah, this story is incredible. I have to have half a million dollars, I knew that. Our backer pulled out the last minute and never got a dime and I stopped doing everything I was doing. How last minute are we talking here? Like that day, we were just had to pay for the artwork of thousand dollars, then we had the silk screener set up, the bottle cut me set up, the filler set up, was all set up with 30 day credits. They knew me in the industry, I did well, it was gonna go good.

Success Story - Getting Fired Still Taught Me Something (16:11)

Now what was the blessing on that one? We struggled, but we believe what we had was the best. The blessing was we each had 30%, the investors would give 40%, we end up with only the company.

You Have To Have Confidence, and You Have To Have Confidence (16:27)

Have you ever talked to the investor that pulled out? He's gotta be kicking himself. What an incredible opportunity. That's like a master's class in business right there. Necessity, yeah. But so many people shut down with necessity. And I mean, look, it's not a surprise that with that attitude that you've gone on to have the kind of success that you do. And the thing that I try to really get the next generation of entrepreneurs to understand is there's like just tactical business principles that you have to understand. And some of it's pure psychology, and some of it is just knowing that there's always another solution.

Tactical business principles (16:55)

Really, if people break down the things that you do, and ending with the final thing that I think you have a real gift for, which is the things that you're telling yourself to stay motivated, to keep pushing forward, to understand that when you're at that dark moment, that there is a path out of this, and that you have to look for that, and keep pushing, and smile. It's like all these really basic things that you've stacked on top of them. So how then do we go from that to the Paul Mitchell that we know today? Well, obviously it was hand to mouth for the first two years, but when you had the best there was, and we just kept on working it and working with it, telling hairdressers will be the first one to never cut you out. Most people have gone in the beauty industry and said, "Hey, we're only gonna be in salons, "lotta companies." All of a sudden they're in departments, stores, they're in drug stores and supermarkets, but we kept on telling people, if you ever, and you still do today, see Paul Mitchell in the drug stores supermarket? It's either counterfeit or from the black ray market. We don't put it there, we only put in salons. But the demand for Paul Mitchell exceeds where you could get it. It's only in salons, and maybe only in 10% of all salons. So people know it's the best there is, and people could actually pay full retail in the salon for Paul Mitchell, put it on their drug store shelf, up at $2, and they sell every bottle they have, 'cause people don't know what it costs, they just know it's really, really good stuff. So we kinda kept with what we had, and always make sure any new product we came out with was the best it could possibly be. Well, what's interesting about the beauty industry and quality, my first three products are still some of the best sellers. We've had them now for almost 37 years. It's that quality, make sure of your service or your products, the very best it is. Plus, we gave back along the way. We gave back along the way. We were the first never to test on animals and say, you can't. We were reticuled, our competitors put it down, 'cause they were doing it 10, 15 years later, they had somebody else do it, so they couldn't say we were doing it. We helped change things, and we were very proud that we did that. So we kept our values and kept it to Alina Business and realized there's no free lunch. We kept on working.

Internal values (19:16)

- You seem to have a really strong internal set of values. When did that begin to take shape in terms of policies that you could implement in a company? Was it right away? Did that take time? - When I worked for other companies, some of them, not mentioning names, were so bad. They would treat people the old way. I'm the boss, here's what you're gonna do because I'm the boss, right? Or there were times, for example, where maybe had a dollar for lunch, you can't get a lot for a dollar. So I just knew that that's how I was. And if I had a company that I had a control of, by gosh, everyone's gonna be treated the way I wanted to be treated. So the minute we could afford it, everyone had free lunch. Whether you had money or not, you have free lunch. We pay for it for you. Carpool will pay for that. So we started doing things for people that I wish happened to me. Maybe that's part of fate. Maybe because a lot of things along the way weren't so good that as things started getting good, it was so easy for me to share with our people. So easy to do that. People sometimes don't save money. As soon as we possibly could afford it, we started profit sharing. We're at the end of every year, and we'll take that profit sharing and put in a retirement fund for you. It's yours, it's yours. If you're here so many years, it goes with you no matter where you go. But it's yours, it's your money. - Yeah, it's really incredible.

How to systematize love. (20:31)

And how much do you think that that sort of golden rule approach has fed into your ridiculously low turnover rate, which is literally almost unprecedented. I mean, that's crazy. - I try and treat people exactly the way they'd want to be treated. Exactly the way I would have wanted to be treated. I'm happy with my people. I realize my people aren't the company. If my people go, my God, the company goes, people are your company, and they take care of the customer. The customer's always writing no matter what. So what do we do so the customer's happier? If somebody's unhappy, we try and discover why. And because you treat people this way, and we love them. You walk in our company, it's love. If you go to the front desk here in Century City, this girl just has the biggest, well say, "Hi, welcome to Job Paul Mitchell's system." She loves what she does. Our big problem is we don't have turnover. We have so many people want to work for us and the things you got to wait for somebody to die. Now as we grow, we'll add one or two on, obviously at a time. And we're pretty big now because we're in 96 countries. Patrons the same way. We're in about 130 countries in the world. And even when I went to visit our people in Mexico at our facility where we make Patron, it's made with love. We have about 16, 800 people down there, and I have several of them. Does it upset you about what's going on in the United States where they may close more of the border? And do you guys want to go to America? And everyone asks, "Are you kidding? "We can free lunch here. "We work at night, we get free dinner here. "You're so nice to us. "You pay us good money." No, we're fine here. We don't want to go. It's how you take your people anywhere in the world. You don't boss them around. You include them in what you're doing. - And how do you systematize that? 'Cause I get it if you're there every day. Like you, like everybody I've ever heard talk about you. And some of them are people that like, "I know." Like everyone says you just exude. Like what you put on for the camera is you. Like that's really how you are. And there's a warmth to it. There's a sense of love and appreciation. And, but how do you systematize that? How do you make sure that it pervades your company even when you're not there? - We let all the companies know what we do and why we do it. We have a culture.

Corporate Culture And Social Responsibility

What should you look for in a company? (22:45)

I'll give you an example. We have a, I've got almost 120 Paul Mitchell schools throughout the United States, cosmetology schools. Every one of them has to be involved in our culture. Not only do you learn how to be a great hairdresser, stylist, great colorist, right? But you have to be part of the culture. They raise money. Every school we have has to raise money every year. Part of that money goes to local community, part to the nation and part to the world. They learn in school while it's good to give and help others out. And they also learn what our principles are. Now we started at John Paul Mitchell Systems a very unique position. The lady that's running her name is Mara Gordine. And she is our ambassador of corporate culture. So what she does is goes around to our whole company, make sure everybody is reminded of our culture, what we do, all new people must go to indoctrination on what our culture is all about. And then recently, because we do so much stuff people don't know about, we started a magazine over the internet that goes to our whole universe and their universes that shows what we do as a company to share and change the entire world. Where everyone connected with us is part of that. Whether it's buying a new Coast Guard cutter for the sea shepherd to protect wells in the open seas, whether it's taking care of 7,000 orphans in Africa whose parents have died of AIDS, whether it's redoing Appalachia, whether it's here in Los Angeles, Christmas, getting homeless back to work. They're all part of it. All the things we're doing in this country, so they all feel like they're part of it. Well, when you're part of something really big and people take care of you and love you and you know if something went wrong, you can immediately get ahold of the founder, co-founder of the company, me, and talk to me directly.

Psychology today (24:13)

I live mainly in Austin, Texas, but if I'm traveling the world, which I do a lot, you know my executive assistant say, we want to talk to JP privately. Whether it's Paul Mitchell, John Paul Pet, Rock, Patrone, all companies do exactly the same thing. We try to take care of people. If someone screws up, we remind them, hey, how would you like that? If that was you, you wouldn't like that. Something I want to share with your guests also, if I may, is if any time someone screws up, don't ever, ever reprimand them in public. Always reprimand them behind closed doors, one-on-one, so nobody hears. If they hear it, they're going to be covert hostile to you. They'll stab you in the back every chance. It's the opposite for praise. If someone does something good, praise them loudly in front of as many people as you can, even if it's one person. It makes them feel good and they were acknowledged in front of others. Little things like this helps keep that culture going. - No, I think those little things are super crucial. The obvious question is to say, okay, how do we look for the right person to hire into that environment? I'm going to ask the flip. How can a potential employee evaluate a company? What should they look for in a company? And how should they be in an interview to get the job? - In life, we don't always know what we want to do. I didn't always know. But in life, we find out quickly what we don't want to do. So when you look for a company, try and look at what it is you want to do. You don't have to be the boss. What is that you enjoy being around? What makes you get up and say, I can't wait to get to the office. We have people, Paul Mitchell, working at seven, eight o'clock and I said, they don't have to. One day I walked in, there was 10 of them. What are you doing here? We want to finish our projects. You don't have to. We all went out to dinner. I just like, God, because they love what they're doing. So one is, find out what you want to do. And then try and find whatever you can about the company. Now, if you go online, it's going to be nothing but nice stuff or in the newspapers. But if you get a chance to talk to them, when you go down to be interviewed, just ask them, if you wouldn't mind talking to a couple of the people, the reception is a great person when you walk in. How's it going? How are you like working here? Is it a happy place or just very business like? No one's going to reprimand you for that. Be sure when you go in your interview and a lot of people aren't confident enough to do this. It's a small thing. Look the person in the eye or looking between the eyes on their eye rather than can't look in the eye, okay? And just relax. The more up tight you are, the more you try and be exactly perfect, the more you turn somebody up. They see that all day long. Just going to be yourself. If you're hired for being yourself, you're going to like it. If you're hired for being somebody else that walks to an interview, you're not going to be happy and not hiring you. Be yourself. If it flows, they ask you questions, you have the right answers, it's the right thing for you, you're set. If it doesn't work while you're being interviewed for you or the other person, it's not the right thing for you. Maybe there's something else waiting for you. Your testing could be elsewhere. Yeah, very true. How did you, when did you first start thinking about philanthropy? 'Cause in the beginning, I'm sure it's just like trying to get the business off the ground. But it really does seem foundational to your companies. When did that really solidify into, these are the causes that we care about, this is what we're going to give them. Another beautiful question. It started when I had nothing. At six years old, my mother would take my brother and I had a downtown LA, department stores, a Christmas, little trains going around, but we thought we were the coolest kids to see that. And I was six years old at the time, and my mom gave my brother and I a dime. And it's just something you never forget. She says, "Boys, I want you each told half this dime, "walk over and put in the red bucket of that man "bringing the bell." And we did.

Saint Jude Children's Research Hospital (28:05)

We said, "Mom, why do we give that guy a dime?" Now I'm older than you are. And those days a dime would buy two big Coca-Cola's or three candy bars. Well, that's a while ago, okay? And she said, "Boys, it's because that's a group "called the Salvation Army. "And they help people that have no home and no food." She says, "We want to do something." She says, "In life, there'll always be someone "that has less than you. "Don't forget a boys. "This year we can only afford a dime "because we don't have much. "We didn't afford a one dime, but we did something. "And if we couldn't afford this dime, "I'd be volunteering ringing the bell with them. "Always do something in life if you can, "either with your time or might help somebody else out. "And I never forgot that. "They just came as part of a culture." Start with a mom-mom. - And what are some of the most emotionally impactful moments for you as a part of your philanthropy? - I think going to Africa the first time and meeting some of the 7,000 children ages one day to 12 years old, all parents of diabetes are the kids that are thrown away. All the kids are brought into these various orphanages where we feed them, we protect them, we educate them.

The most touching moment (29:04)

One of the most touching moments on that was while I was there, we had a photo shoot. We brought the orphans in. We had a photo shoot, we did a campaign one year. We had all these African children in our hands. And one little boy, well guess is age to be a year and a half, two years old was only when not smiling. And the story behind him was that he was pulled out of a trash can the day before, dropped off as they were leaving. They said, well, they brought him with them there. And the boy would just be well there. Trash can, he was skinny as can be. And the other kids were eating a little candy bars that were given to him, you know, they'd think soda pops and before he left the photo shoot, he picked up a soda pop and drank it. And we were just hugging him and the kid smiled. It was like tears come out of the eyes, you know, it's just beautiful. If I could share this also with your people, it's a very nice lesson to learn about giving, is in life. Whenever you could do something for somebody else and ask, nothing in return, not even a thank you, nothing, just do it 'cause it has to be done. You'll get the greatest tie you'll ever have in your life. The greatest side, there's no drug, no nothing that'll surpass that. And I know what high's all about 'em, a child in the 60s. Anyways, but you know, it's the greatest tie in the world. The greatest tie in the world. There's nothing that'll surpass that. - Tell me a little bit more about Grow Appalachia. So your system there is pretty interesting. It's sort of the don't give a man a fish, teach him to fish. - Oh yeah, starting at about 2010, when people were hungry on food stamps and I found out to one of my staff members, about 150,000 families on food stamps, I said, let me try and take on half of 'em if I could at least. So I paired up with Bria College to give me assistance. I paid for it all. And the deal was to go into the country, where these people are, try and get with churches, community centers, and I would pay for the irrigation, the seeds, everything. And Bria would help me with some volunteers, and I paid a couple people full time to work for us. We would teach people how to grow their own vegetables, first year was this, grow your own vegetables to feed you and your family, and here's how you can things and jars for the winter.

Grow your own vegetables (31:05)

So you have food all year long. Oh, that was pretty good. Phase two would be this. Phase two is now you know how to do it, you grow more. What do you do with the excess you have? Either find people around you that need some, or help them grow stuff, 'cause you don't know how to know, but start selling it in local grocery stores, or farmers markets has organically grown produce. Now you have an income. Pretty soon, going into the third year, we had chickens going in there. Here's a dozen chickens. Now you have eggs, and then we had a couple of them get into bees. Now you have honey. All of a sudden they were totally self-sufficient, and many of them out there now, with little businesses because of it. I believe today we're about 35,000 that we feed off their own garden. Whoa! So it worked. Don't expect the government to make the changes, the major ones. They help out God bless and we want them to help out. The people have to do it. It's we the people of the United States of America. You wanna change? How do you do it? Where do you volunteer to do it? You know, how do you volunteer to do it? You wanna change good? What group's doing it? I'm gonna be part of them. I'm gonna be part of we the people that change it. Not wait for every way to give something to me because it's the thing to do. I'm gonna make things change. Today more people are involved in changing the world for the better, for the people in the planet than ever, ever before. In June, a movie's gonna come out, called Good Fortune. I worked on it with Josty Cal, who won many awards and it's all about how to go from nothing to something but change the world while you're doing it. But it's called Good Fortune. I'm going on TV and I'm on TV all the time, you're major stations. Occasionally they have me come on and say, "JP, you represent the 1% of all people." What do you think of this? Do you know the 1% and the 99%? They think you should pay more taxes. What do you think? And I look right in the eye and I say, "Can we talk truthfully here?" Of course, JP, that's why you're on. I am the 99%. I am the 1%. It's we the people. Isn't it the American dream? To have a chance to do so good, you could buy nice things for you and your family. And if along the way you give back, isn't that wonderful? It's we the people. And by the way, did you know at that time there's about 150 of us and we're all billionaires. Most of us came from nothing, made it the American way. But do you know that we're all billionaires? We've all pledged 50% of our wealth, while we're alive or after we die, to change the planet for the people and the planet for the better. You wanna know people are members of this, they haven't ever talked about it. Bill Gates, Warren Buffett, I can go on and on. These people give so much back already and so much dedicated after they die to change the planet. So 1% versus 99%. How about we embrace one another? Because that so-called 1% is doing so much. And in many cases more than our government is doing, to help the rest out. - So if you had an ultra successful friend come to you and say, okay, look, it's time now that I really do something meaningful with my money. What would you encourage them to do? - First of all, what are you the upset you most about the planet, whether it's your country, your city, or the world? What upset you most when you hear something? Or what do you see wrong that you would love to change even in a small way if you could? What do you see something big? What touches your heart? Not, well, looks good if I do this, I'll look like a hero. What touches your heart? - No, I love that. Do you think that there are entrepreneurial principles that need to be applied to some of the more cause oriented things? So I think when people think about an entrepreneur they usually think purely about profit. And so when it gets into NGOs and non-profits, it's like, well, does it really make sense? - To me, it's like what we really need to make change is the money, no question, but it's also people that know how to think like what you're doing with Grow Appalachia where it's turning it into something that becomes self-sustaining. - So you tell yourself exactly, and the way to do that is take someone like yourself, anyone out there.

get involved and help (35:06)

Is there a charity you really like? There's a strong possibility it may not be managed, the way you would manage a for profit business. What do you do? You go in there and help them. Here's how you merchandise because your product is your charity, that's your product, your cause. Well, how do I get this disseminated to more people? How do I do that? How do I do within the budget we have? How do I expand within the budget we have? If we need more money, how do I creatively help raise more money so that it comes to a good cause at the other end? So all too often business people get involved and don't think about, well, let me help the organization do better. That's the good way they can help out. - All right, super random question for you. What are three things that you taught your kids that you think have helped them be successful? - One is be prepared for a lot of rejection. The other is whatever service or business you're involved in or thing you do, make sure it's the highest quality there is. And always remember kids and they do. Success and shared is failure. - I love that quote. - And we don't spoil our kids. When my kids grew up, even our last one who was now 19 and a half years old, when he was 12 and we were doing good in business, his allowance every week was $12. When he was 13, was $13. But between 13 and 14, he had to sit down with dad. He says, "Dad, you were born a long time." He says, "You give me $13. Dad, I go to the movie theater one time. That and a Coca-Cola or any soda pop, not from MoCo, anything, the money's gone to have no more money left, dad." He says, "It costs more." I said, "Son, you're right, you are, so I have to do $20." But none of my kids, thank God, my kids aren't spoiled. They work, they know the value of a dollar. - They just make them have a job? Like a reserve? - Well, his job was full-time student. And if they could study, great. If they couldn't during that, I would take them to work with me, or something like that. Some of my kids just did something on their own. You know, and then once, of course, are able to actually have a regular job, they started looking for jobs on their own. I had one somehow, this has started his own little business with no money, trying to get an artist to go to a salon and train him, and he would get the little money in between. You know, it's amazing what they do. Michael Lee, my 32-year-old, brilliant. And she's vice chairman of John Paul Mitchell Systems. That's another thing too. If you have any kids, good example of this one. She says, I said, "Mikey, start as a receptionist." She says, "No, I'm gonna go to work in the warehouse. I'm gonna have every job in the company." - Spectacular. - Really? I said, "Cool." So she stayed there until she learned it, and went through all of it. Well, you better believe our people love her, and say, "Oh, sure." She knows us. So then several years ago, she became our director of future development, right? Did what she did so well, everyone loved her. My own president said, "You should promote her device. Share them, that's what she is." - It's really, really interesting, 'cause I'm imagining them all following your, like the four P's, and then making sure they have the best product. And so, yeah, it's a-- - It's a four P's, you've got a profit people, be positive, and help the planet. - I love to be positive. How did that make the list? So of all the things in the world that you could say are like the secrets that being positive is one of the main things that people need to do.

Entrepreneurial Strategy And Impact Theory

be positive (38:21)

How'd you happen on that? - In life, whether it's personal or people around me, when you see people that are positive, that look at something good and something bad that took place, they move along in life faster, they're better, and people wanna be around these people. I mean, too often people gossip, the one gossip person wants to be around, the other person that gossip's. But they don't realize, when you gossip, you're saying something, you heard about somebody else. You're telling everybody, what if part of it was wrong? You're gonna go out and tell every person you told this, oh, I'm sorry it was wrong, tell everybody you told it's not gonna happen. So it's things you learn about, don't gossip, don't be little people if you don't have to, God please don't. Try and look at the positive angle. What good could come out of something? And that posiveness is gonna make you live longer, happier, and wake up in the morning happy night, oh my God, I gotta gotta work, I can't wait till I get home, I wanna retire, because people were not positive, they were not happy. And what happens if they retire? They hate their job, they retire three or four years later, they're dead, 'cause they have nothing to do. That positive attitude, be around positive people, encourage positiveness, if you find yourself walking around just complaining all the time around, people that complain a lot, man, move, or just try and do something different, change your life. Being positive, and a positive attitude is find something positive and something bad. Makes you look for solutions. When I was down and out, okay, hmm, oh pop bottles, let's get the pop bottles cash 'em in. - I love that, because I, until you said that, I knew that people listening were thinking, well it's easy for you to be positive, you're a billionaire. So, but the fact that you were positive, even when you had to be looking for the bottles, you were recycled to make sure.

Creating a potentially billion-dollar a year brand with Pacific Shaving Company (40:05)

- To make sure. - To make it to get you 99 cent meals, that's incredible. All right, I have a question. In today's environment where it is, the business landscape is so crowded, and it seems like all the good ideas have already been taken, how can you go in and create space and build a company in today's environment? - The best way to explain it is by actually doing something, let's take a huge business throughout the world, one of the biggest telecommunications. You have giant phone companies, you have servers that are on your cellular phone, it's almost like a lifestyle now, right? Well, how does someone get in that industry, and obviously you've got all the giants that are going up against that, multi millions of millions of dollars, how do you do it? Well, you look at what the industry is lacking, and pull the industry into it. Give you an example, it's one of my latest companies, Rock, ROK Mobile. Rock Mobile, believe it or not, we found the opening, so I'll tell you how we did it, for $49 a month on your cell phone, any cell phone, any smartphone, we found a way to give people all their telephone calls to United States of Mexico, 500 international minutes free, they're texting, they're data, all their music, over 20 million songs, $100,000 worth of accidental life insurance, telemedicine, seven days a week, 24 hours a day, a doctor's on the other end of the phone with you talking to you, see what's going on. Now, but your carrier, who works best for you here? Now, how do we pull this off? With these giants? Well, we did a little research, we know people want their lifestyle if possible to be on that cell phone, if possible, but a lot of people can't afford a cell phone, or they pay so much money, average person, I talk to pays one, two, sometimes 300 bucks a month, go international, goes crazy on you. But so we did this, we went to, for example, the music companies, the big music companies, you know, you have Warner Brothers, you have University of Sony, right, and said, "Guys, we'd like to be another avenue for you "and your artist, one you don't have right now." Yeah, sounds pretty good. We give you a piece of it all. Good, went to 500 other labels, got them, come on board. Went to a big carrier and said, "Look, we know that. "You have something called the churn, a new word I learned. "Where every year, 20, 25% of your business, you lose "to another carrier who has a better deal." Here's what we have, at that time we had just the music, with the texting, the data, and that, right?

Grew John Paul Pet into a 200 million dollar a year business venture (42:31)

They said, "Yeah, we could probably get some people back "with that." And then we were able to go to insurance companies and say, "We're predicting we have all these millions." And by the way, we took out a patent. We have the patent on an app that would have, whether it's medical insurance, any kind of insurance on there. And little by little, they all got involved. All of a sudden now, we're in telecommunications in a very, very big way. But the better part of it is this, how do I go back to my startup to help those people out? Variety Boys and Girls Club in East LA, right? Would pay 25 cents for wood and sell for 50 cents is a big wooden flower pot, right? So we thought, let's help them out. Let's help be interested in New York. Let's help Harlem, let's help people out. So what we're doing right now is, with our profit, is we're saying, "Kids, we want to help you "have a good allowance." So if you'd like to, you have to service for yourself or your family or anybody you know, we're gonna give you five dollars every single month for a year, that's your allowance. If 10 people have it, that's $50 a month, okay? If 100 people have it, and people can't so whenever they want, but if they're still on there, that's $500 a month for one year. It's how to have something so low, everybody wants it and needs it. It changes the landscape. And for us, involving money, but it shares it along the way. One you share success on share is failure. And that's how Iraq is just exploding right now, just taking off all underground word of mouth. That's one. I'll give you another one real quick. We found out that 3.7 billion people have the cold sore virus. - Oh. - Two out of every three people, have it right. So somebody came for me once a few years ago, said, "JP, we've been working with "Native Americans and Universities on a gel "that comes out of plants. "It's plant-based gel, right?" And someone has a cold sore, you put it on, and in most cases they feel the tingle, the cold sore doesn't come out. If it comes out, you put it on every hour, and almost everyone we gave it to, it's gone in less than two days. I said, "Really?"

Tips for millenial entrepreneurs on how to gain traction (44:39)

So we started giving it to people. All of a sudden people are saying, "Oh my God." This gets rid of that cold sore, and it's invisible in less than two days. So I spent millions of dollars doing the double blind studies and everything else. So now for like, you know, less than 30 bucks, someone could buy a tube of Abio. AUBIO is what it's called. Aufregold, Bio for Nature. AUBIO, they go online and buy it. They go to Target. They could go to Rite Aid. They could go to, you know, all these-- - You guys are already in distribution? - Yeah, it's already in distribution. No advertising, you just got it out there because the people, Yousen said, "Wow, this is something. "This stuff is unbelievable, right?" And there's something, you know, large chains that have it, but for sure Rite Aid has it, Target and CVS has it also. So we could go in that industry and say, "We have something that we have something different. "It's realistically priced for not ripping everybody off." So as people think about it, look at even these big businesses. What niche would you like to see happen? Cell phones, God, we'd love to see it. Less expensive, no limitations, and all these other goodies. Look for that niche, what does it need? How can you put it together and help the environment along the way if you could do it? - Yeah, looking for ways to disrupt people and really fundamentally take a different approach. So yeah, take an old industry, look at it, what's something that we can bring from today that maybe companies of old aren't thinking about. And sometimes it's even just new technology to modernize the systems, to make it simpler. - Oh yeah. All right, I have one final question for you, but first, where can these guys find you online? - Well, I don't have a website, again, I don't even do internet, but the best way to find me is go to John Paul Mitchell Systems, that's one way, okay? And then we have, here's our philanthropy part. The other is go to, see what we're doing there, or you can go straight to my foundation. It's called JP's Peace, Love and Happiness Family Foundation.

Tony's Impact Theory (46:21)

And you can see some of the things we do, some of the things we're involved with. - Very cool. I've just gone online, I've taught my name and all kinds of stuff. - All kinds of stuff comes out. - Amazing what people say. But most of it's good, so that's cool. You get a chance when it comes out, go see Good Fortune. I did it to try and spread the word of overcoming obstacles and how you can do it. - No question, I'll check that out in a heartbeat. I read a synopsis of it, it sounds amazing. I mean, it's your life story, so I cannot wait.

John Paul DeJoria's Impact Theory (46:55)

All right, my final question, what is the impact that you wanna have on the world? - While he was here on this planet, in his human form, he did something to make the planet better off because he was here. He paid really good rent and was happy because of it. - I love that. John Paul, thank you so much for coming on. This was amazing. - Thank you. - I can't thank you enough. Guys, this is somebody, like he said, all you need to do is drop his name into Google and I promise you an avalanche of amazing things are gonna befall you. The amount of philanthropy that he's doing is incredible. And when you look at his for-profit companies and see that they have as a part of their very DNA, a philanthropic spirit, it's incredible. And it is not surprising to me, even though mathematically I can't make it make sense, it isn't surprising to me that he's had such small turnover. When you put people first, when you actually care, not pretend to care, but you actually care about them and you care about what happens to them. And you're the kind of person that is able to see the positive even in your darkest moments, that even in your darkest moments, you are looking for the path through. You're looking for the next level up. And when you get there, you're looking for the level above that and never from a predatory standpoint. And here's something that I didn't understand 10 years ago. So let me tell you, when he says that they made a promise to the beauty industry, that they would always sell through the salons, he left hundreds of millions of dollars on the table. And every day that he refuses to do that, he's literally leaving money on the table, but he's doing it because he knows that if he migrates away from those people who are working in the salons and moves it out to broader and broader distribution, that it will hurt the people that helped him build it. So why does he do it? To be honorable. That's it. It isn't a smart business move. He's literally doing it to be honorable. I respect that more than you know. Guys, this is somebody that you're gonna wanna research and see the way that he thinks about the world and the way that he thinks about business because to me, it is the future. The generations coming up are gonna make the demand that every company is like this. And you're gonna need to be this way whether you want to be or not, and he's been doing it since the 80s. It is astonishing. He is leading the way for an entire generation. Follow that lead. All right guys, this is a weekly show. If you haven't already, be sure to subscribe. And until next time, my friends, be legendary. Take care. - Cool, peace, love it, have you.

Closing Remarks

End of ShowCF5D0161 92D9 3C3F D1CF 43FD57639AE2 (49:17)

- Hey everybody, thanks so much for joining us for another episode of Impact Theory. If this content is adding value to your life, our one ask is that you go to iTunes and Stitcher and rate and review. Not only does that help us build this community, which at the end of the day is all we care about, but it also helps us get even more amazing guests on here to show their knowledge with all of us. Thank you guys so much for being a part of this community. And until next time, be legendary, my friends.

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