The True Cost of Cheap Talent

Summary

Podcast Summary: The True Cost of Cheap Talent
The Level Up Podcast w/ Paul Alex — March 26, 2026

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Episode Overview

In this episode of The Level Up Podcast, host Paul Alex pulls back the curtain on a common entrepreneurial pitfall: hiring the cheapest possible talent as a way to save money. Drawing from his transition as an ex-detective to 8-figure entrepreneur, Paul delivers practical insights on why investing in premium talent is essential for sustainable growth, freedom, and company culture.

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Key Discussion Points & Insights

1. The Pitfall of Cheap Labor

• False Economy:
  Paul warns that trying to cut costs by hiring the lowest bidder usually backfires. Cheap hires can drain profit margins through repeated mistakes and lost productivity.
  • "If you're hiring the absolute lowest bidder just to save a few bucks on payroll, you are going to pay for it twice." (00:50)
• Time Cost:
  Managing low-quality talent eats into CEO time, negating the financial saving.
  • "Their low hourly rate is costing you your CEO time." (01:07)

2. Hire for Results, Not Hours

• Shift Your Mindset:
  Paul emphasizes hiring for achieving outcomes—not just filling hours.
  • "Talent only scales your company if it actually buys back your freedom." (01:18)
  • "Instead of asking, how little can I pay someone to do this? Ask how much is it worth to have this permanently handled?" (01:34)
• Investment vs. Expense:
  Elite operators should be seen as investments yielding high returns, not just an expense line.

3. Building a ‘Powerhouse’ Team

• Cultural Impact:
  When you bring in A-players, everyone rises to meet the new standard; you get faster execution, fewer errors, and greater breakthroughs.
  • "When you raise your standard and bring on elite talent, your entire company culture elevates." (01:51)
• Synergy Among Top Performers:
  • "A players want to work with A players." (01:48)

4. The Bottom Line

• No Shortcuts to Excellence:
  Quality talent is essential for building a premium business.
  • "You can't build a Rolls Royce using junkyard parts." (02:07)
  • "If you think hiring a professional is expensive, wait until you hire an amateur." (02:19)
• Strategic Payoff:
  Investing in top talent leads to smoother scaling, culture improvement, and higher returns.
  • "Invest in premium talent and watch your revenue soar. Because when you do, you'll scale smoother than ever." (02:11)

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Memorable Quotes & Moments

• "Cheap labor is the most expensive thing you can buy." — Paul Alex (00:58)
• "Talent only scales your company if it actually buys back your freedom." — Paul Alex (01:18)
• "You can't build a Rolls Royce using junkyard parts." — Paul Alex (02:07)
• "If you think hiring a professional is expensive, wait until you hire an amateur." — Paul Alex (02:19)

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Timestamps for Key Segments

• 00:28–01:07: Intro to hiring pitfalls and true cost of cheap talent.
• 01:07–01:34: How cheap hires cost CEO time and focus.
• 01:34–01:51: Hiring for results, not just hours; investing in permanent solutions.
• 01:51–02:11: Effect of A-players on company culture and bottom line.
• 02:11–02:29: Paul’s final thoughts and memorable analogy about ‘junkyard parts’.

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Summary Takeaways

• Don’t confuse frugality with good business; poor hires cost more than they save.
• Time and results are more valuable than hourly rates.
• Elevate your hiring standards to raise the performance of your whole team.
• Treat top hires as critical investments, not negotiable expenses.
• Long-term, premium teams drive unmatched growth, efficiency, and culture.

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Paul Alex’s Parting Advice:
"Build a premium team, execute at the highest level, and as always, keep leveling up." (02:22)

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Perfect episode for:
Founders and business builders looking to scale, free up their own time, and create high-performance cultures—all without falling for the trap of “cheap” labor.

Transcript

[A]

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[B]

Welcome to the Level Up Podcast. I'm your host, Paul Alex. I went from being a cop to an eight figure entrepreneur that helps average people like you and me make money every single day. I created this podcast to help you get motivated and to crush your goals. Let's win together. Remember, I have your six. Get ready to level up right now. What's up everyone? Welcome back to the Level Up Podcast. I'm Paul Alex and today we're talking about a trap that destroys your profit margins. The true cost of cheap talent. Because let's be real. If you're hiring the absolute lowest bidder just to save a few bucks on payroll, you are going to pay for it twice. And if your team is constantly breaking things, your business is bleeding. Let's break down how to Invest in a Players without going broke first, understand that cheap labor is the most expensive thing you can buy. Too many people think slashing their contractor budget is a smart financial move. It isn't if you're spending half your week fixing the mistakes of a bargain basement hire. Their low hourly rate is costing you your CEO time. Whether it's an editor, an assistant, or a media buyer. Talent only scales your company if it actually buys back your freedom. If you have to micromanage them, you kill your own leverage. Second, hire for the result, not the hours. People don't build unshakable companies by hoarding pennies. They build them by acquiring premium operators who get the job done flawlessly. So instead of asking, how little can I pay someone to do this? Ask how much is it worth to have this permanently handled? Make your hires an investment that yields a massive return. Lastly, a players want to work with a players. When you raise your standard and bring on elite talent, your entire company culture elevates faster execution, fewer errors, and massive strategic breakthroughs. Create a powerhouse. When you pay for the best, you perform like the best. Bottom line, you can't build a Rolls Royce using junkyard parts. Stop cutting corners on your team. Invest in premium talent and watch your revenue soar. Because when you do, you'll scale smoother than ever. Thanks for tuning in to the Level up podcast. I'm Paul Alex reminding you if you think hiring a professional is expensive, wait until you hire an amateur. Build a premium team, execute at the highest level, and as always, keep leveling up. Thanks for listening up to the Level up podcast. If you enjoyed today's episode, make sure to share with a family, friend and everyone you know who's ready to level up. Leave a five star review on Spotify, Apple Podcasts, and wherever you tune in. It really helps spreading the word. And don't forget to check out officialpaulalex.com for more episodes and resources to kickstart your journey. Let's level up together.

[C]

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