It's a bit of a chicken and the egg thing, where him inflating his accomplishments leads to more students which leads to more concrete accomplishments which are then inflated again, etc.
But I will admit that there was at least some substance underneath it all at the gym. I just don't think it was nearly as revolutionary or different from other gyms as it was marketed. I always got a lot of hate for saying that, but I have been of the opinion for years that the other top competition teams train just as good, if not better, than Lloyd.
I honestly always felt that the reason why people used to think/still think that LI's guys used to work so hard was because of the fighter house. Without that house, LI would have found a really hard time promoting how serious his competitors were about their BJJ career, thus feeding into his marketing strategy. I mean, all the other gyms can always claim they train hard or harder than LI, but the fighter house really put LI on top. Most of the other gym's competitors would probably go home after training "hard" everyday even on weekends. LI's competitors were stuck in the house all the time. In an interview JT even stated it got hard to live there sometimes because it was a bunch of dudes and they sometimes had differences.
The fighter house really contributed to the success of LI in general though. It was like the Ultimate Fighter house for BJJ competitors, expect this one wasn't that televised, but every single person in that house was a champion.