If I Wanted To Become a Millionaire in 2025, This Is What I'd Do [FULL BLUEPRINT]

Video ID: AN2KpRBsmRY

YouTube URL: https://www.youtube.com/watch?v=AN2KpRBsmRY

Added At: 13-06-25 21:16:50

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Sentiment: Positive

Categories: Finance, Self-Help

Tags: entrepreneurship, business, success, motivation, learning

Summary

The video discusses the blueprint to making your first million dollars. It emphasizes the importance of knowledge, skills, and environment in achieving this goal. The speaker shares their personal experience of starting from scratch and building a successful business.

Transcript

this is the blueprint to making your
first million dollar and I'm going to
walk you through it step by step even if
you're starting with your first dollar
so there's three levels in the blueprint
and level one is fundamentals and it
starts with who you are and the reason
we start with who you are is because you
are the foundation of everything that
you want to have and so there's a thing
of me and the building blocks of who you
are are first the knowledge that you
have the things you know about second
the skills you know how to do third the
motivation to actually do them and
fourth the environment to make it easy
so the first pillar of this is knowledge
in order to become a millionaire the
first thing we have to do is know what a
millionaire even is to begin with a
millionaire means that you have over $1
million in investable assets
liquid minus your house so your primary
residence is actually excluded from this
now I'll give you a fun fact that you
probably don't know one out of nine
Americans is a millionaire and the thing
that separates the people who are the
millionaires from everybody else is what
they know exists and if you're like who
are you to even say this uh my name is
Alex rosi I own acis.com our portfolio
of companies deser over $250 million a
year and since 2016 every single
business I've ever started has gone to
over $10 million a year and we have
three companies that are worth over $100
million plus so the reason that rich
kids for example have an advantage over
poor kids kids is because rich kids have
parents who tell them about
opportunities that exist that get better
Returns on their time if you don't know
private Equity exists you sure as hell
aren't going to get into it if you don't
know that you can become an investment
banker and sell companies worth hundreds
of million dollars and get percentages
of companies that you didn't even found
and take on no risk then you're not
going to pursue it and so I make these
videos so that you can know things that
you might not naturally have around you
or anyone in your surrounding area who
knows that these things exist and to
give you some context I was 22 when I
started this journey and ultimately quit
my job before I ended up starting my
first business when I did go to quit my
job I emailed a bunch of different gym
owners cuz I figured I wanted to get
into fitness cuz it was something I was
into and only one of them got back to me
and that gym owner was a business owner
and he was making money and so I moved
out to California I changed my
environment so that I could be around
this guy and this guy helped me learn
the ropes and taught me about my first
business which opening a gym and it was
only after learning and paying for
Consulting for a gym business that I
didn't have that I felt comfortable
enough to begin on my own so the second
component of knowing who you are are the
skills you have these are the things
that you do and so what can be really
deceiving about this is people say hey I
want to be confident I want to be
charismatic I want to be good on camera
but they make it seem as though it's a
trait so a trait isn't a real thing what
it really is is a Bund bundle of skills
so let's say if you wanted to learn the
skill of sales and so underneath of
sales we may have being able to actively
listen being able to repeat back what
someone says nodding and keeping eye
contact being able to shake a hand
firmly walking into a room and be able
to project your voice being able to have
reason to arguments with someone if they
have some fallacy that they believe that
you can help them overcome all of these
are subskills that if someone exhibits
all of them someone say he's a good
salesman now if you have this first
level skill you can usually become a
millionaire literally with just that but
then fundamentally if you want to level
up you can learn
marketing and marketing is basically
sales done one to many and so all the
things that you learn how to do
one-on-one you start projecting to large
amounts of people and so this is just
sales at scale and so underneath of
marketing you would also have to
understand media so like where your
communication is happening you'd want to
understand headlines uh because that's
going to be the first line of
communication you'd probably have to
learn something about web pages and
you'd have to learn conversion right
these are all subskills underneath of
marketing that would make you a good
marketer now if you know sales and
marketing
then you know acquisition because that
means that you can completely acquire
customers and so each of these skills
stacks on top of one another and makes
all of the skills retroactively more
valuable so the more you learn the
better you get the better you get the
more you get and so the path to becoming
the person who can make the first
million is predicated on the knowledge
you have about the world so that you
pursue the right path to get the skills
within and so sure it's just as hard to
learn how to pack boxes in a warehouse
probably as it is to learn how to do
sales they take about the same amount of
time to learn this one just has
significantly higher returns and so this
is where the knowledge shows you where
to orient your effort so you get the
highest returns back on the skills you
learn so now let's talk about motivation
my tiny little box of motivation and so
motivation fundamentally comes from
deprivation it's from what you don't
have that creates the action or urgency
around acting in general and so for
example if I'm sleepy I'm motivated to
sleep if I'm hungry I'm motivated to eat
and so right now if you're motivated to
become a millionaire it's because you
lack a million dollars one of the
easiest ways to become more motivated in
money rather than physiological stuff
like hunger sleep whatever is to
surround yourself with people who make
significantly more money now immediately
you're like wait a second I don't know
anybody who's a millionaire of course
you don't but you may be able to create
a reference group that you compare
yourself to who are millionaires and so
for me for example when I had my job in
Baltimore which is what I left to become
an entrepreneur and start my first
business most people were just like this
is a terrible idea why would you throw
away your college Years why would you
throw away this good job that you have
that's steady and stable and looks good
on paper and sounds good at cocktail
parties and it was because I hated it
and at some point I realized that
basically everyone except for one guy
that I kind of knew who we talk about
our entrepreneurial dreams together all
of them thought this was a bad idea and
so at some point this is where High
agency or high self-belief has to become
more important your belief about
yourself has to be more important than
what other people say about you and so
this is a perfect segue to my second
tiny little box
environment and so think about your
environment as friction or a lubricant
on your goals and so if you want to
change someone's Behavior you change
their environment so let me give you a
really simple example of this I can
guarantee you that I can get every
single person in a building to take
their clothes off how could I do that I
could do that by locking the doors
that's one change to the environment
second putting them all together in one
room second change to the environment
third cranking the heat until it's 200°
eventually everyone would strip down
because it would be so hot in there and
so you are that little rat in the
experiment and you want to create the
Box around you that lubricates the
activities that you want to do and so
fundamentally what you want to think
about is how do I make it as easy as
possible to work as hard as I can and
then how do I eliminate everything else
that distracts me from my goals more
specifically how do I eliminate
everything that distracts me from doing
the stuff that gets me the skills that
takes me towards my goals and so that
means that it could be people it could
be software it could be alcohol if you
just simply put this as your filter
thinking does this increase or decrease
the likely that to hit my goals cut out
everything that decreases the likel that
hit your goals cuz sometimes that's
easier to see and then all that you'll
be left with is nothing and time and the
ability to learn and act I've talked
about something that I call the season
of know which I've entered multiple
times in my career as an entrepreneur
which is basically where you're not
successful enough to be in the group of
friends that you want to be in but you
want to have a completely different
lifestyle than the people you're
currently with and so you basically just
have to say no to everything and that
means that you're saying no to the
social Gatherings because you know none
of those people there have the goals
that you want and none of them
understand what you want to do it's
saying no to the distractions and no to
the entertainment that you do normally
because you know that that's not going
to increase the likelihood that you hit
your goal so for me I gave up fantasy
football I gave up drinking with the
boys I gave up going out I gave up
really just like friend gatherings in
general and so the only thing that I did
was I worked and then I went home at
5:00 and then I worked from 5:00 to 9:00
and so I'd work 5:00 to 9:00 in the
morning go to work work 500 to 9 again
at night and so I had 8 hours of time
that I could work on me and what I
wanted to do next and 5 to 9 that I or 9
to 5 that I worked in the middle of the
day that was basically how I paid my
bills and if you're like wait there was
no time yes there was no time I didn't
have a girlfriend I wasn't going out to
the movies right like it was just 100%
focused on removing everything that
wasn't getting me Clos to where I wanted
to go go and if you're like wow this
makes me a weirdo yes yes it makes you
odd and if you expect to be normal and
Achieve odd and outlier results good
luck so we've just covered who you are
and you made a little bit of money the
next step is figuring out who to sell to
and I want to make this really real for
you and so a lot of people think that
you got to to make a million dollars you
got to sell 10,000 people something for
bucks right and that would be $1 million
right that's that's what that equals but
it's way easier to just sell a 100
people something that cost
$10,000 which also equals 1 million
bucks and so believe me finding a 100
people way easier than finding 10,000
and so the real problem that you're
solving is what do I have that's worth
$10,000 well the thing is is they also
don't have to pay you now this can be
split over 4 years
right which would then be 2500 bucks a
year which is now $200 per month and for
you to acquire the 100 customers you're
talking about two people per week which
is not that hard and if you're reaching
out to 100 people per
day then you getting two out of 700
people to be willing to spend $200 a
month with you all of a sudden this
million dollar goal becomes a lot more
real if you're trying to figure out who
to focus on on for these two people a
week that you're selling to that's what
I'm going to cover right now you have
three basic circles that I've identified
from all the entrepreneurs that I've
talked to number one is that you help
someone who is like you overcome
something that you overcame in the past
and so that's typically some sort of
painful thing or some sort of problem
you figured out a solution to and then
you operationalize that for other people
the second is something that you're just
very passionate about so it's like
you're really into this thing and then
you help other people get into that
thing too the third is some sort of
professional skill and that's like oh I
used to do accounting or bookkeeping for
this business or I used to do building
management or I used to do Property
Management like whatever it is you have
some sort of skill that you learn in the
professional Marketplace that you help
other people do and so all of those
things those three PS pain passion
profession are the three fundamentals
that I look at in terms of trying to
pick the who so pain
passion profession underneath of this if
you're like okay where do I want to
start the reason that I like helping
fewer people rather than more people in
the beginning is because you don't have
money and you don't have resources and
so if you're going to start a business
you might as well start with fewer
people that pay you more because it's
easier to run that business and so I
like to use the uh the old Tesla analogy
here which is when Tesla started he
wasn't trying to bring in the model 3
into Mass Market he started with the
Roadster which was the most expensive
version of the car because he knew that
the fewest amount of people would be
able to afford it the other thing that
this does is it actually positions you
at the top of the marketplace then he
moved down market and created the model
S which was now a $120,000 car then he
went and got the model X and then he had
the model 3 and then he has the uh the
cybertruck which I think is why anyways
the point here is that he basically
worked his way down and went broader and
broader and broader Market as he
continued to get resources and be able
to redeploy them into broader and
broader parts of the marketplace and so
for you you're going to probably pick
what pain passion or profession you're
going to go to you're going to start
with the smallest version of that market
that you can the most specific the
closest to who you can help the most and
so I will give you this third little
piece here which is if you're for some
reason split between two of these like
oh I like this and I also overcame this
thing help the person that you can
provide the most value to now if you're
like okay I can help this poor person go
up by $10 and I can help this rich
person go up by $100,000 then in a real
way that $100,000 is a representation of
how much value you can provide that
person meaning go do that one first now
once you've identified okay I'm going to
start with a niche I'm going to pick one
of these three PS then you run them
through these filters that I have is
that number one you want them to have
the problem to solve now all of these
things fundamentally are problems right
they there's not enough information
about about this passion there's not
enough information of this pain or
there's not enough information about
this profession they want to learn but
fundamentally all of those are the
problem so you have to have a problem
that you're trying to solve and the
people you're trying to sell to need to
have that problem number two is they
have to have the money to spend if they
don't have the money to spend but they
got the problem then you don't have a
business around it you got a nonprofit
which is not the point of this video
this is about making money underneath of
this problem to solve you want them to
have the urgency to solve it now so this
can't be something that they're like
that would be nice it has to be
something that they want to solve right
now because this will overcome all of
the people who are like ah I going to
think about it they keep pushing it off
if you have cancer and somebody has a
cancer treatment you want it now now on
the money side you also want them to
have the authority to spend it so you
want them to be the one ideally who's
the principal who's the one who makes
the decision about the implementation
that you're going to help them with and
I want to be really clear I use these as
thought exercises to help you get
started and pick the who that you're
going to serve but the end of day if I
had to boil all of this down it just
comes down to this one truth which is
that you want to serve the person that
you can provide the most value too I'll
tell you that a16z y combinator Etc they
have one rule that they learned in years
which I will share with you is that they
now only invest in Founders who already
have experience with the problem and I
again I Define problem very broadly here
that you have overcome this sort of
difficulty and you've lived with the
problem for five plus years if you've
lived with it then you intimately
understand understand it because that
means that you'll also intimately
understand the prospect that you want to
sell to and so it kind of is like this
hack for already knowing what their
thoughts and dreams are what the pains
that they're experiencing how they talk
the words they use so it's kind of this
big time warp of saying oh I already
spent the last years of my life living
being me if I can sell to people who are
just like me then I don't need to do 5
years of studying and figuring this out
and so for me I had struggled getting
into shape that was my problem I was not
jacked enough uh and so then I spent all
my time learning about it so that I
could become Mor jacked so much though
that I annoyed everyone at at work
enough that they were like please quit
this and start something Fitness related
and so for me that was the perfect first
pick now I was between SAT prep and why
was that because I had been pretty good
at test prep I tested pretty well and
I'd gone through a process of improving
my own scores and I was like I could
probably help other people improve their
scores too the other thing that I was
considering was frozen yogurt because I
actually really liked froo at the time
this is before frozen yogurt boomed and
so I actually was you know to Young Alex
was actually not a terrible time to get
into frozen yogurt and so fundamentally
it's like I had two things I was
passionate about or pain these are
really just equal sides of the same
thing right it was a pain and then I
became passionate about it when I solved
it sat froo JY and so actually all three
of these were in this pain/ passion
bucket and I chose to start the gym
because uh frozen yogurt cost 150 Grand
open which I didn't have then it was
really just between SAT prep and fitness
and I actually started on the SAT prep
path first first and then I was going to
partner with someone and then I'll just
say it it ended poorly and because of
that kind of negative experience and I
wasn't emotionally mature enough I said
fine I'm not doing that uh I'm just
going to do Fitness so it was kind of
like a process of elimination I couldn't
do yoga CU I didn't have the money I
felt like I got uh burned on my SAT prep
thing and so then I just ended up with
well I guess I'll just do Fitness and so
the only disclaimer that I have about
all of this stuff that I just covered so
this is my warning right this is my
warning call for you is that you want to
make sure you're going to be in a market
that's at least flat or growing you
don't want to get into a market that's
shrinking and so if I wanted to get into
retirement homes for old folks that's a
growing Market that's a good thing and
so if you had just recently placed your
grandmother and it was a pain process
for you and then you figured out how to
do it in a way that was really smart and
efficient then you could provide that
solution to other people who are in the
exact same position as you and it
probably urgent and they have the money
and authority to do it you just don't
want to get into selling print
newspapers today so we've covered who
you are who to sell to and you've made a
little bit more money and now we talk
about what to sell so there's four
elements that I like to have in every
product that I sell number one is that
it's Unique and the reason for that is
because I don't want anyone else to be
able to sell it the second is that it's
expensive because expensive stuff makes
you more money per unit third is that I
want it to be sticky I want it to be
things that people don't just just buy
once but keep buying again and again and
the fourth is I want it to be air so
unique expensive sticky air meaning it's
something that doesn't cost me a lot to
deliver and so this is basically the
relationship of your gross profit it
means it costs you a penny you can sell
it for a buck and people keep buying it
again and again and no one else can sell
it but me so let me show you a product
that everyone's heard of that actually
matches all four of these Coca-Cola it's
Unique in that no one else knows the
recipe for Coca-Cola it's expensive Rel
relative to how much it costs it might
cost a few pennies to put this together
really probably the can is the most
expensive part of the product itself and
it's sticky in that I mean literally if
you spill this on the floor it is sticky
but on top of that is that when people
start drinking Coke they don't stop
drinking Coke products for usually their
entire lives imagine introducing someone
to a product and then knowing that they
would literally always buy a product
they'd always go to restaurants and
Order what you had when they go home
they crack up in your thing when they
eat food they drink your products that's
a great business so these are all
exceptional things for making your first
million dollars now if you want to make
a gazillion dollars then you want to add
something else to this which is scale so
if I just need to have 25 clients like I
talked about earlier then I very much I
could just do myself give people time
give people service give people some
skill set and transfer to them that's
unique because no one else can do it
because it's just me I can charge a lot
because it's just my time which is the
cost and if I'm good people pay again
and again and again and so these like a
normal service business with one really
good person meets all four of these
things the issue then becomes scale and
so what a walk you through is different
ways to make any product more scalable I
think that people have a massive
misunderstanding about what it even
means so the first part is that it's not
is something scalable or not it's how
scalable is it so this is really easy to
scale and then this is really hard to
scale and so oneon-one with you is
harder to scale than let's say me adding
use your own School the software
platform and so everything about
scalability has to do with something
called the incremental cost of adding a
customer but all that really means is
how much cost do we have to incur as a
business to bring on one additional
customer the most scalable businesses
bring on an additional customer cost
almost nothing imagine your cell phone
carrier if another person signs on to
their network of cell phone usage it
doesn't really cost them much at all to
add the additional user if another
person comes on to Facebook
it's not that much if another person
comes onto school it's not that much to
add the person and so all of these
things are easier to scale now I will
tell you one of the things that's very
interesting about very scalable
businesses is that typically they are
more demand constrained meaning it's
harder to get people to buy that stuff
whereas there are some businesses that
are very hard to scale think like a very
high service business so like accounting
for example is harder to scale because
it's hard to find really good
accountants and be able to maintain that
quality of service at a high level
scaling a law firm really hard because
it's all about expertise which means you
have to get lots of people in it takes a
really long time to get them good enough
and you always have the risk of them
leaving and so often times very
unscalable businesses have partnership
structures so that people come in so
that they feel like partial owners in
that business but if you're the ultimate
original owner it can be harder for you
to scale again there are massive law
firms it doesn't mean that it's
impossible it just means that it's
harder congrats you're onethird of the
way there and now we move on to level
two and this is level two and we start
with get them to buy and there's two
steps to this Step One is they have to
find out about whatever it is that you
sell and in fact I wrote an entire book
about this thing in $100 million leads
which is getting strangers to to want to
buy your stuff all right this is
advertising the second thing that you do
is you get them to buy so let's start
with number one
find out so there are eight things that
you can do to let people know about your
stuff the first four only you can do the
second four are things that other people
do on your behalf these I call the core
four these I call the
four lead Getters so these are the only
four things that one person can do to
let other people know about their stuff
so you've got warm Outreach which is
letting people who know you know about
your stuff cold is letting people who
don't know you know about your stuff
then you've got content which is letting
people who know you one to many know
about your stuff and then you've got
paid ads which is letting people who
don't know you one to many know about
your stuff these are the only four
things that you can do to let someone
else know to force them to find out
about whatever it is you have to sell
because they cannot buy it unless they
know you exist now if you want to get
more leverage because this is about
becoming a millionaire then you can use
these four things to get lead Getters
now the first type of lead getter is a
customer this is the people who you
actually get to buy now they can get
they can do the core for themselves they
can let people they know one-on-one they
can let strangers know oneon-one they
can be in ads for you or they can make
content that's when they make a review
or they make a post talking about how
great your stuff is that lets more
people know about it the next is you've
got employees employees do the same core
four as you do on your behalf so they do
warm Outreach they do cold out bound
they make ads for you they make content
on your behalf the next version of this
is
Affiliates so Affiliates are businesses
that already have your customers in
their business and so let's say I have a
gym if I want to get more people in my
gym I can make a deal with a
chiropractor and I can say hey I will
send you patience when they dings VES uh
at my gym and then when you have
somebody who wants to lose weight
because that's why they're back hurts
you can send them to my gym so that
creates a reciprocal relationship
between you and another business and
every customer they acquire they can
send to you and vice versa and the last
is agencies so these are other
businesses that specialize typically in
one of these so you've got content
agencies you've got paid ads agencies
you've got outbound agencies in all of
those you'd still have to start with the
core 4 to contact the agency and then
they would use the core 4 to actually
advertise so these are the only things
any person can do to let other people
know and these are the types of people
that become the targets of the core 4
that can then do it on your behalf now
if you're trying to get 25 customers
right like I talked about like you only
need 25 people to pay $10,000 a year for
four years to become a millionaire okay
so the thing that you have and that's
assuming no taxes I'm just going to
assume this is international video uh
the first thing and the easiest is here
is warm out bound you just let people
know who already know you that you have
this thing for sale and that you're
willing to help them one of the easiest
offers is hey I'll help you for free so
that means I'll put 3 hours or 5 hours
of my time to helping you achieve some
sort of outcome and at the end if you
don't mind I'd love to make you an offer
about what it would look to work with me
for paid for money in the future very
simple offer and the thing is is when
you offer 2 three four 5 hours plus of
your time for free a lot of people are
willing to do that and so fundamentally
just think about it like five sales
calls that you do in a row except it's
really smooth and you're just providing
value and that way it kind of gets the
Jitters out for people who've never sold
before and when we actually talk about
how to close I'll cover that in much
more detail but but this is the easiest
way for people to start now you can pair
this with content because then you let
people know publicly hey I'm doing this
thing one to hit me up in fact I'll put
my hopefully first post somewhere over
here this is the first post I ever made
to promote my business and it was
something called the free training
project and I had already worked with
people doing War outbound for a year at
that point I think I had 13ish customer
something like that and then I published
their results and I said hey if you guys
want to work with me I got a few spots
open and that's what became my first
content post to let people know so they
could find out about my stuff now over
time I learned how to run PID ads and do
cold outbound which is like calls emails
DMS to strangers to say hey can I give
you this amazing offer and ads work the
same way except we call them up bring
them in and close them and if you're
starting out this can seem like a lot of
stuff to do you're like oh I'm going to
do all eight until you get to a million
dollars you can just do one of these and
if you're going to do two do content and
warm outbound this is the easiest way to
start it's also the cheapest here you
have to have a really good skill set
this is also pretty cheap it's just
harder to do but if you're going to do
cold outbound you might as well start
with warm start with people who aren't
strangers and then level up to people
who are strangers but these ones are the
least expensive way of getting customers
this is the most expensive but it's
scales quickly so once people have found
out about our stuff great so now they
know but now we got to get them to give
us money so now we got to get them to
buy when I started my gym I hated the
idea of sales I even some someone say
hey you're a Salesman and I was like I
was disgusted by the idea I was like I'm
an academic and so then I had to pay
rent and clearly was like how do I get
these strangers to give me money and
immediately learned sales now over the
last 10 plus years I've done 4,000 plus
consults and it wasn't until I had to
transfer that skill of sales to other
people that had to create a framework
that was repeatable for other people to
also close I remember the first time I
went home for Christmas uh I had an
employee closed their first sale without
me and I got teary because I realized it
was the first time that my business
could make money without me and so this
is the framework I have which is closer
and so this is an acronym and it's very
simple and it's easy to remember and the
reason that one's smaller is not because
R is less important it's because Amazon
Jeffy B decided to only send us five of
the right ones instead of the six so the
first of the closer framework is clarify
why the person is there and so
fundamentally the big advantage that we
have as a business is that these
customers have reached out to us and so
we need to clarify why they're even why
they even took the time to reach out why
did you respond to our ad why did you
respond to my email why' you comment on
my post whatever it is if you have't
engaged leads which means that they've
responded in some way then they've taken
the first step and basically every form
of advertising this exists and most
people aren't cold calling and then
immediately closing and so even in that
situation you would call them said an
appointment and then on the appointment
you would then say hey what made you
take this appointment what made this
worth it for you and then what we're
doing here is we're clarifying the
problem that leads us to the next letter
which is L which is label them with the
problem now that may sound similar but
it's actually very different so what
we're doing is when we label we say huh
so it sounds like you are here you want
to get here and this is the thing that's
getting in the way does that sound about
right and so what we've done is we've
said this is your current this is your
desired and we've established a gap and
sometimes an
obstacle that's a monster okay and what
we want to do is we want to position
ourselves as the sword that can kill the
monster and ultimately get them to their
desire to state but we can't sell unless
we have a gap and that is why CNL are so
important before you get into anything
else so for example you're 200 lb you
want to be 150 50 lbs is the gap the
reason that you're struggling is because
you don't know how to work out you don't
know how to eat let me see if I can do a
spoon here or a fork there you go you
don't know how to eat and you have no
one who's holding you accountable to
making sure that you do these first two
in a B2B setting it's like you're doing
10K a month and you want to make 100K a
month and the issue is that you don't
have ads that are working or you don't
have enough leads that are coming in
that brings us to the next thing once
we've clarified we're there we've
clearly labeled them with a problem
you're here you want to be here this is
the problem then you overview past pain
all right I call this the pain cycle so
you overview past experiences the reason
this is so important is that pain is
what motivates action and so if you
think about motivation in general it's
always from deprivation like I said
earlier so you being overweight and
reminding them of how overweight they
are and the cost of being overweight
this whole time it basically f further
brings them this way it expands the gap
between where they are and where they
want to go and the further that Gap is
the bigger the rubber band is and so
remember this is our amount of
deprivation which is the amount of
motivation to get someone to buy and so
when we do the pain cycle we simply say
what have you done before how' that work
out for you and then the pieces that
they liked you compare you associate
with your solution and the pieces they
don't like you associate with why it
didn't work and why your solution is
different this time once you get to the
end of okay okay what' you do how'd that
work for you oh it's different in this
way oh it's similar in this ways what
else have you tried you keep going
through that pain cycle to continue to
poke on that pain button to keep
expanding the gap between where they are
and where they want to go and the
frustration in the present for not
having achieved it and so once we've
overviewed the pain now we sell the
vacation S A lot of people salesmen this
is when salesman blab this is when
salesman lose the sale and the reason
they lose the sale is because they just
do this massive monologue and that
doesn't work instead what you want to do
is come up with what I call a
three-pillar pitch and each of the
pillars is usually one or two statements
and Then followed by an analogy or
metaphor and so you say hey if you want
to create SEO to get more leads then
it's kind of like and then we basically
make our transition it's kind of like
when you get a paycheck and when you
have an investment account your paycheck
you work and you get paid every single
month but you put a little bit of that
money towards your investment over time
that investment compounds until
eventually it makes you more than what
you make in your active and so SEO kind
of works the same way now realistically
there's really no similarity to getting
traffic to a website as there is between
paychecks and investment accounts but it
Compares something that people
understand with something that they
don't understand so they can learn and
so fundamentally you should come up with
three analogies that explain each of the
pillars of what differentiates Your
solution if I was selling leads which I
came up with a script for mortgage
brokers it was the leads had to be
exclusive they had to be timely and they
had to be qualified and so you just say
okay have you ever got on the phone with
somebody who doesn't have money and
they're just window browsing yeah it's
in the ass totally right and so it's
like cool you just give an example you
give an analogy that explains it if it's
something easy to understand examples if
it's something hard to understand
metaphor and the reason I call it sell
the vacation is that you'll notice that
I'm not actually explaining much about
the product at all and the main reason
is because they care about themselves
they don't care about our product they
care about their problems not about our
product and the only reason they care
about our product is if there's a way
that they know with high conviction it's
going to get them to their goal and so
we want to talk about Maui we want to
talk about Hawaii we want to talk about
where they're going what it's going to
be like when they're at 150 what it's
going to be like when they're making
$100,000 a month not all the steps it's
going to take to get there we're not
talking about TSA we're not talking
about taking your shoes off and sitting
next to somebody who stinks and and
getting on the plane and having bad
plane food cuz guess what all of that
stuff is I just gave you an analogy and
so once we've done s we then go to E
which is explain away their concerns so
at this point after you've overviewed
the pain you say hey I think I might
have something for you would you like to
hear about it they say yes and then you
go sell the vacation once you've sold
the vacation you ask you say you're
ready to get started does that sound
good to you any kind of closing question
you want fair enough great now if they
then say anything but yes I want to buy
you then go to E explain away they're
concerns and so the way that you explain
away they're concerns is that typically
there's three big categories so people
blame their circumstances for why they
can't do something they blame other
people for why they can't do something
or they avoid the decision altogether
which is basically blaming themselves
they give their power elsewhere and So
within that you basically have six
categories of questions that fall
underneath so one is they say they don't
have the time I'm too busy right now
now's not a good time the second is they
say I don't have the money to do this
right now this is too expensive this is
outside of my budget number three is
they say somebody else has the
decision-making Authority all right the
fourth is they say I'm not sure this is
right for me this is a fit question all
right which is really just means that
they have a preference that isn't
aligned or that they believe is in
aligned with the product that you sell
oh I have to follow meal plan I don't
want to count Cal
five is they blame other people's past
experiences with them and so this is one
that we overcome with something I call
ber you twice but it's other people's
products then finally they
avoid this is a stall this is sounds
similar to this but it's actually very
different this is I don't have time this
is give me time that covers the
explaining away the concerns there's a
hundred other closes I give you but
those are the theories behind each of
them finally we have to reinforce the
decision so now we have somebody who's
made the decision they've choosen to
given us money which is amazing we love
them for that but the thing is is that
sometimes people change their minds when
they go away especially if you're good
at sales and so when you have the r what
we're doing is we're reinforcing that
they made a good call now this actually
Begins the handoff to onboarding all
right so when you onboard a new customer
this is what happens in the first 24 48
Hours post purchase and what you want to
do is make as many promises as you can
in that time period and keep them so
that they feel and we're talking like
hey this is what's going to happen next
in the next 30 minutes this is going to
happen right you're going to get an
email and then you can click that link
and then this is going to happen next
and you want as many of those things
that you tell them to have happen to
happen and from this we do something
called bamfam which is book a meeting
from a meeting and when you do bamfam it
means that no one ever gets uh left in
the cracks no one falls through and so
the reason that a lot of customers
cancel is because you said someone's
going to reach out to them and they
thought it was going to take 30 minutes
you didn't set the expectations it takes
two days and they're like you know what
this isn't for me I actually I've
changed my mind right instead you want
to always have them it's like a Baton
Pass it's like sales passes to
onboarding onboarding one passes to
onboarding two onboarding two passes the
senior engineer or the media buyer or
whatever it is that you do to deliver
results for people and at that point
you've kept them through the process and
you've reinforced you know what these
guys are on top of it they're legit and
if you want to make this extra
magic what you do is you you pass on the
notes so you never want a customer to
repeat themselves and so the way you do
that is that you take notes on every
call and so if you get on a sales call
for example and the setter had notes
then you can start the call being like
hey I know you talked to Andrew and you
said this this and this and these are
the problems you're struggling with
they're like wow these guys are on it
and when that goes to onboarding and
they have their onboarding conversation
with Sarah and then Sarah says oh I know
you talked to Andrew and you talked to
Jeff and you said these things they're
like wow this business is legit very
small change massive Improvement in
terms of how satisfied customers will be
and because this is all about making
more money the likelihood that they
actually Ascend and buy more in the
future yeah and if you're a beginner
you're the one taking all of these calls
so at the very least take your own notes
and remember what you're talking about
with these people and if you have
multiple customers review the notes
before you get back on the call with
them close more deals make more money
save the world we got them to buy we got
our first customers we've made a little
bit of money now we get them to buy even
more so now we got to get them to buy
more times and specifically this is all
the different ways that you can make a
customer worth more money to your
business
and so the idea is that the customers or
the businesses that make customers worth
the most are the ones that make the most
money unsurprising but there are eight
specific ways that you can do this with
literally any business so the first way
is that you can increase the price so
for this example let's say I'm selling
gum all right so I'm selling gum and
what I can do is instead of charging $5
for this I can charge $6 it costs me the
same amount but I've now made more money
the second way that I can do this is I
can decrease my costs all right so if
this thing was originally $5 and it cost
me a dollar to make I can buy more
inventory I can do advances so that I
can get this down to0 50 Cent so I still
make 50 cents more per box that's the
second way that we make uh any product
more profitable for us the third way we
can do this is we can get them to buy
more
times so right now I say hey you want to
buy my gum great but wouldn't it be cool
if you got on a gum subscription so you
get one of these every single month the
fourth way is to get them to buy
something else that's new or different
all right so right now I'm selling you
this gum but wouldn't it be cool if you
got these Nicorette patches as well so
wouldn't these patches go great with
your gum it doesn't matter what you sell
you could have burger with fries you
could have an iPhone case with your
iPhone there's always something else
that pairs or is complimentary to
whatever your core offer is and
sometimes you make more profit on this
thing than you do on the main thing the
fourth thing that you can do is get
people to buy more quantity all right so
this is when the number goes up so
currently you're buying one box what if
you bought three boxes of gum and so the
difference between this and this is this
is how many times they're buying over a
period of time this is how we're
increasing the quantity all at once so
this is think about this as bulk
purchases buying more volume the second
way that we can do this is increase
quality so now we say okay how do we
sell you a better version of this so
these ones are 2 milligrams of nicotine
these ones are 4 mg so if I have a box
of the same size but i s you a 4 migr
version then it might be a higher
quality or maybe the nicotine in this
one comes from a magic plant in the
Amazon either way we sawell a higher
quality version if I were selling
burgers instead of selling mystery meat
you could sell sirloin burgers right if
you're selling iPhone cases it would go
from plastic to Kevlar it would go from
uh plastic to metal or wood we have a
higher quality version of whatever it is
that we sell and if you're selling
services there's a zillion ways you can
make more valuable but it's like you
have higher uh quality Representatives
who are going to be answering your thing
you have priority support you get
answered first uh you have extended
hours so you get more times all of those
things are different versions of higher
quality the next is that you can do the
equal opposite you decrease the quantity
you decrease the number that someone
buys so instead of
buying 160 pieces you just buy 20 so you
can have a down sell now the reason that
this can make you more money is that it
actually makes you more money per person
you talk to not per customer and so with
this is you make money here when you
take a no and turn into a yes so it's
taking a no a small no turning into a
small yes and then later you have all
these other things to turn into a big
yes and then finally we go from
something that's higher quality to
something that's lower quality so is
there a version of your product that
could be the the the discount version
the economy class version and with
Services it's literally the equal
opposite you have Junior reps who answer
it you have extended times you don't get
calls you only get chat support it's all
just thinking what are different ways
all the components and features that I
have with my service most times if you
have a service you just have you haven't
even defined all the stand standards you
have you just need to think through
every single thing what about speed what
about quality about who they're talking
to what about the medium they're on is
it one to many is it one-on-one is it
recorded is it live like all of these
things are factors that make something
more or less valuable and so with
physical products the same idea except
it's usually going to be the ingredients
and how new it is this is an older model
those are all things that decrease the
quality and so when you're looking at
this these are the eight ways that you
can get any customer to be worth more
and so if you're a beginner you want to
know the easiest one of these to make
more money charge more for the exact
same thing and often times when you're a
beginner you want to start low so it's
okay but what I would recommend doing is
what I call the five to five to five
model so basically every five you sell
you bump it by 20% all right very easy
so if we're at $5 for our gum here the
first five people if everyone buys no
problem we bump it to $6 so $5 goes up
20% it goes to $6 and if the next five
buy no problem then we go up to 720 and
we keep going up by 20% and you can keep
doing this Forever Until people stop
buying and so then you just look at how
much gross profit do I have times the
conversion rate and that gives you your
perfect price and so I'm telling you you
might be worried about what if what if I
sell fewer people you just have to do
the math and you never discount in order
to make a sale you can choose to test
your price but you have to stick with it
for the number that you said you would
the second easiest one of these to do
besides obviously raising the prices
over time is just getting people to buy
more stuff this one requires nothing new
from you this one also requires nothing
new you're just asking them to buy again
next month this one gets them to buy
more today and so these ones are among
the easiest that you can do as a
beginner this one decreasing cost super
valuable for you usually takes more time
for you to negotiate with vendors get
economies of scale things like that but
still valuable all these other things
are things that you add to the business
which creates more products not say
anything wrong with that but it's
typically a more advanced move so these
three right here are the ones that you
want to focus on if you're a beginner
and this is a concept that you should
understand how to master this is the
language of business and so it doesn't
matter what we're talking about you
should be able to apply all eight of
these to anything so if I'm selling
whiteboards I say okay I can raise the
price of this whiteboard next is I can
get people to buy more whiteboards over
an extended period of time wasn't that
one great wouldn't it be great if you
had more of those for your team or I
could get them to buy five whiteboards
today one for every room in their office
right uh or I could say hey this is a
you know flimsy metal uh whiteboard let
me get you a wood one it'll look better
on camera or I can make it higher
quality by saying hey I won't put my
logo on yours so that it's not in all
your camera shoots the next is I can
decrease how much it costs me to
actually manufacture each of these
whiteboards this also increases my
profit the next thing is I say okay you
got these whiteboards but what about
your paper right that you know what
would go great with your whiteboard
rolls of paper the next is okay uh can I
decrease the quantity okay so instead of
buying five you buy one right and then
in terms of quality we go the other
direction so instead of buying this wood
one you buy this metallic one and if
you're starting with metallic then maybe
you should go from this metal one to
really flimsy metal or an older model
you should be able to apply this to
anything you sell and once you've
mastered this you can become a master of
increasing the lifetime value AKA how
much people spend with you imagine this
bucket is your business and imagine this
is new customers coming in the door if
you don't fix this leaky bucket they're
never going to be able to stack up and
so once you fix it you can flow all as
much as you want but now you're keeping
your customers and your Revenue
compounded and if you do that for a long
enough period of time while we wait for
my friend over here to fill up the
bucket this is a cyber truck and this is
100 Grand and in the next 30 days
September October November December each
month in 2024 I'm giving one of these to
someone who's watching this video right
now and so the way that you win this
stuff is by building the largest group
on school within the next month and last
month's winner just to give you some
context got you about $50,000 per month
in recurring revenue and we make it
pretty easy so right now one out of two
people who starts a community on school
that's paid makes at least $1 online and
often times it's a lot more than that in
fact right now the average is
$1,360 per month so no this isn't going
to get you on the Forbes list but it can
help get you started and so if that
sounds at all interesting the best part
is you can start your own community on
school absolutely free going to
school.com games all right join the
community have fun make money save the
world and I'll see you on the other side
and if you keep doing it over dive
you'll have more money than you know
what to do it and you'll be overflowing
with customers and cash and that's how
you create a cash
flow explosion and once you got people
buy it and people are buying again and
again again now you're making a little
bit more money but the next thing you
need is going to be help and so you're
going to have to have other people help
you along the way cuz this is how you
scale and these are two mannequins that
represent employees so let me share a
framework with you that's really
expanded my vision in terms of how
companies grow and this has taking me
years to develop but fundamentally I see
the size of a company is always going to
be limited by the number of brains or
the cumulative knowledge that exists
within the company and so that should
make some sort of sense like the amount
of total knowledge that that exists is
going to be the potential of the
business which is why as entrepreneurs
you have to learn more because if you
make your brain bigger and you make your
knowledge base bigger look how much
bigger the company can get but the thing
is is that you don't realize that you
can get three or four or five other
people's lives built into the business
by saying hey I don't need to learn
Finance I'm going to go find somebody
who's got 20 years of Finance experience
in this industry hey I don't need to
learn HR and recruiting Because I'm
going to go find somebody who has that
experience because what happens is once
you do that the potential of the
business you can't even see it because
the peak would be all the way up here
and so this is the big unlock this is
how Steve Jobs built the biggest you
know one of the biggest Tech companies
in the world it wasn't because he knew
how to build the iPhone he knew how to
build the
team
sh that could build the iPhone and so
the most valuable skill set
fundamentally that you can have as a
business owner is the ability to get
other people to do stuff for you and so
on one level you have the influence to
get them to want to do that thing for
you and then everything else after that
is enabling them to know how to do the
right stuff and so the first is the
persuasion side now that I think I
covered during the closer stuff that's
going to be the values you have what you
present and if people really admire you
and that's where you have to continue to
level up yourself this is the who you
are part in order to attract the best
talent but once you have good talent how
do you make sure that they know how to
do the right stuff and so I call this
the Management Diamond all right so it's
very simple so I reversed this from if
somebody doesn't do what I want them to
do why would that be the first reason is
they didn't know that you wanted them to
do it at all because you hadn't told
them or you weren't clear about it now
if they know that you wanted them to do
it it they might not have known how to
do it because they're like okay I got
that you wanted me to do it but I just
don't know how the third is that they
knew how they knew that and how but they
didn't know when you wanted them to do
it by so they could have just been
totally able they just didn't know that
you wanted it right now the next is they
knew that how and when but they didn't
have any motivation to do it they didn't
know why you wanted them to do it and so
when I think about each of these things
you can actually solve this so you solve
this through Comm so this is through
clear communication where you include
the deadlines which is here what you saw
for this one is that whenever you
include what you want someone to do you
give them a Time duration and then you
ask them how long they expect it's going
to take to solve the how what we do is
we have the 3DS which is document which
is you figuring out a checklist of
exactly what you do because often times
when you're a beginner or when you're
starting your own business you have to
do every single job and so you know how
to do the job better than they do the
problem is in the beginning you're more
unconsciously competent or you do a lot
of other things that you don't know that
you do which is what makes you
successful you're like no one can sell
like I can sell what it really means is
I don't know how to teach anyone like I
can sell and so that means it's a
deficit on you not a deficit on them and
so the first thing you do is you
document step by step through a
checklist what you do to get the result
whether it's making a website or it's
doing outbound or it's doing sales or
making content whatever it is you
document step bystep what you do the
next is you demonstrate it which means
you do it in front of them using the
document so you say hey let me show you
how I'm following the checklist and then
look at what happens so I follow the
checklist and look at what happens and
they gain trust in the checklist in the
documentation and so after you've
documented and you demonstrated in front
of them then they duplicate which means
they now do it in front of you using the
same document and if they get the same
outcome as you do using just the
document then you have duplicated the
skill and now they can do it and so they
know how now finally the why is a
question of motivation so
I'm not going to be able to solve human
motivation in one video but what I will
say is explaining and leveling up what
this thing does within an organization a
lot of people do want to do a good job
and they do want to be contributing
members of society but a lot of times we
haven't explained how what you do here
feeds this overall machine which
hopefully does some good in the world
and so it's simply explaining in simple
terms how customer service for example
it's like hey you do customer service
and you respond to tickets using this
process
we get happier customers happier
customers stay longer pay more and refer
their friends and if we want to have
this big mission one we want to make
sure we're delivering to the people that
we're currently serving but on top of
that we want to be able to help more
people over time and so you very much
are important to our whole business to
success and so if every person in the
organization knows how they tie what
they do directly or indirectly to you
being successful as a business then they
have a larger motivation for why they
should do it and so if you ever have a
conversation where you're like why is my
employee not doing anything I would also
suggest using this as a framework
because then it's not none of these
blame them you say hey John I asked you
to do this and then you didn't do this
and so help me understand was it that
you didn't know that I wanted you to do
it because I see this message here so
was that part unclear is it that you
didn't know how to do it was it that you
didn't know when to do it by you didn't
know why to do it and let me give you
the bonus number
five was there something blocking you
and so this is actually one of the most
common ones of the diamond because what
it is is for example hey I could have
the best chef in the world and I say hey
make me an omelette he understands what
baking omet is he knows how to do it and
I say make it for me right now he's
motivated because he's on live
television what's the problem he ain't
got no eggs and so the whole point is
and I had this I'll give you a real
example with my team I was like Hey guys
why are you guys not getting these edits
out on time and they were like ah we
want to spend more time at home we want
to spend it at the headquarters and I
was like I built this massive
headquarters for you guys like why are
you not spending time here and so it
turned out they knew how to do it they
knew that I wanted it they knew when
they needed to buy they were very
motivated to do it the problem was the
internet at our headquarters wasn't fast
enough they were way faster at home and
so we spent 200 Grand to get Google
Fiber drilled down into the building so
we get a gigabyte a second now and now
they all edit here and so the thing is
is a lot of times as a as a boss or an
owner you have to see what are the
things that are blocking because most
people do want to do their jobs but this
little five five five-part framework
this diamond is one of the most valuable
tools I have because this actually makes
a productive discussion cuz either you
can solve the constraint for them or you
find out that you've got somebody who
despite all of these thing still chooses
not to do it in which case maybe it's
not a good fit for them so we had a a
new sales rep that came in uh and we
were really excited about him and he you
know he seemed really sharp really
understood what was going on and within
three days he was doing all of the stuff
but he came to us and was like I really
hate this now that's something that I
can't fix if you hate you know talking
to new people and talking to customers
or talking to prospects all day long
then sales is probably not for you now
that being said we also want to break
down like hey everything's got periods
of suck you got to learn skills things
like that but if I check every one of
these boxes and someone says checks all
of them and nothing's stopping them
except for themselves then it makes the
conversation really easy it's like dude
I don't want you to do something you
don't want to do no worries so boom why
do I bring a tripod here if you're like
what are the three pillars of business
these are the three pillars of
businesses Alex understands them the
first the for the spear is acquisition
that's marketing and sales that's
letting people know about your stuff and
getting them to exchange money in order
to get it the second pillar is
delivering that stuff so someone
advertises someone sells and then
someone has to create and deliver the
iPhone so once you advertise and you
sell now you have to deliver the product
you got to give the person the iPhone so
that comes from the design that's
product that's distribution that's
delivery in service businesses that's
customer success that's onboarding
that's delivering the service itself
that is all the stuff that goes into
this delivery it's how you fulfill the
promises that acquisition made the third
one and this is the one that a lot of
people forget and this often limits
businesses is operations so this is
everything else that's not included in
these two but that support these two so
think it legal Finance payroll HR
recruiting all of that stuff supports
these two other functions these are the
core value creators in the business you
got a market and sell stuff you got to
deliver that stuff but everything else
that has to exist in order for these two
to continue to function you got to pay
taxes you got to pay payroll you got to
send people checks right these are all
things that must exist but most
entrepreneurs are severely lacking and
this is sometimes where the biggest
outside help can come and help expand
the overall business so that the
potential of how big the thing is that
you want to build can get so much bigger
and then you just keep adding more and
more people to this and you keep
expanding the stool but the Three core
pillars of the business remain unchanged
and so if these are the three pillars of
the business and you want to take a
partner on so let's say that I want to
take this partner not necessarily a life
partner but I want to take a partner on
in my business because this happens a
lot really early and usually it's
because there's so much work and you
have no capital and you're like well you
know what if two of us work at least
twice as much stuff will get done the
problem is most Partnerships come from
two guys or two gals who are buddies and
say hey let's get like we have fun
hanging out let's and we love talking
about business let's do business
together but the problem is let's say
they both love marketing and sales or
they both love product or they both love
operational stuff just like people and
things like that well then you actually
are super uh topheavy and what happens
is this goes like this because you're
over over indexed on one and the tripod
Falls over and so you want to be
balanced in the business so that the
business can continue to scale
proportionately across all functions and
so if somebody is going to partner with
you they have to have a skill that you
don't have time you don't have or
Capital you don't have and from the
skill perspective it means they have to
have one of the other legs of the stool
that you don't have from a capital
perspective that might be the thing that
flows into the business that allows
these people to work in the beginning
when it might not be as profitable or
for you to buy inventory for you to buy
a machine that you're going to do the
equipment with or let's say it's you
sending the capital somebody else is
going to be running the business on your
behalf as an operator or owner now
they're putting in time or energy that
you don't have because you're doing
other stuff congrats you're now done
with level two more money and now it's
time to go to level three
so here we are on level three and I want
to Quick take a quick pause to invite
you if you're a business owner doing
over a million dollars a year and you'd
like to scale to the next level I want
to invite you to come out to our
workshops here in Vegas to my
headquarters to meet with me and my team
each of my functional directors who are
working with companies in my portfolio
doing hundreds of millions of dollars a
year to help you
have advertising go from 1 to 10 we know
what it looks like to have delivery go
from 10 to 30 we know what it like looks
like to have Finance go from 30 to 100
and so we can help you DEC constrain
those things and help you ultimately
scale if that sounds at all interesting
I'm sure the URL is around here and we'd
love to have you out otherwise keep
enjoying the vid let's go to the first
level of level three keeping your
advantage so things are working people
are working for you you're making sales
now we want to expand the gap between
you and everybody else and if you're
like why is there a big seesaw here I'll
explain in a second but the fundamental
Crux of all this this is the big word
leverage which is let's define it how
much you get for what you put in so
leverage doesn't mean good or bad it's
just how much you get now if I do this
many times and let's say I'm pumping
something then I'm doing more
repetitions and the amount of Leverage I
get is proportional to the size of this
lever right now if I want to get more
for what I put in then it means I would
extend this lever all the way out here
and i' would get more for every push if
I wanted to have less which why would
you I would put my heads here and I have
a much smaller lever so it's much harder
to do the same amount of work and so how
much you get is leverage High Leverage
is I get a lot for what I put in low
Leverage is I get very little for what I
put in and so there's lots of forms of
Leverage in a business and the idea is
that you want to have as many working
for you at the same time as seemly
possible so I'll give you a couple
examples so one one that I've built mine
on is brand it's reputation so that
means that if I have a brand versus is
not having a brand the brand gives me
leverage in a lot of ways so number one
is I have higher click the rates if I
run an ad with a trusted figure then
more people will click than otherwise
would have normally without a brand that
means I get more for what I put in high
leverage second I get higher conversion
rates and so the people who click also
have a higher likelihood of opting in
following through and ultimately
buying and once people do that then
they're able to say yes or they're
willing to say yes at higher prices
another form of Leverage is people if I
can get more for what I put in I only
lived one life one lifespan but I can
get somebody else's life basically their
experience to help Propel my business
towards my goal then I get my life plus
their life and so that gives me more
leverage so I want to make this real for
you so imagine you see an advertisement
for this blank t-shirt all right are you
inclined to buy it probably not unless
you're just in the market for white
t-shirts but all of a sudden if you see
this one right next to it you might have
a much higher likelihood of clicking
converting and then buying at a higher
price so literally if these are side by
side this might be $30 and this might be
$5 and you still might be more likely to
buy this one that is the leverage that
bring gets you because they for the same
ad and the same dollars get more sales
for what they put in and you can see
leverage everywhere if I write code and
I write it one time and then millions of
people use it that gives me leverage I
did work once people use it millions of
times so for example if I write a book
then it takes me x amount of time to
write the book but once the book's
written I don't have to work again for
the book but if people keep telling
their friends about the book and saying
it's good then it continues to sell
copies and spread the word that's
leverage I'll give you another one so if
I get if I do this in the beginning I'm
probably really inefficient at it but if
I do this for days and days on end I
probably realize I got to put my weight
on it you know what I can lock my arm
out so I don't have have to use my
muscles and I can just lower my weight
on this thing so my skill gets better
and so I get more per unit of effort and
so skill is also another form of
Leverage and so one of the most
important relationships to get leverage
earlier on in your career is
understanding what work is so work which
is what you do every day is
volume times
leverage
equals output
which means work equals output so it's
not about how hard you work it's about
how much you get for the work you do and
so if I have a lot of Leverage awesome
but if I have a lot of Leverage and I do
a lot of repetitions then I get even
more output and so the thing is and this
is what people don't understand is in
the beginning you need to do volume
because volume gives you skill skill is
leverage and so for example let's say
I'm doing cold calls in the beginning of
my career if I do 100 cold calls and
somebody who's been doing cold calls for
10 years and has an amazing skill set
does 100 cold calls he's going to get
more appointments booked than I will and
so for the same work same volume he's
going to get more output so in a very
real way he worked more than I did he
got more for what he put in and so there
is a reciprocal relationship between
volume and leverage because the more you
do the better you get and the better you
get the more you like it the more you
like it the more you do it and so this
is The Virtuous cycle of work but you
have to get started in the beginning
when you have low leverage and so the
only thing you can do is compensate with
volume it means you have to do a
thousand door knocks a thousand cold
calls a thousand cold emails a thousand
pieces of content so that you can start
getting good and so one of my favorite
and least favorite sayings is work smart
not hard because the reality of it is
that you have to work hard in order to
work smart and so now we just finished
keeping your advantage so you've made
even more money and you're continuing to
scale your business and so now we move
on to the next part of level three
sticking with it because if everything's
going well the only thing that can stop
you is you and so I'll give you one of
my favorite quotes from Charlie Munger
which I'll paraphrase he more or less
says compounding is the eighth wonder of
the world and the objective of
compounding is to never interrupt it and
so he talks about this to stop people
from day trading and getting people buy
in and out of stocks he says you should
be willing to buy a company and have the
stock market be closed for the next five
years because you bought a share of a
company and you believe it's going to go
up for a long period of time so that's
why you buy high quality businesses but
the concept of not interrupting
compounding is one of the key
philosophies that I have around focus
focus is one of the most important
things of entrepreneurs and if you talk
to the most successful entrepreneurs
they talk about ruthlessly focusing for
long periods of time and Steve Jobs was
famous for grilling his direct reports
and asking them when he would start
meetings what have you said no to lately
and so I Define focus by the
quality and quantity of things you you
say no
to so if you say yes to many things then
you are not focused if you say no
hypothetically to literally everything
except for one thing you would Define
that person as incredibly focused
probably obsessive but like imagine a
kid for example who did nothing but play
video games all day he's incredibly
focused on video games he doesn't eat he
doesn't sleep I'm saying hypothetically
does nothing else he's incredibly
focused at some point I'm not saying you
do that but it points out the
hypothetical stream of what Focus really
is and so some people claim to be
focused but it's not are you focused or
not it's how focused are you and so if
you followed any of my stuff at all I
talk about the woman in the red dress
and the reason I love this analogy is
it's perfect so in The Matrix there's
this moment if you haven't seen the
movie where Morpheus who's the guide or
the teacher in the story is teaching Neo
the main character about how the Matrix
works and so they're walking through a
crowded City he's talking about
something and he says were you looking
were you listening to me or are you
looking at the women in the red dress
and he says 'what and he says 'l again
and he says and when he looks again
there's a gun pointed at his head and so
he says if you're not one of us you're
one of them and so these are agents
agents basically are the things that
disrupt everything in the system and so
what appears to be a woman in the red
dress what appears to be this shiny
object this amazing thing that catches
your attention this big opportunity you
think you should leave your current
thing for that is often an agent in
Disguise meant and sent to kill you and
destroy your progress and your focus but
let me tell you how deceptive this is
and this is what it looks like for
entrepreneurs and so there's five stages
that I think entrepreneurs go through in
the beginning you have uh zero right and
then you have
uninformed optimism which means that you
don't know what you're talking about but
it looks really good this is the grasses
greener on the other side then you have
informed pessimism which is now that I
got into it oh it actually isn't that
easy to make money in this thing even
though my cousin's doing he's actually
been doing it for five years there's all
these other things I didn't know about
but now you know about it you're like o
this is actually a little harder than I
thought then if you keep going you have
the valley of Despair this is where
everyone gives up and everyone stops
trying now what happens most times is
they never get to step four what happens
again well I'll tell you step four and
then I'll tell you what happens to so
step four is you get to
informed optimism so now remember the
optimism here now you're informed about
it so you're like okay I get what it
takes to make this work and I can see a
way for me to win and then finally you
get to here which is you achieve the
goal right you do what you set out to do
to begin with but you have to go through
the valley of the spirit this happens in
every single business especially when
you're starting out but what happens for
most entrepreneurs is dotted
line they start it all over again and so
they say oh you know what I'm GNA go
find my point of uninformed optimism
because there's another thing it's not
Drop Shipping it's crypto it's not
crypto it's wholesaling it's not
wholesaling it's insert whatever
opportunity you think is quick and easy
and I promise you none of them are
because think about it this way if
something were quick and easy everyone
would do it and already be winning so I
want to break this myth in half because
I think it's so important because it is
the number one thing that destroys most
businesses is disrupting compounding and
I think part of the reason that this
myth is proliferated is because the
people who are selling you that myth
make money on you buying their solution
and so what they is they say oh the
average millionaire has seven income
streams right and so you think oh
millionaires have seven income streams
therefore I have that's like saying oh
the average billionaire has a private
jet therefore I should fly private to be
a billionaire it confuses sequence it's
not that you get tall when you play
basketball it's that tall people play
basketball and so for you in your career
most people who make a lot of money
Focus all of their eggs in one basket
and then once they've achieved all the
success then they diversify but after
they diversify their returns go down not
up Bill Gates for example if he had
never sold his Microsoft shares right
now would be a trillionaire he'd be
worth one and a half trillion today
instead he's worth 100 to 150 billion
and the main reason is because he
Diversified after he focused all of his
wealth building into Microsoft now Steve
Balmer his number two man in the very
beginning had a much much much smaller
share so I think Balmer has like two or
three 3% a tiny slice of Microsoft Bill
Gates had 49% when they went public so
he had half the company and so today
Steve Balmer his number two is almost as
wealthy as Bill Gates because he has
stayed focused this whole time and never
liquidated his shares and continued to
grow in Microsoft and so they want to
feed you this myth that somehow 17th of
you splits between all these things they
say try a bunch of stuff see what works
the reality is any of these things can
work if you concentrate all of your
attention into one then see overflows
then that is how you get an overflowing
opportunity you keep working it you keep
doubling down on it and you say no to
the woman in the red dress because you
know that she's just the value of
Despair she's just an agent in Disguise
and if you stick with it you will win
and that's the thing that separates the
people who win from the people who don't
is that they can just keep saying no to
everything else they keep saying yep you
know what that's an amazing opportunity
for someone else that's an amazing
opportunity for someone else and let me
show you this mathematically so let's
say that you're in your third month your
third week your third year whatever
increment you want of you developing
some skill right you continue to get a
little bit better every single year fine
now you see this new opportunity that
you're a ground zero for and you think
man I think I could grow faster by doing
this thing and so you have to reason
let's say that you're on year four of
opportunity number one that instead of
saying okay well I'm going to go to you
know I'm going to go to my fifth year so
you're not you haven't done this yet so
this is hypothetical instead you say you
know what I'm going to start this new
opportunity and new opportunity I'm
going to be here which is higher than
where I was before and it's going to be
a double the rate okay but now I'm on
year two here guess where I'm going to
be if I'm on year two past this on this
opportunity and so you can't compare
year two here to year two here you have
to compare year two here to year five
here and so this increment I promise you
it's significantly easier to take
something from $10 million to $15
million than it take from zero to five
in a year so you finished keeping your
advantage and sticking with it and
you've made even more money we just keep
making money we're crazy and so we move
on to the last and final step of level
three get better and keep getting better
and so one of the key skills that I've
developed over my career that I want to
share with you is the ability to learn
but not in the way that you might think
traditionally
and so what happens is sure in the
beginning you want to get from courses
and experts and things like that but
over time what you want to double down
on is volume because what volume does is
it gives you data and then data you can
do something called a common factors
analysis so let's say that I make 10
pieces of content okay these are my 10
pieces of content hopefully that's
10 all right now that means that within
those top 10 pie those 10 pieces of
content there's going to be a top one
and there's going to be a bottom one and
this is going to be the one that did
better and this is going to be the one
that did the worst and so what I want to
do is see what did the top 10% have that
this one didn't have what are the
discrepancies between these two and
those discrepancies are the golden
nuggets that build together to help you
acquire skills and so one of the things
that people shy away from in the
beginning is how low leverage you are
you have no Capital you have no friends
you have no other people who can help
you out so it's just you and when you
start you suck but the thing is is that
the pain of how bad it is and how hard
it is in the beginning is the thing that
forces you to seek out better ways to do
it and so you have to go through that
pain so that you can seek out these
improvements and then all of a sudden
you figure out a new way to use that
lever that takes on Tenth of the time
you figure out how to tweak your email
headings to get way more open rates or
you tweak your offer to get way more
responses or you make your ad hooks
better so you get higher you know people
clicking the ad all of those things are
skills and so this pain and this volume
and this is the poor part getting a
feedback loop going is what creates
skills so it's not just doing a lot you
have to do a lot so that you can see
what works so that you can get better
fundamentally common factors analysis is
how I learn everything because a lot of
the skills that I have to learn now are
things that no one teaches there's no
courses for what I for what I'm trying
to learn now and so I have to just try a
lot of things and see huh what are the
top 10% have in common and this works
for figuring out your customer Avatar
you're like hey what are my top 10% of
customers what do they have in common in
terms of what they did and who they are
what are the bottom 10% what did they do
and who are they okay well I want less
of those and more of these and so this
is a continuous loop that you do on your
customers the same thing works in your
content what are the top 10 pieces and
the bottom 10 pieces what are the top 10
ads and the bottom 10 ads what are the
top 10 uh perfect sales scripts in terms
of recordings what do we say differently
on those calls than we said on these
calls it literally applies to everything
and that continuous loop of progress and
feedback is how you get better and that
is the core of Leverage from a skills
perspective and so right now if you're
watching this video maybe a million
dollars is your goal and if it is your
goal then you have to deconstruct it to
what you need to do remember from the
very beginning and what are the actions
that I have to take and you take these
actions so that you can look at what
worked and what didn't so that you can
get better and so this is fundamentally
how you create goals and know this isn't
your mama's goal video because you've
already seen that this isn't about smart
goals this is about your relationship
with your goals and this is something
that I don't see people talk about but
you have a relationship with your goals
it is something that you're willing to
sacrifice in order to keep and so when I
think about this for myself I had a
conversation with Lea for example where
I said you know what I Define love as
what you're willing to give up in order
to keep something and so you say hey man
that guy Rod he must love that car
because he's he continues to keep
working on it over and over again it
still doesn't work he must love that
thing because of what he's willing to
put up in order to keep it and so if we
think about that as the measuring stick
of how much not do I love something or
not but how much do I love something
then you can see in a very real way how
much do you really love your goals are
you willing to lose a friend over it are
you willing to give that up in order to
keep your goals are you willing to give
up a girlfriend for it in order to keep
your goals are you willing to give up a
wife or a spouse for it in order to keep
your goals for me the answer is honestly
yes and the reason that I have such an
intimate relationship with my goals
sounds kind of weird is because my goals
have fed me more than anything in my
life they have helped me
become the person that I want to be
because they have oriented my behavior
to help me do the activities that create
the character traits that create the
outcomes and so I use that as my filter
for the people who are in my world so if
someone comes in my world and I think do
I need to sacrifice my goals in order to
keep you now a lot of times it's not an
allout sacrifice sometimes I just ask
the question is my goal achievement more
or less likely with this person in my
life and often times it's just neutral
which then for me is okay well then
you're going to drain me of resources
that don't get me to my goals that I
could otherwise those marbles that I
could otherwise keep focused on the main
thing which means I have to say no to
this because I choose my goals over that
now this may sound extreme and that's
because it is but you can't want to be
exceptional and not be willing to be the
exception it is normal to be not normal
to have not normal outcomes if you can't
expect this is a preference thing from
the closes you can't want my outcomes
but want it your way if you change the
variables you change the outcome and
what I can tell you universally is that
the people who achieve outsized returns
are the ones who did outsized work and
more specifically made outsized
sacrifices in order to continue to be
able to pour in to that which mattered
most and so I'll I'll be real with you
for a second I've hit my million dollar
goal I hit my $100 million goal and now
I've been pretty public I'm trying to
document everything that I do to hit a
billion and Beyond and at the same time
the billion dollar goal matters a ton to
me and at the same time not at all
because the billion dollar goal is not
because I want to hit a billion dollars
for some reason I can't buy there's
nothing I can buy at a billion that I
can't really buy now that would that I
can consume as an individual sure maybe
I buy companies or buy big buildings or
something like that but it doesn't
actually change my day-to-day living but
the reason that I hold on to that
billion dollar goal is because I would
like to meet the man who I would become
who's able to achieve that and so for me
the quantitative measure of what my
business has grown has been an indicator
of my personal growth and so I have a
belief that either your business is
growing or you are and so when your
business is grow is going down guess
what you're usually growing a ton
because it's painful and that's why they
call it Growing Pains not growing Joys
it's not fun but the thing is is that
most things in life aren't fun decline
is painful stagnation is painful growth
is painful the question is which of
those pains get you closer to where you
want to go follow the steps in this
video and hit your million but you
should want to make as soon as you hit
the million set it for 10 and as soon as
you had 10 10 set it for 100 not because
you need the money because but because
you want to meet the man or woman who's
capable of making that a reality the
biggest gains in life the best players
in life play Infinite games because the
objective isn't to win you're not going
to win at business like take it to the
Natural extreme let's say you become the
richest man in the world let's say
historically at the richest men none of
them was the richest man for their
entire lives they touch the top for a
brief second for a year for two years
and then they disapp appear or they die
so it's this whole idea that's not even
true you don't win the point of business
is to stay in business that is why it's
an infinite game the point of marriage
is not to get married it's to stay
married the point of fitness and health
isn't to get fit or get healthy it's to
stay healthy and so most of the games
worth playing in life are not finite
games they're infinite and so if you can
adopt this learning mentality then there
is no end because you are the asset you
are the outcome and so by saying that
you are finished playing means that you
are finished becoming and for me I don't
want to stop getting better until the
day I die so we started your journey to
your first Million by figuring out what
skills you needed to have what knowledge
you needed to know to get started then
figured out who you were going to sell
to then what you were going to sell them
then figuring how to advertise and close
in order to get them to buy then from
there we increased how much they were
worth by getting them to buy more times
then we recruited the people who need to
be our team to help us along along the
way and scale then we keep and expand
our advantage through leverage and we
stick with it to unlock compound and
growth within the business and ourselves
and then finally we get better through a
continuous learning Loop and that is how
you get to your first money and if you
enjoyed this click the next video which
is 13 years of brutally honest business
advice because at this point hopefully
you'll have your first million or be on
the way to it and then I'm going to get
you with some harsh truths of getting
from 1 to 10 and Beyond