The BEST Businesses to Start in 2024

Summary

This video script challenges the concept of 'passive income,' arguing that all income requires effort but varies in the degree of 'leverage' needed. It introduces 'leveraged income' and explores four types of leverage: labor, capital, technology, and media. The speaker shares personal experiences and provides four practical income ideas, emphasizing that while media leverage is time-intensive, it can be the most rewarding, offering both financial and personal growth.

Takeaways

• 😤 The speaker expresses a strong dislike for the term 'passive income,' arguing that it creates unrealistic expectations of effortless wealth.
• 🤔 The concept of truly passive income is debunked; all income requires some level of effort, with varying degrees of 'passiveness.'
• 🔑 The speaker introduces 'leveraged income' as a new term to replace 'passive income,' emphasizing the importance of leverage to increase output per unit of input.
• 👷 Labor leverage is identified as the least efficient form of income generation, where one's own labor is traded for money in a one-to-one manner.
• 👥 The more effective form of labor leverage involves utilizing other people's labor to increase production and sales capacity.
• 💰 Capital leverage is described as a powerful method for wealth creation, where money is made to work harder than the individual does for it.
• 🏢 The speaker highlights the inefficiencies of labor leverage, such as increased communication complexities as more people are added to a team.
• 💼 Capital leverage can be achieved with one's own money or, more significantly, with other people's money (OPM), which has been key to major wealth creation.
• 🛠 Technology leverage, especially in the digital realm, is presented as a modern and highly effective form of leverage with low barriers to entry and high potential returns.
• 📡 Media leverage is the speaker's favorite form of income generation, emphasizing personal branding and the unique, irreplaceable value of one's own story.
• 🌐 The internet has revolutionized media leverage, allowing individuals to reach global audiences and monetize attention through various digital platforms.

Q & A

What is the speaker's main issue with the term 'passive income'?

The speaker dislikes the term 'passive income' because it creates a misleading image of money effortlessly flowing into one's account without any work, which is not the case as all income requires some level of effort.

What is the concept of 'leveraged income' as introduced by the speaker?

Leveraged income is a new term proposed by the speaker to replace 'passive or active income.' It refers to the idea of increasing output per unit of input, essentially getting more money with the same amount of time, energy, or resources invested.

What are the four types of leverage discussed in the script?

The four types of leverage discussed are labor, capital, technology, and media. Each type represents a different way to increase income with less effort or investment.

Why is labor leverage considered the least efficient form of making money?

Labor leverage is considered the least efficient because it often involves trading time for money in a one-to-one manner, which is limited by the number of hours in a day and the market value of one's time.

How does the speaker describe the limitations of relying solely on one's own labor for income?

The speaker points out that relying solely on one's own labor for income is limiting because it stops the moment work stops, and there is a cap on how much one can earn in a day, making it difficult to achieve financial freedom.

What is the difference between using one's own labor and using other people's labor in terms of leverage?

Using one's own labor for income is less efficient due to time constraints, while using other people's labor can significantly increase production and sales, thus multiplying the income potential.

How does the speaker explain the inefficiencies of labor leverage, especially in larger organizations?

The speaker uses Metcalf's law to illustrate the exponential growth in communication complexity as more individuals are added to a team, which often leads to more time spent on coordination rather than product and customer experience.

What are some examples of capital leverage mentioned in the script?

Examples of capital leverage include investing in stocks, bonds, cryptocurrencies, or angel investing in tech startups. The speaker also discusses using other people's money, such as bank loans or private investors' funds, to acquire assets like real estate.

How does the speaker describe the potential of technology leverage in creating wealth?

The speaker highlights that technology leverage, particularly in coding and programming, can generate significant wealth with minimal effort. They give the example of creating a digital product that can be sold to many people with no additional work.

What is the appeal of media leverage according to the speaker?

Media leverage is appealing because it allows individuals to reach a wide audience with minimal barriers to entry and potentially无限的 upside. It also enables personal branding, which is irreplaceable and can lead to significant income through various monetization strategies.

Can you provide an example of a leveraged income idea from the script?

One example of a leveraged income idea is starting a services business, such as window washing or landscaping, which requires minimal upfront investment and can teach valuable entrepreneurial skills.

What is the strategy of 'increasing velocity of capital' mentioned by the speaker?

The strategy of increasing the velocity of capital involves using the profits or equity from one investment to make additional investments, thereby accelerating wealth accumulation.

How does the speaker view the role of affiliate marketing in generating leveraged income?

The speaker sees affiliate marketing as a viable way to generate income by leveraging sales and digital marketing skills to promote other people's products and earning a commission on sales made through referrals.

What are the challenges associated with building a media empire as a form of leveraged income?

Building a media empire requires significant time and effort upfront, with the potential for high rewards over time. Challenges include developing content, attracting and maintaining an audience, and monetizing the platform.

What is the speaker's final recommendation for someone starting from scratch with limited resources?

The speaker recommends starting with affiliate marketing due to its potential for high returns and the valuable skills it develops, which can be applied to various aspects of life and business.

Outlines

00:00

💸 Rethinking Passive Income: The Concept of Leveraged Income

The speaker expresses disdain for the term 'passive income,' arguing that it creates a misleading image of effortless wealth accumulation. They clarify that all income requires some effort and introduce the concept of 'leveraged income,' which varies in the degree of passivity based on the level of effort required. The speaker promises to discuss four types of leverage—labor, capital, technology, and media—and share four income ideas that leveraged to earn $125,000 in a month. The emphasis is on the spectrum of passive to active income and the importance of leverage in increasing output per unit of input.

05:01

🔧 Labor Leverage: From Personal Effort to Employing Others

This paragraph delves into the concept of labor leverage, distinguishing between personal labor and the labor of others. Personal labor is described as time-for-money exchange with limited scalability, while leveraging the labor of others can significantly increase production and revenue, as illustrated by the speaker's window washing business example. However, the speaker also points out the inefficiencies of labor leverage, such as communication challenges that arise with Metcalf's law, which states that the value of a network increases with the square of the number of connected users, leading to complex management issues.

10:01

💰 Capital Leverage: Investing and the Power of Other People's Money (OPM)

The speaker shifts the focus to capital leverage, highlighting investing as a means to make money work harder than the individual does for it. They discuss the use of personal capital in investments like 401k, IRA, stocks, bonds, and startups, but note the limitations due to the need for large sums to generate significant passive income. The paragraph then explores the use of other people's money (OPM) to amplify wealth creation, providing examples of how their private equity real estate firm leverages bank loans and private investments to acquire valuable assets and generate substantial returns.

15:01

🛠️ Technology Leverage: The Impact of Coding and Digital Products

The speaker champions technology leverage as a modern and powerful method for income generation, emphasizing the potential of coding and software development. They note the historical significance of technology in building companies like Google, Facebook, Microsoft, and Apple. The speaker shares a personal anecdote of creating a digital product that generated significant income with minimal effort, illustrating the high leverage potential of technology. They suggest that anyone with internet access can exploit this form of leverage, emphasizing its accessibility and the vast opportunities it presents.

20:03

📢 Media Leverage: Building an Audience and Monetizing Content

The final paragraph introduces media leverage, focusing on the ability to reach vast audiences through platforms like YouTube, podcasts, and social media. The speaker argues that building a personal brand or community around a unique message can translate into substantial income through methods like affiliate marketing and selling products or services. They extol the irreplaceability of personal storytelling and share examples, including their own media empire and a company called Escape climbing, which leveraged educational content on social media to attract customers and grow the business.

🚀 Actionable Ideas for Leveraged Income

The speaker concludes by offering four actionable ideas for creating leveraged income. They suggest starting a service business with low upfront costs, such as window washing or landscaping, to learn valuable entrepreneurial skills. The second idea is house hacking through multi-family properties to reduce living costs and generate rental income. The third idea is affiliate marketing, where one earns a commission by driving sales to a product they believe in, leveraging skills in digital marketing and sales. Lastly, they propose building a media empire through consistent creation of valuable content, which, despite its initial investment of time and effort, can yield significant monetary and relational rewards.

Keywords

💡Passive Income

Passive income refers to earnings derived from a source that requires little to no ongoing effort to maintain after the initial setup. In the video, the speaker expresses disdain for the term due to misconceptions about its meaning, emphasizing that no income is truly passive and all require some level of effort. The video aims to correct this notion by introducing the concept of 'leveraged income' instead.

💡Leverage

Leverage, in the context of the video, is the means by which one can increase output per unit of input, essentially getting more results with the same amount of effort, time, or resources. The speaker outlines four types of leverage—labor, capital, technology, and media—to explain how income can be made more passive through these means, with labor being the least efficient and media being the most personal and irreplaceable.

💡Labor Leverage

Labor leverage involves using either one's own labor or the labor of others to generate income. The video describes two levels of labor leverage: personal labor, which is the least efficient due to the limited hours one can work, and other people's labor, which can significantly increase production and sales, as illustrated by the example of a window washing business scaling up by hiring more workers.

💡Capital Leverage

Capital leverage is the use of money, both one's own and other people's, to generate income. The video explains that this form of leverage was a primary method of wealth creation in the 20th century, with examples like investing in the stock market or using other people's money (OPM) to acquire assets like real estate, which can then generate income with less ongoing effort.

💡Technology Leverage

Technology leverage involves using digital technology to create products or services that can be sold or utilized repeatedly with minimal additional effort. The video highlights the power of coding and software development, as well as the ability to create digital products that can reach a wide audience and generate income with high margins, as demonstrated by the speaker's own experience selling a digital product.

💡Media Leverage

Media leverage is the use of media platforms to distribute messages, stories, or content to a large audience, building trust and attention that can be converted into income. The video emphasizes the ease with which individuals can now reach millions through platforms like YouTube, podcasts, and social media, and how this personal branding can lead to significant passive income opportunities.

💡Financial Freedom

Financial freedom, as discussed in the video, is the state of having enough income from assets or investments to cover living expenses without the need for active employment. The speaker uses this term to illustrate the ultimate goal of leveraging income, suggesting that capital leverage, in particular, can help achieve this state by making money work harder than the individual.

💡HELOC (Home Equity Line of Credit)

A HELOC is a financial product that allows individuals to borrow against the equity in their home. In the video, the speaker describes using a HELOC to extract equity from a property that had appreciated in value, which was then used to invest in additional real estate, demonstrating a strategy for increasing the velocity of capital.

💡Affiliate Marketing

Affiliate marketing is a performance-based marketing strategy where an individual earns a commission for promoting and selling other companies' products. The video outlines a process for successful affiliate marketing, including finding a valuable product, negotiating a commission rate, driving traffic to a landing page, and utilizing paid advertising on platforms like Facebook and Instagram.

💡Velocity of Capital

The velocity of capital refers to the speed at which capital is turned over, or the frequency with which it is used to generate income. The video describes increasing the velocity of capital as a game-changing strategy, using the example of using equity from a property to invest in additional real estate, thus multiplying the potential income from the initial capital.

💡Media Empire

A media empire, as mentioned in the video, refers to a significant presence across various media platforms, such as YouTube, podcasts, and books, that can be used to share a personal story or message and generate income. The speaker suggests that while building a media empire requires substantial upfront effort, it can lead to substantial passive income and personal fulfillment.

Highlights

The speaker expresses strong dislike for the term 'passive income', arguing that all income requires some level of effort.

Introduces the concept of 'leveraged income' as a replacement for 'passive income', focusing on increasing output per unit of input.

Outlines four types of leverage: labor, capital, technology, and media, as key to understanding income generation.

Labor leverage is considered the least efficient, with personal labor being the most basic form of income generation.

Describes the limitations of personal labor, such as capped earning potential and lack of income when not working.

Explains that leveraging other people's labor can significantly increase production and sales, using a window washing business as an example.

Discusses the status associated with labor leverage and its inefficiencies, such as communication challenges in larger teams.

Introduces capital leverage as a method for wealth creation, citing examples like JP Morgan and Warren Buffett.

Differentiates between using personal capital and other people's money (OPM) for investment and wealth generation.

Provides a detailed example of using bank loans and private investors' capital to acquire real estate for income.

Technology leverage is highlighted as a powerful tool for income generation, especially in the digital age.

Media leverage is presented as an accessible and potentially high-reward method for building personal brand and audience.

Shares personal success with media leverage through platforms like YouTube, podcasts, and books.

Proposes a services business as a starting point for wealth building, emphasizing the valuable skills gained.

Advocates for real estate investment, particularly multi-family properties, as a means to leverage income and reduce living costs.

Introduces affiliate marketing as a leveraged income idea, requiring sales and digital marketing skills.

Encourages the creation of a media empire as a long-term strategy for building a significant passive income stream.

The importance of consistency and patience in building a media platform for long-term success is emphasized.

Transcripts

I freaking hate the words passive income

I hate it because when most people hear

those words they get this mental image

of money just flowing into their bank

account while they sit on some beach and

Bali sipping on my ties six months of

youtubing and all he does is lie now

there is no such thing as truly passive

income all income no matter how passive

it does require some level of effort on

your part some forms of income just

require less than others now I promise

you this is going to be unlike any other

passive income video you've ever seen in

it we're gonna learn a new way to think

about making money we'll learn about the

four most important types of Leverage we

can use to make a ton of money and yes I

will actually share with you four

passive income ideas to help me make 125

000 last month that you can start

implementing right now

[Music]

foreign

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somewhere on the spectrum between

passive and active the real question

isn't whether or not your income is

passive but to what degree is your

income passive or put another way how

passive is your income and the thing

determining how passive or active an

income source is is a little thing

called Leverage so let's erase this idea

of passive or active income from our

minds and instead we're going to replace

it with a new term that's going to

fundamentally change how we approach the

money making game I'm calling it

leveraged income now the goal of

Leverage is I Define it here is to

increase our output per unit of input so

that means we put the same amount in and

that could be time energy resources but

we get more out or in this case more

money and when it comes to making money

there are four types of Leverage that we

have to understand they are labor

Capital technology and media so let's

take it from the top the first form of

money making Leverage is labor of the

four types of Leverage this is by far

the least efficient and unfortunately

it's also the one that most of us have

been taught to pursue our entire lives

which is why most people are just not

winning the money game now within labor

leverage there's actually two levels the

first is your labor and the second is

other people's labor your labor in

particular is the absolute lowest

leverage way to make money and what

people refer to as exchanging your time

for money the reason this is so

inefficient is because you're trading

your time in a one-to-one manner for

instance when I was working in the bike

shop at REI I was paid an hourly rate

for every one hour I worked I received

the same amount of money if I wasn't

clocked in and doing work I wasn't

making money now on the spectrum of

active versus passive this is just about

as active as it gets and you priority

know this but you're not going to win

the money game playing this sway because

you only have so many hours in the day

to trade and there's probably a cap on

how much somebody is going to be willing

to pay you for one hour of your time

unfortunately this is the way that most

of us were taught to make money since we

were little kids which is why most

people believe that the goal is just to

go out and get a nice high-paying job

but the problem is the money stops

coming in the moment you stop working so

heaven forbid you get hit by a bus or a

loved one Falls ill and you have to stay

home and take care of them or maybe you

just decide you want to spend more time

with the family and go on vacation

travel the world if your only income is

a result of exchanging your labor for

money then you will probably never be

able to stop working for money now the

second level of labor Leverage is far

more effective when it comes to making

money it's other people's labor see you

can only produce and sell so many

widgets in a day which puts a cap on how

much you can make but if you can get

somebody else to come work with you then

you're able to produce and sell two or

three or four times as many widgets

huzzah now here's another example from

my own life the first business I was

involved in was a window washing company

in the beginning it was just me and a

buddy going around knocking on doors and

washing windows on a really good day we

could maybe get through three houses

worth of Windows we charge about 15

bucks a window and the average house had

around 20 windows so all told that's

three hundred dollars of Revenue per

house and around 900 a day and that's

about the best we could do just trading

our time for money to break through to

that next level we had to start hiring

so you fast forward a year and we had a

crew of 15 split into three squads

watching around six houses a day and

bringing in just over a million dollars

in Revenue per year that's a number that

would have been simply impossible to hit

without all those extra hands now here's

something interesting about Labor

leverage despite hate being the most

inefficient form of money making

leverage it happens to be the one that

carries the most status in the general

Public's eye for instance if you're at a

party and somebody asks you about your

company what do you think is going to

impress them more if you say I have a

thousand employees or I have 10. despite

the fact that the team of 10 if

utilizing the right forms of Leverage

which we're going to talk about here in

just a second they could be vastly more

profitable than the other organization

that's maybe just relying on pure labor

it personally took me a long time to

figure this out because you get a bit of

an ego stroke as you're hiring people

and you think yeah this is obviously the

way you grow a big company but the truth

is labor leverage comes with massive

inefficiencies the biggest and most

obvious one is communication see metcash

law states that the value of a network

is proportional to the square of the

number of connected users of the system

for instance if we've only got two

telephones there's only one connection

to be made if however we have five

telephones then we can make 10

connections and if we have 12 telephones

then the number jumps up to 66 total

connections you can see just how quickly

the complexity of communication expands

with each new individual added to the

team now metcalf's law is typically used

when talking about the value of a

digital Network like a social media

platform for instance where the platform

itself becomes more valuable with the

addition of each new user but if we

apply this law to our business then we

can quickly see just how complicated

everything gets as we add new people to

the team and this complexity often means

that as the business owner you spend

less and less time thinking about the

product and the customer experience and

more time just sitting in meetings

trying to herd cats and get everybody on

the same page or at minimum just getting

everybody to read the same damn book if

that sounds like your worst nightmare as

it does mine then you'll want to

consider other ways of making money by

utilizing one of the other three forms

of Leverage the second of which is

capital leverage and this is the way

that the majority of wealth was created

in the previous Century by Finance

fanciers like JP Morgan or investors

like Warren Buffett in this form of

Leverage our goal is to make our money

work harder for us than we work for it

we've got a fancy word for Capital

leverage that pretty much everybody's

familiar with it's called investing and

this is the form of Leverage Warren

Buffett had in mind when he said if you

can't find a way to make money in your

sleep then you will work until you die

now with capital leverage there are

actually two levels just like with labor

leverage there's your money and then

there's other people's money the

greatest fortunes of the 20th century

were made utilizing other people's money

and you can do this too but we're going

to circle back to that in just a second

first let's talk about creating Capital

leveraged income with your own money now

chances are good you're probably already

doing this if you've got a 401k a Roth

IRA or you're invest in the stock market

maybe at some bonds or some crypto or

maybe you've Angel invested into like a

tech startup then you have your money

out there working for you awesome but

there's a problem with this form of

Leverage though namely unless you're

investing in highly speculative

opportunities like Angel Investing into

that Tech startup the chances of

generating massively outsized returns

are fairly low given how much risk is

involved so most people simply take

their actively earned labor income from

a W-2 and they put it into relatively

stable opportunities like a Index Fund

in the stock market generating maybe 10

percent a year now 10 is great but you

probably only have so much of your own

money that you can put to work right

which means if you want to live solely

off the fruits of your Capital leveraged

income you're going to have to have

access to really large sums of money

let's break it down with some numbers if

you're making a hundred thousand dollars

a year right now and you want to

generate that much in capital leveraged

income so you can achieve the ultimate

goal that everybody has called Financial

Freedom then you're going to need a

minimum of a million dollars generating

a 10 annual return so you can generate

enough passive income to leave your job

without having to decrease your quality

of life and by the way that one million

dollar market a 10 rate of return is

highly optimistic in reality you

probably need closer to two million

dollars to maintain the same standard of

life but I'm using this example to paint

a picture of just how hard it can be to

get to Financial Freedom relying on just

your own capital and the reason for that

again is you probably only have so much

money of your own to work with but that

doesn't mean we should just entirely

give up on Capital leverage because

again this is how so many great fortunes

were created in the previous century and

you can too they did this by leveraging

OPM or in other words other people's

money now the great thing about other

people's money is that there's a lot of

it out there and most people lack the

time energy and knowledge necessary to

allocate the capital themselves and so

they take their money and they give it

to investment professionals or fund

managers General Partners or founders of

businesses for them to allocate here's

two examples of using other people's

money that my private Equity Real Estate

firm utilizes right now first we use the

banks money by taking out a mortgage for

75 percent of the purchase price of an

apartment building so just to use Simple

numbers let's say we want to buy a

million dollar apartment building

instead of using a million dollars of

our own money we go to the bank for

financing and they give us a loan for 75

percent of the purchase price or in this

example seven hundred and fifty thousand

dollars they do this because they earn

an interest rate on that mortgage of

let's say five percent now here's a

really interesting thing the money that

the bank is giving us as a loan it's not

actually theirs it's their depositors

see the bank might give people like you

and me a three percent interest rate for

keeping our money in their savings

account so that they can turn around and

lend that same money to businesses like

mine where the bank can earn five

percent they pay you and me the deposit

are three percent for our savings

account and they keep two percent all

for themselves and they never had to put

a dollar of their own money on the line

see what I mean about the power of using

other people's money okay so back to the

original example with our apartment

building for a million dollars so we got

a loan for 750 000 which means we can

now buy this building by only putting up

two hundred and fifty thousand dollars

of our own money and this is a really

powerful form of Leverage for Building

Wealth because we're acquiring valuable

cash generating assets despite perhaps

not having a full million dollars to buy

the building outright ourselves okay so

that's the first type of capital

leverage that my company utilizes in

acquiring real estate but there's a

second form which we use to fund the

down payment or that 250 000 that the

bank expects us to come to the closing

table with this we do by raising capital

from private investors or other private

Equity groups in exchange for them

giving us Capital these investors expect

some pretty juicy returns often north of

15 and 20 percent which are returns that

would be very difficult to achieve on

the open market and this in a nutshell

is how we've acquired nearly a hundred

million dollars of real estate over the

past three years now this was a grand

simplification of a complex topic if

you're interested in learning more I

encourage you to check out our real

estate Focus Channel at multifamily

investing made simple but I wanted to

share this because Capital Leverage is

one of the most powerful ways of

producing incredible income the downside

is you have to have some highly

specialized skills that would

incentivize investors in capital

allocators to give you their money but

if you can develop those skills the

sky's the limit for your leveraged

earning potential but truthfully given

the direction the world has been moving

in the recent years I'm actually way

more excited about the last two forms of

leveraged income I'm going to share with

you because the barrier to entry here is

so low but the potential upside is

nearly infinite the first one is

technology leverage or more specifically

digital technology leverage the most

obvious opportunity here is in the world

of coding and programming just think

about Google Facebook Microsoft or apple

all of these companies were built on the

back of Code and Technology the amount

of Leverage that you can generate from a

piece of software that's nothing more

than a few lines of code is truly

mind-boggling just think a 16 year old

who speaks code has a laptop and access

to the internet could create an app from

their parents basement that changes the

face of the world how crazy is that if

Capital leverage was the dominant form

of wealth creation in the 20th century

then so far in the 21st century the big

winner has undoubtedly been technology

and here's the craziest part of all you

don't even really need to speak the

language of machines to benefit from

this form of Leverage last year I

created a digital product in one

afternoon and then I was able to take

that one product and sell it to hundreds

of people each of them were able to get

the same exact product and experience

instantaneously with no additional work

for me so in one day I sold twenty

thousand dollars worth of that product

at a 98 margin that is a crazy amount of

Leverage that's literally available to

everybody with a computer and internet

access just think about how ridiculous

that is for a second like the amount of

opportunity available to you and me

right now at this moment in time is

something that our parents and their

parents just never could have imagined

in their wildest dreams but despite how

exciting technology is as a way of

generating ridiculous amounts of

leveraged income it's not even the one

I'm most excited about see I saved my

personal favorite for last which is the

one we're using right now at this very

moment it's media leverage so let's

rewind the clock 100 years if in 1923

you had a message you wanted to get out

to the world or we wanted to share your

story the only options available to you

were really the newspaper books or the

radio if you couldn't get one of the

Dozen newspapers publishing houses or

radio stations that controlled the

majority of distribution at that time to

run your story then your ability to

create an audience at new liked and

trust you would depend on you actually

going from town to town to town to

deliver your message you fast forward 50

years and now we had television but

still the same problem persisted all

major media distribution fell into the

hands of a few Gatekeepers like ABC NBC

CBS well that's all changed now thanks

to the internet and things like

smartphones YouTube podcasts and social

media at large it has never been easier

for people just like you and me to reach

a million people with our message no

matter how weird or esoteric or Niche

that message is and if you can find

people who resonate with your message

and then build an audience or Community

around that message then Translating

that attention or those eyeballs into

meaningful amounts of leveraged income

is incredibly easy through things like

affiliate marketing or paid advertising

just selling your own products and

services now the reason I love media

leverage the most is because you can

utilize it by just being you and sharing

your personal story your battles one and

your Lessons Learned and the real beauty

of just being you is that you are

irreplaceable with every other form of

Leverage we've discussed you can be

replaced or disrupted by competitors but

not when you use media leverage to

amplify your voice just think of Joe

Rogan as a perfect example of a person

who has built a media Empire Worth close

to a billion dollars just by being

himself and distributing his message via

technologies that are almost free to use

and available to literally all of us and

the great thing for Joe is there's only

one of them he can't be replaced now

creating a personal brand is just one

way of utilizing media leverage but

there are countless others that don't

necessarily require you to be front and

center for instance one of the previous

companies I had a hand in building was

Escape climbing which we grew by putting

how awesome educational and entertaining

content on Instagram and YouTube which

attracted people to our company though

not necessarily to us as individuals and

that company is actually a really good

example of a business effectively

utilizing all four forms of leveraged

income as we had 15 employees labor

leverage significant amounts of our own

Capital funding the business Capital

leverage we moved a ton of product on

Amazon technology leverage and we did it

by spreading our message on social media

media leverage pretty cool huh so now

that you understand the four types of

Leverage we can use to make money I'm

going to give you four leveraged income

ideas that you could start implementing

right now to create passive income first

up is exactly how I started my wealth

building Journey a Services business for

me it was window washing which was

actually a really great way to get

started because I had to learn so many

valuable skills that have served me

really well through my entrepreneurial

journey in particular you'll learn sale

sales marketing product design Customer

Service hiring training and fulfillment

truly if you can Master those skills

you're gonna be unstoppable the other

reason I really love window washing is

because it requires very little upfront

investment a couple hundred dollars on

cleaning supplies and a ladder and

you're pretty much good to go another

really good option though is to consider

a landscaping business seriously just

look around you at how much grass and

yard everybody has then ask yourself who

really wants to deal with mowing in the

hot heat raking leaves in the fall or

shoveling in the winter see a couple of

years ago actually one of my students

who was in college at the time he

started a landscaping business with a

couple buddies in their spare time by

the end of that summer they were doing

twenty thousand dollars a month in top

line revenue when they graduated they

just turned around and sold the company

for a nice little profit and then they

just moved on to other endeavors but

seriously this is a fantastic way to

make some leveraged income but it's not

the end game for me I took the profits

from my early businesses and combined it

with capital leverage to go out and buy

real estate which is the second

leveraged income idea I have for you in

particular regular house hacking now

this is where you buy a small

multi-family property something like a

duplex or a Triplex and you're going to

live in one unit while renting out the

others and this is going to have the

effect of lowering your cost of living

your renters are going to pay off your

mortgage and potentially put some cash

flow into your pocket each month now

this might not be super viable depending

on where you live in the world but here

in the US we have something called The

FHA loan which is for first-time home

buyers and there's two really great

things about this product first you

don't have to have fantastic credit when

I bought my first property my credit was

in the low 600s so definitely not great

but it didn't hold me back second with

the FHA loan you only need three and a

half percent for the down payment so

here's how that looked on my first

property I bought a Triplex for 246 500

but I only had to bring around 7 500 to

the closing table now it's important to

note that I also had ten thousand

dollars set aside in reserve just in

case something happened with the

property but the important thing to know

is that I was into this property all

told for twenty thousand dollars and the

really crazy thing about this property

is that nine months later it had

appreciated for 125 000 more than what I

paid for it so I utilized what's known

as a HELOC or a home equity line of

credit to extract that Equity from the

first building and I used it to go buy a

second this right here is known as

increasing your velocity of capital and

it can truly be a game changing strategy

that's more accessible than you might

even realize okay next up in our

leveraged income ideas is a really

interesting one because theoretically

the only thing you need to be good at is

sales and digital marketing it's called

affiliate marketing and here's just one

way you can make it work for you now the

gist of affiliate marketing is that you

find a product that you really like and

then you go to the seller you work at a

commission that you earn every single

time you send them a customer it's great

for the company with the product because

they're getting customers and it's great

for you because you don't have to worry

about product design customer service or

fulfillment all you've got to worry

about is mastering how to drive traffic

that converts into sales here's one

Avenue you could pursue and I have

friends who have done incredibly well

with just this one truthfully if I was

starting all over from scratch with

nothing but my current skill set and a

thousand dollars this is probably where

I would start with that said you're

going to need to be skilled in a few

areas to make this one work but those

skills are very worth acquiring

regardless of what you plan on doing in

life okay so here's what you do step by

step first go to somebody who has an

online course or a digital product that

you really love and that you know can

bring people value you go to that

Creator and you work out an affiliate

deal where maybe you get 20 of every

customer you send their way that ends up

buying the course if the course sells

for a hundred dollars then you make 20.

the next part in the equation is to

build a landing page this is the place

you're going to drive your traffic and

if it's designed properly it's going to

convert leads into Happy paying

customers for an example what this might

look like I'm going to drop a link for

the landing page to my hyper Focus

master class in the description below so

just go through that to get some ideas

and figure out what you need to have

okay so once you have your landing page

you now need to drive traffic and the

quickest way to do this in my experience

is through Facebook and Instagram paid

advertising so you're going to go over

to Facebook you're going to create some

ads and then you're going to drive

traffic to your landing page when you

get your ads and landing pages dialed in

you could easily afford to pay ten

dollars per customer in advertising

costs knowing that you're going to make

twice that on the back end then it's

just a matter of scaling your ad budget

now with all that said the variable here

that's going to determine your success

and failure is how good you are at

designing a landing page your

copywriting skills and your

understanding of paid advertising

luckily the internet is full of free

resources on all of these topics so just

get out there and start learning and

last but not least on our list of

leveraged income ideas is to create a

media Empire okay so maybe that's a bit

traumatic but I truly believe everybody

has a unique story to share and if you

can just tap into that story and figure

out how to share it with the world in an

authentic way that delivers value to the

audience then you can create tremendous

amount of passive income these three

areas of my own media Empire have served

me really well YouTube podcasts and

books now of all the forms of leveraged

income this is the one that will take by

far the most time and energy on the

front end to get the flywheel going but

if you stick with it and you stay

consistent over a long enough period of

time it can also potentially be the

biggest and I really don't want to gloss

over how hard this one can be to get

meaningful traction for myself I'd been

creating videos writing books and

articles recording podcasts I've been

doing it all for years before anybody

really started paying attention in the

beginning it's definitely going to feel

like a waste of time but the skills and

abilities you're developing along the

way those are the key to your success so

don't fixate on the number of downloads

you're getting on the podcast or how

many likes you're getting on a video

those will come with time as you

continue to level up but if you stick

with it if you keep iterating you keep

improving then of all the forms of

Leverage we've discussed in this video I

think you'll find that media Leverage is

going to be the most rewarding and I'm

not necessarily just talking about from

a monetary perspective truly the

conversations and relationships which

come as a result of building your own

platform and engaging with an amazing

audience just like yourself well that

truly is worth more than all the passive

income in the world so with that said

thank you so much for being here and

being a part of this amazing Community

if you got any value out of this and

you're not already a part of the

community well let's change that go down

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see you in the next video but until then

stay hyper focused my friend

foreign

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