How to get SO rich you question the meaning of making money
Summary
TLDRThe speaker shares his astonishing financial success as a young entrepreneur, emphasizing the importance of understanding work as 'outputs multiplied by leverage' rather than mere hours or effort. He challenges the audience to redefine their approach to work and wealth creation, highlighting the pitfalls of spreading oneself too thin across multiple ventures and the power of focusing on one area to achieve significant leverage. The presentation is a call to action for the audience to refine their existing business strategies and resist the allure of new distractions, advocating for incremental improvements and specialization to achieve financial success.
Takeaways
- π° The speaker emphasizes the importance of leveraging one's work to maximize output and revenue, rather than just working harder or longer hours.
- π The definition of work provided is 'outputs equal volume times leverage', suggesting that work is about efficiency and impact rather than just effort.
- π Success in business is attributed to focusing on one area and excelling in it through continuous improvement and specialization, rather than spreading efforts across multiple ventures.
- π€ The speaker challenges the audience to reassess their definition of 'work hard', suggesting that it's more about smart work with leverage than just long hours.
- π― The concept of 'better is better than new' is introduced, advocating for refining existing processes and strategies to gain more leverage and increase business value.
- π‘ The idea of 'informed pessimism' is discussed, illustrating the importance of understanding the full scope and challenges of a business before committing to it.
- π The script highlights the pitfalls of 'uninformed optimism', where people start new ventures without fully understanding the difficulties involved.
- π The speaker shares personal anecdotes and examples to illustrate the power of focus and leverage in achieving significant financial success.
- π The dangers of constantly chasing new opportunities without mastering one are underscored, as it can lead to a lack of leverage and ultimately, financial stagnation.
- π€ The importance of building a business with compounding effects over time is stressed, suggesting that long-term focus leads to more significant outcomes.
- π The transcript concludes with a live demonstration of increasing leverage by progressively adding more value to an offer, showing the audience how enhancing an offer can significantly boost itsεΈεΌε.
Q & A
What is the main message the speaker is trying to convey in the script?
-The speaker emphasizes the importance of leverage in making money, the pitfalls of constantly starting new ventures without focusing on one, and the value of improving existing business aspects rather than seeking new opportunities.
What does the speaker define as 'work' in the context of knowledge workers?
-The speaker defines 'work' as 'outputs' which equals 'volume times leverage', suggesting that the effectiveness of work is not about the time or effort put in, but rather the output achieved per unit of time.
What is the significance of the 'woman in the red dress' metaphor used by the speaker?
-The 'woman in the red dress' represents distractions or shiny new opportunities that can divert attention from the core focus of a business. The speaker advises to develop the discipline to say no to such distractions.
How does the speaker describe the process of achieving informed optimism in business?
-Informed optimism is described as a stage where one has learned from their experiences, overcome challenges, and made necessary adjustments to their business strategies, leading to a more informed and optimistic approach.
What is the 'crisis of meaning' referred to by the speaker?
-The 'crisis of meaning' is a phase where individuals question the purpose of their efforts, especially when they encounter difficulties and do not see immediate results from their work.
Why does the speaker argue that starting multiple businesses at once can be detrimental?
-The speaker argues that starting multiple businesses at once can lead to being spread too thin, making it difficult to focus on one area and achieve mastery or significant growth in any single venture.
What is the key takeaway from the speaker's story about the construction buddy?
-The key takeaway is the importance of focusing on one area of business and doing it exceptionally well, rather than diversifying into multiple areas, which can lead to a lack of specialization and reduced success.
What does the speaker mean by 'better is leverage'?
-'Better is leverage' means that improving existing processes and offers in a business can create more value and return on investment than constantly seeking out new ventures or opportunities.
How does the speaker illustrate the concept of leverage in the real-world demonstration?
-The speaker uses the example of selling a book at an increasingly better offer to demonstrate how enhancing the value of an offer can lead to more sales and higher perceived value, thus leveraging the same product for more profit.
What is the speaker's advice for someone looking to scale their business?
-The speaker advises to focus on one business, do everything known to improve it, and avoid distractions. He suggests using the 'coach yourself' method to identify and commit to activities that will genuinely move the business forward.
What is the role of patience in the speaker's philosophy of business growth?
-Patience, according to the speaker, is about taking consistent actions aligned with long-term strategic vision despite the urge to seek quick results or jump on new opportunities. It's about sticking to the process and not being swayed by immediate emotions or temptations.
Outlines
π° Wealth Surpassing CEOs: A Personal Success Story
The speaker astonishingly claims to have earned more in a year than the combined annual incomes of CEOs from major companies like McDonald's, Ikea, Ford, Motorola, and Yahoo during their 20s. This success led to a portfolio revenue of 200 million dollars and crossing the 100 million dollar mark by age 33. The speaker acknowledges the potential for this disclosure to evoke envy, anger, skepticism, and confusion among different listeners but aims to inspire a select few. The presentation is about wealth creation, the importance of defining 'work,' and the speaker's revised approach to the concept of hard work, emphasizing outputs and leverage rather than hours worked.
π§ Redefining Work and Leveraging Success
The speaker redefines work as 'outputs' which equals 'volume times leverage,' suggesting that the traditional understanding of work based on manual labor or time spent is outdated for knowledge workers. They argue that work rate, or output per minute, is a better measure of productivity. The speaker introduces the idea that leveraging one's work is more important than working harder, using the example of Warren Buffett's dividends from Coca-Cola compared to the CEO's salary, and illustrates how leverage can amplify outputs, leading to greater enterprise value.
π§ The Pitfalls of Uninformed Optimism and Lack of Focus
The speaker discusses the dangers of uninformed optimism and the importance of focus in achieving success. They describe the stages of change and how people often switch between new opportunities without fully understanding the effort required, leading to a cycle of failure and frustration. The speaker emphasizes the need to overcome the 'crisis of meaning' and to stick with one venture long enough to achieve mastery and success, rather than jumping from one project to another without learning the necessary lessons.
πΌ The Paradox of Entrepreneurial Distractions
The speaker shares personal anecdotes and advice on the importance of focusing on a single business to achieve significant growth and wealth. They argue against the common entrepreneurial mistake of spreading oneself too thin across multiple ventures and emphasize the benefits of concentrating efforts on one business. The speaker uses the Forbes self-made women list to illustrate that extraordinary results come from doing ordinary business for an extended period, not from constantly chasing new opportunities.
π Learning from Mistakes and the Power of Focus
The speaker stresses the importance of learning from mistakes and the power of focus in building a successful business. They define learning as 'same condition, different behavior,' emphasizing that without behavioral change, no learning has occurred. The speaker encourages the audience to adopt a single business and commit to it fully, using the metaphor of a 'magic wand' to illustrate the ease of growing a business if all distractions are removed.
π« The Importance of Saying No to Distractions
The speaker discusses the importance of discipline in saying no to distractions, using the metaphor of the 'woman in the red dress' to represent enticing but unproductive opportunities. They share personal experiences of the struggle to resist new ventures and the strategic error of not focusing on a single opportunity. The speaker advises that the ability to say no becomes more challenging as one's success grows, and one must continually develop the discipline to stay focused on their primary business.
π The Compounding Effect of Consistent Improvement
The speaker advocates for the power of incremental improvements and consistency over chasing new ventures. They argue that 'better' is better than 'new' and that leveraging existing efforts leads to greater returns. The speaker emphasizes the need to undertake the tasks that are known to be effective but often neglected due to their mundane nature. They suggest that focusing on these tasks and continuously improving them is the key to leveraging one's efforts and achieving success.
π The Impact of Word of Mouth and the Long Game
The speaker discusses the invisible hand of word of mouth and its significant impact on business success. They argue that shortcuts and poor product quality lead to negative word of mouth, which can make advertising more expensive and hinder growth. The speaker encourages taking the long game, focusing on getting the product right, and building a solid foundation for sustainable success rather than seeking quick gains.
π The Leverage of a Better Offer
The speaker demonstrates the concept of leverage through an interactive exercise, showing how the value of an offer can be increased by adding more value to the same product. They use the example of a book, initially offered at a high price with no takers, and progressively add more benefits, such as autographs, sales call reviews, traffic funnel breakdowns, and public exposure, to show how the perceived value and willingness to pay can be significantly increased.
π Commitment to Excellence and the Power of No
The speaker concludes by emphasizing the importance of commitment to excellence and focusing on doing what is known to be effective. They argue that success comes from years of dedicated effort, consistently saying no to distractions, and focusing on what matters most. The speaker encourages the audience to take the lessons learned and apply them to their businesses, promising significant growth and success through the power of leverage and focused effort.
Mindmap
Keywords
π‘Leverage
π‘Outputs
π‘Work Rate
π‘Portfolio Revenue
π‘Material Success
π‘Uninformed Optimism
π‘Compounding
π‘Enterprise Value
π‘Volume
π‘Better
π‘New Ventures
Highlights
The speaker achieved more annual earnings in his 20s than the combined earnings of CEOs from major companies like McDonald's and Ford, amassing a portfolio revenue of 200 million dollars.
By age 33, the speaker's portfolio revenue surpassed 100 million dollars, emphasizing the surprising nature of his success.
The speaker aims to inspire a select few with his story, acknowledging that it may evoke envy, anger, skepticism, and confusion in others.
The presentation was changed last minute to better suit the audience's needs, showcasing adaptability.
A challenge to the common belief that hard work is directly proportional to money, suggesting a deeper understanding of what constitutes work.
Work is redefined as 'outputs' which equals 'volume times leverage', offering a new perspective on productivity.
The concept of 'work rate' is introduced as output per minute, providing a measurable way to evaluate work efficiency.
The speaker illustrates the power of leverage with the example of a person who added 140 billion dollars in net worth in a year, more than Bill Gates' entire career.
The importance of focusing on one area to achieve high leverage, rather than spreading efforts across multiple areas.
The five stages of change model is discussed to highlight the process of adapting to new endeavors and the pitfalls of uninformed optimism.
A personal story about a construction buddy is shared to emphasize the dangers of diversification without focus.
The Forbes self-made women list is referenced to show the value of long-term focus in a single industry.
The 'magic wand' story illustrates the difficulty of choosing one opportunity over others, even when it's clear which has the most potential.
The Matrix analogy is used to discuss the importance of saying no to distractions, represented by the 'woman in the red dress'.
The concept of 'better is better than new' is introduced, advocating for improvement within existing activities rather than seeking new ventures.
The speaker shares his personal experience of selling off businesses to focus on one, leading to significant growth within a year.
The idea that success comes from doing the known tasks better, rather than constantly seeking new strategies or ideas.
A live demonstration of increasing leverage by progressively adding value to an offer, showing the audience the power of a better offer.
The conclusion emphasizes the importance of focus, saying no to distractions, and doing known tasks better to achieve success.
Transcripts
you guys want to hear something
completely insane yes okay you're gonna
have to hear it anyways I was able to
take home more in a year than the CEOs
of McDonald's Ikea Ford Motorola and
Yahoo combined
as a kid in his 20s for over half a
decade
there you go
which
which resulted in 200 million dollars in
portfolio Revenue as of today we crossed
100 million dollars by age 33
and to be honest no one's more surprised
than I am about this Alcove
and so me expressing this will create
Envy in some people it will create anger
in others skepticism in most
confusion in old people
and Inspire select few
and so the select few you or who I'm
making this for everyone else you can
tell but you are the people that I'm
making this for
let's go back there we go so who wants
to hear about some stuff that can
shortcut their path to material success
so they can ponder the purpose of
achieving it to begin with
all right so we're going to cover three
things today this is fresh from this
morning right off the press number one
how I'm making money really works number
two why new stuff is making you poor
number three why better is the way
you're like that doesn't make sense yet
it will
said simply who wants to make lots of
money funny thing what you're watching
right now is not my original
presentation I actually changed it at
the very last minute the night before I
went out to get dessert a bunch of
people from the event were in town going
to the place that I was by accident as
soon as I left the frozen yogurt lunch
where I was I was like the presentation
I have for tomorrow isn't what these
people need and so I spent that night
and all morning making entirely new
presentation which is what you are
watching who believes that you have to
work hard to make money
who believes that no one can outwork
them
you're gonna see where I'm gonna go with
this
well I'm going to attempt to prove you
wrong
the reason this is so important is that
all of us claim or I have hurt who here
has seen a guru on the internet say no
one can outwork me who's heard people
say that on podcasts make Instagram
posts about it whatever
It actually drives me [Β __Β ] bananas
and it drives me bananas because it
teaches the wrong lesson
so
how can we claim that we work every day
and yet we can't even Define the word
so how do you define work
the science definition is work equals
force times distance problem with that
is it's not very useful for knowledge
workers most of us are not actually
doing manual labor not useful
the second way is that you can think
about in terms of inputs of time right
like is that how hard you work no one
can outwork me I work longer hours
do you think you're the only person who
works 16 18 hours every day
like go to China
I'm like
I don't even know if anyone in America
can say it I'm being dead like dead
serious
so that's why when I see these things
just drive me [Β __Β ] nuts
so the problem with that is that
many people work all the hours they're
awake and if you suggest working more
hours then you're sleeping less and I
don't think that's a good idea for
knowledge workers
so why can no network you again
right so everyone's working those hours
so then the next one is like
that's how no one can outwork Me No
One's Gonna try harder than me
so you want participation trophies
is this how you want your employees to
think that they're working hard
I mean not me I wouldn't want that
so if it's not force times distance to
Define what work is and if it's not the
amount of time we're putting into the
work that we do
and it's not the effort that we are
expending or how hard we try
then what's work
we have to get clear on it because if
that's what we have to do to make money
we got to know what we're actually
trying to [Β __Β ] do
so here's Alex's definition
work equals outputs
fancy image
outputs equal volume times Leverage
in plain speak
number of times you do something times
how much you get out of each time you do
it
how do we work faster
work rate equals that same thing divided
by time
plain speak output per minute of time
that is how you work faster
which means that the hardest working man
in the world can be objectively measured
that guy is the hardest guy working in
the world in 2022 he added 140 billion
dollars in net worth
for context that's more than Bill Gates
did his entire career in one year
think about that for a second
and then the next year he did the exact
same amount again
FYI that's 2 billion a week
so output divided by time
there's the time one year there's the
output
he's the hard work hardest working guy
so who's going to be the 2027 champ
point of me doing this is I hope it's
somebody here
who did who would like to be the 2027
champ
all right let's rock
so if you want to be it then please pay
attention this will help you so
how can we get more output which in the
game of business is Enterprise Value
it's how much [Β __Β ] is worth
outputs right we have this one and I've
got a nice flexi arm volume is the
number of times we move the leather I
literally made all these images this
morning all right I'm very very proud of
them all right volume is the number of
times you move the lever
The Leverage is the length of the lever
itself that you're using
the outputs is how much you can lift on
the other side
so let's look at a couple examples you
guys can just shout it when I say just
say high or low so high or low
high or low
hi
higher low
very high
the reason I put this one in here is
that at a certain point it's not about
how strong the person is it all depends
on how much leverage you have that's the
point of the slide
now
higher low volume times a thousand the
thing's just as long as the other one
highest yes
so now that we understand what work is
you can either do more activity or you
can do it with more leverage to get more
output
doing more is Cap by time and physical
ability how much you get AKA Leverage is
uncapped
no cap I learned that
gen Z there we go
um
now fun fact Warren Buffett took home
500 million in dividends last year from
Coca-Cola as an owner the CEO took home
50.
he spent less time working on Coca-Cola
than the CEO did
so is he working harder
by the definition that we did yes
more output
we've been playing the game wrong
if you want to outwork your competition
what you really should be doing is out
leveraging them
so who gets more done
we got one person who's 100 calls a day
another person is 100 calls a day
the guy who has more skill
one guy makes 100 calls another guy
makes 100 calls the guy who's better on
the phone gets more output
okay let's say they're equal skill
they're working eight hours a day making
calls
oh I forgot to ask a question who gets
more work done there's the answer the
guy that has the automated dialer that
keeps his talk time the highest
okay
same skill same number of hours and same
automated dialer to maximize talk time
now who gets more work done
the guy who has the best list
okay they've got the same list
the same skill same dialer eight hours a
day
the guy who's calling to the right
season the right time to die Who Wants
to be calling selling [Β __Β ] during
December if you're selling physical
products
who wants to sell on Black Friday
of course more leverage same work more
output
okay let's say all this stuff's equal
now who's now who's even all right we
got I mean what else do we have
nice he actually called it the guy
calling with the better offer
now we've got the same time same time of
year same list same offer same dialer
equal skill eight hours a day
now who's gonna do it it's got to be
equal now right
the guy who recorded his pitch and send
it to 10 million people
now
to push this even further
what if the guy made zero calls and
didn't do anything
who makes more against the best caller
on Earth
the guy's got a team he's got 15 dudes
on the phone okay how good you are
and if you're like well I think I could
be 15 it can't be 1500.
okay who you are leverage and that guy
made zero calls I have more people
calling for me today while I'm on stage
Leverage
the game is rigged and you've been
playing by rules that do not exist
if you want to make more money
you need to get more for your time
you need more leverage
and this should make sense because we
all trade time for money and I can prove
this to you
you spend time every second of your life
you receive money over the time that you
are alive
so
money divided by time equals rate of
output we are all paid dollars per hour
the reason I'm specifically saying this
to this audience is that you all get
fooled all the [Β __Β ] time by passive
income
it's not passive
it's less active
but it is not binary it is not active or
passive it's how active is it
so if you make one trade in the stock
market all the time it took you to
analyze the deal and every other deal
you decided not to do
and then execute the trade and then
raise the money and do all the other
stuff that is all the time that it took
you to do that now after that point you
have increasing returns per unit of time
is this making sense
the point I'm making here is that time
is the thing
we all have the same twenty four dollars
in our wallet it's about how we allocate
them and what we get back for them how
well we trade
just said that there you go degrees all
that
so Leverage is the difference between
what you put in and what you get out
there are fancy definitions for it this
is the best one that I have
and so I said I would cover three things
the first one is how making money really
works the answer to that question is
Leverage
you make more money by trading your time
for more [Β __Β ]
more output
the second
is why new stuff is making you poor and
this is especially relevant for everyone
here part of this again was inspired by
the conversations I was having last
night at Yogurtland so thank you for
everybody who shout out for that
this is also how not to get leverage and
I felt compelled to make this because I
hope that some of you identify with this
because I would bet
that the majority of you are doing this
how not to get leverage there are five
pieces to this that I want to break down
today number one uninformed optimism
number two is a story I'll tell you
about a construction buddy of mine
number three is something I call the
magic wand Story number four is half
Bell Bridges number five is one with the
red dress you're like I have no [Β __Β ]
clue and that means you will so let's
start with uninformed optimism
who here has seen this this is stages of
change stage of transition anyone seen
this this chart before okay cool not a
lot of you perfect
so there are five steps and I remember
the first time I saw this it like it
changed my life
whenever you're analyzing something new
who here has had a buddy tell you about
something that they're doing and they're
making a lot of money doing it and then
you immediately feel shitty about what
you're doing and then think I should get
out of my opportunity vehicle go over
here and do what they're doing who's
felt that
thank you everyone has
the reason is because we're at step one
which is uninformed optimism you don't
know enough about what they're saying
they're just giving you the highlights
they're giving you the Instagram reel
they're not giving you the real
once you decide to get out of your
little vehicle and then going over there
then you tell your buddy you're like hey
why am I not making money he's like oh
well there's like a hundred other
[Β __Β ] steps that I didn't talk to you
about in the beginning but like and it's
actually nearly impossible and I got
really lucky that one time
um and and now all of a sudden it looks
like all the people at your old job are
making more money than you uh but yeah
let's keep doing it so you move to St
stage two which has informed pessimism
you are now aware of the [Β __Β ] that is
involved to make the money that you want
in this new thing
now you think okay this is probably the
worst part
but then time elapses
and it's still shitty and you still
haven't made money yet it blows more now
because you have invested more time and
still have zero so your actual output to
time is low rate which is why it's so
painful
which is where people get into the
crisis of meaning why the [Β __Β ] am I
doing this what does money even matter
anyways you know what I'd be happier if
I just spent more time with my kids you
change your goal because you encounter
difficulty
and so it happens most times
is that people then crash and burn
I'm going to skip one forward and then
I'm going to come back because I want
the visual to work the way I want
um ah [Β __Β ] it
okay so if you're at the crisis of
meaning this is where most people
offshoot what happens here where that
that fourth dot there on the bottom
if I were to cross it out and write
uninformed optimism again
that's what most of you do
you find about something cool
inform pessimism it kind of sucks oh
[Β __Β ] it's way harder than I thought
uninformed optimism I'll try something
else
and then you do it again and again and
again
and the difference between video games
in real life where you you face the boss
and you can't pass the level until you
beat the boss is that when you die in
the video game you restart a few seconds
later in the game of Entrepreneurship
you start years later
this is why people don't progress they
keep fighting the same boss that can't
learn the same [Β __Β ] lesson they keep
losing
and I'm saying this because some of you
I heard at Yogurtland and I know that
that's representative of other people
here
you keep fighting the same boss and the
boss is being able to stick with it
is getting through in different charts
on this the crisis of meaning is also
called the valley of despair
is getting through
from there you get into informed
optimism you figure out that little
thing like I had to do this one thing
and then this started working and then
you know what I found out I could clean
the list through this tool I found on
the internet because I joined this forum
and they started doing that and then all
of a sudden my pickup rates tripled
right or my response rates tripled or my
throughput on my website went up
whatever it is right
and so you have to get through that
piece then you get to informed optimism
and the number six you achieve and then
all your friends are like yo what are
you doing you're like oh I got this
thing and then all of them come right
that is where most people start
something new over and over and over
again and they don't learn the lesson
and so this is what their life looks
like
over
and over
and over and over again
who here has more than one business in
the last 24 months be honest
thank you for being honest I appreciate
it
first thing it's normal I had nine
businesses and I was broke
so I say this with the pain of
experience I'm not saying this to to be
on a Pulpit I'm saying it because the
faster you can get through it the faster
you will start making money you have to
beat the boss
everyone thinks the grass is greener but
the other side's still aligned with [Β __Β ]
like that's why the grass is so great
there's [Β __Β ] everywhere I have a CFO
who's been with us for a long time she
went through all of our exits last year
she's probably almost 60 and she has to
sing she's like it's all [Β __Β ]
doesn't matter what business it is they
all got [Β __Β ] she's Southern
and uh Suzanne's awesome but it just
always reminds me of this is that
there's always [Β __Β ] and whenever we're
starting something new we encounter
something that we didn't know before and
we're like oh this makes this shittier
and then we think well are we going to
jump out no
well this is new information great we're
more informed fantastic so that is the
thing number one that is keeping you
poor uninformed optimism
number two is a little story I want to
tell you so I was called up probably two
three years ago by a guy I knew in high
school we hadn't talked in a while and
he said hey I've got this roofing
business uh you know I want to scale it
I want to go big I was like that's
awesome man
and so he was telling me about the
roofing business tell me about the
roofing business and all of a sudden he
says
oh yeah I mean we also do some general
contracting work I was like
okay uh
why don't you grow the roofing business
he said well you know don't leave money
on the table okay
um
and then this is going to sink in for
some of you guys uh and then and he was
like I was like so you've got the
roofing you got the GC stuff he's like
yeah that's what I'm doing he's like you
pause for a second it's like well we
also kind of flip houses too so we like
fix them and flip them we also do the
Contracting work but we fixed the roof
so we just get huge costs we're
vertically integrated
it's like dude you're making less three
million bucks you're gonna [Β __Β ]
vertical integrated you're distracted
right
and
he was like how do I scale and I was
like just pick one he's like what do you
mean I was like pick one it's like why
do you think you can't build a billion
dollar roofing business
just doing Roofing and just get better
at doing Roofing
he said well I don't leave money on the
table
who here said they don't leave money on
the table
the money or you were leaving on the
table is the focus that you're not
giving to the one thing that matters
and so by the way this is the self-made
women list for Forbes this is Diane
Hendricks
she's the number one wealthiest
self-made Woman by the way and she owns
if you can see it there ABC Supply
which is Roofing
not housephobic not General Contracting
work
Roofing
why didn't he build that
he's smarter than Diane Hendricks that's
why
so this is the list
and this is what I want you to notice
about this this is the Forbes the top
six for women self-made
notice the age of the people on there
age is the left column 75 78 84 90 89
63.
on the right notice the source Roofing
Healthcare software retailing gas
stations Trucking Little Caesars Pizza
I.T
so sexy
the point of this slide is that if you
want to build something epic you have to
be able to do the same thing for an
extended period of time without
convincing yourself you're smarter than
you are
which means if you wanted to not make
money this is what you should do
number one do lots of different things
number two do them for short periods of
time don't stick with it too long
because you might see success number
three do not get help okay
number four make all the mistakes in
your own it's the best way to do it
because otherwise if you start learning
from other people's mistakes you can
move faster so don't want to do that
when you make a mistake do it again
just repeat it especially if you're like
I've been here before do the same thing
who here knows the definition of
learning
I'll tell you
same condition different Behavior
so if you want to teach someone
something and you present them the same
condition and they have not changed
their behavior they have not learned
if you came to this Workshop this
weekend with the intention of learning
something can I get everybody to raise
their hand if they had the intention of
learning something while they were here
if you go back home
and your behavior does not change
you learned nothing
nothing
truly took the money and burned it along
with losing the output that you lost in
the time of here plus travel
so if that definition has been singed
into my mind because if I want to learn
something and I have the same condition
that's been presented I have to ask
myself if I do the same thing again it
means I have not learned
and I don't want to play this boss again
so if you do want to make money you can
flip it you do one thing for a very long
period of time you get help from other
people You observe what other people
have been doing you only make the
mistake one time if you are going to
make them
and you always grow and challenge the
beliefs that you had and try and answer
the question what do I believe to be
true that is not
because ordinary business is done for
Extraordinary time create extraordinary
results
compounding is the thing
like it has to compound if the vehicle
you are in right now does not compound
with time then change the vehicle
get into something that if you stick
with it for an extended period of time
it would be unreasonable that you will
be poor
that was my construction Buddy Story
so I had a conversation with a different
friend
and he had a zillion businesses like a
zillion I get a spreadsheet for how many
businesses he had and they were all
[Β __Β ] businesses they didn't actually
make any money but he had like a logo
and a website and like some VA you know
what I mean like oh it's a business
and he was believing the fallacy of I'm
just going to wait to see the thing that
takes off and then go on on that who
here has thought this thought
I get it I'm gonna Focus I'm just gonna
wait I'm gonna be patient see which one
works out and then because I'm a good
you know statistics guy I'm gonna go
with the winning horse right
but the reality is that any of them
could take off
you could have a billion dollar roofing
business you have a billion dollar GC
business you have a billion dollar
householding business
but
you can't have them all
so you got to focus you gotta pick one
and the nice thing is it doesn't really
matter which one you pick but you do
need to pick one the picking is the
thing that grows it the ability to say
no is the thing that grows it not the
thing you pick
it's who you are as a consequence of the
decision that changes the outcome not
the vehicle does that make sense
so how arrogant is it to think that we
can do multiple things at once and
compete with someone who's spending all
their time on that one thing
it's ridiculous and yet we still do it
and so this is I love this little
cartoon this guy you know he's got all
the spinning plates
and this is this is me with the red hair
going to this guy who's hopefully my
competitor and handing him more plays be
like oh do you see all that shiny object
over there here more plates go I'm just
going to do this one thing
it's my favorite thing in the world
competing against somebody who's doing
lots of things it's very easy to win you
don't have to do much
because you only have to do a tenth of
what they do
so this is what Focus really looks like
one thing all in
you can write that down you can Circle
it
one thing all in so I asked my friend of
mine that had the Excel sheet with all
these zillions of questions right I said
if I had a magic wand and I ended all
your side projects except for one
just one the one that you think has the
most opportunity the one that's probably
making the most money right now that
you're not paying attention to because
it's boring because it's always been
doing a while
he's like yeah I was like you know what
business it is he's like yeah
like okay if you ended everything else
because I I have a magic wand so I get
to make the rules
magic wand
they all disappear I said how easy would
it be to grow that thing
he just looked at me it's like
really [Β __Β ] easy
I was like hmm
interesting
and so he's like but that would be so
hard because of insert real reason that
no one gives a [Β __Β ] about
no one cares but I have to fire that
uh-huh
but I would have to shut down uh-huh
but I would have to lay off uh-huh
all the riches you want are on the other
side of a few hard conversations
and most people spend the rest of their
lives not having them and being poor and
wondering why
it's gonna suck it's gonna be okay
that was my number three story the magic
wand
number four my favorite story
who here has seen The Matrix
awesome
you need to become the person who can
say no to the woman the red dress
the woman in the red dress is the
representation of everything that is
shiny object and beautiful and wonderful
in the world whatever your flavor of
woman in the red dress is
and the thing is and this is something
that I have now learned painstakingly is
that being able to say no to the one in
the red dress changes at levels
you can say no to the one in their
address who's a crackhead on the corner
right a thousand bucks a month you're
like I can say no to her no worries well
I got something better right but then
the ten thousand dollar a month girl
you're like huh okay interesting and if
you're making ten thousand dollars a
month it's hard to say no to that girl
but let's say that you're a a
hard-working discipline [Β __Β ]
you get to a hundred thousand dollars a
month there's a hundred thousand dollar
a month girl that's an opportunity that
is much bigger than the one that you
said no to before and you have to learn
to flex the muscle at every level this
this is a lesson that I learned the hard
way
I started a supplement company
when Jim Walsh was doing 26 million a
year and rather than say oh why don't I
just take gym launch to 40 next year
I'll start another thing
gym launch stayed the same and then I
added another source of Revenue that got
us to 37 but it was a mistake
strategically I can tell the story it
sounds great on paper we sold the
company lots of money whatever but like
it was not the right move
and so I had learned how to say no to a
million dollar opportunity
a five million a 10 million but I hadn't
learned how to say no to a 20 million
opportunity when I was making 20 million
and so like the woman in the red dress
becomes more seductive more attractive
the better you get
the more status you get the hotter the
girl you attract right and I'm saying
this figuratively for entrepreneurs does
that make sense for everybody who's not
into women with red dresses okay
because this is what the woman in the
red dress really looks like
just ready
to smash your [Β __Β ] and distract you and
spread you thin so that you can't keep
your eye on the ball
and then eventually she spreads you so
thin that you don't know how to get out
and it feels like quicksand because as
soon as you put out fires here there's
fires here there's fires here fires here
I need more Talent you take the best
person from over here to fix that
problem then this thing goes to [Β __Β ]
how do you get out gotta cut [Β __Β ] gotta
eat your ego
you got to watch your Revenue go down so
you can refocus reconsolidate bring the
troops in I'm saying this because
someone here needs to do this and I wish
I had [Β __Β ] heard this from somebody
else
I would avoid a lot of pain
so how do you become that person who can
say no to the woman in the red dress
you do the activities someone with those
character traits would do despite not
feeling good about it
so I'll tell you a story that'll drive
us home
so Leila and I were on this walk not
that long ago and I said you know I was
like I'm so impatient I'm so impatient I
need to be more patient right and she
was like
I don't think you're impatient
I was like yeah I am I [Β __Β ] hate this
let's I want this to be faster I want
everything to be bigger faster stronger
she's like yeah but
you're not changing your behavior
like you feel that way but you haven't
done anything that's not aligned with
the long-term strategic Vision I was
like yeah but I feel [Β __Β ] terrible I
want to be like Zen about it he's like
yeah that's not how it works she's like
patience is about the behaviors we do
not how we feel about behaviors
so who here has heard the quote courage
is not the absence of fear but it's
action despite fear right
patience is not not feeling impatient
and feeling terrible about waiting about
not jumping on these opportunities
it's about not jumping on the
opportunities despite feeling like [Β __Β ]
about it and wanting to right loyalty is
not necessarily about the fact that your
eye doesn't get caught every once in a
while right or maybe even feel a desire
that you wish you didn't feel
it's about what you act on it
because who here would rather have
somebody okay I think you already know
where I'm going with this right in terms
of loyalty how would you rather right
you'd rather the person not act on the
behave on the thought that is how you
gain the trait and then over time this
is my belief
if you do that enough times those
feelings go away through exposure
therapy like you get exposed to this
condition over and over again and
eventually
you know that you don't die because
that's what it feels like
and so whether it's a loyalty issue an
Integrity issue a courage issue a focus
issue which is the point of this message
today
to become that person you just start
acting like the person who has those
beliefs and you behave in that way and
then it will sink in
want me to their address
so new distractions kill leverage and
keep you poor Focus multiplies it
I said three things number one how
making money really works it all comes
down to leverage number two why making
new stuff is making you poor
which means you have to focus and number
three is why better is Leverage
this is the make money part
here's a simple approach to growth that
we use with our portfolio companies
better is better than new
better is leverage because remember
Leverage is how we get more from what we
put in
if you do it better
you get more for what you put in that is
Leverage
examples
if you have call scripts if you make
content if you have websites that you're
building if you have follow-up sequences
if you have offers
if you do the current thing you get what
you currently have if you make it better
you will get more from the activities
you can create leverage in your business
by being better
and better comes from boring
most of us solved an emotional need by
quitting whatever we were doing to start
to become an entrepreneur
and then we had a positive reinforcement
from that from that behavior and so then
we learned that as a way of life
but the problem is that the thing that
forced you or gave you that emotional
that decrease your action threshold thus
that you would jump into the next thing
is the very thing that'll make you jump
out of the opportunity that could become
your billion dollar thing
does that make sense you felt
uncomfortable on your job you quit your
job you got rewarded and so you think oh
when I quit things I'll get rewarded but
that's the wrong lesson it only works
once
and then you have to unlearn it and with
each level of Entrepreneurship there are
lessons like that that you have to
unlearn the thing that got you there
better comes from boring
it is not exciting to run your 38th
split test on a landing page it does
make you more money
it comes from doing all the [Β __Β ] that
you know you should be doing but aren't
and so right now this is an activity so
this is an active part
imagine a list of all the stuff you know
you should be doing but aren't doing
right now within your existing business
like right now like top of your head you
know there's some [Β __Β ] that you should
be doing in your business
I'm going to give you 15 seconds
the reason that stuff is so important is
because you already know what you need
to do
and we come here get raw Rod
Etc
but
the [Β __Β ] is on your desk at home
that is the work that must be done it
needs doing
and most of us know what to do and we
don't want to confront it because we
want to do something more stimulating
and exciting that makes us feel alive
and your business doesn't give a [Β __Β ]
better
is boring and better gets you more for
what you put in better as leverage now
imagine who here has a few businesses
be really [Β __Β ] hard to make that list
wouldn't it there's too much [Β __Β ] it's
too much too much stuff
to make the business
which means
becomes impossible
which means that's why you have to pick
one because there is so much stuff that
has to be done to do one business right
just do it right
if you do it right you grow by default
there's a promise
who here is like I know I should be
doing more email follow-up I know I
should be calling my leads within five
minutes
who here thinks that right now
okay let me ask a different question and
many of you did raise your hand
who here calls other leads within five
minutes
okay like two hands you will triple your
sales
triple
triple
who wants to Triple the [Β __Β ] business
triple
but that sounds boring
sure is gotta Implement CRM got to get
round robin set up
Lee's got to come in you got to figure
out how call prioritization Works
between the team
that's boring
makes you a shitload of money
that's how it works who's going to win
two different businesses the guys who
got the [Β __Β ] dialed
better gets you more for what you put in
and when you do get home
order it from the amount you have to put
in to get the thing done that will
result in the most output
and start taking them off
and you continue to ignore the new
things that sound really exciting
and you become the person who's able to
do that by pretending to be the person
who's able to do that
because you already know what to do so
this is a mental model I really like a
lot
who here has ever had a coach or a
mentor
has anyone ever coached or mentored
other people
does anyone feel like they're a better
Mentor than they are a person who does
[Β __Β ]
I do all the time
and so the thing is is I ask myself this
question it's actually been one of the
like most profound most helpful
questions I've had which is if I were
coaching me and the beautiful thing
about this is that when you coach you
you have no other agenda
you're just trying to help you
and you also have more information than
anyone else has you've been on every
conversation you've been you've read
every email you've seen every report
so if you were coaching you right now
what would you tell you to do
and what's crazy about this is that half
the [Β __Β ] time is not what I'm doing
coach me much smarter than Mimi
right
Mumu okay
um
take your own advice
if you do that I promise you'll make
more money
be like ah but I'm a special snowflake
you're just convincing yourself that
you're smarter than you are giving
yourself reasons that reality does not
apply to you
it does and this is just a boss level
you might need to keep going against the
snowflake until eventually you figure
out that you just got to melt it by
being there and hanging in
and so in my entrepreneurial career
there's two periods very clear
definitions of periods of time in my
life the first period was when I was
distracted this is when I did not make
money I had six gyms I had a launch
business return we do gym turnarounds in
person that's where I actually
physically was not at my gyms I had a
dentist a dental agency I had a
chiropractor agency
I think I had something else
more lots of fingers right and I was 26
ish
and I would love to tell people oh I own
nine companies right
I'm poor but
um but it felt really good struck my ego
not my bank account so it was only one
Layla the angel of my life it was like
Hey you know
this one makes us the most money and you
spend the least amount of time on it
that Jim launch thing actually works
uh but I have to like I would have to
like sell all those gyms I'd have to end
Partnerships I'd have to let go of
people in the agency and she was like
yeah or you could just you know keep
doing what you're doing just clearly
working
Point taking you know
um and so over the next 90 days I sold
five gyms shut one down shut down both
agencies
um and got rid of everything
and 12 months later from that moment we
were doing one and a half million a
month
from zero
and so and 12 months after that we had
four and a half million a month
one thing
and so this was the second period
just focus it's so much easier to stack
the deck in your favor if you just do
one thing
because when you focus on one thing you
make it unreasonable to fail if you do
one thing for an extended period of time
it becomes unreasonable to suck if you
do it more than anyone else has done it
you'll be better than that
just is what it is people watch all the
time they're like hey how did you get so
good at sales I took four thousand
[Β __Β ] sales calls that's how I did it
so I did it I didn't even I'd even go
through a sales training at four
thousand [Β __Β ] conversations that's
why I did it
and so if you if you wanted to be the
best salesman in the world then have
more sales conversations than anyone
else has if you want to be the best real
estate investor then do more deals than
anyone else has and the sub like the
subsequent before that is send out more
mailers than anyone else has have more
cold callers than anyone else has send
more cold DMS than anyone else has
and you'll become the best
and if you put that as the output the
thing that you're looking at
it becomes unreasonable that you would
be not the best right like you're at
least going to be top 10.
and if who here would be top 10 in real
estate in the US would you be okay with
that
right it wouldn't be bad
and the thing is that everyone fails
because they want to move fast like this
is the number one issue so
they don't have a solid foundation they
draw the dotted line they think I'm
going to try and shortcut it I'm not
going to fix my product I'm not going to
make it really good because I want to go
fast because I want to show to my
friends that I'm growing every month I
wonder how good I am
the thing is it's a short game
like how many times it's like it's the
restaurant example is so simple so many
people start a restaurant slap two
pieces of Wonder Bread together put a
slice of bologna in there and then
Market it like [Β __Β ] crazy and they're
like dude I don't get why my business
isn't growing I'm like because everyone
who has your food literally tells
everyone that it [Β __Β ] sucks and never
come back
so there's this invisible hand that
works against people which is
who knows about the power of Word of
Mouth right
the Invisible Hand who here runs ads let
me ask that question who runs
advertisement okay
if you run ads and it has become more
expensive for you disproportionate to
the increase in cpms which is cost for
impression or eyeballs in that period of
time that you've been in business then
it means that you have negative word of
mouth
so if you're like well I don't get that
many referrals oh but you sure do get a
whole bunch of people who you get
Negative referrals you get Negative
sales you have to spend twice as much of
a car Customer because every other
customer that you would have acquired
was told by someone else not to buy from
you
it's the invisible hand when you
shortcut it promote promote promote
and then Flatline and then dissolve and
then you come up with new [Β __Β ]
and you who here has seen the people on
the internet doing this game
over and over and over again they don't
get the product right they put two
pieces of baloney you know sandwiched
together with a baloney slice in the
middle and they call it a product and
then we have ham with one slice in the
middle and it's still [Β __Β ]
because they don't want to take the 12
months to actually get the [Β __Β ]
product right
but on the long game 10 years from now
the guy who takes the first year takes a
break even on that year just to get the
product right makes everything easy but
no one can wait 12 months
because they can't see the big picture
they keep trying to string three of
these little shortcuts together rather
than build the foundation
better is Leverage
better gets you more for what you put in
this is what small businesses look like
this is what big businesses look like
the amount of activity is actually not
that different it's just a line it's
just all in the same direction
it's all it is it's really not like I
promise you've been in both it's all it
is there's nothing there's no magic
it's just a windup
same input more output
well boring but better looks like it
means split testing landing pages not
once but weekly
not just one time when you come here you
put the process in place to do it every
[Β __Β ] week split testing emails not
once but weekly
making new ads and creative not when you
have to
but before you need them
role playing with the sales team not
once but daily
role playing with customer success hey I
want a refund hey I hated this hey it
wasn't fast enough what did they say
role play if you have amazing customer
success they role played every day
they'll get [Β __Β ] good I promise
how exciting is that not at all
not at all but you know what it does it
makes more money
taking 10 more interviews for the same
role sucks
to talk to 10 more people for no reason
but there is a reason because you're
trying to find the one person that's
going to give you 10 times The Leverage
on that time you got back
think about this
but if you didn't take those interviews
you hire someone wait six months and you
have to do the whole thing again and you
lost the six months that's what Layla
was talking about
taking more time to make your lead
magnet better
make your offer better and better all
these things are boring but make you
more money
and so this is my promise
is that doing all the un60 [Β __Β ] that you
aren't doing but no you should is the
secret to the success
my promise if you do nothing new
but only what you already know you
should be doing that your self coach
tells you to you will make more money in
the next 12 months than you can imagine
you just got to do it right
so this is actually a text I got uh
yesterday or yeah it was yesterday
um this guy had lost everything
um and
he had set a goal down for himself and
he said hey uh last day of 2021 set a
business goal that's always quite
honestly unrealistic impossible to hit
well I'm going to surpass it in Q3
and so the only thing that I told him to
do was to commit to the activities
I was like just do the same thing every
day rain or shine it was Prospect I was
a prospect every day he's like and the
first few months he actually had a
couple good months and then he slowed
down
he's like how do I say how do I stay
committed I was like because you felt
successful for [Β __Β ] getting an
outcome
it's irrelevant
for who you are
some of you guys have heard this quote
but your work works on you more than you
work on it I was like you need to become
the person who isn't satisfied with
whatever that outcome was but only by
the commitment that you made to yourself
about the activity that you were going
to do
and so whether it was up or it was down
it divorces the actions from the outcome
not to say that the outcome is not the
work it is but in terms of Who You Are
who you are is is forged in the
repetitive Act
final point
who here knows the difference between a
seven out of 10 book and a nine and a
half out of ten book
about 20 times the work
realistically
who you knows the difference in sales
between seven and a half book and a nine
and a half book
about a thousand times the sales
and so
if you do 20 times the work and get a
thousand times the effort that's a 50x
increase per unit of input
it's a lot it's worth it but you do have
to do 20 times more work
that is Leverage
an opportunity is missed by most because
the distressed and overalls and looks
like work
and so I said I was going to cover three
things and I have a little thing at the
end here it'll take me less than five
um
you guys go with that all right sweet so
I said I was going to cover three things
I want to make sure I filled my promise
number one is how making money really
works leverage everybody feel good with
that does that make sense all right
number two why making new [Β __Β ] is making
you poor and while you have to focus
number three is why better is Leverage
awesome and so I want to wrap up my
presentation with a quick demonstration
of Leverage in the real world
getting more out of the same thing
okay so we're gonna do an exercise to
wrap this up
and I think that it will do more than
anything I can say with these slides
this will probably be what you remember
unfortunately with all my picture pretty
pictures
um so I'm going to take a single action
and increase the leverage in real time
in front of you is that cool so you'll
see a before and after in front of your
eyes it's like a real world money magic
trick okay so I gave you a lot of
examples of things you can improve in a
business better cause better content
better sales groups better website
better follow-up better offers right
so what I'm going to do is I'm going to
highlight just one of these things all
right for you right now and show you how
many riches lie unlocked within your
business today that you already know
about
so I'm going to focus on offers because
it's an easy one I can do in front of
everyone
all right so I'm going to show you the
leverage of a better offer so I'm going
to sell you a book for a hundred
thousand dollars
just kidding
a thousand dollars
so the point of Leverage is a better
offer sorry the point is leverage of a
better offer one action selling one
product a book Leverage is how much
money it fetches for the same activity
does that make sense our equation this
makes sense okay
here are the directions for this
activity the moment you feel that a
thousand dollars of value has been
created please stand up and stay
standing okay
does this make sense this is simple
directions if you feel a thousand
dollars then stand and stay standing all
right I'm repeating it
100 000 just kidding typa
so
Let The Leverage building begin
I have 10 books with me today
who wants one for a thousand dollars
raise your or stand up
well thank you stay standing three
people already have three thousand
dollars is this exciting
all right I'd even tell you what it was
yet it's a really good book
probably giving it away
who now wants it I said it was a really
good book
no more people okay
it's a best seller
still three people oh four there we go
four people haha
it's my book right
now I got one more two more three more
all right four more so we got eight nine
ten eleven I've already accounted for my
books but just wait there's more
so I said who wants one of the ten for a
thousand right we got all these cool
there's all the reviews people say it's
good
very good rating
please stay standing
it's also number one number four and
number seven for the last 13 straight
months pretty cool right in marketing
and sales I think it's pretty dope
please stand up
this guy read the book and quadrupled
his monthly Revenue just from reading
the book
if you quadruple your Revenue would that
be worth it oh yeah six seven eight nine
ten eleven twelve a lot more okay this
is it wow probably 40 or 50 up okay
but wait there's more
going to autograph the book
there's only one that I have autographed
actually that's not true I think there's
probably five
oops I had to get a really fat marker so
you could sit
that's actually my my it's embarrassing
not yet not yet not yet not yet oh you
got to stand you got to keep standing
got to keep standing
one out of ten
I'll put my personal cell phone in the
inside
thousand bucks
I'm not gonna show it to you
all right we got about two-thirds okay
I'm gonna review for your sales calls
rewrite your script with you
and uh drill your sales team on how we
set everything up
does that work for a thousand bucks
stand if that's worth it for you with
the book
please stand
I'll have my traffic guy who right now
we get about 20 000 leads a day across
our portfolio uh he'll do an entire
funnel breakdown to see about 11 pages
he'll break down everything that you
could do differently within the funnel
different headline split tests different
paragraphs different copy things
different images different layouts right
now we have between more than 2x but I
feel confident saying we can double your
traffic
all right we're close we're like 90
percent
I'll also use my network to recruit the
one missing star player that you have in
your company
so right now we will look at your
company and we'll find out what the
biggest missing pieces in leverage and
put someone in there for you
stand up with that that's worth a
thousand bucks
I'll also spend two hours with you on
the offer that you're giving right now
so you can get more people to click more
people to sign up for the calls more
people to show more people to buy and at
higher prices
all right I think I got like one person
still seated I got I see you I see you I
see what I got I'll see what I got see
what I got
I'm also going to feature you on my
channel so that two hours will televise
it and we'll distribute it across all of
our channels so right now that gets
about 10 million impressions so in real
advertising dollars it's about a hundred
thousand dollars in advertising just for
in terms of that's what people are
willing to pay for three 90 second spots
uh and it's a 30 minute spot so it would
be significantly higher than that so if
that's worth a thousand bucks let me
know
by standing is how you do that
and
if you don't make three times what you
pay me for this book
I'll give you all the money back and
keep all the work that we did
that work measured over 12 months that's
the fine print Fair
please stand if that's still worth a
thousand bucks I see you
and uh there's not 10 books there's only
one
look around
and that's how you increase leverage to
sell and offer
set for 25 buckets for a hundred
thousand dollars
so does everyone understand stay
standing do you ever understand that you
just need to do it better
output comes from volume times leverage
you must do more and get more from what
you do the way you get more from what
you do is you first do everything that
you know you should be doing better
the way you do that is to focus on one
thing
for a long time without distraction
anything can become big with time when
you line all actions to a single outcome
and you keep working at it your success
will look effortless and obvious from
the outside but you will know that it
came from years of saying no to
everything except that which mattered
most
this is how we grow companies at
acquisition.com through Leverage
most entrepreneurs like the who the what
and how to scale at acquisition.com we
recruit the who we give them the what we
show them the how and once an
entrepreneur has all three the business
scales by default
Laila already showed you these
we've got more free courses at
acquisition.com if you guys like this
stuff if you want to learn more from us
and that's it thank you guys so much I
appreciate you
[Music]
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