How this investment changes education forever

Summary

The speaker discusses his investment in School, a platform for online education, highlighting the industry's shift from traditional to alternative learning. He emphasizes the importance of aligning personal and business missions and the significance of a product's ability to grow organically. The speaker shares his personal journey and insights into the education market's growth, particularly in e-learning, and offers a free course and community support for those interested in monetizing their skills online.

Takeaways

• 💼 The speaker sold their last company for $46.2 million and crossed $100 million net worth at age 32, now making their biggest investment ever by co-owning School.
• 🤔 They emphasize the importance of understanding the decision-making frameworks of successful entrepreneurs like Jeff Bezos, Warren Buffett, and Elon Musk when they were at $10 million and $100 million.
• 🎯 The speaker wants to teach others how to model the thought processes behind big investments to increase their wealth and make better decisions.
• 🌐 The education industry is huge globally, with formal education shrinking by 6% annually, while e-learning and alternative education are growing by 20% per year.
• 📉 Formal education is declining because people are increasingly choosing alternative ways to learn practical skills that offer better returns on investment.
• 📚 The speaker aligns with the trend of creators providing valuable niche education, highlighting that individuals are more willing to pay creators directly for skills rather than go through formal education.
• 🔑 School's mission aligns with the speaker's goal of making real business success accessible to everyone, offering an innovative platform for teaching practical skills and business knowledge.
• 🚀 They believe in School's potential to disrupt the education sector in the same way Airbnb disrupted hotels or Uber disrupted taxis.
• 📈 A key reason for betting on School is its ability to grow through customer referrals, creating passive growth instead of relying solely on advertising.
• 🎓 The speaker invites others to join School through a free trial, offering access to resources, courses, and a supportive community designed to help people build successful online businesses.

Q & A

What investment did the speaker recently make?

The speaker recently made their largest investment by becoming a co-owner of School.

What is the speaker’s view on the concept of a 'silver bullet' for business growth?

The speaker refers to the 'silver bullet fallacy,' which is the belief that one big solution will fix everything. Instead, they believe in multiple smaller factors, like 'golden BBs,' that collectively lead to significant growth.

Why is the speaker bullish on e-learning and alternative education?

The speaker sees a major shift in the education industry, where formal education is shrinking by 6% annually, while e-learning and alternative education are growing by 20% annually. This shift reflects changing consumer behavior, where people prefer learning practical skills that provide direct economic benefits.

What is the significance of the $1.3 trillion U.S. education market in the speaker’s argument?

The speaker emphasizes the size of the U.S. education market ($1.3 trillion) and highlights the growth in e-learning. They see an opportunity for alternative education to gain a significant portion of the market as formal education declines.

How does the speaker’s past business experience influence their decision to invest in School?

The speaker's previous companies, Gym Launch and Prestige Labs, served creators and took advantage of shifts in consumer behavior toward alternative education. This experience made the speaker confident that School is positioned well in a growing market.

What role does the 'golden ratio' play in evaluating a business?

The 'golden ratio' in business is the balance between the percentage of customers who refer new customers and those who leave (churn). A business grows passively if more customers refer new customers than those who leave, creating compounding growth over time.

Why does the speaker prefer investing in businesses with passive growth?

The speaker prefers businesses that grow passively through customer referrals rather than relying solely on advertising. They believe passive growth indicates a strong product, and when a business has this kind of momentum, advertising can further accelerate growth.

Why does the speaker believe that School has the potential to disrupt the education industry?

The speaker believes that education, unlike other industries disrupted by technology, is still fragmented. They think School has the potential to be the platform that consolidates education, offering practical and scalable learning solutions.

How does the speaker’s personal mission align with the mission of School?

The speaker’s personal mission is to make real business accessible for everyone, which aligns with School’s goal of making business education fun and easy for everyone. This shared vision reinforced the speaker's decision to invest in School.

What offer does the speaker provide to potential users of School?

The speaker offers potential users a 14-day free trial of School, where they can access courses, community support, and resources to help them start making money online. They also mention the 'School Games,' where participants can compete for prizes by building communities.