The Millionaire Fastlane ► Book Summary (ft. MJ DeMarco)

Summary

The transcript discusses the concept of the Millionaire Fastlane by MJ DeMarco, contrasting the slow, steady approach to wealth with the rapid, controllable wealth creation of the fast lane. DeMarco criticizes common financial advice and emphasizes the importance of addressing real needs, creating high entry barriers, maintaining control, scaling the business, and detaching time from income. He advocates for kinetic execution, solving problems one step at a time, rather than seeking shortcuts or all the answers before starting.

Takeaways

• 🚀 **Pursuit of Shortcuts**: The script emphasizes that there are no shortcuts to success; sustained effort and hard work are the keys to achieving goals.
• 🛣️ **Three Lanes of Life**: The concept of three distinct paths in life is introduced - the sidewalk (immediate pleasures), the slow lane (sacrifice for distant rewards), and the fast lane (rapid wealth creation and lifestyle design).
• 💡 **Fast Lane Strategy**: The fast lane is defined as a business and lifestyle strategy that leverages controllable, unlimited potential to create wealth and an extraordinary lifestyle.
• 🔧 **Control and Leverage**: In the fast lane, individuals have maximum control over their time and income, unlike the limited control in the slow lane.
• 🏢 **Business vs. Employment**: Self-employment and owning a business are the hallmarks of the fast lane, as opposed to traditional employment which is associated with the slow lane.
• 🚀 **Rapid Wealth Creation**: The fast lane focuses on creating significant wealth in a short period, rather than waiting until retirement.
• 📜 **Five Commandments of Fast Lane Business**: The principles for building a successful business in the fast lane include focusing on needs, creating high entry barriers, maintaining control, scaling, and detaching time from the business.
• 🚫 **Avoiding Entrepreneurial Masturbation**: Reading books and consuming content without taking action is likened to 'entrepreneurial masturbation'; it's important to apply knowledge to real-world problems.
• 🎯 **Addressing Specific Needs**: Successful businesses address specific needs, problems, or service deficiencies, rather than just chasing money or personal interests.
• 🏆 **Exceptionalism**: To make the 'do what you love' mantra work, one must not only be passionate about their work but also be exceptional at it and ensure it fulfills a need.
• 🔄 **Kinetic Execution**: The concept of kinetic execution is introduced, advocating for starting before being fully prepared and solving problems as they arise, rather than waiting for all the answers.

Q & A

What is the main argument MJ DeMarco makes against the pursuit of shortcuts for success?

MJ DeMarco argues that the pursuit of shortcuts for success is futile because there is no shortcut to success. He emphasizes that true success comes from doing the necessary work and not looking for quick fixes.

What are the three lanes described in the transcript and what do they represent?

The three lanes described are the sidewalk, the slow lane, and the fast lane. The sidewalk represents a lifestyle focused on immediate pleasures without consideration for the future. The slow lane symbolizes a more traditional, long-term approach to wealth accumulation, often through steady work and investment. The fast lane is about rapid wealth creation through entrepreneurship and leveraging business opportunities.

What does MJ DeMarco criticize about the advice 'do what you love and the money will follow'?

MJ DeMarco criticizes this advice as misleading and incomplete. He argues that to be successful with your passion, it must fulfill a need in the market, and you have to be exceptional at it. Simply pursuing what you love without these conditions will not guarantee financial success.

What are the five commandments of building a fast lane business according to the transcript?

The five commandments are: 1) The commandment of need, which emphasizes solving a real problem or need in the market. 2) The commandment of entry, which suggests that higher entry barriers lead to less competition and stronger businesses. 3) The commandment of control, where business owners should be in a position to set the terms and not just follow them. 4) The commandment of scale, which is about creating a business model that can grow without being limited by geography or resources. 5) The commandment of time, which means detaching your business from your personal time investment.

How does the transcript differentiate between a 'sidewalker' and a 'slow laner'?

A 'sidewalker' is someone who lives for immediate pleasures without much thought for the future, often living paycheck to paycheck and lacking long-term goals or savings. A 'slow laner', on the other hand, is someone who sacrifices present enjoyment for a more secure future, often following traditional paths like long-term investment and steady employment, but with a slower and less fulfilling wealth accumulation process.

What does MJ DeMarco mean by 'controllable unlimited leverage' in the context of the fast lane?

Controllable unlimited leverage refers to having maximum control and influence over the factors that contribute to business growth and success. This includes time, money, and other resources. In the fast lane, individuals are not limited by traditional constraints and can leverage their skills and opportunities to create wealth rapidly.

According to the transcript, what is the main reason why many businesses fail within five years?

The main reason cited for business failure within five years is the lack of focus on fulfilling a real need in the market. Many businesses are started with the primary goal of making money rather than addressing a specific problem or deficiency, which leads to a lack of sustainable value for customers.

What does the transcript suggest as a better approach to learning for entrepreneurs compared to traditional education?

The transcript suggests that entrepreneurs should focus on learning that is directly applicable to the problems they are facing in their businesses. Instead of general education, they should seek out resources like books, podcasts, or courses that provide targeted solutions to immediate challenges, allowing them to grow and adapt their businesses effectively.

What is the term used in the transcript to describe the process of starting a business before feeling fully prepared?

The term used is 'kinetic execution', which involves taking action and starting the business before having all the answers, and then solving problems as they arise step by step.

How does the transcript describe the mindset of individuals who are constantly searching for shortcuts?

The transcript describes this mindset as an 'everlasting search for a shortcut', indicating a continuous and unproductive quest for easy solutions. This mindset is criticized for preventing individuals from taking necessary actions and doing the real work required for success.

What is the main critique MJ DeMarco has for the seminar and program culture in the self-help industry?

MJ DeMarco criticizes the seminar and program culture for being a 'racket', filled with scammers and hucksters selling无效 solutions that don't work. He is particularly critical of the cycle of selling seminars on how to make money, which ultimately only benefits the seminar sellers rather than the attendees.

Outlines

00:00

🚀 The Fast Lane to Wealth: Debunking Shortcuts and Embracing Hard Work

This paragraph discusses the concept of the 'fast lane' to wealth as introduced by MJ DeMarco, contrasting it with the 'sidewalk' and 'slow lane' approaches. The 'sidewalk' represents a lifestyle focused on immediate pleasures without consideration for future security, while the 'slow lane' symbolizes a more traditional, slow-paced path to wealth often involving long-term investments and savings. The fast lane, however, is about creating wealth rapidly through entrepreneurship and leveraging opportunities. The paragraph emphasizes the importance of hard work over seeking shortcuts and challenges common financial advice such as maximizing 401k contributions and investing in index funds. It also critiques the idea of 'doing what you love' as a path to success, arguing that a business must address a need and that the entrepreneur must be exceptional at what they do.

05:02

📚 The Necessity of Meeting Needs and High Entry Barriers

This paragraph delves deeper into the principles of building a successful business as outlined in MJ DeMarco's book. It emphasizes the importance of meeting needs and solving problems as the foundation of a successful enterprise, rather than merely chasing financial gain. The concept of 'entry barriers' is introduced, explaining that successful businesses have higher barriers to entry, which reduces competition and allows for greater profitability. The paragraph also discusses the importance of control in business, with 'drivers' being those who sell rather than buy stocks, accept rents and royalties, and offer affiliate and dropshipping programs rather than being dependent on them. The idea of scalability is also touched upon, with online businesses being highlighted for their potential to reach a global audience and operate without geographical limitations.

10:05

💪 The Power of Kinetic Execution and Problem-Solving

In this paragraph, the focus shifts to the importance of taking action and solving problems as the key to achieving success, rather than endlessly seeking information or waiting for the 'perfect' moment to start. The concept of 'kinetic execution' is introduced, advocating for immediate action and embracing the challenges that arise along the way. The paragraph criticizes the common practice of 'entrepreneurial masturbation,' where individuals read books and consume content without taking tangible steps towards their goals. Instead, it encourages readers to actively engage with problems, seek solutions, and build a business or product through a process of continuous problem-solving. The idea of overwhelming pre-emptive planning is discouraged in favor of taking one step at a time, tackling each challenge as it comes, and building a successful venture through perseverance and adaptability.

Keywords

💡Life Coach

A life coach is a professional who helps individuals set and achieve personal goals, providing guidance and support through various challenges in life. In the video, the term is used skeptically to question the credibility of a 19-year-old claiming to be a life coach, implying a lack of life experience as a prerequisite for such a role. This skepticism is rooted in the belief that meaningful advice often comes from those who have experienced a breadth of life situations themselves.

💡Success

Success, as discussed in the video, is the achievement of goals or the attainment of wealth and prosperity. It is often associated with hard work, perseverance, and strategic planning. The video emphasizes that success is not found through shortcuts but through consistent effort and dedication to one's work. It is portrayed as a result of taking action and solving problems, rather than passively seeking quick fixes.

💡Shortcut

A shortcut refers to a quicker, easier method to achieve a goal or complete a task. In the context of the video, the search for shortcuts is depicted as a futile endeavor that detracts from the actual process of achieving success. The speaker discourages reliance on shortcuts, advocating instead for hard work and problem-solving as the true paths to accomplishment.

💡Compound Interest

Compound interest is a financial concept where interest is calculated and added to the principal amount, and subsequently, interest is earned on the increased total. It is a method of investment that can lead to significant wealth accumulation over time. In the video, compound interest is mentioned as a common financial advice that may not necessarily lead to the rapid wealth creation the speaker advocates in the 'fast lane'.

💡Fast Lane

The 'fast lane' is a term used in the video to describe a path to wealth that is characterized by rapid wealth creation, controllable unlimited leverage, and a lifestyle that goes beyond the confines of the middle class. It is presented as an alternative to the slow, traditional path of wealth accumulation, such as investing in 401k or following conventional career paths. The fast lane is for those who want to achieve significant wealth quickly and maintain control over their business and lifestyle.

💡Control

In the context of the video, control refers to having command and authority over various aspects of one's business, such as time, money, and operations. It is one of the key elements of the 'fast lane' strategy, emphasizing the importance of being a 'driver' rather than a 'passenger' in one's entrepreneurial journey. Control enables business owners to make decisions that directly impact their success and wealth creation.

💡Scale

Scaling a business involves increasing its size, capacity, or reach in order to serve more customers, generate higher revenues, and ultimately, create more wealth. In the video, the concept of scale is integral to the 'fast lane' approach, as it allows businesses to break free from geographical or operational constraints and reach a global audience. The ability to scale is seen as a key factor in rapidly creating wealth and achieving financial independence.

💡Time

In the context of the video, detaching business from time means creating a business model or product that does not require continuous personal involvement to generate income. This concept is crucial for the 'fast lane' strategy, as it allows entrepreneurs to earn passive income and achieve financial freedom without being bound by the limitations of time. The goal is to create systems or products that can operate and sell independently, allowing for wealth creation without constant active participation.

💡Self-Employment

Self-employment refers to the state of working for oneself, typically as the owner and operator of a business. In the video, self-employment is positioned as a key component of the 'fast lane' to wealth, as it offers the potential for unlimited leverage and control over one's work. It contrasts with traditional employment, where an individual's income and growth are often limited by their employer or job role.

💡Problem Solving

Problem solving is the process of identifying, analyzing, and resolving issues or challenges. In the video, problem-solving is portrayed as a critical skill for entrepreneurs, especially those on the 'fast lane' journey. It involves actively addressing the needs, pain points, and service deficiencies of a target market. Successful problem-solving leads to the creation of valuable products or services that fulfill specific needs, which in turn can lead to rapid wealth creation.

💡Kinetic Execution

Kinetic execution, as introduced in the video, is the concept of taking action and starting a project or business before having all the answers or feeling fully prepared. It involves moving forward with a willingness to encounter and solve problems as they arise. This approach encourages entrepreneurs to begin their journey towards success without being held back by the overwhelming desire to have every detail figured out in advance.

Highlights

The critique of young life coaches and the emphasis on experience as essential for effective coaching.

The debunking of the idea of finding a shortcut to success, emphasizing the necessity of hard work.

The three lanes concept: sidewalk, slow lane, and fast lane, each representing different life and business strategies.

The description of 'sidewalkers' who live for immediate pleasures without planning for the future.

The critique of slow laners who sacrifice their present for a potentially better but uncertain future.

The fast lane strategy that advocates for controllable unlimited leverage and rapid wealth creation.

The importance of starting a business based on fulfilling needs rather than the pursuit of money.

The significance of high entry barriers in creating stronger businesses with less competition.

The concept of 'drivers' who have control over their businesses, as opposed to 'passengers' who are dependent on others.

The necessity of scalability in business for reaching a wider audience and creating more wealth.

The idea of detaching a business from one's time, allowing for passive income and greater freedom.

MJ DeMarco's critique of the self-help industry and the prevalence of scams and inauthentic advice.

The concept of 'kinetic execution,' which encourages taking action before being fully prepared and solving problems along the way.

The advice that entrepreneurs should read books and consume content that directly addresses their current challenges.

The emphasis on action over preparation, advocating for entrepreneurs to start and solve problems as they arise.

The idea that success comes from tackling one problem at a time, rather than waiting for all the answers.

Transcripts

- [MJ] My favourite is the 19-year-old life coach.

- [Brandon] Classic MJ, classic.

- [MJ] You're 19 years old.

How are you a life coach?

You haven't endured any life.

- [Brandon] Yeah.

- [MJ] You're having problems finding success because,

not you, I'm just saying to the person out there struggling,

because you're on an everlasting search for a shortcut.

That does not exist.

If you just do the fucking work, you will succeed.

- [Brandon] Most of what you've been told

about making is BS.

Compound interest with index funds.

Max out your 401k.

Save 10% of what you earn.

For me this book put a lot of what I've already known

into question, such as The Richest Man In Babylon,

Unshakable by Tony Robbins

and even some aspects of Rich Dad Poor Dad

by Robert Kiyosaki.

Watch the rest of the video to find out

how you can take the fast lane to wealth

and no this is far from a get-rich-quick scheme.

So there are three lanes.

The sidewalk, the slow lane and the fast lane.

The sidewalk.

Sidewalkers pursue pleasures today

at the expense of a more secure tomorrow.

Side walkers are always one step away from broke.

He never knows if he'll be able to pay the rent each month.

Meanwhile he chokes down a case of beer

to temporarily suspend his life problems.

He thinks time is abundant

and he can spend money like there's no tomorrow.

He graduated from school and justifies that

that's all the education he needs to get by.

He takes whatever job he can that pays the most.

May as well live life whilst he can.

You know you're a side walker if you change jobs frequently,

haven't learned much since graduating from school,

have poor credit, barely any savings

and put faith into politicians and government

to fix a system.

An estimated 60% of adults live their lives on the sidewalk.

Right, so the sidewalk doesn't sound so attractive.

Why don't we move on to the slow lane.

Slappy the slow laner sacrifices today

in the hopes of a brighter and freer tomorrow.

In MJ's own words, "Your glorious tomorrow might arrive

"when you're 73 years old and soaked in urine

"and strapped to a stinking bed

"because you've lost your mind to Alzheimers."

Slow laners also sacrificed their time for money.

This is why the typical narrative of becoming a doctor,

maxing out your 401k

and investing in mutual funds for 40 odd years

puts you in the slow lane.

You can get to wealth but it's very slow

and you don't have time basically.

Okay so what on earth is the fast lane.

Well in MJ's own words,

"The fast lane is a business and lifestyle strategy

"characterised by controllable unlimited leverage,

"hence creating an optimal environment

"for rapid wealth creation and extraordinary lifestyles".

The following four elements further describe the fastlane.

So first of all,

let's clarify controllable unlimited leverage.

In the slow lane there are uncontrollable variables.

You have much less control over your time expenditure

and income level whereas a fast lane

gives you maximum control and leverage

over time, money and other stuff,

like being able to work

from anywhere in the world for example.

The second business.

Like a job is to the slow lane,

self-employment and a business is the fast lane.

Then we've got lifestyle.

The fast lane is a lifestyle choice.

It is not succumbing to the typical narrative

as a means to just get by in life.

And number four is rapid wealth creation.

The fast lane is about creating crap tonnes of wealth quickly

and beyond the confines of the middle-class.

Now I interviewed MJ DeMarco, the author of this book

and believe me he doesn't mean

to be bashing on the nine-to-fivers

or anything of that nature.

The fast lane is really built for the people

who want to create massive wealth quickly

and not just enjoy it

when they're like 73 years old in retirement.

This is about building a big-ass business,

tanking it out for five years

and then selling it off for millions of dollars.

So yes, nine-to-fivers are important but this fast lane,

this is for the ones that want to really become rich, okay?

So there is a five commandments

of building a fast lane business.

These are perhaps some of the most important principles

that I took away from the book.

The first is the commandment of need.

This is a reason 95% of businesses fail within five years.

MJ says never start a business just to make money.

Stop chasing money and start chasing needs.

Stop thinking about your business

in terms of your selfish desires, whether it's money,

dreams or that do what you love mentality.

Instead chase needs, problems, pain points,

service deficiencies and emotions.

You know you're not satisfying the commandment of need

if you're the guy that asks,

"How can I make passive income?"

or "What's a good product to sell on eBay?"

MJ emphasises that the masturbatory,

"do what you love and the money will follow" advice is BS.

For "do what you love" to work you need two things.

Number one you'll love must solve a need

and two, you must be exceptional at it.

The second commandment, the commandment of entry.

Higher entry barriers equate to stronger more powerful roads

with less competition and less need for being awesome.

Let's take a helicopter tourist service for instance.

It takes a fully qualified helicopter pilot,

the money required to buy the helicopter

and a bunch of other boring paperwork

to get this business up and running

but once it is, you're off.

Compare that to the tens of thousands of newbies

sitting on their couch at home

who sign up to a 200 dollar programme

that's offered to 10,000 other people

who end up fighting to sell the same crap.

In MJ's own words once again,

"The world is littered with so-called businesses

"that have no entry barriers and that is why they suck

"and the people who follow them aren't rich.

Very polite in there MJ, thank you.

Commandment number three, control.

Drivers control everything in their business.

Drivers sell stock, they don't buy it.

Drivers accept rents and royalties.

They don't pay rents and royalties.

Drivers offer affiliate programmes, they don't join them.

And this one surprised me,

drivers offer drop shipping, they don't use drop shipping.

If you don't know, dropship is basically ship

cheap stuff from China and sold to buyers in the US

to make big juicy profits

and they do it from their laptops.

Now MJ isn't saying you can't make big money

as a drop shipper but you are what he calls a hitchhiker

because you are still giving up a large portion of control

by relying on an array of other companies.

Commandment four, scale.

The guy who runs a local restaurant isn't able to scale

because his customers are confined

to a single geographical location.

A restaurant can also serve a limited amount of food

and customers in one day whereas an online business

in which you sell information products

gives you the ability to sell unlimited copies

and at a massive scale.

There's no shortage of customers

because everyone is and can buy your stuff online,

even while you sleep.

The commandment of time.

You must attach your business from your time.

One hour online fitness coaching sessions

is not detaching a business from your time

but creating a video course would be

because you can record it and once it's up its up forever.

You can sell it over and over again

without you having to be there.

So these were my favourite ideas

from The Millionaire Fastlane by MJ DeMarco.

If you made it this far I'd like to thank you

by sharing some snippets from my interview with MJ himself.

Super valuable.

Also drop a comment below to let me know

what your biggest struggle is when it comes to reading.

I'm really keen to hear and help you out.

Cheers.

So why is it that you seem to be

the only guy that I've found who's achieved massive success.

You're one of the very few people

that puts real raw authentic advice on the table

and then we've got all these other guys

that are selling their, I don't know, little courses

that amount to nothing.

You know the type of people I mean,

who say invest in this programme,

invest in this seminar and you're gonna get rich.

Why is it that you've been the guy that's really took off

in terms of giving raw authentic advice?

I'm just wondering why it's you?

- [MJ] Well, first of all I think it's a racket out there.

I actually don't like this industry

because there's so many scammers, there's so many hucksters

that are selling selling shit that don't work.

My favourite is the 19-year-old life coach.

- [Brandon] Classic MJ, classic.

- [MJ] You're 19 years old.

How are you a life coach?

You haven't endured any life.

- [Brandon] Yeah.

- [MJ] It's like the old envelope stuffing scam.

If you send me a dollar I'll tell you how to get rich

and then you send the dollar and they say,

tell other people to send you a dollar

and you can tell them how to get rich.

Here's a make money seminar.

It's 1,000 dollar seminar.

Make money, I'll tell you how to make money.

You get into the room, the guy says,

"Well, have a seminar.

"Charge 1,000 dollars, that's how you make money.

"Thank you for coming."

So it's like this circle-jerk

and it's kind of disheartening that

in my eye, I'm trying to be authentic

and telling people how it is and it's brash.

It's more logical, it's not emotional.

It's like truth, hard truth.

It's tough love, people don't want to hear it

but unfortunately that kind of stuff

also doesn't sell very well.

So that's the kind of you know position I'm in.

Everyone's looking for the shortcut.

There is no fucking shortcut.

You're having problems finding success because, not you,

I'm just saying to the person out there that is struggling

because you're on an everlasting search

for a shortcut that does not exist.

If you just do the fucking work, you will succeed.

Quit looking for the diet pills,

quit looking for the girdles,

quit looking for this,

do the fucking work.

Go to the gym four or five times a day.

Eat right.

20 out of 21 meals every week or whatever,

how many there are.

If you do the necessary work, it's easy.

The difficulty is that you're not finding the shortcut

so you keep looking, you keep trying,

you do this you do that you do that.

Stop with the fucking shortcuts and do the necessary work.

Commit, be disciplined and do it.

- [Brandon] Sure thing.

Okay and so my question is does reading books count as work?

- [MJ] I believe that definitely it's good

to be reading books.

But what happens is a lot of entrepreneurs

are doing a what I call action faking.

Entrepreneurial masturbation.

They think they're doing work because they're reading books

and in the end they're not doing nothing,

they're not acting.

Laying in your bed and reading a book

and if you strip it down, excuse me,

it's not work, it's not taking action.

I like to say I'm always asked on podcasts

what books should entrepreneurs read?

And I say the best book an entrepreneur should read

is the book that solves the problem

that is sitting in front of them right now.

So if you're starting a business

and you're having problems creating a brand,

well you should read a damn branding book.

If you're trying to grow your business

and you're not sure how to hire and deal with employees,

well you should buy a book on employees

and managing employees.

If you need to develop a web app

and you have this great idea

and you know that the tools are out there

to learn how to programme a web app,

that's the book or the YouTube podcast

you should be looking at.

So there is never all the answers.

When you want to start a business

and you want to become an entrepreneur,

if you're sitting around saying,

well I need all the answers first,

you will never be an entrepreneur.

You have to act.

Immediately act and what happens is

you're gonna encounter problems along the way,

every single day, every week

and that's when you have to search out these solutions.

So you're basically becoming this huge

longtime problem solver.

So the books you want to be reading

or the podcasts you want to be listening to

or the YouTube videos you're watching,

you want those to solve the problems that sit before you.

I call this kinetic execution

that's in my next book Unscripted,

and that is starting before you're ready.

That is acting and letting the problems fall before you

and then solving each one each step of the way.

So after you have solved,

I don't know, 60-70 problems

you actually have a solution

that you can sell to the world

or a product or whatever it is.

As opposed to sitting around

and waiting for all the right answers.

I have to read this book, I have to do this,

I have to do this and this

and then in fact you never do anything

because it is so overwhelming.

If you look at all the things,

I mean if I had a look back at what I had to accomplish

in order to get where I was,

if I looked at all that in aggregate,

looking at the mountaintop,

I would never have gotten started

because it was so overwhelming.

But I just took one step at a time

so that's how you want to do that.

Kinetic execution is one step at a time,

one problem at a time.