WEBVTT 1 00:00:00.000 --> 00:00:02.160 If you believe the shit that you're reading, 2 00:00:02.160 --> 00:00:03.600 if you're listening to poor people 3 00:00:03.600 --> 00:00:05.400 and advice to it on how to be rich, 4 00:00:05.400 --> 00:00:06.440 you will stay poor. 5 00:00:06.440 --> 00:00:07.480 They have no idea. 6 00:00:07.480 --> 00:00:08.840 You don't need money to make money. 7 00:00:09.920 --> 00:00:12.200 The wealthiest people in the world see business as a game. 8 00:00:12.200 --> 00:00:13.760 This podcast, the game, is my attempt 9 00:00:13.760 --> 00:00:15.120 at documenting the lessons I've learned 10 00:00:15.120 --> 00:00:16.680 on my way to building acquisition.com 11 00:00:16.680 --> 00:00:18.280 into a billion dollar portfolio. 12 00:00:18.280 --> 00:00:20.080 My hope is that you use the lessons to grow your business 13 00:00:20.080 --> 00:00:20.920 and maybe someday soon, 14 00:00:20.920 --> 00:00:22.880 partner with us to get $200 million in beyond. 15 00:00:22.880 --> 00:00:24.120 I hope you share and enjoy. 16 00:00:25.560 --> 00:00:27.360 I wanna break the myth that you need to go make 17 00:00:27.360 --> 00:00:30.000 a million dollars that you need money to make money. 18 00:00:30.000 --> 00:00:32.960 All right, and so I'm gonna show you 10 different ways 19 00:00:32.960 --> 00:00:34.480 that you can make a million dollars 20 00:00:34.480 --> 00:00:38.360 and you can apply this to $1,000, $100, $100 million. 21 00:00:38.360 --> 00:00:40.560 The concept is what I'm trying to translate to you 22 00:00:40.560 --> 00:00:41.960 because you can do any of these things 23 00:00:41.960 --> 00:00:43.520 and add or detract the amount of zeros 24 00:00:43.520 --> 00:00:44.920 that you feel comfortable with. 25 00:00:44.920 --> 00:00:46.420 So if you wanna make less money, 26 00:00:46.420 --> 00:00:49.840 by all means, take more zeros off, all right? 27 00:00:49.840 --> 00:00:52.240 Now, the first thing that you can do 28 00:00:52.240 --> 00:00:54.000 if you wanna make a million dollars 29 00:00:54.000 --> 00:00:57.160 is that you can sell something for a million dollars. 30 00:00:57.160 --> 00:01:00.080 And as crazy as what I'm saying sounds, 31 00:01:00.080 --> 00:01:02.880 you absolutely can sell something for a million dollars. 32 00:01:02.880 --> 00:01:04.640 If you go to an e-commerce store 33 00:01:04.640 --> 00:01:06.680 and they're doing $100 million a year 34 00:01:06.680 --> 00:01:09.360 and you say, hey, if I can increase your conversion 35 00:01:09.360 --> 00:01:11.720 across your entire site, rewrite your emails, 36 00:01:11.720 --> 00:01:14.000 do you do your landing pages, et cetera, 37 00:01:14.000 --> 00:01:17.080 and I can get you a 5% lift, site wide, 38 00:01:17.080 --> 00:01:18.760 can I get 1% of that? 39 00:01:18.760 --> 00:01:21.040 So you make them an extra 5 million a year 40 00:01:21.040 --> 00:01:22.200 and you get one. 41 00:01:22.200 --> 00:01:23.440 Do you think you can do that? 42 00:01:23.440 --> 00:01:25.400 Yes, why are you gonna be able to do so much? 43 00:01:25.400 --> 00:01:28.440 Not because of you, but because of who they are, all right? 44 00:01:28.440 --> 00:01:30.440 So you make a million dollars 45 00:01:30.440 --> 00:01:33.640 by selling someone else five to 10 million dollars of value. 46 00:01:33.640 --> 00:01:36.800 That's how you make a million dollars, like real talk. 47 00:01:36.800 --> 00:01:37.800 The second way, and you're like, 48 00:01:37.800 --> 00:01:39.720 I don't know how to do that, that's fine. 49 00:01:39.720 --> 00:01:40.960 But except that you don't how to do that, 50 00:01:40.960 --> 00:01:42.400 and then say, I wanna learn how to do that 51 00:01:42.400 --> 00:01:43.640 and then go get the skill of doing that 52 00:01:43.640 --> 00:01:44.760 and then you can go sell it. 53 00:01:44.760 --> 00:01:46.840 But you can't say that you don't have the money 54 00:01:46.840 --> 00:01:48.000 and that's why you can't make money. 55 00:01:48.000 --> 00:01:49.240 That's why I'm making this video. 56 00:01:49.240 --> 00:01:52.440 The second one is that you can borrow a million dollars 57 00:01:52.440 --> 00:01:55.440 and then buy something and have someone else pay it back. 58 00:01:55.440 --> 00:01:57.440 It's fundamentally what real estate is. 59 00:01:57.440 --> 00:01:59.760 You borrow money to buy an asset, 60 00:01:59.760 --> 00:02:01.520 you put tenants into the asset, 61 00:02:01.520 --> 00:02:04.800 they pay off the money that you never had. 62 00:02:04.800 --> 00:02:07.520 That is what real estate is, right? 63 00:02:07.520 --> 00:02:09.480 And if you can get the asset for free, 64 00:02:09.480 --> 00:02:11.960 which is gonna be the next bullet I'm gonna make, 65 00:02:11.960 --> 00:02:15.720 you can get a contract on something for less than its worth 66 00:02:15.720 --> 00:02:18.240 and then you get the bank to find it's the whole thing. 67 00:02:18.240 --> 00:02:20.800 So if you're like, but I don't know if they'll do that, 68 00:02:20.800 --> 00:02:22.840 they will, if it's priced low enough. 69 00:02:22.840 --> 00:02:26.000 So if you have to go talk to a thousand building owners, 70 00:02:26.000 --> 00:02:27.880 then you will probably get one of them 71 00:02:27.880 --> 00:02:29.240 who's willing to depart for their thing 72 00:02:29.240 --> 00:02:30.720 for significantly less than its worth 73 00:02:30.720 --> 00:02:32.400 and a bank will loan the difference 74 00:02:32.400 --> 00:02:35.080 and you don't have to put any money down out of pocket. 75 00:02:35.080 --> 00:02:36.560 They'll also be willing to sell or find 76 00:02:36.560 --> 00:02:37.960 it's a portion of their house to you. 77 00:02:37.960 --> 00:02:40.200 So if you get a house for, let's say, 78 00:02:40.200 --> 00:02:43.120 let's say you have a hundred thousand dollar house, okay? 79 00:02:43.120 --> 00:02:46.760 And you get it under contract for $80,000 from them 80 00:02:46.760 --> 00:02:49.400 saying that they're willing to give you the house for $80,000. 81 00:02:49.400 --> 00:02:53.080 And then you say, cool, I can give you $70,000. 82 00:02:53.080 --> 00:02:54.840 And then you got to sell or finance me the 10 83 00:02:54.840 --> 00:02:57.360 over the next five years and they say, sure. 84 00:02:57.360 --> 00:02:59.520 And now all of a sudden you just got to get the bank 85 00:02:59.520 --> 00:03:01.520 and the bank finance is 80%. 86 00:03:01.520 --> 00:03:02.920 And now you actually just made the difference 87 00:03:02.920 --> 00:03:04.960 if you wanted to and you can take that number 88 00:03:04.960 --> 00:03:06.480 and you can do it at $100,000,000, 89 00:03:06.480 --> 00:03:08.360 you can do it at any of these levels. 90 00:03:08.360 --> 00:03:10.120 That's number three is you refinance something 91 00:03:10.120 --> 00:03:11.320 for more than you bought it. 92 00:03:11.320 --> 00:03:13.000 Number four is that you get a contract 93 00:03:13.000 --> 00:03:14.160 for something for less than its worth 94 00:03:14.160 --> 00:03:15.640 and then you sell that contract. 95 00:03:15.640 --> 00:03:18.240 And so for example, in the refinancing thing 96 00:03:18.240 --> 00:03:19.160 that I just went over, 97 00:03:19.160 --> 00:03:21.520 if I got that contract for eight, 98 00:03:21.520 --> 00:03:23.200 I could not even go through with the purchase 99 00:03:23.200 --> 00:03:26.440 and just sell the contract to somebody else for nine. 100 00:03:26.440 --> 00:03:29.840 And I make the difference between those two prices. 101 00:03:29.840 --> 00:03:32.360 Again, add as many zeros or as few zeros 102 00:03:32.360 --> 00:03:34.000 as you want to this example. 103 00:03:34.000 --> 00:03:35.720 But if you understand how it works, 104 00:03:35.720 --> 00:03:38.520 then you'll stop asking how to make six figures a year 105 00:03:38.520 --> 00:03:40.840 because fundamentally the fact that you're attaching it 106 00:03:40.840 --> 00:03:42.280 to a year means you're thinking 107 00:03:42.280 --> 00:03:44.640 that you have to trade time for the money. 108 00:03:44.640 --> 00:03:46.040 And that's how poor people think. 109 00:03:46.040 --> 00:03:47.480 That's why most people stay poor 110 00:03:47.480 --> 00:03:49.040 because they're trying to think about what they have to do 111 00:03:49.040 --> 00:03:50.920 over a year to make $100,000 112 00:03:50.920 --> 00:03:53.000 because they're not thinking in terms of value. 113 00:03:53.000 --> 00:03:54.800 They're thinking about themselves. 114 00:03:54.800 --> 00:03:56.160 So if you want to be selfless, 115 00:03:56.160 --> 00:03:57.360 you have to think about the value 116 00:03:57.360 --> 00:03:58.400 of providing somebody else, 117 00:03:58.400 --> 00:03:59.600 not about the money you're going to get 118 00:03:59.600 --> 00:04:01.320 and their time that you're going to spend. 119 00:04:01.320 --> 00:04:04.040 So if you can make somebody like the CRO example, 120 00:04:04.040 --> 00:04:05.800 conversion rate optimization example at the beginning, 121 00:04:05.800 --> 00:04:08.680 if I can make someone $5 million and it takes me 10 minutes, 122 00:04:08.680 --> 00:04:10.400 I can charge a million bucks for it. 123 00:04:10.400 --> 00:04:13.000 Why would I ask how do I make a million dollars a year? 124 00:04:13.000 --> 00:04:15.800 I would try to do a hundred of those every year, right? 125 00:04:15.800 --> 00:04:16.640 Doesn't matter. 126 00:04:16.680 --> 00:04:18.880 How many of those would I do as many as I possibly get? 127 00:04:18.880 --> 00:04:19.960 People think differently. 128 00:04:19.960 --> 00:04:23.040 If you want to have more than you have right now. 129 00:04:23.040 --> 00:04:25.320 Now, the next one you can do is that you can sell 130 00:04:25.320 --> 00:04:27.280 something that's really expensive and get a commission. 131 00:04:27.280 --> 00:04:28.440 Sounds really simple. 132 00:04:28.440 --> 00:04:32.000 If you sell a skyscraper that's a $100 million skyscraper, 133 00:04:32.000 --> 00:04:34.320 you'll get 3, 4% of that deal. 134 00:04:34.320 --> 00:04:37.360 You'll get $34 million on a single transaction. 135 00:04:37.360 --> 00:04:39.000 If you sell a $20 million residence 136 00:04:39.000 --> 00:04:40.080 and you might be like, that's crazy. 137 00:04:40.080 --> 00:04:41.360 They exist, look on Zilla. 138 00:04:41.360 --> 00:04:43.600 It's fine, believe me, they exist. 139 00:04:43.600 --> 00:04:47.600 The realtor gets 5-ish percent of the transaction. 140 00:04:47.600 --> 00:04:50.120 That's a million dollars and they never own the asset. 141 00:04:50.120 --> 00:04:52.160 And so you absolutely can make a million dollars 142 00:04:52.160 --> 00:04:53.960 with no money down if you have skills. 143 00:04:53.960 --> 00:04:56.160 That is the point, is the point I'm making. 144 00:04:56.160 --> 00:04:59.040 The next one is that you can find somebody who has an audience 145 00:04:59.040 --> 00:05:02.320 and buy whatever they're about to launch early 146 00:05:02.320 --> 00:05:03.240 and then sell it later. 147 00:05:03.240 --> 00:05:05.240 Now, that one does take some money, it's less, 148 00:05:05.240 --> 00:05:08.480 but the value of the thing later, that's how it balloons. 149 00:05:08.480 --> 00:05:10.480 This is how the entire NFT thing worked, 150 00:05:10.480 --> 00:05:13.840 is that you have tremendous demand for a scarce resource. 151 00:05:13.840 --> 00:05:16.480 They have the scarce resource and then it balloons the price 152 00:05:16.480 --> 00:05:18.080 because there's so many people bidding against each other 153 00:05:18.080 --> 00:05:19.280 to get it, right? 154 00:05:19.280 --> 00:05:21.000 And so getting it early on those types of things, 155 00:05:21.000 --> 00:05:23.280 which is why if you buy into something pre-IPO, 156 00:05:23.280 --> 00:05:25.480 it tends to almost always go up simply by the fact 157 00:05:25.480 --> 00:05:28.200 that there's way more eyeballs that are competing for it. 158 00:05:28.200 --> 00:05:31.280 The next one is selling units of stuff, all right? 159 00:05:31.280 --> 00:05:32.400 If you wanted to make a million dollars, 160 00:05:32.400 --> 00:05:33.480 you got 52 weeks in a year, 161 00:05:33.480 --> 00:05:36.080 you got to sell something that's about $20,000 a week 162 00:05:36.080 --> 00:05:37.240 is what you got to make, right? 163 00:05:37.240 --> 00:05:38.080 Over a year. 164 00:05:38.080 --> 00:05:39.080 So there's a million bucks. 165 00:05:39.360 --> 00:05:42.200 Times 52 is technically a million, 40,000 166 00:05:42.200 --> 00:05:44.920 for the internet trolls, but we're going to go with that. 167 00:05:44.920 --> 00:05:46.560 So if you got to make 20 grand a week, 168 00:05:46.560 --> 00:05:48.320 how many different ways can you make 20 grand in a week? 169 00:05:48.320 --> 00:05:51.520 Well, you can sell 20 people a $1,000 thing. 170 00:05:51.520 --> 00:05:54.520 You could sell two people a $10,000 thing. 171 00:05:54.520 --> 00:05:56.800 You could sell one person every four weeks 172 00:05:56.800 --> 00:05:58.840 and 80,000 other thing, right? 173 00:05:58.840 --> 00:06:02.800 Or you could sell on a weekly basis 20 people 174 00:06:02.800 --> 00:06:04.960 who have a $1,000 lifetime value. 175 00:06:04.960 --> 00:06:07.880 And so for example, if you have $100 a month membership 176 00:06:07.880 --> 00:06:10.640 and the person stays for 10 months on average, 177 00:06:10.640 --> 00:06:12.760 then if you sell 20 of those every week, 178 00:06:12.760 --> 00:06:14.200 over time, those will stack up 179 00:06:14.200 --> 00:06:16.480 and then you will cap $1,000,000. 180 00:06:16.480 --> 00:06:18.480 And the only way to grow from that new million 181 00:06:18.480 --> 00:06:20.360 that's your new cap or threshold 182 00:06:20.360 --> 00:06:22.120 is either you got to sell more units 183 00:06:22.120 --> 00:06:22.960 or you got to make the thing 184 00:06:22.960 --> 00:06:24.120 that you're selling worth more. 185 00:06:24.120 --> 00:06:24.960 That's it. 186 00:06:24.960 --> 00:06:25.960 And so right now, for example, 187 00:06:25.960 --> 00:06:27.720 if you've been capped at your current revenue level 188 00:06:27.720 --> 00:06:28.960 or your current income level, 189 00:06:28.960 --> 00:06:30.840 this is for small business owners or listening, 190 00:06:30.840 --> 00:06:33.600 you either got to sell more units in the same period of time 191 00:06:33.600 --> 00:06:34.880 or you got to make the units worth more. 192 00:06:34.880 --> 00:06:35.720 That's it. 193 00:06:35.720 --> 00:06:37.240 If you've been stocked, there's the only two thing, 194 00:06:37.280 --> 00:06:38.960 there was the only two levers you got. 195 00:06:38.960 --> 00:06:41.360 So you just got to figure out which one to diss for you. 196 00:06:41.360 --> 00:06:42.480 The next one is that you can get people 197 00:06:42.480 --> 00:06:45.640 to give you their businesses for no money down. 198 00:06:45.640 --> 00:06:46.480 All right. 199 00:06:46.480 --> 00:06:48.080 And so good friend of mine actually did this 200 00:06:48.080 --> 00:06:50.840 and he combined four different information businesses 201 00:06:50.840 --> 00:06:51.920 into one business. 202 00:06:51.920 --> 00:06:53.080 And they were all small businesses. 203 00:06:53.080 --> 00:06:54.880 They were all doing about a million a year. 204 00:06:54.880 --> 00:06:55.840 I get small as relative. 205 00:06:55.840 --> 00:06:58.040 But you know, so he combined them all 206 00:06:58.040 --> 00:06:59.520 to be a $4 million top line, 207 00:06:59.520 --> 00:07:01.440 a million and a half bottom line business 208 00:07:01.440 --> 00:07:02.720 for no money out of pocket. 209 00:07:02.720 --> 00:07:03.720 He literally said, 210 00:07:03.720 --> 00:07:05.320 hey, I know you don't want to do this business anymore. 211 00:07:05.320 --> 00:07:06.760 Just give it to me and I'll pay you 212 00:07:06.760 --> 00:07:08.280 the income that you were going to make to this business 213 00:07:08.280 --> 00:07:09.320 for the next two years. 214 00:07:09.320 --> 00:07:10.160 That's what he said. 215 00:07:10.160 --> 00:07:11.120 And they said, sure. 216 00:07:11.120 --> 00:07:12.880 And so he combined all those businesses together 217 00:07:12.880 --> 00:07:14.520 and then overnight he owned an asset 218 00:07:14.520 --> 00:07:16.720 that was doing a million and a half a year in profit 219 00:07:16.720 --> 00:07:17.880 and four million in top line 220 00:07:17.880 --> 00:07:19.120 and it cost him nothing to do it. 221 00:07:19.120 --> 00:07:20.680 So not only did it make a million dollars, 222 00:07:20.680 --> 00:07:22.240 he made something that made him a million and a half dollars 223 00:07:22.240 --> 00:07:23.800 a year per year. 224 00:07:23.800 --> 00:07:25.280 Now he has to pay the debt service back, 225 00:07:25.280 --> 00:07:28.960 which is the loan that those people said that he would pay them 226 00:07:28.960 --> 00:07:31.320 over time back from the profit from the business, 227 00:07:31.320 --> 00:07:33.040 but he owns the asset now. 228 00:07:33.040 --> 00:07:34.640 And so if he turned around and went to say, 229 00:07:34.640 --> 00:07:35.520 hey, I'm going to go sell this. 230 00:07:35.520 --> 00:07:37.160 He could probably sell the thing for five million dollars, 231 00:07:37.160 --> 00:07:38.440 put together. 232 00:07:38.440 --> 00:07:41.520 And so he got no money down and he said he would sell it 233 00:07:41.520 --> 00:07:43.360 and he could sell it for five million bucks. 234 00:07:43.360 --> 00:07:45.480 And let's say that if the seller financing all those 235 00:07:45.480 --> 00:07:47.920 was two times earnings over time 236 00:07:47.920 --> 00:07:50.480 because at small numbers, the deals aren't very good 237 00:07:50.480 --> 00:07:52.040 for sellers, right? 238 00:07:52.040 --> 00:07:54.760 It might cost him two million bucks 239 00:07:54.760 --> 00:07:56.400 over the next however long 240 00:07:56.400 --> 00:07:58.560 and he can flip the whole thing for five 241 00:07:58.560 --> 00:08:00.840 and he makes the three and he could still just choose 242 00:08:00.840 --> 00:08:02.040 to slowly pay him off over time 243 00:08:02.040 --> 00:08:03.800 where he could probably have an early sale bonus 244 00:08:03.800 --> 00:08:05.120 and pay even less. 245 00:08:05.120 --> 00:08:07.320 Like he made more than a million dollars 246 00:08:07.320 --> 00:08:08.520 with no money on a pocket. 247 00:08:08.520 --> 00:08:10.080 And he'd be like, I don't know how to do that. 248 00:08:10.080 --> 00:08:11.400 The point is not to teach you how to do it. 249 00:08:11.400 --> 00:08:12.240 The point is to get you to recognize 250 00:08:12.240 --> 00:08:13.400 that you don't know how to do it. 251 00:08:13.400 --> 00:08:15.760 And understand that the people who are making money 252 00:08:15.760 --> 00:08:17.400 don't constrain themselves by time. 253 00:08:17.400 --> 00:08:18.520 They're not thinking how do I make 254 00:08:18.520 --> 00:08:20.680 X dollars per hour, X dollars per year. 255 00:08:20.680 --> 00:08:22.480 They're thinking how do I provide the most value 256 00:08:22.480 --> 00:08:23.880 to somebody so they'll give me a percentage 257 00:08:23.880 --> 00:08:25.720 of the value I provide? 258 00:08:25.720 --> 00:08:27.880 And so the reason a good buddy of mine 259 00:08:27.880 --> 00:08:29.720 was able to make so much money 260 00:08:29.720 --> 00:08:31.720 selling and flipping commercial real estate 261 00:08:31.720 --> 00:08:33.920 was that he realized that if he bought 262 00:08:33.920 --> 00:08:35.640 for very little money down, 263 00:08:35.640 --> 00:08:37.760 that he could basically take a hundred percent 264 00:08:37.760 --> 00:08:39.440 of the cash that someone put as a down payment 265 00:08:39.440 --> 00:08:40.480 for a commercial building 266 00:08:40.480 --> 00:08:41.880 and make it into a write-off. 267 00:08:41.880 --> 00:08:44.960 Which means that if you made a hundred thousand dollars, 268 00:08:44.960 --> 00:08:46.760 let's assume you're in the highest tax bracket, 269 00:08:46.760 --> 00:08:47.960 a million dollars a year 270 00:08:47.960 --> 00:08:49.960 and you had four hundred thousand dollars in taxes, 271 00:08:49.960 --> 00:08:51.280 you could take the four hundred thousand dollars 272 00:08:51.280 --> 00:08:52.880 that you were going to give to the government 273 00:08:52.880 --> 00:08:54.320 and just give it to him 274 00:08:54.320 --> 00:08:56.080 and then he put it into a building. 275 00:08:56.080 --> 00:08:57.240 But because of the amount of leverage 276 00:08:57.240 --> 00:08:58.480 he was able to get in his deals 277 00:08:58.480 --> 00:09:00.800 because he would get them to sell our finance 278 00:09:00.800 --> 00:09:01.960 half of the down payment. 279 00:09:01.960 --> 00:09:04.520 So you only need to put 10% down on these buildings. 280 00:09:04.520 --> 00:09:05.840 So when you put 10% down on the building, 281 00:09:05.840 --> 00:09:08.120 he could take that appreciation on the whole building 282 00:09:08.120 --> 00:09:10.400 and hand it to the guys who gave him money. 283 00:09:10.400 --> 00:09:11.840 And so they got free buildings. 284 00:09:11.840 --> 00:09:15.480 They didn't even care about the return on the building 285 00:09:15.480 --> 00:09:18.000 because it was bought with free money. 286 00:09:18.000 --> 00:09:19.720 And so he figured that out. 287 00:09:19.720 --> 00:09:23.240 And so he was able to get these big buildings under contract 288 00:09:23.240 --> 00:09:25.480 under the terms that he knew his investors would like 289 00:09:25.480 --> 00:09:28.280 because it basically exited them from the tax system 290 00:09:28.280 --> 00:09:30.040 and then he was able to make the difference 291 00:09:30.080 --> 00:09:31.640 on every one of those deals. 292 00:09:31.640 --> 00:09:34.200 And so it was because he understood the value 293 00:09:34.200 --> 00:09:35.720 that he was providing to the building owners 294 00:09:35.720 --> 00:09:37.520 who had owned the buildings for many, many years 295 00:09:37.520 --> 00:09:38.920 and wanted to get cash. 296 00:09:38.920 --> 00:09:40.200 He would lease it back to them 297 00:09:40.200 --> 00:09:41.800 after he bought it from them 298 00:09:41.800 --> 00:09:43.200 and then he would flip it to an investor 299 00:09:43.200 --> 00:09:44.880 who wanted to get a tax right off. 300 00:09:44.880 --> 00:09:46.760 So he understood the needs of multiple parties 301 00:09:46.760 --> 00:09:48.200 and was able to make the difference. 302 00:09:48.200 --> 00:09:49.280 And if he does one of those deals 303 00:09:49.280 --> 00:09:50.560 and he makes four million dollars, 304 00:09:50.560 --> 00:09:51.880 how does he make a hundred thousand dollars a year? 305 00:09:51.880 --> 00:09:52.720 I have no idea. 306 00:09:52.720 --> 00:09:53.760 He probably wouldn't answer the question 307 00:09:53.760 --> 00:09:55.840 because he's like, why would I bother? 308 00:09:55.840 --> 00:09:56.880 And so that's the things people ask 309 00:09:56.880 --> 00:09:57.720 in the real question. 310 00:09:57.720 --> 00:09:59.560 And so you always answer the questions you ask. 311 00:09:59.600 --> 00:10:00.400 And so the point of this is to get you 312 00:10:00.400 --> 00:10:02.240 asked different questions. 313 00:10:02.240 --> 00:10:03.800 I'll show you the last one right now, 314 00:10:03.800 --> 00:10:05.280 which is that you might be like, okay, well, 315 00:10:05.280 --> 00:10:06.800 I don't have any money, et cetera. 316 00:10:06.800 --> 00:10:07.920 And I give you a whole bunch of examples 317 00:10:07.920 --> 00:10:08.760 that don't require any money. 318 00:10:08.760 --> 00:10:09.600 But here's another one. 319 00:10:09.600 --> 00:10:11.480 Is that you can go find stuff that you really like 320 00:10:11.480 --> 00:10:12.880 and go promote that. 321 00:10:12.880 --> 00:10:14.880 So you don't have to go find and make your own products. 322 00:10:14.880 --> 00:10:16.520 You go find products that you really like 323 00:10:16.520 --> 00:10:17.240 from other companies 324 00:10:17.240 --> 00:10:19.760 and just become affiliates of those products, right? 325 00:10:19.760 --> 00:10:22.040 And the nice thing is that I just recommend you be honest. 326 00:10:22.040 --> 00:10:24.520 Be like, hey, I tried a hundred fucking different soaps. 327 00:10:24.520 --> 00:10:26.720 This is my favorite one and here's why. 328 00:10:26.720 --> 00:10:29.040 People don't want to go through the time 329 00:10:29.040 --> 00:10:32.320 and the money of figuring out which soap is the best 330 00:10:32.320 --> 00:10:33.560 for your audience. 331 00:10:33.560 --> 00:10:35.680 And if you make the rack after you do that, 332 00:10:35.680 --> 00:10:38.120 they're like, oh, well, shoot, he just saved me time. 333 00:10:38.120 --> 00:10:39.400 He provided me value. 334 00:10:39.400 --> 00:10:41.560 And so then I'll go buy from him through his link 335 00:10:41.560 --> 00:10:42.960 or whatever, right? 336 00:10:42.960 --> 00:10:44.960 And so you can affiliate other people's products 337 00:10:44.960 --> 00:10:46.160 and make money in that way 338 00:10:46.160 --> 00:10:48.480 without any money out of pocket. 339 00:10:48.480 --> 00:10:50.520 And then finally, arbitrage in general, 340 00:10:50.520 --> 00:10:52.520 which is a fancy word, but it just means 341 00:10:52.520 --> 00:10:54.680 that you sell the same thing 342 00:10:54.680 --> 00:10:56.400 between two different markets 343 00:10:56.400 --> 00:10:57.880 because they're priced differently. 344 00:10:57.880 --> 00:11:01.760 So the simplest example is if Bitcoin is $19,000 in Japan 345 00:11:01.760 --> 00:11:05.560 on the Japanese market is $19,100 in the US market, 346 00:11:05.560 --> 00:11:08.360 you buy the $19,000 Bitcoin over in Japan 347 00:11:08.360 --> 00:11:11.000 and you sell it in the American market for 19.1 348 00:11:11.000 --> 00:11:12.560 and you make a hundred bucks. 349 00:11:12.560 --> 00:11:14.000 That's all arbitrage is. 350 00:11:14.000 --> 00:11:16.080 And it happens with physical products. 351 00:11:16.080 --> 00:11:18.200 It happens with lending money 352 00:11:18.200 --> 00:11:19.120 between two parties. 353 00:11:19.120 --> 00:11:20.920 If you can get money for 1%, 354 00:11:20.920 --> 00:11:23.280 and you can sell the money for 6%, 355 00:11:23.280 --> 00:11:24.880 you make five is the difference. 356 00:11:24.880 --> 00:11:27.160 And you can put as many zeros as you want on that transaction. 357 00:11:27.160 --> 00:11:28.640 It works the same way. 358 00:11:28.640 --> 00:11:30.920 All of these are different versions of arbitrage, 359 00:11:30.920 --> 00:11:33.280 which is just same thing, two markets, 360 00:11:33.280 --> 00:11:35.120 two different prices, you make the difference. 361 00:11:35.120 --> 00:11:37.360 And so if you're looking for ways to make money, 362 00:11:37.360 --> 00:11:39.440 look for arbitrage opportunities 363 00:11:39.440 --> 00:11:42.240 because that's where you can make tremendous income. 364 00:11:42.240 --> 00:11:44.440 So the next way to make a million dollars 365 00:11:44.440 --> 00:11:47.760 without any money is that you find something 366 00:11:47.760 --> 00:11:49.400 that is undervalued 367 00:11:49.400 --> 00:11:51.760 or that you believe will be undervalued in the future 368 00:11:51.760 --> 00:11:53.920 and then you ask for contract to buy it. 369 00:11:53.920 --> 00:11:56.520 So I was talking to Caleb about this 370 00:11:56.520 --> 00:11:57.760 because he's like, oh, it's kind of like flipping. 371 00:11:57.760 --> 00:12:00.000 I was like, it's not because the difference between flipping 372 00:12:00.000 --> 00:12:01.120 is like you go to the garage sale, 373 00:12:01.120 --> 00:12:02.240 you buy something for a buck 374 00:12:02.240 --> 00:12:04.160 and then you find out that it's worth 30 online 375 00:12:04.160 --> 00:12:06.120 and you make the difference. 376 00:12:06.120 --> 00:12:07.760 The difference here is that when you get an option, 377 00:12:07.760 --> 00:12:08.920 it's like you go into the person 378 00:12:08.920 --> 00:12:10.920 who owns the garage and saying, hey, 379 00:12:10.920 --> 00:12:14.800 I would like the option to buy this thing for a dollar 380 00:12:14.800 --> 00:12:18.000 or rather two dollars at their marketing for a dollar 381 00:12:18.000 --> 00:12:19.840 for the next 30 days. 382 00:12:19.840 --> 00:12:20.680 That's what I would like. 383 00:12:20.680 --> 00:12:23.360 And I will pay you a penny for that option. 384 00:12:23.360 --> 00:12:25.720 And then you sign an agreement and they say, sure, 385 00:12:25.720 --> 00:12:26.800 you have that option. 386 00:12:26.800 --> 00:12:28.920 And then now you take that piece of paper 387 00:12:28.920 --> 00:12:30.440 and the agreement that you can purchase it 388 00:12:30.440 --> 00:12:32.520 at a fixed price over this period of time 389 00:12:32.520 --> 00:12:36.760 and then you say, hey, anybody who's got 30 dollars, 390 00:12:36.760 --> 00:12:37.800 I know you want this thing 391 00:12:37.800 --> 00:12:39.200 because you're willing to pay me 30, 392 00:12:39.200 --> 00:12:40.640 why don't you pay me 24 it 393 00:12:40.640 --> 00:12:42.800 and I'll just give you the rights to buy it. 394 00:12:42.800 --> 00:12:46.240 And then you sell the paper for 20 bucks 395 00:12:46.240 --> 00:12:47.800 and it costs you a penny 396 00:12:47.800 --> 00:12:49.000 and then the person who bought it from you 397 00:12:49.000 --> 00:12:50.800 makes the spread on the 10 because they're happy 398 00:12:50.800 --> 00:12:51.520 because they're gonna get it 399 00:12:51.520 --> 00:12:52.960 for less than they probably would have paid for it. 400 00:12:52.960 --> 00:12:55.120 And you get rewarded for finding something 401 00:12:55.120 --> 00:12:58.280 that is worth more than you got secured the option 402 00:12:58.280 --> 00:13:00.680 to purchase it for it and you made the difference. 403 00:13:00.680 --> 00:13:03.280 And in that instance, you made a lot of the difference, right? 404 00:13:03.280 --> 00:13:05.560 And you're like, how is that possible? 405 00:13:05.560 --> 00:13:08.160 I'm making these to break your beliefs about what is possible 406 00:13:08.160 --> 00:13:10.200 because it is a farce when you think 407 00:13:10.200 --> 00:13:12.040 that you have to have money to make money. 408 00:13:12.040 --> 00:13:14.200 You have to have skills to make money. 409 00:13:14.200 --> 00:13:16.040 If you can find an asset that's undervalued 410 00:13:16.040 --> 00:13:18.040 like a house, like a building, like a WhatsApp, whatever. 411 00:13:18.040 --> 00:13:19.760 And if you're like, well, these aren't all over the place, 412 00:13:19.760 --> 00:13:21.680 duh, that's why it takes skill to do it. 413 00:13:21.680 --> 00:13:22.920 That's why everyone's not a millionaire. 414 00:13:22.920 --> 00:13:23.840 I'm not saying it's easy, 415 00:13:23.840 --> 00:13:26.720 but I'm saying you don't need to have money to make money. 416 00:13:26.720 --> 00:13:28.280 That's what I'm saying here. 417 00:13:28.280 --> 00:13:32.040 And so if you go find a house that's worth $10 million 418 00:13:32.040 --> 00:13:34.440 and you can get it for seven, 419 00:13:34.440 --> 00:13:37.120 you can get the bank to pay you eight for the house 420 00:13:37.120 --> 00:13:39.640 because literally 80% loaned value, right? 421 00:13:39.640 --> 00:13:42.480 And so if you bought it for seven 422 00:13:42.480 --> 00:13:44.320 and the loan will be for eight, 423 00:13:44.320 --> 00:13:46.520 it's like refinancing out the money. 424 00:13:46.520 --> 00:13:50.480 So you make the spread from the bank with no money down. 425 00:13:50.480 --> 00:13:53.480 So many cashmen was able to make his first million dollars 426 00:13:53.480 --> 00:13:55.600 in real estate if you've ever heard his story, 427 00:13:55.600 --> 00:13:57.480 which because this is literally what he did. 428 00:13:57.480 --> 00:13:59.640 He went from broke to a millionaire 429 00:13:59.640 --> 00:14:01.360 on his first transaction. 430 00:14:01.360 --> 00:14:02.960 The reason I'm telling you this is because 431 00:14:02.960 --> 00:14:05.040 if you believe the shit that you're reading, 432 00:14:05.040 --> 00:14:06.480 if you're listening to poor people 433 00:14:06.480 --> 00:14:09.320 and advice to it on how to be rich, you will stay poor. 434 00:14:09.320 --> 00:14:10.360 They have no idea. 435 00:14:10.360 --> 00:14:12.000 You don't need money to make money. 436 00:14:12.000 --> 00:14:14.720 We'll go guys, you guys already know 437 00:14:14.720 --> 00:14:16.640 that I don't run any ads on this 438 00:14:16.640 --> 00:14:17.960 and I don't sell anything. 439 00:14:17.960 --> 00:14:19.840 And so the only ask that I can ever have 440 00:14:19.840 --> 00:14:21.160 if you guys said you helped me spread the word 441 00:14:21.160 --> 00:14:22.720 so we could not more entrepreneurs, 442 00:14:22.760 --> 00:14:24.440 make more money, feed their families, 443 00:14:24.440 --> 00:14:26.840 make better products and have better experiences 444 00:14:26.840 --> 00:14:28.440 for their employees and customers. 445 00:14:28.440 --> 00:14:30.680 And the only way we do that is if you can rate 446 00:14:30.680 --> 00:14:32.880 and review and share this podcast. 447 00:14:32.880 --> 00:14:34.240 So the single thing that I have to do, 448 00:14:34.240 --> 00:14:35.440 is if you can just leave a review, 449 00:14:35.440 --> 00:14:37.400 but take 10 seconds or one type of the thumb, 450 00:14:37.400 --> 00:14:39.520 it means the absolute will to me and more importantly, 451 00:14:39.520 --> 00:14:41.520 it may change the world for someone else. 452 00:14:43.360 --> 00:14:45.280 Another way to make a million dollars 453 00:14:45.280 --> 00:14:48.640 is to sell something that's expensive 454 00:14:48.640 --> 00:14:51.120 that you never owned and be the salesperson 455 00:14:51.120 --> 00:14:52.960 like a 20 million dollar house 456 00:14:52.960 --> 00:14:55.360 and getting a million dollar commission. 457 00:14:55.360 --> 00:14:56.200 That's how you do it. 458 00:14:56.200 --> 00:14:57.480 You never own the house. 459 00:14:57.480 --> 00:14:59.920 You literally find something that's very valuable. 460 00:14:59.920 --> 00:15:01.960 You go to the owner, you say you can sell it, 461 00:15:01.960 --> 00:15:04.920 you have the skill of sales and you sell 462 00:15:04.920 --> 00:15:06.040 that very expensive thing 463 00:15:06.040 --> 00:15:07.840 and you get a small percentage of the thing 464 00:15:07.840 --> 00:15:09.760 and the bigger the thing that you sell, 465 00:15:09.760 --> 00:15:11.400 the more money you will make. 466 00:15:11.400 --> 00:15:13.040 The same thing can happen for a business. 467 00:15:13.040 --> 00:15:15.200 So when we sold prestige labs in Jim launch, 468 00:15:15.200 --> 00:15:16.840 we sold for 46.2 million, 469 00:15:16.840 --> 00:15:21.840 the bankers got $2 million for facilitating the transaction. 470 00:15:22.360 --> 00:15:24.280 They never owned anything. 471 00:15:24.280 --> 00:15:25.480 They signed an agreement with us 472 00:15:25.480 --> 00:15:26.680 which cost them no money 473 00:15:26.680 --> 00:15:29.120 and then they did work which cost the company money 474 00:15:29.120 --> 00:15:31.240 but didn't cost the individual's money. 475 00:15:31.240 --> 00:15:33.080 They had skills, they applied those skills 476 00:15:33.080 --> 00:15:34.720 and they got paid $2 million. 477 00:15:34.720 --> 00:15:37.040 You can make money, lots of money 478 00:15:37.040 --> 00:15:37.960 without having lots of money 479 00:15:37.960 --> 00:15:39.880 and literally all you do to all of these examples 480 00:15:39.880 --> 00:15:41.480 I'm giving is you add zeros 481 00:15:41.480 --> 00:15:42.880 like it works the same way. 482 00:15:42.880 --> 00:15:44.040 You can get an option to buy a company. 483 00:15:44.040 --> 00:15:46.040 What do you think we're options traders? 484 00:15:46.040 --> 00:15:47.320 That's what they're doing. 485 00:15:47.320 --> 00:15:49.280 They trade options to buy companies. 486 00:15:49.280 --> 00:15:52.080 So they buy an option to buy a company, 487 00:15:52.080 --> 00:15:54.080 let's say they get a hundred options 488 00:15:54.080 --> 00:15:55.000 because they have limits on them. 489 00:15:55.000 --> 00:15:56.160 It's not an unlimited option. 490 00:15:56.160 --> 00:15:57.080 They get a hundred options 491 00:15:57.080 --> 00:15:59.240 that they can choose to exercise, right? 492 00:15:59.240 --> 00:16:01.160 And so let's say that the stock price 493 00:16:01.160 --> 00:16:03.320 that they're getting the option for is $40 494 00:16:03.320 --> 00:16:07.600 and at the time it's $50 in the future 495 00:16:07.600 --> 00:16:09.600 when they secure the option in the past 496 00:16:09.600 --> 00:16:12.320 and so they paid 1% of the total option 497 00:16:12.320 --> 00:16:15.360 which would be 40 times 100 which would be $4,000. 498 00:16:15.520 --> 00:16:17.160 They pay 1% of that is typically the price 499 00:16:17.160 --> 00:16:19.760 for acquiring options, 1% of the total purchase. 500 00:16:19.760 --> 00:16:21.640 So they pay whatever, 40 bucks for that. 501 00:16:21.640 --> 00:16:26.040 And then later if it does go up and it's 50 bucks 502 00:16:26.040 --> 00:16:28.280 they make the difference on the 10 times 100. 503 00:16:28.280 --> 00:16:31.480 It's the $1,000 they made on 40 bucks, right? 504 00:16:31.480 --> 00:16:33.640 That's how often trading works at a high level. 505 00:16:33.640 --> 00:16:34.960 There's a million other things I don't want to get into it 506 00:16:34.960 --> 00:16:39.160 but the point is like they're doing that just on companies, right? 507 00:16:39.160 --> 00:16:40.480 So you can do that on a house, 508 00:16:40.480 --> 00:16:41.440 you can do that on a business, 509 00:16:41.440 --> 00:16:42.720 you can do that on a company, 510 00:16:42.760 --> 00:16:46.800 the concept of trading a future value, that's what it is. 511 00:16:46.800 --> 00:16:48.560 Another way that you can make a million dollars 512 00:16:48.560 --> 00:16:50.560 is that you can put a small amount of money 513 00:16:50.560 --> 00:16:51.800 into something that's extremely risky 514 00:16:51.800 --> 00:16:54.640 which is the NFT crypto, et cetera world 515 00:16:54.640 --> 00:16:57.400 and then attach an audience to it. 516 00:16:57.400 --> 00:17:01.960 And so you create scarcity for a good or service or asset 517 00:17:01.960 --> 00:17:04.160 and then you blow an audience on top of it 518 00:17:04.160 --> 00:17:06.320 which then jacks the price up of whatever the thing it is 519 00:17:06.320 --> 00:17:07.360 that you're selling. 520 00:17:07.360 --> 00:17:08.480 So you have a scarce resource, 521 00:17:08.480 --> 00:17:09.880 let's say you have five of the thing 522 00:17:09.880 --> 00:17:12.240 and then you get a million people to want the thing 523 00:17:12.240 --> 00:17:13.800 and then you sell only those five 524 00:17:13.800 --> 00:17:16.080 and then the price that you can charge for anything 525 00:17:16.080 --> 00:17:17.280 when you have a million people bidding on it 526 00:17:17.280 --> 00:17:19.120 and if there's only five of them is a lot. 527 00:17:19.120 --> 00:17:21.080 So it's another way that you can make a million dollars 528 00:17:21.080 --> 00:17:23.800 and that's on a digital asset which costs you nothing to do. 529 00:17:23.800 --> 00:17:25.880 Another way is literally reverse engineering this 530 00:17:25.880 --> 00:17:27.600 so this is a little bit more tactical 531 00:17:27.600 --> 00:17:29.040 but I think it's important. 532 00:17:29.040 --> 00:17:30.880 It's that most people don't even know the math around 533 00:17:30.880 --> 00:17:32.520 but making a million dollars, all right? 534 00:17:32.520 --> 00:17:35.080 And so in a big picture perspective 535 00:17:35.080 --> 00:17:37.280 you can just sell something for a million dollars 536 00:17:37.280 --> 00:17:39.200 and that may make you laugh but like that 537 00:17:39.200 --> 00:17:40.920 is also a way to make a million dollars. 538 00:17:40.920 --> 00:17:43.520 Underneath of that you can sell 100 things 539 00:17:43.520 --> 00:17:45.560 that are $10,000, right? 540 00:17:45.560 --> 00:17:47.320 Which is two a week. 541 00:17:47.320 --> 00:17:49.360 So two people a week for 10 grand, 542 00:17:49.360 --> 00:17:50.280 you have a million dollar business. 543 00:17:50.280 --> 00:17:51.560 Now you're not making necessarily a million dollars 544 00:17:51.560 --> 00:17:52.800 unless you have no employees 545 00:17:52.800 --> 00:17:54.720 but you have a million dollar business. 546 00:17:54.720 --> 00:17:56.760 Underneath of that you can also think about it 547 00:17:56.760 --> 00:17:58.440 from a monthly perspective, right? 548 00:17:58.440 --> 00:18:00.640 Which is, okay, if I have people 549 00:18:00.640 --> 00:18:03.240 who are paying me $200 a month, right? 550 00:18:03.240 --> 00:18:05.880 That's $2,400 a year assuming they stay 551 00:18:05.880 --> 00:18:07.040 for that period of time. 552 00:18:07.040 --> 00:18:09.080 And in order for me to make a million dollars 553 00:18:09.080 --> 00:18:13.600 I have to do 400 people who are paying me $200 a month. 554 00:18:13.600 --> 00:18:15.840 Roughly, it's $83,000 but you get the idea. 555 00:18:15.840 --> 00:18:18.360 413 or whatever the number is. 556 00:18:18.360 --> 00:18:21.040 On recurring revenue every single month 557 00:18:21.040 --> 00:18:22.800 makes you a million dollars, right? 558 00:18:22.800 --> 00:18:24.960 You can sell a thousand people, a thousand dollar thing. 559 00:18:24.960 --> 00:18:26.360 And a good way to think about this 560 00:18:26.360 --> 00:18:28.040 is not even necessarily the ticket price 561 00:18:28.040 --> 00:18:29.800 but the lifetime value. 562 00:18:29.800 --> 00:18:31.720 All right, I'm gonna get real with you guys right now. 563 00:18:31.720 --> 00:18:34.000 This is how I analyze every business that I look at. 564 00:18:34.000 --> 00:18:35.880 I look at sales velocity against LTV. 565 00:18:35.880 --> 00:18:37.320 And you're like, what the fuck is that? 566 00:18:37.320 --> 00:18:38.400 I'll tell you right now. 567 00:18:38.400 --> 00:18:40.720 Sales velocity is the number of units sold per month. 568 00:18:40.720 --> 00:18:42.560 All right, so if you sell 20 people a month 569 00:18:42.560 --> 00:18:44.400 on your thing, your sales velocity is 20. 570 00:18:44.400 --> 00:18:46.320 It's the number of units sold, okay? 571 00:18:46.320 --> 00:18:48.520 And then you multiply that by the lifetime value 572 00:18:48.520 --> 00:18:49.760 of the customer, okay? 573 00:18:49.760 --> 00:18:53.160 And so for me, I know I have a long time horizon. 574 00:18:53.160 --> 00:18:55.880 And so even if something's $10 a month 575 00:18:55.880 --> 00:18:57.600 and I know that this person over time 576 00:18:57.600 --> 00:18:59.760 is going to be worth $1,000 to me, 577 00:18:59.760 --> 00:19:01.360 then I know that at this sales velocity 578 00:19:01.360 --> 00:19:04.760 at 20 times the lifetime value of $1,000, 579 00:19:04.760 --> 00:19:06.440 I'm gonna be at $20,000 a month 580 00:19:06.440 --> 00:19:08.520 by changing nothing about this business. 581 00:19:08.520 --> 00:19:11.200 It'll increase quickly and then it'll slow down 582 00:19:11.200 --> 00:19:13.560 as you start to reach near equilibrium at the top. 583 00:19:13.560 --> 00:19:16.800 You have 20 people per month and $1,000 in LTV. 584 00:19:16.800 --> 00:19:18.880 It just depends on how long it takes to get that $1,000. 585 00:19:18.880 --> 00:19:21.240 If it takes you a year, you'll get to that balance point 586 00:19:21.240 --> 00:19:22.160 in about a year. 587 00:19:22.160 --> 00:19:23.600 If it actually probably takes two years 588 00:19:23.600 --> 00:19:25.040 because you have a year to assemble that amount 589 00:19:25.040 --> 00:19:27.000 and then a year later, but doesn't matter. 590 00:19:27.000 --> 00:19:29.920 And so big picture, when you were thinking 591 00:19:29.920 --> 00:19:31.840 about how to make a million dollars, 592 00:19:31.840 --> 00:19:33.520 multiply the number of customers you have 593 00:19:33.520 --> 00:19:34.920 by the lifetime value. 594 00:19:34.920 --> 00:19:36.680 And that will give you your predictive index 595 00:19:36.680 --> 00:19:39.240 of where you will hypothetically max out. 596 00:19:39.240 --> 00:19:43.280 So right now, you're stuck at 10 sales a month 597 00:19:43.280 --> 00:19:45.520 and the average person who pays you 598 00:19:45.520 --> 00:19:47.960 is worth $1,500 of lifetime value. 599 00:19:47.960 --> 00:19:50.520 And if you're stuck at $15,000 a month 600 00:19:50.520 --> 00:19:52.160 because you got 10 people times 1,500, 601 00:19:52.160 --> 00:19:54.520 and you're stuck at $15,000, you're not gonna grow 602 00:19:54.520 --> 00:19:57.800 because your lifetime value is 15 and you're selling 10. 603 00:19:57.800 --> 00:19:59.200 Unless you make them more valuable 604 00:19:59.200 --> 00:20:01.400 or you sell more of them, you're not gonna grow. 605 00:20:01.400 --> 00:20:02.680 And so if you want the million dollars, 606 00:20:02.680 --> 00:20:05.040 you have to figure out how to make that math work. 607 00:20:05.040 --> 00:20:07.640 So either you've got to sell whatever that is, 608 00:20:07.640 --> 00:20:09.480 five times six times more on the front end 609 00:20:09.480 --> 00:20:12.080 in terms of total units or you have to make them worth 610 00:20:12.080 --> 00:20:13.840 five or six times more on the back end 611 00:20:13.840 --> 00:20:14.960 by selling more expensive stuff, 612 00:20:14.960 --> 00:20:17.680 by getting to stay longer, upsells, crosshels, et cetera. 613 00:20:17.680 --> 00:20:20.280 And so reversing your way into a million dollars 614 00:20:20.280 --> 00:20:21.440 from a business perspective, 615 00:20:21.440 --> 00:20:23.400 it just comes down to number of units sold 616 00:20:23.400 --> 00:20:24.680 and the lifetime value. 617 00:20:24.680 --> 00:20:26.000 That's it. 618 00:20:26.000 --> 00:20:28.440 Another way to make a million dollars with no money 619 00:20:28.440 --> 00:20:31.560 is that you can combine things that make money 620 00:20:31.560 --> 00:20:33.360 for no money down, give you an example. 621 00:20:33.360 --> 00:20:34.960 So there's a company that we're looking at 622 00:20:34.960 --> 00:20:36.920 in our portfolio that's trying to come on. 623 00:20:36.920 --> 00:20:40.400 And they actually, the guy went through a course on M&A. 624 00:20:40.400 --> 00:20:43.160 He got four small guru businesses 625 00:20:43.160 --> 00:20:45.000 to give him their businesses. 626 00:20:45.000 --> 00:20:46.040 He's seller financed it. 627 00:20:46.040 --> 00:20:49.240 So let's say, I'll give you $200,000 for your business, 628 00:20:49.240 --> 00:20:50.680 your business makes $200,000 a year 629 00:20:50.680 --> 00:20:53.200 and I'll give it to you over the next year, right? 630 00:20:53.200 --> 00:20:55.280 So you just give me the business, I'll keep running it. 631 00:20:55.280 --> 00:20:58.240 You get your $200,000 and after the end of that year, 632 00:20:58.240 --> 00:20:59.600 I get it back where you can spread the debt 633 00:20:59.600 --> 00:21:01.160 over two years, whatever, right? 634 00:21:01.200 --> 00:21:04.320 And so he did that and he combined four different businesses 635 00:21:04.320 --> 00:21:06.960 and he has a business now that does four million top line 636 00:21:06.960 --> 00:21:08.600 a million and a half in bottom line 637 00:21:08.600 --> 00:21:09.880 and he didn't build any of it. 638 00:21:09.880 --> 00:21:11.720 He just combined it by getting all of them 639 00:21:11.720 --> 00:21:13.800 to seller financed their own businesses to him 640 00:21:13.800 --> 00:21:16.760 and now he's a business that does four and one and a half 641 00:21:16.760 --> 00:21:21.120 which might be worth four, five million bucks combined, right? 642 00:21:21.120 --> 00:21:25.360 And so he was able to create that value because of skills. 643 00:21:25.360 --> 00:21:27.320 He didn't need money to do it, he needed skills 644 00:21:27.320 --> 00:21:28.760 and it's exactly what he did. 645 00:21:28.760 --> 00:21:30.800 And in that instance, he didn't just make a million dollars, 646 00:21:30.800 --> 00:21:33.240 he made something that makes him a million and a half dollars a year 647 00:21:33.240 --> 00:21:35.040 and he just has to wait a year to pay off his debts 648 00:21:35.040 --> 00:21:36.840 and then he can start realizing that. 649 00:21:36.840 --> 00:21:40.240 But day one, even with the debt on the books, 650 00:21:40.240 --> 00:21:42.280 he has the asset that is now worth more. 651 00:21:42.280 --> 00:21:44.000 Now you probably want to show a run rate to that like, 652 00:21:44.000 --> 00:21:46.040 you know, it's stable and it's not going to all go to shit 653 00:21:46.040 --> 00:21:48.400 but fundamentally it is now a much more valuable thing 654 00:21:48.400 --> 00:21:49.440 than it was before. 655 00:21:49.440 --> 00:21:52.760 So when you combine small things into a bigger thing, 656 00:21:52.760 --> 00:21:53.600 things become more valuable. 657 00:21:53.600 --> 00:21:55.920 If you've heard the term a roll up in private equity, 658 00:21:55.920 --> 00:21:57.440 that's when they take lots of little things, 659 00:21:57.440 --> 00:21:59.400 they combine them together and they make it into a big thing. 660 00:21:59.400 --> 00:22:00.720 And the big thing is worth a lot more 661 00:22:00.720 --> 00:22:03.560 because of the effort it took to combine all the little things. 662 00:22:03.560 --> 00:22:05.320 And so a guy who's got a bigger check, 663 00:22:05.320 --> 00:22:08.240 Carlisle can't write checks for less than $100 million, right? 664 00:22:08.240 --> 00:22:11.040 It's not worth it to them, it's not worth the time. 665 00:22:11.040 --> 00:22:13.720 And so they let these small operators 666 00:22:13.720 --> 00:22:17.800 make the purchase more efficient for the big sellers 667 00:22:17.800 --> 00:22:19.160 and get the arbitrage. 668 00:22:19.160 --> 00:22:21.640 So at the smallest level, people will just give their businesses 669 00:22:21.640 --> 00:22:23.680 away for free, by the way, if you didn't know that. 670 00:22:23.680 --> 00:22:27.240 Like every day, like 10,000 old people retire 671 00:22:27.240 --> 00:22:28.400 and they just give up their businesses 672 00:22:28.400 --> 00:22:31.080 because their kids don't want to be plumbers or whatever it is. 673 00:22:31.080 --> 00:22:32.360 They just give up their businesses. 674 00:22:32.360 --> 00:22:34.720 So there's huge opportunity right now to do that. 675 00:22:34.720 --> 00:22:37.400 And so people can mop these up for basically nothing. 676 00:22:37.400 --> 00:22:38.520 They roll them together and they sell it 677 00:22:38.520 --> 00:22:40.400 to the first kind of tier of private equity. 678 00:22:40.400 --> 00:22:42.360 Now those tiers of private equity, like the guy 679 00:22:42.360 --> 00:22:44.560 that was telling you, he's just mopping up the bottom here, right? 680 00:22:44.560 --> 00:22:47.040 He's got four million, five million bucks of top line. 681 00:22:47.040 --> 00:22:50.120 Now another guy's gonna take four or five of those guys 682 00:22:50.120 --> 00:22:52.680 and mop them into $25 million of top line 683 00:22:52.680 --> 00:22:55.360 and six or seven million dollars of EBITDA. 684 00:22:55.360 --> 00:22:59.360 And he's gonna be able to sell that for 60 to 70 million. 685 00:22:59.360 --> 00:23:02.240 And then from there, there's a guy who's mopping up 25s 686 00:23:02.240 --> 00:23:05.320 and putting them together to be 125 million top line 687 00:23:05.320 --> 00:23:07.120 with 30, 40 million. 688 00:23:07.120 --> 00:23:08.880 And that guy's gonna get even bigger multiple. 689 00:23:08.880 --> 00:23:11.560 So you get the arbitrage on the multiple 690 00:23:11.560 --> 00:23:14.880 that is given to the business that you're buying. 691 00:23:14.880 --> 00:23:16.440 Like that's the arbitrage between the two things. 692 00:23:16.440 --> 00:23:18.360 Like the guy who gets it for free, 693 00:23:18.360 --> 00:23:20.040 he gets a huge arbitrage by percentage 694 00:23:20.040 --> 00:23:21.520 but his absolute amount is lower. 695 00:23:21.520 --> 00:23:24.120 At the end, the arbitrage in terms of multiples, 696 00:23:24.120 --> 00:23:25.040 it's not as high. 697 00:23:25.040 --> 00:23:26.760 You're getting it on an enormous amount of money. 698 00:23:26.760 --> 00:23:28.400 And so everybody makes money down the chain. 699 00:23:28.400 --> 00:23:29.400 It's just on different ways. 700 00:23:29.400 --> 00:23:31.520 Here on the bottom, it's on the multiple on the top. 701 00:23:31.520 --> 00:23:33.720 It's just on the fact that it's such a huge amount of money. 702 00:23:33.720 --> 00:23:36.680 If you get one more, if you go from a 10x to a 12x 703 00:23:36.680 --> 00:23:40.360 on $100 million, well then you just make 200 million 704 00:23:40.360 --> 00:23:42.400 even with that 10 to 12 difference, right? 705 00:23:42.400 --> 00:23:43.840 That's the idea. 706 00:23:43.840 --> 00:23:46.200 Another way to make money is that you lend money 707 00:23:46.200 --> 00:23:47.680 between two parties. 708 00:23:47.680 --> 00:23:52.080 So if you get access to money between one person 709 00:23:52.080 --> 00:23:54.400 and he's like, I'll give you money at this rate. 710 00:23:54.400 --> 00:23:56.960 And these people are like, I'll pay you money at this rate. 711 00:23:56.960 --> 00:23:59.440 You hand the money to this person, you make the difference. 712 00:23:59.440 --> 00:24:01.560 And you can do that at every level of business, 713 00:24:01.560 --> 00:24:04.520 whether it's $100, whether it's a billion dollars. 714 00:24:04.520 --> 00:24:05.560 You're arbitraging price, 715 00:24:05.560 --> 00:24:08.320 but now you're actually just arbitraging money. 716 00:24:08.320 --> 00:24:09.880 Another way to make a million dollars 717 00:24:09.880 --> 00:24:12.440 is to promote stuff that other people sell. 718 00:24:12.440 --> 00:24:13.960 So rather than you try and figure out 719 00:24:13.960 --> 00:24:16.840 how to like build a supply chain and build products 720 00:24:16.840 --> 00:24:19.120 and do all that stuff, you find stuff you like, 721 00:24:19.120 --> 00:24:21.040 and then you promote their stuff. 722 00:24:21.040 --> 00:24:24.360 And you just get money and it costs you nothing, right? 723 00:24:24.400 --> 00:24:26.880 And all it did is cost you the time to build the audience, all right? 724 00:24:26.880 --> 00:24:28.200 And so if you're like, well, I don't have an audience. 725 00:24:28.200 --> 00:24:31.840 It's like, well, I didn't say that it was free. 726 00:24:31.840 --> 00:24:34.040 I said it wasn't costly money-wise. 727 00:24:34.040 --> 00:24:35.640 You can do that if you don't have money, 728 00:24:35.640 --> 00:24:37.200 if you have the audience, if you don't have the audience, 729 00:24:37.200 --> 00:24:38.360 get the skills. 730 00:24:38.360 --> 00:24:39.960 That's the point. 731 00:24:39.960 --> 00:24:42.160 And the last one is arbitrage of a different kind, 732 00:24:42.160 --> 00:24:44.200 which is arbitrage in between two things. 733 00:24:44.200 --> 00:24:45.920 And so think about it this way. 734 00:24:45.920 --> 00:24:47.360 So I talked about the option thing, right? 735 00:24:47.360 --> 00:24:49.720 That might seem like a little bit more fist to some of you. 736 00:24:49.720 --> 00:24:50.920 But think about this. 737 00:24:50.960 --> 00:24:54.400 Imagine you look on Walmart.com and see a product 738 00:24:54.400 --> 00:24:57.440 that's selling for 10 bucks and you go on Amazon 739 00:24:57.440 --> 00:25:00.240 and it's selling for 14 bucks. 740 00:25:00.240 --> 00:25:02.240 You can mark it and have the difference 741 00:25:02.240 --> 00:25:05.920 between those two prices and never touch anything, right? 742 00:25:05.920 --> 00:25:07.480 You can do that as many times as you want 743 00:25:07.480 --> 00:25:10.640 to make a million dollars and it costs you no risk, right? 744 00:25:10.640 --> 00:25:12.560 Now, whenever you take on inventory, 745 00:25:12.560 --> 00:25:14.440 take on these other things, you incur more risk, 746 00:25:14.440 --> 00:25:15.400 but you have more upside. 747 00:25:15.400 --> 00:25:18.880 But the thing is that with scale, you can make anything big, right? 748 00:25:18.880 --> 00:25:20.400 So if you sell a million units of something, 749 00:25:20.400 --> 00:25:22.600 you tend to make money in general. 750 00:25:22.600 --> 00:25:25.520 And so I want people thinking in orders of magnitude 751 00:25:25.520 --> 00:25:28.440 in terms of like, not just how do I make $100,000 a year, 752 00:25:28.440 --> 00:25:29.480 but how do I make a million dollars 753 00:25:29.480 --> 00:25:31.160 on a single transaction? 754 00:25:31.160 --> 00:25:32.720 If you're like, I don't know how to do that, 755 00:25:32.720 --> 00:25:34.920 then solve for that problem. 756 00:25:34.920 --> 00:25:36.080 Like it's gonna take you to sit, 757 00:25:36.080 --> 00:25:38.160 and honestly, you might even take you less time 758 00:25:38.160 --> 00:25:40.960 to learn what to do to make a million dollars 759 00:25:40.960 --> 00:25:43.120 than it does to learn what to do to make $100,000. 760 00:25:43.120 --> 00:25:45.000 It's like the time it takes to learn the thing is the same. 761 00:25:45.000 --> 00:25:47.920 You just change the goal of what you're trying to learn. 762 00:25:47.920 --> 00:25:48.680 And so it ends up happening 763 00:25:48.760 --> 00:25:51.200 that people go up the entrepreneurial ladder 764 00:25:51.200 --> 00:25:54.680 and they give themselves permission to learn the next level. 765 00:25:54.680 --> 00:25:58.120 When I'm giving you permission to learn the top level day one, 766 00:25:58.120 --> 00:26:00.800 you can just go for learning the skills at the top. 767 00:26:00.800 --> 00:26:03.520 You don't have to learn how to make $100,000 a year. 768 00:26:03.520 --> 00:26:05.320 You can just go straight for learning how to make 769 00:26:05.320 --> 00:26:07.040 a million dollars on a single transaction 770 00:26:07.040 --> 00:26:08.040 and learn how to do that. 771 00:26:08.040 --> 00:26:09.880 And I'll tell you a quick story on this. 772 00:26:09.880 --> 00:26:11.880 So buddy of mine got into real estate, 773 00:26:11.880 --> 00:26:14.520 was flipping houses, didn't think there was a lot of money 774 00:26:14.520 --> 00:26:16.240 and it was like, oh, this sucks, this is so much work 775 00:26:16.240 --> 00:26:17.480 and there's all those, you know, 776 00:26:17.520 --> 00:26:19.360 fixing things and all this stuff, you didn't like it. 777 00:26:19.360 --> 00:26:22.760 So he ended up buying a 14 unit apartment building 778 00:26:22.760 --> 00:26:25.800 with someone else's money and he didn't have any, 779 00:26:25.800 --> 00:26:28.880 both the apartment building and then sold it 780 00:26:28.880 --> 00:26:31.560 four months later for $500,000 more. 781 00:26:31.560 --> 00:26:33.360 And he made 500 grand in one transaction 782 00:26:33.360 --> 00:26:34.840 and he was like, holy shit. 783 00:26:34.840 --> 00:26:37.120 And so then he realized that the more expensive the building 784 00:26:37.120 --> 00:26:39.000 he sold, the more money he made. 785 00:26:39.000 --> 00:26:41.160 And so then he started getting into commercial real estate, 786 00:26:41.160 --> 00:26:44.120 which is even more expensive than residential on average. 787 00:26:44.120 --> 00:26:45.840 And so he's like, wait a second, 788 00:26:45.840 --> 00:26:48.640 I can buy something for $10 million 789 00:26:48.640 --> 00:26:51.360 and then I can flip it to somebody for $13 790 00:26:51.360 --> 00:26:54.560 and not even hold onto it for that long in a few months. 791 00:26:54.560 --> 00:26:55.880 And then all of a sudden, 792 00:26:55.880 --> 00:26:59.040 he started flipping 30 or 40 of these a year 793 00:26:59.040 --> 00:27:01.000 with just him and a couple of VAs. 794 00:27:01.960 --> 00:27:04.360 And just like that, the man's making 795 00:27:04.360 --> 00:27:05.640 many, many millions a month 796 00:27:05.640 --> 00:27:07.560 and I would say many, many, many, many, many 797 00:27:07.560 --> 00:27:09.640 with a very small team because he learned a skill 798 00:27:09.640 --> 00:27:11.320 that he could do at scale 799 00:27:11.320 --> 00:27:13.760 because he's not actually selling a ton of units. 800 00:27:13.760 --> 00:27:16.000 Just each of the units he sells is worth so much. 801 00:27:16.000 --> 00:27:19.840 And so he sends out 250,000 letters a year 802 00:27:19.840 --> 00:27:21.880 to make 40 deals. 803 00:27:21.880 --> 00:27:24.120 People were like, well, how can I find a deal like that? 804 00:27:24.120 --> 00:27:26.560 Knock on 250,000 fucking doors. 805 00:27:26.560 --> 00:27:28.160 And that's how you find deals like that. 806 00:27:28.160 --> 00:27:29.920 But people dramatically underestimate the amount 807 00:27:29.920 --> 00:27:31.480 of effort it takes to be really successful. 808 00:27:31.480 --> 00:27:32.760 They're like, I still know 100 letters out. 809 00:27:32.760 --> 00:27:34.720 It's like, 100's not even a test size. 810 00:27:34.720 --> 00:27:36.200 It's literally just an irrelevant number. 811 00:27:36.200 --> 00:27:39.480 The statistical efficiency of that number is so small, 812 00:27:39.480 --> 00:27:40.320 it's irrelevant. 813 00:27:40.320 --> 00:27:41.320 It doesn't even matter.