WEBVTT 1 00:00:00.000 --> 00:00:07.000 Welcome back to the game, so how do the top 0.1% of the world actually make more money than everyone else? 2 00:00:07.000 --> 00:00:12.000 Well, there's three layers and I'm going to start at the top, which is global, so let's dive in. 3 00:00:12.000 --> 00:00:18.000 How do the top 0.1% in the world actually make more money than everyone else? 4 00:00:18.000 --> 00:00:22.000 There's three layers. Let's start with layer one, global. 5 00:00:22.000 --> 00:00:27.000 So if you zoom all the way out, the top 1% of countries in the world do things differently than the rest of them. 6 00:00:27.000 --> 00:00:33.000 And we can measure the productivity of a country by something called GDP, which is gross domestic product per capita. 7 00:00:33.000 --> 00:00:39.000 Now, the per capita part just means how much total production the economy does, so just think revenue, think sales. 8 00:00:39.000 --> 00:00:41.000 And then per capita is per person. 9 00:00:41.000 --> 00:00:47.000 And so this allows us to normalize different countries that are big countries versus small countries and see how much the individual is making. 10 00:00:47.000 --> 00:00:53.000 Now, the reason this is so important and why we start at layer one global is because if you even out everything, 11 00:00:53.000 --> 00:00:58.000 you will be able to see the strongest levers on wealth creation because they're just done in aggregate. 12 00:00:58.000 --> 00:01:04.000 And to be clear, within each country, of course there are some people that get way more of that slice of the pie than others. 13 00:01:04.000 --> 00:01:10.000 But even at the global level, there are some countries that get more of the slice of the pie than other countries. 14 00:01:10.000 --> 00:01:15.000 And so for example, the United States has the largest GDP in the world and Tuvalu has the smallest. 15 00:01:15.000 --> 00:01:22.000 Now per capita shifts around. Luxembourg is actually the country in the world that has the highest GDP per person, so 151,000. 16 00:01:23.000 --> 00:01:26.000 Now I'll give you an example of number two, which is Singapore. 17 00:01:26.000 --> 00:01:32.000 They have the second highest GDP per capita and also is also the home of Michael, who's our media director. 18 00:01:32.000 --> 00:01:37.000 And the reason they were able to do that is because they invest these countries in two major categories. 19 00:01:37.000 --> 00:01:40.000 Number one is education and number two is technology. 20 00:01:40.000 --> 00:01:48.000 And so if we think about this at a global level, which is I think is important, is what are the inputs that every country has that's even? 21 00:01:48.000 --> 00:01:51.000 The inputs are time and bodies. 22 00:01:51.000 --> 00:01:59.000 And so at the very basic level, anybody at all these countries at level zero can do menial labor, which is basically things that have required no skill to do. 23 00:01:59.000 --> 00:02:05.000 So if I had a conveyor belt of switchboards and I had to plug two things in and another one comes in and I have plugged two things in, 24 00:02:05.000 --> 00:02:08.000 it's typically something that you can train someone to do in about five minutes. 25 00:02:08.000 --> 00:02:12.000 And then you're just basically having them trade their time and doing this very simple task repetitively. 26 00:02:13.000 --> 00:02:22.000 Now, that is typically not valued nearly as highly as other skills, which is why countries will invest in technology and education. 27 00:02:22.000 --> 00:02:26.000 The education said that they have more skills, technology to do three things. 28 00:02:26.000 --> 00:02:29.000 Technology does number one, it allows you to do more of what you currently do. 29 00:02:29.000 --> 00:02:35.000 So that switchboard person, if there wasn't a conveyor belt in front of them, wouldn't be able to do nearly as many of those things as someone who did. 30 00:02:35.000 --> 00:02:39.000 The second thing is that technology allows you to do what you can already do even better. 31 00:02:39.000 --> 00:02:45.000 And so think of both of those in terms of units of time, because remember this is one of the key inputs that everybody has that's even. 32 00:02:45.000 --> 00:02:50.000 Whether you're in the richest country in the world or the poorest country in the world, every single person has the same 24 hours. 33 00:02:50.000 --> 00:03:00.000 And yet some countries massively outcompete other ones, just like some individuals in every individual economy massively outcompete within them, which will peel back in layer two. 34 00:03:01.000 --> 00:03:03.000 And so imagine you have two different sets of people. 35 00:03:03.000 --> 00:03:05.000 We've got 100 people on one side and 100 people on the other. 36 00:03:05.000 --> 00:03:12.000 And the 100 people on one side have electricity, Wi-Fi, internet, computers, like just that versus the others don't. 37 00:03:12.000 --> 00:03:15.000 Well, which one's going to produce more economic value? Obviously the one on the left. 38 00:03:15.000 --> 00:03:20.000 Not because these people are inherently better than the others, they just have technology on their side. 39 00:03:20.000 --> 00:03:25.000 And so we have to think about ourselves from the country all the way down using the same tools. 40 00:03:25.000 --> 00:03:35.000 So at the first layer, the wealthiest people in the world, the .1% invest in gaining skills, buying technology, or learning skills to use that technology. 41 00:03:35.000 --> 00:03:40.000 Now, if you're hearing this, you might think like I would. Well, cool, that's great for them, but what about me? 42 00:03:40.000 --> 00:03:42.000 So that enters into layer two. 43 00:03:42.000 --> 00:03:44.000 So let's zoom in on that. 44 00:03:44.000 --> 00:03:48.000 What are the skills that actually create the production at the individual level? 45 00:03:48.000 --> 00:03:53.000 So instead of global, now let's talk about that per capita, that person, just like you, just like me. 46 00:03:53.000 --> 00:04:02.000 Now, how do the .1% actually create that gross domestic product, that gross production, that revenue that then gets categorized for the entire country? 47 00:04:02.000 --> 00:04:09.000 Well, there are three skills that I'll call BSL, and then they're multiplied by something that I'll use as R. 48 00:04:09.000 --> 00:04:11.000 And you're like, what do these all stand for? 49 00:04:11.000 --> 00:04:18.000 Well, the first thing, category of skills, is around building, you make stuff. 50 00:04:18.000 --> 00:04:25.000 You either build bridges, you build software, sometimes building is putting together things so that you can do services, but you build stuff. 51 00:04:25.000 --> 00:04:28.000 The second is you sell stuff. 52 00:04:28.000 --> 00:04:31.000 The third is you lead people. 53 00:04:31.000 --> 00:04:38.000 And these also chunk up, if you want the fancier terms here, to mechanical, verbal, and social skills. 54 00:04:38.000 --> 00:04:45.000 So these are the three overarching categories that skill development, as it relates to GDP, can get bubbling up to. 55 00:04:45.000 --> 00:04:49.000 Now, to be clear, each of these skills are not binary. 56 00:04:49.000 --> 00:04:51.000 It's not, oh, you know how to build. 57 00:04:51.000 --> 00:04:52.000 Oh, you know how to sell. 58 00:04:52.000 --> 00:04:53.000 Oh, you know how to lead. 59 00:04:53.000 --> 00:04:55.000 But it's how well can you build? 60 00:04:55.000 --> 00:04:56.000 How well can you sell? 61 00:04:56.000 --> 00:04:58.000 And how well can you lead? 62 00:04:58.000 --> 00:05:04.000 And so with each of these, they create leverage, they get you more for what you put in, specifically time. 63 00:05:04.000 --> 00:05:09.000 Because if I build something, then I can have many people use it over and over again. 64 00:05:09.000 --> 00:05:12.000 If I learn how to sell, I can sell many people at once. 65 00:05:12.000 --> 00:05:19.000 If I learn how to lead, I can get many people inside my company to do many things on my behalf. 66 00:05:19.000 --> 00:05:32.000 And in each of these situations, that one person starts to accumulate the aggregate production of everyone else that touches either the thing they built, how they got people to exchange money for it, or the people that they were able to lead to deliver. 67 00:05:32.000 --> 00:05:37.000 And the outcome of all of these things is the big thing that everyone cares about, which is money. 68 00:05:37.000 --> 00:05:43.000 The longer that this lever gets, meaning if I get better and better at building, then more money happens on this side. 69 00:05:43.000 --> 00:05:46.000 If I get better and better at selling, more money happens on this side. 70 00:05:46.000 --> 00:05:51.000 If I get better and better at leading, I can pull this lever with more leverage and get more money. 71 00:05:51.000 --> 00:05:55.000 Now, what do the richest people in the world have in common? 72 00:05:55.000 --> 00:06:02.000 Well, not only do they have one of these skills developed out a lot, many of them have all of these skills super maxed out. 73 00:06:02.000 --> 00:06:06.000 So let's zoom in on some of the biggest financial success stories of our time. 74 00:06:06.000 --> 00:06:12.000 So if you look at Zuckerberg, for example, who's the founder of Facebook, when he started, he probably mostly just had build skills. 75 00:06:12.000 --> 00:06:16.000 But those build skills were enough that eventually he learned a little bit more about promotion. 76 00:06:16.000 --> 00:06:20.000 He built some promotion into the product, which allowed him to get more people on. 77 00:06:20.000 --> 00:06:24.000 Then over time, he developed leadership skills so that he could lead the company. 78 00:06:24.000 --> 00:06:29.000 And it's very common that building and selling happen in the beginning and then leading develops over time. 79 00:06:29.000 --> 00:06:32.000 Because in the beginning, who are you going to be leading besides yourself? 80 00:06:32.000 --> 00:06:38.000 Not many people. And this skill naturally will develop in time, but it gives you more leverage on the other too. 81 00:06:38.000 --> 00:06:40.000 So let's get tactical on build. 82 00:06:40.000 --> 00:06:45.000 So in this book, $100 million offers, I talk about the concept of trimming and stacking. 83 00:06:45.000 --> 00:06:49.000 So it starts with looking at all the different problems that a customer presents with. 84 00:06:49.000 --> 00:06:52.000 And then thinking, okay, how many different ways can I solve them? 85 00:06:52.000 --> 00:07:00.000 And so I use something called the delivery cube to say, okay, if we have this one problem, how can I solve this by thinking about level of personal attention I want to provide? 86 00:07:00.000 --> 00:07:02.000 What level of effort would be expected from them? 87 00:07:02.000 --> 00:07:09.000 If doing something like what kind of environment or medium do I want to solve this problem and how do I want these people to consume my solution? 88 00:07:09.000 --> 00:07:16.000 How quickly do I want them to get a response or get their problem solved using my services or product? 89 00:07:16.000 --> 00:07:21.000 And then if I were to create a product that was ten times as expensive, what would that look like? 90 00:07:21.000 --> 00:07:27.000 And if I had to create a product that was one tenth as expensive, but still had to preserve the same outcome, how would I build that instead? 91 00:07:27.000 --> 00:07:30.000 And so this is a wonderful framework that I like to think through. 92 00:07:30.000 --> 00:07:36.000 And also wondering, is there a way that we can psychologically solve a problem rather than simply logically solve a problem? 93 00:07:36.000 --> 00:07:43.000 And Rory Sutherland talks about this when he explains that some people used to complain about having slow elevators. 94 00:07:44.000 --> 00:07:55.000 You could either replace the entire elevator system, put a bigger motor in and try and get people there faster or you can just put mirrors in the elevators and then people stare at themselves and don't notice the time pass. 95 00:07:55.000 --> 00:08:01.000 And so that would be a psychological rather than logical solution because customers are by and large illogical. 96 00:08:01.000 --> 00:08:07.000 And so we want to make sure that the solution that we have solves the problem and sometimes it's not even in the way that you'd logically expect. 97 00:08:08.000 --> 00:08:17.000 Now the way that this problem solution cycle actually works, which I talk about in the leads book, is that you're going to have one problem they present with and then you're going to solve it. 98 00:08:17.000 --> 00:08:24.000 And then what happens is that creates yet another problem because let's say that you solve someone's hunger problem with a salty pretzel. 99 00:08:24.000 --> 00:08:29.000 Well what solution comes up naturally or what problem comes up naturally? Well now they're thirsty. 100 00:08:29.000 --> 00:08:32.000 So then you solve that with a glass of water or a soda. 101 00:08:32.000 --> 00:08:35.000 And so this cycle continues and continues and continues. 102 00:08:35.000 --> 00:08:39.000 Now once you've solved those two problems, what's the next problem? Well now their dessert stomach is empty. 103 00:08:39.000 --> 00:08:50.000 So we have to present them with a cookie, right? And so there's always, if you properly solve a problem for a customer, there's almost always another problem that gets presented as a result of the solution. 104 00:08:50.000 --> 00:08:53.000 And the main reason for that is because people are never satisfied. 105 00:08:54.000 --> 00:09:02.000 And so over the span of many years, a good builder will develop an ecosystem of products that solves many customer issues at once. 106 00:09:02.000 --> 00:09:07.000 So if you look at Apple, one of the most viable companies in the world, if not the most viable, is that it's not just that they have one product. 107 00:09:07.000 --> 00:09:13.000 They've built an end-to-end ecosystem that's closed so that someone can use just their products and solve most of their digital needs. 108 00:09:13.000 --> 00:09:19.000 They've got a browser, they've got computers, they've got a phone, they have music where you can buy the stuff, everything's interconnected. 109 00:09:19.000 --> 00:09:24.000 But if you're like, oh, I'm going to build that. Well, that also took them, you know, 50 years or however long it's been. 110 00:09:24.000 --> 00:09:36.000 So this stuff happens over time. So that cover is build. But what about sell? Well selling is about the perception of the prospect, which is that fundamentally you might have the best product in the world. 111 00:09:36.000 --> 00:09:43.000 But if they don't perceive it to be the best product or even know that it exists, then there's no way that they're ever going to use it. 112 00:09:43.000 --> 00:09:49.000 And so we want to make sure that we can communicate that value to prospects ideally at scale. 113 00:09:49.000 --> 00:09:56.000 So the simplest, lowest leverage, so think about this thing shortening, the lowest leverage version of selling is selling one on one. 114 00:09:56.000 --> 00:10:01.000 You sell somebody in person, you sell them via chat, you're just selling and you're closing one customer at a time. 115 00:10:01.000 --> 00:10:12.000 Over time, you increase the leverage of sales by either you selling more people at once or getting through leadership, which I'm getting ahead of myself, getting other people to sell on your behalf. 116 00:10:13.000 --> 00:10:23.000 But in either situation, you gain more leverage on the amount of people that find out about your stuff and ideally shift their perception of it so that they want to buy it again and again and again. 117 00:10:23.000 --> 00:10:29.000 And when I talk about sell, I actually talk about everything that takes someone from completely unaware to giving you money. 118 00:10:29.000 --> 00:10:35.000 All right, so that's all of acquisition. So that's advertising, marketing, sales, branding, promotion and conversion as in getting the person to buy. 119 00:10:35.000 --> 00:10:42.000 And so the easiest way or the most important part of this is what I would call the call out, which is people noticing your ad. 120 00:10:42.000 --> 00:10:48.000 And when I say ad, I mean, if you reach out to somebody that's an advertisement, you let people know about your stuff, is the most important part. 121 00:10:48.000 --> 00:11:04.000 I love this quote by David Ogilvy. He says, after you've written your headline, you've spent 80 cents of your advertising dollar, which just goes to show that that first impression is the part that one I test the most and the one that will shift their perception the most, which is also part of something called framing. 122 00:11:04.000 --> 00:11:17.000 And so how you position, again, how people perceive the reason the intro of a video is so important, the reason the intro of an ad is so important, the reason the moment you introduce yourself, how you introduce yourself is so important is because it frames everything else that happens afterwards. 123 00:11:17.000 --> 00:11:28.000 And so let's imagine that you're at a cocktail party in a big ballroom, lots of people talking groups, loud music playing in the background, in all that noise, a single sound pushes through it all and you turn around. 124 00:11:28.000 --> 00:11:36.000 You want to know the sound, your name, you hear it, and instantly look for the source. And so a call out is whatever you do to get the attention of your audience. 125 00:11:36.000 --> 00:11:42.000 Call out to go from hyper-specific to get one person's attention, to nod at all specific to get everyone's attention. Let me explain. 126 00:11:42.000 --> 00:11:52.000 So if someone drops a tray of dishes in that ballroom, everyone looks. If a child yells mom, then all the moms look. If someone says your name, then only you look. But again, they all get attention. 127 00:11:52.000 --> 00:11:58.000 And so we want to make our call out specific enough to get the right people and brought enough to get as many of them as we can. 128 00:11:58.000 --> 00:12:04.000 And so with each of these skills, you will typically start narrow and go broader. Facebook when it started as a product was very narrow. 129 00:12:04.000 --> 00:12:09.000 And then it just started with college students and then it expanded to high school students and then it started going to adults. 130 00:12:09.000 --> 00:12:17.000 When you sell in the beginning, you're just going to advertise to a very small niche. As tiny as you can, most because you can't compete in the ocean. 131 00:12:17.000 --> 00:12:28.000 You're not a big enough fish yet, but you can win in the tiny pond, right, or maybe even a puddle. But then over time, as you get better and bigger, you can expand the breadth of the people that you choose to target. 132 00:12:28.000 --> 00:12:34.000 And so you will always convert a higher percentage, not absolute, but percentage of an audience by being more specific. 133 00:12:34.000 --> 00:12:41.000 And so the easiest way to figure out what your customers want to hear when you're advertising and selling to them is to simply ask them. 134 00:12:41.000 --> 00:12:48.000 And if you want to be a super advanced student, go look at user reviews of all your competitors and figure out the things they complain about. 135 00:12:48.000 --> 00:12:52.000 And then talk about those pain points and the things that you want to attract them with. 136 00:12:52.000 --> 00:13:03.000 Now, the point 1% know how to build things, then how to let people know about it and get them to give them money for it, the second core skill here, which then leads us to the third skill. 137 00:13:03.000 --> 00:13:09.000 Because once you're building and selling and building and selling, you're probably going to need help. And that enters into leading. 138 00:13:09.000 --> 00:13:17.000 So these are the social dynamics. The reason I think leading is arguably the most important skill, besides learning, is that it is a meta skill. 139 00:13:17.000 --> 00:13:29.000 It gains you access to everyone else's skills. At its most basic form, if you were the best leader in the entire world, you would be able to get the best builder and the best seller to come work with you and align with your overall objective. 140 00:13:30.000 --> 00:13:41.000 I consider building, selling and leading to be the tripod of business. You must have all three. They are the tripod of business. You must have all three. 141 00:13:41.000 --> 00:13:51.000 Now, you can be imbalanced and have a stool that looks a little bit weird. But if you don't have one of these legs, this thing's going to fall over. 142 00:13:51.000 --> 00:13:58.000 And so you must have all three. Now, the extent to which you have all three will dictate how much money you're able to make. 143 00:13:58.000 --> 00:14:07.000 So if you can only sell and you can't build and you can lead, then you'd have a bunch of people who are really good at selling something terrible. 144 00:14:07.000 --> 00:14:15.000 So this would be like the Wolf of Wall Street's business. So what he went to jail for. And so that is basically lying at scale, not good. 145 00:14:15.000 --> 00:14:25.000 If you just build and no one finds out about it and you're good at leading, for example, then you'll just have this thing that's sitting in your garage that you promise is amazing, but no one knows about it. 146 00:14:25.000 --> 00:14:33.000 And so if no one knows about it, no one can buy it. And on the third extreme, and this is why this one's a little bit more interesting, is that if you could lead. 147 00:14:33.000 --> 00:14:39.000 And somehow you found a bunch of people that no one in the organization knew how to sell or build. This is why this is a meta skill. 148 00:14:39.000 --> 00:14:47.000 Then we'll really nothing would happen because you'd have nothing to build and no one would find out about it. And you just have a lot of people that were somehow organized around doing nothing. 149 00:14:47.000 --> 00:14:54.000 And so these are the core things that actually generated the activity, the leadership aligns those activities in one direction. 150 00:14:54.000 --> 00:15:04.000 So fundamentally, every single time you're considering bringing someone into an organization. And this is what we're thinking about, like either you are the person getting brought into the organization or you're the person that owns the organization. 151 00:15:04.000 --> 00:15:15.000 But we're talking about the point one wealthiest percent of people. And this is how they think, which is that every new person needs to support either selling more people or making them worth more through making the product better. 152 00:15:16.000 --> 00:15:26.000 The sad truth of it is that every new hire is a guaranteed cost, but is not a guaranteed return. And so unless they are building or selling, they must support the activity of building or selling, or they are waste. 153 00:15:26.000 --> 00:15:39.000 And to give you a classic example that's been touted a lot is Steve Jobs, the late great Steve Jobs, was a very good leader. Now, a lot people say that he was tough, but they say that they did the best work of their lives when they worked with him. 154 00:15:39.000 --> 00:15:46.000 And so it's commonly stated that Steve Jobs didn't build the iPhone. He built the team that built the iPhone. 155 00:15:46.000 --> 00:15:55.000 And this is why it's such a high leverage skill. And this is why it's a skill that the point one percent, if you look at the top of the Forbes list, all have this. 156 00:15:55.000 --> 00:16:07.000 So that's fundamentally why it's the third bucket of the biggest skills that generate the most money. But if you're like, huh, is there any other variable that dictates how much the point one percent make? 157 00:16:07.000 --> 00:16:15.000 Well, I'm going to give you the advanced one, which is all of this is multiplied by risk, which is the risk that you're willing to take on. 158 00:16:15.000 --> 00:16:29.000 And so whether you're an employee of a company or you're an owner of a company, there is a risk that you take on for the building, selling and leading activities that you do that generate the economic activity that gives you the percentage of the production out there. 159 00:16:29.000 --> 00:16:35.000 If you're willing to take on more risk, this is a multiplier on all of these skills. 160 00:16:35.000 --> 00:16:43.000 So if Steve Jobs, and I'll give you Steve Jobs a perfect example, when Steve Jobs had the company when it originally went public, he owned 15% of the business. 161 00:16:43.000 --> 00:16:52.000 He ended up leaving for a period of time, starting Pixar, and then he came back like 10 years later. When he came back, he was gifted a much smaller percentage of the company. 162 00:16:52.000 --> 00:17:11.000 Now, here's where it's crazy. When he originally IPO'd Apple, he had 15%. If he had not sold those shares, that 15% today would be worth 465 billion, making him by far the richest man in the world had he lived to this point and kept his shares. 163 00:17:11.000 --> 00:17:21.000 And so the reason that he was never the richest man in the world is because when he sold his shares, he gave up a lot of his risk. He gave up a lot of his upside. 164 00:17:21.000 --> 00:17:40.000 Bill Gates to the same degree when he IPO'd had about 49% of Microsoft. Now, if Bill Gates had continued to double down on that risk rather than selling and diversifying, which is what he did, today Bill Gates would be worth $1.5 trillion. He would be more than a trillionaire. 165 00:17:40.000 --> 00:17:49.000 But because he chose to diversify, he decreased his risk, and so he got less on the asset that he owned, which was built through building selling and leading. 166 00:17:49.000 --> 00:18:07.000 And so we started with education at technology. Now, we zoomed in at the second layer of the individuals, what the actual 0.1% wealthiest people did. They zoom in on their skills of building products that people love, being able to communicate the value of that products and sell them on buying it and using it. 167 00:18:08.000 --> 00:18:19.000 And then leading the team of people that could help do that at scale over and over and over again. And if you're like, well, which one of these should I start with? Well, everyone starts on a different BSL path. 168 00:18:19.000 --> 00:18:28.000 Now, I personally started with selling because it's a chicken and egg issue. You have to have something to sell, but you have to have people to sell it to as well. 169 00:18:29.000 --> 00:18:35.000 At the very beginning, you must have something to sell. As soon as you have a basic amount of something to sell, then you must sell it. 170 00:18:35.000 --> 00:18:40.000 Once you do this well, then you will have to recruit people to help you out. So then you will learn leadership. 171 00:18:40.000 --> 00:18:47.000 And so this tricep will continue to expand as you get better and better and better at all three of the tripod skills. 172 00:18:47.000 --> 00:18:53.000 So if you're starting from scratch, you first have to figure out what to sell. Once you figure out what to sell, you need to learn how to sell it. 173 00:18:53.000 --> 00:19:00.000 No economic activity can occur without both of these things. You can't sell nothing and you can't build and not sell. 174 00:19:00.000 --> 00:19:05.000 A dollar must exchange for goods and services. So they have to know about it and you have to have something to exchange. 175 00:19:05.000 --> 00:19:14.000 And so obsessing over your logo and your branding and your website is neither of these things unless you're selling the websites. 176 00:19:14.000 --> 00:19:24.000 And so you want to just start on how do I get people's attention so that they can give me their contact information so that I can communicate with them and explain the value of the thing I have. 177 00:19:24.000 --> 00:19:36.000 And then what is required for me to deliver that thing I have? The first business I ever started, I just gave people my email and my phone number and then I emailed them personalized nutrition plans and workout plans. 178 00:19:36.000 --> 00:19:49.000 So I had no CRM, I had no website, I just did those two things. At the employee level, if you want to make more money, then if you kept your skills the same, you could simply try and take on more risk within the organization. 179 00:19:49.000 --> 00:19:55.000 Saying, hey, I will forego some guaranteed income to have the potential for upside. That would be taking on risk. 180 00:19:55.000 --> 00:20:12.000 If you are a business owner, at some point your business will get limited by either the quality of your product or the product offerings you have, your ability to sell them meaning you don't have enough people coming in the door or you have both of these okay but you can't seem to scale it because you need more people. 181 00:20:12.000 --> 00:20:21.000 And so being able to properly identify which of these things is the constraint will tell you where you need to reinvest your time to get more out of yourself. 182 00:20:21.000 --> 00:20:34.000 And then when you do that, you expand the lever and then more money shoots out. If this video is helping make things click for you, which is okay, I want to make the most money humanly possible. I want to model the point 1%. 183 00:20:34.000 --> 00:20:58.000 And I understand that I have to build, I have to sell, I have to lead and I multiply all of that by the amount of risk that I'm willing to take on. If you know somebody else in your organization or you want to share this with your employees, it would mean the world to me because I'm trying to make the world a better place through economic activity and I believe that fundamentally every economy in the world could be super developed if everyone had enough education and skills. 184 00:20:58.000 --> 00:21:14.000 So the first layer was global and we figured out education technology. Underneath of education technology, it's like where are we investing that education technology, technology around building, education around building, technology around selling, education around selling, technology around leadership, education around leadership. 185 00:21:14.000 --> 00:21:33.000 And so in each of those settings, if we invest in them, the lever expands and more money shoots out the other side. And so the final layer is environmental. And so BSL creates the money and then that money is the output that's the other side here. And so it's either wasted, stored or with a top point 1% to multiply. 186 00:21:33.000 --> 00:21:50.000 So how does build sell lead relate to education technology? Well, the educational components fairly straightforward. You develop the skills around each of these three. But what about technology? Well, if you can use technology in order to build more things faster, then you will make more money. 187 00:21:50.000 --> 00:22:07.000 If the thing that you build is technological and allows more people to use it, then you will make more money. If somebody builds a table, they will make less money than a developer who knows how to make an app that a million people can use because they're able to provide value at scale just with their own skill set. 188 00:22:07.000 --> 00:22:32.000 But it's the skill of using technology. So these things are very much interwoven with sales. Sure, you can sell one on one, but the leveraged way of doing it is using technology. If you can develop a personal brand and have trust with a larger audience, then you can sell one to many. If you run advertisements one to many, you're using the technology of the platform and media so that you can get more people's attention and then ultimately convert it from a leadership perspective. 189 00:22:32.000 --> 00:22:43.000 If you can track what your employees are doing, if you run project management systems, you can increase the output per employee by using technologies around leadership. 190 00:22:43.000 --> 00:22:58.000 So in each of these sessions, in each of these core pillars of value creation, you're going to have the education to use the technology to maximize your output per unit of time and ultimately the money that you make, which is what the .1% do. 191 00:22:58.000 --> 00:23:09.000 And so with the advent of things like co-pilot for coders, coders can actually rate code 10 times faster than they could before with that as our as our as our working model. 192 00:23:09.000 --> 00:23:18.000 Anybody who is not using technologies, always going to be at a disadvantage. And so if you want to be in the top .1%, it means you're competing with everyone and so you want to use as many advantages as you can. 193 00:23:18.000 --> 00:23:28.000 And on a personal note, I would say that I have been someone who's been more hesitant to use technology and I think that it has been a limiter to my success. 194 00:23:28.000 --> 00:23:35.000 It's something that I'm spending more and more time on of, okay, how can I incorporate more technology into the products and services that we build? 195 00:23:35.000 --> 00:23:42.000 How can I incorporate more technology into how we advertise and sell? How can I incorporate more technology into how we lead, recruit, manage people? 196 00:23:43.000 --> 00:23:53.000 Even on the recruiting side, it's like if we can have predictive analytics to figure out which candidates have higher likelihood of matching with the organization and being good long term productive employees, then that decrease so much waste for us. 197 00:23:53.000 --> 00:24:04.000 And again, it increases our outproport unit of time. And the coolest thing about education specifically, not necessarily technology, is that when you have these skills, they cannot be taken away, they can't be confiscated, they can't be stolen. 198 00:24:04.000 --> 00:24:15.000 And this is near and near to my heart because my family was, or that we are around in, but during the revolution, we left the country and all of our assets were seized. 199 00:24:15.000 --> 00:24:24.000 In the United States, this seems like a very crazy thing that you could lose everything overnight. But in other countries, this happens all the time. The government just says, oh, all that money is ours now, all that land is ours now, your house is actually our house now. 200 00:24:24.000 --> 00:24:35.000 But the thing is, is that the family members that I had, who had skills, and then were able to scatter all over the world, which my family is, they were able to start all over again and rebuild what they had lost. 201 00:24:35.000 --> 00:24:48.000 The ones who didn't have skills and only had the few assets they had struggled a lot and still due to this day. So BSL creates the money. And then that money is either wasted, so it goes off the map. 202 00:24:49.000 --> 00:25:02.000 It's stored, meaning it basically stays the same, or what the top 0.1% do is it's multiplied. And the way that they multiply it is either buy stuff or they lend. 203 00:25:02.000 --> 00:25:09.000 So you can only do two things with money. You can give it to people and then they give you a little bit more of it back in the form of debt. 204 00:25:09.000 --> 00:25:17.000 Or you buy stuff with it that either goes up in value, sometimes it can go down, but the hope is that it goes up in value and it produces an output. 205 00:25:17.000 --> 00:25:24.000 So an example of the storage would be I buy a brick of gold. A brick of gold does nothing and it's speculative in that. 206 00:25:24.000 --> 00:25:34.000 We hope that somebody else in the future will pay us more for that brick of gold. And no matter what currency I have, I can trade gold for euros, I can trade gold for Bitcoin, I can trade gold for US dollars. 207 00:25:34.000 --> 00:25:39.000 It doesn't matter, it's a store of value. And as far as we've had in human history, people still value gold. 208 00:25:39.000 --> 00:25:48.000 Now, you could take all of the gold in the world, and this is a Warren Buffett example. You could take all the gold in the world and put it in the middle of a baseball field. 209 00:25:48.000 --> 00:25:57.000 And it would be about as tall as the stadium and be a big round globe. It doesn't matter what you do to that big ball of gold, 100 years from now, it'll still be a big ball of gold. 210 00:25:58.000 --> 00:26:08.000 But if you took that same amount of economic value and you invested it through buying, you could buy all the farmland of the United States and about 13 Exxonmobiles. 211 00:26:08.000 --> 00:26:17.000 And so the amount of money that those farms and Exxonmobile would spit out every single year over that 100 years would be at least greater than zero. 212 00:26:17.000 --> 00:26:31.000 And so in that way, this is how this loop of wealth gets spun. And so when you are buying or lending, you're either lending to people who are doing BSL, and the risk that you incur is that they don't actually succeed and you never get your money back. 213 00:26:31.000 --> 00:26:40.000 You're compensated for the risk based on the interest that you charge for them. So you basically sell them money for more money later. 214 00:26:41.000 --> 00:26:48.000 With buying the assets, what you're doing is you're buying a percentage or the entirety of their build sell lead. 215 00:26:48.000 --> 00:26:59.000 Now, if you recall earlier, I said this is all multiplied by risk. And so as a result, you get to have an outsized percentage of what other people are doing to build sell and lead. 216 00:26:59.000 --> 00:27:07.000 And then this gives you even more money over time. In understanding this, this is why I built acquisition.com the way I did. 217 00:27:07.000 --> 00:27:23.000 Which is we have these companies that generate money and then that money either goes back into the company to make it a bigger company or it goes into buying another company that generates money. 218 00:27:23.000 --> 00:27:38.000 But then this process repeats itself over and over and over again and it compounds unto itself. So no matter how big you get, you can keep reinvesting all of that money and then it's a percentage based growth. 219 00:27:38.000 --> 00:27:44.000 So whether it's a million dollars growing by 10% or a billion dollars growing by 10%, you're still growing 10%. 220 00:27:44.000 --> 00:27:50.000 But the absolute amount of what that 10% is is $100,000 versus $100 million. 221 00:27:50.000 --> 00:28:04.000 And so if you're the individual, you can take this money and you can invest it in people who are going to do build sell lead in your company where you take on more risk, which means that you get outsized returns on the investment in the people that's within an organization. 222 00:28:04.000 --> 00:28:13.000 You can buy a slice of an organization of all those people and not have to necessarily do anything. That's what the public markets are more or less all about or investment funds do. 223 00:28:13.000 --> 00:28:22.000 Or at the most micro level, you could just take that money and invest it in yourself by buying skills. And what does buying skills even mean? 224 00:28:22.000 --> 00:28:29.000 It means you pay someone to give you feedback on an activity such that you can replicate the outcome that they can already do. 225 00:28:29.000 --> 00:28:42.000 Fundamentally, that's what buying skills is. And so you find someone who has the skill that you want and then you offer them money so that you can continue to do the activity in front of them until eventually you replicate the outcome that they have. 226 00:28:42.000 --> 00:28:52.000 Because they have taught you the variables that they use to recreate that skill. And once you can do it without them and get the same outcome, then you have learned. 227 00:28:52.000 --> 00:29:03.000 And so if you're thinking about this in terms of levels, you can have a piece of a company. You can have people that you hire in a company or you can put that money into yourself. 228 00:29:03.000 --> 00:29:13.000 But all three of these are going to relate to BSL, build, sell, bleed. And to what degree is the risk that you take on? 229 00:29:13.000 --> 00:29:19.000 So buying a piece of a company would be probably higher risk. A little bit less risk would be bringing somebody in and paying them. 230 00:29:19.000 --> 00:29:24.000 The lowest risk is going to be investing in yourself. But here's where it gets kind of interesting. 231 00:29:24.000 --> 00:29:31.000 Is that when you invest in yourself, this can also give you all of the skills that you need to do all of these things better. 232 00:29:31.000 --> 00:29:36.000 Which is why, and I will continue to hit this until the day I die, you will always be the best investment. 233 00:29:36.000 --> 00:29:47.000 And so you want to max out this bucket to the greatest degree possible. And the limitation that you will have when you do reinvest in yourself is the time it takes to learn the skills and how many skills you can learn. 234 00:29:47.000 --> 00:29:56.000 But at any given time, you should always be spending as much money as you can to buy the most valuable skill that is constraining your growth. 235 00:29:56.000 --> 00:30:03.000 And so if you look at build, you look at sell, you look at lead, you figure out the one that's limiting you the most. And you put as much cash into that thing as you can. 236 00:30:03.000 --> 00:30:09.000 You pay every expert you possibly know or don't know or need to know in order to get what you need to move forward. 237 00:30:09.000 --> 00:30:21.000 If I could isolate one decision that has changed my life forever was the willingness to invest my money in the potential to learn a skill from someone who is further ahead than me. 238 00:30:21.000 --> 00:30:31.000 And I will probably do that till the day I die because I have gotten better returns on that money than anything else in the world. 239 00:30:31.000 --> 00:30:40.000 So building and selling that feels relatively straightforward. You learn how to code, you learn how to make a service or you learn how to advertise, you learn how to sell, but how do you learn how to lead? 240 00:30:40.000 --> 00:30:50.000 Well, I think an important part of this is learning how to orient behavior in a specific direction that yields the highest returns. 241 00:30:50.000 --> 00:30:55.000 And when I say orient behavior, I mean the behavior of the people who work for you or work alongside you. 242 00:30:55.000 --> 00:31:02.000 Strongest way that I have been able to get better as a leader is by eliminating wasted communication. 243 00:31:02.000 --> 00:31:12.000 And so what that means is both internally amongst themselves but also for me to them. And so that means that I think the vast majority of people are very ineffective communicators. 244 00:31:12.000 --> 00:31:17.000 Is that they say many words and most of the times they don't even know what they're saying. And I'll give you an example. 245 00:31:17.000 --> 00:31:31.000 So I had a director a couple days ago who came up to me. They wanted to reconcile this director was over a department and they said, hey, one of the people my team has basically complained that somebody who's a direct support of mine is doing this issue. 246 00:31:31.000 --> 00:31:44.000 And so I said and I'll tell you the words that that they said they said, I'm here because I want to bridge the gap between this department and this department and I want to support the growth and the overall initiatives of the business. 247 00:31:44.000 --> 00:31:52.000 And all of those sound like wonderful corporate words, but I looked at the person and I said, what do you want to have happened? 248 00:31:52.000 --> 00:32:01.000 And they kind of looked at me differently. I said, what behavior are we currently doing that you would like us to stop doing or something that we're currently not doing that you would like us to start doing. 249 00:32:01.000 --> 00:32:13.000 And so what's interesting is that when that question was posed to the individual, they actually didn't have the answer. And so this is very common is that someone will know that there is a problem but they will not come with an intended change in behavior. 250 00:32:13.000 --> 00:32:27.000 And so you have to take that extra next step and say, okay, there's a problem. What potential changes in behavior on my team or someone else's would need to occur in order for us to decrease the likelihood that this problem happens again in the future. 251 00:32:27.000 --> 00:32:34.000 And so when you frame things from what would I like to occur? What would I like to have happened as a consequence of this conversation? 252 00:32:34.000 --> 00:32:44.000 You'll find that many conversations don't need to be had to begin with because most people don't even define that. And so they basically just make face noise at each other for 30 minutes and call it a meeting. But no one actually changes what they do. 253 00:32:44.000 --> 00:32:52.000 And so if you don't change what you do as a result of communication, it was wasted. It literally took effort from both people, time from both people, and then no change occurred. 254 00:32:52.000 --> 00:32:59.000 And believe it or not, this is the vast majority of people in the vast majority of companies, which is why the biggest threat to big organizations is waste. 255 00:33:00.000 --> 00:33:10.000 And so if you want to lead, you need to learn how to communicate clearly what you want someone to do, what you want them to stop doing, or what them to do instead. 256 00:33:10.000 --> 00:33:20.000 And by defining it in those terms, it cuts away a lot of the ambiguity. I had a meeting not that long ago with a different person in the company. 257 00:33:20.000 --> 00:33:30.000 And I said, I don't understand what you do. Now most people you could imagine would be terrified by this question. But I said, I'm not intending to intimidate you. The point is that I actually don't understand and I'm seeking clarity. 258 00:33:30.000 --> 00:33:42.000 One of the first things the individual brought up is I do a lot of this research so that I can better understand x, y, and z. And I said, what does that change about what we do? And the honest answer was it hadn't changed anything about what we do. 259 00:33:42.000 --> 00:33:50.000 So then if all of this time that you spend researching doesn't change our behavior, you don't need to do it. It is a waste of time. 260 00:33:50.000 --> 00:34:00.000 And so just like I could measure the temperature in the rooms when I record them and I could measure the temperature of every room that I walk in throughout the day, just because I can measure it doesn't mean it's going to change anything. 261 00:34:00.000 --> 00:34:11.000 And so many people spend a lot of time trying to quote understand, but the only reason the only way you will get a return on that understanding is by changing what you do. 262 00:34:11.000 --> 00:34:19.000 And so finally after several kind of peeling back the layers, I was able to say, you do this. This is what you do. You click these buttons. You do this stuff. 263 00:34:19.000 --> 00:34:28.000 Okay. And then all of a sudden the scope of what this person's role was went from this to this. And I was like, these are the only things that drive economic activity. 264 00:34:28.000 --> 00:34:34.000 So how do we get you to do more of these things? Do them faster? Do them better? That is the question that we need to answer together. 265 00:34:34.000 --> 00:34:48.000 And by doing this, it just melts away a lot of the pretense, a lot of the corporate jargon. And so if you get into a conversation with someone and you don't know what they're saying, don't assume that you're dumb. Assume that no one knows what's going on. 266 00:34:48.000 --> 00:34:55.000 And I think that if you seek clarity and you seek truth, then you will ultimately find the best outcomes rather than seeking agreement. 267 00:34:55.000 --> 00:35:04.000 And if you enjoyed this video on what the 0.1% wealthiest people invest their time and money into, then you're going to love the video that I made on leverage. 268 00:35:04.000 --> 00:35:11.000 It's the number one video on my channel. It's basically how to go through a wealth worth of time, who's one of the first present ages I made before I became public. 269 00:35:11.000 --> 00:35:18.000 Basically a consolidation of many of the thoughts that I had that created the generational wealth that my wife and I have been able to experience. I hope you enjoy it.