Getting "Rich" In Today's Market & 0-110k YouTube Followers
Also read this and win an iPad - thanks Noah. ;)
Rich has become a dirty word.
Full of images of fast cars, loose morals and internet schemes to sell ya. And yet, most people will spend 90,000 hours of their life for one reason… $. The goal today is not to get rich (that’s just a sexy title), it’s to grow, maintain and accumulate real wealth.
The Goal is to protect your wealth more than anything.
It’s to become a sovereign individual.
Wealth is having assets that grow while you sleep. It is having divorced your time from your earnings. It is no longer renting yourself out for a paycheck.
The accumulation of wealth is really about one thing, leverage. Some people have it, a majority of humans do not. Naval Ravikant spoke about this on a most recent tweet storm and I think it merits flushing out. Many think of leverage as the financially aggressive type… when you borrow on your money and juice up your investments by adding debt onto it.
That my friends is just one type.
One of my favorite quotes of all time is from Archimedes:
Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.
This is the simple art of leverage.
Tools = less effort for a higher return.
Through history there have been four types of leverage:
Labor + Capital + Code + Audience
These have evolve, morphed and of late become available to the masses. The problem is most people use them poorly. They spend all their time laboring and so little time leveraging. We’re going to change that. Take a walk with me…
Labor = trading your hours for payment. This is how slavery and fiefdoms evolved, it’s the most historic form of leverage and has echoes today when you hear managers or CEO’s tout the number of employees they have. The dirty secret? This is the MOST EXPENSIVE, and worst form of leverage. Both for employees and owners. We humans are fickle beasts. For instance, have too many employees and you can have a mutiny (just look at Spotify with Joe Rogan, or Facebook with its employees). Or take a gander at the highest paid companies in the world. They’re largely in Silicon Valley and the median pay for employees from Amazon to Apple and beyond is $140k. That’s a lot of money, but wealthy it won’t make you.
Instead of labor as the engines of your profits. You want high margin, low people businesses.
Example: in finance I know guys who manage billions with 30 people or less. High margin + low people = greater profits. As you look at some of the top CEO’s earnings in the world, what do you see?
KKR Founders Earned: $203MM w/ 1,184 employees
Blackstone CEO $69M w/ 2,600 employees
Facebook CEO $23M w/ 52,000 employees
Walmart CEO $23M w/ 2.2 million employees
They key is divorcing your output (results) from your input (your time). Then divorcing your profits from your people. After all which business do you want to own on a purely CEO comp perspective?
This is the second stage of leverage. Capital (aka cash) came with the advent of banking in the 1790’s. Look up America’s richest individuals. They were all created right after capital become a lever point. Banks popped up, billionaires sprung out.
John D. Rockefeller (1839-1937) Wealth: 1.53% of the U.S. economy.* Oil.
Cornelia Vanderbilt (1794-1877) Wealth: 1.15% of economy. Railroads.
John Jacob Astor (1763-1848) Wealth: 0.93% of economy. Fur & Real Estate.
Andrew Carnegie (1835-1919) Wealth: 0.60% of economy. Steel & Railroads,
They ran businesses that required massive capex ($$$ to run) and the banks gave them the leverage to do so. The problem with capital, it has to be given to you. Labor, it has to be inspired and given to you. Both require permission. You can’t just create it. Code… well that’s a different story.
The next grouping of billionaires. From whence did the sweat-shirted, be-sneakered clan come? Oh, from the code.
If you don’t want to manage a bunch of opinionated hominoids, why not instead create an army of robots? Robots in the form of code online. Yup, that's leverage. In fact it may be the most efficient kind. Which is why the world’s richest used to be those with labor, then those with capital, now those with code. What’s next? Maybe a mingling of the two…
Alas, I am allergic to technology. Maybe you are too. I can’t go compete with old Billy up there and create a metaverse.
The secret: if you can’t code, create.
Your unfair advantage to wealth creation is in using the power of the people in your audience to create leverage. They become a force multiplier for your content. I call it your personal flywheel. This is how Joe Rogan maybe 9 figures with Spotify, how Kylie became the youngest Billionaire and how a bunch of people you’ve never even heard of make millions or hundreds of millions.
So let’s break down how you can earn online, with an audience and no coding ability. Shall we?
Leverage in Media: Eyeballs for Commas
How Noah Kagan Hit 110k YouTube Subs in 9 Months
Noah gave me a shout out last week and it got me thinking about his business. See Noah was early at Facebook, Mint, built a couple 7-8 figure businesses and most recently went from a few buds on YouTube to, 110k. He’s what I call a rich lifer, meaning drop him into just about any lifetime, and he’d figure out how to find wealth and freedom. That is rare, when I find those people, I learn and mercilessly mimic what is working for them. Why do 10,000 hours when you can leverage theirs? See that word again.
So I went to dissect what he’s done, he said go for it. And to boot, he’s giving away an IPAD to one Contrarian Thinker. Just comment Contrarian Thinking on this video below and he’ll pick one of you good looking, big brainy humans for the win.
Maybe even more valuable than the prize is they’ll contact you directly… then you decide what to do with that connect. Wink.
I’d also recommend watching the vid, he took 48 hours (one weekend) and shows you how he’d build a million dollar business. No unfair advantages, using no capital just the internet and his bald 😉 but very clever cranium.
0 Followers to 110k in 9 Months
I’ve been asking myself recently before starting anything… if you CAN, ask yourself first do I WANT to.
Media and code combined may be the most powerful form of leverage today.
7 Tips from Noah on Going from 0 to 100..k
#1 Don’t Waste Time
I called for advice on growing CT. Instead of just taking that call, he turned that call into a podcast. We talk, I learn, we both grow.
#2 Creates Once and Repackages
He liked a couple quotes I said during our chat, he turned those into tweets, and also we decided to do a collab on the same call. So one engagement turns into 5-10 pieces of contenr.
#3 Makes Things Stupid Simple
I tried to make this giveaway about creating something custom for you all, his right hand Mitchell said, “No, this works. We keep it simple and replicable.” Smart. I say yes too often and create extra work for myself. Do what works, don’t chase shiny objects.
#4 He’s a Master Growth Hacker:
He posted this tweet “$1 if you subscribe to his YT,” sent it to his mailing list and across his social. Then the next day my venmo was BLOWN UP with Noah venmoing people in the notifications tab. I didn’t even ask for $1 but subscribed because it was so zany and in my face. Brilliant.
Tools are leverage. Here’s the tools he uses to supercharge his growth. I particularly like the one on collaborations.
The Small Things Matter - One video probably isn’t going to rocket you into Joe Rogan status. It’s small changes over time. So tweak your main video, titles, thumbnails and descriptions, and keep iterating.
3. The Cross Promote Game - No faster way to grow than to borrow someone else’s audience. He talks about checking your top subscribers (aka peeps who subscribe to you and have big audiences).
Hit them up (use about page to find their email) for collaboration and cross-promo.
“Hey, I can create a video about x which based on your top videos your audience will like. Can you do the same for my channel? Win-win. Yay!”
So the question becomes;
Do you have leverage or are you someone’s leverage?
Choose the former and your life will never be the same.
Question everything, and do more - talk less,
The 9 Day $9 Challenge: Becoming A Dealmaker
Shhh…. this is just for Contrarians. Our new 9 day challenge launches Jan 25th but you all get first time access. Want to learn how to do M&A? How to become a dealmaker… well here you go!