https://www.youtube.com/watch?v=ZfaZYFx89UU

1 00:00:00.000 --\> 00:01:00.000 when i was 27 years old i just sold all
of my gyms and put all of my money into a new venture and lost all of it
and so i had a thousand and thirty six dollars when i was 27 years old
two years later i had over 17 million dollars in my bank account it was
because i accidentally stumbled into one of the four ways that fortunes
are made all right it's one of the key things that we have to understand
and we're trying to break down today is one the difference between money
and wealth two the four types of leverage that exist and then within
those types of leverage permission and permissionless leverage and how
you can harness those things in your business so that you can make them
into things that can build fortunes so the first thing is understanding
what is money right money is simply the way that we transfer wealth from
one person to another all right that's all it is it just functions as a
medium of transfer it's actually not in it of itself valuable it's
valuable in so far as it allows us to acquire assets which gets us to
the second column which is wealth this is what you want and that's why
there's a difference between rich people and wealthy people wealth is
about assets that earn while you sleep meaning that you don't have to

2 00:01:00.000 --\> 00:02:00.000 trade any time to have these assets
make you money and so one of the things that i think i got from taylor
walsh was um poor people do the wrong things rich people do the right
things wealthy people own the right things and so as you're
transitioning through life you have to think about am i am i someone
who's doing the right thing or am i somebody trying to own the right
things and so uh for example lawyers doctors accountants they can never
really make crazy money they can't they cannot get wealthy super wealthy
unless they transition from being a practitioner or they're training
time for dollars into owning an entire practice of lots of doctors
working for them which means they then they have created an asset which
then generates wealth while they sleep right it generates money while
they sleep which is what makes it into wealth all right and so if you
look over the last hundreds of years we're talking 500 000 plus years
fortunes have been made in four ways in the beginning so this is then
the first way was through labor all right and the reason labor is the
first way of gaining leverage is because there was no other

3 00:02:00.000 --\> 00:03:00.000 way of getting it that's why the kings
and queens had hundreds and hundreds of servants that's how the pyramids
were built right that's how rockefeller was able to build his oil across
the united states right was through labor right and so because of that
he didn't have to trade his own time for dollars he was able to buy
other people's time right now labor is the hardest type of leverage to
employ it'll impress your parents but it won't actually it's one of the
hardest things to employ anybody who knows who has 50 100 500 plus
employees understands that it's one of the hardest things to employ but
it is one of the things one of the four ways of gaining leverage and one
of the key tenets of these first two is that these are permission based
leverage you need other people's permission you need to you need to
appease others in order to use this type of leverage the second type of
leverage which is also still permission based is capital all right
that's money specifically other people's money and so just an example of
what capital is is let's say i want to buy something um that doubles in
value uh over five years all

4 00:03:00.000 --\> 00:04:00.000 right and let's say i get somebody to
give me a hundred percent of the money to buy this thing right and so
after five years i have to repay the person back but that thing doubled
in value right so let's say it was a hundred dollars when i bought it
from someone else's money and then it's 200 after five years well i have
to pay back the hundred dollars plus some interest but then everything
else i get to keep and so that is a type of capital where if you think
about how much my returns were they were basically infinite because i
didn't put any money down right and that is why capital has been the
second main way that fortunes were built this is where the the newer
billionaires newer they're still old now billionaires were created this
is the buffets this is the monger this is the carl icons of the world
who made their wealth through financing and using other people's money
as leverage both of these things you have to ask for permission people
have to give you the money they have to you have to take that money
under terms under which you're going to give it back right now the new
way of creating wealth there are two of them and they are permission
permissionless

5 00:04:00.000 --\> 00:05:00.000 all right so here you don't need any
permission in order to use these things and that is what the new
fortunes are being made of the first is through code all right so this
is all the big software companies that you see the tech giants that
exist they use code for permissionless leverage because with code it
costs zero dollars to have an additional person consume or get utility
from what the code does right and so if you have a piece of software
that's a crm adding a hundred users or adding a thousand users costs you
no additional amount for that one more user all right and so that is why
code is one of the things that's created fortunes in the present day now
if you're like well alex i don't know how to write code well then let me
tell you the fourth way which is the one that i accidentally stumbled in
when i switched my business from a service-based business which was just
selling other people's time to a media business which was number four
which is media now if you think about the tycoons that exist out there
zuckerberg

6 00:05:00.000 --\> 00:06:00.000 he's media he sells eyeballs he sells
impressions google sells impressions they sell media right bloomberg he
used old school media so he was the news he was radio all that kind of
stuff all of that was in his network and the beautiful thing about that
is that when you have media you have a captured amount of eyeballs you
can continually sell those eyeballs and as they grow you just continue
to sell them and it costs no incremental amount and so the gross margin
in this are basically 100 percent there's no added cost and so you've
heard me talk about having good margins in a business these are the ways
that you get the exceptional world class margins which is what builds
fortunes right and so for me when i transitioned my company from doing a
done-for-you service where i used to fly out as a sales team and fill up
locations of brick and mortar facilities to licensing media i was able
to sell at zero incremental cost because of that my margins went through
the roof and that was what enabled me to acquire money which i was then
able to transfer into wealth all right now if you're thinking right now
like well there's some places like you know is google code or media the
answer is

7 00:06:00.000 --\> 00:07:00.000 yes it's both and so if you can employ
multiple types of leverage then you juice the returns even more and so
that's why all the super wealth that is being created a lot of times
it's using two or three of these types of things they're taking other
people's money to get other people's labor to write the code that then
they sell as media once they acquire all of the eyeballs and that's the
winner takes all games that are existing right now but right now if
you're like well i don't know how to write code well that's okay i don't
either and so that's where we take things like this youtube channel this
is why joe joe rogan can sell his podcast for 100 million dollars you
can sell ad space because he owns media and so right now this is where
you can create blogs for no money you can create youtube videos for no
money you can anything you can make you can make podcasts for no money
all of these things you can do as media to distribute at zero
incremental cost and that is how fortunes are built and over time as you
can see it gets i want to say easier to build fortunes which is why now
is the best time to be alive out of any time can you imagine a time
where you there weren't just

8 00:07:00.000 --\> 00:08:00.000 fun you couldn't just raise capital you
couldn't just have accredited investors that you could call up these
things didn't exist it was just the time of labor it was the time of
pyramids right but as time has progressed the ways to build fortunes
have increased and the level of permission that's required has decreased
right if you are the best coder in the world you can build something
that no one else can build if you are the absolute best at providing
value at capturing attention then you can do this and you can create
your fortune with no one's permission and that's the beauty of being
alive today and so if you're looking about your own business and you're
thinking about how how can i make my business more valuable try and tap
into one of these four types of leverage because if you do that i can
guarantee you will make more money and you'll have a chance at building
one of these super fortunes and i was very fortunate to have stumbled
into this fourth one and now i look for it deliberately so hope you
found that valuable are as valuable as as it was for me when i started
thinking about this stuff and i'll see in the next video
