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Business Models & Business Markets That Make Millions — Transcript

by Myron Golden · 3,776 words · 553 segments · language en · Watch on YouTube

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0:00On this video, I'm going to share with
0:03you two of the most important factors
0:06that are absolutely essential if you're
0:09serious, not just curious, about
0:10becoming a millionaire. I'm going to
0:13share with you the business models and
0:16the business markets that make
0:18millionaires, as well as the business
0:20models and the business markets that
0:22don't. Because all markets are not
0:25created equally, and all business models
0:27are not created equally. And if you pick
0:29the wrong model andor the wrong market,
0:34you are going to engage in a struggle
0:36fest the likes of which you will not be
0:38very happy about. So what are these
0:41business model? I'm going to write them
0:42on the board just so just so like you
0:45can follow my thinking. Hopefully I'll
0:48be able to follow my thinking. So, so as
0:51we're as we're looking at as we're
0:53looking at um markets and models, I'm
0:57going to cover the business markets
0:59first because I I think one of the
1:01biggest mistakes people make when they
1:03start a business is they start their
1:04business in here. This is something I
1:06know how to do, so this is the business
1:07I'm going to start. This is something I
1:08love, so this is the business I'm going
1:10to start. This is something I've always
1:11wanted to do, so this is the business
1:12I'm going to start. instead of starting
1:14your business out there. If you start
1:16your business in here, I'm there's a
1:1950/50 chance at best that you'll strike
1:23gold. If you say, "Well, this is just
1:26something I know how to do." Right? But
1:27if that's something you know how to do
1:28is not something that solves a problem
1:29for other people, then it doesn't matter
1:31that that's all you know how to do. Um,
1:34people think that wealth is a lot of
1:35money. I believe that wealth is your
1:38your and my ability, our ability to
1:42create value for someone other than
1:44ourselves. I want you to think about
1:45that. Like any anybody who's wealthy,
1:48any business that's produced a lot of
1:50wealth, they've done it because they
1:51they've been able to create value for a
1:55large number of people other than
1:56themselves. And the because you're the
1:59one starting the business and you're
2:00starting the business because you want
2:01to make more money. Unfortunately, when
2:03you start the business, the person
2:04you're thinking about is you. And then
2:06when you're creating stuff, you're
2:07thinking about you. And then when you go
2:08talk to the people about the stuff you
2:09created, you're thinking about you. And
2:11therefore, you don't have the ability to
2:12create wealth because you created all
2:14solutions for yourself and none for
2:15anybody else. And so, you're hoping that
2:17you you you'll create wealth by going
2:19out and using the market to solve your
2:22problems. It just doesn't work that way.
2:23That's like that's like unplugging
2:25something, unplugging a lamp to make the
2:28light turn on. It doesn't work. It's
2:29backwards. And so, so if you're serious
2:32about creating wealth, you have to pick
2:34the right market. Now, there are there
2:35are three different markets we're going
2:36to talk about. Um, I'm going to do it
2:39like this, and I'm going to do it like
2:42this, and I'm going to do it like that.
2:45And so, the first market is the worst
2:47market. And this is the market that a
2:49lot of people when they get started in,
2:51even if they don't get started in this
2:52market, they think about whatever market
2:54they got started in from this
2:55perspective. And it cost you a fortune.
2:57And that is a
3:02commodity market. Now, what's a
3:04commodity market? A commodity market is
3:07a market where the product only
3:10has
3:12intrinsic
3:14value. What is intrinsic value?
3:17Intrinsic value means it's utilitarian
3:20value. Um, it's it's like a box of
3:25nails. It's like a box of screws. It's
3:28like a um a broom, a dustpan, a mop,
3:35right? The they just the the value is
3:38that you can use this thing to do that
3:40thing, right? If you go into the
3:43commodity market, they only have an an
3:45intrinsic or utilitarian value. Then the
3:49other things about that is because it
3:50only has an intrinsic value, you can
3:53only you can only be competitive in the
3:56marketplace via
3:58price, right? And so what happens is
4:02let's say you sell nails and your nails
4:06that you sell in your hardware store are
4:10are $5 a
4:12box. So, you sell your nails for $5, but
4:16your competitor has a hardware store
4:17down the street across the street. He
4:19walks past your window. He sees your
4:20nails are $5. So, he sells So, these are
4:23your
4:24nails. And then your competitor sells
4:27his goes to his his were $510. He goes
4:31and he sells his nails. Now, he lowers
4:33his price to $4.90.
4:39And then you see his nails on your way
4:42to somewhere else. And then you lower
4:44your nails to
4:49$4.80. And then he lowers his to 47. He
4:53lowers his
4:55uh
4:56$4.80. And then he lowers his to470. And
5:01so what
5:02happens is you get in a
5:07race with price. You get in a race to
5:10the bottom for the person who can have
5:12the lowest price. There is no
5:14competitive advantage whatsoever to
5:16being the second lowest
5:19price. There's no ad there's no
5:22competitive advantage. And so if you
5:24win, you lose. And if you lose, you
5:26lose. Why? Because you chose the wrong
5:28race to be in. you're in a commodity
5:30market because when you are in a
5:32commodity market, your competitor sets
5:35your price.
5:38Unless you figure out how to make a
5:40self-driving nail where all you have to
5:42do is put it on a spot and it drives
5:44itself, you're probably not going to
5:45outpay. They're just going to people are
5:47going to buy nails from the people the
5:49businesses that are the closest to them
5:51that have a reasonable price. So, we
5:54don't want to build our business based
5:55on a commodity market. Then we have we
5:59have mass
6:02markets and some mass markets products
6:04are um they have an intuitive value but
6:08the most important thing about mass
6:10market products is they are priced based
6:13on cost of goods. How much how much did
6:17it cost me to make it? So, this is why I
6:21don't want to just sell a product that's
6:25mass marketed. Like, like if if I were
6:28going to sell a mass market product, I
6:29wouldn't sell just a general mass market
6:31product. Let's say I'm going to sell
6:32cars. I wouldn't just sell cars because
6:35a car is a car is a car is a car. If I'm
6:36going to sell houses, I wouldn't just
6:38sell houses because a house is a house,
6:39a house is a house. I would have to have
6:41something other than the intrinsic value
6:45and the cost of goods. So what they do
6:47is they say, "Okay, it cost me x amount
6:49of dollars to make this. I'm going to
6:50mark it up 15%. I'm going to mark it up
6:5230% and then I'm going to go to the
6:54marketplace with that as the price." So
6:56if that's the way you build your
6:58business, so you're you're stuck like
7:01Chuck in a pickup truck because now the
7:04the people who sell you the raw
7:07materials to make your products
7:09determine your
7:11price. Okay, let me ask you a question.
7:13If you started a
7:15business, if you started a business and
7:18you go out and you borrow money to start
7:20that business and then you you you you
7:22hire people, who took the risk to start
7:25that business? Everybody say, "I did." I
7:27did. That's right. You did. So, you took
7:29the risk to start that business, but
7:31somebody else set your prices. How does
7:32that make sense?
7:35It doesn't not only does it not make
7:38sense, it doesn't make any sense at all.
7:40So there and there's there's like what
7:43can you do to enhance this? Well, you
7:46can do some things in mass market to to
7:49enhance the the price, but not by not by
7:52a significant enough margin. So
7:55something as essential as food, right?
7:57Food's fairly essential, right? Do you
8:00know what the margins on grocery stores
8:01are? Small. How small is small? 13%.
8:06No%. No, not 5%. Not 10%. like two to
8:103%. They make two to three cents on
8:12every
8:13dollar for the food that they
8:16sell. Sell something. It's it's
8:19mind-blowing. So cost of good. This is
8:21not fun. This is this is the both of
8:24these are stress and headache
8:27city. This is the only arena in which I
8:29want to play. This is the only market in
8:31which I want to play. PVMs premium value
8:34market. What is a premium value market?
8:35A premium value market. Now the price is
8:38set by the
8:41perceived
8:43perceived
8:46value and the intrinsic value and the
8:49cost of goods doesn't even come into
8:50play. It doesn't matter. So it's like
8:53it's like my
8:57book. All right, Kenan, edit this part.
8:59Edit that part out. Okay, cool. It's
9:02like my book from Bossmos. This is a
9:04paperback book. It has 172 pages. If I
9:07were in the commodity market and I was
9:10just selling a book, I might be able to
9:12get away with selling this for
9:14$16.95, right? Why? Because that's how
9:17much paperback books sell for like at
9:19the most, right? If if I were in um the
9:24mass market, I it cost me about $5.
9:26Again, I might be able to sell it for
9:28$16.95 because of how much it cost me to
9:30make. Actually, it cost me about $3 to
9:32make. So, or I could sell it or or how
9:36how um how much people in the market
9:38sell paperback books for. You go to
9:40Barnes & Noble, you're not going to find
9:41one. If you do, I'll be shocked. 172page
9:45paperback book for um for the amount of
9:48money. You won't find one that I sell
9:50this book
9:51for. You won't even come close. Right.
9:54So, this book sells for
9:56$30 plus shipping. And the shipping is
9:59$9.99 domestically and it's $25
10:03internationally. So somebody literally
10:05who lives overseas when they buy this
10:06book, they pay $55 to get this book.
10:10Why? Because this book doesn't fit here
10:12and it doesn't fit here. It fits there.
10:14It's a premium value.
10:17Like it's a premium value offer for a
10:20book. So in in book in in on the
10:23internet when people sell books, they
10:25have this concept. I you you've you've
10:28probably bought books this way, but you
10:29didn't know it was like this is a
10:31marketing strategy. It's called free
10:33free plus shipping offer. Okay, has
10:36anybody not heard of free plus shipping
10:37offer? Okay, all of you have heard of
10:39it. Okay, so you give the book away for
10:41free and you only charge shipping. But
10:43then as soon as they say, I'll take the
10:45book and pay for the shipping, you offer
10:46them something else that enhances the
10:48book experience. Then you offer them
10:50something else that enhances that
10:51experience. then and by the time you get
10:52done, you started out paying $7.95 for
10:54shipping and handling, but by the time
10:55you check out, you got $125 in your
10:57cart. That is a viable strategy. It's
11:00just not the one I chose to use. And
11:03because the and the reason I didn't
11:05choose it is because I don't like
11:07building businesses based on analogy. I
11:09like building businesses based on first
11:12principles. And so the first question
11:15the to me the first question when it
11:16comes to first principles about anything
11:18is what is the objective right?
11:22And as I shared with y'all this morning
11:25the most important thing you can do with
11:28regard to selling anything is to build a
11:33personal brand. Well, what's a brand? A
11:35brand is a name that reminds you of a
11:38story.
11:39So, what is the story people tell
11:42themselves when they hear your name?
11:45That's the question, right? That's the
11:46question that that we that we want to
11:49have in our mind when we're creating.
11:50Okay, what's what's the story I want
11:52people to think of when they hear my
11:53name? So, everybody was modeling Russell
11:56Brunson. Makes sense. He's brilliant,
11:58right? He's brilliant marketer. He's
12:00doing a free plus shipping mark offer on
12:01his book. So, everybody starts doing
12:03free plus shipping offers and they're
12:04giving away thousands and thousands of
12:05books and they're doing upsells and
12:06upselles and upselles. And then I come
12:08along and I say, "Well, I'm going to
12:09sell my book for $30 and $9.99 shipping
12:13and handling." So, I had a guy who
12:16eventually bought one of my coaching
12:17programs. He said, "When I saw your book
12:20for sale for $30 and $9.99$9.99 shipping
12:24and handling," he said, "I was so mad."
12:25And he didn't say mad. Um, he said I was
12:27so mad. How does he think he is? How
12:28does he how can he charge this much
12:30money for this book? He said, "Then I
12:31read the salesunnel and it said I charge
12:3480 $40,000 an hour for coaching." And if
12:36you read that book, like if you coach,
12:38if you hire me to coach you, whatever I
12:40tell to you in the first two hours is
12:42the stuff in this book. He said once I
12:43saw that, I was like, "Oh, that makes
12:44sense." And then he bought the book. But
12:46he didn't just buy the book. He bought
12:47the upsell to the challenge. And then he
12:50bought the coaching program at the end
12:51of the challenge. Why? Because I had a
12:54frame. I gave him a frame through which
12:57to view my offer that made it make sense
13:00to him to say yes to that offer. Are
13:03y'all tracking? Right. And see, one of
13:06your problems is as a as an
13:07entrepreneur, you don't have any
13:08pre-framing. You know what's really
13:10fascinating to me? People when they look
13:13at other people doing something that
13:14they don't
13:16understand and it doesn't make sense to
13:18them, their only conclusion is that it's
13:21a
13:22scam. So, anything that you don't
13:25understand, somebody there's somebody
13:27out there who wants to make money off of
13:28you to tell you it's a scam. Like, a lot
13:29of people say multi-level marketing is a
13:31scam. I'm not a like I'm not a fan of
13:33multi-level marketing for me. I don't I
13:35don't participate in multi-level
13:37marketing, but I still think it's a
13:38great business model. I think it's a
13:40great business. I think I think any
13:43entrepreneur who wants to build a
13:45business would do well to have their
13:48first business be a network marketing
13:49business where they have to build a
13:50team, they have to learn how to sell,
13:51and they have to learn how to recruit,
13:52and they have to learn how to lead
13:54people who don't have to follow them
13:56because you will develop so many skills.
13:58Now, I know a lot of people are going to
13:58say, "There he goes promoting
13:59multi-level marketing." I'm not
14:00promoting it. I'm just saying I believe
14:02it's a it's as viable a business model
14:04as a real estate agency. It's a viable
14:06as viable a business model as an
14:08insurance agency. But most of the people
14:10don't make any money. Most of the people
14:10in most things don't make any money.
14:12Right? But but the reality is you will
14:14learn skills that are absolutely
14:18essential. One of the reasons I'm so
14:19good at sales, one of the reasons I'm so
14:21good at marketing is because I was so
14:22terrible at it when I got started in
14:23network marketing, selling insurance and
14:25investments. And I was terrible how long
14:26until I got
14:28good? Okay. So you are attractive. So,
14:30these are the markets that create
14:35millionaires. Now, let's look at the
14:36business
14:37models. Okay, we're going to I'm going
14:39to I'm going to do it like I I like to
14:41do my different levels. Okay, so the
14:44lowest the lowest of all of the business
14:49models is what I call a
14:52entrepreneur. In fact, I'm not even
14:54going to do it that way. I'm going to do
14:56I'm going to do it this way. I'm going
14:57to do
14:59LV time LP equals entrepreneur. So LV *
15:05LP. What is that? Low volume times low
15:08price. So you have something that you
15:11sell. Let's say you sell it for $20.
15:14Let's say you sell two of them a month.
15:16You think you have a business, but you
15:18want to be an entrepreneur. You're an
15:19entrepreneur. You're not a real
15:20entrepreneur. Why? Because you have low
15:22volume and low price, low profits. So
15:25you can do
15:29um high HV times LP and that you know
15:36what I should have done the other one
15:37first. I I'll just leave it like this.
15:38This equals a what I call a
15:42wallrepreneur. A walrepreneur. Yes. What
15:45is
15:46that? That is like Sam Walton. What did
15:50he do? Sam Walton said, "I never want to
15:52make more than 30% margin on anything I
15:56sell." He said, "If I go buy something
15:57in bulk and I get a discount from my
16:00vendors, I'm going to pass that discount
16:02on to my customers." And Sam Walton
16:04became the richest man in the world with
16:07the Walterreneur business model. Low
16:10volume, I mean, high volume, low price.
16:12That's a that's a really viable
16:14business. There are a lot of people who
16:15do that today. In what market? In in
16:17what uh business?
16:19e-commerce, low profit, high volume.
16:22They sell
16:24plastic forks or whatever and they sell
16:28millions of them and they make a lot of
16:29money. Okay, I saw I saw this thing uh I
16:32was watching this Shark Tank episode
16:34last night on YouTube and these people
16:37created this thing called Bucket Golf
16:39and they they created this backyard game
16:42with these oversized golf clubs, these
16:43oversized golf balls and these um popup
16:48basket bucket things with a flag in it.
16:51And they sell it for
16:52$299. And the first year, the f when
16:56they first created, they only did like
16:57$5,000. And then the next year they did
17:00um um $2 million. And the next year they
17:03did like 5 million. The next year they
17:04did like $12 million in sales. All
17:07e-commerce,
17:09$200, relatively low price. Um and then
17:12but high crazy high volume. Then you
17:15have
17:20um no
17:25LV LV times HP. This is what I call the
17:29entrepreneur business
17:31model. What is entrepreneur business
17:33model? Low volume, low volume
17:36times times high price, high profit
17:39equals entrepreneur. So when I first got
17:41started, I was an entrepreneur. Like
17:42when I first got started coaching uh in
17:46in the coaching space, I was coaching
17:47people on how to sell and in particular,
17:50I was coaching people in network
17:51marketing. whole bunch of different
17:52network marketing companies because I
17:54got good at that. I got to the place
17:55where I was making $40,000 a month. So,
17:57I was teaching other people how do you
17:58build an organization where you can make
18:00like significant money in network
18:01marketing or multi-level marketing. So,
18:03I had a program that I sold for
18:06$497. And I would go and speak to these
18:08organizations. These companies would
18:10have me come in and I'd do a
18:11presentation and I might have um like
18:1620, 30, 40, 50, 100 people buy my $497
18:20program. Well, if 100 people buy your
18:21$497 program in a month, that's
18:24$50,000. That's low volume. 100 people,
18:27that's really low volume. But because
18:29it's $497, I was able to make a
18:31significant income. Does that make
18:32sense? And then my favorite business
18:34model is the one that I participate in.
18:37Now, I mean, I I I do some of this and I
18:40do some of that. I stay as far away from
18:41this as I can. And this is what I call
18:45uh
18:48oops HV time HP. That's high
18:54volume high volume times high price
18:57equals what I call wealth
19:02entrepreneur. Wealth entrepreneur. What
19:04is that? That's when you sell something
19:06that cost
19:09$55,000 and you have hundreds of people
19:11who buy it from you. That's when you
19:13sell something that costs $27,000. You
19:15have hundreds of people to buy that from
19:16you. Or you sell something that's that's
19:23um you sell something that's um
19:26$375,000 and you have dozens of people
19:28buy that from you and you just keep on
19:31doing that. So all of those price points
19:33between high high volume, high price,
19:35all those price points between 25,000
19:37and a million dollars, we've sold
19:40hundreds and hundreds and hundreds of
19:42those. We've only had four people buy
19:43the million-doll offer, but still it's
19:45one of those high price. And if you
19:48combine, if you start down at 25,000,
19:50that's a whole lot of people. We're
19:51talking about hundreds and hundreds of
19:53people who've bought stuff from us
19:55between$25,000 and a million dollars.
19:58These those are the business markets.
20:00These are the business models that if
20:01you will stick with them, they will make
20:03you a millionaire. Now, here's the
20:04mistake people make. I'm going to go sit
20:06back over here. Here's a mistake people
20:09make. They start their business and they
20:13don't take into consideration at all
20:16what is the model, what's my business
20:17model going to be, and they don't take
20:19into consideration at all what's what
20:21market am I going to like go into to
20:24serve. You missed the whole point. Sure.
20:28When I used to serve people in network
20:30marketing, my pro my my coaching
20:33programs were
20:35$497. Now that I serve high level
20:37entrepreneurs, we have doctors, we have
20:39attorneys, we have real estate agents,
20:40we have insurance own like insurance
20:42brokerage owners, we have we have people
20:44from all walks of life who are high netw
20:47worth highinccome individuals. Now I'm
20:51serving a different market. So the
20:53market that I serve, the premium value
20:55market supports the wealth entrepreneur
20:57business model to at the beauty of it
21:00for those of you who are contemplating
21:02whether or not you should go into uh the
21:04wealth entrepreneur business model. Um
21:07very few people ever step into that
21:10arena because they think it's so so
21:14hard. And I'm going to let them keep
21:16believing that. So I hope this video
21:18helps you. Stay blessed by the best and
21:20we'll see you on the next video. Bye for
21:22now.

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