You Only Need Five Clients to Get Rich — Transcript

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1. 0:00People will not do things. I see I see
2. 0:01beginning entrepreneurs say like, "Well,
3. 0:03that's not scalable." And I'm like,
4. 0:04"You're broke.
5. 0:06You're broke. It's okay. You can You can
6. 0:08not be scalable. You can just make
7. 0:08money. That's okay."
8. 0:10But it also assumes that your future
9. 0:12self with more skills and more resources
10. 0:14won't have the ability to figure out how
11. 0:16to scale it. Yeah.
12. 0:17And most things are like we're building
13. 0:19cities in the middle of the [ __ ]
14. 0:21ocean.
15. 0:22>> [laughter]
16. 0:22>> If you're starting a business,
17. 0:24and this is where you have to not sell
18. 0:26out of your own wallet, is and that's
19. 0:27the the nature of the offers book is
20. 0:29start with the most absurdly viable
21. 0:31thing you possibly can. So whatever
22. 0:32price you want to charge, add one or two
23. 0:34zeros to it.
24. 0:35Okay, and it's like that's crazy. I
25. 0:37agree, crazy.
26. 0:38What would you have to do in order for
27. 0:40that to be worth it? And then you list
28. 0:42out all the things you do. Well, I mean
29. 0:43well, if I was going to get somebody in
30. 0:44shape, I'd I'd probably go to their
31. 0:45house. I'd help them grocery shop. I'd
32. 0:47I'd drive them to the gym and back from
33. 0:49gym to make sure that they actually did
34. 0:50it. For a hundred grand, is it worth it?
35. 0:52And they're like,
36. 0:53"Well, it's not scalable."
37. 0:55>> [laughter]
38. 0:56>> It's like, "Well, you only need five."
39. 0:58And I think when you're starting out,
40. 0:59there's huge value in having unscalable
41. 1:01services because one, you'll get better
42. 1:04customers because you're going to be
43. 1:05charging much more for something that's
44. 1:06a little bit more premium. And the value
45. 1:09of talking to people richer than you
46. 1:11will do more for you than what you were
47. 1:12doing for them.
48. 1:14So like they will shift your worldview,
49. 1:15which is why like a lot of people like
50. 1:17caddies who talk to all these
51. 1:18millionaires when they're when they're
52. 1:19playing golf. It's like they learn so
53. 1:20much from the people like how do you
54. 1:22make your money? Like they learn so much
55. 1:23worldview of oh, I shouldn't be thinking
56. 1:26this way. I should be thinking like
57. 1:27this. So one is you get that. The second
58. 1:29is that you are able to practice the
59. 1:32unscalable thing.
60. 1:34And then you can figure out how do I how
61. 1:36do I take the scarce value? Okay, this
62. 1:39is not scalable. Fine, we can just let's
63. 1:41just say it's not scalable. Okay, are
64. 1:43there elements of this that are scalable
65. 1:45that I now know because I've done it
66. 1:47rather than because I thought about it?
67. 1:49Because your thought experiments, and
68. 1:51I'd say for myself too, are pretty
69. 1:52terrible. Like our ability to predict
70. 1:54the future is pretty god awful. And so
71. 1:56we think we know what it's going to be
72. 1:57like and we usually have no idea. And so
73. 2:01And so it's like go do it. You'll
74. 2:02collect way richer data and that no one
75. 2:04else has done cuz it was unscalable and
76. 2:06then you can actually create something
77. 2:07that's more scalable that is unique
78. 2:09because you actually went through it.
79. 2:10And from a This is getting a little bit
80. 2:12more business-heavy, but from a branding
81. 2:14perspective saying, "Hey, I have a
82. 2:16handful of clients that pay me $2,000 a
83. 2:19month to do this premium thing." For
84. 2:20those of you can't afford that,
85. 2:22I now have this thing You've already
86. 2:24anchored high. They see you as the
87. 2:26person on the hill because you deal with
88. 2:28these unscalable my private clients and
89. 2:30then you can have like you look at the
90. 2:32Tesla model of start with the Roadster
91. 2:34and then you have the Model S and then
92. 2:35you work your way down to the masses.
93. 2:38And so I'm a big believer in
94. 2:40price as high as you can, make the very
95. 2:42premium thing first, let that be high
96. 2:44cash flow, high margin, low scalability
97. 2:47so that you can then have the money to
98. 2:48start working your way down
99. 2:50>> [clears throat]
100. 2:51>> to more people.