You Only Need Five Clients to Get Rich

0:00People will not do things. I see I see beginning entrepreneurs say like, "Well, that's not scalable." And I'm like, "You're broke." >> Yeah. >> You're broke. It's okay. You can You can not be scalable. You can just make money. That's okay. But it also assumes that your future self with more skills and more resources won't have the ability to figure out how to scale it. >> Yeah. >> And most things are like we're building cities in the middle of the [ __ ] ocean. >> [laughter] >> If you're starting a business and this is where you have to not sell out of your own wallet is and that's the the nature of the offers book is start with the most absurdly viable thing you possibly can. So, whatever price you want to charge, add one or two zeros to it.

0:35Okay, and it's like that's crazy. I agree, crazy. What would you have to do in order for that to be worth it? And then you list out all the things you do. Well, I mean, well, if I was going to get somebody in shape, I'd I'd probably go to their house. I'd I'd help them grocery shop. I'd I'd drive them to the gym and back from gym to make sure that they actually did it. For 100 grand, is it worth it? And they're like, "Well, it's not scalable." >> [laughter] >> It's like, "Well, you only need five." >> Mhm. >> And I think when you're starting out, there's huge value in having unscalable services because one, you'll get better customers because you're going to be charging much more for something that's a little bit more premium. And the value of talking to people richer than you will do more for you than what you were doing for them.

1:13>> Mhm. >> So, like they will shift your worldview, which is why like a lot of people like caddies who talk to all these millionaires when they're when they're playing golf. It's like they learn so much from the people like how do you make money? Like they learn so much worldview of oh, I shouldn't be thinking this way. I should be thinking like this. So, one is you get that. The second is that you are able to practice the unscalable thing. >> Yeah. >> And then you can figure out how do I how do I take the scarce value? Okay, this is not scalable. Fine. We can just let's just say it's not scalable. Okay, are there elements of this that are scalable that I now know because I've done it rather than because I thought about it?

1:49Because your thought experiments and I'd say for myself, too, are pretty terrible. Like our ability to predict the future is pretty god awful. And so, we think we know what it's going to be like, and we usually have no idea. And [laughter] so, and so, it's like, go do it. You'll collect way richer data and that no one else has done cuz it was unscalable, and then you can actually create something that's more scalable that is unique because you actually went through it. And from a This is getting a little bit more business-heavy, but from a branding perspective, saying, "Hey, I have a handful of clients that pay me $2,000 a month to do this premium thing.

2:20For those of you can't afford that, I now have this thing You've already anchored high. They see you as the person on the hill because you deal with these unscalable my private clients, and then you can have like you look at the Tesla model of start with the Roadster, and then you have the Model S, and then you work your way down to the masses. And so, I'm a big believer in price as high as you can, make the very premium thing first, let that be high cash [snorts] flow, high margin, low scalability, so that you can then have the money to start working your way down

2:50>> [clears throat] >> to more people.