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7 Myths You Need to Stop Believing if You Want to Be Rich Your · The Empire of Wealth

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  Speaker 1: A broke entrepreneur asked me the other day, what's one
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  piece of unfiltered advice that I could give them to
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  go from $ 0 to a million dollars in 12 months?
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  Speaker 2: And I thought about it for a very long time.
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  Speaker 1: And I realized that 99% of entrepreneurs will never make
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  a million dollars. I came up with these seven core
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  myths that people believe that stop them from doing so.
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  These are the myths that I have overcome to become
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  a cash millionaire at 26, doing over $ 800 million in
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  my own e-commerce sales. and coaching hundreds of e-commerce entrepreneurs.
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  One of the biggest lies in business is that you
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  need to be smart to bank millions of dollars. The
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  other day I was having lunch with someone that was
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  worth hundreds of millions of dollars. Like I thought they
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  were just worlds above me in intelligence. And I was
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  asking them basic tax questions about something that I was
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  struggling with. I was a little bit embarrassed to even
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  ask it because I thought that the answer was very obvious.
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  And he looked at me and he said, I have
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  no idea. And it's just a reminder that we put
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  people in our brain as just being better than us
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  and smarter than us. And it gives us this excuse
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  that we are not smart enough to do it. When realistically,
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  dumb people make more money. When we look at all
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  of the people that we went to school with that
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  were most intelligent, I'm talking about raw IQ, where they
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  would ace any test.
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  Speaker 2: Where are they now?
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  Speaker 1: Chances are they're probably not richer. They might be have
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  a very fulfilling job, like being a doctor or something,
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  and that might be the path that.
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  Speaker 2: They want, but chances are they're not millionaires.
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  Speaker 1: And when you really drill down on this, it's because
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  of a concept called skill stacking.
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  Speaker 2: So how does this happen?
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  Speaker 1: How do dumb people become richer than smart people? We
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  need to consider it similar to a video game of
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  levels and skills. There are certain things that we need
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  to level up in to become very, very rich. And
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  this doesn't necessarily mean IQ. There's actually one characteristic that
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  is most correlated with success. There's a famous study done
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  by Angela Duckworth where they got 190 spelling bee participants
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  and they characterized certain things such as self-confidence, IQ, and
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  this one last concept as well. And they found that
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  this last concept was the most important and correlated with success.
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  Speaker 2: And it's the same in business. It's called grit.
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  Speaker 1: Grit is the overlap of perseverance and perseverance. It basically
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  states that someone's willing to do a lot of one
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  thing to constantly break down barriers and improve in that
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  thing because they are passionate about it. So they persevere
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  and therefore become successful. Now, I'd like to point out
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  that something like grit is often what's referred to as
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  a soft skill, such as like communication. We need to
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  also overlap this with skill stacking in hard skills. Hard
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  skills are the things that you can technically do to
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  provide value for either your business or for an employer,
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  such as Facebook advertising.
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  Speaker 2: Content creation.
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  Speaker 1: There's no point us learning a very, very basic skill
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  that is kind of on its way out. It's not trending.
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  It's not going to be important for the future. And
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  more importantly, it doesn't tie closely to the value creation
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  or that business. Let's take copywriting, for example. If I
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  am learning copywriting skills for brand or social media copywriting,
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  that's very creative. It's very hard to align how much
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  money that is creating, say, compared to someone writing a
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  very long sales piece of content that people are directly
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  running Facebook advertising to, that they can say, hey, this
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  is producing me a five times return on investment. Therefore,
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  I can pay you $ 10, 000 for this article. Compare that
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  to just a social media post where they're just writing
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  a couple of words. We want to overlap our soft
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  skills and hard skills. And we want to just focus
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  on that. And that will always outweigh just someone that
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  has raw intelligence. One thing they also found about smart
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  people is when they have a certain hypothesis, because they're
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  intelligent and they know it, when they come up against
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  resistance to that initial hypothesis and they can't actually break
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  through and they fail, they're far more likely to give up.
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  Whereas dumb people, we just don't know any better. We
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  just keep pushing forward. And that brings me to my
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  second myth, which is you should listen to your friends
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  and family about making money. If you want to stay broke,
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  you should listen to broke people. This is why we
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  shouldn't listen to our friends and family that have picked
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  a path of not creating wealth. And that's completely acceptable
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  for them. We just don't want their advice. One of
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  my first ever successful businesses after a ring of failures
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  was launching Instagrams and I was selling advertising on the Instagrams.
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  I remember it was a very new field and I
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  got offered $ 30, 000 to sell the Instagram. When I went
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  to my traditional mentors, people that have been in business
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  for 20 years, they instantly told me, you should sell it.
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  Not knowing how it was going to be taxed, if
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  it was legal, if the Instagram was just.
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  Speaker 2: Going to ban me.
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  Speaker 1: They had no realm of consciousness around what the field
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  actually was and what was the potential.
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  Speaker 2: So I ended up selling it.
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  Speaker 1: Shortly after, my peers in the space were building $ 50,
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  $ 100 million brands through that Instagram, which was true generational wealth,
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  which was my goal at that point. Instead of asking
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  my friends and family and basic mentors for advice, I
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  should have been relying on something that's called positive mimesis,
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  which basically states copying what people are doing in a
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  positive way. If I'm copying people that have no experience,
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  it's not going to work out. So how do we
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  do that? First of all, we need to get in
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  the right circles. We need to go to events. We
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  need to go onto discord communities. We need to find
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  people that are not doing hundreds of millions of dollars,
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  but someone that is just slightly ahead of us because
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  chances are the person that's doing a hundred million dollars
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  doesn't have time to support you. Doesn't have time or
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  the interest to help you. But the person that's slightly
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  above a few will definitely be able to empathize where
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  you're at and will also have the time to do so.
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  Then we need to understand how to ask the right questions. First,
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  frame your existing situation in an unbiased way. You could
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  convince even some of the smartest mentors about your plan
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  of action. If that's what you want to do, And
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  you frame the scenario in that way. So give them
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  the full facts with no other agenda. The third question is,
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  do you have a firsthand situation that you had to
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  experience something like this?
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  Speaker 2: How did it go? And did you wish that you
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  did better?
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  Speaker 1: By framing the questions like this and also asking the
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  right audience, suddenly you'll get much better advice than your
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  parents or your friends can give you. Number three is
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  that you can't design luck. You can 100% design luck.
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  Speaker 2: For your life.
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  Speaker 1: You can absolutely design luck in business.
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  Speaker 2: The way I see it, there's three core pillars of luck.
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  The first is people.
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  Speaker 1: People could open the doors to opportunities that you just
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  wouldn't have had options to do otherwise. The second is
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  just general consumption of information. Think about books and YouTube
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  videos that you watch that suddenly open up a world
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  of opportunities. And then the final is awareness. Now, awareness,
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  what I mean by this is having enough general knowledge
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  and skill set so that you can identify a certain
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  trend or identify information as the lucky opportunity kind of
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  crosses you. Think about the first time you heard about Bitcoin.
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  Did you have enough knowledge about the financial system or
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  even about how technology could kind of work to identify
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  that as a trend? So when we've got these three
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  core pillars of luck, then the final thing that we've
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  got to do is also consider time on field. We
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  can grossly change the likelihood of us being lucky if
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  we increase the frequency of all three.
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  Speaker 2: Of those pillars.
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  Speaker 1: Think of it similar to if you're subbed off in
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  a game and you come on for 10 minutes, how
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  likely is it you're going to score a goal compared
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  to being on there for the whole game? Far more
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  likely if you're actually playing the game with a high
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  amount of frequency. People often say luck equals preparation plus opportunity.
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  I would go further and say that Luck equals preparation
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  plus opportunity times by frequency. And we can keep doing
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  this until we are guaranteed to become lucky. The best
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  example of this is my videographer. I was thinking about
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  getting started on YouTube and I had an Udi job
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  posting for creating Facebook ads for Udi. And he said
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  he had a popular YouTube and I was like, maybe
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  we should get started. Without hesitation, after offering him the job,
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  he packed up his things, drove eight hours across the
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  state lines and basically moved around the corner from me.
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  Speaker 2: To get started. I didn't have any plan.
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  Speaker 1: And suddenly we've just constantly kept plugging away at it,
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  doing videos, doing videos, doing videos, and eventually became so
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  exposed to the entrepreneurial network that I have. Now he
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  is consulting for some of the biggest entrepreneurs in Australia.
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  He's running all of their social media accounts. Some will
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  say he got lucky, but I just think he focused
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  on the three core pillars of luck.
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  Speaker 2: And just focused on frequency as well.
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  Speaker 1: The next one is probably one of the most important
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  and I've learned the lesson the hard way. It's that
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  if you just focus on solving a problem within business,
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  you'll be successful.
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  Speaker 2: That's not true.
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  Speaker 1: After failing so many businesses, I learned that just solving
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  a big problem in the world, like everyone says, isn't
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  enough to.
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  Speaker 2: Create a successful business.
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  Speaker 1: The first thing you need to consider is how many
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  people actually have the problem that you're trying to solve.
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  One of my first failed businesses was launching seasonings. I
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  looked at all of the competitors in the market and
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  they looked the exact same. They're in small little plastic
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  bottles like this. They had the same ingredients.
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  Speaker 2: And I was like, there's definitely an.
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  Speaker 1: Opportunity to create a exotic seasoning business with really unique
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  ingredients that's in a beautiful glass vial that will sit
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  on the counter so people are proud to show it.
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  The visibility will increase sales because people, it will become
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  a conversational piece. On paper, that's an amazing business. But
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  one thing I didn't consider is how much does it
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  cost to actually solve that problem on a unit economic basis,
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  meaning every single sale that we do, how much do
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  we make from it? And what I found out was
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  by using really expensive glass vials that are quite large,
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  and expensive ingredients. All my products were five times more
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  expensive than everyone else's. You need to ask yourself, can
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  I solve this problem at a price that the customer
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  are willing to pay for? The second thing that we
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  need to consider is market size. Now, a lot of
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  people will say that this doesn't matter and you need
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  a niche down. And sometimes that is true, but we
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  need to dive deeper into that concept because if it's
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  too niche and people aren't in a certain stage of
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  awareness to the product, They're not going to purchase. The
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  stages of awareness are not aware, problem aware, solution aware,
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  product aware, brand aware. We are trying to make sure
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  when we're quantifying how many people actually have this problem
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  and how feasible the business is, we need to make
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  sure that there's a large customer audience either in the
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  product aware or at least solution aware kind of situation.
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  The second part of that is we need to challenge
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  the concept of should we niche down? If we niche
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  down too far, the market is not going to be
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  big enough. We're not going to have enough customers to sell.
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  Let's say, for example, we've done our research and we
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  know that we can solve the problem in an economic way.
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  The next thing we need to consider is how many
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  financially viable customers are in the right stage of awareness
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  to purchase that product. The stages of awareness is not aware,
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  which is obvious. They just have no awareness of any
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  problem or product or anything. It's probably where the seasonings were,
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  to be honest, because people didn't really know that they
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  needed a beautiful seasoning vial. Then we've got problem aware,
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  which means that they're aware that there's a problem, but
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  not aware that there's any product to solve it. Then
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  we've got product aware, which means that they might be
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  aware of something like there's a seasoning out there. that
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  actually does this, but we're not really sure about what
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  it's called. And then we've got brand aware, which is like, hey,
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  this is Davey's seasoning business. When we're researching the total
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  addressable market, we really wanna consider where there's a large
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  enough audience. We don't want people not being aware and
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  we don't want people being brand aware.
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  Speaker 2: We want somewhere in the middle.
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  Speaker 1: And then we want to quantify as to our best
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  of our ability, how easy it's going to be to
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  sell to them. Suddenly we've got a business plan. But
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  it can't just be, hey, there's a problem in the world.
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  I'm going to start a business and solve it. That's
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  what everyone told me to do. Number five is the
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  myth that you can get rich quickly. This is probably
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  the main myth that caused people to quit. People think
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  that you can get rich quickly because of stories like
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  mine where I talk about going from $ 0 to $ 10
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  million in.
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  Speaker 2: Just 12 months. The truth is it took a lot
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  longer than that. After I finished school and even in school,
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  I was launching businesses.
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  Speaker 1: I launched a seasoning business. I launched a singlet business.
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  I launched literally a social media app. I launched a
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  Vietnamese roll cafe that failed. And if we constantly embrace
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  what's known as the narrative fallacy, which is like simplifying
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  people's stories. Sure, I got rich quickly. But the vast
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  majority of the stories and headlines that you see aren't
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  just that. What actually happened in my situation is I
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  stopped launching businesses. I took all of my money and
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  I went and I worked for someone else. It was
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  kind of my first proper job.
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  Speaker 2: I got rid of.
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  Speaker 1: All of my ego and realized there was something that
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  I was missing, some skill set that I needed to learn.
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  And I went and I learned that skill set. And
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  it was only until I spent a year doing that
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  for someone else, learning on someone else's money, providing value
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  for them, building a framework where I have the ability
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  to explore and bounce ideas off people, was I actually
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  able to level up to the point where I was
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  ready to start a business. And this brings us to
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  myth number six, which is you should start an easy
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  business first. Often you'll hear people that have never started
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  a business just say, just start an easy business. It's
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  going to be the quickest way for you to learn.
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  Speaker 2: This is false.
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  Speaker 1: When I look at my rate of learning over the
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  businesses that failed. Where I would start the business, launch
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  the website, launch the ads and then fail. And that
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  would be over a six month cadence versus the learning
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  that I learned from going from zero to a hundred
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  million dollars and the amount of experience and exposure that
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  I had to positive feedback loops.
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  Speaker 2: It's just incomparable.
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  Speaker 1: And one of the quickest ways to get a failed
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  business is to copy what everyone else is doing through
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  an easy business. Think cafes, clothing businesses. These are so
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  accessible because everyone eats, everyone wears clothes. So therefore people assume, hey,
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  I'm going to start this easy business with no.
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  Speaker 2: Barriers to entry.
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  Speaker 1: Suddenly what happens then is it's a race to the
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  bottom in your pricing because you are selling the exact
• 14:25
  same thing as everybody else. Therefore, you don't have any
• 14:28
  margin to actually advertise the product. And therefore, you have
• 14:32
  no way to explore with that margin in failed ventures
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  or successfully creating Facebook ads, all of this kind of stuff.
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  We want to create a differentiated product. And typically to
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  do that, We don't want to start something that's easy.
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  It's far better in business to find positive feedback loops,
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  which we can repeat rather than negative feedback loops, which
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  we know that we need to avoid. A lot of
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  people will say that, hey, failure is part of the
• 14:57
  process and I'm one of them. But failure is definitely
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  not better than success in learning. Let's illustrate this with
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  a practical example. Let's say you want to get into dropshipping.
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  It's a very easy business to get into. And typically
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  one of the main practices that people use with this
• 15:14
  is they will find a competing dropshipping store that they
• 15:17
  know that they're selling very well and copy the product exactly.
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  They'll copy not only the product, but the exact same
• 15:24
  market that they're selling in, the exact same marketing positioning,
• 15:28
  and they will just be lazy and launch that. Now,
• 15:31
  you don't want to start the easy path. You want
• 15:33
  to change the positioning. If your competitor is selling like
• 15:36
  knee braces and they're selling them for marathon runners, go
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  to these suppliers that are selling them. Reach out and
• 15:41
  just say, hey, what's something that you could do very
• 15:44
  cheaply to customize this product so it's better for older people?
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  Suddenly you've created a new marketing positioning. You've created a
• 15:50
  differentiated product and you're far more likely to get successful
• 15:54
  on Facebook.
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  Speaker 2: This is the thing.
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  Speaker 1: People will just grab that one product and test it.
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  That's the easy part. But you might not get any
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  results there, but you're far more likely to get results
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  by putting the work in.
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  Speaker 2: And making it harder from the initial launch point. And
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  this brings me to.
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  Speaker 1: Myth number seven, which money buys you happiness. I'm constantly asked,
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  does money make you happy? When I look at when
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  I was most happy, it's when the money was not
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  part of the equation. It was simply the pursuit and
• 16:20
  the progress. It wasn't the outcome that I was chasing.
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  It was the actual pursuit of chasing it. It was
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  the small minor goals that I was hitting through that time.
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  And I think that now, even when I'm most unhappy,
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  I'm focusing on the money itself. There's a famous study
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  done by DECI, I think it was in like 1971,
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  where they got two sets of participants to do a puzzle. Initially,
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  they both loved doing the puzzle and then they were
• 16:45
  offered a financial reward for one of the groups. That
• 16:48
  group then far less enjoyed making the puzzle. and didn't
• 16:52
  want to do further experimentation with it. Whereas the people
• 16:55
  that were just doing it for the creativity enjoyed it
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  far more. So if you're currently in the process of
• 17:00
  becoming rich, you're watching this video and you're chasing it
• 17:03
  and you're like, I need this car, I need this
• 17:05
  watch to be happy. Chances are you'll look back and
• 17:07
  you'll realize quarter way through the process where you're doing
• 17:10
  things with cool people and you're getting some level of
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  result and just really enjoying the process, you had the
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  opportunity at that point to be the happiest that you'll
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  ever be through your life. The extra money isn't going
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  to take you further. So be very, very careful and
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  think about that inflection point. If you like this video,
• 17:27
  go check out my video on all of my income
• 17:29
  streams and how I make over $ 100 million a year. Thanks.