Dollar Per Effort Arbitrage: The Secret to Scaling Fast

If you want to make an astronomical amount more money in your business as fast as possible, you're going to need to listen and implement the lessons I talk about in this video. My name is Daniel Fazio and I run an 8-figure business that will probably make over $15 million this year, and that will be many 7 figures in profit. Those companies are Client Ascension and ListKit. And what I want to do in this video is walk through some insights I've acquired from starting at zero to getting where we are now. The first one I want to go over is called dollar per effort arbitrage. Let me tell you about a situation I was dealing with with one of my consulting clients. He has a client that pays him about $15,000 per month. This was about 40% of his revenue. So a lot. However, this one client was about 60% of the weekly effort he was exerting and not just his working hours like sitting at a desk. If he was worrying about work, it was because of this client. So one week this client of his says to him that they have to switch up the arrangement, yada, yada, yada. She's paying him too much, whatever. My client starts freaking out because this is 40% of his income. And this is the lesson that I had to explain to him. It doesn't matter if he was going to get paid less by this client, so long as the effort dropped at a higher proportion. So let me break this down for you. $15,000 per month. This costs time, thinking power, worry, stress. And it's not just time. So we have to quantify it a different way. Let's just say it's 100 units of stress units. That's, that's what we use. So this client is paying him $15,000 divided by 100 stress units, so $150 per stress unit per week. Now let's say the client wants to change the arrangement and pay him less. I told him that's fine, so long as there are considerably less stress units required to fulfill for the client. So in particular, one-on-one calls for him. This was a kind of a white label situation, so that's what a lot of it was. It was him doing hello one-on-one calls with her clients. Let's say his pay goes down to $5,000 per month, which is a two-thirds drop, but the amount of work he has to do drops 80% and it's only, say, 20 stress units now. Now he's getting paid $5,000 divided by 20 stress units, which is $250 per stress unit per week. This is a win because $250 compensation per stress unit is better than $150 compensation per stress unit. However, if the pay dropped from $15,000 to $5,000, but the stress units only went down from like 100 to 50, then that's $5,000 divided by 50 stress units, which is $100 per stress unit. That's worse than the $150 before. It doesn't matter if he got paid less. It only matters whether his compensation per pain in the ass activity increased so he can get paid a lot less. So long as he does a lot less work, it's completely fine. This is why it's called dollar per effort Arbitrage. You need to constantly try to design your life around making trades like this. One thing somebody might say, Daniel, why would you actively tell him to get less compensation for less work? Why would you voluntarily be okay with decreasing your income and getting paid less? This question is from a misunderstanding about how the universe works. If you do good business and you constantly are doing the inputs that grow a business without interruption, you will near instantly, 100% of the time, fill any holes in your income. I had to explain to my client that since he is always doing good business, always doing outreach, and always marketing himself, there is zero situation that a new, better client would not automatically and damn near immediately take the place from the lost income within like 2 to 3 weeks. This is the universal force from God rewarding you for following directions and instructions. Real quick, guys, if you want to start an AI marketing agency where you sell marketing offers to clients that have AI AI do the work for you, at the first link in the description is our AI-assisted agency offer where we show you what to sell, who to sell it to, how to get clients, and how to fulfill for the clients with AI. Check the first link in the description. You can watch an explainer video and then book a call with us after that. All right, back to the video. I want to give you another example around furniture financing. So strange one, but if you've ever furnished an apartment or house or something, you've probably gone to a furniture store. Normally costs like $5,000 to $10,000, depends how big it is. And they normally do this thing specifically at furniture stores. They always do this where you can finance the furniture for 0% interest for 12 months. This is like a common thing that they do. This makes sense to do financially, like it technically does. Like there's zero interest cost. That's what a finance major would tell you to do because you can invest the rest of the money and have it earn you income while you get to use the free debt. Like that's technically correct. However, what's not being accounted for here is the pain in the ass it takes to do this. You have to open set up a new card, make a new online portal, set up the payments, make sure you don't forget, get the mail and emails, deal with them calling you to try and upsell more shit. And when you finish the payments, you have to request the payoff quote, then send the final payment in, then call them up and close the account. Yada yada yada. A bunch of bullshit. It's a pain in the ass. It's not worth the pain in the ass. It's too small of a reward for too much of a stress and annoyance requirement. This is exactly like buying a pack of yogurts in the store and then you get home and you figure out one of them is broken and it's like pierced open. Yeah, you can drive back to the grocery store and get a refund. They'll probably give it to you. Or you can just not do that and understand that driving all the way back over there and waiting in the customer service line isn't worth $1.14. It's probably not even worth $10. Everything you do in life has a stress slash pain in the ass requirement. For instance, people say investing into real estate is passive. You can just buy a building and the tenants rent from you. This is not true. This is not not the case. You need to deal with an absolutely tremendous amount of stuff. I've owned apartment complexes. There is no such thing as passive income. It's just constant dollar-per-effort arbitrage until you're getting paid like $100,000 per unit of stress. Like, your dollar-per-stress unit right now may only be like $20 or $30 or something. Mine is thousands. I literally sell $1,500 hour-long consulting calls. People buy these regularly, make sales of $1,500 an hour for a one-on-one call. It just takes time to slowly step up the ladder, like constantly making new trades that increase your number. Like Alex Hormozi, for instance, charges $135,000 to talk to him one-on-one. It's almost 100 times more than me. It's just this constant step-up ladder. You could take someone who's substantially richer than Alex Hormozi. Like, I guarantee you Elon Musk or Jeff Bezos could probably charge $1 million an hour. It's just a constant arbitrage between dollar per effort. That's it. How exactly does this work? So in a previous video, we talked about how there are 3 ways to get anything done: by you, by somebody else, or with AI/automation. If you mapped out every single thing you do on a daily basis in your business, and I mean each individual task, and imagine them as boxes, an assembly line, like all you need to do is go box by box and ask whether you can get somebody else to do this really cheap, or if you can get AI or automation to do it for you automatically. This reduces the amount of work you need to do while holding your income constant, which therefore increases the dollar per effort number. It's a division—dollars divided by effort. Therefore, if you decrease effort, the number goes up. That's what you want. Now, with that freed up time, This allows you more time to go find better or higher paying clients, which increases the income side of the equation, further pushing the number up more and more. And then you just do both of these things constantly back and forth for years, decades, and then one day you're just super rich and you have a bunch of money. That's literally what happens. That's how it works and that's how it's always worked. There is no such thing as passive income. There are just people who get paid so much money per unit of stress they exert that it It seems like they don't work at all because they only need to do so little. So if you want help reaching that point, I have two offers for you. First is the AI-Assisted Agency Program. This is the first link in the description. This is for complete beginners or people who are below $30K a month. We show you what offers to sell, who to sell them to, how to get clients, and how to fulfill for those clients by using AI. That's the first link in the description. Number two, I have Olympia. This is the second link in the description.. It's our mastermind for people who are currently above $30K a month. We show you how to turn your offer into a cold traffic optimized offer, build a funnel for it, launch ad campaigns, be able to close cold 10 to 20 new clients per week entirely from cold traffic without needing a personal brand. Check both those offers out because these offers are how the case studies on my channel are being produced. For instance, with AI Assisted Agency, we have people like Doby who went from $0 to $12K a month in his first month. Matt, who went from $0 to $20K a month in 3 months. To Brent, who made $44K in his first month. Cameron, who made $50K in his first 3 months. Am I promising you get results like that? No, but you are getting exactly what they had access to. For Olympia, you've got case studies like this. Mark, who hit $450K a month. Philip and Connor hit $109K a month. George, who hit $100K a month. There's a bunch more people in there. And you can watch all of these case studies at the respective links in the description. The first one, again, is for AI-assisted agency. That's go.clientascension.ai, first link in the description. The second link in the description is for Olympia. That's joinolympia.com. Watch the video on that page. Then you can book in a call with us to see if it's the right fit for you. I'll see you inside. Peace.