How to Create Cash Flowing Digital Assets (Step-by-Step Guide)

My name is Daniel Fazio, I'm 28 years old. I have close to $2 million liquid, probably another 10 or so million illiquid make multiple hundreds of thousands of dollars per month in take home profit. What I want to talk to you today about is developing cash flowing digital assets for yourself. So let's whip out the iPad here. Cash flowing digital assets. Now when you think of an asset, you probably think of real estate. Here we got some land over here, we got a building over here, we got another building over here. They got windows and shit. What lot of windows over here. You can see that I'm a very good artist. All right. And what happens is all these little rooms right here, that's a room or a unit, and that gives you rent, right? Everyone knows that land, this little stuff right here, this has intrinsic value. And people will say that the reason why land has intrinsic value is because it's scarce, there aren't making any more of it. That's the kind of shit they'll tell you. But what actually the reason why it has value is it has the ability to cash flow. Now why does it have the ability to cash flow? Because you over here, a human, every single one of us must at all times occupy space and live somewhere. You have to exist somewhere at any given point. You need to sleep somewhere. Therefore it is probably the highest demand thing of the planet, aside from water and food is a place to live, right? So therefore there's always demand for it. If there's more humans, there will always be demand for it. So the reason why this has intrinsic value is because you can construct buildings that will have demand for, for rent. You get what I'm saying? That's literally the only reason why if that was not the case, then it would have no value. You need to occupy space. You can do things with land, you can farm land, you can grow crops on land, right? It has the ability to cash flow because you can produce something from land. You get what I'm saying? You can make it into a business. Hear people say as well, like what else is an asset? We're going to list assets here. So we have real estate. And people will say stocks. Why is a stock an asset? Because a stock is a ownership of a cash flowing business, right? A stock theoretically actually is only valued based off of how much profit it produces. And therefore like the dividend, like if you get paid like a 3% dividend and you own a million dollars of this, that means you're going to make $30,000 per year owning that stock, if it was 4%, it would be 40,000 year. Not all companies pay out their earnings and dividends. Sometimes they just buy the stock back, which is kind of effectively the same thing because then the value of the stock goes up because the supply decreases. Right. But it's effectively the same thing. Now what people will also say businesses are an asset. Yes. That's literally just like a stock. Whereas you make your own business, it's just not publicly traded. It's just private business. So I'll put private here. It's a private business as an asset. However, because you, you're probably a male between the age of 23 and 37 watching this video right now. And you don't want to build like some kind of fucking manufacturing plan or like some landscaping or pool cleaning business or some fuckery. Like you want to make money on the Internet because you don't want to be physically required to be somewhere and conduct labor. Right? So that is what we call a digital asset. It's literally just a private business that produces cash flow, physical presence required. That's what a digital asset is. It's a private business that produces cash flow without physical presence required. It's cash flow. That's the point. An asset is technically defined as a useful or valuable thing, person or quality or property owned by a person or company regarding as having value and available to meet debts, commitments or legacies. As far as you are concerned, an asset needs to produce cash flow. It needs to spit profit off. It needs to give you $5,000 per month profit, $10,000 profit. You get the point? Profits, money. And it doesn't require your physical presence to conduct. Right. That's what a digital asset is. So let's go back to the land over here. Okay, so we know that land has intrinsic value because it has the ability to produce cash flow. What is the equivalent of that in the digital world? Right. Okay, so in the digital world, land is the equivalent of attention, AKA traffic. You need traffic if you have traffic. In the digital world, human attention, that is the equivalent to owning real estate. Human eyeballs on the Internet is real estate. Get I'm saying. So you're watching my YouTube channel right now and I have an audience of subscribers and I get people who are regular watchers of my video. That's real estate. I own real estate on the Internet. That is my land. I have an email list with like 25,000 people on it at client, essentially like 100,000 on Liskit, my software company. That's land. I own that land. I have access to human attention and that is capable of producing cash right now. Why is that? Because to make money at all, with literally anything ever this applies to any type of business is you need two things to make money, you need two things. One offer, which is the thing you sell, and then two is traffic, which is access to human attention of people who are capable of purchasing the offer. Okay, so if you had an offer, if you had traffic, if you had land, right? Because this is equivalent to land. If you had traffic and land, you had nothing to sell, you didn't have an offer, then that would be equivalent of having like a blank piece of land. Right? Now you can sell land. Yeah. So let's say you had like a faceless Instagram account or a faceless YouTube channel or you could theoretically sell that. Yeah. But it's not a cash flowing entity. So therefore if you made it a cash flowing entity, you'd be able to sell it for like fucking substantially more money right? Now if you had an offer with no land, so offer X, no traffic, that just makes you a broke influencer. Actually you're not even. You're just a broke right now. If you have no offer times you do have traffic, that makes you a broke influencer, you know what I'm saying? Now I just want to make sure you understand this, right? The reason why you see people and they'll have like 100,000 followers, a million followers, and they're poor is that they don't have an offer. You get what I'm saying? Now sometimes like if you're a giant influencer and you have a ton of organic owned traffic, like think of like a streamer for instance, or like, or speed or like Aiden Ross or like these kinds of dudes, sometimes their offer is selling their real estate to other companies who want to buy the traffic to sell more of their offer, you get what I'm saying? And that's like what sponsorship deals are, are and like that. But if you have like an Instagram or TikTok influencer who just posts like random shit and like doesn't actually sell like sponsorships, like that's a broke influencer, you get what I'm saying? But sometimes your offer can be selling access to your traffic, you know I'm saying? But that requires that you become an influencer, right? But what if you don't want to become an influencer? What if you just want to have an offer and figure out how do I sell stuff without needing to become an influencer? Which brings us to the different ways to get traffic. Now, before I get into that, I want to establish something real quick that like a lot of you guys who maybe you're starting off on a business like, what you need to understand is that it really is just this simple. I just need to go with this little side tangent over here. Offer times traffic equals money. Okay? It's really that simple. You need to understand that if you have an apple seed, you put the apple seed in soil and then you water it and you give it sunlight. An apple tree grows, it just does. That's just how the universe works. Like, you can have some bad seeds and that would be the equivalent of having like a shitty offer, right? But if you just plant seeds and you water it and give it sunlight, it just does grow plants. It just does. That's just how the world works. So if you have an offer and you have traffic, and if you do that enough, you just will get money. You just will. Unless you actively try to fuck it up in some capacity like it will happen eventually. That's just the nature of reality. That's just how things go. It's really just that simple. You just need to sell something and you need to get people to be aware of its existence. And if you do that enough, you just have money. There's nothing you can say that will make that not true. That's just how reality works. It doesn't matter if you. You're the most unluckiest person of all time. If you have a hot dog stand and you stand outside of a crowd of thousands of people, people are going to buy the fucking hot dogs. It just does occur, right? That's just how the world works. Okay? So I want to talk about different ways to get traffic. So, like, I just want to give you an example here real quick. So like, we have the company Meta, who owns the products Facebook, Instagram and WhatsApp. And then we have, for instance, the company Alphabet, which owns Google, YouTube. These are some of the most valuable companies on earth. Trillions of dollars. Why do they make so much money? How is it that these companies are so Prof. Abusely wealthy and make tens of billions of dollars every single year in cash flow? Tens of billions of dollars a year in profit. How is that the case? And the answer is that each of these companies has 3 billion humans using their daily. Okay, what does that mean? It means that they have the largest digital real estate holdings on the planet. Largest digital real estate holdings ever to ever have existed. There are no companies that have more digital real estate than Meta and Alphabet. Zero. That's why they make so much money, because they have access to human attention. And human attention is real estate in the digital world. That's just how it works, right? Like you hear where it's like you. Most millionaires were made a millionaire in real estate. Well, the reason why is because a sufficient amount of time elapsed prior to the invention of the Internet and dissemination of the Internet as the primary medium of how humans allocate their attention. Every human on the planet must occupy physical real estate. That's. That's why most millionaires are made through real estate. But now the inception of the Internet, half of the planet is now on the Internet. Therefore, the largest digital holders of wealth are those who occupy the most digital real estate. How does Meta and Alphabet, how do they make their money? They sell access to their human attention that they own to other companies that want to buy it from them. You know what I'm saying? That's what ads are. They make all their money through ads, right? Which is selling access to their real estate. Right? Does that make sense? Okay, so you, if you don't want to be an influencer, you don't want to like aggregate. These are all the ways to get traffic because you need traffic to sell your stuff. So these are all the ways to do this. So we have one advertising which is buying or renting access to other people's digital real estate, AKA human attention. That's what running ads on meta is. That's what running ads on Google is. That's what running ads on YouTube is. That's what that is. Right? And then we also have content so that, that's you post stuff yourself and build your own audience. So you can do that on YouTube, you can do that on TikTok, you can do that on Instagram. Normally, if you're going to try to sell a service like a B2B offer, you should be doing it on YouTube. That tends to be the best one. It could be you building an email list. You just own the traffic. It's your traffic, right? And then there's outreach, which this is technically cheating, right? Kind of in a way because you just message people for free and that can be done via email. DMs, right? And this is generally how, if you're starting your own business business and you're selling your offer, which is probably going to be a service that you sell to other businesses, you just send a cold email or cold DM to the owners of these businesses and it's free to do. It's just manual get them Saying, so this is super scalable. This is super scalable. This is manual, right? But it's free. That's what you get in exchange for it being free. There's always a trade off. It isn't scalable to execute, labor to conduct it. Yes, there's automation tools to do this. But still, even with the utilization of automation tools, it will never be as scalable as this or this. So this, this is generally free. Free. And now normally when I teach my students, I tell them to normally, what you're going to do, your first two to five clients or like first 10k a month, you need to get through outreach. Why? Because this content is too slow and this advertising is too expensive. You can't afford for it to be too expensive and you can't afford for it to be too slow. So therefore you need to do this first two to five clients, first 10k a month, generally through outreach. I teach them how to do that with sending cold emails and sending cold DMs. This is just tried, true, proven. This is just generally what you should do to maximize the probability you don't lose a shit ton of money. Right? I want to give you a story to simplify this. I want to give you a quick synopsis of how I got started with all this. Okay? So number one, first thing I did Amazon FBA before, but the first service business I did was I ran an Instagram growth agency. Okay? Now what I do here, I did follow unfollow method for people's Instagram accounts. I sold that for $97 a month, $147 a month for different packages. I sold that to like over 100 people. And you have to understand, like, this obviously doesn't work anymore now. But what I was doing was I was one fundamentally, I was help other people acquire traffic, AKA their own digital real estate. I was helping people build their own digital real estate. That's literally fundamentally what I was doing. Okay. One day an algorithm change fucked that whole method up. It didn't work anymore. That company went from 12k a month of profit to $0 a month and profit in literally like an hour. What did I do from there? I was like, I need to make money. I had got my clients for this using outreach. I was doing cold email. That's what I was doing right then. What I figured I'd do is I would sell cold email as a service again. How does that business model work? I would go to a marketing agency or a B2B company and say, hey, I can send cold emails for you in order to book you sales calls, I can book sales calls for you. Okay, so fundamentally, what am I selling there? I'm helping other people acquire traffic. Okay? Which is the same fucking thing as this. It's the same thing. It's a wholly different model, but it's like the same thing. I'm helping other people acquire traffic. An IG agency was doing that and then this is doing that. It's the same thing, right? Okay, so I had that and then I made a Twitter account called Cold Email wizard. And then I sold a course that taught people how to do cold email. Right? I sold that shit to like 8,000 people. It's one of the most successful courses of all time. So what happened? What was I doing there? It was a course that taught people how to send cold emails, which was fundamentally helping other people acquire traffic. Oh, what do you know? It's the same fucking thing as this and this. It's the same thing. It's different, like, mechanism of doing. It's the same shit, though. It's helping other people acquire traffic. Okay, so now what did I do after this? This is when I started making SaaS businesses. So I had a bunch of them. Clean leads, quick lines, contact Ecom, Scrape info, and List Kit. These were all things that like, help people do cold emails. So like lead scraping stuff, the ability to send cold emails. Right, Like, List Kit is the one, is a big one now. What are those doing so would help people scrape leads. It would help people send cold emails. Like, fundamentally, what's happening here? What am I selling? I'm helping other people acquire traff. Oh, what do you know? It's the same thing as that and that and that. It's the same thing again. Okay, so now we make Client Ascension, which is our coaching, is our coaching program. We teach people how to build agencies. And that can be from complete scratch, zero in our AI assisted agency program. Or it can be that you're at like 30k a month plus and we help you scale with ads with Olympia because we spend a ton of money on ads. But like, fundamentally here, like, what is Client Ascension doing? Like, what is it selling? It's helping other people acquire traffic. Wow, again, this is seeming like fucking inception now. It's the same thing as this, as this, as this as this. It's all the same fucking thing. You have to understand, all of this, this whole entire business make money online game is just. It's you acquiring your own traffic, selling shit that helps other people acquire traffic for themselves. That's the whole Fucking thing. There's other kind of like offshoots of this where it's like for instance, you could say like I'll talk about offers real quick. So like offers and I talk about front end cold traff offers. One of the reasons why people fail at making money online is that they try to sell something that people don't want to buy. So you try to get traffic for a bunch of stupid shit that like literally there's no active market demand for in any capacity. We have five business models that we teach people inside of AI Assisted Agency. I'm going to list them out here. Okay, so cold email, Legion Ads and funnels, Content Agency, Ecom Email, AI automation. Okay, so cold email is literally like you're selling traffic again, it's. You're helping people book sales calls. You're helping them like utilize traffic to get an output. You're selling traffic. We kind of already did that. Ads and funnels is when you build ads and funnels for people. Which again is the same fucking thing. It's selling traffic. Content agency, same thing. You help people build content systems or script out content for them, edit content for them. Like why would you want to do that for people? Because if they post content then they can build traffic. You get what I'm saying? So it's the same thing again, it's selling traffic. E comm email. Now you're saying like what's actually happening here when E Com email, you're designing and writing emails for an E commerce brand, but they already have the traffic like the email list. You're literally just like utilizing traffic. You know what I'm saying? It's almost, it might as well be the same fucking concept. You're doing something with traffic, with human attention. That's all you're doing. You're manipulating and using human attention to generate some outcome which is more sales. Right? Okay, so AI automation, like normally this is, is like you can help people build better systems to automate any of these. Like that's generally what AI automation is. Or helping them build systems to, to operationalize their shit better. But again what is that? That it's utilizing traffic. You're doing something in the business that helps them utilize their traffic more efficiently in some fucking capacity. But it's all the same thing. It all comes down to traffic. It's just doing something with traffic. Because again there's only fucking two variables here. It's offer times traffic and that is money. And we can make the assumption that a cash flowing digital asset is anything that produces money. Right. So the only two variables to manipulate or fuck with here are the offer or the traffic. Now, generally, when you approach a business, they have an offer already to do anything with. The offer would fundamentally just be consulting. Like, you change it to this, there's no fucking work involved. It's literally every fucking possible thing you could conceivably be doing for somebody revolves around the concept of utilizing traffic in some capacity. It's traffic. It's traffic all the way down. It's always been about traffic. It'll always be about traffic. It's just fucking traffic. You know, I'm saying, like, you just need to learn how to get traffic, convert traffic. And if you can just do that, if you just know good offers, if you just learn how to recognize what a good offer is, if you see examples of good offers, and then you learn how to utilize or generate traffic, you will make money. You have to be a complete to this up. Now, I have to give a disclaimer here, and I don't want to like insult you specifically watching this video, but some of you actually might be completely. In which case, like, yeah, there's a probability, like, a lot of you could literally make $0 trying to do this. But fundamentally, if your IQ is above 110, conceptually, this is how it works. It's always been this. It will always be like this. It will never not be like this. This is just how it works. It's offer plus traffic equals money. And every single thing that you could conceivably sell in any capacity is literally just has to do with either getting traffic or utilizing traffic. That's it. It's all about traffic. Why? Because traffic is digital real estate. You have to understand this. Traffic is real estate. You can hop on YouTube, buy some consulting, buy some courses, you can watch fucking 40 hours. I don't give a shit what you do. If you just learn how to generate traffic or convert traffic, that is the equivalent like spawning fucking real estate out of thin air. Like, I'm in a downtown right here. Like, a plot of land is probably like fucking 3, 4 million dollars. Like, if you just learn how to generate traffic, you just spawn a plot of land out of nowhere and you build a giant fucking skyscraper, like one of those in the back. You know what I'm saying? Like, that ability is you have to understand this. I want to kind of wrap this up and just talk about business. What the fuck is this? Okay, so say you have an offer. We're going to do an offer, and we're going to say your Offer is cold email lead gen. Okay? So you charge your clients $500 tech fee to cover your cost for the actual conducting of the cold email, plus $300 per call. So that means if you book a client 10 calls, you make $3,000 profit for the client. Cool. Because they're covering your cost. This is a very standard way of selling cold email. Legion. Okay, how do you get your traffic? You yourself do cold email. You literally just send cold emails yourself to sell cold email as a service, right? This probably cost you like 500amonth. And you get one to two clients per month, then that equals money. It's 3,000 thousand times two clients equals congratulations, you have 6K. All right? That's how the shit works, right? But the conducting of this, the fulfillment of the thing, it needs to be orchestrated by a human mental bandwidth needs to be exerted, like labor needs to be conducted in order for the fulfillment of the thing to occur, right? There's just like each client will have like a set of 10 different things that needs to be done. So you have client, right? In order for those 10 calls to be be booked. For instance, I'm going to literally make this as like fucking squares. All right, so we have this right here. So the domains have to be bought, then the inboxes need to be spun up, the lead lists need to be generated, then the scripts need to be written, and then the scripts and the lead listing to be uploaded into the sending tool, and then the campaigns need to be activated inside of the sending tool, and then the inbox management must occur, and then the client must be built. So again, this was domains, this was inboxes, this was lead lists. So you get the point. But what I'm trying to say is that the conducting of box two is contingent upon the completion of box one, and the conducting of box three is contingent upon the completion of box two. And the conducting of box four is contingent upon the completion of box three. Right? So what is this? This is an assembly line. This is a series of contingencies. In order for five to be completed, four must be completed first. So what does that mean? It means you need to generate this in a sequence. And when something is sequential, you can make a system out of it. We use these things called SOPs, which means standard Operating Procedures. It's basically like a step by step click these buttons. Exactly. And now what you do is you make sops for each one of these and then you hire people to conduct the sop. Get what I'm saying? So now if you're not a fucking. What you do is you pay the orchestrators of this system less than the revenue produced by the system. So if you have a pod of two people that work for you that each get paid $3,000 a month for a total of $6,000 per month. And this pod of two can handle 10 clients, that means your cost per client is 600amonth. And the client is paying you on average 3,000amonth. So 3,000 minus 600 equals 2,400. That's how you make money. That's what a digital asset is. Let's take this back. So you have an offer and you have traffic. This is your offer. And then you do some kind of traffic mechanism to generate a client, right? Which results in money. And then you have to fulfill for the clients and it needs to be orchestrated by a human. And you could obviously utilize auto automation to the highest degree possible, right? But generally anything you sell is going to have some kind of assembly line of things that must occur in order for it to be fulfilled, right? Which means it's sequential, which means that you can make a system out of it. So you make SOPs and then you hire people to conduct the SOPs and you pay them less than the amount of money that the orchestration of the system generates. And then that is what results in you making money. That's what a digital asset is. So you have an offer plus trap traffic multiplied by orchestration and that's what gives you digital asset cash flow. This is how an online business works. This is how you generate a digital asset. Now when you have this, this is now an asset because it generates money. This is obviously simplified to the maximum. There's other involved in this. But we're just going to keep it simple. Okay, so you have 20 clients. Each one is generating you a gross profit of. We're going to use the numbers we used above gross profit of 2,400amonth. Therefore your total gross profit is 4,48,000amonth. But say you have some other fixed costs of other fuckery of like 5,000amonth. Therefore you have net profit of 43,000amonth times 12 equals $516,000 per year profit. Congratulations. As your digital asset. People will buy this from you. They'll only buy it from you if you've set up an orchestration to be able to be conducted absent of you generally. But people assign multiples to these. Like for an agency you can maybe get like a 2x. So you'd probably be able to sell this for around like 1m maybe like 1.5m maybe. There's all sorts of other that could occur here. This is kind of like what this is worth, maybe 1, 1.5m or something like that. Now I want to talk about, for instance, you ever hear someone say, like, I want 10 million in stocks? They'll say, I want 10 million in stocks. And you'll say, why? And they'll say, because a 3% dividend will pay me $300,000 a year, which is 25,000amonth. You got to ask yourself if somebody is willing to utilize $10 million to, to make 25,000amonth. What you need to understand is that if you make 25,000amonth, you theoretically have $10 million. It's the same fucking thing. A lot of you guys think you might be like, I want to live a millionaire lifestyle. I want to live like people who have $10 million. Well, people who have $10 million live with like 25, generally around like $25,000 a month in spending, maybe like 30, 40. It depends on risk tolerances. And you get what I'm saying. If this was like a super stable growing business, it wouldn't be like a 2x on profit. It could potentially be like a 5x or a 6x or something like that. Now you gotta understand like there's something called a PE ratio that means price divided by earnings. And this is for public companies. So like let's go back to meta. I'm gonna look it up real quick. What is the P E ratio of meta saying? It's about a 28x. What does that mean? It means that the price of meta as a company is 28 times their net profit. That's literally what that means. So like you and your business over here, we're assuming like for you, your P E ratio is like 2x. But meta, because it's so fucking massive, is 28x. It's literally more than 10 times more valuable per unit of free cash flow it produces. Why is that? Because it's massive. There's this concept called linde. And what lindy means is the longer something exists, the higher the probability it will continue to exist. Like meta, it has a PE of 28x. Why isn't it higher? I'll use another example and kind of explain this to you. So let me look up Costco P E ratio. Costco it says is. Costco has a PE, says 46x here. Why is fucking Costco's value per unit of profit generated higher than meta? But why is that? Meta makes a Fuck ton more money in profit than Costco. Why is that? Because Costco is more stable. It's regarded as more stable because what do they sell, fucking food, Right? It's more stable in a way, right? So you, your little business over here, this is not considered stable. This is not stable. So. And when it's not stable, it's more risky. The reason why you have a smaller multiple is because the probability it dies is high. I'm saying that's how this works. But the concept I'm trying to relay to you is that if you can define, develop like a $25,000 per month profit income, you are effectively living as if you have $10 million. Effectively. Right? It's your business. So the risk profile of you running your own business that you understand is way lower than somebody who would otherwise buy the business from you. It's your business. You know what I'm saying? It's not really as risky compared to somebody who didn't make the thing to run. You get what I'm saying? All right. So I hope this was useful for you. If you did, go share it in your group chats or whatever the. Your telegrams or your whatsapps or your slacks. Leave a comment if you like this kind of video, tell me what you want to see to see next, subscribe to it. And if you want to buy some of my shit, maybe join some of my programs, those are linked in the description. You go check those out. But, yeah, peace. Love you. Bye.