George Kao argues that a simple business model gives you more freedom. He recommends starting with coaching: sell to 10 clients at $500/month instead of chasing passive income, which he calls 99% skilled scams. Build something honest and simple first.
$5,000 per month.
10 clients at $500/month or 20 clients at $250/month.
September 4, 2015.
In this video, I'm going to encourage you to keep your business model as simple as possible and to keep your life as simple as possible if you want more freedom. So you could say that freedom and simplicity are partners, companions. And if you have the consciousness to keep your business model and life as simple as possible, you will find more freedom in it. Let me give you some ideas about how to keep your business model simple. If you sell to fewer people, your business model will be simpler. So for example, if you need to make $5,000 a month, it is not easy to make 100 sales at $50 a month. Okay. Versus just 10 sales at 500amonth. This is why I love the coaching business model so much. Because in coaching we get to focus on the topics that are naturally interesting to us, whether that's personal growth or relationships or health or technology or productivity or business or marketing, whatever it is that interests you, you get to have a business doing that. And people understand paying a coach several hundred dollars, sometimes several thousand dollars a month for that. So it's a very simple, I think, brilliant business model. Now, one complaint people have is, well, I want to make money while I sleep. I don't want to work so hard. And because they have that fantasy, they create complex business models that almost never pan out. Whereas coaching is very simple, you can get going relatively easily. And once you have a sustainable coaching business model, then you can take your spare time and invest a few hours a week creating a more complex business model that allows you to supposedly make money while you sleep. Okay, I will tell you, I have done business models from selling people memberships that are $60 a month to selling people one time sales of two to six thousand dollars. And I will tell you it is much simpler, much easier, brings more freedom when you sell to fewer people. Now, there is a balance to that because if you sell something that is high price, like $5,000 for a single client, they will have a lot of expectations or $10,000 for a single client, they will have great expectations from you. And in that way you may feel a lot of pressure and stress and ironically, less freedom. So I really encourage you to create first a coaching business model. If you, if it interests you, if you have that inclination to create a coaching business model that allows you to have, let's say 10 clients at 500amonth or 20 clients at $250 a month. This is just to make 5,000 bucks a month, assuming that that's going to work for most of you. And then you can, once you have financial viability, then you can invest some additional time every week to create something that's more passive income. But I've really, really dislike the idea of passive income because trust me, I've spent a lifetime pursuing that, and most of it almost. I would say 99% of passive income systems are skilled scams. So stay away from that. Make honest income first, and then create something that's more supposedly passive. So I hope that helps. Buddy is yelling at some other people, so I should get going. I'll put more information in the notes attached to this video. I wish you until the next video, I wish you well.
