This Is The Most Important Concept For Your Agency

So we have all been told that hard work is the path to success as a business owner. And it really isn't. The hardest working business owners, you know, work just as hard as the people who aren't successful. And that's not really by coincidence. The real goal for your business should not be massive amounts of effort. It should be to build massive amounts of leverage. In today's training, I'm going to walk you through the 4 types of leverage that every successful business owner creates. Their labor leverage, capital leverage, code leverage, and media leverage. And I'm going to go through a few examples about how you may build each of these. I know in my own businesses, I've been trying to build and focus on building as much leverage as possible. And I've seen a lot of people who started the same time as I did achieve a fraction of the results I have because Quite frankly, they didn't build enough leverage. So by the end of this training, you'll be able to take a look at your own business and take a look at your own time and hopefully see what you should be doing. So let's start off with going over one of the most famous quotes about leverage and one of the most philosophical quotes probably of all time. And it's, give me a lever long enough and a fulcrum on which to place it. And I shall move the world. It is from an ancient Greek philosopher called Archimedes. And I think he was right on here. He's probably not applying it to lead generation or some of the stuff I talk about on this channel, but leverage is the most important thing to create in every area of life. And I think most people don't even know what it is. I was preparing for this training today and I looked at a few definitions on You know, dictionary.com and elsewhere. And I read a few blog posts. I listened to what other people— I even talked to some of the AI tools. And the best definition of leverage that I want to use here is the difference between what you put in and what you get out. So if you put in 1 unit of effort and got, you know, 1 unit of leverage, you basically have no leverage. If you put in 1 and you get out 10, you have a substantial amount of leverage. If you put in 1, you get out 1,000, that's even more and one in a million, that's even more, right? So I want to talk about something very, very important. And I want to have three examples here. On the left, we have the average person. On the middle, we have myself. And on the right-hand side, we have Elon Musk or someone that successful right now, the most probably successful business person in the world. I would say that's hard to argue. So at the left-hand side, You know, we have the average person, the average person, as you can see, and obviously as we know, has 24 hours just like I do and just like Elon Musk does, but the results that I have gotten in my life absolutely dwarf the results of the average person or the average business owner. Let's just say, let's just take something simple and say, you know, to get a $10 million a year business. I think is a 0.1% chance, which means 1 in 1,000. And I have built several businesses more than that. So even there, you could just, let's just say that I've worked to build 1,000 times as much leverage as the real person, absolutely mugging them. Right. And then there's Elon Musk who has, you know, $800 billion personal net worth. And then he's built companies worth much, I have no idea, but let's just say, let's just say $2 trillion could be more than that. So just as I, let's just say, mog the average business owner, Elon Musk mogs me at an even higher rate. I also have 24 hours in the same day. Elon Musk has 24 hours in the same day, but the results and what they build and what we all built with our time is just so much different, isn't it? So in the video, I kind of want to talk about the following thing. I want to talk about the four quadrants of leverage. I want to talk about the funnel and the system that I talk about on this channel, quite frankly. And then I want to talk about how that system is specifically designed to build leverage. And then we'll break down how it builds the certain forms of leverage. We'll start with capital leverage, then we'll go to code leverage, then we'll go to media leverage, and then we'll go to Labor leverage, and then we'll finish off differentiating the, like, between the depth of leverage and then the quantity of leverage, because we all, we want to build all 4 types of leverage, but we also want to build them deeply. So, you know, if I could invest $1 million and I got $1 billion in return, that's more leverage than investing $1 million and getting $2 million in return, for example. So the quality and the depth matters just as much as the different types of leverage do. So if we look here, this is the leverage cross, the 4 types of leverage. I believe this originated with someone named Naval Ravikant. He had a blog post about it, but media leverage, like quite frankly, let's just explain it. And you're living it right now. I've recorded this training and I'll post it on the internet, you know, several hundred, maybe 1,000, maybe 2,000 maybe 10,000 people by the time I distribute it to YouTube, the written versions on my newsletter and that kind of stuff. All that kind of stuff. Maybe they'll see it. I only had to record this video once and then everyone's going to see it, or more than one person's going to see it. It's not like I had to come to your house right now or get on Zoom with you and explain this to you and then everyone else at the same time because I've recorded it. So that's a form basically of media leverage. Another form of code leverage is I'm going to film this video and then I'm going to put it into Claude and say, please take the script and repurpose it for Twitter, for LinkedIn, for Instagram, for TikTok, for Facebook, for my newsletter, for a blog post. And so on. A form of capital leverage in many forms, but a good example would be if I know I have in my ad funnel, I could put in $1. And then I could get $3 or $4 out. That's a form of capital leverage. And then labor leverage is there are certain tasks that I don't want to do because I want to have more time to build more leverage. So I delegate and outsource them, right? So that is an example of how it'll play in the context of what we talk about. And we'll go over other stuff too. I want to do examples of business leverage and then like at all levels, not just the kind of stuff that I usually talk about, So this is the funnel and the marketing system that I recommend everyone build. And I recommend people build it because it quite frankly incorporates many types and quantities of leverage. And that is why when I run my businesses on this, I get such a far superior result than someone who maybe does half of it or a quarter of it or none of it at all. Right. So let's go and let's break it down here. Cause I have some stuff here. Like there's different forms of media leverage in this funnel. So we have our YouTubes, we have our newsletter, we have our short form, we have our podcasts, we have our written content, all the platforms. But we also have stuff like creating case studies, you know, doing collaborations with other people, doing interviews and guest speaking either virtually or at events. So a lot of this here would follow in the— I'm gonna go with content and the partnerships kind of stuff, right? So some examples of what I've done recently is I've committed to posting every single day on YouTube, 1x per day on YouTube. And let's say each video on average gets 1,000 views. That could be repeat viewers, that could be new ones, who knows? But in basically 1 hour per day is how long it takes me. I can basically get 1,000 or so people via YouTube to think of my ideas. Hopefully they resonate with them, or I don't know why they would continue watching. Win them over to my way of thinking and eventually A percentage of them are gonna want to learn more, are gonna go to the website, are either gonna download my lead magnet or they're going to go even further and book a call and potentially become customers, right? Compare that with someone who perhaps all they do is cold calling and they have to work. I don't know how many cold calls can you do an hour? Probably about 60, maybe 100 if you are doing it the most efficiently. If that person wanted to get 1,000 people as reach times 100 an hour, they would have to do 10 hours, right? And that is an example of the quantity for that person. So let's just do YouTube for me. Let's just do cold call for someone else. But then we talk about the quality. YouTube for me. Having someone watch 30 minutes or an hour of my content builds me up as, you know, kind of an authority in their mind. A certain percentage of people are going to think I'm very smart and they're just going to want me to do it for them. And that leads to a lot of money for me. And then the cold call example is like, they don't, don't know who they are. They are likely just kind of being bothered by this person a lot of the time. And it does nothing to kind of build this cold caller up, the long-term strategy that builds their brand and builds their business. It's just kind of a form of labor right now. Of course, we'll talk about later that we could outsource this cold calling in terms of labor leverage. We could maybe get to 200 dials an hour. I don't know much about cold calling, to be clear. Who knows if we're using the right code, as in the right softwares. But it's just very easy to see when you do this, how different it is. Let's take a form of partnership leverage, which media, and let's just say that I go and I do this quite frequently lately is I go maybe once every 2 months. So let's go 6 times per year here. I'll go speak at an event that has, I don't wanna exaggerate, but in the past year, 50 to 6,000 people. And usually this is gonna be, let's just say, 3 hours to prepare and 1 hour. So that's 4 hours of time to, let's just say, reach 1,000 people, but also with extremely high authority and stuff that I can repurpose as social proof later. Let's just take the same cold caller. So 10 hours to reach that 1,000 people that they cannot repurpose this stuff. It does not really do anything to make them look smart or communicate their ideas. A lot of the time, the person you're cold calling was just doesn't even remember your name or your business name. It's just something like that. Right. So that's a form of media leverage. And there's usually, this happens with content. Usually this happens with partnerships, both in some cases, but it's very, very strong to do this. In my opinion, the 3 biggest forms of capital or of media leverage you want are YouTube/podcast, which are gonna be long form, cuz long form is what gets you a lot of money. The second one is gonna be newsletter. Newsletter is an interesting thing for a couple of reasons. The first reason is it's a steady stream of con— like a steady stream of consciousness from you. To them. It feels very personal. It's one of the biggest authority-building things you can possibly do. And secondly, the newsletter is so good because it's the only kind of social audience that you own, as in you own the email list. It's like no one can really take that away from you like they can on a social media platform where the algorithm changes or you get banned or, you know, whatever. And you can reach them whenever you want. So if I post on YouTube, maybe it'll show to 100 people first and then 500 and then 1,000, or then 5,000, 10,000 if it goes well, like, who knows? With your newsletter, you can reach people anytime you want. They might not open it, but they're gonna see your name in their inbox. They're gonna see the title of the, the subject line, and it's just very strong like that. I'm also gonna add here. A book, cuz I don't think there's any form of media leverage now that I think about it that would be better than a book. If someone reads your book, it's probably the best piece of content to build authority and do anything like that that you could possibly do. A book, a white paper, you know, that kind of stuff. Newsletter is kind of like a miniature form of that. And then the third is gonna be what I call media partnerships. So that is gonna be stuff like you speak at their event. Or you get interviewed by them, or you go on their YouTube channel, or you speak for their community, or you, you know, go on their podcasts, you name it. By far, these are the 3 most important forms of content leverage you can. And look at me. So I had a, a video that got 200,000 or so views. I believe I posted it in February 2024. Think about that before versus after for me. I just made the video kind of randomly. It was a case study about how I went from $0 to $900K. And while that's a great story, I was still the exact same person the day before I posted the video versus after, right? But the day before, I had no views of this, you know, video. And the day after, I was well on my way to getting 200,000+ views and millions of dollars as sales as a result. Still the exact same person. And this is a good, you know, thing to understand about, like, I was the same person before versus after. The only thing that happened was I was lucky enough or fortunate enough to get a very good piece of media leverage. And that's an example. So let's just say I was making from that offer that I was running $100K per month before, and then it went to you know, $700,000, $800,000 per month, just because of one thing. That is a form of really deep media leverage. So, you know, you can understand kind of that. So let's move on to some other forms of media leverage that, and then we're going to move on to the next, but we have all of these and case studies are great because you can show your results. You have to make the case study once and many people see it, especially in the sales process, but let's move on. The next is capital leverage. So some of these are, you know, not true forms of capital leverage in what most people would think, but I think they're very, very, you know, valuable as it relates to the overall marketing system that I teach. Some examples that we'll talk about, you know, Elon Musk, he's raised a lot of money. He's acquired companies like the highest form of capital leverage, probably. Is raising money and acquiring companies. I don't think there's any other form of capital leverage that would be higher than that. But in terms of our lead generation system here, I like to zero in on between 2 and 4, depending on how you count. The first, like I said before, is the paid ad funnel. When you get a paid ad funnel that really works, it really kind of is like a money printer. If you know that you could put $1 into something and get $5 out, and you could just kind of keep doing that and keep scaling that up, like that would be an infinite form of capital leverage. And you can do that with paid ads. Takes a lot of skill. It takes the right offer, but there's almost no more scalable form of leverage in terms of, you know, the type of stuff we talk about this channel than a paid ad funnel. A kind of second order consequence of that is we have so many leads of our paid ad funnel, right? That now we have kind of how I would say, change the laws of supply and demand in our favor. Now there is more demand for our supply instead of where most people are, where it's the other way around. So what we can do there is what we, we can raise prices, high prices instead. And that's a minor, or not a minor, but it's a second order consequence of having so many leads where now you basically have more capital leverage because you're providing the same thing at a higher price, right? The difference between the leverage that we're gonna talk about is the difference between what you put in and what you get out. You're putting in the same in and now you're putting more out. And then those high prices leads to higher margin and higher margin leads to— we'll call them A-players for this— more competent people. And then more competent people, like, remove yourself from the business so you can get more leverage. So in terms of what we talk about here, the paid ad funnel is probably the highest leverage in terms of capital, but there are so many second and third order consequences of this. You know, that paid ads leads to more leads and clients, which leads to higher prices and more margin when you're hiring more people who will come up with ideas on their own. And then you'll be removed from all of the responsibilities. So you, as the owner who created the leverage in the first place, can go and create even more leverage. There's not too many other forms of capital leverage, at least as we describe them in this funnel, but That, and then outside of this, raising money and acquiring businesses, probably the biggest form of capital leverage you can have. Let's go to the next one, which is code leverage. So essentially the biggest companies in the world are nowadays are making the most use of code leverage, right? You think of Apple and everything they've been doing, like either in terms of hardware code or software code. You know, Facebook and Google's ad algorithm probably lead to the couple of the biggest, you know, companies on Earth. Amazon is basically a shipping company with code. You know, they have their website, people buy it, their software gets item from point A to point B as fast as possible. So nowadays the biggest companies are making the best use of code leverage. And that's unlikely to change anytime soon, especially with AI, you know, Anthropic, OpenAI, Google. I'm sure I'm forgetting lots of AI companies, but there's probably no better form of code leverage in the future than AI. In terms of the funnel and what we do here, let's just do this so we can use AI to write our paid ads. And even do some UGC actors. We can use AI to not necessarily write our content, but repurpose it. We can use AI to send our cold emails for us, or not. We can use, you know, code with, you know, software to send our cold emails and cold DMs. We can use software to send out our email flows. We don't have to do those manually. We can use software to send out our newsletter. We don't have to copy and paste that either to everybody. We can use code leverage to basically record our VSL and host it so everybody can see it. We can use code leverage for our pre-call flows, and we can use code leverage, you know, basically Zoom to do our sales calls. We don't have to fly out and talk to everybody in person anymore like you used to, and so on. There's many ways to do this, but when you build this funnel, like basically everything is going to be built off code leverage. Imagine if you had to write every ad by hand these days. You had to film it, you had to edit it yourself. Like that is much slower, much worse form of leverage than you basically give it the gist, AI writes 125 ads for you in the form of AI actors. You know, you put in the AI actor, you make it, it's edited already, you upload it, much easier. Like I said before, the content, you no longer have to go one-on-one and explain like this whole video to you. I record it once, put it on the internet, you watch it. Cold email, you no longer have to send it to everyone individually. Same with cold DMs. Even in our cold call example, that's much more efficient these days with all these software tools than it would be just going through the phone book. But there's many forms of code leverage and the more code leverage you have, typically the more capital leverage you have, cuz you're gonna have less costs and therefore higher margins and more money to redeploy. So there's many, many forms of code leverage in here and The biggest companies, of course, are using code leverage more and more and more. A funny thing to think about is that before the invention of the calculator, it's, it is said that people just had floors and, or companies had floors and floors of businesses of basically human calculators who their job was only to do calculations all day. And now that's all gone with the calculator. Just like a lot of— and then the calculator was made obsolete by, you know, Microsoft Excel. And now it might be not made obsolete, but now it might be done with AI and it just keeps going and going. Code leverage is likely to progress the most and the fastest out of everything in the world. And the final one is labor leverage. And I want to add a couple of these. So like people think So for example, differences between who you can put in, like difference what you put in, what you get out. You know, if you can basically get the same job done, but you hire someone overseas in India or the Philippines or Africa or South America, you're getting the same, you know, you're getting more for what you put in. You're getting more profit or the same thing. Partnerships is a great one too, especially white label referral media. Those ones I talked about earlier. You know, you are getting one partner, the same time and effort it takes to get a partnership as a client, but you're getting so many more clients out of the partner in return. You know, systems, what usually would take someone X amount of time if they're going through a system with SOPs will take them half the time or a third of the time. And then the ultimate form of labor leverage is when you get big enough and have a high enough vision to get people into your business to work for you who actually have a brain and can think. These people are very rare and as such, they command a high salary and a lot of upside, but it's very, very, very strong when you have labor leverage in your funnel and in your company and in your life like this. So for example, you know, you can hire someone to script out all of your ads and edit them. You can hire someone to post your content, not necessarily to make it. You can hire an appointment setter to do your, you know, outreach. You can hire a partnerships manager to take all of this. You can hire someone to help you set up your VSL and your live workshops and your newsletters and stuff. Obviously hire an appointment setter, someone to manage your community. Obviously you're going to hire some sales reps and admin people to connect, collect social proof and keep reinvesting. But there's certain stuff in here that I wouldn't recommend, such as building your lead magnets and building your offers and, you know, at least filming your content. But anyway, there's lots of stuff and it's easy to see when we spell it all out like this, why some people can get such a better result with all of their leverage. You know, for example, myself in comparison to the average business owner, and then Elon Musk dwarfs me in terms of leverage and it's not even close. So it's very true and it's very important business theory that if you're not doing something that can increase your leverage, you should ask yourself, can I delegate or automate this, or should I even be doing it at all? And when you do that, you're going to find yourself making a lot more money over time.