Read time: 5 min

Hey my friend!

How insane would it be if you could take home $100,000,000 a year?

You will be set.

I will be set for sure.

How cool it would be if you could make so much money to be financially free, improve your life, and your family’s life, and use your money to help those in need.

Because there are so many people who don’t have an advantage in the competition like you and I do.

Some people don’t even have internet and they live in poverty because they don’t have certain resources.

But by making so much money you and I can go and impact generations that will come out of poverty and have a fair chance to win.

Making this much is not as unattainable as you would think.

You don’t have to be Elon Musk.

From Rags to Riches

Let me introduce to you Alex Hormozi.

The guy is an excellent businessman, and he inspired this article.

It was particularly one idea that blew my mind.

But let me tell you his fascinating story (how he went from sleeping in the warehouse to a $100M company).

Everything started when he decided to leave his job to start a new venture.

Since he was passionate about fitness and health, he decided to build gyms.

He opened his first gym in the state he didn’t know anybody, in the city he didn’t know anybody, and in the warehouse where he slept on the floor with no AC.

The situation was so bad that he didn’t even have a place to shower, so he showered in LA Fitness.

But that wasn’t the worst part.

His the worst 6 months yet to come:

His mom got into the hospital and he had to fly out to see her. In that city, where his mom was, he started his first company - Gym Launch which led to gyms in 5 locations.

Then he got a DUI.

He decided to sell all his gyms and put money into some new venture but the processor in the bank got shut down and he lost all the new money he had made.

So he lost everything.

His team and Alex started doing gym launches for others to recover from $0 but, in the end, all the gyms they launched started asking for refunds and his bank account went to -$150,000. Alex had to get credit cards because he had employees to pay to.

Eventually, he had to shut down his business.

But someone called Alex and asked him to show how to launch gyms.

That’s where Alex noticed an opportunity to sell his experience, “his secrets.”

It led him to making $100,000 in 4 days and switching to licensing his process of gym launching.

Then he scaled that business with his girlfriend to $2M from a kitchen table in their rental.

Finally, after making a gazillion with Gym Launch, Alex and now his wife started a new company called Aquisition.com which makes $100M a year.

How insane is that?

How did he build such a profitable business?

He managed to do that because of one fundamental idea.

The Power of Leverage

The one big problem of society is the belief that to make money you need to work your ass off.

But have you noticed that the “hardest working” people barely make over $60,000 a year and live from paycheck to paycheck?

If that’s not the indication of the limiting belief, then I don’t know what.

We were instilled that to make money and live happily, we need to grind ourselves to the dust.

It is one of the biggest propaganda of rich people (who know the truth) to keep people working.

It’s better to motivate and inspire people than to force them (especially free-spirited Americans).

But I want to show you the truth I learned about hard work from Alex Hormozi.

He redefined the idea of hard work and introduced to me a powerful principle that I’ve heard before but never understood.

You will never want to work 9-5 and make $17 an hour after understanding this principle.

You will make so much money that your parents will think you are doing something illegal after implementing this principle in your business.

Who works hardest?

So who does?

It is believed that

Work = output.

So if you want to work hard you need to increase the output.

But it is not the full picture.

We forget one more very important variable - leverage.

Leverage is how much you get for what you put in.

Warren Buffet has more leverage than the CEO of Apple.

If the CEO of Apple spends 40 hours working to make $50 million, then Warren Buffet spends 40 hours (if any since he got employees doing it for him) evaluating where to invest which makes him $500 million.

So Warren made way more output with the same hours and probably with less effort.

That’s the leverage.

Who works harder?

I would argue it is Warren Buffet because of our new variable in the equation:

According to the new definition, the person with the most leverage works hardest.

This is where creatorpreneurship shines through.

It is capable of creating an unbelievable amount of leverage (but we will talk about it in the last section).

Leverage Pyramid

The question is how to leverage. What creates leverage?

Let me introduce to you the concept of leverage pyramid that I heard from Alex Hormozi who heard from Naval Ravikant.

This pyramid shows 4 things that can bring leverage to any business and life:

• Labor

• Capital

• Code

• Content

Labor - leverage happens when you hire people who are smarter than you in specialized areas and let them shine through.

You put in several hours or a week to hire the best employee and they bring you 10X results by being skilled and working 40 hours a week.

Capital - leverage happens when other people give you money that they worked hard for and let you invest, so you get, for example, 20%.

You didn’t put in many hours of work to earn that money but you still get 20% of it.

Code - leverage happens when you create one piece of code that costs almost nothing and replicate it an infinite amount of times which means an infinite amount of people will pay for it.

You spend, let’s say, a week to create software but it makes you money for the rest of your life (that’s leverage).

Content - leverage happens similarly to code.

For example, Mr. Beast can make one video, and millions of people will watch it for a long time.

He gets more for what he puts in.

Content can also be courses, webinars, e-books, licensing, etc.

Content is almost free to create so there is no marginal cost to it.

If you incorporate all of them, you become Mark Zuckerberg.

Why is that?

1. His friend and he created a piece of code - Facebook.

2. He has labor (a bunch of smart engineers and marketers) to work for him.

3. Facebook is based on content that people create and capital that people put in to advertise on it

Because he has been incorporating all 4 levers, he makes 9-figures (billions) a year.

Leverage is so powerful, it’s crazy.

Leverage is not business-exclusive, you can use it for a non-profit organization and ministry to multiply the impact.

The conclusion is obvious:

Leverage is the secret ingredient to 4-hour days and 6 zeros in your pocket.

It is the reason owning a business is attractive to people.

If you don’t utilize this knowledge when building a business, you will fall behind.

Success requires leverage.

How I will use this principle to make 8 figures:

My mission for the next 25 years is to make $9 million a month to gain financial and time freedom and bless impoverished communities with resources to teach them “how to fish” and share the Gospel with them.

I know it is a lofty goal.

But how?

By incorporating components of the leverage pyramid.

Here is how I am gonna do it:

1. I will start a consulting business by testing different offers

Consulting business is the best and easiest way to start making money immediately and get feedback on the idea of the business (offer).

Consulting will allow me (and will allow you) to learn and iterate on the product or service I will be selling.

It is a good business model for starters because I can also charge premium prices.

The only downside is I am trading my time for money.

2. I will transition to courses

After I learn and get feedback on my offer, I will be able to package my teachings that bring results and offer them as a course.

I will be making money while sleeping.

Here is when I start leveraging content.

3. I will continue building a personal brand

This step will be going simultaneously with the step 1 and 2.

By building a large audience, I will be able to sell my courses like crazy.

Not to mention, it is also a very enjoyable and useful learning experience.

This way I am using another content leverage

By this time, I will be making at least 7 figures.

4. I will invest extra money into other companies

In this step, I am going to leverage capital which will skyrocket my wealth.

I will use the extra money my business will be generating and invest them.

5. I will find a way to leverage code and labor

I will create a piece of software (I don’t know what yet).

I might leverage labor but I am not sure about this because I want to stay small or only by myself (one-person business).

Steps 4 and 5 are not specific, yet, because it is further into the future.

Along the way, I will be figuring out how to help those communities and create a non-profit or do it without creating one.

I am not sure.

Set a mission for your life.

Outline general steps and stick to them.

Until the next time, my friend!

- Merdan

P.S.

Go back to Alex’s story and try to find the leverages he used.

P.S. If this letter was educating or entertaining to read, could you please share my newsletter with others who you think would like my content? Just share this link: https://creator-chronicles-letter.beehiiv.com/subscribe

P.P.S. Bereket means abundance and blessing in my native language - Turkmen.