Guide #25 - Leverage

Scaling Your Results

Leverage allows you to achieve 100x the results of others.

For it is like an infinite money machine that multiples your effort, skill and judgement by exponentially rewarding you the more you use it.

Enter in one idea and out comes an unlimited number of applications across the infinite mediums of the internet that earn you money while you sleep.

At least that’s the theory behind “permissionless leverage”.

Illustration by Andrew Yu

The reality is a little different.

Earning yourself enough time and money to operate the leverage-o-matic that sits waiting for you at the ends of your fingertips is tough.

And with infinite opportunities comes finite decisions.

Knowing where to focus your limited efforts to create a enterprise of limitless leverage is where you should start.

Only then will you reap the rewards from the opportunities ahead of you.

So, here’s everything I’ve learnt about how to start, scale and maintain leverage to free you from earning with only your time…

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#1: Choose Your Skillset 📚

“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world” - Archimedes

Photo by Cesar Carlevarino Aragon on Unsplash

To create leverage you must be playing in the right markets.

Too early and no-one will understand the need for your skills. Too late and they’ll find someone to replace you for half the price.

Arriving at the right time means identifying which knowledge is valuable. And which is merely another distraction.

Here’s how you do exactly that…

1) Learn the Right Thing

The beauty of the modern world is that it feels limitless.

And for us in our 20s, this is both a blessing and a curse. For it’s like there’s so much to try and so little time to do it all.

Take your time and be patient. There’s a whole 40, 50 or 60 year career ahead of you in which you will discover your thing(s).

But, once you do, make sure the skill has…

• High demand in the market.

• Limited supply from competitors.

• Knowledge that is difficult to attain & train.

• Creativity that cannot be easily turned into code.

Basically: if no-one understands what you do, but they’re willing to buy from you once you explain it, you’re onto something.

2) Align Your Interests

Spot fads from a mile away & avoid them at all costs.

For by the time it’s been easyfied into a online course and sold as a the next big get-rich-quick scheme you’re probably too late.

And you’re likely doing it for the wrong reasons.

Instead focus on finding work that you enjoy doing for it’s own sake that alights your intellectual curiosity along the way.

Because if it will bore you someday, you’ll never persevere at it long enough to create the position of leverage you need to succeed.

Ignore the distractions. And keep looking at the intersections of your interests. It’s there that you’ll find opportunity and enjoyment in abundance.

3) Don’t Wait to Start

If you wait for the “perfect” thing you’ll never start.

So, get into a habit of testing out those half-baked ideas by committing to the learning journey that you’ll need to go on.

And along the way never forget that time spent on the “wrong” thing is never time wasted. It’s simply reapplied later down the line.

Here are a few ways to get started today…

• Document the journey & build an audience.

• Reach out and learn from the existing experts.

• Create a landing page & see if anyone signs up.

• Work for free to build authority with case studies.

Optimise for building knowledge, reputation & network.

Because you’re going need all three later on.

Guide #18 - Quitting

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#2: Apply The Leverage 🔧

“You’re never going to get rich renting out your time” - Naval Ravikant

Image by Visualise Value

The tools of leverage lie around you waiting to be wielded.

So, once you’ve found the right space to play in you’ll need to pick them up, learn their strengths and apply them to their greatest effect.

For like the farmer who first understood the power of the horse drawn plough, your impact will extend beyond your physical limitations.

And you’ll earn not with your time, but with your mind.

So, here’s how to apply leverage to your solution…

1) Delegate to People

Labour is the oldest form of leverage.

Requiring you to motivate & direct other people to complete work on your behalf, it can be the most difficult to manage.

You’ll need pretty solid interpersonal skills to avoid a mutiny.

But, get it right and you’ll find there’s nothing better than empowering another human being to realise their potential in the world.

Just make sure you learn how to lead & delegate effectively first.

2) Multiply with Money

Money is the modern method of leverage.

Multiplying the decisions you make, it enables you to spend in the short-term to be paid back in a return on investment in the long-term.

And it’s why the highest paid roles, like the CEO or Bankers, are the ones that involve investing money most effectively.

Because a 1% better decision is a lot when you’re working with £££££s.

But, remember money will amplify both good & bad decisions alike. So, ensure your decision making skills are up to scratch first.

Or you’ll just end up making more expensive mistakes.

3) Build without Permission

Permissionless leverage is the new age form.

And it’s possible only with digital products that have no marginal cost of replication, meaning one additional user costs you £0.

In effect allowing you to build once and sell infinitely.

Here are just a few examples…

• Writing ONE newsletter for an INFINITE email list.

• Creating ONE course for an INFINITE no. of students.

• Producing ONE podcast for an INFINITE no. of listeners.

• Shooting ONE video for an INFINITE no. of YT subscribers.

• Directing ONE film for an INFINITE no. of movie goers.

All of which have low barriers to entry and the potential for exponential rewards that amplify your earnings beyond your imagination.

But, require A LOT of upfront work to be realised.

Which is why you must choose an option you’ll undertake for it’s own sake.

And be prepared to build the audience from the ground up.

(exactly what this newsletter is for me).

Guide #12 - Creating

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#3: Evolve Your Mindset 🧠

“Focus on being productive instead of busy” - Tim Ferris

Photo by kylie De Guia on Unsplash

To truly master leverage you must understand it’s principles.

For as the world continues to morph from one great generational shift to another, it is those with a compass that will surf the waves of change.

So, join them by applying leverage to it’s greatest extent…

1) Price Your Value

Being leveraged will detach your value from your time.

Enabling you to be tracked on the outputs and not the inputs that you contribute to those who buy from you.

So, rather than charging a day rate based on your time, seek to understand the value your solution provides and then price it at a % of the difference.

Setting the terms with either:

1. A fixed project fee that costs less than the time saved, productivity improved or money earnt for the client.

2. Or a percentage fee that aligns your interests with your client’s, thereby exponentially rewarding you for your impact.

Both are a higher risk than a day rate.

But, both offer you exponential returns.

And detach your time from your earnings.

2) Learn to Build or Sell

If you’re still struggling with which skill to learn amidst the endless possibilities out there, start with one of the following:

1. Building - Any role that is critical to creating permissionless leverage; videographer, developer, product manager, content writer.

2. Selling - Any role that is critical to earning from permissionless leverage; marketer, salesperson, account manager, copywriter.

Master one of them and your earning potential will be massive.

But, master them both and you won’t need to worry about money again.

3) Stay ahead of the Market

Traditional education is a behemoth that struggles to keep up.

Restrained by it’s archaic curriculums that refuse to embrace the skill gaps of the modern world, it teaches pen & paper subjects to digital-first kids.

But, times are changing. And your unique knowledge is under threat.

As EdTech start-ups are breaking down the barriers to acquiring the most in-demand skills in the marketplace.

So, stay one step ahead by rejecting the idea that education ends in your 20s.

And instead adopt a career of lifelong learning where you continue to attain knowledge with a high barrier to entry.

All while establishing yourself as the go-to authority on the topic.

Because, the world won’t sit still and wait for you. It’ll keep growing exponentially whether you like it or not.

So, it’s your job to stay ahead of the changes, spotting opportunities as they arise and applying leverage to ones that resonate with you the most.

Find your niche. Start small and be consistent.

Then watch the rewards increase slowly then suddenly.

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The Summary

Let’s recap: To master leverage you’ll need to choose your skillset, apply the leverage and evolve your mindset.

There’s your 5 minutes, now take action:

🎤 Recommended Talk: How to Get Rich by Naval Ravikant - A compilation on everything you need to learn to get rich without getting lucky. All completely free via YouTube or Spotify and in just over 3.5 hours.

💎 Recommended Resource: The Almanack of Naval Ravikant - Jorgenson breaks down all of Naval’s endless insights into one of the greatest books of all time. And the best part? It’s entirely free (legally) via the link above.

📹 Recommended Course: Permissionless Apprentice - Butcher from Visualise Value breaks down how you can get started with permissionless leverage in a quick-start course. All for low price of $1.00 (yes, crazy).