Dan Martell - How to Make Money Like The Top 0.001%

00:00:00.000 Have you ever wondered how the top 0.001% make f**k you money? It's not from a salary, 0.91

00:00:06.340 it's not from investing, and it's definitely not from real estate. It's from being a business

00:00:10.580 owner. I know this because I went from broke at 24 to selling my first company for millions at

00:00:15.860 28. Since then, I've built and sold multiple software companies and now own a portfolio on

00:00:21.080 track to be worth a billion dollars in the next three years. Most people think getting rich is

00:00:25.600 about making a lot of money, when in reality, it's about owning a business that's worth a lot

00:00:30.440 of money, and knowing how to increase the enterprise value, which just means how much

00:00:35.460 somebody's willing to pay to buy your business. And today, I'll show you exactly how to do it

00:00:39.440 step by step. Step number one, make your revenue predictable. Kind of simple, but buyers will pay

00:00:46.580 top dollar when they can count on your income, meaning that your revenue becomes predictable,

00:00:52.960 Durable.

00:00:53.560 That's the language.

00:00:54.440 When they look at the trailing 12

00:00:56.060 and trailing 24 months of your business

00:00:58.100 and it just keeps going sideways or ideally up,

00:01:01.120 a buyer's gonna pay more for that kind of business

00:01:03.140 because they can predict in the future

00:01:04.940 it'll keep doing the same thing.

00:01:06.660 Just think about your phone bill.

00:01:07.980 It's why telecom companies are worth so much money

00:01:10.580 because you pay the same every month.

00:01:13.120 And look, when I share this,

00:01:14.140 some people are like,

00:01:14.660 well, I don't have reoccurring revenue.

00:01:16.180 But check it out.

00:01:16.860 My brother's a home builder.

00:01:18.120 He started selling lawn care and snow removal

00:01:20.640 as a contract to the people that bought home from him.

00:01:23.240 My buddy Nick owns a sign company.

00:01:24.680 He started selling maintenance contracts.

00:01:27.000 I sell software.

00:01:28.240 Guess what?

00:01:28.960 Subscription revenue is a beautiful thing,

00:01:31.120 but every business has the opportunity

00:01:33.140 to build a reoccurring predictable revenue.

00:01:35.640 You just gotta be creative.

00:01:36.940 Ask Chad GPT.

00:01:38.220 It's right there.

00:01:38.940 This is what the money people call durable revenue.

00:01:43.100 Durable revenue is great,

00:01:44.340 but what makes businesses thrive

00:01:46.040 is making profit on that revenue.

00:01:48.040 So step number two, make more money on the stuff you sell.

00:01:52.760 The money people will call this gross margin.

00:01:55.820 It's the money you keep after you've paid for the cost of the service or the product.

00:02:00.800 My kids sell lemonade and they will take your credit card and swipe it on their square device

00:02:05.020 and they will charge you two bucks for that glass.

00:02:07.300 They only paid 25 cents for all the stuff that goes into it from the cup to the lemon

00:02:11.140 to the fricking ice cubes and stuff.

00:02:13.360 So that means that they make $1.75 of gross margin.

00:02:16.860 see the best companies focus on increasing their gross margin everything is around a conversation

00:02:22.220 to do that because the more you get on gross margin the more profit you have left over so

00:02:26.460 here's how you can increase your gross margin number one decrease your costs for example if

00:02:31.820 you look at ai and automation many service businesses could automate a lot of their back

00:02:37.180 office costs their people to deliver the service to make it even better from a gross margin point

00:02:42.460 of view if you buy things that are part of what you sell you can go find a different supplier

00:02:47.420 maybe negotiate higher volume for a lower cost all that hits the bottom line from a gross margin

00:02:52.300 point of view number two is you increase your price this is literally the go-to move if somebody

00:02:56.940 bought your business tomorrow the first thing they would change is your prices but you can

00:03:00.780 pretty much increase your prices until you notice your sales conversion drop a little bit and i get

00:03:06.060 it if you raise your prices less people will buy but people will buy if you market properly if you

00:03:12.060 build the brand properly if you deliver a quality product or service trust me the problem is not

00:03:16.940 that people won't buy it's that you haven't built enough demand to overcome putting your prices up

00:03:22.140 and this one is gonna sting and could be quite scary big piece of advice is that drop the

00:03:28.220 unprofitable clients again if somebody bought your business tomorrow they would probably fire the

00:03:33.100 lower 10 of your clients that aren't profitable the ones you gave early deals to the people that

00:03:38.380 that complain all the time,

00:03:39.520 the ones that are outside your target market today,

00:03:41.880 but you kept them around,

00:03:42.940 but they're not really making you money,

00:03:44.540 but you feel bad for firing them,

00:03:46.440 they gotta go.

00:03:47.400 The easiest way to fire them

00:03:48.580 is just put your prices up to a point

00:03:49.920 where they don't like it

00:03:50.760 and then they just self-select.

00:03:52.140 To me, this is why it's so important

00:03:53.860 to increase your gross margin.

00:03:55.720 First off, you make more money,

00:03:57.340 so you have more money to grow.

00:03:58.960 And second, people that buy your business

00:04:01.220 are gonna be more excited

00:04:02.460 because you have more profit.

00:04:04.220 You're more attractive to other buyers,

00:04:05.560 which creates more demand to buy your business,

00:04:07.780 which means the price goes up everybody looks at like revenue as how cool businesses how much

00:04:12.180 money they make but to me revenue is just vanity profit is sanity keeps the lights on but ebitda

00:04:18.900 is value earnings before interest tax depreciation and amortization is a fancy word that buyers will

00:04:25.380 look at because the bigger your ebitda the more they're willing to pay you on multiples but what

00:04:29.940 a lot of people don't know about making your business more valuable is that profits die if

00:04:34.820 if you have customers leaving through the back door.

00:04:37.380 So what do you do?

00:04:38.180 Step number three, reduce your client churn.

00:04:41.060 Essentially keep the clients you got.

00:04:43.940 If you have a bucket and there's massive holes in the bucket

00:04:47.000 and your customers are water being poured

00:04:49.200 at the top of the bucket,

00:04:50.620 the water flowing out is your customers churning.

00:04:54.220 That means the bucket will never fill up.

00:04:56.400 If the bucket's not full, there's no value.

00:04:58.680 Nobody's gonna buy you because it's an empty bucket.

00:05:01.460 Why businesses don't understand this

00:05:03.800 is because they can't see it, they don't track.

00:05:06.500 I've got 100 clients this month, 100 clients next month.

00:05:08.680 They don't go, oh, we lost one, we lost two, we lost three.

00:05:11.160 Over time, that number could be massive.

00:05:14.180 Most businesses are losing 100% of their customers

00:05:18.000 every 10 months, they just don't know it.

00:05:20.260 And the truth is, high churn, 10, 15% a month,

00:05:24.760 kills a company's worth.

00:05:26.560 Nobody's gonna buy a business

00:05:28.500 if you don't have predictability

00:05:30.180 in the customer's buying and keep showing up.

00:05:32.600 Imagine I had a grocery store for the first few years.

00:05:34.540 I had a lot of people buy and my revenues are good,

00:05:36.560 but nobody paid attention that the population

00:05:39.320 around the grocery store wasn't coming back

00:05:41.720 because they came in and they didn't have a certain product

00:05:44.120 or they bought something and it wasn't great.

00:05:45.940 And eventually I burned through the whole population

00:05:48.200 and then I go to sell my business,

00:05:50.100 but I'm slowly dwindling down my revenue

00:05:52.420 because I don't have anybody else to sell groceries to

00:05:54.240 because the word on the street 0.99

00:05:55.140 is I don't got the shit in my grocery store. 0.99

00:05:57.040 I literally have that happening 0.99

00:05:58.660 at a grocery store in my local market.

00:06:00.600 And guess what?

00:06:01.540 Less product on the shelf, staff turnover,

00:06:04.640 zero surprise if that thing goes up for sale

00:06:06.420 in the next six months.

00:06:07.320 And when it does, it's not gonna sell for a lot.

00:06:09.560 It'll be a fire sale on the real estate.

00:06:11.460 The more customers you keep, the more profits will stack

00:06:14.840 because each customer's gross margin stacked up over time

00:06:18.540 creates more profit at the bottom.

00:06:20.100 Think about going to the beginning of time in your business

00:06:22.760 and every customer you got kept buying from you,

00:06:25.580 you never lost them.

00:06:26.600 So all the people on the bottom of this line

00:06:28.480 are the ones you lost, all the ones on the top

00:06:30.600 are the ones you have.

00:06:31.660 Imagine if all the ones you lost

00:06:33.240 ended up on top of the ones you have.

00:06:35.740 That's how much bigger your business would be.

00:06:38.240 So here's how we actually reduce your churn.

00:06:40.520 First, we gotta track monthly reoccurring revenue.

00:06:43.960 Essentially, we need to look at the trend closely

00:06:46.360 so we know where the leaking is happening.

00:06:49.140 This will make sure you catch churn.

00:06:51.220 Most people just don't even measure it.

00:06:52.840 So measuring that monthly reoccurring

00:06:54.460 from the existing customers will show you that.

00:06:56.760 Essentially, you check the amount of customers

00:06:58.800 it bought from you this month

00:07:00.120 And did those customers buy from you again the next month

00:07:02.560 and the next month and the next month?

00:07:04.260 If you know this,

00:07:05.540 then you can measure what's called your growth ceiling.

00:07:07.760 Essentially a point into the future.

00:07:09.980 When you give me four numbers,

00:07:11.240 I will tell you the growth ceiling into the future

00:07:13.660 when you will stop growing based on your current numbers,

00:07:16.240 your current churn.

00:07:17.220 If that sounds like Chinese to you, I'll make it simple. 0.98

00:07:19.720 Click the link in the description below

00:07:21.040 to download my growth ceiling calculator.

00:07:23.160 I'll ask you those four questions, those four numbers,

00:07:25.360 and it will predict exactly when you will hit

00:07:27.960 your growth ceiling and what to focus on

00:07:29.840 to fix it. So now that you know who's churning, the way to fix it is very simple. You have to get

00:07:35.500 your customers to value as fast as possible. I call this time to first value, TTFV, ideally within

00:07:43.420 seven days. But honestly, I call them quick wins. I want to do it in the first interaction. If you

00:07:48.320 join my gym, I want to get you a plan and some wins as fast as possible. If you sell social media

00:07:54.720 stuff, give them a cheat sheet that they can use tomorrow shooting their reels. Even if you do

00:07:58.840 long form YouTube, it got them a result. It got them value. And last but not least, we need to

00:08:04.140 implement a cancellation capture flow. Every customer that leaves is leaving with information,

00:08:10.720 feedback to make your business better. If they leave without you capturing that information,

00:08:17.020 you're missing the opportunity to learn. Speed of growth to make your business valuable is speed of

00:08:23.280 learn. If you get that information from the customer when they leave, then you can implement

00:08:27.420 the fix to get the current customers to stay longer which is going to make your business more valuable

00:08:31.740 so remember first off we got to track so we see the trend second we got to make sure that we get

00:08:36.460 them to value fast and third is we have to make sure if they leave we know why so we can make the

00:08:41.100 product or service better remember how we talked about durable revenue this specifically lowering

00:08:45.980 your churn making the revenue more predictable getting customers results faster will make your

00:08:50.780 business easier to grow which makes it more valuable a sticky customer base makes the business

00:08:55.580 safer to buy. Okay, so now that the bucket isn't leaking, let's make sure we make more money from

00:09:00.840 those existing customers. Step number four, increase the amount of money your customers

00:09:05.260 pay you over time. The money people in the industry, they call this lifetime value of a

00:09:09.880 customer. Essentially, if somebody buys from me once and they keep buying from me over a period

00:09:15.720 of time, I'm going to look on average what a customer spends with me. That becomes the lifetime

00:09:22.000 lifetime value of a customer. If over time, somebody pays me $100 in the state for three

00:09:27.580 years, then I make on average $3,600 by that customer. That's a lifetime value. The reason

00:09:33.740 we want to know this is because a buyer that wants to value your business is going to look

00:09:37.800 how much you spend to acquire a new customer. If that number is low, what you spend to get the

00:09:43.400 customer and what you make is high, then that is a very good business to buy. So there's two parts

00:09:49.020 it it's how much they spend and how long they stick around keep spending i mean if i sell stuff

00:09:54.060 to people that have babies they might only buy from me for two or three years that's fine they

00:09:58.860 might also spend 15 or 20 000 in that period that's a lifetime value have you ever wondered

00:10:04.540 why netflix is worth 521 billion dollars it's because they have subscriptions and over time

00:10:11.740 their customers actually spend more money it's kind of crazy you might have started with netflix

00:10:16.460 and it was nine bucks and maybe you got somebody else's password so you paid zero what happened is

00:10:22.220 netflix over time figured out hey i could charge more right there's a little bit of pricing power

00:10:27.100 and if we stop people sharing their accounts with everybody their cousins and their dogs

00:10:31.580 then i can get those people to pay and that's why netflix has grown their subscription base

00:10:35.980 and the lifetime value of a single account that's why they're worth so much money so here's how you

00:10:41.820 can increase lifetime value of a customer first add other things that they buy or give them a

00:10:47.180 reason to upgrade we got to think about usage based pricing if you think about it if you use

00:10:52.300 software you might have an account for you but if you want to add a team member that's a per seat

00:10:56.540 pricing if it's other devices like netflix those are called screens so they might let you have

00:11:01.820 seven screens if you want to go to eight you got to pay a little extra essentially you might be

00:11:06.380 giving too much away to your existing customers and you have to create reasons for them to want

00:11:11.420 to upgrade so just look at what everybody's using on average and just create some parameters around

00:11:17.340 their usage so they have upgrade paths so you can make more money from the customers because

00:11:21.660 they're using your service more see if they're getting more value they should be paying more

00:11:26.380 for it most businesses are being too generous and that way they're not capturing more share

00:11:31.580 of wallet is what it's called then the second thing is we want to monetize additional services

00:11:36.300 think about if you have a gym maybe you ask yourself what does a customer do before they

00:11:40.620 they come into the gym or what do they do after they leave my gym? Well, before they probably get

00:11:44.860 dressed. Do I sell any clothes? Is there any type of product that I could sell in the gym that would

00:11:50.000 get them to buy from me so they don't go to somebody else? Maybe after they go to the gym,

00:11:54.740 they decide they want to go have a smoothie. Maybe I should have a smoothie bar. When I think about

00:11:59.240 it, I ask myself, what does my customer do three minutes before and three minutes after they use

00:12:04.260 my product or service? Those are opportunities for me to monetize additional services. Last,

00:12:09.380 look at ways to create expansion triggers

00:12:11.660 in your customer journey,

00:12:13.080 meaning that there's something they do

00:12:15.260 that tells you there's an opportunity

00:12:17.240 for you to sell them more.

00:12:18.560 If somebody's coming to your gym six to seven times a week,

00:12:22.680 maybe they wanna work with a fitness coach.

00:12:25.480 Maybe they would like to have a nutritionist.

00:12:27.880 You think about like Dropbox, the file storage software.

00:12:30.700 When you get to 80% of your storage usage,

00:12:33.540 they'll email you saying, hey, you're at 80%.

00:12:35.720 Did you wanna upgrade for a discount

00:12:37.360 to get triple the storage?

00:12:39.220 Those are expansion triggers.

00:12:41.320 Paying attention to how your customers

00:12:42.960 are using your product or service

00:12:44.380 and introducing those prompts

00:12:46.280 will make you a lot of money,

00:12:47.980 which creates more value for your business.

00:12:49.780 A company that grows the amount of money

00:12:52.680 they make from their existing customer base

00:12:54.780 over a year, over time,

00:12:57.100 without adding any new customers

00:12:58.960 becomes incredibly valuable to a buyer.

00:13:01.360 If I have 100 customers that buy from me this month

00:13:04.180 and they spend $10 with me, well, that's $1,000.

00:13:07.200 If those same hundred customers the next month,

00:13:10.160 I lost like 10, but the 90 that stayed spent more

00:13:13.280 because I found ways to serve them better

00:13:15.120 and charge more for additional services

00:13:16.780 and they make me $1,300 that next month,

00:13:19.660 then I've increased the lifetime value of my customers

00:13:22.400 by 30% in that month.

00:13:25.160 That is a very hard thing to do,

00:13:27.220 but if you can figure it out,

00:13:28.480 will make your business very valuable to a buyer.

00:13:31.200 The reason this makes your company more valuable

00:13:33.720 is because it turns your business into an annuity.

00:13:37.700 Think about it, over time,

00:13:39.240 even if you don't add any more customers,

00:13:41.140 if they can become more valuable to the business

00:13:43.660 because you figure out how to create these upsells

00:13:46.220 and sell additional services

00:13:47.560 as a natural process for your customers,

00:13:50.780 the buyer will feel better

00:13:52.260 because they're not gonna be pressured

00:13:53.480 to have to add new people

00:13:54.760 if you're not able to make more money

00:13:56.420 with the ones you have.

00:13:57.540 They know they'll be making more money over time

00:14:00.240 by just having ownership of your business.

00:14:02.580 It's like a life insurance policy.

00:14:05.000 It's like having a 401k.

00:14:07.180 It's like owning stock in the S&P 500.

00:14:09.520 Over time, that has made money.

00:14:12.020 It grows on its own.

00:14:13.500 Creating a business that can do that, very valuable.

00:14:16.380 With that in mind, the next step is crucial

00:14:18.960 if you wanna grow your company's worth.

00:14:20.720 Step number five, don't put all your eggs in one basket. 0.97

00:14:24.740 This is what the money people call concentration risk.

00:14:27.840 For example, if you rely on one big customer

00:14:30.880 for 60% of your revenue, that's concentration risk.

00:14:34.280 If you rely on one or two partners

00:14:36.580 to generate all the marketing and sales

00:14:38.460 for your business, incredibly dangerous.

00:14:41.200 These are things that buyers do not wanna see.

00:14:44.320 I remember when I started going in business,

00:14:45.860 I had a partner that wanted to give me more business

00:14:48.220 and I told my dad and he said, whoa, don't do that.

00:14:51.780 I said, why?

00:14:52.340 He goes, they're already 40% of your business.

00:14:54.780 If you give them more,

00:14:56.720 then they may get up to 60, 70% of your business.

00:14:59.420 what happens the day you don't do what they ask you to do and they take their time paying your

00:15:05.480 invoices and all of a sudden you grew to meet their demand and then you can't cover your expenses

00:15:09.980 because they stop paying your invoices guess what they're going to do they're going to buy

00:15:13.340 your business from the bank that's the risk you run when you have one customer generate too much

00:15:18.220 of your revenue or one marketing channel be the primary one a lot of businesses only have one

00:15:22.520 marketing channel Facebook they don't realize if Facebook shuts down their ad account their

00:15:26.640 business goes to zero. They don't realize that if this key person that everybody loves, that

00:15:31.300 everybody works with, if that person left your business, you wouldn't have a business. Concentration

00:15:35.700 risk. Concentration risk isn't just about how you get your money. It's about where your leads come

00:15:41.080 from. It's about how you deliver that service. It's about where you even get the supplies to

00:15:46.260 deliver the product to your customers. If you only have one supplier and they know that, that's going

00:15:50.860 to be a risky proposition for a buyer. So here's what you need to do to de-risk or lower that

00:15:55.340 concentration risk. First thing is you got to keep your top clients under 15% of your revenue. Ideally,

00:16:01.480 your top three customers shouldn't be more than 30% of your total revenue. The reason why is that

00:16:06.260 I've never seen a scenario where one customer leaving, you know, maybe you won't make profit

00:16:10.800 the next month or the second month, but eventually you'll replace them and you'll get back into normal

00:16:14.940 business. It doesn't create a scenario that makes you unprofitable and not be able to cover your

00:16:19.640 expenses. In my world, I don't want any one marketing channel to be more than 40% of my lead

00:16:25.500 generation. I have a business and at one point, Instagram was 85% of our lead generation. And I

00:16:32.480 went to the CEO and I said, we've got six months to bring that down below 40%. And he did. He went,

00:16:37.960 he activated other channels, he tracked it, he made it a reward for the team if they could accomplish

00:16:42.780 it. So that way, if something happened to my Instagram, which it did because somebody reported

00:16:47.680 as fraud because that's what happens when you build a large channel and it gets locked out for

00:16:51.360 the three four five days that we're trying to fix it with instagram we didn't skip a beat in the

00:16:55.760 business because we weren't reliant only on that channel the reason why this is important is

00:17:00.480 because diversification makes your business safer to run it takes that single point of failure away

00:17:05.760 and that's what buyers are looking for safety in your operations now that we're in a safer position

00:17:11.600 let's clean up the way you run your business step number six write down how everything works

00:17:17.520 some people call these standard operating procedures sops other people call them

00:17:21.840 checklists or systems i like the analogy of playbooks because it's a sports analogy so

00:17:27.040 we call ours playbooks essentially i want a playbook for every department in my company

00:17:32.240 that explains exactly how we think about how we measure how we operate how we review the

00:17:38.080 operations the plays of that department if you don't have them written down then a buyer won't

00:17:44.240 trust that they're going to be able to take the business from you and operate it because there's

00:17:48.500 nothing documented. It's actually why most entrepreneurs are stuck to their business and

00:17:52.660 they can't get free or they haven't built a business that's worth anything to anybody else

00:17:56.740 is because they didn't take the time to just write it down. You have to make it easy for somebody to

00:18:01.700 come in cold, go through your playbooks, understand exactly how you make your secret sauce. That way

00:18:07.820 they can keep making your secret sauce, which means the revenue will keep showing up. McDonald's

00:18:12.980 can open a store in Japan and have a 14-year-old kid make a Big Mac that tastes exactly the same

00:18:20.280 as the one I bought in New York City. How crazy is that? Why? They have a playbook for how the

00:18:26.000 Big Mac is made, where the product is sourced, how the bun is toasted, how the beef and the

00:18:31.060 whole thing comes together. Any person, anywhere in the world, same result. And that's why they're

00:18:36.020 worth billions of dollars. So here's a simple way for how you can build your playbooks. First,

00:18:41.300 I call it the camcorder method.

00:18:43.100 I wanna record myself doing the task,

00:18:45.820 meaning I get to do the work.

00:18:47.220 Let's say it's accounts receivable

00:18:48.380 or scheduling a sales call.

00:18:50.940 But while I'm doing it, I'm recording myself

00:18:53.060 and talking out loud what I'm doing, how I'm doing it.

00:18:56.340 The cool part is then I can use a tool like trainual.com,

00:18:59.520 which is a free tool.

00:19:00.600 You can upload that video and it will create using AI

00:19:04.540 the playbook from the thing that I just set.

00:19:08.020 It's wild to watch it happen

00:19:09.720 because most people are like,

00:19:10.860 I gotta go away for the weekend

00:19:11.920 and document everything I do in my business.

00:19:14.200 And I'm saying, nope,

00:19:15.100 you can actually just run your business,

00:19:16.800 record yourself,

00:19:17.560 and a tool will create the playbook for you.

00:19:20.180 Then we have to store that document

00:19:22.340 into some kind of company wiki.

00:19:24.160 If you use Trainual, guess what?

00:19:25.240 That's what the platform does,

00:19:26.560 but you can use anything.

00:19:27.700 Use Google Docs, you can use Notion,

00:19:29.760 but you gotta put it in an organized fashion.

00:19:32.380 Why does this increase the worth of your business?

00:19:34.420 Because a well-documented business

00:19:36.220 is easier to scale and grow and sell.

00:19:39.200 Once you do that,

00:19:40.520 now you can move to the most important step of the process,

00:19:43.800 which is number seven, build a leadership team.

00:19:46.840 A leadership team is one of my favorite things to build

00:19:50.280 because it's a team that runs the company

00:19:53.080 without you making every decision.

00:19:55.080 I know, this is scary.

00:19:56.940 They're like, what do you mean?

00:19:57.880 What's my job as a CEO if I'm not making all decisions?

00:20:00.700 Well, let me tell you.

00:20:02.340 One is vision, two is money, and third is people.

00:20:05.760 Your job is to pick these folks.

00:20:07.340 and the better you do at picking the leadership team,

00:20:10.480 the more valuable the company gets

00:20:12.660 because a buyer's gonna interview them

00:20:14.680 and see, do you have great people?

00:20:16.620 If they interview your leadership team

00:20:18.160 and they find a bunch of ding-dongs, 0.53

00:20:19.820 you're not gonna get bought for a lot of money

00:20:21.640 because they know they're gonna have to replace them

00:20:23.040 as soon as they take over.

00:20:24.360 But on the other hand, if you do this right,

00:20:27.240 what I'm about to teach you,

00:20:28.680 you will have a business that you may not even wanna sell

00:20:31.720 because it's so easy to run.

00:20:33.380 One of the first things you have to do

00:20:34.720 is empower your team to run the show.

00:20:36.700 Steve Jobs used to say, you know, it's easy to hire somebody and tell them what to do.

00:20:40.880 It's hard to hire somebody and have them tell you what to do.

00:20:43.900 I don't view that we pay people to do things.

00:20:46.440 That's easy to find people to do things.

00:20:48.380 What's harder is to find people to tell you what should be done.

00:20:51.600 When I hire somebody to take over a department or a company, I give them the keys.

00:20:56.380 I give them the ownership.

00:20:58.060 I give them the responsibility.

00:20:59.440 I'm no longer involved.

00:21:00.740 If the emails come in, I'm sending them to you.

00:21:03.300 I'm going to empower you to make the decisions.

00:21:05.180 You want it to be like a sports team where every person plays a position.

00:21:09.700 They know the position.

00:21:10.700 They know the plays they got to play.

00:21:12.060 They know the responsibilities.

00:21:13.400 They know what's required of them.

00:21:15.180 They collaborate with the other people and everybody expects to win.

00:21:19.440 This is where you realize you can't possibly play all the spots yourself and you have to

00:21:23.680 have team members that come on to help you win.

00:21:26.640 So here's how you actually build a leadership team.

00:21:29.140 First, we got to start by hiring somebody to help run operations.

00:21:32.680 At the end of the day, you're probably best doing marketing and sales.

00:21:35.860 Having somebody start to manage the operations and really lead that, own it, finance, recruiting, technology, all the internal stuff, that's key.

00:21:45.300 Once you've got that, then you look at marketing and sales as leadership positions, but you want to stay on them until you build a machine that they can run.

00:21:52.620 Then you have somebody generating the leads and then closing those leads because somebody else is running the sales team.

00:21:57.500 That starts to get you free and build a leadership team that makes the business predictable.

00:22:02.320 Next, you wanna create a dashboard.

00:22:04.140 A simple, clear way to track their results

00:22:07.680 every day, every week, every month.

00:22:09.720 The mistake people make is they track the results

00:22:12.540 for those leaders, that's not leadership.

00:22:15.000 The right way is have them self-report,

00:22:17.500 update that dashboard on a meeting,

00:22:19.580 report to their peers how they're doing,

00:22:21.740 to the numbers, to the targets.

00:22:23.660 That is leadership.

00:22:25.220 You sit back and you coach and correct,

00:22:27.360 but you're not running or driving things.

00:22:29.220 Remember about the ownership?

00:22:30.420 having somebody else that runs a show

00:22:32.840 makes your business more valuable.

00:22:34.820 Then you need to provide a decision framework

00:22:37.200 for those leaders to operate within.

00:22:39.160 So for example, in my business,

00:22:40.340 I have a $50 rule, 50 to fix it,

00:22:42.940 for anybody to solve a problem they run into

00:22:45.360 as long as they tell their leader

00:22:46.660 that they made that change.

00:22:48.380 I also have 500 for managers, 5,000 for directors

00:22:51.800 and 50,000 for C-level leaders in my companies

00:22:55.400 where they can fix anything without approval

00:22:57.980 as long as they let me know that they did that.

00:23:00.420 I do that because it pushes the decision to fix problems

00:23:03.660 down to the people that have the most information

00:23:06.120 to actually solve it,

00:23:07.300 and it doesn't make me the bottleneck of all decisions.

00:23:09.660 And then last, but definitely not least,

00:23:11.900 on a weekly basis, you have to hold a leadership meeting.

00:23:15.060 That way you can align everybody

00:23:16.940 to the vision of the business, to the goals for the quarter,

00:23:19.620 and help them work with them to solve the problems,

00:23:22.280 but only once they've brought to you

00:23:24.140 the problem and their solution and ideas.

00:23:26.920 All of this is wildly important

00:23:28.540 because you produce strong leaders,

00:23:30.420 that reduce the risk to a buyer and even frees up your time to focus on growth the reason why

00:23:35.380 this is so valuable is buyers value companies with proven leaders already in place i just gave you

00:23:41.940 a master class in creating real wealth how the 0.001 of the people actually make their money

00:23:48.580 by owning a business that's valuable to somebody else it can feel like a lot i get it but i'm going

00:23:55.860 going to encourage you to consider this follow the steps look at what areas in your business

00:24:00.520 are missing and just choose for the next 90 days to fix one of those if you do that every 90 days

00:24:06.900 over time maybe in a year you'll build a business that's incredibly valuable not only to you

00:24:12.160 generating massive profits but most importantly valuable to somebody else see your active income

00:24:18.480 how much you make every month is money that's cool what's creating the most value though is

00:24:24.460 what's called enterprise value. And it's the value of the asset called your business to somebody

00:24:29.260 who's willing to buy it. That'll make you rich. And remember, if you want to access to my gross

00:24:33.760 ceiling calculator, just click the link below and I'll send it over to you. Now, if you want to

00:24:37.800 learn how to build a business that runs itself, click the video and I'll see you on the other side.

Dan Martell - October 07, 2025

How to Make Money Like The Top 0.001%

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