Dan Martell - These Principles Made me So Rich I Questioned the Meaning of Money

00:00:00.000 I'm going to share with you the 11 psychological principles of success.

00:00:04.000 These principles are what the top 1% used to generate wealth into their lives.

00:00:08.340 I've personally used them to go from a broken teenager with no vision

00:00:11.400 to building a $100 million business empire.

00:00:14.520 So without further explaining it, let's start with the first principle.

00:00:17.620 The first principle is the memetic theory by Rene Girard.

00:00:21.200 Have you ever wanted something just because somebody else had it?

00:00:24.060 When I was 23, I didn't care about the latest gadgets

00:00:26.460 until my buddy showed up with a brand new Blackberry.

00:00:29.560 Some of you guys are too young to know what they are.

00:00:31.400 Seeing him with it made me feel like I had to get one,

00:00:33.600 this cool keyboard and all that stuff.

00:00:35.080 But I actually already had a flip phone.

00:00:36.800 Why did I want it?

00:00:38.100 Because he had it.

00:00:39.120 Because I started seeing other people with it.

00:00:41.560 My friend just showed me that it was there.

00:00:43.820 The mimetic theory states

00:00:45.440 that people copy the desire of others.

00:00:48.340 If someone else wants something,

00:00:50.140 you might want it too, just because they do.

00:00:52.500 Have you ever had a friend that gets super excited

00:00:54.060 about some new thing that they really, really,

00:00:55.740 really wanna get, and all of a sudden you're like,

00:00:57.320 maybe I want that.

00:00:58.280 Why is he so excited?

00:00:59.560 it's actually used in marketing today all over the place think about celebrity collabs when you see

00:01:05.720 a new product launch and they have all these celebrities targeted ads where they promote

00:01:10.200 influencers affiliate referral programs i watch carhartt come out of nowheres and everybody's

00:01:15.240 wearing it champion sweaters i don't know if you saw that it's funny because i remember one time

00:01:19.080 hearing a culture expert talk about they said if you want to know what's going to be hot go watch

00:01:23.240 what the kids are wearing in high school they're almost like tastemakers for the culture because

00:01:27.480 they understand the memetic theory is that if the kids are wearing it, then the parents have the

00:01:32.200 desire of what their kids are wearing so they can feel involved. I see it all the time. I see it on

00:01:36.820 TikTok, on social media, and understanding how those ideas get planted and propagate through

00:01:42.280 the market is actually a psychological theory that you can use in your life. Before I share

00:01:47.280 principle number two, we've got a goal of hitting 1 million subscribers. So if you haven't already,

00:01:51.860 click subscribe and turn on notifications, which leads us to principle number two, which is the

00:01:56.600 framing effect have you ever made different choices based on how the options were presented

00:02:01.640 to you think of it this way if you go see a doctor and they're trying to convince you to

00:02:05.400 have a medical procedure which one do you think is going to get you to say yes that the procedure

00:02:09.480 has a 90 success rate or that it has a 10 failure rate which one is going to ease the patient well

00:02:15.400 nine percent success is a lot better than 10 failure how information is presented will

00:02:19.800 actually persuade somebody to make certain decisions and you can use this in all areas

00:02:24.200 of your life there's so many examples you might see out in the world think about going to the

00:02:28.200 grocery store and seeing ground beef 90 lean beef is going to get more people to decide to purchase

00:02:32.840 than 10 fat beef it's not actually what you say you could be saying the same thing it's how you

00:02:37.720 say it and that's where the frame matters so much think of like gourmet steak for 30 that's one way

00:02:42.760 to do it or you could say discount steak 25 but it was 30. some people might decide to do the

00:02:48.760 discount stake because it was 30 now it's 25 so it feels like a good deal political polls 75

00:02:54.920 approval versus 25 disapproval the presentation essentially will shape the perception of the

00:03:00.840 person the information how it's packaged the frame of a message can change its meaning knowing this

00:03:06.600 when you're writing copy when you're communicating when you're doing marketing understanding how to

00:03:10.840 say what you're about to say presenting the information that way will get people to make

00:03:14.760 a decision in your favor which leads us to principle number three which is the ben franklin

00:03:19.560 effect have you ever liked somebody more after they helped you out after they gave you a hand

00:03:24.200 when i was 21 the guy living down the hall from me asked me to borrow my toolbox to fix his bike

00:03:28.920 i didn't even know and for whatever reason afterwards when he came back we had a little

00:03:32.440 chit chat and now i kind of liked him i just lent him my toolbox he brought it back we said hello

00:03:36.680 and eventually we became friends and i realized that that is actually a psychological principle

00:03:41.880 that is something you can use in your favor the principle states that if you do someone a favor

00:03:46.920 you're more likely to like them it's bizarre because we always think that helping somebody

00:03:51.960 else will make them like us not the other way around at the end of the day gets you involved

00:03:56.440 in who they are and what they're doing you can apply this to your sales calls your consults

00:04:00.920 anything in your life all you got to do is have them help you out you can do that by asking them

00:04:05.160 a question about something they might know better than you i think about when i go to the airport

00:04:08.920 and I need something from the person,

00:04:10.740 I might ask them something completely unrelated.

00:04:13.480 Like, can you tell me where the bathrooms are?

00:04:15.100 And they're like, yeah, they're down there.

00:04:16.200 And I'm like, cool.

00:04:16.820 And I go there and when I come back, sounds crazy,

00:04:18.840 but now they're invested in me as a human.

00:04:21.400 So if I ask them for an upgrade

00:04:22.440 or ask them to change my flight,

00:04:23.640 they're more likely to do it.

00:04:25.280 Another way to think about it

00:04:26.240 is a favor done is a favor earned.

00:04:28.020 See, when they help you, they're invested in the outcome.

00:04:31.300 You know, there's one of my favorite lyrics

00:04:32.640 from a Pitbull song called Feel This Moment

00:04:34.560 that says, ask for money, get advice.

00:04:36.580 Ask for advice, get money twice.

00:04:38.240 If you want anything in your life, ask for advice.

00:04:41.500 They'll help you.

00:04:42.380 And what they're doing

00:04:43.160 is they're co-creating the future with you.

00:04:45.860 It's kind of fascinating.

00:04:47.120 The more they help you,

00:04:48.120 the more they wanna see their plan come to fruition.

00:04:51.380 So just ask them for it.

00:04:52.620 Which leads us to principle number four,

00:04:54.360 which is the backfire effect.

00:04:56.160 Have you ever become more convinced of your belief

00:04:58.580 when somebody challenged you on it?

00:05:00.120 I remember when I was 22,

00:05:01.240 I was convinced that a low carb Atkins style diet

00:05:04.700 was the best way to stay fit.

00:05:06.360 I remember a friend sent me this article

00:05:07.980 debunking the myth but instead of me like studying it and reconsidering it i just doubled down i

00:05:13.700 doubled down on what i believed i doubled down around eating meat and cheese and all these

00:05:17.640 incredible things and it turns out there's a different way but what happens is when you

00:05:21.960 challenge somebody it can actually have the negative effect so if you want to get somebody

00:05:26.620 on your side understand that as soon as you get them to disagree with you through their own biases

00:05:32.640 is they can't change their mind the more you push the more they resist think about all political

00:05:38.520 debates around the economy health care somebody has a belief and you challenge them boom they go

00:05:44.120 all the way in even if you show them proof then they're gonna like get on their heels and be like

00:05:48.700 well i just think that's fake news or you know that article is part of a cover-up they dig in

00:05:53.380 hard to get them on your side instead of attacking their belief ask them to explain it to you and

00:05:59.320 somehow that might get you the opportunity

00:06:01.400 to kind of bring them down a different path,

00:06:03.440 which leads us to principle number five,

00:06:05.200 which is the Bader-Meinhof phenomenon.

00:06:07.260 Have you ever started noticing something everywhere

00:06:09.680 after first learning about it?

00:06:11.360 When I was 20, I learned about a rare car model,

00:06:13.880 the Nissan 300ZX.

00:06:16.280 And after that, I started noticing them everywhere.

00:06:19.120 Everywhere as I turned, there was one of those cars.

00:06:21.440 It was kind of crazy,

00:06:22.440 even though I had never paid attention to it before.

00:06:25.200 You might've noticed this with yourself

00:06:26.700 with a pair of jeans, maybe some jewelry,

00:06:28.840 a bag, a house style that you like,

00:06:31.700 even strategies I'm teaching you today.

00:06:33.460 Now that you've heard it, you'll start to see it everywhere.

00:06:36.500 Well, did it just magically come into life?

00:06:38.940 No, they were always there.

00:06:40.600 This theory explains why after you learn something

00:06:42.920 or notice something new, you start seeing it everywhere.

00:06:45.660 It feels like it's happening a lot more,

00:06:47.640 even though it's not.

00:06:48.620 And that's why you gotta be careful what you focus on,

00:06:50.960 what you spend your time on.

00:06:52.420 What I've learned is the universe reveals

00:06:54.200 what you pay attention to.

00:06:55.600 That's why I always say the world isn't as it is,

00:06:58.080 the world is as you are,

00:06:59.620 if you know what you're focused on, you will create more

00:07:02.440 because what you focus on actually expands.

00:07:05.680 If you want that new car, visualize it, look for it,

00:07:08.860 and you'll start seeing examples.

00:07:10.240 You might find out that the person at your work

00:07:12.100 just happens to have that car

00:07:13.600 and you might ask them to take you for a drive at lunch.

00:07:16.040 It's so important because awareness creates abundance.

00:07:19.340 And if you're aware of the abundance in your life,

00:07:21.500 then you can use that to find examples

00:07:23.600 to support your thoughts.

00:07:25.300 I love this theory because it proves to me

00:07:27.460 that what I want is actually in abundance

00:07:29.820 and it's all around me, but if I don't focus on,

00:07:32.100 if I don't think about it, I'll never see it.

00:07:34.100 You could literally be sitting next to the person

00:07:36.200 that could solve the biggest problem in your life,

00:07:38.020 but because you don't realize those people exist

00:07:40.260 because nobody's told you, you don't find them.

00:07:42.260 Think about all the times

00:07:43.460 where you just call it serendipity.

00:07:45.160 We're like, that's so crazy.

00:07:46.140 I was just thinking about that.

00:07:47.700 It's because the Bader-Meinhof phenomenon is always present.

00:07:51.820 Essentially, your brain needs the ability

00:07:54.140 to filter out all the extra information

00:07:56.700 that it doesn't need.

00:07:57.880 So you have to give it priority

00:07:59.340 to be able to decide what it filters on.

00:08:01.720 And that's why you start to see these examples

00:08:04.100 of the things you recently just talked about or learn,

00:08:06.440 even a word.

00:08:07.240 Maybe you just learned a new word you never heard before

00:08:09.180 and all of a sudden people are using it in every sentence.

00:08:11.540 Is it just that they happen to start talking that way?

00:08:13.640 No, it's always been there, but now it's in your filter.

00:08:16.480 Which leads us to principle number six,

00:08:18.240 which is the Dunning-Kruger effect.

00:08:20.200 I'm gonna hurt your feelings right now, okay?

00:08:22.060 So I hope you're okay with it.

00:08:23.140 But have you ever felt a little overconfident

00:08:25.720 about a new skill or something you've learned?

00:08:28.140 You know, when I was 17, I was introduced to programming

00:08:30.480 and I thought at the time,

00:08:32.620 I've gotta be a computer genius.

00:08:34.240 I never touched a computer my whole life.

00:08:35.860 We didn't have a computer in my house

00:08:37.100 and the first 20 minutes of ever touching a computer,

00:08:39.180 I got it to print out, hello world.

00:08:42.360 I know you're thinking Dan is a genius,

00:08:45.000 but I'm telling you that it didn't matter.

00:08:47.140 That confidence came from this concept,

00:08:49.400 the Dunning-Kruger effect.

00:08:50.320 Most people don't realize

00:08:52.020 that they're not as good as they think they are.

00:08:54.460 If you ask most people how good of a driver

00:08:56.620 do you think they are?

00:08:57.300 They say, well, seven or eight out of 10.

00:08:58.960 How good's your memory?

00:09:00.040 Oh, I got great memory.

00:09:01.360 Are you a funny person?

00:09:02.360 Yeah, I think I'm pretty funny.

00:09:03.420 Six, seven, eight out of 10.

00:09:04.860 Most people give themselves a higher score

00:09:07.180 and the reason why is because they don't actually

00:09:09.100 have a lot of experience.

00:09:10.640 So what's interesting about this effect

00:09:11.880 is that the people who don't know much about something

00:09:14.320 often think that they know a lot.

00:09:16.400 Well, those that truly are knowledgeable around the topic

00:09:18.980 tend to doubt themselves

00:09:20.120 because they understand how big and vast that topic is.

00:09:23.140 So just be wary of this principle

00:09:24.800 and leverage it to your advantage.

00:09:26.740 And one of the best ways to realize

00:09:28.380 that the more you know,

00:09:29.880 the more you need to know that you don't know.

00:09:31.620 I know every time I start a new company, I'm probably wrong.

00:09:34.520 There's something about my assumptions

00:09:36.080 it's not gonna work out.

00:09:37.540 And because I have the confidence

00:09:39.220 to figure out how to do it,

00:09:40.600 I don't put myself in a situation

00:09:42.120 where I just run blindly saying yes to stuff

00:09:44.700 without validating and verifying things.

00:09:47.100 And that's typically what early

00:09:48.640 and first time entrepreneurs do.

00:09:50.100 Confidence without confidence

00:09:51.220 is the most dangerous thing out there.

00:09:52.920 knowledge is a double-edged sword so use it for your advantage which leads us to principle number

00:09:57.080 seven which is the illusionary truth effect have you ever believed something just because you heard

00:10:02.360 it several times from different people repeated not because there's any facts or substance behind

00:10:07.560 but just because it was repeated so many times in my early 20s i kept hearing that cholesterol

00:10:12.040 was terrible for your health all over the place terrible cholesterol bad bad bad even though i

00:10:17.160 knew the science didn't support it i started avoiding foods like cholesterols entirely come

00:10:21.880 to find out your brain is 80 cholesterol and it's also a much needed micronutrient this principle

00:10:27.320 suggests that if you hear something false repeated enough times you might start to believe it's true

00:10:33.000 even if you know it's not which is crazy i remember i used to do these events and i would

00:10:37.720 tell the audience how to feel by saying it over and over you know because the feedback

00:10:42.280 forms would come back and say i felt rushed and i was like one second so the next event i ran

00:10:46.360 all of a sudden i started telling people you guys are picking this up this is at the perfect pace

00:10:50.120 everybody's moving along quickly feedback form started saying man i felt perfect and the pace

00:10:55.060 was great why because i said it so many times i essentially use that to hypnotize the audience

00:11:01.260 into feeling a certain way so how do i use this i make sure that i protect myself from it so if i

00:11:06.860 hear something a lot i go cool that's interesting i gotta go verify it for myself because if not you

00:11:11.680 might just adopt it as a truth that's just simply not true so protect your environment and especially

00:11:17.000 the inputs you allow into your mind. I always say trust but verify. Follow your gut if there's

00:11:22.340 an intuition because most people just parrot others and that doesn't make it true. Which

00:11:26.780 leads us to principle number eight, which is the endowed progress effect. Have you ever felt more

00:11:31.280 motivated to finish something because you were given a head start or maybe got a quick win?

00:11:35.620 For example, in 2019, I got on TikTok early and it blew up. 500,000 followers in six months. And

00:11:42.920 that initial traction which was crazy sparked some motivation for me to go all in on creating

00:11:48.920 content it's why i'm here mr beast had the same thing when he was early days just recording

00:11:53.420 himself playing minecraft one of his early videos went viral and then because of that he goes oh

00:11:58.520 if i did it once i could probably do it again so he just kept going and going but nothing new

00:12:03.280 happened for over a year but regardless he was hooked and he's now become the mr beast we all

00:12:07.760 know today, largest YouTuber on the planet. How do we use this? Well, small wins lead to big

00:12:12.960 successes. So if I can get a small win, then I'm more likely to keep building because momentum is

00:12:18.420 only created in the mind. So if I feel confident, then I'll keep doing it. For example, I have a

00:12:24.060 fitness program. The first 16 days is to do a cleanse. The reason why is because I want to get

00:12:29.240 people a result as fast as possible. So on average, people release 14 pounds of weight in the first 16

00:12:35.560 days i do that to get the early win so that they're more likely to stay consistent once i

00:12:40.680 introduce the new macros and my progressive overload training style that's why we use the

00:12:45.560 endowed progress effect to get people the wins so that they're more likely to stay consistent over

00:12:50.280 the long term and by the way if you're interested in my fitness program just message me the word

00:12:54.440 macros on instagram and we'll see if you'd be a fit for my program which leads us to principle

00:12:59.000 number nine which is the ikea effect have you ever felt more attached to or proud of something just

00:13:05.320 Just because you help create it?

00:13:06.780 I don't think so.

00:13:07.700 I know for me, if I'm involved in building it,

00:13:09.640 I'm like proud of it.

00:13:10.960 It's just like when I create strategy with my team,

00:13:13.120 I always have to get them involved in the ideation

00:13:15.940 so they feel invested in it.

00:13:18.120 What you create is a reflection of you.

00:13:20.600 So if you're involved in it,

00:13:21.860 you'll feel better about yourself.

00:13:23.540 Involving customers in product customization

00:13:25.880 or prioritizing your product roadmap

00:13:28.000 is a great way to get them involved.

00:13:29.940 So think of it this way, involvement breeds attachment.

00:13:32.680 When people help build the plan,

00:13:34.700 they won't fight the plan the effort invested creates value i mean it's why ikea has a very

00:13:40.060 low return rate because if everybody's got to make all the furniture and they feel like all this

00:13:44.220 effort went into it it's not as easy to disassemble it and bring it back to the store

00:13:48.300 it also puts all the labor costs on the customer not on the company which is an amazing business

00:13:53.740 model if you think about it people value the things they're involved in so if you ask somebody

00:13:57.980 to help you clean up the workspace they're gonna have more pride around it if you ask people to

00:14:02.140 to help define the plan to overcome a problem.

00:14:05.400 They're gonna be invested in the plan.

00:14:06.980 If you have your team involved in the recruiting process

00:14:10.200 and deciding who you hire,

00:14:11.840 then when they eventually get hired and join your team,

00:14:14.280 they're gonna be more committed to seeing that person win.

00:14:17.000 So they're gonna show up, ask questions and support them.

00:14:19.240 The IKEA effect is probably one of the most powerful

00:14:21.940 leadership strategies that great leaders do.

00:14:24.400 They just don't know that they do it

00:14:26.140 or how to actually do it strategically.

00:14:28.480 That's why I wanted to share it with you.

00:14:29.680 Which leads us to principle number 10,

00:14:31.320 which is the scarcity effect.

00:14:32.960 Now, have you ever felt more urgency to buy something

00:14:35.780 because you thought it was in limited supply?

00:14:38.060 Like if you didn't make the decision right now,

00:14:40.120 you might not get it.

00:14:41.240 I remember a while ago, I was 28 and I was at a seminar

00:14:43.680 and some guy was selling real estate.

00:14:45.840 It was back in the day

00:14:46.900 when the whole housing market crashed

00:14:48.580 and you could buy 10 houses in Detroit for $100,000.

00:14:53.060 I wrote him a check and I became a homeowner

00:14:55.300 of these 10 dilapidated, literally rundown homes.

00:14:59.480 It turned out that in many ways,

00:15:01.500 I kind of got taken for a scam, didn't know it at the time.

00:15:03.760 Even though my spidey senses were like,

00:15:05.780 you probably shouldn't do this, Dan,

00:15:07.120 there was something about getting access to it

00:15:09.280 and knowing it was going away at the end of the day

00:15:11.260 that made me decide to write that check.

00:15:13.220 So here's a big idea.

00:15:14.120 People value things more when they perceive them

00:15:16.580 to be scarce or limited in availability.

00:15:19.080 Essentially, scarcity creates value.

00:15:21.300 The entire luxury industry is built on this.

00:15:23.960 They limit supply on purpose to keep the pricing power high.

00:15:28.320 I mean, I'm into supercars and I will tell you the whole concept around allocations of certain

00:15:33.040 car models. When you see these new cars from McLaren or Ferrari or Porsche, et cetera,

00:15:37.720 Lamborghini be announced like these new hypercar models, they're already pre-sold, which creates

00:15:43.000 this desire for those models that then pulls the whole brand up. The purse industry does the same

00:15:49.100 thing. My wife went and bought a purse. She could buy that model. Those ones on the wall, those are 0.99

00:15:53.580 limited only for select customers if you want that purse you have to buy these three other purses

00:15:58.740 so limited supply increases demand because people want it so it creates this halo effect over the

00:16:04.540 brand when other people have desire to own it here's a perfect example i've been looking at

00:16:09.660 the gt3rs it's a porsche it's a very nice car it's like 350 000 right now and it's not worth

00:16:16.620 the price if you actually look at the investment in that car versus the other cars in the supercar

00:16:20.640 category because it's not technically considered a supercar. I know I'm going to get some hate for

00:16:24.080 that one, but you can't get it. And for some reason, because I can't get it, I kind of want

00:16:29.480 it. But what I've learned is what's rare is precious. And you can use this in your business

00:16:33.860 by making certain offers, certain opportunities limited to a handful of people create the

00:16:39.140 scarcity. So it drives demand, which leaves us a principle number 11, which is the Pygmalion

00:16:44.460 effect. Has someone's belief in you ever pushed you to achieve more? When I was 17,

00:16:49.840 I found myself in jail and there was a guard that noticed my potential. And I'll be honest,

00:16:54.200 his encouragement, his words pushed me harder than I ever thought was possible. And I ended up

00:16:59.980 working to get released to a rehab center and change my whole life. That one conversation

00:17:04.740 transformed my internal belief of my value. It was because of this guard's belief in my potential,

00:17:11.120 the Pygmalion effect. It's a real thing. When people have high expectations of someone,

00:17:15.600 that person tends to perform better

00:17:17.400 because they want to live into the expectation

00:17:20.320 the person has for them.

00:17:21.480 See what one person believes the other can achieve.

00:17:24.320 And it's the coolest thing in the world

00:17:25.480 because every person has this superpower.

00:17:28.140 Your expectation for somebody else

00:17:30.000 actually shapes the outcome.

00:17:32.020 If you believe they can do it and you tell them,

00:17:33.860 you'd be surprised what they'll step into.

00:17:35.940 And it doesn't take much.

00:17:36.980 You could see somebody doing something

00:17:38.280 on the side of the road, take one second and just say,

00:17:40.460 hey, I want you to know, that's impressive.

00:17:42.360 And then all of a sudden that belief in them

00:17:44.180 creates the reality in their world.

00:17:46.680 The Pygmalion effect is one of the most powerful ways

00:17:49.480 as a leader to get people to expand into the possibility

00:17:53.140 for who they think they are.

00:17:54.360 Most people are insecure about their capabilities

00:17:57.800 and having somebody else express their confidence

00:18:01.140 in who they are.

00:18:02.020 I always tell people like,

00:18:03.480 borrow my confidence in who you are.

00:18:05.180 If I'm working with you,

00:18:06.100 I want you to know you're incredibly talented.

00:18:07.860 And if you don't feel confident, that's okay.

00:18:10.080 Just borrow mine.

00:18:11.700 I think you're amazing.

00:18:12.860 Dan thinks I can do it.

00:18:13.780 I could probably do it.

00:18:14.740 Yes, you can.

00:18:15.760 Because I'd rather you swing for the fences and miss

00:18:17.980 than not take the swing in the first place.

00:18:19.880 If you want to learn the top 15 laws of the top 1%,

00:18:22.320 click the link and I'll see you on the other side.

Dan Martell - November 26, 2024

These Principles Made me So Rich I Questioned the Meaning of Money

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