0:01

Welcome to Marketing School, the only

0:03

podcast that provides daily top level

0:05

marketing tips and strategies from entrepreneurs

0:08

that practice what they preach and live

0:10

what they teach. Let's start leveling

0:12

up your marketing knowledge with your instructors,

0:15

Neil Patel and Eric Sue. All

0:19

right, guys, before we start, we got a special

0:21

message from our sponsor. If

0:24

you want to rank higher on Google, you gotta

0:26

look at your page speed time. The

0:28

faster website loads, the better off you

0:30

are with Google's Core Vital update.

0:33

That makes it super super important to optimize

0:35

your site for low time. And

0:37

one easy way to do it is use the host

0:40

that Eric and I use, dream Hosts. So

0:42

just go to dream host or google it,

0:44

find it, check it out, and it's a great way

0:47

to improve your low time. Welcome

0:50

to another episode of Marketing School.

0:53

I'm Eric Sue and I'm Neil Batal, and

0:55

today we're going to talk about what leverage

0:57

actually means. So there's four types that you need to

0:59

under stand, and a lot of people talk

1:01

about, oh, you know, if you create content, you going

1:03

to build leverage. If you hire people, you're

1:05

going to have leverage. Right. So nivall, which

1:08

is a billionaire. He found an angelists

1:10

invest in a lot of great companies. Four types

1:12

of leverage, and then we'll kind of go back and forth on this. So

1:14

the first type of leverage is capital, right, that's

1:17

normal. You read about all the vcs out there that

1:19

invest money. Right, you put capital in. You're just

1:21

the investor. You hope the company grows. If not,

1:23

you know, too bad. Number two is

1:26

around labor. So if you hire people.

1:28

One of the highest leverage things you can do, right, hire

1:31

people to replace you. Because even if you

1:33

you're one person, let's see, you're ten out of ten on everything.

1:35

You can't be a ten on a ten across the board. So even if you

1:37

hire ten more people that do a job out of seven,

1:40

that's still a maximum much more output

1:42

than just one person. Right, So you have to

1:44

understand, you know, sure the people might not perform

1:47

as well as you might in the very beginning, and then eventually

1:49

what you do is you hire people better than you, right. So it kind of

1:51

goes back and forth there. So you have labor,

1:54

you have capital, You have code. Right,

1:56

so if you create software, the software

1:58

can continue to get more users. Might have to you know,

2:00

scaling costs with servers that might

2:02

cost a little more as time goes up, but you might not

2:04

necessarily have to add a ton of people. So that's the

2:06

third one. Another fourth one is

2:09

media and media it's becoming

2:11

newer nowadays. It's like, you know, I talk about the one man

2:13

media company, Neil and I have talked about it. But creating

2:16

content, you know, building a YouTube

2:18

or a podcast or a blog following

2:21

that is leverage too, because people are consuming

2:23

your content as you're sleeping, and it's scaling to you

2:25

know, hundreds, thousands, you know, millions

2:27

of people. Right, So again four types of leverage.

2:30

You have, capital, labor, media,

2:33

and code. Okay, ideally, if you can get all

2:35

four of them, you're good to go. And so yeah,

2:38

Neil take it away. Out of all of them,

2:40

what you'll find is it's easy to raise money.

2:42

You can hire people, you can

2:45

adjust code and processes

2:47

and stuff like that. But the hardest one

2:49

that I believe is to do

2:51

as a company is media. And

2:54

the reason being is media

2:57

is something no matter how much money you spend,

2:59

you can't always control it. You can't always

3:01

build an audience, you can't always leverage

3:03

it the way you want either, and it can

3:05

be fickle in many cases. If

3:07

you look at businesses and how it's changed

3:10

twenty years ago. You used to build something and

3:12

then figure out how to go and market it. Now

3:15

your job is to gobble up as much attention

3:17

as possible, build that brand, become

3:20

that media, that platform, and

3:22

then go figure out what business to promote.

3:24

A good example of this is the Kardashians.

3:27

You got the brand, you have the big following,

3:29

and then what do you do? You go release products

3:32

like Kylie Cosmetics. Was Kylie

3:34

Cosmetics their first crack at it? No, Sometimes

3:36

they try to perfume, sometimes they try hair

3:39

extensions, but eventually they

3:41

figure it out. But the hardest part is

3:43

building that brand, building that following.

3:46

It's something that can't easily be done even if

3:48

you have a ton of money. So a good example

3:50

of this to kind of double down on what Neil's saying.

3:52

So if you live at AOC in American politics,

3:54

she's a Democrat, right, she's got eight million followers

3:56

right now, she's in her thirties. Chances are

3:59

she's going to have what twenty fifty seventy

4:01

five million followers, and you know, let's called the next ten

4:03

to twelve years or so so she's building

4:05

media on her own right, and a lot of people

4:07

like what she's saying. Now, then you have let's

4:10

use you know, Republican, let's use Donald Trump. You

4:12

know, a big reason why you look at Donald Trump,

4:14

you look at Ronald Schwarzeneator. I think a big piece of it

4:16

is a lot of people know who they are media right

4:19

and the media unfortunately, this is the

4:21

way it is. If people know who you are, you're gonna

4:23

have a better shot versus people that don't know who you are.

4:25

They know who you are, they know what you stand for. And

4:27

so anyway, without getting too much into politics,

4:29

that's an example of media. But

4:32

let's use Gary Vee as an example. He

4:34

started creating content for Wine Live, where he got his dad's

4:37

business from three million to sixty million a year. Then

4:39

he started Vayner Media. He had the book

4:41

Crush It, which helped build his following and

4:43

that allowed him provide him deal flow to

4:45

invest in companies such as Facebook on believe

4:48

Twitter as well. Same thing with Tim Ferriss wrote

4:50

the four Hour Workweek that was his media platform

4:52

and then now he's got the podcast as well. So

4:55

when you do that, we can even look at the younger

4:57

influencers, right, we can look at Logan Paul as well.

5:00

They have built a huge following

5:02

and all they have to do is ask what their audience wants

5:04

and they can create that stuff. And then you build more

5:06

and more leverage, and then the idea here

5:08

is that you're going to do so well and

5:11

you know, maybe you might just want to reinvest everything

5:13

instead of just paying taxes. So they just continually

5:15

reinvest and the empire gets bigger and bigger and bigger.

5:17

Right, So the media provides them

5:19

the capital to go out and get

5:22

labor, and they can go out and well,

5:24

labor to me is also code as well, right, So they

5:26

can go buy businesses or they can go get

5:28

labor to code whatever it is that they want

5:30

to build, Neil, that's it that I really

5:32

have, you know, Eric, and I can't emphasize enough

5:35

to do whatever it can where you

5:37

can focus on the media, like it is just one

5:39

of the hardest things. But if you crack that and that, it is

5:41

probably the biggest leverage

5:43

you're going to have in your business. Because there's

5:45

people who had more money than Kylie

5:48

Jenner, but yet she created one of the fastest scoring

5:50

billion dollar brands out there just because

5:52

she had leverage, and that leverage was media.

5:55

You can't do that with money. Just because you pour a ton of

5:57

money into something doesn't mean it's going to be big. Yeah,

6:00

go buy a brand, right, It takes a long long time

6:02

to build it. So that is it for today. Go to

6:04

marketing school dot io slash live That's

6:06

alive to learn about our virtual and our

6:08

live events when the live events come back. And

6:11

so that is it for today and we'll see

6:13

tomorrow. We appreciate

6:15

you joining us for this session of marketing

6:17

School. Be sure to rate, review, and

6:19

subscribe to the show and visit marketingschool

6:22

dot io for more resources based

6:24

on today's topic, as well as access

6:26

to more episodes that will help you find

6:29

true marketing success. Tax

6:31

marketingschool dot io until

6:33

next time. Class dismissed.