I want to talk about how to build portfolios and bank accounts so big that you get to choose to work again but you never have to I have a belief that we've been told some lies those lies have become so pervasive in the world that we live that we call the LIE the norm and one of the lies that we've been told is this word that for my parents at least and maybe some of you can can appreciate the same thing for my parents this lie was so real that it became a goal and it
was one word retirement retirement that one day years in the future when my knees hurt when I've got a little bit more pounds on when I have gray hair I can eventually ride off on the Carnival Cruise Sunset and uh and I can stop this thing that I've done for the past 60 years what a bizarre concept but the real truth is this people do not retire from lives they love you'll never retire from a life you love in fact what do you try to do when you love your life you try to not die
and so the idea today for us is that we figure out a way to love the life that we live to lean into other people and then eventually our mind is so open and our life is so full that we go the step further which is to try to not die and I have five items on the agenda for us today the first agenda is I want you to leave here no knowing how to buy a percentage of a company with your mind I know that sounds a little crazy but we're going to try it
I want you to learn which is already you already have this part open how to never trade your time for money again and I want you to learn how to set up structures that pay for work today for years to come AKA annuitize your income I also want you to flip your script on something I want you to think about why you should charge less for something today in order for you to get a bigger percentage of it in the future and we're going to break that down and then the last is how to make
offers so good on a deal the owner asks you to do the deal now I was listening to some of the people talking about how to make offers on H on houses how to find their pain points and if this opens your mind slightly by the end of this presentation I want you to start thinking completely different where when you start to make an offer to somebody for a percentage of their business for a percentage of their asset they are actually the one trying to pitch you to do it you're not chasing deals you're not
chasing people you are getting them to chase you and that's what I call the expertise to equity framework now I know a lot of people come on here and there's a dancing bear and it's like fireworks inspirational video motivational quote and we're not going to do any of that we're GNA make some money today does that sound okay instead all right you guys can Tony Robbins with Tony Robbins and you can make some money with pce and I all right now the idea all started when I worked on wall W Street this is me on
Wall Street working for somebody else and what was fascinating about this guy whose name was Dan is Dan made a ton of money but I didn't realize how much money Dan made until one day he showed me his big huge fancy new house he bought like an almost over the toop house like a house that was so big it makes Pace's house look small you guys seen Pace's house the internet is pretty big and and I remember thinking God Dan like you've been here for 10 years but you make way more than I do if
I make a million bucks a year you must be making millions and millions and millions and I really thought that the real answer was salary right I thought it was the money that he was making in his salary that seems reasonable to me and instead of that I realized it had nothing to do with that when I asked Dan this question it changed my life forever and so I wanted to share it I said Dan can you explain to me how you get paid because I think I'm missing something and he said well what happens
in private Equity firms when you're at the partner level you own a part of the company you not only own part of the company you own part of every deal you do and you own part of every fund you're a part of so he's like so Dan actually ended up leaving the company after let's call it another five or seven years and can you imagine you leave a company where you are a W2 employee with all the benefits of W2 employee uh employment you get ownership in the company while you're there you leave five or
seven years later and you're still getting paid millions that sounds weird right and yet there's an entire industry in which they do that every day and so I said Dan how would somebody like me get something like that and he said this line to me which has made me more money than anything else I've ever done and it was find out what you're good at and use it to get ownership find out what you're good at and use it to get ownership and I said that sounds kind of esoteric but once I institutionalized it it
changed just about everything and so I started asking Dan well if I was to do that what would be the best way to do it and he saidwell when you go to a location so you guys want to get to the airport from here you want to get out of here are you gonna like whatever Road you're on just sort of hope that the road that you're closest to on most comfortable with is going to eventually take you the most direct route to the airport does that seem reasonable you're going to try to find the
most direct path to wealth and yet what do we do what do we ask people when we talk to them like for the first time we say hi I'm Cody what's your name and they go hi I'm Dan and Dan and I go Dan what do you do for living that's what we do but the way we got to what we do for a living is usually how our parents our friends we kind of knew somebody that looked rich and happy that did it we've never actually weed or Google Google Maps our way to the
fastest route nobody has ever told us that so I thought okay if I wanted to optimize what I do every day while I am working for making the most money humanly possible what would I want to know and I'd want to know something like this what you're looking at here is from 1989 all the way to 2010 private Equity vers S&P 500 AKA public stocks return private Equity meaning ownership of private Assets in some way shape or form now look at the difference between the two I'm no mathematician but Blue Line looks better huh You'
probably take that if you could all right well that was just one time period what if we go from 2000 to 2021 what do we see we got a blue line up top we got a red line that's public equities huh interesting so we make one switch from buying Google Facebook meta like they tell us to do every day on CNBC where they create entire media channels in order to sell us into more things that have a lower return than what the richest people in the world do and I go okay what about if we
look at it as something on a a risk return ratio basis basically over to the far left we've got cash this is the least risky asset class all the way over to the right we've got emerging market equities most risky asset class right typically emerging market equities investing in let's say Africa or I'm from Latin America Latin America would be pretty risky cash less risky unless you're under a Biden regime with the Fed money but you know who am I to say this line between the two look at them cash to the left private Equity
to the right you have the highest returns and the lowest risk profile what does that tell you that if you got to play a game in which you found the fastest map to money it would be spelled private equity and so I started thinking about this and I thought well if we want to be rich and I am talking Jeff Bezos maniacal laughter Rich we would probably play the private Equity game we would own private companies and if I haven't convinced you of that already let me tell you one more anybody in the audience know
who these three guys are these are the three three of the richest men in the world three of the top five richest men in finance in the world we've got Leon black to the left uh founder of Apollo we've got Henry kravis KKR one of the biggest other private Equity companies and we got Robert Smith at Vista so three of the richest guys in the world all got there from owning private Equity here's my beat I think instead of those guys owning it all many of us should own more of it and let me tell
you why I know that to be true because sometimes I do wonder what God thinks about rich people because I don't know we got Leon black who paid $138 million to Jeffrey Epstein seems like a poor move we've got Robert Smith $139 million biggest uh tax evasion payment ever to the IRS the richest guys in the world play games we can't even imagine because they have Google mapped their way to the fastest outcome using unfair advantages continuously continuously and continuously and they never share their homework is there anybody in this room right now who is
a private Equity AKA you invest in individual companies and you are a general partner in the audience right now no one maybe let me tell you why they're not in this room because don't share I've been one real estate you guys are unique actually you realize that there is an ecosystem in a community in which if I help one then I become richer too through an interchange of ideas leads and opportunities these guys don't share and so that is why 28% of the Forbes 400 list is run by these guys this is why they own
boa Raton they own half the world and why sometimes people don't like rich people because they are not reaching the hand down and that is a huge mistake I think every time you make a dollar figuring out a way to help somebody else make a dollar is probably a pretty good thing and so that's why we need you not my best look this was my graphic design team but that is why we need you so today I'm going to show you the exact process for how I started building Main Street holding company contrarian thinking C
and right about now this is where people go oh by the way Cody all those guys you showed me you know I forgot to tell you I wasn't bored with a silver spoon so how do I buy private companies when I don't have a lot of cash and you know what's crazy about that you're not even allowed legally to say things like how to buy a business with zero dollar the government does not allow it sit on that for a second why because they think you're stupid they think that you don't know how to delineate
between what's true and what's false and so they want to think that gatekeeping is okay and that all of us should have to have millions in order to make millions and I stand categorically against that because thank you I think you either make the rules or you get ruled that's right and we don't want to get ruled here so we're going to take this back we're going to take this idea of what you know and get it into ownership how about some talking Nerdy To Me let's start with some notes okay words mean things definitions
are important I want to start with expertise to equity here's the definition of expertise to equity can you contribute your time effort and expertise into a business in exchange for a percentage or ownership of that business now the important part about this is if you know how to speak the language you can learn how to manipulate the language if you learn how to manipulate the language you can learn how to make money through the language that is the only international language which is green and so it's really important that every time we speak a word
we know the definition and if there are words here that you don't understand I want you to know what those are those words are Shields that the really really rich use to protect the house you guys could play a fun game and you could Google terminology and private equity and you would find things like iida you would find things like adjusted iida you would find things like uh dbpi you would find things like expense ratio you would find this world of words that is used to block you guys out so we're going to make sure
that we don't allow gatekeeping today when I do expertise to equity deals there are three ways I like to do them I want in my deals to either get a percentage of Revenue a percentage of profit or and a percentage of what I call value or the actual valuation of the company if and when it sells now a lot of times when people think Equity they only think value right but we want both and let me tell you why because can you eat potential no can you cash flow and play pay your mortgage off of
what you say a valuation is of something before they sell a company no and so we are going to make sure when we do deals to get Equity you guys get both distributions that cash flow and equity in the deal which is what gets you big huge chunky bank accounts now typically people when I talk about Finance probably not in this room but typically people think about oneone level thinking of money and whenever I think of one-one level of money I hear this word I hear this word monies and I think of this guy anybody
else boret show me your monies H because I think we were kind of taught this oneone level of how do I get monies well I get monies because I do work and I pay for things that is the only uh interpretation I can do so if you're Mexican you sound like Borat if you're Russian you sound like Borat I'm going to just save you guys for many others the second level of thinking is that trading time for money is not actually what we want to do that's 202 level thinking but where we actually want to
go is past 202 level thinking we start to get into how to use other people's money or if you guys are in private Equity how to fill your pipelines like Ron Burgundy but the thing that most people don't teach us is they don't teach us 303 level of making money 303 level of making money is really different and I want to explain it to you like this how do you get money in deals so big where it feels like you should have no opportunity to get a deal let me introduce you to Ryan Reynolds who
is part of a mobile company makes no sense why would Ryan Reynolds a very good-look I might say sorry husband uh member of our hollyw cabal get a percentage of a company that made a billion dollars and why would he get it for how much do you guys think he paid for that company 0 who would do that deal well he understands the game of expertised equity Ryan got it because he has audience he understands marketing if you've seen their commercials they're pretty snazzy he has expertise in how to distribute something to many people and
get them to buy he has what's called a name trust transfer AKA I like Ryan I trust Ryan I might use mmobile he has a team to execute on it and he has zero dollars but a beautiful smile and this is one way to get expertise for Equity but then there's another way there's like this guy Drew Brees you guys know who this is all right I'm not into sports so I was like I don't know does he play soccer now Drew owns all these companies you can see here which is interesting if you think
about it because you can't see because it's a little little but do you think that many people watch a football game and then want to buy mosquito repellent is that a natural transfer no I mean I don't watch the sport but tell me I don't think so so why would Drew get a percentage of every single one of those companies because private Equity is so smart they used him like Ryan Reynolds he became a part of this company called franworth where they do deals where they take a percentage of companies based on Drew bre's name
a bunch of characteristics from Drew and their expertise in raising money so we're going to steal their homework we're going to figure out how to do deals with our brains and at this point some people might go Cody I don't know what to tell you I'm also not famous and so can I do these deals if I don't have biceps like the rock or I'm not a silver fox like George Clooney and what I'll tell you is you can and I'm not going to spend much time here and there's going to be a bunch of
words on it but this is to show you one of the most powerful things in the world which is when somebody shows you what they've done what does it make you feel that you can right they're normal they seem average intelligent they've done it why can't you and so I'm going to show you Hans Hans did a deal just like this was an employee changed it to bonuses sold to private Equity zero dollars owned part of a business or Ross who owns part of an ebike company in partnership with one of his buddies who needed
some help with sales so now let me show you how I do it let's do this firsthand so we have a venture capital fund this Venture Capital fund is called contron thinking capital in this fund we invest in a bunch of different deals normal totally normal but the key that I want you to take away so when you structure the next deal for you to raise third party capital in an unfair advantaged way and to get Equity without as much money as the normal person I want you to think of deals like this so we
just invested in two companies company a and Company B company a we did a 2X cash investment in additional advisory shares for every dollar that we put in so what does that mean if I give the company $100,000 I say hey startup that is the soft wear for laundromats hypothetically uh I want to invest in your company I'm going to give you $100,000 but on top of it I want to tell you problems that laundr mats typically face because I own some I want to introduce you to a few people who are going to help
you grow in this space I want to show you my process for getting sales and for that I want $200,000 worth of your company it's called advisory shares and the second portion I say hey company I'm going to invest $100,000 in your company but I want 20% of contract value generated by CT us used to buy additional shares so what does that mean it's like okay I'm going to give you 100K but if we drive another $100,000 in leads to your business I want just $20,000 worth of those leads in shares in equity to the
company and what I want you to see from this is what is possible when you understand the language of deal terms it will completely change how you view making money the idea is you do not have to have Leon black level of cash to make a big impact you just have to have a better story and that better story should start with something that I call a flywheel an investor flywheel and every single one of you has this whether you realize it or not let me show you what mine is so that you can see
what yours might be so we do VC deals and cash loin deals on this left side in the middle we have our rather big audience and on the right hand side we have of our community now our community feeds our audience our audience feeds our VC deals our VC feeli deals feeds our audience with content and vice versa and so it's that idea of have you ever seen a Watermill where you essentially if you were to to push it the first time it's quite hard right to start anything from static position creates a lot of
physical force and friction but after you've gotten it moving it moves without any additional electricity and this is how your business should feel eventually how many of you business owners have ever felt how awful it is running a business when you're first starting raise your hand if it's been awful starting a business raise your hand if you started a business and it wasn't awful ever oh good no Liars in the room love this it's awful but raise your hand if you've then felt that there's a moment there's this beautiful moment in time where it starts
to work without you pushing it have you felt that bu business owners oo and I promise you there is this moment in whatever it is you are doing where it will feel so effortless you will feel a little guilty about it like sometimes I'll talk to pace and I'll be like how you doing man what's going on he's like I'm in Montana I'm kind of offline for six days I'm like excuse me I'm like well what are you doing next week he's like yeah I'm GNA kind of fly all over the place but I haven't
been in the office in a month so I should probably go by this is not a dream it is part of what is called your flywheel process and you get it by doing what told you about in the beginning which is what I'm going to explain right here we consider ourselves value out investors right and that's like such a cliche term right now it makes me itch slightly saying it but for this company that we invested in we said hey why don't we post about it a little bit why don't we make some intros and
let me mess with your copy and for that we drove 30 product demos which is a lot for a B2B SAS software with one post that drove $60,000 in annual reoccurring Revenue now why that's interesting is because that6 ,000 in ARR is interesting because when you go to sell a company that's in software do you know what a multiple is how much does a SAS Company sell for typically somewhere between 10 and 15x revenue so time 60,000 time 10 and that's what one post is worth for this company think about that for a second now
I started out by telling you guys how you make money how do you make money is not by learning tactics and doing things for yourself it's by making so much value for somebody else that they'd be crazy not to do a deal with you but here's a tough truth is that if you don't know what you're worth you'll forever be underpaid and if you do know what you're worth you'll never be underpaid again most humans and let's play a game how many people here are W2 employees have some amazing how many of you guys know
how much money you drive every single dollar to the company like I make $100,000 a year I drive $1 million in Revenue to the company I'm going to say 3% of the you know hundreds of hands in the audience so how do you know what to negotiate more for if you don't actually know what you're worth and I want you to think about that in every single sense of the word now let's figure out how to find your worth here and whenever I think about this another voice comes into my head a voice that I
can't get out of my head really that makes me wonder individually very nice how much how much much is how much are we all individually worth and I know it feels heavy and that's why I make a little joke about it because it's hard for us if we don't have a lot of confidence to realize the value and the worth that we can have you guys feel me on that sometimes maybe you don't feel like you're worth what you even May dollar for dooll be worth at your company maybe you feel so much like you're
not sure what you're worth you don't even want to ask the company what you bring in you're scared of the answer but let me tell you something how many companies you think stay in business if they pay their employees more than they bring into the company Z zero and yet so many of us have no idea what worth we drive in the world and I want you to change that now we're going to ask you four questions and if you answer these four questions we will teach you everything you need to know about determining your
value in order to do deals four questions to Leon black minus the Jeffrey Epstein sound good first is what is your expertise or experience everybody in here has some component of it we're going to break that down second what can you give instead of time third what are you willing to give or do don't just tell me what you want tell me what you are willing to do to get it and fourth what is that worth what value can you drive so let's start here what's your experience or your expertise we're going to start with
a few models so this is the time to bring out your phone you can take all the pictures you want you can steal my homework fastest way to an A+ start by listing specifics your experience or skills are you good at Marketing sales scaling you are going to write down in the experience and skills side all the things that you are uniquely skilled at and then you're going to write down the industry is that you know we humans do really bad with this hi I'm Cody I'm here to help with what yes that's not very
useful If instead I said to this room right now if I said to this room right now hi I'm Cody I help businesses increase their sales inside of the southeast Us in multifam how many people in here might want that exact same thing shout it out or raise your hands so that's like 30 people in the room with one very specific Niche that want the exact thing that I am uniquely skilled at so your skills are always somebody else's needs the problem is you're too scared to figure out what you're worth and you're too scared
to tell people that you are willing to solve their problems The Next Step what can you give instead of money now money is great actually I love using money if I can it's one of the highest leverage things you can do but if you don't have it let's use something else what you can see here is What's called the value Matrix and you can do this exact same thing it's how much time time you're willing to give this is the least useful metric unless you're a babysitter kids probably need you to actually be there just
about anything else I don't care how long it takes you to do something I just wanted done second is skill third is advice that's a thing that you are uniquely skilled at Fourth is connections people that you know fifth most valuable outcomes don't tell me who you know tell me what they're going to do for me and I want you to list these out the truth of the matter is if you internalize this quote you probably don't need to listen to anything else that you can beat 99% of the smartest people out there by simply
working harder than is rational and this is something we believe intensely at contrarian thinking my company to the tune that this week my coo who's sitting here at Chris Piper uh had one of my other employees calling this week hell week for us because we're in five different states in five days doing speeches and we got a new business that we're launching and we're investing in somebody else and when Chris heard her say that he stopped her and he went hell week why are you calling it that and she said oh I mean it's just
kind of a joke right that seems innocuous why is Chris such a jerk Chris come on but instead he said your words are really powerful and the things that you say out loud will become the realities for this week and so instead of you calling it hell week I want you to call it Easy Street week and every time something's hard I want you to go this is super easy isn't it because a weird thing happens to us little mammals that derive from apes is that we believe the words that come out of our mouths
and we believe them so much that it leads to us going from making $400 an hour for a 10hour Consulting gig to earning part of a business that could go to $5 million in earnings with no time commitment expected in the future like Dan Sullivan your words have a lot of power be careful what words you use now this is where we get to the what are you willing to do to get it so anybody knows who this guy is this is Bill Perkins author of die with zero he's become one of my probably closest
mentors and Bill Perkins is a hedge fund manager damn nearra billionaire if not more and um and I was at Bill's house right here this huge Compound on Lake Austin multiple locations is beautiful and we're walking and talking and I was really excited to pitch Bill something I was going to pitch bill this idea of what I was building in small business land so you can imagine you ever had that feeling where your life I'm like you come home to your partner you're like I can't believe what I'm just happened today this is going to
be huge let me tell you about my idea and your partner just like shits all over it does that ever happen to anybody like just like a shin kick right at your exclamation point so I'm telling Bill all about this and all of a sudden Bill looks at me very quizzical and he goes do you think that you have been around small business for so long that small has infected your thinking now young Cody would have been like was this idiot know as I walked out of his $30 million house to my Prius but older
Cody was like huh this man has more than I do in many ways what does he know that I do not and so I thought about it and I came back to him and I said bill I think you were right and the idea I had at that time ended up not becoming the idea and the idea that I ended up going with I just invested millions in and Bill just gave me three $3 million to invest alongside [Music] me and what's crazy is this idea might fail but it is so big that even if
we fail we will create something incredible and that's why I want you guys to internalize something that the best way to stay poor is to take advice from people whose lives you do not want right we've all done it how many times Have you listened to Aunt Sally tell you why are you working so hard when Aunt Sally lives in a double wide and has three ex-husbands and two cats I'm sorry 12 cats we have to be careful it doesn't mean that we can't listen to people who are on different stages of our financial climb
it doesn't mean money is the ultimate indicator of human it is not the case but it does mean that we have to be really careful whose words we let inside of us and ultimately when we are going to pitch oursel in our offer to somebody else we we better make sure that we pitch them something they care about let me tell you how takers pitch in a deal they say I will take I don't know $5,000 up front and a percentage of the business if we hit XYZ here's how winners pitch I will take one
fifth of my fee or if you're real uh confident I'll take Z of my fee but I'm going to take a percentage of The Upside if I grow your dental business buy 10% I want Z now I'll work for Zer but I want 5% of the company on a go forward basis I want 5% in distributing equity on a prata basis every dollar that you distribute to yourself I get a dollar that's called prata and then I want 5% of the value of the company when you sell it cool cool that's how winners negotiate now
the hard part is figuring out what are you worth so let me let me tell you the way to not do it the way to not do it is to be time based I will work in the business for 100 hours tell me business owners and bosses do you care more if your top employees work 100 hours a week or actually do their job and achieve the thing you want them to do it would be number two right of course the same thing for all of us that have teams so instead of that offer you
say I will increase the value of this business by X I will drive you more clients I will operationalize your business I will make introductions I will stop the pain of the fact that you're a terrible operator but you're a great Visionary let me come operate it for you how many people have you guys seen how many partners Pace has in his business he's got like he's got like an Entourage of him behind him and why because Pace would be the first person to say I'm not really a details operations guy I'm like kind of
running around town flight tracking buying RV parks in Montana but what does he do he finds the people who are the details people then he gives them a cut of the business and what does Pace do Pace makes that the offer which is exactly what you guys are going to learn how to do now here's how to do this in real time I might say something like what if I can guarantee that if I add 300K in value to your business I could take 15% equity in the company how could we reverse engineer so we
could make this offer to somebody and they would actually take it and we would know if this is reasonable or not for this business that seems hard right how much work do you guys think you'd have to do to figure out if this was a reasonable offer for a business shout it out how many hours do you think 10 hours 20 hours 50 hours 5 hours 30 seconds mother let's do this okay 30 seconds here's how scenario one we need to know what the current business is we need to know the revenue we need to
know the profit we need to know the valuation and then we're going to have an ask Cody I don't know any of that about the business let's play a game um stir in the green glasses what do you do for oh I know who you are oh this is I already know some stuff about this guy so I got an unfair Advantage we got the plant guy in front you guys like the plant Guy this is actually perfect cuz I think Pace did this with you actually after talking to me ah this is like the
universe okay anyway so the plant guy you sell plants and you post about it online right to simplify much more beautiful and eloquent than that but right okay so he sells plants let's say these aren't real numbers obviously let's say that the plant guy has a business that does a million dollars in Revenue now how would I figure that out well might be a few different ways to figure it out one if the plant guy has social media I could look on his social media and I might be able to see if he has an
Etsy store how many orders has he had on Etsy I might be able to ask him because business owners are weird we tell you guys our secrets could you imagine going up to somebody you're like how much money you worth they're like yep let me tell you not normal you go up to a business owner they might tell you nine out of 10 but let's say that he wouldn't I used an example yesterday that was kind of useful so if you wanted to calculate how much money we were making off of this event right now
if if I was like Pace say I didn't want to ask Pace how much money he made I'd go okay there's about 2,000 people in the room times 8.97 a ticket right so I would make some assertation about how much money that is let's say that it's not this number but it would be let's say it's a million bucks well then I'd go huh I don't know how much profit he's making off of this how could I guess how much he's actually putting in his pocket well I could Google really quickly average profit margin for
a large event Company online and really quickly it would show you that the margins are about 20 20% so now I'm down to $200,000 then I'd go for a valuation of profit multiple so I'd say well Google Magic Machine can you also tell me how much do events companies get sold for so if it's not just a one-time event but an annual event akaa company then those companies sell for 5x looks like they sell for 5x profits not Revenue the internet tells me this So within 30 seconds I have a rough enough assertation for a
business owner to go oh this lady kind of knows what she's talking about she at least has a ballpark and I probably would phrase it like this you know plant guy do you you know I would assume your business does somewhere between1 and $3 million in Revenue I I know that your industry is about 20% margin I've seen the multiples they sell for about 5x and guess how I know all that Google but I don't tell them that right they don't need to know our secrets then the second part I'm going to go okay well
if I know that this event does that per year what if I could get it from making a million dollars a year to another 300,000 1.3 million well then I would know that I would drive $60,000 in profit right that's 20% and then I would take that 60,000 and I'd time it by five because that's a multiple of the business and then I'd have my equity percentage 15% we get taught and get scared about valuations and calculation so that we run to Wall Street and they tell us what our businesses are worth and they tell
us what we should do with our money and they tell us that we should trust the banks with our money mistake in many instances and yet that's all we need to know to have a very rough evaluation for a business so right now is anybody in this audience does anybody in this audience sell their services to somebody else like you're you you consult or you have it okay perfect how many of you guys who sell your services actually take equity and distributions from companies and not just a straight fee your payment so let's say 4%
of the you know couple hundred hands that go up the second that you leave here you could recoup your cost of this tix ticket x 100 by changing one thing the way you do your offers and if you do that you could be like Robert who basically knows everything a dude could know about lawn care and this is me giving him a plaque for him buying a multi-million dollar Lawn Company based off his expertise and the only way that he knew how to do this was very simple and there we teach lots of different ways
to do this there are plenty of different ways but it's not just a revenue increase there's something called there's a value if you guys know you know the difference between a dollar made once and a dollar made continuously over time do you know what the value is that's different upon sale or What's called the multiplier essentially this dollar if it's it's a dollar you can expect again and again and again as opposed to oneoff transaction this one is worth anywhere from 3 to 10x this one it's the same Dollar on an annualized basis but you
get a 3 to 10x benefit on it for being able to sell it so if you guys have your yard modes at your properties if you guys have roofing companies come and do maintenance if you guys have property managers come and they have any portion of what they sell you as transactional and you can help them go to subscription or recurring you have taken $1 and you have turned it into three or $10 you think you could ask for a portion of that yes you could this is what I call the equity equilibrium rule the
more value you give the more value you get and the last part I want to focus on here is how do you find these deals how do you find deals where the owner will give you a percentage of their business well you look for the companies that have the problems that you are uniquely situated to solve and you offer them and the formula is so easy that even Cody can do it with public math it's called you need a company you have to have something that already makes Revenue Plus Pain and then you need a
potential painkiller which is the thing you're going to do to solve it I don't want to make it more complicated than that then it's not but I want to add one metric my my richest Mentor or one of them that I told you about Bill Perkins he said a truth to me that I've never forgotten when I asked him he's built multiple successful companies um he's built an incredible life he has a happy marriage he has great kids and I was like uh Bill what do you think your secret is like how do you keep
doing this again and again and again what can I learn from you there and he kind of stopped for a second and he's like I'm not smarter than anybody else I don't work harder than anybody else he's like my only Advantage is that I'm faster than anybody else by the time they have thought about the idea taken it to their investment committee I've already put it in action made three mistakes and found a better way and that is what I want you guys to do this the difference between winners and losers is speed and urgency
it is not that they know more it's that they have a faster feedback loop so if you're going to do any of this today if you're going to take action my one big ask for you is do not wait your money that you want your life that you want lies all on the other side of the things you say you will do but never did and the second that you ask for what you want and you make change your life will change forever now there's three other graphs that are important here on how to make
offers so good an owner asks you to do the deal the first is what I call the E Equity leverage teeter totter basically the more pain a business has the more you can ask for the more profitable a business is the less you can ask for the same on the other side the more value you can bring the more money or Equity you can ask for the less you can bring bring the less you can ask for and there's one nerdy slide if you all are ready to get lastly nerdy for me and I just
want you to take a screenshot on it because at some point you're going to come across a deal you're going to say I sat with Cody Sanchez you're G to say I kind of remember how to negotiate it but I can't exactly and you're going to come back to this slide and you're going to plug in three numbers and those three numbers are going to tell you how to negotiate this deal and I'm telling you this because all sometimes a screenshot is the difference between a guy who never had equity and company before to a
guy who Now is working on his second deal by keeping it so stupid simple and realizing that pain plus problems times potential profit equals an opportunity so big it feels almost uncomfortable and if we can internalize this then everything can change that if you do nothing else but you master the ability to understand words manipulate them and translate them into money you will never be poor nobody can stop somebody who understands terms and the ability to negotiate them you will never be poor in a salary you will never be poor working your own business you'll
never be poor as a1099 and yet this is something that we are all so uncomfortable with you know we have an analyst on our team whose name is Kareem and Kareem is from Egypt have you guys ever negotiated with an Egyptian I mean the thing is most of us if we are Americans or North Americans we don't actually know how to ask for the things we want and make other people want them to give them to us and I want you guys to have that difference so just for you guys today I'm going to give
you what I call My Equity to expertise terms this is a bunch of worksheets and scripts that even cream would be proud of and you can take a little screenshot of it right there it'll scan directly to you the truth of the matter is that if you build a life you never want to retire from it is the greatest gift that not only you can of yourself but a community like this because it means that you can pass it off to the Next Generation the happiest man I know might surprise you he's a garbage man
a very tall garbage man actually and this garbage man used to be a software engineer and he chose to go become a garbage man weird what's going on there these two strapping young gentlemen they wash windows do they look sad you know what's weird is that I think we were told a bunch of lies we were told that this is what would make us happy how many of you guys are immigrants like I am come from immigrant Families how many your immigrant families were like I'm Latina so how many of them were like no honey
don't be a doctor an attorney or an investment banker go wash windows and yet they had more ownership as a generation than we do we are at the lowest level level of ownership in this country than we have ever been and what do you think is better being an accountant or owning a window washing company I know the answer there is no Greater Joy no more difficult truth than this one word owner I want you all to know that you have done the most difficult but the sweetest thing which is that you have put your
skin in the game in this game of ownership to take back this country of ours because the truth is if you do not we stay that nation of surfs we ask for permission for the things we want out of our life and we hand nothing down because we have to have hand outs instead of hand UPS so it all starts with [Music] you thank you guys so so much
