Alex Hormozi: I increased my wealth EXPONENTIALLY using the power of INVERSE thinking...

The video is about using inverse thinking to increase wealth by understanding the variables that influence pay and creating more value.

This video by Alex Hormozi was published on Mar 28, 2022.
Video length: 17:00.

In this video, Alex Hormozi discusses how to increase wealth by using inverse thinking.

He explains that to make as little money as possible, one would provide very little value, ask for very little of that value, and have a line of people standing behind them who are willing to do the same job for less money. However, to increase wealth, one should focus on creating more value, negotiating effectively, and picking the right customers.

Hormozi also emphasizes the importance of using multiple lenses to communicate value and tells a story about a boy trying to sell his car to illustrate the concept.

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• The easiest way to solve the problem of not getting paid enough is to understand the variables that influence pay.
• Inversion thinking can be used to make less money by providing very little value, not asking for much, having a low-value skill set, and having a line of people standing behind you.
• Inversion thinking can be used to make more money by creating more value, negotiating, using multiple lenses to communicate value, picking the right customers, and understanding supply and demand dynamics.
• Creating more value is the first step to increasing wealth, and it can be predicated on who you are serving and how much value you can provide.
• Asking for more can result in getting more, and allowing the market to set prices for your services can result in higher pay.
• The competitive landscape and supply and demand for the job to be done can affect pay, and being able to provide unique value can increase leverage in negotiations.
• Niche down at first to become really good at delivering one specific high-value service, and use unique skills and experiences to make the business more money.
• The type of opportunity you pursue will dictate how much you get paid, and business owners and employees both need to communicate value to customers.

I increased my wealth EXPONENTIALLY using the power of INVERSE thinking... - YouTube

Introduction

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• The purpose of the video is to blow up some of the things that he saw online with relation to how to make more money when it comes to getting a raise if you are an employee or getting a raise from your customers as a business owner.
• The easiest way to solve this dilemma or this problem for not getting paid enough is to understand what are the variables that influence pay.
• A fun process is to go through this and think about it using inversion thinking.

Inverse Thinking to Make Less Money

• If we wanted to make as little money as humanly possible and we were employees and/or business owners, we would provide very little value.
• We would not ask for very much of that value that we were creating.
• We would have a skill set that just does not provide a significant amount of value to a business and/or to a customer.
• We would ask for a very small amount of that money.
• We would have a line of people standing behind us, the opposite of scarcity, working against us.

Inverse Thinking to Make More Money

• We can create more value.
• We can negotiate.
• We can use multiple lenses to communicate value.
• There are other forms of value, such as indirect value.
• We can pick the right customers.

I increased my wealth EXPONENTIALLY using the power of INVERSE thinking... - YouTube

Supply and Demand Dynamics

• The third variable that influences pay is supply and demand dynamics.
• In an unideal world, we would have low value, ask for very little of it, and have a line of people standing behind us.
• We can flip this process by creating a high potential value that we are creating.
• We can communicate value using multiple lenses.
• We can pick the right customers.

Value, Negotiation, and Competitive Landscape

• The value someone will give you is not necessarily a result of who you are, but who you are talking to.
• The amount you can charge as a business owner will be predicated on who you serve.
• The value equation can be reversed by creating lots of value.
• Asking for more can result in getting more.
• Variable compensation is a way to increase pay as an employee.
• The competitive landscape and supply and demand for the job to be done can affect pay.

Creating More Value

• Creating more value is the first step to increasing wealth.
• Value can be predicated on who you are serving and how much value you can provide.
• The dream outcome you provide and how quickly you can get it done can affect value.
• How much work the customer has to do as a result of your service can affect value.
• Being an employee who comes up with ideas and can get things done quickly is more valuable than one who needs constant supervision.

Negotiation and Asking for More

• Asking for more can result in getting more.
• Most people sell from their own wallet and believe what they think is a lot of money.
• What comes easy to you may not be easy for others, so your perception of value may be skewed.
• Allowing the market to set prices for your services can result in higher pay.
• Variable compensation is a way to increase pay as an employee.

Competitive Landscape and Supply and Demand

• The competitive landscape and supply and demand for the job to be done can affect pay.
• If there are lots of people who can do the job, there is less leverage to negotiate for higher pay.
• Being able to provide unique value can increase leverage in negotiations.
• Understanding the competitive landscape can help in setting prices and negotiating for higher pay.
• Being able to provide value that is difficult for others to replicate can increase pay.

Niche Down to Create More Value

• Competition is high in both labor and business.
• Creating specialized services decreases competition.
• As a business scales up, it can broaden its services.
• Niche down at first to become really good at delivering one specific high-value service.
• Pricing high and adding features, bells, and whistles creates offers that are more compelling to customers.

Use Unique Skills and Experiences to Create Value

• Employees can use their unique skills and experiences to make the business more money.
• Quantify how you can directly impact the bottom line of the business.
• Ask for variable compensation around the value you are providing.
• The more direct your impact, the less argumentation or discount there will be.
• Use your unique skills and experiences to make the business more money.

Opportunity Vehicle Dictates Pay

• The type of opportunity you pursue will dictate how much you get paid.
• Opportunity vehicle is a subset of the business opportunity you are working under.
• You need to have a vision that is big enough for your business that other people's visions fit inside of it.
• If you are not learning or earning, you should stop working wherever you are working.
• Frontline retail workers are quitting their jobs because the opportunity is not big enough.

Business Owners and Employees are Similar

• Business owners and employees both need to communicate value to customers.
• Creating a category of one means not competing with everyone else's low prices.
• As an employee, your wages are your prices.
• Being a business owner or an employee is very similar.
• The business owner is closer to the customer from a value creation standpoint.

Understanding the Variables that Influence Pay and Creating More Value

• Employees and business owners should think about how they measure up in three dynamics: supply and demand, value creation, and negotiation.
• Creating more value is key to increasing pay, and there are tips in a book available on Amazon for 99 cents.
• The simplest law of negotiation is that he who has the most options wins the circumstance.
• Having more customers or job offers gives an employee more leverage in negotiations.
• CEOs can make large bonuses because they are operating within a business that has a massive dream to impact humanity overall, and compensation structures are based on variable compensation on the overall production of the business.
• Both business owners and employees can make obscene amounts of money as long as they understand the three dynamics and operate within a business that has a massive dream.

Watch the video on YouTube:
I increased my wealth EXPONENTIALLY using the power of INVERSE thinking... - YouTube