Subtitles section Play video Print subtitles - So let's dive in, all right? There's several different types of businesses you can create online, but between all the different types it really just boils down to two different types, okay, products and services. It's all it is. Write that down. There's just two categories, just products and services. Now, if we take a look at some examples, some product-based business are things like e-commerce, and underneath that umbrella, because it's too broad to just say e-commerce, you got the drop shippers, which means you're selling somebody else's products, you're just making a middleman cut off of it, we got the brand builders, people who actually take the time to go out and build products, patten their technology, and then sell their products online, could be through a bunch of different mediums, you have Shopify that's underneath the e-commerce umbrella, you have other kind of product-based businesses online, selling on Amazon. Some of you guys may have heard of Etsy or any kind of other marketplaces for artists. White labeling other products for other businesses to sell. This is very common in the supplement industry. You even have software, which can count once again as product-based businesses. Now, on the other side of that spectrum, keep in mind it's just products and services, the service-based businesses that exist are things like marketing agencies. Okay, you got social media marketing agencies. One of my least-favorite service-based businesses online, I would never encourage you to do this, is a virtual assistant. Very tedious, very low-pay, but it's a service nonetheless. Now, selling specific digital skills as a freelancer, things like web design, copy writing, content creation, email marketing, marketing automation. Pretty much just any one skill that you're selling I would consider you a freelancer. That's definitely another type of online service-based business. Now, depending on where you're at, you're probably like I was back in the day. I did not have a lot of money to start up a business, but I knew I wanted to get started. And to be clear, even I had skepticism looking at all the different things that were out there. And most of the product-based businesses, they required money for me to start, and that really prevented me from number one, wanting to take the risk with money that I did have, and then at the times when I didn't have money and I wanted to start up businesses, it just wasn't a possibility because I didn't have the money to do it. - In fact, put in the chat how many of you have started a product-based business. Put in the chat if you started a product-based. It could be e-commerce, it could be any kind of physical product that you've done. Yes. Eric, yes I do. Shopify, Kevin, yes. Never did but want to. And there's not one that's better than the other. It's just there are pros and cons, right? The first 13 businesses I had, I had multiple product businesses. Those weren't successful, right? Now how many of you because you're here, you're taking a challenge, you want to start a business, but maybe it's not like you have a lot of capital where you could go and maybe purchase a franchise or something like that, you're working with limited capital but you want to jump into and start that business. Put in the chat if you fall into that category. Yes, Vincent, yes. Good, good. Yeah, Jeremy, just like me. At a time I started with no money. So when you don't have a lot of money, how do you get started, right? And Jeremy and I we are on the same page. And please keep going, and you'll see why, that I believe the service-based business model, it's a easier way to start the business because it doesn't require a lot of capital up front. - And it's so true. And look, just to be clear, I'm not trying to tell you product-based businesses don't work. I'm just telling you where I was at when I got started, I just didn't want to sink money into the business and I did see some feasible options for how I could get started without money. That's some of what we'll talk about. But some of those costs that you could incur if you would start a product-based business, you got to do things like build out the store front, which you could do yourself. Most people like to pay at least a couple hundred bucks, thousand bucks to do it. Yeah, you got advertising, you got the product costs, you got warehousing costs in most instances, or other middleman fees that you'll experience. There's just a lot of little things that add up and that just wasn't for me. So what I saw when I was picking initially, I saw that service-based businesses generally, they didn't really require a lot of money up front. Don't get me wrong, there's a few small costs, but you're really avoiding a huge barrier to entry that product-based businesses have when you're a service business. Service-based businesses generally sell skills, results or outcomes, and processes. So at the time when I got started, I personally had a few of these digital skills, but I also saw an opportunity to just sell other people's skills and just kind of bundle it up. It seemed like a great opportunity in terms of what a service-based business could bring, and it looked like the investment was more time and energy than it was money. So when I got started, and look, this is no shit, okay? I got started with a laptop. I just had good internet, and I had my iPhone. That was it. Those were the resources I had. - That's a question. How many of you have a computer? Put in the chat. Yes, give me a thumbs up, okay. How many have a phone? How many have internet connection? Okay, you got all three. Good. If you're here, you got all three. - Most people have it. We're not surprised. That's all I had and that's all I really wanted to invest. I was more than willing to put time, energy. I mean, look, I just didn't have money. I didn't have money I wanted to put into the business. So I picked a service-based business route and it's done well for me. So for me, that makes it a really low barrier to entry and some of you guys probably heard what that means before, but for others that might not know, barrier to entry just means is there a really high up front cost to something, are there a bunch of hurdles and just obstacles that you got to overcome in order to get started with it, or is it relatively simple to start and you can be in motion quickly. Without a doubt service-based businesses had a really low barrier to entry. They were really simple. - I will share with you. My first "business", not successful, after 13 business failures, I had to face the reality of what I was doing wasn't working right. I had to put my ego on the side and say, hey what do I need to do. Now, I was $150000 in debt. Think about as a 20-year-old $150000 in debt. How am I going to pay this off? What am I going to do? I told my mom I don't want to go to school, but I owe relatives and all these people money, credit card. Something was missing. Reality, I had to face the realities. Maybe I'm not as smart as I thought, because I couldn't be that smart if I had all these failures. I was looking for answers, and just like most people I read all the books and Think and Grow Rich, and all those self-help and personal development books, and those books they help, but that was not what turned my life around. What turned my life around was when I found a mentor. His name is Alan Jacques, who actually took me under his wings and taught me, gave me my first skill, which is copywriting, and that's after the one year of working under him, being his apprentice, right? And then going out there, starting my own kind of one-man advertising agency, and that's the first time I experienced success. So after working with Alan for one year I went out, started my copywriting agency. I was 20, 21, 22 years old. I was making six figure income, probably $10000 a month at 21 years old. Now, compare to today or a lot of successful entrepreneurs, I know 10K may not be a lot of money, but for Dan Lok back in the 20 somewhat years old, $10000, that was life-changing money, because that allows me to take care of my mom, that allows me to slowly paying off the debt, right? It's great. It's not a million dollars, but it's $10000. Like, put in the chat how many of you if $10000 a month, if you now make $10000 a month that would make a significant difference in your life, helping to give you the peace of mind, right? Be able to pay off some of the debt that you might have, or some of the overhead, right? That $10000, it's not a million. - Give you back hope, right? - It's like I could do this. I'm not the failure that I think I am, and at the time the only asset that I had was this car, a Ford Escort with 150000 miles on it. I bought it from my aunt for like $2500 and recently, Desmond has helped me, I was able to buy the exact same model back and put it in my garage. Why? Because I want to remember that's where I came from. We bought that car for how much, $800? - We bought it, yeah. We haggled it down to $300, but the damn repairs cost another $500. - There you go. I bought it for $300. - It wouldn't even drive. - It wouldn't even freaking drive. - The door was broken, just like the original one. - But it's a good reminder for myself, because living the way that I live now, it's very easy to say, I don't ever want to forget where I came from. I want to see when I'm in the Bentley, I want to be able to see that's where I came from, right? And the license plate's actually LOK 1ST. That's the license plate, because that was the first car that I had.