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  • - 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.