Dan Lok

Not Sexy, But VITAL For Your Biz Growth…

It’s time we talk about one of the least sexy parts of business…

Everyone online always talks about sales, revenue, and cash in the bank.

But what about the numbers that drive those figures?

I’m talking about marketing metrics.

As you may know, marketing online can get confusing.

You’ve got email marketing, social media marketing, paid advertising, Search Engine Optimisation, sales page conversions, and the list goes on.

So, today you’ll discover some of the most important metrics to pay attention to regarding the marketing channels above…

In the hope that you can improve your marketing so you can see even better results in your business.

Let’s get started

How to Tell If Your Email Marketing Is Hitting Or Falling Flat

Since you’re reading an email newsletter let’s start with email metrics.

Your ‘Open rate’ will give you a clear indication of how your subject lines are performing.

According to mailchimp.com, the industry average for all industries is 21.33%. 

You should always aim to improve your open rates, and you can do this by split testing two subject lines at once.

There are a few ways to split test, and your email software should do this automatically for you. 

Essentially, you’re testing two subject lines to see which has better open rates, by sending to only half the list, then the software sends the remainder of the emails to your subscribers with the better-performing subject line.

Over time, you should have a good idea about what your audience responds to, so you can maintain high open rates.

If you’d like a list of eye-watering subject lines that compell your readers to open your emails, then click here >>

You should also keep an eye on how many people unsubscribe, so you know how your content resonates with your audience.

The second metric to monitor is the Click Through Rate (CTR).

This will be the percentage of people who click on the links in your emails.

Mailchimp.com states the average CTR across all industries for emails is 2.91%.

This metric achieves two things…

Firstly, it helps you to know whether your Calls To Action are good enough for your audience to take action on.

Secondly, it lets you know how compelling the body of your email is, so they actually read far enough to read the CTA.

Now, you may not know which needs improving straight away, but at least you’ll know something needs improving and you can slowly optimize your emails to increase your CTR.

If you’d like some tips to improve your email CTR, then watch this quick 1-minute video >>

How To Track Paid Marketing Metrics

Paid ads can be a great tool in an entrepreneur’s toolbelt for growing their business.

As far as Facebook is concerned, there are multiple objectives you can choose to achieve with your paid ads.

These include getting more traffic to your offers, increased engagement on your boosted posts or ads, increased video views, and lead generation amongst others.

Your metrics here will really depend on the objective you’ve set out for your ads.

For instance, a conversion could mean you make a sale, but it could also mean you acquire a new lead.

For paid ads, common metrics to monitor are Click Through Rate (CTR) and conversions.

As with email marketing, the CTR is the percentage of people who click the link on the ad, out of everyone who views it.

According to growthmarketingengine.com, the average CTR for Facebook ads is 0.9% across 18 industries. 

Here’s a video that will help you increase your paid CTR so you can pay far less per click >>

How To Make Your Ads Pay

To ensure your paid ads are profitable, you must know your ROAS (Return On Ad Spend).

This is how much revenue your business makes for each dollar it invests in ads.

This metric is even more important than your conversion rate because you could have high conversions, but if your margins aren’t high, then your ROAS will be low.

Done incorrectly, paid ads are a good way to burn cash and FAST!

Done correctly, paid ads will become your license to print money!

So, click here if you want to know how to increase your ROAS on your Facebook ads >>

While we’re talking about ROAS, there are three more very important numbers you MUST know if you want to scale.

These numbers are your Cost of Acquisition (CAC) per customer, your Customer Lifetime Value (LTV), and your cost per lead (CPL).

I shot you a quick video where I break down these numbers and why they’re so important >>

How To Get The Best Bang For Your Buck With Social Media Marketing

Even though social media marketing is free, you shouldn’t underestimate its power.

I know organic reach may not be as wide as it used to be, but there are still benefits of social media marketing, especially if you use TikTok which still has phenomenal organic reach.

Social media metrics give you a good understanding of your brand awareness and referral traffic to your website.

Engagement is key on social media, so even though it’s free, it pays to put a good amount of time and effort into your content.

Key metrics are likes, comments, and shares.

These are commonly known as vanity metrics, but they’re important if you want to know how engaged your audience is.  

Many believe free marketing like Facebook and Instagram is dead, but there are still ways you can increase your engagement on those platforms.

Here is a great video to increase your engagement on IG in 2022 >>

And if you want to increase your Facebook engagement, then you’ll want to watch this video here >>

In the interest of time, I don’t want to make this newsletter too long.

There are other marketing metrics you could consider concerning your Search Engine Optimisation, your sales pages, and your website.

Perhaps, I’ll save those for another newsletter, but I believe you have enough here to help you optimize key areas of your business to see HUGE results.

And of course, you’re welcome to do your own research for ways to improve a specific area of your marketing.

Until next time, go high ticket,

Dan Lok

P.S.If you want to know how to scale to $100K per month, then do yourself a favor and block out just 30 minutes to watch my Advanced Expert Masterclass >>

Inside you’ll get the exact strategies my clients and I used to hit consistent $100K months.

Growing Your Business’ Reach Through Client Ascension

When it comes to growing your business, there’s no better way to move forward than by helping your clients reach their goals. Achieving high ticket and sales ascension with client ascension processes is a method to increase profits for both you and your customer base. Read on for 6 tips on how you can use client ascension to grow your business:

Understand Your Customer’s Needs and Wants

When it comes to client ascension, it’s important to understand where your customers are coming from. Ask questions and listen closely to their answers so you can create a plan that meets their current needs and helps them reach their desired end goals.

To create an atmosphere of client ascension, you should also make sure to be open and honest about any changes or obstacles that may arise. When customers know what to expect, it builds trust and encourages them to continue working with you.

Create High-Value Offers

When customers are looking for high ticket ascension, high-quality products and services are what will help them move up the ladder. Invest in creating high-quality content that adds value to your customer’s experience. Ensure that your products and services are high-quality and reliable and provide real solutions to customer issues. By providing high-value solutions tailored to your customer’s needs, you can show them the path they need to take in order to reach their goals. Doing so will help create a strong bond of trust between you and your clients.

For example, if you’re providing high-ticket services like consulting or coaching, make sure to provide valuable advice and feedback in every session. Not only will this make customers more likely to continue the high-ticket ascension process, but it will also create loyalty and help customers recommend your services to others.

Follow Up Regularly

It’s important to check in on ascension efforts regularly to ensure that your customers are making progress on their goals. This will help you stay engaged with them throughout the process, which is essential for client ascension success. To ensure follow-up, you can set automated reminders and emails to keep customers informed of their progress.

Provide Incentives for Referrals

Encouraging happy customers to refer others can be a great way to grow your business’s reach. Offer rewards or discounts for each referral, as this can be a powerful incentive for people to spread the word about your services. This will aid in the client ascension process by helping you reach more high-ticket customers who are likely to take advantage of high-value services.

Be Open and Honest About Client Expectations

One of the most important aspects of client ascension is setting realistic expectations from the outset. Make sure you’re transparent about what your services will and won’t do for them, so they understand the value you can provide and have realistic expectations of their results. When customers have questions, make sure to answer them honestly and promptly.

Final Thoughts

By following these tips, you’ll be well on your way to growing your business’s reach through high ticket ascension, sales ascension, and client ascension. With a combination of high-value offers, excellent communication, and incentives for referrals, you can create long-term relationships with customers that benefit both parties.

If you want to learn more about client retention and ascension, attend one of our next events.

Passionpreneur Podcast

I’ve got something HUGE to share with you today…

But before you watch this interview, let me give you the back story.

Of all the students and mentees I’ve taught over the years, it’s rare I get to experience someone as ambitious and successful as Dev Gadhvi.

Sure, many of my mentees and clients achieve great success, but few have done it with the speed Dev has.

Born into a humble Indian family, Dev knew he was meant for more and wasn’t afraid to go after it.

In the last 5 years, I’ve seen Dev go from making $50K per year to $150K, to $1 million to $2 million, to $6+ million, and he shows no sign of slowing down.

He’s one of my most successful mentees and clients, and he invited me to his Passionpreneur Podcast for a ‘no-holds-barred’ discussion about business, life, and success.

Inside this EXPLOSIVE interview, you’ll discover:

  • The key differences between getting to 6 figures and moving on to 7 figures per year, and my secret for hitting your first million in business…
  • How to turn every adversity you face into an advantage…
  • How money REALLY works… (Get this right and you’ll never have to worry about money again)…
  • Why success is 1% idea and 99% execution…
  • How to detach from your goals so you can achieve them FASTER
  • The 4 stages of life, and how to figure out where you are so you can progress to the next level…
  • Why you DON’T need to be an entrepreneur to become financially successful, and what it really takes to become a world-class entrepreneur…
  • And so much more!

This was a deeply profound discussion where we even touched on the spiritual aspects of life and business, and my spiritual evolution over the last 5 years.

It’s packed with surprises and insights you may not expect to hear from me or Dev.

To your success,

Dan Lok

P.S. – To quote Roy H. Williams “A smart person learns from his mistakes, but a truly wise person learns from the mistakes of others.”

I’ve made more mistakes than the average person, and life always teaches you something if you know where to look.

Why Group Coaching Eats 1-on-1 For Breakfast

Today you’ll discover how to increase your revenue to hit your first $100K or add an extra $100K to your coaching/consulting business.

HEADS UP: If you already run group coaching sessions with amazing results, then the majority of this article won’t apply to you.

So, if you’re looking to scale your business to $100K/month…

Click here to find out why most coaches will NEVER hit $100K/month and how to ensure you do >>

How Group Coaching Saved My Business & My Sanity

When I first started in the coaching space, I’d already had a successful copywriting/consulting business.

So, it didn’t take me long to hit my first $10K month as a coach.

But, that’s where my coaching business stayed for years.

I couldn’t work out how to move beyond $10K.

I’d heard about group coaching before but I had my doubts.

My main concern was not being able to give my clients the attention they needed.

That’s when I discovered the 7 successful coaching and consulting secrets >>

Make sure you pay close attention to models 2 and 3 as they will be most relevant to you if you want to begin or take your group coaching to the next level.

After implementing group coaching into my business, I saw my revenue skyrocket.

That’s no exaggeration.

If you’d like a quick explanation as to why group coaching works so effectively, then click the link below to check out the short podcast episode where I break it all down.

Discover how to leverage your time and make more money with fewer hours and far less effort >>

Because contrary to popular belief, you can make or add $100K to your business without working harder.

And if you’re wondering how many clients you’ll need at your current price point to hit your business goals…

Then I reveal the best way to add $100K in 30 days as a coach or consultant here >>

Each of these links I’m giving you is different, but if you invest a small amount of time today to review them and implement the teachings, I promise you’ll see massive results in your business FAST.

7 Reasons Why Your Clients Will Love Group Coaching

  1. Group coaching is one of the most powerful things you could ever install in your business, for many reasons.
  2. People like being part of a group, even more so, they like being part of a like-minded group of people with similar goals and roadblocks.
  3. Group coaching environments have a greater impact in less time.
  4. Your clients learn the insights and “a-ha” moments of their peers.
  5. It improves accountability.
  6. It can make your services more affordable to a wider range of clients.
  7. With individual coaching, each time you help solve a problem for one of your clients, another client goes through the same problem a few weeks later. You wish you could have had both clients in the same place at the same time.

This is why it makes sense to run group coaching sessions.

But what if you’ve never run group coaching calls before?

I got you covered.

I recorded you a quick podcast episode where I teach you exactly how to run group coaching calls >>

How To Create A Group Coaching Program

Everything you know about creating a coaching program for a client can be applied to creating a group coaching program…

But if the idea of group coaching is new to you, or you already have a group coaching program but you feel it could be improved upon, then click here to watch this video >>

How To Sell Effortlessly By Leveraging “Irresistible Offers” 

Group coaching is the holy grail for scaling your coaching business.

But to pull it off you need an irresistible offer.

It doesn’t matter how good your marketing or sales process is if your offer lacks punch.

Your offer must speak to your prospect’s problems.

You want them to think “it’s as if his offer was created just for me”.

Here’s a simple example.

No one can sell meat to a vegan.

It doesn’t matter how good the sales copy is, or how persuasive the salesperson is.

But when vegans see a sign that reads… 

“Vegan Food Here” they know the offer was created for them.

The offer is very direct and if the food looks good, they’ll buy it on the spot.

If you want to know how to create an irresistible high ticket offer, then you’ll want to watch this video >> 

Here’s another video for creating an irresistible offer that goes into more detail I think you’ll get a lot out of >>

Why It Pays To Have Less Offers In Your Business

I know people who have countless offers in their business.

This may seem like a good idea, but in my experience, it pays to keep things simple.

Now, although my business has evolved and I have many offers now, when you really break it down I’ve got front-end offers and back-end higher ticket offers.

That’s how I’ve always done things, and this video shows you how I built a million dollar coaching business with just two offers >>

The Best People To Sell To (That’ll Pay You $5k, $10k, even $25k)…

Once you’ve created your high ticket offer, and decided on a group coaching model, there’s ONE type of person who will buy from you.

They’ll happily pay you what you’re worth…

They’ll be easy to work with…

They’ll love everything you do and refer their friends to you.

These people won’t give you price objections or take weeks to think about it, and your sales calls will be effortless.

Once you start selling to this specific type of person, your business will NEVER be the same.

If you want to find out exactly who these people are then you’ll want to watch this video right now >> 

 

So now you know how to build a business that pays you tens of thousands extra every year without any extra work, just making a few small tweaks to how you do things.

Even if you implement a fraction of it, you’ll be shocked at what you can accomplish.

Till next time,

Dan Lok

P.S. – If you already run group coaching sessions but want to scale your business to $100K per month and fast then click here to watch my Advanced Expert on-demand training >>

The Secret Blueprint For $10K Per Month

Back when I first started out, all I wanted to do was provide for my mom.

I knew that $10K per month was a good income and if you know my story, you’ll know…

I tried and failed at 13 businesses before I had my first success.

It took years of pain and struggle to finally hit $10K, but I managed it in my early twenties.

It wasn’t until I developed my first high-income skill that I began seeing financial results.

Over the years, I’ve taught and mentored thousands of people and helped them gain financial confidence with high-income skills…

And now it’s your turn.

There are 3 things you must do to develop financial confidence, achieve success, and live life on your terms.

  1. Decided you want to succeed and commit 100%…
  2. Choose a high income skill…
  3. Develop and hone that skill…

As you become more proficient, your marketplace value increases, and you can charge more for your service.

I define a high income skill as any skill that can make you a minimum of $10K per month.

My first high income skill was copywriting, or as I like to call it, “closing in print”.

If you want to know more about copywriting and how to get started, then watch this video here >> 

I remember, one afternoon I was speaking with a prospect…

I was telling him how I could help him when suddenly he said…

“STOP!”

“You speak with a thick accent, and in the last minutes you’ve made multiple grammatical errors, and you tell me you can write my copy?”

“I think you’re full of sh*t!”

*CLICK*

He hung up on me.

This shocked me and I didn’t know what to think.

But it was at that moment, I decided to get better at closing clients on my copywriting services.

As I honed my closing skills, I was able to close more clients at higher price points.

And now the pandemic has changed the business landscape, I believe it’s more important than ever that you have the ability to work from home.

And closing (like copywriting) is a great way to do that.

Even though it seems the pandemic is coming to an end, you never know when something similar could happen again.

If you want to know the easiest way to develop closing skills, then click here >> 

You’re not limited to closing and copywriting if you want to earn a high income and live on your terms.

But if you want time and location freedom a normal 9-5 can’t give you, then you must work online.

Here are some other high-income skills that may interest you.

Remember, you only need ONE to make it happen.

Each skill has a video linked if you’d like to know more:

I’m just scratching the surface here.

Every online business has a need for many of the skills above.

Personally, I like to choose skills like copywriting, closing, and digital marketing, and advise my mentees to do the same.

Why?

Because you’re selling money at a discount.

You’re generating your client revenue and you’re paid a percentage in commission or upfront fee.

You’re an asset to their company, not an expense.

It costs your client NOT to have you or someone like you in their business.

So, take some time to go through these materials and choose a skill you know you’ll enjoy, and go all in on that skill.

Find the best person to learn from and go deep, build your skills and knowledge in your chosen area, and over time you’ll watch your income increase.

If you’re more extroverted and feel like closing is your skill, then click here to check out my closing collection >> 

On the other hand, if you’re more introverted and love writing, then copywriting could be a good option for you >> 

To your success,

Dan Lok

P.S. – If you found this valuable, please comment below and let me know what high income skill/business topics you’d like me to discuss.

7 Types of Investors: How to Invest And Build Up Your Ideal Portfolio

Are you wondering how many types of investors are there? Every day, there are people who fear losing money in an investment, while others never fear it. In any industry, investing has its own language. Many people are skeptical about where they invest their money because they don’t know how to build an ideal investment portfolio. 

When it comes to investment. Most people may think of their homes or cars, for example. Rather, i’m talking about different types of investors. Which i’ll be sharing with you shortly. 

Think of an investment portfolio as a safe to store your valuables. For example, real estate, stocks, bonds, mutual funds and so on. But an investment portfolio is more of a concept. Not a physical item. 

If you know how to invest and build your investment portfolio, you won’t fear changes in the stock market. You’re wise enough to know that you don’t need to make more money to be able to save it because saving isn’t the answer.

Saving your money may help with future debts but it isn’t going to get you to financial freedom. What you need to do to build your wealth is to invest it, and the amount you invest has nothing to do with income level. 

Rich people focus on investing. Poor people focus on saving. Click To Tweet

Instead, what you invest is an indication of your financial confidence: your knowledge and skills when making decisions about money. 

With that said, understanding what an investment portfolio is doesn’t tell you how to build one. First, you need to know the types of investors. And then you have to learn how to invest. Only then, you’ll be able to build your ideal portfolio. 

Watch this video about how to get started. 

Take Time to Learn The Types of Investors 

It’s important for entrepreneurs to take the time to learn the types of investors. Why? Because they are unique players in the growth process of a business. To determine a company’s success or failure is ultimately determined by the level and quality of an investor’s involvement. 

There are plenty of stories about people using their own savings to invest in a company. Many still deeply rely on investors. If you depend solely on your savings, you’re not likely to grow as big as you want it to be. Having an investor can play a big role in your success. As i said earlier, your growth process is determined by the level and quality of an investor’s involvement. 

Now, let’s get into the 7 types of investors.  

1. Banks 

A bank loan works the same as any other business investment. The entrepreneur is required to present a business plan, and then the bank will decide whether they should provide the funds. Also, you may need to provide some proof of collateral or a revenue stream before your loan is approved. 

According to Investopedia, if you want to fund the expansion of your small business. Consider a Small Business Administration (SBA) loan. However, if you have access to other financings with reasonable terms, then you are not eligible for this loan. This is a good loan to apply if you did not qualify for a traditional bank business loan. 

2. Angel Investors

An angel investor is a high-net-worth individual who provides financial aid to help the business get off the ground. They are often found among entrepreneurs’ friends and family. Typically, angel investors provide financial aid in exchange for ownership equity in the company. And this is usually a one-time investment to assist and support a company through its difficult early stage. 

Now, this type of investment is risky, because it doesn’t represent more than 10% in your investor’s portfolio. But since they focused on helping startups. Therefore, they are the opposite of venture capitalists. 

3. Venture Capitalists

So, what is a venture capitalist (VC)? A venture capitalist is an equity investor. They focus more on companies that exhibit higher growth potential in exchange for an equity stake. VC investors could be funding a startup that wishes to expand but doesn’t have access to equity markets. And usually, they do not. 

The difference between angel investors and venture capitalists is that. They are willing to take higher risks because they know they can earn a higher return on investments (ROI) if those companies gain success.

So, whether you’re seeking an investor or looking to be an investor. Understanding the types of investors is important in today’s world. 

Here’s the top 5 value of venture capital investment in the 3rd quarter of 2019. (by industry)

4. Peer-To-Peer Lenders

Embracing technology in today’s digital landscape is a must. Peer-to-peer (P2P) lenders consider businesses and projects that are listed online. There are 2 websites that specialize in peer-to-peer lending. There are,

This type of investor acts similarly to the Small Business Administration (SBA) Loan. Now, when it comes to peer-to-peer lenders, your credit history plays a part when engaging a P2P lender. So, check and improve your credit history before finding a P2P lender. Because, if you have a low credit score, they may not find you loan-worthy. 

On another note, make sure you understand the terms and conditions on your loan and make payments on time. Failure to do so will result in increased fees and most likely won’t get you another peer-to-peer loan. 

5. Personal Investors

This may sound the easiest of all types of investors. But think twice before heading in this direction. It is always a risk when mixing business with family. Not only do you risk your finances, but also your family and friends if the business goes downhill. 

When choosing this option, make sure your family ties are strong enough to withstand the pressure. You can either have each party sign a promissory note on repayment terms or sign a partnership agreement.  

6. Corporate Investors

As a corporate investor, investing in startups carries a variety of benefits. This includes supporting their own growth and diversifying assets. While some invest outside of startups, more are leaning towards starting their own accelerators and incubators programs. 

These types of investors can be great collaborators. However, a careful approach with a lot of patience must be taken into consideration. In order to have an enjoyable relationship between founding partners and corporate investors. It’s vital to understand each other and have some boundaries agreement. 

7. Accelerators and Incubators

Accelerators and incubators are perhaps the ultimate gateways to a variety from the types of investors on this list. Why? Because, if you’re accepted into one of their programs. You may receive from $10,000 to $120,000 dollars to develop your idea for growth. The best part about this is, you’ll be able to benefit additional knowledge and resources. 

However, there are certain things to consider when joining the program. So, if you’re looking to take your business to the next level. Be ready to hustle. 

Building an Investment Portfolio

Markets go up and down. Investing isn’t a game and certainly, it’s not something that you could acquire in the shortest period of time. You can’t achieve perfect performance through market timing. However, you can build up your ideal portfolio. A solid portfolio certainly will allow you to succeed and avoid the stress within market volatility. 

If you know how to invest, you know how to build your investment portfolio. Click To Tweet

Your investment portfolio is like an umbrella for all of your accounts and they consist of some of these, 

  • A 401(k) or employer-sponsored plan.
  • Cash in savings accounts or invested in certificates of deposit
  •  Individual retirement account

As i said in the beginning, your home and cars aren’t considered part of an investment portfolio. Rather, i’m talking about how you can use your money to make money. Such as, 

  • Stocks
  • Bonds
  • Mutual funds
  • Real estate investment trust 
  • Alternative investments
  • Private companies

So, if you understand how money works, that’ll help you build your ideal portfolio. And diversification is the key to success when investing. Also, when you understand the different types of investors. you’ll have clarity on investing principles. Here are 5 essential guides to building your ideal portfolio.  

Have a Purpose and Stay Committed

Ask yourself this question before you invest. Why do you want to invest? Maybe it’s for your family or it could be generating an additional stream of income so that you can achieve financial confidence. Or maybe you want to buy a second home. Most likely, your answer could be all of the above. So, if you are aware of your purpose and you already know what you want to accomplish. What would it take you to get there? And out of these 7 types of investors, which would best fit you? 

Solid Understanding of The Fundamentals

To build your ideal portfolio is not just investing blindly. Understanding the fundamentals of individual securities is crucial to building a solid portfolio. And that’s what they are assembled based on. 

Your ideal portfolio should be diversified across sectors that are expected to perform well. Plan and have a good strategy to execute your purpose. Think quality over quantity. Click To Tweet

Give Yourself Some Time to Build 

This is critical because building your portfolio by identifying your purpose requires you to link all of your ideas. So, when you understand the types of investor that suits you best, you need to give yourself some time. Such as, what you need to achieve? So, based on your solid fundamentals, and a proven approach. It keeps you away from in-and-out, market-timing types of investing approach.  

Focus on Things You Can Control

There are certain things you wish you could control. Such as, the market, companies that you’ve invested in and the political views. The truth is, you can’t. However, with your individual approach and mindset, focus on the things you can control. Determine a powerful strategy and stick with it. 

Be Realistic With Your Goals

While most of us know how much we have saved. Very few have a realistic understanding of our goals. You might have an inkling of what you spend today and how much you need for the next stage of life. Maybe, you have a 5-year plan. But, how much risk are you willing to take on to achieve your goals? And does your 5-year plan look realistic with the steps you’re implementing? 

What You Invest is an Indication of Your Financial Confidence

Your knowledge and skills when making decisions about money is critical. The way we save and make money can be grouped into seven types. I learned about these seven levels of investors from Robert Kiyosaki, and over the years, i’ve put my own spin on it. 

While it’s common for one investor to drift a little from one type to another, most people stay fixed at one type for their entire lives.

[bctt tweet=”Saving your money may help with future debts but it isn’t going to get you financial freedom. You need to build your wealth to invest it, and the amount you invest has nothing to do with income level. ” username=”danlok” 

As i said in the beginning, if you know how to invest and build your investment portfolio, you won’t fear changes in the stock market or unexpected bills. But most of us still have a certain fear when it involves money. Now, how to create that confidence to achieve financial independence? – to break-free from your fears. 

The most important quality for an investor is temperament, not intellect. – Warren Buffett

Before i share the secrets of the rich with you. Which level of investor you are? 

Level 0: Non-Existent Investor

At level zero, you have no investments or savings. You are oblivious of money matters in general or your spending habits in particular. You usually complain that you aren’t making enough money, or if you made just a little bit more money, everything would be okay.

The problem is your money management habits. Mike Tyson is an example of a non-existent investor. During his 20 year career, his income exceeded $400 million. Yet before his 39th birthday, he was $8 million in debt. Then $30 million, so he was $38 million in debt. 

You might say, someone who makes millions a fight can’t be broke. But his financial statements say otherwise. He has the cash flow of a poor person. In fact, he’s worse than the poor. If your net worth is zero, you’re richer than him. 

Level 1: The Borrower

If you’re a borrower, you’re often in far worse financial position than the non-existent investor, although your potential for change is greater. You usually make a bit more money than level 0. You have high debt because you spend all you make and more. Your idea of financial planning is to get a new Visa or Mastercard. 

You live in complete financial denial and have often come to believe the situation is hopeless. When you are depressed, you buy more and get more debt.

Level 2: The Saver

As a saver, you usually set aside a small amount of money on a regular basis. The money is usually deposited into low-risk, low-returning vehicles such as a term deposit or money market account. You save to consume. 

You save to go on a vacation, then save to buy a car, or save to buy a big TV. You are afraid of financial matters and won’t take risks. In fact, you’ll drive many hours to save a few dollars or line up on Boxing Day for 10 hours to save on one item. 

Level 3a: Passive Investor

Passive investors are aware of the need to invest and top up their RSP or 401K by making employee contributions or outside investments like mutual funds, shares, stocks, or bonds. This level makes up two-thirds of the middle class. If you’re here, you’re financially illiterate. You don’t like to take risks.

You like to say things like, “I’m not very good with numbers,” or “I prefer to leave the money decisions to the professionals.” You’ll leave things in the hands of your financial planner but have little idea where things are invested or why. You also believe high rates of return like 20 percent are either illegal or impossible. You believe what you read in the news and do what others tell you to do. 

Level 3b: Passive Investor Gambler

At this level, you don’t like to take risks but you also like to use sophisticated investment techniques such as margins, puts, and calls, without understanding what you’re really committing yourself to. Most of the time, you don’t discuss your losses with anyone, but always brag about your wins. You like to gamble. 

I’ve seen entrepreneurs work very hard their entire lives to accumulate quite a bit of money. Then they take another person’s advice and in one year they lose what took them 10 years to make. It’s in the nature of entrepreneurs to work hard, so they’re smarter next time. But they’ve already lost decades of time because they took a gamble. 

Level 4: Automatic Investor

Automatic investors are aware of the need to invest but they are also actively involved with their investments. If you’re at this level, you have a long term plan that will enable you to reach your financial objectives. You follow the plan of the wealth triangle: you have a high-income skill, build a scalable business, and have high-return investments. 

You don’t use the fancy stuff that money managers use, like options or margin accounts. You buy good shares, proven managed funds or solid funds, and hold them for the long term. Warren Buffett is an automatic investor.

Level 5: Active Investor

If you’re an active investor, you manage your own money and don’t trust other people with it. You have a clearer awareness of investments and rates of return. You don’t necessarily take the advice you hear. 

For example, i’ve worked in finance. I can say that 97 percent of mutual funds don’t work. Only 3 percent of the 5000 funds in Canada work, so i would not take the advice of financial advisors.

Active investors have to be clear on investing principles, which are the rules of investing. Your vehicles might be real estate or private companies. You actively participate in managing your investments and don’t just put aside your money and hope it grows. 

You’re always looking, monitoring, and seeing how you can add value. You optimize performance and minimize risk, getting long term annual returns of 20 to 100 percent. You intimately understand money and how it works.

This type of investor has cash flow. You spend what you want after your assets crank out the cashflow for you. I am at this level. 

Level 6: The Capitalist

Few reach this level and fewer manage to remain there. They are the Rockefellers, the Kennedys, the Fords, the Bill Gates, the Warren Buffets. They have two motivations for investing: they are good managers of their money while they are alive, and they leave a legacy to continue after they are gone. 

Discover The Secrets of The Rich

No matter what your income level is, start investing. Have a financial plan for your future. Begin at the first level and work your way up. Remember, investing is about how much money you keep and what you do with it. So, do you want to learn the secrets of the rich? How do they invest, and build their ideal portfolio? How do they stay rich by investing? 

To the select few of you… here’s your chance to learn from me in person. As i said in the beginning, many people are skeptical about where and how they should invest their money. And this is what i realized.

The secrets of the rich aren’t taught anywhere. So, I decided to show you how it’s done. And because you might have the same question as my followers and mentees. To answer these and many other questions, you’re invited to my event in Vegas i’m holding with my good friend. And the question is, “Dan, how do I grow my savings predictably and sustainably?”

  • Without losing to inflation.
  • Without risking it all on the latest opportunities that could be gone with the wind.
  • Or without keeping it in my low-return savings account?

If you want to discover the secrets of the rich. You must have the mindset to give more, do more and be more…

Learn the secrets of the rich. And change your life forever.