Strategic Thinking

Why You Shouldn’t Read Books-Implement What You Learn

April 20, 2019 by Dan Lok

“Which books should I read to effectively learn? What’s the fastest way to get the most information in a short period of time?”

My mentees from around the world ask me these questions, because they are looking for that book that will grant them to success like a key to unlocking everything. But what they may not know is that I don’t read books.

I use books and that’s a big distinction. When I read a book, I’m not trying to understand everything the author is saying. I’m not trying to understand all the concepts and ideas because the purpose of learning is mastering. It’s all about implementation of knowledge.

So when you have a book in front of you, don’t read it, use it. Here are some ways that I implement what I learn.

Watch this video about why I don’t read books.

I hear people declaring that, “I read a book a day” or “I read a book a week.” In my case, read about two to three books a week. I’m constantly learning. When I read books – when I use them – I have a simple goal.

The Power Of Three

For each book, I look for three key ideas from the book that I can implement immediately. Just three. Even if I find more, I only implement three.

If I can get those three ideas from the first three chapters, I will highlight them as my three takeaways and then I’ll put the book back on the shelf. Maybe later on I’ll go back and read the rest of the chapters and implement some of the other ideas. But once I’ve got my big three, I’ve achieved my goal.

Sometimes I get my ideas from the back of each chapter, where they’re talking about action steps and summaries and resources. Those are great places to look. Sometimes I get ideas just from the table of contents. If that’s the case, I put the book away and then I implement.

So, I don’t read books. It’s not about accumulating book titles in your list of accomplishments. Being able to list off books that you’ve read doesn’t mean anything if they haven’t changed your life. That’s the big distinction I want you to get.

One of the most powerful tools you need to have in life or in business is clarity. And clarity is power. And power is the ability to take action. That’s a tremendous mindset shift.

The more you read, the more confused you get, and the less clarity you have. The confusion robs your power. If reading more gives you more clarity and gives you an increased ability to act, that’s good. That’s powerful.

Converting Information Into Knowledge

Now, the next step to gaining clarity is the big difference between 1) information and knowledge and 2) knowledge to wisdom. Let me explain. Information is just facts, data, numbers, figures, theories, and principles. There’s a lot of information on the internet, YouTube and Google.

The volume of information available to you does not make you richer. It also does not make you happier or healthier or smarter. Information is just information.

A metaphor is when you’re going to school and reading books in class. There’s a lot of information in your textbooks. This is the first stage.

Once you’ve gathered enough information, you start accumulating knowledge. You’re taking the information and you’re learning about the distinctions. You’re also applying it in a project or you’re taking a test.

After the test, you find out whether you passed the exam and which answers you got wrong. Well, you’re learning from how you applied your knowledge. That’s accumulating your knowledge. In a similar way, a lot of people read books to acquire information.

The tragic part is, many read books to acquire information and then they wonder, “Why am I reading and learning but my life is still exactly the same?”

Turn Knowledge Into Experience

The answer is simple. They haven’t converted information to knowledge, and knowledge into experience. Now how do you convert knowledge into experience?

After you’ve acquired some knowledge, you’ve got to implement by getting some experience. You may think that the only way you can get experience is if you’ve made multiple mistakes. If you make a mistake, you get to see if an idea works.

It’s how you get experience. You’re seeing the pattern of things. Let’s go back to the school example. Now that you’ve taken enough exams, you’ve also studied the same subject for many years in a row. Science and math for example.

Now you see a pattern as you gain more experience of what works and what doesn’t. Experience is much more valuable than knowledge and knowledge is more valuable than information.

Books themselves are just information. Information does not change your life. You’ve got to give it meaning by converting. You need to gather it and filter it into knowledge. Then from knowledge, you implement and turn it into experience.

Wisdom Is Simplification

When you’ve been working with experience long enough, it evolves into wisdom. There’s a big difference between information or knowledge and knowledge versus wisdom. I don’t consider myself to be a super smart guy. People label me more as a wise man.

I’m wise because I’ve done a lot of things and had a lot of experience. In contrast, a lot of people are smart but they’re not wise. Wisdom is something completely different. Wisdom is knowing what not to do. It’s also knowing when you don’t have to do something.

That means if you have enough experience, you know how you’re going to make something work.

My experience tells me, these are the 20 things that I could do to make me successful. Wisdom is knowing, “Okay, 19 of these things are useless. Just do this one.” That is the difference. Knowledge is about accumulation. Wisdom is about elimination.

It’s not about daily increase, it’s about daily decrease. Eliminating what doesn’t work, for example. But you cannot gain wisdom without knowledge. You cannot obtain wisdom without experience. You have to go through all of that. After you finish those stages, you can simplify everything that you do.

In fact, there are only a few things that you need to do to get you the results. You don’t need to do a hundred things. You can do a couple of things and do them well. Most people are smart but not wise. You can tell by the way that they communicate because it lacks a lot of depth. It lacks wisdom.

It’s all about taking ideas and turning them into information, converting information into knowledge, then turning knowledge into experience. I filter my years of experience and condense that into the wisdom that I have. This is what works for me. It might work for you.

Swimming In Deep Water

So it’s not so much a question of, “Oh what books should I read, Dan?” Or, “What’s the best way to learn?” Those are very superficial questions. You need to go deeper than that and go beyond reading books.

You want to take the information that you read, implement it in the real world, and see what works. There are many stages of learning.

When you start applying, that’s when you find out what works and what doesn’t work for you. You can read about how to swim but you aren’t really learning until you are swimming laps back and forth in the pool. After that, you can swim in the lake because you have experience.

Now when you have wisdom, you can go and swim in the ocean but you also know it’s better not to because of the sharks. That’s wisdom.

Final Thoughts On Why You Shouldn’t Read

Now you know why you shouldn’t just read books. You should use them. Implement what you learn. If you read hundreds of books but your life is the same, then all that information hasn’t benefited you at all.

Knowing that, ask yourself now, How are you going to change the way that you learn? How are you going to change the way that you read books?

Most importantly, how are you going to change the way that you accumulate true knowledge, true experience and wisdom?

What is one idea you will implement today? Comment below.

7 Powerful Lessons I Learned On How To Build An Empire

March 10, 2019 by Dan Lok

Imagine if the YouTube kid celebrity you’re watching on your screen is the next Mark Zuckerberg. Or next Vera Wang. Or next Kylie Jenner.

You can’t always predict what will happen in the future.

The first part of my life was a bit of a disaster and nothing like the success I have now.

My childhood sucked. I was born in Hong Kong and I immigrated to Hong Kong to Canada years ago with no money and no connections and not a word of English.

Growing up, I was only one of three Chinese in my school, so I was an outsider. I didn’t get along with the other kids, who made fun of me and teased me. I got beat up a couple times.

My mom and dad got divorced when I was 16 and that was one of the reasons we immigrated to Canada. I wasn’t one of those people that was born with big dreams. I didn’t have great talents. My teachers said I had average intelligence. I dropped out of college.

Not in a million years would I have imagined myself doing what I’m doing today, writing books, speaking in front of thousands of people, and mentoring millions of entrepreneurs around the world.

It was my dysfunctional childhood that made me the functional achiever that I am today. My parents’ divorce and my tough time in high school both also had a part. It’s because I was the only child in my family that I had to learn how to stop being a boy and grow up so I could take care of my mom.

Now, after building 21 companies and starting a global movement for entrepreneurs, I want to share with you seven powerful lessons I learned when building this business empire.

Watch this video about seven lessons I learned on how to build an empire.

Lesson 1: Adversity Is Your Advantage

People look at their childhood as wounds. I see adversity as your greatest advantage. I hope your childhood sucked too. Because going through difficult times is like a workout for your emotions and your psyche.

When you work out at the gym, you tear your muscle fibers and when they grow back, they are stronger. That’s the first lesson I would like to share with you. Don’t look at your past as your wounds. They’re your muscles.

Business is not a sport for the wannabe. Business is tough. I failed at 13 businesses before having my first success. Statistically, 96 percent of businesses fail within the first 10 years. So in ten years, only four businesses would still be here.

The game of business is for the ambitious, not the weak. It’s for the committed, who will do whatever it takes to succeed, as long as it’s moral, legal, and ethical. I haven’t met a super successful person in my life who hasn’t overcome a lot of adversity.

I’ve lost over two million in business. It doesn’t mean I’m smarter or more talented. It just means I’ve made more mistakes.

Lesson 2: Love What You Do

There’s a saying, “Do what you love and the money will follow.” That’s a load of crap. So many people follow their passion, yet they wonder where their money is. If you want to follow your passion, you’d better make sure your passion makes you money.

For example, I love teaching and speaking about business at events. I could do that all day. The problem is, I hate travelling. I don’t even like to commute to work. I work from home. So imagine how I must feel about travelling from city to city. But I am willing to do what I don’t like to do because that allows me to do what I do like to do.

You would be exceptional at what you do because the marketplace will always pay for value. So it’s not about the money. It’s about choices and lifestyle. In my book, F. U. Money, I talk about financial freedom.

Want to find out more about financial freedom? Download the F.U. Money ebook or audio version here.

Freedom is not the ability to do whatever you want. Freedom is the luxury of not having to do something when you don’t want to. It makes no sense when you work hard and you still struggle to make ends meet.

I believe entrepreneurs who do a good job and deliver value to the marketplace deserve to be well paid. Money earned is a byproduct of value creation. The more money you make, the more value you deliver. Most successful people are successful because they serve a lot of people.

You deserve to make a nice profit and feel good about it.

When you learn how to make money, it is a gift. You’re morally obligated to make as much money as you can.

Lesson 3: Save Yourself Before You Save The World

The best way to help the poor is not to become one of them. It’s your responsibility to maximize your profits as an entrepreneur.

Here’s an analogy. If you’re giving blood, how many bags of blood can you give before you pass out and die? That’s employee mentality: one person, one donation. You want to give blood? Build a hospital. That’s entrepreneurial mindset.

So maximize your profits. Now some people say that “Money isn’t that important,” and “Money doesn’t buy happiness.” People usually say that as a defensive statement, or they don’t have any money or they don’t know how to get some.

Money is only supposed to do two things. First, it gives you comfort. Second, it allows you to extend what you do beyond your physical presence. So think big. Think about how you can grow your business and reach more people.

Most businesses fail because they aren’t getting enough attention in the marketplace. If you want to grow your revenue, your brand, your company, you must get attention.

Attention is the new currency. Are there any products and services in your industry that are lesser in quality than what you’re offering but they’re selling more? The reason is they’re committed to getting attention.

For example, I have a YouTube channel where I upload my videos, a podcast called The Dan Lok Show, and blogs on my website. That’s all free content. But that’s not how I make my money. That’s something I do to promote my brand.

You have to get yourself out there to push your name. There’s so much noise out there on the marketplace nowadays. One tweet or one Facebook post is not enough. Don’t think in terms of one. Think bigger. Not one tweet. A thousand tweets.

It also means when you’re getting attention, not everyone will like you. First they will ignore you… then they will laugh at you… then they fight you. Then you win.

Lesson 4: Promotion Over Creation

Visibility is more important than ability. Spend time promoting your brand. Every day I have Facebook posts. Instagram posts. Blogs. YouTube content. Emails to subscribers.

I’m very focused on promoting my brand and selling what products and services I already have. Then, when I reach a certain level of success, I create more products and services.

You’ll get some haters when you promote yourself. It doesn’t matter. You’re getting attention.

Lesson 5: Stop Pretending And Start Asking

Entrepreneurs who say their business is fine are using an acronym.

Freaked out

In debt

Not making enough money

Emotionally stressed out

Here’s some inside information. When I go to a speaking gig for a thousand people, only about five percent will come up and talk to me afterward. And out of the five percent, less than one percent will follow up.

They would come up to me and tell their stories. I love to hear their stories. They spend 20 minutes telling me what they do. But they never ask me, “Dan, what do you think?”

Here’s a tip. If you want to establish a relationship with powerful, successful people, don’t go up to them and pitch your stuff. It sounds like you want them to endorse your products to their clients and partners even though they don’t know you.

Here’s how to follow up after a speaking gig. Don’t give them your business card. It’s not their job to follow up with you. They’re already successful. It’s your job to follow up with them. Ask for their contact information.

After that, ask them two questions.

How can I learn more from you?
What’s your most important project that you’re working on that I or my network can add value to?

Lesson 6: Master, Don’t Dabble

A lot of entrepreneurs have shiny object syndrome. They follow whatever is the flavour of the week or the flavour of the month. They never take the time to master anything.

In my career, I focused on building one skill before the next. First, I focused on marketing, then internet marketing, then management leadership, then deal making, then investing. But it was one thing at a time.

And even when you’re working on mastering a skill, you don’t have to get it right, you just have to get it going. Most entrepreneurs spend too much time thinking about what they want to do.

Remember: perfection is the enemy of progress.

So you wrote an article you don’t like. It doesn’t matter. Upload it. You wrote a blog post you don’t like. It doesn’t matter. Upload it. Tweet the crap out of it.

Reid Hoffman, the founder of LinkedIn, said, “If you’re not embarrassed by the first version of a product, you’ve launched too late.”

Let my words ignite the power, the drive and the desire within you. Just go out there and just do it. Forget the naysayers, ignore these people and just do whatever it takes to achieve your goal and just do it.

Do you want to know how millionaires actually think? Click here to find out more about Dan On Demand where I reveal the secrets to developing the millionaire mindset.

The One Word That Makes People Millionaires: Leverage

February 24, 2019 by Dan Lok Leave a Comment

There’s one word that’s making people millionaires and billionaires, and it’s not luck, timing, attitude, or mindset. It’s something more measurable than that, and it’s called leverage. It’s how the rich get richer.

Even if you don’t consider yourself wealthy now, you absolutely must understand how it works if you want to get ahead in life.

Time Equals Wealth

I want you to imagine this. If you had $86,400 in your bank account and someone stole $10 from you, would you throw away the remaining $86,390 while you chased that person? Or would you say forget it and move on?

Now imagine there is a bank account that credits $86,400 to your account every single day but there is one catch. It carries no balance, so at the end of the day, the balance is zero. Now what would you do? You’d withdraw every dollar everyday, wouldn’t you?

Well you know we do have that bank account. And that bank account is called time. Every single day you have 86,400 seconds deposited to your life. How would you spend that time? It carries no overbalance and it doesn’t allow any overdrafts.

You’ve heard of return on investment – ROI – but here is a more powerful concept – ROTI – return on time invested. Most people when they think about that one word that makes people millionaires and billionaires, what comes to mind is “you got to work your face off.”

Hustling is a given. You need to hustle just to get your foot in the door. But that’s not the one word that makes people millionaires and billionaires.

Leverage is the word that makes rich people richer. Imagine yourself lifting a big, heavy stone with two hands and it doesn’t even move. You tried your best. However if we use a long pole as a leaver, we can lift that heavy stone with the same manpower. That’s leverage: maximum productivity with minimum effort.

There are many forms of leverage. I’ll give you four today.

Watch this video about the four forms of leverage.

1. Financial Leverage

The first kind of leverage is financial leverage. The idea behind this is you are using other people’s money so you aren’t limited by the size of your own pocketbook.

Imagine you are buying a piece of real estate. You borrow from the bank and put down your 20% down payment. Then you borrow the rest. It could be 80% from the bank. That’s money leverage.

You’re using the bank’s money to create more wealth and to build your business. Here are some other examples. Borrowing money from the bank so you can buy new equipment for your business. Borrowing from an investor to get funding. Debt leverage, is one form of financial leverage.

2. Marketing Leverage

Marketing leverage is when you can control and generate your profit increases using no cost or low cost marketing.

Imagine running an ad on social media and you create the ad once. That ad is seen 24/7 by anything from ten thousand to a hundred thousand people. Even though I’m not there “marketing and selling” all day, my ad is working for me. I leverage marketing while it’s being viewed by possibly millions of people.

3. Social Leverage

Social leverage is hiring people to do tasks. Your time and your hourly rate is worth X amount of dollars so you hire someone. You can’t outsource but you can delegate to someone whose hourly rate is a bit lower than yours and they can handle certain tasks.

Hiring team members that share your passion and dedication to your business is your ultimate goal. You can leverage their loyalty to your mission and grow your business together.

4. System Leverage

Lastly, you have system leverage. The advantage of leveraging systems is you can get more done with less effort.

For example, I’m using the QuickBooks software to manage my finances and do my bookkeeping. That’s a form of system leverage. Or if I’m using an email system that allows me to craft one email that goes out to two million people. I’m leveraging technology to grow my business.

Leverage Equals Wealth

Millionaire and billionaires have used different forms of leverage in terms of finance, people, marketing, and systems. Their level of affluence opens more doors for them because more money making opportunities come to them. They have a strong desire to generate more wealth, and they don’t waste time looking for opportunities.

If you want to increase your money or grow your business, learn to leverage. Leveraging is how you can gain momentum and gain more success at a faster rate. I also show another way to increase your income in this article.

Which type of leverage you used to increase your income? Comment below.