Loading summary
Transcript1 lines
- [00:00]
A
Have you ever wondered why dumb people make more money than you? Like how are people with no degrees building multi million dollar empires while straight A students are working nine to fives? Because it turns out the richest people aren't actually that smart. In fact, the average millionaire only has a 2.9 GPA. And I know this from personal experience. I did horrible in school, I didn't go to university, and today I live my dream life traveling the world, all while running multiple businesses. I'm going to show you the three reasons why your intelligence might be keeping you broke. The psychology behind it. And I'm also going to give you three dumb strategies that will make you richer than you ever thought possible, regardless of your iq. Welcome to the Martel Method. I went from rehab at 17 to building $100 million empire and being a Wall Street Journal bestselling author. In this podcast, I'll show you exactly how to build a life and business you don't grow to hate. And make sure you don't miss anything by subscribing to my newsletter@martel met method.com starting with uninformed Optimism the first reason dumb people make more money is they don't know what they don't know and they don't care. They have an unreasonable amount of confidence because they literally don't second guess themselves. Smart people have this tendency to overanalyze. They doubt themselves. Dumb people just act. So there's this thing called the emotional cycle of change. It's the roller coaster of feelings that people experience when they choose to make a major change in their life. And that first stage, the uninformed form, optimism, is the best one. Research shows that 93% of Americans think they're above average drivers, which is statistically impossible. It's also called the Dunning Kruger effect, which means that most people think they're smarter than they are. The problem is, is that when it comes to making money, people that are intelligent make up a ton of reasons of why the thing won't work. You miss 100 of the shots you don't take. The smartest people overthink their shots and never even take them. So confidence is one thing, but there's a second reason dumb people win. And it's the one thing that keeps smart people playing small their entire lives. Reason number two they're scared to look stupid. Most people don't try. Not because they're scared to fail, they're scared to be seen failing. So why does a smart person do this? It's because they want to protect their smart Kid identity. In the book Mindset by Carol Dweck, she talks about this. That there's a study where children that have been praised for being smart will eventually get to a point where they will avoid challenging situations because they're afraid of losing that smart kid label. Dumb people aren't scared of looking anything. They're like, I don't care if you think, I don't know. I don't know. I need to know the answer. You have the answer. So I'm gonna ask the question even if I look dumb, because then I'll have the answer to be able to make a good decision. I remember one time I was coaching this woman, Jessica, and I noticed she never asked questions. And I called her out on Instagram. I literally messaged her on Instagram. I said, hey, you haven't asked a question in a while. And then she admitted. She's like, well, I just don't want anybody to think that I don't know what I'm doing in my business. It's like. And say, here's the deal. You don't. That's why we're working together. And if you ask questions, you'll learn more. Next call. She asked a really simple question. Everybody might have thought it was basic, but I told her how her competitors are using an automation tool to solve her problem, which cut her costs in half. And not only that, she doubled her business in 90 days cause she was willing to look dumb. The smartest people in the rooms are the ones that are willing to look stupid. So here's what we're going to do. Grab a piece of paper or anything to write in. I want you to write down your honest answers to two questions. One, what's one thing that you avoid doing because you're scared you might look stupid or incompetent while you're doing it? Second question is, who are you trying to impress by not doing it? Write those things down, because we're going to come back to them. So we've established that the fear of looking dumb keeps people stuck. But here's a third reason smart people stay broke. And it's all about how you see risk. Number three, bad risk radar. I once read a study that showed that people with lower cognitive scores were willing to take risks in a controlled test. But when it came to real money being involved, they became less conservative than the average person. Smart people overestimate the risk and play it safe. And the truth is, it's not about making the right decision. It's about making a decision than making it. Right. So here are two examples of smart versus dumb risk. Smart versus Yahoo passes on Google twice, literally. In 1998, Google offered to sell Yahoo for $1 million. $1 million. Yahoo said nah. Four years later, Yahoo comes back once they see the traction and offers them 3 billion. Google says okay, but they came back at 5 billion. Yahoo passed again. Today, Google's worth way more than a trillion. Two chances missed by overthinking dumb. The FedEx gamble 1973. The founder of FedEx, Fred Smith, he's got no money. He can't even pay a 5k fuel bill. He takes 5000. All they have left in the bank account goes to Vegas, gambles blackjack. Now most people think that's dumb. Guess what? He turned that into the 27 grand he need he got to survive. And he became a global shipping giant. The biggest risk is taking no risk. I'm not promoting gambling, but I want to emphasize the concept of taking risk. So here's how we fix your broken risk radar. I call it the ratios of risk. There's three questions you got to ask yourself. First off, you ask yourself, what's one investment that scares you right now? Some people, it's like hiring somebody, hiring a coach, full time employee, going pro. There's something about some way you want to spend your money. Write that dollar amount down. Like what do you think that costs? The second is, is what's the percent of your annual income in that? Are you putting like your whole life savings or is it a small percentage? Third is, if you knew you couldn't fail, would you make that bet? And what I want to inform you is that you have to recalibrate. When I started in business, spending $18 for a book felt like a serious investment. And then I got to a place where I noticed that every time I made an investment, my life got better. But the size of the investment had to go up in a relation to the level of risk. Dumb people realize that it's not an absolute dollar amount, it's a percentage they'll put a lot more money behind the things that smart people won't even pay for. Smart people, like, I got a $20 gym membership. I feel good about myself. A dumb person goes, well, if I don't pay you 250 to go, I know I don't trust myself, I won't go. But if I pay you 250, I want to get my money's worth, so I'm going to do that instead. Do you see the difference? Because when people don't pay, they don't pay attention. If you're not willing to put money at risk to get a reward proportionate to the reward you want, then you won't get it. The truth is, the biggest risk you could ever take is not having the time in your calendar to do the thing that's going to make you the most money. Most people need an assistant. Most people need a virtual assistant, executive assistant, even somebody in your home to help you clean. The challenge is the most smart people wouldn't even know what to ask them to do. So if you want my internal EA playbook, the whole thing, it's 42 pages of exactly how I work with my executive assistant. Just find me on Instagram and message me YouTube EA, and I'll send it right over. Now you have the three reasons why dumb people make more money than smart people. They're overconfident, they're not scared to look stupid, and they underestimate the risk, which gets them in positions to get big returns. But here's the good news. You don't need to actually be dumb to win like they do. You just need to dumb things down and keep it simple. Before we get back to the episode, if you wanna jumpstart your week with my top stories and tactics, be sure to subscribe to the Martell Meth Method newsletter. It's where you'll elevate your mindset, fitness and business in less than five minutes a week. Find it@martell method.com the three strategies I'm about to show you all have one thing in common. They eliminate complexity and make success way easier. So let's start with dumb strategy number one, model. Then modify dumb people. Just go, you're the expert. You taught me how to do something. I got your blueprint. I'm just gonna do what you did. Smart people get the blueprint, look at it and go, this won't work for me because I'm a magic snowflake. So they tweak it, and then when they start doing it, it didn't work the way the person that gave it to them used it. Why? They changed it way too early. The research has shown this that entrepreneurs who copy existing business models have a 20% higher chance of survival than those who tried to innovate from scratch. I think of my buddy Felipe. He literally sells houses. He's like, I want to start coaching people. How do I do it? I, I showed him my model. He didn't change it. He didn't tweak it. He didn't try to make it his own. He Copied it literally step by step. A month later, he's making so much profit, he can't believe it. And everybody's like, how did you do it, Felipe? He's like, I just follow what Dan told me how to do. And this is the crazy part is somebody's been successful. They're leaving clues. Stop ignoring them. Remember that thing I asked you to write down earlier? That thing that scares you a little bit? Here's what we're going to do with that. The first thing is you're going to find somebody that's already doing that thing that you want to do successfully. The second thing is you want to study exactly what they did for three days. Then this week, copy their first three steps exactly. Don't try to be original yet. Just copy and start. So, for example, if you want to get into YouTube or creating content, just go back to my old stuff, write down the process, see what I did, follow my steps. I have people that ask me all the time about my social media strategy. It's public, and I just say, do what I do right off the bat. I'm publishing twice a day on my Instagram and you're not. Why don't you copy that model, then modify? If you want my results, literally copy me. I want you to know this, by the way. I care more that you win than you copying my stuff. So if I do anything that you think is smart, feel free to copy it. It's yours to keep. You don't have to give me attribution. I don't care. I literally want to see you win more than I care about that. Now, copying someone gets you moving. That's awesome. But you can still fail if you're copying the wrong thing. So here's how to make sure you're on the right path as somebody that's acting dumb. Dumb strategy number two, zone of genius. The zone of genius is deciding what is the thing that you do that creates the most value in the world and actually strategically being dumb about everything else. Dumb people do this fun thing where they're just like, that's about my pay grade. And they don't get involved like finance or just stuff that doesn't matter. So, for example, if you didn't know this, I don't approve anything that goes live on social media. I see it the first time you see it, I got dumb to the need to verify what you're editing. Look for the one or two times a year that something gets published that was private that shouldn't have been included in some content. I Just hit archive. It might be seen by a few thousand people, but sometimes you just got to let go. And because you're too smart, you hold on way too long. See, smart people think they got to be good at everything. I choose to only be good at the thing that needs me and everything else. I literally act like a three year old. People ask me questions about stuff and I'm like, I don't know, of course I know. But if I answer the question, they'll always come to me for the next question. I don't want to be having that conversation. I want to have the time to do the thing only I can do. My zone of genius. So to figure out your specific zone of genius, you need to answer four questions. And this comes from the Japanese methodology icky guy. The first question is, what do you love doing? Like, what do you do when you want to procrastinate? What would you do with your friends? Like, what do you truly love to do? The second question is, what are you naturally good at? You know, what's the thing that other people say? Oh, you're really good at that. And you may not even consider it that special, but other people comment on it. That's the answer for number two. Number three is what does the world need? You might have a desire to do something because you really enjoy it, but there's no need out there for it. And number four, what can you get paid for? People might like something, but they won't pay for something unless it's a real pain. So what do people already spend money on in this area? That's the answer for number four. If you think of those four questions, the overlapping center of that diagram is, is your zone of genius. That is where you should go all in. Look at the ratios of risk of where you're taking risks. Is it aligned with your zone of genius? If not, that's where it needs to be, because that's exactly what your next level requires. But here's where smart people screw it up. They just complicated. Here's how to keep it stupidly simple. Dumb strategy. Number three simple scales. This is my mantra in life. It's our core value at my company. It's what I talk to all my executives. I simplify, simplify, simplify. Okay? You can't scale chaos. You have to keep it simple. Dumb people are rich because they keep it stupidly simple. You know, I was in a finance meeting recently with my team and they were trying to explain to me some decisions on some investments. And I was like, you guys are overcomplicating it. The truth is, draw me a picture, treat me like I'm in seventh grade. Smart people literally try to overcomplicate it because it makes them feel smart. Where dumb people keep getting richer because they get information in a way that allows them to make decisions faster. And my favorite story of this is the story of Sriracha. David Tran. The founder came to America with nothing. And his dumb plan was pretty straightforward. Sell one type of hot sauce while big companies were trying to give him advice and everybody coming in, you need to do this, you need to do that. He said, no, I'm going to do one thing and I'm going to do it really well. I'm going to make sure everybody knows about it. And it's become such a cultural phenomenon. The green cap bottle. For 40 years, Sriracha, he didn't overthink it or try to be a genius. He did one simple thing perfectly. Now he's a billionaire. The dumbest solution is usually the right one because it's the least complex. Here's why complexity always sneaks in, is because adding stuff makes you feel productive. It costs nothing to add. It makes you feel like you're doing something. But subtracting makes the system actually work. Right now you've got your zone of genius. You know what you got to do now? I got to teach you the scale in credo so you don't overcomplicate it. It requires these five ones. Here's how it works. The first thing we have to do is pick one target market. Okay, who can I serve the best? Who I want to serve? Just pick one. The second thing is one product. What's the one thing that you know will give them value? What would I sell if I knew I only got paid if they got the result? Third is one conversion tool. The one way you get them to buy. If it's through partners, if it's through paid, if it's through creating content, what's the one way you get their attention and sell them something? Number four is one channel, one place to go find them. Where are they hiding? Are they going to events? Are they on Facebook? Are they on TikTok? One traffic source? You want to go all in on one. And the last one is one year. If you commit to these four things for 12 months without distractions, you put blinders on, you will blow your mind on what you can accomplish. Dumb people kick smart people's asses because they don't get distracted. They don't add a bunch of stuff, and they're able to do a dumb thing which is to sell hot sauce with a green cap for 40 years to become a billionaire. Do you care how you become a billionaire, you smarty pants? You see what I'm saying? I love you, but stop over complicating it. If your goal is to be rich, the strategy I just shared with you is the highest probability of you getting rich. So write those down. That's your entire focus for the next year. Before we get back to this episode, if you prefer to watch your content, then go find me on YouTube. I have this episode on YouTube. I'm Dan Martell on YouTube. Just subscribe to the channel, turn on the notification bell because then you'll get notified in real time. It'll tell YouTube to tell you got a new episode so you'll never miss anything. Now let's get back to the episode. You now have everything you need. Okay. You know why dumb people are richer than smart people? You know what you need to do so that you can incorporate their dumb strategies so that you can get rich. Don't over complicate it. Don't overthink it. Just go. And I know some people are gonna watch this and they're still gonna wanna overcomplicate it. And here's why. Overthinking feels safe because it delays the responsibility. Making things complex to start means there's nothing to start to get feedback on that you can fail at. An action feels risky because it creates truth. You now know I've always said that the business plan never survives first contact with the customer. The only thing you need to be doing is selling something to a stranger. Yet we all add this complexity. I gotta get the name, I gotta get it patented. I need to get a trademark. I need to get the domain. It's like all this noise to just start. People feel like they need clarity to make a decision. Clarity is the reward for movement, making decisions and it's not a prerequisite that needs to be there. So what I need you to do below in the comments, just tell me one area of your business you're going to dumb down. Is it taking action? Is it hiring? Is it marketing? Is it sales? What are you just going to simplify and dumb down so you can get richer? I need you to leave a comment below. And just remember, if you're a business owner and you're trying to get past seven figures and you want my internal EA executive system playbook, just find me on Instagram, Dan Martell, 2ls Martell and message me YouTube EA and I'll send you the link right over. Thanks for listening to Martel Method. If you like this episode, could you do me a huge favor and go leave a review? This helps us get the podcast more ears and helps more people get unstuck, reclaim their freedom, and build their empire.