How to MAKE MORE Money WORKING LESS (for Online Entrepreneurs and Digital Nomads)
Let me cover the most common ones because I've seen them too often.
1. Double your rates. Even if you keep half the clients, you'll make the same money working 50% less.
2. The Pareto Law 80/20. 80% of the results come from 20% of your... okay.
3. The Parkinson Law. Shorten the timeframe, etc.
Absolute and Relative Income
1 of 2. How much you make and how much you keep.
Average Andy, our mediocre Digital Nomad that I always use in the examples, makes 100,000€ a year and pays 3,000€ to live in a small flat in Barcelona—in the middle of the fumes and concrete. That's 36k a year. So 64k for him. But he pays around 30% in taxes (after all the deductible stuff), so 18,000€ ciao, ciao—they are going to ESPAÑA's Government. Hacienda querida. 64-18 = 46,000€
On the other side, we have Extraordinary Ely. She read my book Travel Without Working. Extraordinary Ely lives in a gorgeous wooden cabin in the middle of nature, house cleaning once per week included, utilities included, the beach at 8 min walking, hot Brazilian people around all the time; 1,200€/mo.
She has her tax residence in a tax-free country, so she legally pays 0% taxes (and she doesn't have to make the declaration because the government does not require it; so no bank statements and all that hell.
She makes the same 100,000€ a year, but she keeps 85,000€. By the way, she doesn't need a two-week vacation because she lives in paradise 365 days a year.
2 of 2. How much you make per hour worked.
Average Andy makes 100,000€ a year, working 10h a day and worrying about fires in his business the other 14h too. He never entirely disconnects as a CEO of his online company.
This month he landed a 10,000€ client and bragged about it. He thinks he is the fucking boss. But actually, after taxes, that is automatically worth 7,000€. But he doesn't care; when he talks with friends, he talks about revenue—which is the vanity metric marketers and CEOs use to brag in front of people.
To fulfill the promise to the client, he needs to work 210h on the project (over the next 3 months). We'll get to the rate per hour in a second.
On the other hand, Extraordinary Ely, who read the book Travel Without Working, doesn't sell her time. She has her knowledge in a premium course that refined to perfection after doing 20 live group sessions (1h each). The course sells passively by word of mouth. Every month the results get more exponential—after more and more students finish the course with extraordinary results and recommend it to their friends and communities. This quarter she sold 10 courses at 1,000€ each.
Every time Ely receives a question, she updates the course instead of answering it directly. After a year, she only has to spend 1h a month improving the course with new unaddressed doubts.
What's the result:
Average Andy: 10,000€ that turn into 7,000€ after taxes. Working 210h, that's 33€/h.
Extraordinary Ely: 10,000€ with 3 hours of work per quarter, that's 3,333€/h. Because she legally lives tax-free.
If Andy's client is satisfied, he will recommend the service. One new brand ambassador for Andy this quarter.
If Ely's students are satisfied, she has gained not one but 10 new brand ambassadors.
Let compound interest work, and with time Ely's results become exponential while Andy's ones are linear.
We have to take into account the time to create the course, the time to promote it, the cost of the domain, membership area, email marketing, bla bla bla. Yes! Yes! Yes!
But 33 to 3,333 euros per hour is quite a difference.
There are Average Andy's and Extraordinary Ely's in the world. Who do you choose to be? How many years do you want to remain in your working and financial situation? What if a single book could show you how to become an Extraordinary Nomad? The link is here.
So, to spot the difference between a flashy and a wealthy entrepreneur, ask them:
1. For the company's net profit, not revenue (after costs, liabilities, and taxes)
2. Personal Income after the cost of living expenses, liabilities, and taxes (how much you keep)
3. Hours worked per week.
4. Money per hour worked.
5. Perceived and subjective quality of life from 1-10 (stress levels, how are their daily surroundings, access to nature, etc.)
To sum up
The wealthy Digital Nomads and Online Entrepreneurs sell products (their knowledge), the average ones sell their time.
How to create these products and make them irresistible (so they sell all alone)? Get a copy of my book or watch the next video to learn how to invest to make more money than Andy and Ely combined working zero hours.
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