The MAIN difference between someone who makes 100k /year and someone who makes 1m?

[MTF]

Not to derail, but where is that true? Even in San Francisco, $64,177 to $192,530 is considered middle-class. It's kind of hard to believe $308k more than the top-end of middle class is 'slightly-above'.

Depends on your definition, but San Francisco is actually a good example here:

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But of course, it depends on what you consider middle class. In my opinion, assuming that the average rent is $3,609 per month for a 792 sq feet apartment, anything below $100k a year is barely middle class as you have to spend almost 50% of your income just on rent alone. And that's just renting an average apartment, not that big for the US standards. I'd imagine "proper" middle class in the US to have their own house (not a rental) with at least a small backyard.

If we consider sales prices, with a median sales price ridiculous $1,400,000, then it's clear to see how little you can do with, say, the aforementioned $192,530.

Also, just for clarification, what I meant by "probably not in line with what people have in mind when they think of hitting the Fastlane," is that in my opinion, from a purely financial viewpoint, a person won't feel Fastlane rich if they have to save 100% of their income for ten years just to afford an average house, not even something upper-middle class.

The solution can be to accept the crazy prices and, as a side effect, perhaps change your mindset (or go crazy trying to keep up with the rising costs of living), or move to a more affordable place where you can buy a nice (not average) house for 3, 4, or 5x less money and not have to worry about constantly making more and more so you can spend more time actually enjoying your life. Again, depends on what you want and need.

 

[Dianne Cohen]

First thing that came to mind was also: scale/leverage.

I work about 5h / week on my main business and make more money than many small business owners that grind +50h per week.

In the meantime I can put my time in finding other streams of income.

What is it that you do?

 

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[Abood]

This thread is gold.

 

[Pat D. Rick]

I think Network should also be mentioned here.

It's when business owners appear on shark tank, looking for investors to open some doors for them.
It's when you have a client that reffers you to another even higher paying client, so you can make money on magnitude.
It's when Elon Musk's businesses were out of cash, but he knew who to call to get some more money in.

Getting in touch with the right people should not be underestimated, especially if they have the right mindset as well.

 

[Tiago]

We lie to ourselves that it's better to not have employees since it's more aligned with subconscious goals. Less employees typically equals more freedom in the short-term. They're an additional component that needs to be managed, even if you're outsourcing. So our preference is to not hire them and stay small vs hiring them and adding on short-term headaches that can eventually be delegated.

Eventually those headaches are worth it, but it's something that I see myself and other entrepreneurs avoiding as much as possible. Even in this thread I'll bet that my reply gets less likes and replies since it's not aligned with the culture of "online, automated income". However, if you look at any billionaire, almost all of them made it there by having a lot of people under them. Same if you meet with multi-millionaires - it's an extrapolation of that.

This post has been a slap in my face. I've read it two days ago and it's rumbling inside.

Thank you so much, this has changed how I go about growing my business.

 

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[apollo_web]

To have a crack at this myself I would say - scale.

The three friends closest who are multi-millionaires all made/make their money through massive scale.

- One made 100,000s of sales of a product
- The other has 10,000s of monthly users
- The last works with massive businesses to help protect 10,000s of assets.

They all have massive maths on their side that makes their income easily reach 7 figures annually.

Love this, really interesting!

Going after the "scale" thing myself, taking a long while, but will get there!

 

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[Rawr]

Asked a MM friend 2 days ago 'is it true person working your biz and making $50k vs you making MM is close to amount of work?' he said absolutely, thats to MJ's point early on.

other thing i suppose is your motivation for doing it - one guy just cant stop making biz, and as he said 'i have a kid, if i stop people die' early on to me.

other one was burned by a golddigging gf in college and has a hangup that he must be successful. he's better w it now, but as we were discussing his very expensive rent he said 'im not sure i like living in such an expensive place..and i wish i did buy a used luxury car instead of new' he can afford both easily though..but money goes into the biz, which brings me to third point

those 100k and under guys dont have MM assets like warehouses, where the other guys do. so when you have a warehouse which will net you 250-300k in rents thats pretty fkn great and you can do whatever...problem is i dont think either one of them will stop anytime soon, lofty goals.

 

[Lee H]

In my mind the key difference between a$100k business owner and a $1m or even $1bn business is vision.

Those that create massive multi-million dollar businesses have tremendous vision, they look to solve bigger problems at a higher scale than someone running a$100k/yr business.

They also look at how they solve the problems associated with building such a business - building an amazing team, leveraging others, building relationships, automation, marketing, customer experience etc. Basically all of the things people have mentioned in this thread.

But it all starts with a huge vision followed by a willingness to take risks and execute on that vision.

 

[sparechange]

Delegation & hiring talent.

I don't think you can do it alone (ok you can) Although I'd guess it's a hell of a lot easier when you have a good group of people around you, thought about this the other day......

Imagine you had Mark Cuban & Elon Musk working with YOU on your project/business, what kind of results could you expect in a months time?

Why do the work yourself when you can hire smarter and more talented people than you?

 

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[Paul David]

Headcount.

Leveraging your employees' time is the easiest way to multiply your efforts. Even though we like to pretend that we can do everything ourselves, and search for examples of entrepreneurs that did it all by themselves, it's a lot more common to make 7 figures while managing others.

True but I know a guy with a marketing agency who has 3 VA's only and does $100k profit a month working with carpet cleaners.

He signed up one cleaner in the US who was part of a franchise, did a good job for him and when the franchisee went to their annual meet up he told the other and by the time the event was over he had about another 30 carpet cleaners signed up!

 

[MakeItHappen]

The one thing that glued it all together, I knew I was going to make it and that belief helped me through thick and thin

Did you have this belief right from the beginning or did you develop it?

 

[MHP368]

grit and determination

Yah got moxy kid , spunk , chutzpah , the right stuff.

 

[TonyStark]

Automation, employees, and assets.

 

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[lunga ngcobo]

i th

Question for the forum...

What is the MAIN difference you see between someone who makes 100k /year and someone who makes 1 million plus?

It is a bit of a simplistic question but I am curious how people on here would answer this...

- Habits, discipline, mindset?

- Systems and scaling?

- Value in the marketplace and demand?

- All of the above and more?

This question isn't meant to be a "what is the one thing that will make me a millionaire" but rather when you look at REAL examples of people making a million plus a year what trends or common characteristics of them or their businesses do you see? (if any)

I think the answer is all about building a business that is easy to automate and at the same time allows you to easily scale up with unlimited revenue possibilities.
Once you set up the business then you may hire professionals to run it. You will be amaized of how some other people can do the job much better than the founder but are stuck in the employee mindset.

 

[roguehillbilly]

1. Whether you even need it - most people from this forum are from the US, and many of them are from expensive cities where 100k/year isn't enough to live comfortably. Even if they make 500k, in some cities this is only slightly above middle class, which is probably not in line with what people have in mind when they think of hitting the Fastlane.

Not to derail, but where is that true? Even in San Francisco, $64,177 to $192,530 is considered middle-class. It's kind of hard to believe $308k more than the top-end of middle class is 'slightly-above'.

 

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[roguehillbilly]

The solution can be to accept the crazy prices and, as a side effect, perhaps change your mindset (or go crazy trying to keep up with the rising costs of living), or move to a more affordable place where you can buy a nice (not average) house for 3, 4, or 5x less money and not have to worry about constantly making more and more so you can spend more time actually enjoying your life. Again, depends on what you want and need.

Fair enough -- I love the financial samurai btw
Alright, enough derailing.

I don't make a million bucks yet but I've made six figures so I can't exactly answer this question, yet.
I think the scale idea makes a lot of sense though. Doing what you are successfully en masse will bring riches.

 

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[Bryan James]

I'd say scale and delegation mainly. When you expand and grow the sources of revenue/profit (scale) and clone yourself (delegation), so to speak, the whole operation rapidly grows in addition to your net worth in regards to ownership of the company. Plenty of multimillionaires don't even pay themselves for a while, instead they reinvest the earnings in scaling and delegating until they can either afford to start paying themselves or sell the company outright.

 

[Ing]

Bump. Interested in more

 

[ItsAJackal]

1) a guy I know is basically a 1 man band, with some support staff. He alone, though, is responsible for the lion's share of his company's revenue. He does deals. Started with smaller deals, then progressed to larger ones. I lost track of him a while back, but he buys stuff on a contract and then sells the entire contract to someone else for a few percent markup. Do that with large enough items, and you make a pile of cash. millions per year of profit. He was REALLY GOOD at putting these deals together.

Like just importing/exporting? What does this mean? Just curious.

 

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