Hey friends, Kris Krohn here and I’m
super excited to share with you today how you take $10 and turn it
into $100. I”m going to share with you 4 specific principles and
then how to actually do it. Okay. So, check it. I’m really excited
about this. I’m going to show you how to do a little magic trick. How do you turn $10 into $100? Now, first, It doesn’t look that powerful, right? It’s
like, “Dude, 100 bucks I could spin that really fast.” But just pause for a second.
If you can learn the principles behind turning $10 into a $100, that means you know how to get a 1000% on your money. That’s
freaking awesome. And if you can do it in small ways, you can learn how to what? You
can learn how to do it in massive way. So, you know at first when Nate’s like, “Dude, Kris this would be a great video topic.” I’m like, “Dude, that’s lame. No one’s going to want to… And then I’m like, “You know what? No, that’s actually brilliant if you can
double money on a lemonade stand.” Well, I’m going to show you a practical way of
actually how to do this in a very simple format. I don’t even hook it up for you,
right? But first I want to share with you the 4 principles of “how do you go
essentially from $10 to $100?” Wouldn’t you like to know that?
Okay, here’s principle number 1. I want you to write these down. These are
important. Principle number 1 is I want you to buy low sell high. Now, that’s
going to come across extremely basic. But I want you to understand that one of the
richest men in the world– Warren Buffett write a 900-page book called snowball
and it’s all about buy low sell high. And it sounds like it really makes good
basic sense but it doesn’t if you don’t understand principle number 2.
Principle number 2 is what’s called Max margin. Now, I want to slow this down
because I don’t want to lose any of you. But the margin is the difference between
what you bought something for and what you’re selling it for. For example, if I
buy something for 9$ and I sell it for ten dollars, how much I’m
going to make? 10 minus 9 is $1. Okay, if you buy something for a nine you sell it for
10 and you make a dollar, would you call that a big margin or a small margin? Well,
it’s relative. You don’t know. But what if you could buy something for $5
and turn it into $10. You double your money. Would you call that a
bigger margin than $1, on the previous example? It’s way bigger margin. But what
you understand that one of the number 1 reasons that people fail in business,
is they don’t have a business product that has an adequate margin. The bigger
the margin, in other words, when you buy low, sell high, the lower you can buy
something and the higher you can sell it, what you’re actually creating is reduced
risk. It’s actually what Warren Buffett calls a Margin of safety. You want to
maximize that margin of safety. So, that’s the second principle. Okay, here’s number
3. You need to minimize your costs. Now, what do I mean by this? I mean that
whatever you’re buying are you getting it at the best price? Are you selling it
the right way? Are you are you adding unnecessary costs
to your business? Because remember, at the end of this video I’m going to share
with you how do you take $10 and actually turn it into a $100. But you got to consider your cost. Because if your costs are out of
control, you could have an amazing margin. But if
your costs aren’t and check, guess what? It doesn’t matter, it’s too expensive. Now,
I personally know this from firsthand experience, having done a lot of business.
That sometimes I have a great margin, sometimes I’m making a lot of revenue
but then there’s no money at the end. And you know why? It’s because my costs are
too high. So, you got to keep your costs in check. The 4th principle I want to
share with you is understanding the difference between revenue versus profit.
Okay? Revenue is all the money that comes into the business. Profit is what you
keep. And here’s again one of the top mistakes that business people make, they
think that more revenue equals better. They think a bigger company is better.
I’m telling you that in business in many and most cases, bigger isn’t better. And
more revenue isn’t actually better. What’s better is more profit. It means
that your costs are on jet. Now, let me just give you an example so that you
understand. This let’s just say for a moment… And now, I want to give you this
very real example. Let’s say that you could purchase a book for $10.
It’s a ten-dollar book. And let’s say that it’s my real estate book. So, you
like me, you like my channel, you like my book, you’ve read it, I let you download
it for free on the e-book, you listen to the audio book. You actually get a
physical copy of the book for 10 bucks and you’re like, “Dude, I’m so passionate
about this whole real estate thing. I bet I could go to a buddy. Tell him about
this channel turn him on to it. And I bet I could sell the book for… Not 22
or $24 at a retails for. But I bet I can sell the book for 20
bucks. I just want to ask you right now, just check in. If you could buy my book
for $10 and you could sell it for $20 then you’re going to make how much of a
margin? Your margin is going to be $10. That’s a 50% margin. I’m going to
tell you right now, 50% margin is great. The
average businesses actually have a take-home keep of eight to %10.
So, if you’re 50%, that’s pretty awesome.
Now, I want to show you a little example here. Let’s say that all you did was
start with 10 bucks and we’re trying to get to $100, right? I buy a
$10 book. You like me, you like this channel, you read the book you like
the book. You go talk to your parents, you go talk to your brothers and sisters.
Your friends, your neighbors, your employees, your work people, your
grandchildren, your whatever’s. And you say, “Hey, that ten-dollar book, it’s really
awesome here are reasons, XYZ. Buy for 20 bucks. I’m positive you could do
it. Are you? You should be. Now, if you do that, how much money you’re
going to have? You have twenty bucks. What could you do with the $20? You could go buy two more books. So, now we’re buying two books for that
$20 and now you would be selling them for how much? Well, if it’s
you’re adding $10 on each book, selling each for twenty bucks, you’d sell
this ten-dollar book for 20. And this ten-dollar book for 20. Now, what do
you have? You have $40. Now, by the way, what could you do with that
$40 dollars? You could actually go and buy four books. And you could sell those
books for 80. And then from there, you could go buy 8 books. And then from
there, you would sell them for 160. Now, check it out. You’ve sold a
total of 8, 9, 10, 11, 12, 13, 14, 15. You sold
15 books. You start with 10 bucks, now you have 160. If you don’t buy any
more books, you just took $10. You didn’t turn into a $10, you
turn it into a $160. Now, that’s pretty simple right? Like
don’t you believe you could actually do that.
But now let’s apply these principles. Did we buy low and sell high? Yes.
Did we have a good margin? Let’s assume that this 50% is a fantastic margin. But
now I want to make this very real. Let’s say that you actually told your sister
to sell the books for you. And you were going to pay her $5 on every book.
And all of a sudden, you had to buy the book for 10. Now you’re adding five
dollars of cost. It wouldn’t be 15 books to get to 160. To get to the same 160, you might need to sell
a lot more books. So, the question is did you keep your costs
in check? And if you didn’t, then all the sudden, you don’t get to keep profit
versus revenue. You’ll still show great revenue but you
just kicked it all right back out the door. Does that make sense?
Friends, this stuff these basic principles, I’m telling you right now
that there’s a lot of big businesses out there. They do not adhere to these basic
principles. In my life, I have often not adhered to them. I’m sharing with you for
a reason. Because I’ve learned how to do this. Now by the way, if you want to know
how to not just take $10 and turn it into a $100. If you’d
like to know how to take like $1000 and turn it into $50,000. Check
this out. So, 2 things here that are resources I think will help you out. 1,
is if you actually want to get my physical book, you can actually just get
it for the cost of shipping it to you. You can get it for free.
Go sell for 20 bucks. You’ll make more than $10 on it. And that’s one thing I
can do to actually help you take that $10 and do that as many times as you
want. But if you also head over the website, you’re going to learn about how to
take $1000 and turn it into a solid $50,000 return on
a good stable real estate deal. You can learn how you can work with me and my
team and we can actually show up and make that happen for you.