Alex Hormozi: How I Accidentally Made $17M when I was 28 Using “Leverage”

Last updated: Jun 15, 2023

The video is about the four ways fortunes are made, the difference between money and wealth, and the types of leverage that exist, including permission and permissionless leverage, and how to harness them in your business to build wealth.

This video by Alex Hormozi was published on Jun 11, 2021.
Video length: 07:54.

In this video, Alex Hormozi talks about how he accidentally made $17 million when he was 28 years old by stumbling into one of the four ways that fortunes are made.

He discusses the difference between money and wealth, the four types of leverage that exist (labor, capital, code, and media), and how permission and permissionless leverage can be harnessed in business to build fortunes. Hormozi explains that labor and capital are permission-based leverage, while code and media are permissionless leverage.

He also shares his personal experience of transitioning from a service-based business to a media business, which helped him make his fortune.

  • The speaker accidentally made $17 million when he was 28 years old.
  • The video discusses the difference between money and wealth, the four types of leverage, and how to harness them in business to build wealth.
  • Wealth is about assets that earn while you sleep.
  • The four types of leverage are labor, capital, code, and media.
  • Permissionless leverage is the easiest way to gain leverage and create wealth, with media being the easiest and code being the second easiest.

How I Accidentally Made $17M when I was 28 Using “Leverage” - YouTube

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Introduction

  • The speaker accidentally made $17 million when he was 28 years old.
  • He stumbled into one of the four ways that fortunes are made.
  • The video discusses the difference between money and wealth, the four types of leverage, and how to harness them in business to build wealth.
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Money vs. Wealth

  • Money is a medium of transfer that allows us to acquire assets.
  • Wealth is about assets that earn while you sleep.
  • Rich people do the right things, but wealthy people own the right things.
  • Lawyers, doctors, and accountants cannot get wealthy unless they transition from being a practitioner to owning an entire practice.
  • Fortunes are made through wealth, not just money.
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The Four Types of Leverage

  • Labor is the first way of gaining leverage, but it is the hardest to employ.
  • Capital is the second main way that fortunes were built, using other people's money as leverage.
  • Code is the third way, using permissionless leverage because it costs zero dollars to have an additional person consume or get utility from what the code does.
  • Media is the fourth way, using permissionless leverage to create content that can be consumed by millions of people.
  • Media is the easiest way to gain leverage and create wealth.
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How I Accidentally Made $17M when I was 28 Using “Leverage” - YouTube

Permission and Permissionless Leverage

  • Labor and capital are permission-based leverage, requiring other people's permission to use.
  • Code and media are permissionless leverage, not requiring anyone's permission to use.
  • Permissionless leverage is the easiest way to gain leverage and create wealth.
  • Media is the easiest way to gain permissionless leverage and create wealth.
  • Code is the second easiest way to gain permissionless leverage and create wealth.
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How to Build Wealth Using Leverage

  • Media is a great way to capture eyeballs and sell them with no incremental cost, resulting in high margins that build fortunes.
  • Employing multiple types of leverage, such as using other people's money and labor to create media, can juice returns even more.
  • Creating media, such as blogs, YouTube videos, and podcasts, can be done for no money and distributed at zero incremental cost, making it a great way to build wealth.
  • The ways to build fortunes have increased over time, and the level of permission required has decreased, making it easier to create wealth without anyone's permission.
  • Tapping into one of the four types of leverage (media, labor, capital, and code) can make a business more valuable and increase the chances of building a super fortune.
  • Deliberately seeking out leverage can lead to greater success in building wealth.

Watch the video on YouTube:
How I Accidentally Made $17M when I was 28 Using “Leverage” - YouTube

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