Momentum Podcast: 557
Part 2: The Billionaire Code
by Alex Charfen
Tune in for the second part of The Billionaire Code presentation. In this episode, I reveal the first five of the nine levels that make up the matrix to get from $0 – $100 million and beyond.
In part two, I share with you the names of these first five levels and what each entails. We’ll get into their annual revenue, the number of businesses in the US at that level, how much time you should be putting into your business, fall back questions, and what you need to ascend to the next stage. That way, you can pinpoint exactly where you are and what it’s going to take you to move forward.
If you missed it, make sure to go back and listen to part 1 now!
Full Audio Transcript
Jeremy Bergeron: Hey everybody, this is Jeremy Bergeron checking in from Alex Charfen's team. Super excited to introduce the second part of Alex's presentation on The Billionaire Code Matrix.
These are the levels that every entrepreneur goes through from zero all the way to a 100 million plus. This episode specifically gets into the first four stages from zero to a million dollars a year. Check it out.
Alex Charfen: I'm Alex Charfen and this is The Momentum Podcast made for empire builders, game changers, trailblazers, shot takers, record breakers, world makers and creators of all kinds.
Those among us who can't turn it off and don't know why anyone would want to. We challenge complacency, destroy apathy and we are obsessed with creating momentum so we can roll over bureaucracy and make our greatest contribution.
Sure, we pay attention to their rules, but only so that we can bend them, break them, then rewrite them around our own will. We don't accept our destiny, we define it. We don't understand defeat because you only lose if you stop and we don't know how.
While the rest of the world strives for average and clings desperately to the status quo, we are the minority, the few who are willing to hallucinate there could be a better future and instead of just daydreaming of what could be, we endure the vulnerability and exposure it takes to make it real.
We are the evolutionary hunters, clearly the most important people in the world because entrepreneurs are the only source of consistent, positive human evolution and we always will be.
Let's jump into the billionaire code because I shared a little bit of this before I started the webinar. Here's what the billionaire code is. It's the nine levels that you go through in your life to get from startup to a hundred million dollar business and I'm going to take you through a summary form of the billionaire code today and show you each level and a few of the aspects of each level so that you can pinpoint where you are and start to understand what you need to do next and what's going to move you forward the fastest and then at the end of the webinar I'll give you an opportunity to download the entire billionaire code, the matrix that I use.
Literally, if I'm coaching someone, talking to a business person, if have a friend come over who needs help with their business, first thing I do is I'd pull out the billionaire code because it's like the Rosetta Stone for figuring out what you need in any company.
In fact, if your company is not growing right now, here's what I want ... Here's my challenge to you. I want you to figure out what revenue range you're in and ask yourself, "Do you have everything in that level that you need?" And then also, "Did you do everything in the level before?"
Because here's what I want you to understand about the billionaire code. As you ascend from level to level, what the world out there says, what got you here won't get you there. How many of you have heard that?
Here's the reality. What got you here will shred you moving forward. What got you here will destroy your business, your health, your marriage, your finances, and your life if you keep doing it.
I will show you definitively why each level of the billionaire code requires a transition and a behavioral change from the most important person in your business, you. Each time you move up one of these levels, you're going to change your behavior, you're going to change how you show up in the business, you're going to change what you focus on in order to grow your business.
I've had people ask me before, "Well, what if I don't want to do those things?" Well then, you shouldn't grow a business because this is how it works. This is definitively how you grow a business, how you and the changes you'll have to go through and the behavioral change you'll have to go through to go from zero to a hundred million, let's jump in.
The first level of the billionaire code, you know what? I'm going to go back one. The first level of the billionaire code isn't on the billionaire code. The first level of the billionaire code is the crowd. Do you know what I mean when I say the crowd?
It's the people out there. It's everybody else. It's that big group of humanity that hasn't yet awakened and said, "I want to do something more. I want to be something more. I want to make something happen here."
What happens is a member of the crowd stands up one day and they say, "You know what? I want to do more. I want to be more, I want to make something happen. I want to see if I can be more significant. I want to help more. I want to make a contribution."
When you get into that place, you're in the first level of the billionaire code, which we call ... Whoops. The first level of the billionaire code ... That was super dramatic for nothing.
The first level of the billionaire code in there I said two, seeker. The first level of the billionaire code is seeker. This is when you step into wanting to be an entrepreneur. When you realize that there might be more out there for you, when you realize you might be able to do more and be more, make more happen, ignore the URL in the lower right-hand corner, it won't do anything, but we want you to make sure that a seeker is where you start to understand what you want to do as an entrepreneur.
Here's the problem with being a seeker. It is one of the most precarious places on the billionaire code. Here's why. When you first raise your hand and become a seeker and step into entrepreneurship, you have no focus.
Most people get into entrepreneurship and they start dabbling and looking around and trying to figure out what to do next. Being a seeker is precarious, and you have to get past it fast.
Let me show you the details. The annual revenue for a seeker is zero to $40,000. In the United States, there are 16 million seekers. There's 29 million businesses in the United States. Over half are under $40,000.
If you're just getting out in this game or starting out in this game, that should give you perspective. 50%, more than 50% of the businesses in the country are under 40%. More than 50% of the businesses in our country are on the bottom tier of the billionaire code.
When you're a seeker, what you're doing with your time is you're dabbling. You're not putting full-time into the business, and if you do, you'll quickly rise in the ranks of the billionaire code, your fallback question at seeker is, "How do I stop pressure and noise?"
Anyone who's been in the place where they're not making money on what they want to do like, and by the way, you can actually be making money and still be a seeker. We run into this all the time.
We work with physicians that have incredibly successful practices, like million dollar practices and decide they want to be a thought leader. They want to be an author, a speaker, they want to do something else. They have a product that they've always wanted to put into the market.
They see a solution nobody else sees. You can be a seeker over here and when you step from that practice to seeker or when you step from the crowd to seeker, the pressure and noise is overwhelming.
There's the excitement of being an entrepreneur, but because you're new and fresh, you just don't know what it is that you should be doing and this question how do I stop pressure and noise comes up and it ... Then our biggest need at seeker by far is keystone habits, routine, daily planning, setting outcomes and personal care, taking care of the most important person in the business.
By the way, if you're over $40,000 and you don't have keystone habits like hydration, breathing, nutrition and movement, if you're not physiologically, cognitively and chemically supporting your body, this is something for you to think about because you might be able to sneak past this, but there will be a point where it catches up to you and when it does, it's devastating.
If you know your morning routine set, if you know you have your daily plan in place, if you have outcomes, you've got goals in place, you will get past seeker much faster than most people do because this is a place that people can get stuck for a long time.
To graduate from seeker, you have to understand who you want to serve. Go out into the world and pick the market that you're going to serve. A lot of people would tell you different, they'd say, "Figure out the product." Or, "Figure out the process." Or, "Figure out whatever it is."
But the reality is if you want to go fast, figure out the population you are going to make a difference for. Who are you going to show what they're going to do? How are you going to help them? What are you going to do to help them?
What is the change you want to make? How will you know you're successful when you go out and work with your avatar, with your group? That's how you graduate from seeker and you get into the second level of the billionaire code which is starter.
Hang on one second. We should have seen ... There it is. I wanted to show you the summary slide. Seeker, zero to $40,000, 16 million in the United States. You're dabbling, the question is, "How do I stop pressure and noise?"
What you need is keystone habits, routine, daily planning, setting goals and outcomes and personal care, and you need to understand who you want to serve. When you graduate from seeker, when you understand that person that you want to serve, you move up to starter and this is where as an entrepreneur, you're now working part-time.
You're your part-time effective in a business. The annual revenue is 40 to $100,000. The number of United States is six million. Let's just pause for a second and get perspective on business ownership in the United States.
In the entire country, there's 29 million businesses. I just showed you at zero to 40 there's 16 million. At 40 to 100, there's six million. That means I have 29 million businesses, 22 million are under $100,000, under six figures and that doesn't mean that's what the entrepreneur makes.
That means that's the total the business brings in. The entrepreneur is making a fraction of that. Your time at seeker again is part-time. Your fallback question is what is wrong with me? Because you start getting some momentum and then you look around you and when you're a seeker, what it feels like, especially with the advent of social media and all of the public facing stuff that we have today, it feels like everybody else is winning and you're not and you start wondering like, "Am I doing this wrong?"
Your biggest need is just like graduating from seeker market and avatar clarity. Who are you going to talk to? How are you going to talk to them and what change are you going to make for them? And to graduate from starter, you start selling consistently.
If you can start lining up the people that you need to talk to and start selling consistently, and this is low leverage most of the time, one-on-one in most businesses. If you can make those initial sales and then start consistently selling, you'll graduate from starter to the next level that we call promoter.
Now, promoter is an exciting level because when you get into promoter, you're full-time. A hundred to 300,000, you are putting in a lot of time into the business. The annual revenue or the number in the US of promoters is 1.7 million.
Again, you start adding all of them up. You see it gets smaller and smaller as we go up the billionaire code, it's a lot harder to get to each new level. Most businesses fail for businesses to actually graduate through each of these transitions is a huge undertaking.
Your time is full-time. You are now committed to this business. Your fallback question is, "How do I get ahead?" A promoter's mindset has to be, "How do I get ahead? How does the business get ahead? How do we get more going on here?"
Your biggest need is to leverage lead generation. At promoter, a hundred to 300,000. First, we have to understand who we wanted to serve, then we had to convert consistently.
Now we want to line up a long line of people that we can sell at promoter and be able to convert consistently at a higher volume and to graduate, you generate leads and convert consistently.
As soon as you're generating leads, converting consistently with leverage, you graduate from promoter to the next level, which we call builder. Builder is an appropriate name for this level of the billionaire code because you're literally building the business and this is hard.
I just want you to know like if anybody tells you this is going to be easy, there might be one out of 21 out of 101 out of 200 people that get to builder and don't really experience a lot of challenges getting through it, but the trip to seven figures is typically a really difficult one.
In a builder, here's what happens. Your 300 at one point or to a million dollar business, there's 1.9 million builders in the United States. Your time has gone from full-time where you didn't possibly think you could be doing anymore to overtime because now you have a bigger business, more responsibilities, more stuff that has to get done and a lot of it falls to you.
Your fallback question is how do I get further ahead? Not just how do I get ahead, but how do I keep getting further ahead? Because at 300 to a million, the growth of the business is almost completely and totally dependent on what you're doing with your time, where your focus is, what you're producing, what you're making happen.
That's just how it is when you get to the builder level. You are responsible for most of what happens in the business because at 300 to a million, you don't have the revenue or the resources to build out a full team.
Your biggest need at 300 to one million is to leverage sales. How do you get someone in or a process in where you're not doing all the sales anymore. As soon as you're not converting sales, you can grow really fast and if you do grow really fast, here's what you have to do to graduate at builder, build systems and process around what you do well.
This is one of the hardest things for entrepreneurs to do. In fact, most companies never ... Who are at builder who get stuck at builder, they get stuck there because they never build systems and processes around what they do well.
In fact, let me show you in context here. Seeker, 16 million, starter six million, promoters 1.7, builders 1.9. Why does it go back up at builder? Well, we did a ton of research here and 300 to a million is where professional businesses go to die.
They just end up hanging out here forever and by professional business, I mean accountants, lawyers, chiropractors, doctors, 300 to a million is where a lot of them end up and just get stuck. They can't get any further leverage, they can't get anything else out of the business.
They end up staying here because they don't build systems and processes around what they do well. In fact, in a lot of professional businesses, the mindset shift that needs to happen is that the professional needs to realize they are not a unicorn.
They can go out and get help, they can get leverage. A lot of times when I talk to people in the 300 to one million and they've been there for a while, they say things like, "I can't possibly see how somebody could help me do what I do or how I could bring in somebody to get leverage."
"You don't understand how special what I do is." And what I always reply in the most gentle way I can and the most connected way I can is that, "You're not that special." We've helped hundreds of businesses at 300 to a million build systems and processes around what somebody does well and grow like crazy.
It doesn't matter what your expertise is, it doesn't matter what you do. Right now, there's a massive amount you're doing and what you need to do is a tiny little sliver, and when we chip things away and get you to that tiny little sliver, that's how you transition further up the billionaire code and you go to operator.
Jeremy Bergeron: Hey everyone, it's Jeremy again. Look, as a business strategist on Alex's team, I have the privilege and honor of connecting with entrepreneurs at every level of the billionaire code.
It's an honor and a privilege to begin to unpack some of the things that every day entrepreneurs deal with in their businesses. If you'd like some support and you want to know how we've been helping entrepreneurs grow and scale their businesses all along the billionaire code, head over to this website.
It's billionairecode.com/apply-now. It's billionairecode.com/apply-now. You're going to fill out some information. It's going to get forwarded to me directly. I'll review it, I'll promise I'll take time to look at each application specifically and I'll get back with you no matter where you're at on the billionaire code, we can help you. I'm excited to connect with you. Thanks again.
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