Complete List of Way to Get Rich (62 Examples)

nowhere on the web was there a complete list of ways that one could get rich so we did the hard thing and built it ourselves any one of these if executed well could get you to financial wealth so let's get started here's a complete list of ways to get rich with examples welcome to alux.com the place where future billionaires come to get inspired okay so the first 10 are the obvious and illegal ones after that we get into some good stuff so first up be born rich or adopted by a rich family we don't choose our parents but a small percentage of the population gets better cards at Birth before you judge them think that this is the same thing that you want for your kids you work hard so they don't have to struggle the same way you did actually some of the most successful people in the world were born into middle class families think Bill Gates Jeff Bezos Mark Zuckerberg Elon Musk richer middle class they all had access to basic opportunities to build from they went to University in a developed city which gave them access to tools and networks it might not have been born into a rich family but that can change with you win the lotto they say Lottery is a tax for people who can't do math but you know every once in a while the planets do align and you end up with a big winner people will waste fortunes away hoping that one day they might be the ones who win big by the way 70 of lottery winners end up broke and even more sad than they were before winning the lottery because they had a taste of the money and blew through it all and now they can't deal with being broke again win your way to riches through competitions who win Who Wants To Be A Millionaire or some other random raffle and you find yourself the big winner of some prize some might be more skill focused While others might be more Lottery than strategy but by the way whenever you win a car or something on a TV show that prize doesn't include the tax so you have to pay that tax out of pocket if you want to receive the actual prize most TV game shows never actually give the player that prize instead they settle for a smaller cash amount Mary Rich divorce someone rich or have the kid of someone Rich the do you feel some people watching this video getting a bit uneasy when we say that well it is the truth out of the top 10 richest women in the world nine of them got the money from their husbands through divorce or death and the other one had a sex tape leaked trapping a Rich Partner by having their child is unfortunately a real way that some people accumulate wealth and fame you can ask Nick Cannon about it inherit the money your Rich Uncle hit it big and then passed away with no next of kin we're not talking about the scam emails you get pretending to be from a bank manager but a natural succession of financial wealth you never know which side of the family doesn't have a will in place and you might find yourself in a windfall have people donate you the money this is how some pastors get to own private jets we actually have a video where we break down their entire operation in detail here beings are caring by nature which can spiral out of control once there's an economic incentive added to the mix and speaking of churches here's a terrible map of all the churches in Poland we found while researching this video illegal activities like robbing someone Rich we'll bundle all of these up right here you've heard about them you've seen people in the news because of them illegal activities are highly profitable which is why people are willing to risk everything to do them for everyone listening thinking that you'll get rich and successful doing something illegal look okay going to jail disqualifies you from the game of success if you can't do it in the light you shouldn't be doing it at all suing someone rich and winning someone rich is usually a company back in 92 a woman spilled hot McDonald's coffee on herself to the point where she got third degree burns totaling ten thousand dollars in medical bills she asked McDonald's to reimburse her for the costs and Mickey D's declined so she sued long story short she won 2.7 million dollars and McDonald's was forced to change their practices a lot of people Sue big companies and win but most cases end up with a large Financial settlement outside of Court remember the Red Bull commercial where they said Red Bull gives you wings ever wonder why those commercials stopped airing well a guy sued Red Bull and won 13 million dollars because the energy drink didn't give him Wings you know sometimes you just you can't make this stuff up sell your body physically you don't call it the oldest profession in the book for nothing highly lucrative with a running clock on it based on your beauty and willingness to well please the highest paid workers flock to big events where rich people hang out through the year the Cannes Film Festival is a great example where workers from all around the world rush to provide their services the highest paid ones can earn upwards of forty thousand dollars a night sell your body looks or appeal online Attractive people have a massive unfair advantage in life if they know how to use it before it goes away some people have managed to build fortunes off the way they look with the internet being a Content machine subscription platforms like patreon only fans fansley Etc they've become private membership clubs these creators leverage other platforms to drive people to their x-rated content amaranth earns one hundred thousand dollars per month streaming on Twitch but 1.5 million a month on her only fans Vlog Squad member Karina Kopp also earns around a million a month do you remember the Dr Phil catch me outside girl 50 million in earnings the highest paid male adult Creator is probably the rapper Tyga who reportedly earns around two to three million a month now that we're finally done with the weird ones let's jump into the stuff that's not gonna get you banished in society someone Rich badly wants something that you have and that's luck it might be the case that by some mere chance you find yourself in possession of something someone with a lot of money wants or needs they're used to overpaying so they'll throw money at you it's the case for this family in Australia where they refuse to sell their home and move they purchased the land and property 11 years ago for around one million dollars and refused to sell it every year the property developer came knocking the last offer was for 33 million dollars this also happens with cars some collector wants that one piece that's missing to complete their collection and you just so happen to have purchased it at retail years ago this is what all those auction sites are for and why a first generation iPhone sold for 190 373 dollars hold a high-paying job for an extremely long period of time climbing the corporate ladder can be an extremely effective way to go if the industry you're in allows for a six-figure salary all you need to do is stick it out for over 10 years to earn your first million a lot of software development jobs higher end legal work or medicine pay over 100 Grand a year now you might be thinking that these are fairly complicated jobs but due to inflation in the market conditions salaries are growing across the board UPS was in the news recently when it came out that their top UPS delivery drivers earn up to 172 thousand dollars a year be an early member in a startup that takes off you get rich when you own something that goes up in value over time if you're skilled enough to build something you can do it yourself or join a team that builds a company depending on your role and the different value you add you'll deserve a different percent of the company many people don't realize the value of shares because they're pretty much useless in the early days until they're not if the company blows up those shares will be worth a fortune some of you know graffiti artist David Cho but few know how he got rich well one day he was asked to do a mural for a company in the valley the gig was worth around twenty thousand dollars and since the company wanted to minimize monthly expenses well they offered to pay David in stock and he accepted well that company my friend that company was Facebook and when Facebook went public chose stock in the company was worth 200 million dollars be a professional athlete if you have a competitive Advantage physically if you've got the discipline required to go the Long Haul and are lucky enough to not have a career-ending injury well you can acquire both Fame and Fortune before the age of 30. you earn money on your salary bonuses on performance product endorsements and other commercial work where you sell your likeness or people will grant you partnership deals just because of the credibility that you bring before going to the Middle East Cristiano Ronaldo only earned around 50 million from soccer but over 100 million from commercials and endorsements the goat Michael Jordan he didn't earn his fortune through his salary playing basketball no the inflection point happened when his mother negotiated the Nike shoes deal on his behalf and demanded he be paid a percentage of the sale of the shoes bearing his name this quote still gives us chills a shoe is just a shoe until my son steps into it seventy percent of athletes end up going broke or through a financial crisis because they spend so much time focusing on the sport they fail to ever educate themselves financially the richest professional athletes are able to transform from athlete into business owner be a one-hit wonder you just need one big success and your life could change whatever it is you do one can change everything for you remember the Gangnam Style hit Psy will we estimate that PSY made around 25 million dollars from that one hit alone ballpark of around 10 million dollars on YouTube alone vanilla ices Ice Ice Baby that's also another one hit wonder moment it doesn't have to be singing either one hit wonders can happen in all creative Fields write a good book one good invention one idea that's the thing about money you only really need to get it right once be a high in demand Entertainer the superior form of the one hit wonder is the Long Haul Entertainer year after year of hard work and your portfolio of work goes up and so does your fan base Taylor Swift is a great example of this her Eros tour is the biggest tour in human history so far before this the highest earning tour was that of Elton John who brought in 800 million dollars in total are you ready to have your feelings hurt here Beyonce's tour is happening at the same time as Taylor's Beyonce is estimated to bring in around 500 million dollars definitely putting her in the top 10 of all time but Taylor Swift oh boy she's estimated to bring in are you ready for it 1.4 billion dollars not only does she take number one but that's three times as much as Beyonce and 50 over Elton in second place if we just look at the scoreboard alone Taylor Swift is and we can't even believe we're saying this she's the goat undeniably talent management let's just say you don't have the talent to write your own songs perform them produce them market and anything else that goes into the entertainment business but you do have a brain for business well a talent manager makes between 10 to 20 percent of an artist's earnings about 15 is the standard deal they find the artist and get them the opportunities to become big Scooter Braun is one of the most successful Talent managers right now he's the one who found Justin Bieber and helped him to get International stardom other artists managed by scooter are Demi Lovato the Black Eyed Peas the Call Me Maybe girl David Guetta Usher Hilary Duff quavo Kelly Rowland the list goes on if you've ever watched Entourage think of these people as the Ari Golds of the industry by the way the guy the character Ari Gold is based on is named Ari Emmanuel his most recent play was acquiring the UFC from Dana White for four billion patent and invention if you're able to figure out a better way to solve a problem that nobody else has solved so far well you should patent that idea in order to protect it companies will come to you and license the idea from you if they want to deploy Your solution or you could go to the market yourself and make it a successful company the Snuggie is one of our favorite examples it's just a blanket but with sleeves and holes to put your hands through it's sold for 200 million dollars shark dad's Scrub Daddy crossed one billion dollars in lifetime sales and that's just on the idea front did you know that Nokia yeah the old phone company Nokia they've got more than 20 000 patents including 5 500 patents that are related to 5G technology apple is paying Nokia a licensing deal to be able to use that Tech other examples include the invention of the stapler Post-it notes where the inventor invents the idea and gets paid two to three percent of whatever money that product is bringing in when produced by a different company trademark a name phrase logo or copyright a piece of work there's a reason why you can't just use the Nike logo on your products the visual logo is owned by the Nike company Michael Buffer owns the phrase let's get ready to rumble so every time you hear that at the beginning of a boxing match or a fight you know that Michael is getting his fifty thousand dollar check it it's same with many other creative works the alux logo is trademarked meaning nobody else can use our logo last year we trademarked the word alox in association with media and digital products right now we're in the process of trademarking the phrase future billionaire from our catchphrase the place where future billionaires come to get inspired these are unique pieces of intellectual property that we're looking to protect Samsung was granted over 6 000 patents and trademarks last year alone all of this IP adds to the company value write a best-selling book or a bunch of medium selling books if you've got a talent for writing and short stories the barrier to entry has been completely eliminated the Martian by Andy Weir was fully self-published the Twilight series was a passion project that eventually got picked up by the industry Robert Kiyosaki made his fortune selling books and he still earns over a million a year from Rich Dad Poor Dad the thing is you don't have to be ultra successful to make a bank through your writing you just have to have a niche fan base and pump up the numbers Mark Dawson earns around 450 000 a year from his self-published portfolio on Amazon he's written 43 books so far and they're all selling well enough if you write a book per year you'll end up with 20 books in 20 years your entire family will be receiving checks from these books even after you're gone be an influencer on social media if you've got a loyal following that trusts you to be their guide you can leverage that to build wealth the word influencer no longer carries any power since now we've got large medium and small even micro influencers when Everyone's an influencer nobody is the value lies in just how much sway you have over your community the easiest way to measure this is to ask your community to buy a one dollar product in theory everyone can afford it but you'll be shocked at how few you're able to convert this is why people like Kiara faragani or Mr Beast are on a different tier when they launch something people show up with their wallets open content creator YouTube Tick Tock Twitter Rumble medium Etc we are entering a new age of media where platforms will be forced to pay out creators you've been on Facebook and Instagram for years now and they've never paid you a cent despite generating tens of thousands of dollars for them YouTube pays its creators 60 of what they make Twitter now X under Elon Musk switched to a similar model where creators are getting paid to post on Twitter when people turned on monetization they realized just how much money there is to be made there X shows ads and replies of a thread and you get paid based on them Rumble is a platform looking to compete with YouTube that has a similar pay framework but are more lenient in the type of content they allow on the platform tiktok is also paying creators but disproportionately low because the content is light and the volume of content consumed is extremely high two and four cents for every one thousand views which adds up to only twenty to forty dollars for a million views to put things in the perspective a million views on YouTube will get you between five thousand and ten thousand dollars sell an online course the goal is to build a business where you can build once and sell a million times the a lot of examples in this video an online course is a great example to do it platforms like thinkific teachable kajabi already make it super easy to just upload your content and sell it as a course by the way YouTube will soon launch this functionality directly into YouTube where you can buy an online course to the side of the video alox.org is our course platform and since it takes us an entire year to put together a course when people get it they actually get great value out of it this year we're launching reinvent Mastery which helps people to relocate change jobs and change the way people see and treat you it basically is a complete lifestyle upgrade in six months step by step tested Frameworks with an incredible guarantee if you go through the course and the change doesn't happen for you we'll give you your money back the only way we're able to provide this kind of guarantee is because we know it works and soon you will too go to alux.com reinvent and join the waiting list we'll give you an exclusive discount code when we launch if you're already on the list so get your name on there build an online game if you're a decent programmer and have a great idea for a game it can scale up fairly easily although the age of Doodle Jump Angry Birds or Cut the Ropes over there are still games out there that do incredibly well at the Top Candy Crush was bringing in 4.2 million dollars per day merge Mansion is making around 10 million dollars per month Clash of Clans brings in a half a billion dollars per year now a lot goes into making a great game but the new monetization tools like micro transactions or simply filling the game with ads for in-game perks have allowed mobile games to go to a whole new level and we're not even talking about fortnite or Roblox or Minecraft who've become their own universes just to put things into perspective fortnite generates over 6 billion dollars per year in Revenue while Kentucky Fried Chicken KFC they earn 6.8 billion yeah e-gaming is pretty big Commerce sell actual products any product that you can literally put together yourself you can sell for a profit online physically there are millions of stores and millions of types of businesses that rely on you having a product and selling it for profit taking the money from that sale to create more products and repeating the cycle if we were to go through every single thing you could sell online this list would never end so think of this as your default Commerce business be it online or offline the more value you can add to a product and the more you can differentiate it the better people sell from normal products to waifu pillows memorabilia to bath water in jars the marketplace is so wide and kind of weird and it's growing so there's a market for literally anything sell advertising for your blog the concept of a Blog has evolved over time it used to be an online place for your own articles then it became a vlog a video log Now everywhere you put together content is basically your blog if you own the platform and have regular visitors businesses will want to place their ads next to your content the most successful blogs have evolved to compete with mainstream media platforms Ariana Huffington started the Huffington Post Mashable was a Blog too Perez Hilton started off as a tabloid all you need is traffic Google exploded as a business when they launched Google AdSense a way for people to monetize their blogs and it's all at the core of how YouTube works today sell Consulting Services we know people who are really good at what they do they're experts in their field so they sell their expertise these are not full-time employees but they jump in now and then or for fixed periods of time where their expertise is valuable actually some of the biggest businesses in the world are Consulting businesses PWC McKenzie Accenture they all make their money as consultants and these are multi-billion dollar businesses actually most employees can immediately increase their income If instead of being an employee they incorporate and contract their former workplace as a customer for their Consulting Services start an agency business if we were to start today from absolute zero we would probably go for an agency business ourselves we've got enough expertise to be able to add a lot of value to any digital business you basically create a package of services which you sell to other businesses as an ongoing relationship for example five thousand dollars a month for Content creation we could take care of all of your content for five thousand dollars every month we will measure the success of our relationship if our content generates you more than five thousand dollars in profit sign one to two clients per month and in a year or so you end up with one hundred thousand dollars per month in business at the end of last year we acquired zary.com a digital marketing agency that we're transforming into a top marketing agency in order to expand our own portfolio of companies the goal here is to build you an actual business we charge between ten thousand to fifty thousand dollars for a website that we know will make you money and then leverage our marketing division to drive you customers to the website that we built the average is our client season 8X return when working with us which justifies our pricing start a podcast starting a podcast became more mainstream once people saw Joe Rogan take over the world with JRE The Joe Rogan Experience Podcast brings in around 40 million dollars per year in advertising alone we'll talk about his licensing deal in a second this is why everyone you know has started a podcast there are around 2 million podcasts online this might feel overwhelming but if you zoom out you'll also see that ninety percent of podcasts don't get past episode three that's 1.8 million who quit of the 200 000 left ninety percent of podcasters will quit after 20 episodes that's another 180 000 gone to be in the top one percent of podcasts in the world you only need to publish 21 episodes of your podcast your competition is not the 2 million podcasts it's the 20 000 podcasters who didn't quit so even today the market for podcasts isn't that competitive but since everyone has a limited amount of hours in a day where they could actually spend listening to podcasts well you end up with a situation where the few best absorb all of that time to themselves the more Niche you go the higher the likelihood you'll develop an audience that Joe Rogan Lex Friedman Andrew Schultz or call her daddy isn't talking to sell a one-on-one coaching this is the fitness trainer model applied to anything and everything if someone wants dedicated coaching in order to achieve their goal you can be that person for them therapists psychiatrists personal stylists celebrity trainers Voice coaches Etc there are a couple of people who are so valuable to you that you're willing to pay them a premium in the business World these are called executive coaches people who have extensive experience and can help you to evolve every big CEO has worked with several executive coaches in their career and each of them helping in the evolution of the business at that stage they're in for example Matt mockery coach Naval ravacant the CEO of openai the CEO of coinbase the CEO of Bolt and a bunch of other Heavy Hitters it used to be that Matt charged 12 500 for one Zoom call per month until he eventually grew so popular that even at that rate he no longer take clients executive coaches cost between twenty thousand to two hundred and fifty thousand dollars per year depending on what kind of impact they have and the stakes the game is played at most entrepreneurs can't afford them and they're the ones who need them most and that's why we created the alux app build a subscription app or membership site because years to go through most business models related to our business until we figured out that subscription models are s tier as long as people pay they get access to the service Netflix is an absolute Beast which is why we launched the alux app Remember the really expensive executive coaches well we pay them on your behalf have them break down exactly what you need to do so you get the exact same thing they coach their one-on-one clients in our app for only 99 a year if you go to alux.com app and get a subscription you are literally getting over a million dollars worth of value for 99 a year no matter what you do try to get your customers to stick around on a reoccurring basis this is why we were also interested in an agency format that we could switch to a subscription Style license your content once you've got something cool other companies will want to pay you money to show your work on their platform here's an example A couple of years ago Emirates Airlines approached us to license our content for their in-flight entertainment system so basically they'd be paying us to Showcase alok's content on board of their airplanes Joe Rogan's famous 100 million dollar deal with Spotify wasn't a buyout it was a Content licensing deal meaning Spotify gets exclusive access to Joe's content for five years Clips not included those still go up on YouTube but in exchange Spotify pays Joe 100 million dollars once those five years expire Joe could put all of his content back on YouTube or renegotiate an extension before you think it's stupid to pay someone this much the announcement added over a billion dollars in value to spotify's market cap because more people than wanted to own shares in the company license your likeness or other attributes you see it all the time Brands want to align themselves with celebrities in order to maintain relevance and boost up sales sometimes it works because of your performance in a field think Federer with the Wilson tennis racket it makes sense to be sponsored by Wilson when you win with their product or how J-Lo is known for her legs because of the one million dollar leg insurance and because of Gillette sometimes Partnerships are a great fit due to someone's reputation think of someone with a pristine reputation partnering with a private Clinic the examples can go on but you do have to be careful of who you associate with both as an individual and as a brand Tom Brady and his then supermodel wife Gisele Bundchen endorsed crypto exchange FTX publicly and it turned out to be a massive fraud and mismanagement of investor funds other times it plays out poorly for the brand David dobrik used to be one of the biggest names on this platform bringing in five million dollars a year in sponsorship deals until his scandal hit and his name became toxic so Brands dropped him affiliate marketing affiliate marketing is when the commercial relationship between Creator and brand are intertwined let's give you an example Shopify makes it easy to create an online store we've got a community of entrepreneurs in our audience and if you go to alux.com sell and you join Shopify through our link we get a commission for every sale that we generate for them and it's the same with audible since we've got an affiliate partnership with them if you go to alux.com free book and this is the first time you sign up with audible you'll get a free audiobook we'll get a commission and audible gets a new customer it's a win-win-win kind of deal but we try to choose very carefully when we pick long-term affiliate Partners Amazon Commission Junction and ClickBank are three of the most popular affiliate platforms start a newsletter business newsletters are the podcasts of the writing World sub stack convert kit beehive MailChimp and a bunch of others are great enough to keep a newsletter going sub stack is the one that we feel we've seen most of our favorite newsletters on they make it easy for users to subscribe to a newsletter and newsletters are the modern evolution of the blog as long as the content of the emails are valuable people will stick around we're fans of the my first million podcast and we were happy when we heard that Sean Perry sold his newsletter the milk Road for several million dollars just 10 months after launch at the moment of sale they had 250 000 paid subscribers and were earning around 1 million dollars per year for app insights we subscribe to Lenny's newsletter as well he reportedly earns around 1.5 million a year a friend of the channel Anthony pompliano pomp also has a good one and if we didn't have the Billion Dollar Plus goals we have for the app well we would definitely monetize YouTube through a paid newsletter we still want to launch one that's super valuable but since it's a thank you to you guys we really want it to be absolutely free it'll be available at alux.com letters day trade or invest in stocks Warren Buffett famously said that if he was young again and had under a 10 million dollar portfolio he would average between 50 and 100 return year over year simply by investing in stocks investing in stocks allows you to share the profits the company makes investing regularly will help you to build wealth pick the companies you use the most and buy shares in them etoro TD Ameritrade interactive brokers capital.com plus 500 or whatever is available in your region they've got guides that can easily help you get started even retail platforms like revolut acorns Gemini they allow users to buy and sell stocks fairly easily it's no longer a thing specialized investors and math geniuses only can do but do know that markets are volatile maybe Nike or Starbucks had a good year this year and next year won't be as good investing is risky invest in ETFs if picking up stocks yourself is risky the way you minimize that risk is by investing in an entire category as a whole investing in green energy in transport in the banking sector or in the best performing 500 companies in the US at the same time these baskets of companies are called ETFs the most popular is the S P 500 which bundles basically the American economy into one stock historically the S P 500 has returned around 10 percent per year since the beginning now you're not going to get rich overnight because you need compounding to work in your favor but paying attention to this could literally change your life if you have a newborn child when they're born invest seven thousand dollars in the S P 500 and allow it to compound that seven Grand is going to be worth over a million dollars by the time your child is 65 which should be enough for them to retire comfortably don't rush to get rich and allow compounding to work in your favor invest in art if you're looking for something to grow a little bit faster than the S P 500 well you could do what the rich do and invest in Blue Chip art the rich by Art because it outperforms most traditional Investments the line in green is Art and the red one is the S P 500 over the last 23 years Blue Chip art is crushing it for investors historically this was an investment vehicle with a big barrier to entry poor and middle class people don't have five to ten million dollars to buy a Picasso wait a couple of years and then resell it for profit but that's no longer the case Masterworks is an art focused investment platform that allows anyone to invest in Blue Chip Arts starting at one thousand dollars they buy high-end paintings vetted by experts and divide them into shares you buy some of those shares and when the painting is sold the profits are distributed amongst shareholders they've got almost one billion dollars in assets under management almost 1 million people invest with Masterworks and all of their recent sales return to profit for investors and you know normally there's a waiting list to join such a service but since you're an a Luxor and Masterworks was kind enough to sponsor this video If you go to masterworks.art alux you can skip the waiting list and someone from their team will get in touch with you to help you get started that's masterworks.art alux invest in real estate directly or in REITs the highest number of millionaires in the world were made because of real estate it's also the least complex way of getting rich you buy property the property rents out and also appreciates some value over time you only need two hundred thousand dollars for a down payment to buy yourself a one million dollar property you borrow the rest rent the property out and the Tenant pays for your mortgage in a few years you qualify as Rich if you know what you're doing you can buy the property with a small down payment you fix it up rent it out get it reappraised for a higher value because you did all kinds of improvements and then refinance it pocketing the difference if this all sounds complicated to you and you don't want to bother with finding the right property or dealing with banks and tenants well know that there are funds called REITs Real Estate Investment Trust where people pool money together and it all gets invested on your behalf you just get your checks in the mail actually you know we feel like that expression doesn't really hold anything anymore who gets checks in the mail and nowadays it's a notification on your phone or at most an email right rip to checks in the mail develop real estate when it comes to real estate the way you generate most value in the shortest period of time is through development you buy the land build something on it and sell it for profit the risk lies in the management of funds on how long it takes to complete the project and finding the right buyer if all goes to plan you 2x your money with every development Thirty to fifty percent annual return is average and it takes two to three years to go from where you go in to where you get out here's a graph of the average cost distribution of a real estate development play vacation rentals the current most profitable real estate investment in terms of rent is in short-term holiday rentals listing great properties on Airbnb and booking and renting them out to tourists returns 4 to 10x what you would get for the same property through long-term renting outside of everything digital this has been our go-to investment we find properties near the city center we have an interior designer refurbish everything to make them high in properties and then we have our property manager take care of the day-to-day rentals we've made it a habit of adding properties every year here's how the math plays out these holiday rentals act as a baseline for our lifestyle returning between 10 to 20 percent per year in rental income and also a great store of value because of their location they appreciate about six percent on average every year there are many people who sublet the property for other people just to monetize it themselves but since this isn't our main business we prefer to straight up buy the property up front 20 decent Airbnb Apartments will get you at least one million dollars a year almost anywhere really really nice properties in high demand areas can bring that on their own think multi-million dollar luxury villas that rent out for three to four thousand dollars midweek and five to ten thousand per weekend at that point you no longer think of the place as just a rental but more as an experience the highest level of what technically is a short-term rental are theme parks Technically when you go to Disney World you rent out the experience for the day and then you go back home flip things for profit both online and off this is another one of those Staples of money making and your life changes once you understand that every business is a Buy Low sell High business the only difference is in what you're trading the most basic one is straight up Commerce buy something where they have a lot of it so you can get it cheaply then take it to another place where it isn't as readily available and then sell it for a profit if you've been a fan for a lux for a while you know that location changes value a bottle of water is more valuable in the desert demanding a higher price the modern equivalent of flipping products for profit is buying things directly from the factory usually in China or India getting the product repackaging it to look nicer and then selling them on the local marketplaces in Europe or North America the more evolved version of that is called Drop Shipping where you just generate the orders and the factory fulfills them on your behalf taking care of packaging shipping and everything else anywhere in the world you can find a product that you can afford to sell it for a profit if you're willing to put the time in you could flip sneakers you could buy a car wash it take some better photos and then sell it for profit washing it and the better photos are where you actually are adding value repeat that until you can generate more expensive things like buying a property cleaning it up and then reselling that for a profit even the agency businesses we mentioned earlier are technically Buy Low sell High businesses you buy services at a lower price than you charge a client and you pocket the difference start a product brand brands are valuable because they add value to the thing you associate with them a plain white T-shirt is worth one dollar the moment you put a Mickey Mouse logo on it it's worth ten dollars Supreme is an example of solely brand play a couple years ago the company was sold at a two billion dollar valuation to the folks that own Vans and North Face the biggest businesses in the world are product companies with an established brand think Apple Coca-Cola BMW Mercedes Starbucks the value of the brand is derived from the way they build and present their products both Toyota and Rolls-Royce make cars that have four wheels and drive you from point A to point B but they don't do it in the same way do they vending machine coffee is different from the stuff at Starbucks even though they're technically both just water and ground coffee beans with the exception of medicine even if the product is identical people still pick the Branded version over the generic the sale of cereal and supermarkets is proof of this building a human-based service business service businesses are a one service one payment kind of situation where time and skills get traded for money usually technology know-how and human capital are leveraged to grow the business think cutting hair aesthetic work having someone paint your house or a hired contractor if on the lower end you paint someone's Nails on the higher end you reconstruct someone's face after an accident the more technology the more knowledge you have and the more people you can leverage the higher the service-based business can be the entire healthcare industry fits here soda's legal work accounting and even restaurants we'll talk about the software businesses next software as a service Google is a software as a service business Amazon makes most of its money from its server business AWS Microsoft Adobe Oracle Salesforce all of them are software-based companies where people pay an ongoing subscription to keep using them remember when we said the subscription game was s tier well software as a service is saas and it's become a Hot Topic among tech people where you can't go to a tech event without almost everyone talking about launching a SAS business there are big tiers to software businesses Enterprise meaning they sell software to other large companies and Retail sauce where they sell software to individuals or small businesses raise money for an idea reputation and Trust can be worth a lot of money let's say you've got an entrepreneur who successfully has sold two businesses in the refreshments industry and now they're starting a third one their track record will get investors to give them even more millions of dollars even if they're in the idea stage for a percentage of the company we've seen this play out over and over again in Silicon Valley some companies are even losing money year over year and still get money from investors because of the long-term potential Uber is a great example of that Uber lost nine billion dollars last year and is still going Uber's been losing money every year since Inception their operating costs were just too high but investors in the company are betting on the performance of the company Long Term slowly Rising fares as you've probably noticed and in Q2 2023 they had their first profitable quarter bringing in 323 million dollars Uber burned through 31.5 billion dollars to finally get to profitability so now they can work on recouping those losses it'll be a while until they get back to zero and be a profitable investment for those backers but it seems like things are on the right track Get Lucky with crypto you've heard the stories genius kid invents new kind of money people bet on it online some people make millions and others lose Millions very little value added crypto as a whole is more volatile than the stock market which means Traders can make even more aggressive plays in order to build up their portfolio value the technology has a lot of potential to help a lot of people but it feels like in the rush to get rich it's all been sabotaged by greed everyone should do what they want with their hard-earned money as long as they don't hurt anybody else for the past four years we've been on board with a crypto fund backing early stage products 2023 is the year we walked away from it personally we're still Believers in blockchain technology but it's too time consuming for us to be actively managing the Investment Portfolio we've sold all of our crypto Holdings and bought Bitcoin we put it in cold storage and locked it in a safe Bitcoin acts like the S P 500 of the crypto industry 10 to 15 years from now we'll check back and see what has come of the investment it's either going to 10 to 20x from here or it'll go to zero we've already made our piece with both situations and how we sleep much better at night because of it if this is something you'd want to do go to alux.com bitcoin because it teaches you exactly what Bitcoin is how to buy it and how to store it for the long run in the shortest time possible use the promo code aloxer for 25 off ride the next technological Trend AI since we've been in business it feels like every five years there's a new tech Trend networks then blogs then social media then crypto now ai the people who jump on early make a lot of money and get to position themselves at the Forefront of the new wave there are thousands of AI companies that are basically chat GPT rappers meaning they tap into chat GPT and channel it for a specific Niche chat GPT for lawyers chat GPT trained on financial models for investors Etc you can basically take a language model feed it a large data sample and have it spew answers based on that sample we've been around long enough to know that trying to predict what the next one will be is a futile Endeavor remember when everyone thought the metaverse was going to be a thing Zuck remembers although the Apple Vision Pro might hint at the future of work right now it feels like longevity is a big one Health hacking sensors infusing AI into everything electrical think Internet of Things 2.0 quantum computers might actually be a thing soon if the LK 99 thing turns out to be legit but it doesn't really look like it right now they really had our hopes up by the way none of our content is written with chat GPT at alux we pride ourselves on only speaking from experience we've literally lived through a bunch of these businesses and it's the reason why we can so clearly tell you what each one is about and what it feels like to go through them over 4 million people subscribe to us because of our perspective on things thank you if you're one of them we're also you know we're kind of funny sometimes peer-to-peer Lending peer-to-peer lending is basically loan sharking but legal you give someone money and they lock themselves into a contract to pay it back with interest there are hundreds of peer-to-peer lending platforms online for some reason all of them felt too shady to us despite some of them being 100 legit and have been around for a while Lending Club Kiva pureform upstart Prosper are just some of the platforms that you can use some of these call themselves microfinancing businesses but the math is simple you lend out money and get it back with a five to fifty percent interest depending on the duration of the loan and the amount of risk Believe It or Not peer-to-peer lending is actually quite common among the rich who finance each other very often the difference is they do it with much larger amounts commissioned based skills we love all commission-based work because it's dependent on outcome here's an example let's say you are the most skilled diver in the world someone found a treasure on the bottom of the ocean and needs your skills to get it out you're the right person for the job if the dive is successful they're willing to split the fortune with you you find these in every industry the higher the treasure the higher the commission you earn for your effort Russell Brunson is the founder of Click funnels an online business that brings in over 150 million dollars per year Russell is the OG funnel Builder and for a long time you could commission him to build you a funnel for one million dollars and businesses who needed it would do it because the reward was higher than the cost industrial agriculture or livestock there is a lot of money in cattle and agriculture a sheep gives wool plus milk which you can sell for profit and also reproduces cattle is one of the few asset categories that not only can be exploited for profit but also increases in numbers you can start off with a few and over a couple of years you've got a lot and the same is true for most livestock by the way the fastest way for the poorest people in the world to get out of poverty is to raise chickens with agriculture it's similar seeds have become more efficient with higher crop density and shorter Bloom periods rotation crops are also safer for the environment and with the way commodity prices are going you can find your yield highly profitable the average a small farm can support a family which is why for the longest time most people were farmers today we live in a more industrialized and technology-first world and you can see that with farming as well Bill Gates is the biggest private owner of Farmland in the U.S you'll never go poor if you own something people will consistently need specialized agriculture or mineral exploitation there are some crops that only grow under very specific conditions that are limited to a certain geography so other countries are forced to import them West Africa more specifically the Ivory Coast Nigeria Cameroon and Ghana are all responsible for 70 percent of all the cocoa in the world for a long time the Middle East was the only region in the world where natural pearls could be farmed until Japan figured out how to mass produce them the world is building itself up raw materials and minerals are needed more than ever in many countries you can buy the mineral and exploitation rights for natural resources getting the value out of the earth is highly profitable customization repair restoration garbage and recycling value can be added through know-how and there are big opportunities for those who can do it well home repair technological repair furniture restoration re-loving anything waste management is one of the biggest industries in the world that's only growing with our population numbers waste management is a 1.6 trillion dollar a year industry and expected to double in the next 20 years to put things into perspective recycling right now is barely an 80 billion dollar industry and also when we say Waste Management we mean actually Waste Management not the wink wink nudge nudge Sopranos kind of Waste Management import export business since some things can only be found outside of a country there's a market for those who are able to bring those desired products within in every country you will find a handful of people who made billions in the import export businesses Koch Industries in the U.S brings in over 100 billion dollars per year vitol is a swiss-based company that operates in over 40 countries India's Gautam adani made his fortune in the import export business and is now worth 55 billion dollars just Google your country plus import export and you'll find out just how potent that industry is franchises if you've got a repeatable system you've got two options you either one open up locations around the world yourself and you own all of them a great example of this is Andrew Chung the founder of Panda Express 2300 stores 47 000 Associates and three billion dollars in sales they own everything or two you franchise the model McDonald's Dunkin Donuts Etc and you collect a portion of the sales while other people manage them according to your system put on your own events festivals have gotten bigger and bigger in the last couple of years small clubs booking an artist over the weekend for a party are the entry level and then you go up based on the number of people who get to attend and buy tickets Tomorrowland Coachella South by Southwest Untold Burning Man the list just seems to get bigger and bigger on average Coachella grosses over 115 million dollars in ticket sales across both weekends and makes tens of millions more in food beverage and Hospitality services private Equity invest in other people's businesses if you've got a little bit of money buying businesses and growing them can be incredibly lucrative if real estate gets you six to ten percent per year buying a boring business can get you 30 40 50 returns per year Cody Sanchez has made a name for herself online by doing just this you can buy them fully and you become both the owner and the operator or you could buy a portion of the business and just help the founder scale up business extraordinaire Alex harmozie gathered a 200 million dollar per year portfolio of businesses and like them there are a bunch of other people you've never heard of you buy a business fix its operations upgrade the way it does business and then you keep the profit or sell it for 20 times what you paid for it to another private Equity Fund that plans on doing the same thing in the digital world you've got platforms like Flippa or acquire.com where you can browse real businesses that others are selling move things and people from one place to another the cargo shipping industry alone is expected to top four trillion dollars in the next seven years moving people around from taxis to planes to ships is similar in numbers there's a lot of money to be made here starting a logistics company doesn't have to be complicated either you start with a truck and then you add a couple of more it's not easy work but it's also not mining or Roofing in July the name might not be as well known in the US but before we had Tech everyone knew who Aristotle Onassis was he was the richest man of the 20th century and he built all of it on a shipping Empire in the 1920s at the age of 25 he'd already become a millionaire the man is fully self-made and built his entire fortune on one strategic deal at a time he built a cigarette company introduced smoking to women that made it his mission to be the only person to ship goods around the world at the peak of the Great Depression he buys his first ship for for half of what they're worth the business started booming when he negotiated directly with the kings of Arabia to be the only one allowed to transport oil out of the region the U.S government had to threaten military war to stop Onassis from becoming the largest figure in human history from Athens he settled in Buenos Aires taking over the region he then eventually moved to New York when the Suez Canal was blocked and the demand for goods and oils skyrocketed Onassis was the only person who had a fleet large enough to keep the world going Reports say that at the time he was making two million dollars per tanker per trip this is at the time when the word billionaire wasn't even invented yet be a Matchmaker there is money to be made in the ability to find matching puzzle pieces that need one another but don't know one another some of the richest people in the world are just incredibly well connected think of these matchmakers like the real estate agent of the business world but less brokery and with more finesse you want to have a champagne business someone else has a chain of nightclubs the Matchmaker makes the deal happen so everyone wins and gets a slice of the pie they even facilitate company sales the world of investment banking was built on this model you want to sell a business I'll find you a buyer to pay even more than what it's worth and I'll get 10 of the deal and for smaller companies it drops down to one or two percent or even a flat rate on multi-billion Dollar Deals got a lot of friends in the investment banking World in Manhattan and we were shocked to learn that a small business is a company valued between 50 and 300 million dollars power broker politicians have you noticed how politicians are some of the richest people in the world despite earning less yearly than a high-paid UPS driver we wonder how they managed to do it we all know power brokering has its roots and elections someone who has the ability to sway the outcome of a vote but more recently it's become widely used in the business World it relates to people who can make the deal happen at a cost the world is corrupt government contracts aren't always awarded fully transparently and guess what there are people who open doors for others some folks even get into illegal ways and then blackmail others into getting what they want based on privileged information Jeffrey Epstein was one of these power Brokers getting rich and influential individuals to compromise themselves and then slowly taking over their resources Epstein did this with Victoria's Secret owner Leslie wexer it had gotten to a point where Epstein was fully in charge of wexford's finances he could borrow money freely he was in charge of spending and Acquisitions signed his tax returns and even gifted himself mansions and properties in a couple of years the gifts added up to around 100 million dollars all of this power brokering gathered him over half a billion dollars in total and then he pissed off some people with a lot more reach than he had we feel like this story simply went away but all the evidence showed that Jeffrey Epstein didn't kill himself insurer people are willing to pay a premium to mitigate risk if you pay me this amount I'll take the risk for you you're transporting one hundred thousand dollars worth of fragile China from one country to another I'll take that risk for you for three thousand dollars if they break I'll pay you one hundred thousand dollars if they don't I keep the three thousand this is how insurance companies have become some of the richest in the world the global insurance industry is estimated to be around six trillion dollars and it spans everything you can think of whenever there's a risk an insurance company is willing to throw their hat in the ring you all know about life insurance or shipping insurance but if you're a farmer there's crop insurance where if the weather ruins your crops you still get paid people ensure anything they want you can ensure your wedding if an accident happens and ruins the venue you are not on the hook kidnap insurance is another one where if you travel to a dangerous place you want to make sure there are funds available to get you back safely football players ensure their legs artists ensure their special talent like if their voice were to be affected by an accident and they couldn't perform in the high-end business world it's actually common for the company to take out an insurance claim on key business individuals apple is ensuring Tim Cook because his potential death would affect the stock price the insurance world has always been fascinating to us because on a macro scale they're very much like a casino where the odds are stacked in The house's favor insurance is just math and it's one of the safest businesses to build but it does come with a high barrier of Entry and last but not least invest other people's money if you've ever heard the term private banking or hedge funds this is it rich people give you their money and you invested on their behalf and you keep a cut the average hedge fund operates on a 2 and 20 rule two percent is a standard fee of the amount invested plus 20 of the profit they make for you this formula allows hedge fund managers to grow wealth incredibly fast the biggest hedge fund of this kind is Blackrock chances are you haven't heard of them but they basically own Everything You Touch people don't realize just how big this fund is 9.5 trillion dollars of assets under management they're so big they're able to fund countries Wars sometimes even both sides of a war they're one of the largest investors in the biggest companies in the world they partially own these companies BlackRock has gotten so big that even governments Bend to their will for example after the war ends BlackRock will lend 100 billion dollars with interest to Ukraine in order to rebuild and they're just one of a bunch of these funds that basically hold the wealth of the world most likely your pension is in their hands as well BlackRock has the 9.5 trillion dollars under management Vanguard has 7.6 trillion starting your own hedge fund is quite complicated and you need at least five million dollars raised to get started now hey Alexa we did our best to bundle up multiple Industries and smaller businesses into buckets we think we covered basically everything what did we miss anything leave a comment and let us know and since you are an absolute champ and watch the longest video we have ever made until the very end of course okay of course we've got a Bonus saved for you your hedge fund manager is getting richer way faster than you are this is why the space is so incredibly competitive let's give you a long-term example and you'll learn a valuable lesson about the importance of Thieves at the age of 25 you give your hedge fund manager 1 million dollars to manage and they produce an annual return of eight percent assuming a 1.5 management and 20 performance fee by the time you retire at 65 you'll have 7.64 million but the manager will have 12.4 million even though they didn't put a dime into this Fund in the first place this is what your graph looks like and statistically almost none of the hedge fund managers can beat the market consistently for 40 years if you've got time on your side or money on your side do the boring thing and go with an index for as long as you live remember this rule okay you get rich by taking a lot of risk with a little money you stay Rich by taking very little risk with a lot of money if you're still here with us we want to personally thank you for taking the time today and watching 100 of this video if you're seeing this please write 100 in the comments since this is the longest video we've ever done we're really curious to see just how many of you got to the very end you are awesome my friend [Music]

Channel: Alux.com

Views: 307,126

Keywords: Alux, Alux.com, Alux Youtube, fine living

Id: sU6gThi1nZg

Length: 65min 34sec (3934 seconds)

Published: Sun Aug 27 2023