Ladders of Wealth Creation

A framework for understanding different levels of wealth creation, from basic income to advanced business models.

Wealth Creation Ladders (From Lowest to Highest)

1. Selling Time for Money

   • Basic employment/jobs
   • Direct correlation between hours worked and money earned

2. Service Business

   • Running an agency or professional service
   • Charging clients hourly rates
   • Examples: Lawyers, designers, consultants

3. Productized Services

   • Key characteristics:
     • Purchase made without direct conversation
     • Prepackaged offerings
     • Time and money are disconnected
   • Example: $1,000 fixed-price website copywriting package

4. Products (Digital/Physical)

   • Selling scalable items
   • Complete separation from time investment

5. SaaS (Software as a Service)

   • Recurring revenue model
   • Higher complexity than simple products

6. Marketplaces and Social Networks

   • Highest potential but most complex
   • Requires most skills to execute successfully

Key Insights

• Business success requires mastering multiple small skills

  • Payment collection
  • Marketing
  • Writing headlines
  • Email list building
  • Various technical skills

• Growth Approaches:

  • Strip Mall Approach
    • Building multiple small revenue streams
    • Expanding horizontally with different products
  • Skyscraper Approach
    • Focusing on one thing
    • Building vertically and going deeper
    • Continuously reinvesting in core business

• Learning Process

  • Start with simpler models before complex ones
  • Each level builds necessary skills for the next
  • Failure is part of skill acquisition
  • Can't skip steps - must learn fundamentals first