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Satisfying the Commandment of Time (and getting to the point of a sustainable, life-altering passive income) takes months, sometimes years, of nose-to-the-grindstone effort. We’re talking about ten-hour days six to seven days a week demonstrated by the process-principle.
Your business bull’s-eye is a productocracy and fiduciary entrepreneurship. Much like value is a predecessor to money, a systemized productocracy is a predecessor to passive income. Honor the Commandment of Time;
With a productocracy in your corner, passive income eventually
comes kno...
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focus on legacy value systems (LVS) for the long term. Essentially, an LVS is your personal slave that surrogates for time. Legacy value systems could be grown virtually from anything: a product invention, a game, a franchised restaurant, a smartphone application, a website, a human-resource system, a series of books, or any system that exists as a conceptual entity disconnected from your time.
If the Commandment of Time were a fruit tree, legacy value systems would be its seeds while its fruit would be passive income. When you focus on nurturing the legacy value’s seeds, eventually passive-income fruit sprouts. And you can’t enjoy the fruit
without first caring for and cultivat...
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THE SIX LEGACY VALUE SYSTEMS
Money Systems Via the capital-principle, a money system is the kingpin system, and it’s our UNSCRIPTED goal. Legacy strength and passivity are the strongest, although traditionally speaking, it isn’t a business. Essentially, a money system is a capital rental business—regular
interest, dividends, notes, option sales, and partnership income.
Digital Product Systems The most popular systems for tapping into legacy value are digital product systems. Digital product systems fall into the category of content or information dissemination. Typically, they are the easiest to create and, henceforth, the most crowded of spaces. Some examples: eBooks, PDF reports, white papers YouTube videos, blogs, podcasts Website templates, skins, scripts
Software/Internet Systems The next popular legacy systems are software/internet systems designed to solve a problem, make something easier, or even provide entertainment. Software systems provide the most legacy bang as, once coded, management consists of upgrade and support. The software-system umbrella contains all the following:
Software as a service system (SAAS: learning academies, analytics, social-media management) Internet websites and applications (social media, marketplaces) Mobile applications Enterprise software (software designed for a purpose, e.g., a dental patient management tool) Video games (computer, smartphone, social-media gaming)
Product Systems A product system is any physical merchandise sold through a distribution channel. Because products are tangible and survive with minimal support, they are the third-most effective form of business legacy. In a product system, the product and its distribution represent the central executional challenge. Some examples of legacy product systems: Food products (Grandma’s BBQ chicken soup recipe, gluten-free crackers, cookies)
Clothing or jewelry Cosmetics (makeup, skin care, chemical-free deodorant/toothpaste) Books (this one), board games, toys Inventions, gadgets, art, other creative endeavors Rental Systems A rental system is a form of a product system where the product is not bought but rented. The legacy occurs because both the product and its use through duration create income. Notably, the expiration of time becomes your ally. Some examples: Rental real estate (residential, commercial, Airbnb property) Rental services (cars, party tents, heavy equipment, bounce houses) Parking garages
Licensing (rental of intellectual or b...
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Human-Resource Systems A human-resource system is a product (or service) system that requires people, or
employees, for operation.
Human-resource systems usually subordinate another system.
Since human-resources systems entail multiple tiers of execution beyond just the product, they are the most difficult to execute. Some examples are: Restaurants (either chains or franchises) Service businesses (consulting, accounting, copywriting, web development, SEO) Retail brick-and-mortar storefronts (fashion boutique, bookstore, hardware store)
Just to give you an idea how these systems work in an UNSCRIPTED life, here is a complete list of the legacy systems currently working for me: Digital Product Systems: eBooks, MP3 audiobooks (product sales) Software Systems: forum (advertising/sponsor revenue, monthly membership revenue) Product Systems: physical books, audiobooks (product sales) Rental Systems: foreign-rights licenses (royalties on international translations) Rental Systems: rental real estate (monthly rent) Money Systems: interest, dividends (monthly/quarterly payments)
LEGACY STRUCTURES: HOW TO SELL WITHOUT SELLING Another component of legacy value creation is legacy structures. Legacy structures are other perpetual systems that support, promote, or market your LVS, also 24/7 and separate from your time.
Remember, before you can do what you love, you have to do what you hate.
Legacy’s price is, ironically, your time. If
you can’t say NO to what you want today—an easy unlearned ride—you won’t be saying YES to what you want tomorrow.
The fundamental truth underscoring this entire book is we eventually want to be paid BOTH time and money. “Eventually” is the operative word.
Your objective in creating legacy value through a business system is an immediate payment of MONEY, but an eventual payment of FREE TIME.
An UNSCRIPTED lifestyle should be challenged regularly. Whenever life gets routine or mundane, it potentially signals it’s time for a new pursuit.
SCALE: EXPLODING INCOME A productocracy’s fifth and final CENTS Commandment within the Fastlane structure is the Commandment of Scale. Scale instructs that legacy value systems must be replicated through mass or magnitude while making a profitable impact. The four definitive components are: Legacy value system Replication Mass or magnitude Profitable impact
First, your offering must eventually evolve into a legacy system in accordance
with the four prior com...
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Second, your LVS must be replicable, or easily copied into multiple units, locations or chains. Optimally, this replication should extend among hundred...
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or magnitude. Most people think scale automatically equates to mass-market millions or operating in multibillion market size. However, scale can also be graced through magnitude, or the gravity of your
impact.
The fourth element in the definition is a profitable impact. The UNSCRIPTED business is about profits, not ten years from now but within your first year.
Your goal is UNSCRIPTED, which demands profitability now, not later.
As producers, we are in the business of serving consumers—not few, but many. However, before impacting the masses, we must first impact one—and do so profitably. If you can impact one profitably and your legacy system is replicable, congratulations, you’ve laid a scaling track.
The act of profitably impacting many is where your income (and life) makes quantum leaps. Optimally, your business solution should impact an industry large enough to impact your life.
I’ve been praising a law called The Law of Effection. It states: The more lives you impact in either scale or magnitude, the more money you will make. In other words, impact millions to make millions. If there ever was a “secret” to wealth, both monetarily and spiritually, “impact millions” are the only two words needed.
The more you legitimately help in the value exchange, directly or indirectly, the more fulfilled your soul and bank account become.
Remember, our scale definition begins with profitably impacting one, not hundreds or thousands. Every established productocracy started with ONE SINGLE CUSTOMER!
Your scaling long-game is helping as many people as possible. However, the short-game is like the Time Commandment: Forget about it. Impact one through a productocracy. Scale will work its way through by design.
There are three basic scale strategies, each with their own internal challenges. They are: A customer strategy A chain/franchise strategy A channel strategy
#1) The Customer Strategy The most preferred scale method is a simple customer strategy. A customer strategy sells directly to your customer and in volume: foot traffic for retail stores, eyeballs for websites, users for software, or players for mobile gaming. A customer strategy is only limited by the market size and the available scaling economy. Your Product -------> Your Customer
#2) A Unit Strategy
There is tremendous opportunity in local hardlines, brick-and-mortar businesses where many people (especially young people) don’t consider because they don’t dwell in a digital ecosystem.
multiple markets through replication, chains, network marketing, or franchising. It takes a singles playing field and unitizes it so homers can be
A unit strategy could be applied to products (network marketing/brands/licensing), real estate (replication), retail stores (chains), and restaurants (chains/franchising).
Your Unit -------> Your Product ----- > Your Customer
An example of a unit strategy in an UNSCRIPTED business comes from an idea I posted in the idea depository. I suggested a heavy-duty crate rental company. I uncovered the idea (a rental system) during one of my moves after I borrowed a stack of boxes from my sister. The boxes made my move so much simpler, and the landfill was saved from enduring another hundred cardboard boxes. Afterward, I thought, “OMG, what a great idea,” and I posted specific details about its potential.
