Tai Lopez has almost 1 billion views on YouTube, and individual videos that have 100 million views. During this episode of Freedom Fast Lane, Ryan Daniel Moran discovers Tai’s long-term plan behind the audience building and what he is doing differently. Ryan and Tai discuss the different types of brands that can be built, the four areas you need to line up before you start a business, why Tai does what he does, and the strategies he used to build his massive audience and produce a host of viral videos.
Persona Vs. Traditional Brands
Whether you want to or not, every person has a brand. A persona brand is you as a person; whereas, the traditional brand is what you are selling. You have to make a decision as to which way you will go. The ultimate is to blend the two in to a company such as the personal brand of Steve Jobs and the product brand of Apple.
The VRIN Score
Tai predicts the future will be persona product brands. The process is an archaic business formula that has been revived called VRIN. This can be extrapolated into any area you want to conquer, when it comes to marketing and branding. Each item is scored on a scale of 1-10.
V – Value
This is the value proposition. You need to sell to the willing and figure out what people already want. So many entrepreneurs are inventing problems, but you actually need to solve existing problems.
If you don’t have a different value proposition, you will lose to established businesses, as they have momentum. You need to have a mental leverage point (strong value proposition) that allows you to compete.
R – Rarity
How rare is it? (Not just the perception.)
I – Inimitable
How easily can this be copied?
N – Non-Substitutable
What exists that people can use instead?
If you get four 10s, then you will be rich and will have an 8-figure business the first year. If you score a three, then you will struggle to make 6 figures.
The Parking Lot Test
Say your idea in a crowded area, then drop the mic and walk out. If no one follows you out and asks if it is for sale, then you have no value.
The 50/50 Life
A lot of people live too much for themselves, and some live too much for others. Tai lives his live 50% for himself and 50% for something bigger than him. This is a lens to somewhat make decisions through. When it comes to business, most people want to get paid to do what they would do for free.
Look for the Nugget
When you read a book, look for the nuggets. Most books aren’t full of a vein of gold with billions of dollars of value, so you have to mine for one gold nugget.
The 25 Cognative Biases
When you understand how people decide things, then marketing can become very powerful and you have to be careful not to manipulate. Some of the cognitive biases include conscious fairness, association, availability, social proof, reciprocity, Pavlovian response, liking, disliking, reward, and pain. The Lollapalooza effect brings multiple cognitive biases, which is almost impossible for a human to resist.
Tai’s overall strategy has been to craft his messages based around cognitive biases. He looks at the ones that win, pushes them harder in order to develop a follower base of people who will come back into the fold, and drives everything else to move forward.
Two Types of Entrepreneurial Ventures
There are niche and mainstream entrepreneurs. The recommendation is to start niche, as you don’t have to be as good at cognitive biases. You can make a great living for you and your family without making a legendary marketing campaign. Make incremental steps forward rather than leaps. This will allow you to stack success on top of itself toward greatness. You have to be average before you can be the best. There is no skipping the middle. Develop the foundation.
The reason people come up with bad ideas is because they are in love with themselves. The reason why entrepreneurs suck is because they are very self-centered. Instead, ask yourself what are the real problems real people are dealing with every single day. Solve those problems, and you will be amazed by what will happen to your bank account.
You can learn from mistakes, but they don’t have to be yours.