2011: HUSTLE year of the hustle
YOUR WAY TO THE TOP
BY RAMIT SETHI
Flipping the Script: How To Recognize, Reverse, and Automate Invisible Scripts
......................................................
FLIPPING
THE
SCRIPT
......................................................
NEGATIVE INVISIBLE SCRIPTS
Theres a game going on around you that you dont even know about. How many of us go through life without testing our theories? Here are a few of the most insidious: SCRIPT: I could make $160,000/year if I just had a law degree. REALITY: Going to law school is likely to leave the average student in crushing debt and law schools are systematically deceiving students. This is why top performers know to only go to top 10 law schools, or they dont go at all. (The same is true of business school.) SCRIPT: Why would anybody want to help me? What would they get out of it? REALITY: People LOVE to help people who take action. If some random emails me and tells me his delusional dreams, Ill probably ignore him. But if he says, Heres my planIll email you back in 2 weeks with results. Then Im hoping to get some advice after Ive showed you that I can take action. Ill always respond. Who would be willing to help you? SCRIPT: I need to read more and more about investing before getting started. REALITY: You could set up your investment accounts by the end of the week and contribute $50/month to it and be better off than someone who spent the next year researching their investments. (Note that Im not saying you should just
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
open up an account and dump your money anywhere. You need to do your research. But you can nd out a basic place to invest, and tune your contribution amounts and asset allocation over time. I cover this in detail in chapters 3 and 7 of my book.) Of COURSE there are exceptions to every one of these trends. There are huge successes that go to non-top-10 law schools and end up wildly successful, just as there are entrepreneurs who have hit it big without ever opening an investment account. But if you talk to most top performers, youll notice these trends time after time. Do you have any these negative scripts do you have in your life?
POSITIVE INVISIBLE SCRIPTS
Here are a few key positive scripts that top performers hold: People want to help me, so its OK to ask them for advice I have a larger network than I realize..including my friends, friends friends, alumni, parents friends, and even people on LinkedIn and people whose blogs I read Its GOOD to be ambitious
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
I want to out-prepare the SHIT out of this interview/application See the difference? Negative scripts are about holding you back. Often, theyre so deep you dont even realize how theyre constraining you. Positive scripts dispense with the Should I? and get right to the How can I part. Its not Should I apply to XYZ? its How can I get INTO XYZ? What would make me irresistible to them?
ADVANCED STEP: AUTOMATING POSITIVE SCRIPTS
The rst step is identifying and testing our assumptions, which are invisible scripts that prevent us from getting what we want. But heres one more step: automating the solutions into your life so youre not dependent on willpower. SCRIPT EXAMPLE: I want to contact 5 people per week to offer my freelance services to BAD implementation: I should denitely do that. Ill get started some time next
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
week. Yeah, 5 people/week would be good. (Notice loser language: should and would.) GOOD implementation: On Mondays, I do research on whom I should contact for the rest of the week. I write down the names and email addresses. Tues-Fri has 15 minutes blocked out each day on my calendar to contact and respond to my prospects. SCRIPT EXAMPLE: I want to nd a better job BAD implementation: I hate my jobI need to get something betterI should read some books on nding a job, and see what else is out there. I need to update my resume, too, and probably log into LinkedIn. - GOOD implentation: I want to nd a better job which means it pays $5,000 more and lets me focus on XYZ area that I love within 60 days. This week, Im going to make a 7-week plan for nding a new job. Im guessing I need to research my eld, gure out which industries I should be looking at, narrow down the target companies to 4-5, then gure out who I know at each company. I could probably do each of these things in 1 week, but Im going to give myself a little more time in case I have to wait on other people. By Friday, Ill add a list of to-dos to my calendar for the next 7 weeks. See the difference?
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Positive scripts are specic, measurable, and focused on HOW to do somethingnot if you SHOULD do something. They dont depend on your willpower: As long as you honor your self-set calendar reminders, you will know precisely when to do something. Now I want you to focus on turning your invisible scripts into constructive successes.
SOMETHING SUBTLE
There are subtle things you can notice about people if properly trained. For example, people in debt have curious behaviors (they use a debit card -- any idea why?). When people lie, they make detectable micro-expressions, as documented by psychologist Paul Ekman. And when people say they are going to do something -- but really arent -- they use codewords. For example, I wrote a recent post where I challenged people to take action and leave a comment with their results. Check out the comments below -- what do you notice about people who said...
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
- I WANT TO DO X instead of I WILL - every morning I SHOULD instead of every morning I scheduled - Im going to TRY instead of Im IMPLEMENTING - Im going to FIGURE OUT HOW TO instead of I will SET UP XYZ CONDITION Even these subtle comments can betray peoples own barriers holding them back from action. These are some of the extraordinarily subtle ways you can evaluate people...and even use them to change your own behavior.
3 CASE STUDIES: ORDINARY PEOPLE USING INVISIBLE SCRIPTS TO HUSTLE
It happened again last month. One of my friends told me an interesting factoid Did you know that Victorian houses in SF used to be considered cheap models, but now everyone loves them? and I said Hmm, interesting and continued chewing my sandwich.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Two weeks later, I was walking with the same friend, and I said, Hey, I heard something interestingdid you know that Victorian houses used to be GOD DAMNIT! she said. *I* told you that! Ah, yes. I forgot. Again. Its become a running joke that I hear someones idea, then 2 weeks later mention it to the SAME PERSONwhich drives my friends crazy. But for some reason, it seems hilarious to me. So today Im delighted to be able to OPENLY take credit for one of my friends ideas and tell you how its improved my life. I met Paul Singh a few years ago, and I was so impressed that I hired him for my last company, moving him and his wife to the Bay Area. Little did I know that he was one of the worlds premiere lifehackers. After a few months of exchanging techniques, he shared a technique that Id never heard. I put away $3,000 every year just to meet interesting people. What do you mean? I asked.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
I just put it into a separate account and force myself to spend it. Interesting. I said. A little while later, I went to my 5-year college reunion. I met another friend, Steve, who was speaking on an alumni panel. He had moved to Seattle to work for Microsoft, but he had a particularly amazing strategy that I fell in love with. When I went to work for Microsoft, I knew Id eventually want to move back to the Bay Area to start a company. So I made it a point of keeping my relationships warm. How did he do that? Heres where it gets insanely awesome: I made a promise to myself that if anyone invited me to lunch, or even coffee, Id y to San Francisco to do it. I basically treated the plane ight like an hour-long car ride. How much did that cost him in a year? Maybe a few thousand dollars. But guess what? Steve did start a tech company and, using his carefully cultivated relationships, hes gotten terric press for his company, which is protable and killing it. By this point, youve learned about recognizing and banishing the negative scripts from your lifeand automating the positive scripts. Paul and Steve both automated positive scripts of investing in themselves.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
And of course, since I love to take credit for my friends ideas, I now set up a sub-savings account and force myself to spend on meeting interesting people. Heres an actual email I sent to somebody who I want to meet: [Initial email was the basics: Hi who I am, how I can help him, etc. We went back and forth. Then I wrote this:] If theres anything more I can tell you, please let me know. If a phone call or even coffee in LA makes sense, just let me know and Id be delighted to do it. I live in New York and San Francisco and it was important enough to meet him that I offered to y to have coffee with him in LA. Even one meeting with him could change my business. (Sidenote: He hasnt responded after our initial back-and-forth, so I added this to my Failures tag. But I continue to send him updates on my business and I know eventually hell respond.) If you read this and say, Waa I cant afford $3,000 per year to travel around and meet people, youre missing the point. This is not about the amount of money you could do the same with $20/month by taking 2 people out to coffee. The point is the mindset: Investing in your friends and relationships pays off, hugely.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
We all claim relationships are important. But when you look at objective measures your calendar (time) and spending (money) are your actions really matching your claims?
THE CASE STUDIES
1. Jackie Schmidt Backstory: Jackie went from thinking she was horrible at business to creating a referral program that brought in so many clients she had a wait list a mile long that represented over $80,000 in revenueand she did it in just 6 weeks Old Script: Im terrible at business and cant think of ways to improve it. Automation: Jackie used my Earn1k technique on referral machines to outsource her marketing. Most of the work was completed beforehand as I teach in the course and once she recognized the opportunity, it was a 5-minute email to seal the deal. Ill be sharing a detailed case study from Jackie on my Insider email list.
2. Adam Baker Backstory: Baker was a newly married family man accumulating debt upwards of $18,000. He made the decision to clean up his debt, sell everything he owned,
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
and spend a year living in Australia. He paid off $18,000 in debt and saved over $17,000 before living overseas in Australia, New Zealand, and Thailand. New Script: The rst step to living a life of passionis to remove the barriers that hold you back. Automation: Bakers mantra: Sell Your Crap Pay Off Your Debt Do What You Love In the year leading up to the trip he sold all of his possessions (down to two backpacks) and payed down $18,000 in consumer debt. In June 2009, they left for what was to be a year in Australia, but quickly turned into more mobile travels through Australia, New Zealand, Thailand, and nally back to Indiana. And now hes added earning more money to that list through terric products.
3. Eva Motch Backstory: Eva is a designer who wanted to nd a better job for 6 months. She not only quit her job and received a $12,000 raise, but found work on the side at a $4,000-a-year clip (with more to come). Old Script: I hate my job and want to quit, but will wait until something better comes along. Automation: Eva implemented a plan to apply to leads on Craigslist systematically, and in so doing stumbled upon the full-time job and salary bump.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
BY THE WAY, Jackie (#1) and Eva (#3) were members of Earn1k, my step-by-step on earning money on the side. Later this month, Ill be opening up Earn1k 2.0 an updated version of the course with powerful techniques to turn your existing skills into side income. As Eva told me, Your class honestly and truly helped me, and I will make many times more in my life because of it.
BONUS: 3 MORE EXAMPLES OF REAL PEOPLE AUTOMATING POSITIVE SCRIPTS
Since you joined this Insiders List, here are 3 more private examples. Each comes from graduates of my Earn1k course on hustling and earning money on the side. 1) John Meaney, Earn1k graduate Backstory: John went from being bed-ridden from a back injury, to successfully designing and launching a freelance business--teaching bouncers, police, and military how to ght (this seems outrageous but its true) Old Script: I cant improve my situation because the pain is too much and Im stuck here.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Automation: John created a rehab system with set times and activities so that the default habit led to improving his physical condition.
2) Erin Peterson, Earn1k graduate Backstory: Erin is a freelance journalist who had been freelance writing for years and had top-tier clients, but found herself spending time pursuing small deals with clients that didnt respect her. She wasnt sure how to take her income to the next level. She created a system to focus on high-value work, saving her time every month and leading to booking nearly $12K of work from really high quality clients in just three weeks. Script: I can make more money in less time if I had a few additional techniques to get new clients and get more from my existing clients Automation: She started thinking more strategically about her clients, like where they were coming from and how much they paying her. She implemented a system to eliminate low-value clients and instead signicantly raise her rates with fewer valuable clients.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
3) Hilary Gillespie, Earn1k graduate Backstory: Hilary was a freelance web designer who increased her income dramatically. She could be making $12,000 a month, but chooses to work less so she can live a better lifestyle. She ended up with a waiting list of clients, including one $8k client and taking a month off. Old Script: Its hard to get people to pay for web design Automation: She automated an asshole tax so she wouldnt have to deal with penny pinching clients. It allowed her to focus her business on high value clients and get rid of the time suckers. Now she doesnt have to chase people for invoices or deal with those that are really excited in the beginning but end up pinching pennies at the end.
BONUS: THE SINGLE EMAIL THAT COST ME $75,000
There are 2 kinds of people: Those who operate as the world SHOULD be, and those who operate as the world ACTUALLY IS. For example, people who operate as the world SHOULD be say things like:
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Just tell those kids not to have sex! She really shouldnt spend so much on clothes Keep a budget...duh These people feel good saying the above things that others should do, but does anyone actually listen? Rarely. Compare this to people who operate as the world ACTUALLY is: Look, youre not going to keep a budget, so automate your money and get on with your life Its not realistic for me to tell you to stop shopping, so let me instead show you how to earn enough to afford those John Varvatos pants you love Here, if you decide to have sex, at least get educated (NOTE I WILL SIMPLY LOCK MY CHILDREN IN A SUBTERRANEAN DUNGEON SO I CAN AVOID THIS CONVERSATION) Between should or actually is, you can probably guess which one I am. From my years of studying psychology, social inuence, and persuasion, Ive realized how difficult it is to change behavior. So when I do try to change behavior, I focus on the BIGGEST WINS I can get.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Thats because we are cognitive misers -- we have limited attention and willpower. So if I tried to get you to save $3 on lattes every day, youd (1) want to commit suicide every morning, (2) it wouldnt make much of a nancial difference, and (3) youd use up your limited willpower for a pointless task. This is what so many personal-nance experts dont get. They believe that people can make an UNLIMITED number of changes. But if you look in your own life in the last 2 months, you know thats not true. Sure, we should improve our eating, gym attendance, networking, nances, relationships with friends, relationships with family, knowledge of the stars, abilities at work, etc etc etc. Yes, we should do all these things. But we dont. So I choose to focus on how the world ACTUALLY works instead of what people should do. Thats why I focus on the BIGGEST WINS people can have...like automation, investing early and wisely, earning more, ethical networking, and of course, hanging with friends. I genuinely believe this. And to prove it... Look at the email I sent out recently, which embraced this approach....and (intentionally) cost me $75,000....
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
THE $75,000 EMAIL
Most people dont know about all the courses I run. At any given time, Im launching and testing different ones for months -- or even a year -- before I mention them publicly. This way, when I do a public launch, I know my products are 100x better than anyone elses on the market. For the last 12 months, Ive been running a course called Beyond 1K, a follow-on to my Earn1k course on earning money on the side. It was generating several thousand dollars a month -- most of it pure prot -- but after a year of testing, I wasnt satised with the results I was getting, or the results I was generating for my students. So even though students continued to pay me a LOT of money, I shut it down. Heres the email I sent: I wanted to let you know that Ive decided to discontinue Beyond 1K -- tonight will be the last Ass Kicking call -- and I wanted to share my reasons for doing so. My entire philosophy revolves around Big Wins -- focusing on the most important and highest-performing actions you can take. Not only do I apply this to my personal nances, I also apply it to my per-
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
sonal life (my Tripod of Stability) and my business. To be blunt, Beyond 1k is not performing to the levels I want it to. I only want to create the best products, and focus on the highest and best use of time -- for me AND for you. I also want to take a minute to highlight the meta-lesson here. Ive got a fully automatic system that is paying me lots of money each month with Beyond1k. It would be easy for me to coast and continue making several thousand dollars per month from Beyond 1K, but thats not what I want to do. Thats not a Big Win for me or for you. Sometimes you have to cut things out of your life that are performing well... just not as well as you WANT them to. When I shared this news with a couple of friends (who dont know my business too well), they were shocked. Why dont you just keep it running? they asked. They dont understand the idea of only focusing on things that are providing EXTREME value for my students and for my business. I can provide good value and be a mediocre performer. But I want to only provide EXTRAORDINARY value. Id rather refund your money and focus on something that is going to take you 5 levels forward.
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
Thats why Earn1k is so good (and costs so much). And thats why Im going to be working on several new products that are of such extraordinary quality, youve never seen something like it before. I have a few additional details to add: As usual, you put your trust in me, and I want to honor that. Ill be refunding any un-used money for Beyond1K. Any amount paid for Beyond1k after 11/21/2010 will be refunded in full. If you purchased the annual subscription of Beyond1k, you will receive a refund as well. You will get an email with the exact amount from the B1k team in the next 2 days. All recurring payments have been cancelled If you received B1k as a bonus for purchasing Find Your First Protable Idea, Rachel will be in touch to let you know what you get instead. The Ning forum is staying up for right now You will retain access to the B1k section of [Link] until Feb. 1st We will still be doing some VERY limited coaching. If you are currently enrolled in coaching, your session will be completed. If you are interested in coaching, email REDACTED@[Link] Thanks, and I appreciate your help, support, and trust. -Ramit
[Link]
......................................................
FLIPPING
THE
SCRIPT
......................................................
That email cost me over $75,000. But I truly believe in focusing on the MOST IMPORTANT things in life with the HIGHEST POTENTIAL. Thats what hustling is all about.
THERES MORE TO COME
Talk to you soon, -Ramit
To get more Hustle materials, keep your eye on The Hustle Bonus Index.
[Link]