Vancouver Entrepreneurs Group – How to generate massive passive income with Dan Lok
Date: April 1, 2015
Name: Vancouver Entrepreneurs Group – How to generate massive passive income with Dan Lok
Presenter: Dan Lok
Passive income is a term every entrepreneur need to know and need to have. Moreover, many entrepreneurs have no idea how to create passive income. Vancouver Entrepreneurs Group invites Dan Lok, the Founder of Vancouver Entrepreneurs Group, to teach entrepreneurs the mindset and the truth behind passive income. Dan Lok’s strategy in this presentation will allow entrepreneurs to realize anyone at any stage in their lives can have the ability to generate passive income.
Many entrepreneurs refer Dan Lok as the world’s leading expert in internet marketing. In addition, many entrepreneurs also refer Lok as the Millionaire mentor. HIs accomplishment starts in the world of internet. By publishing many digital copies of his books and helping others launching successful online businesses, he has the passion to help and motivate business entrepreneurs to create profitability. Furthermore, Lok is the CEO of Charm Junction Inc, and has helped many people transform their lives to the top.
Dan Lok came to Canada at a young age. Without understanding any english, Lok was struggling through his life. His early dream was to become a Martial Art instructor; however, he later realized the path he picked could not provide enough support for his whole family. Nevertheless, he realized he has the teacher heart. His first business was mowing lawn for the community. The business finished quickly because of no customers, and no customers equals no money and business. Lok pursued many businesses and the result was unsuccessful.
“It is not how much you make, it is how you make money”
He focused on many personal development books, but the help was not enough. Lok believed there was something missing in his career. He began to question if rather other successful people are just lucked or smarter than him. Lok started to study internet marketing because he could not understand why people buy junks on internet. After his apprenticeship from his mentor, he started to earn over 10,000 dollars per month. His strategy was selling books online to teach people to protect internet marketers. He repeated his strategy based on the economy trend and he began to generate massive passive income. He had reached financial freedom at an early age, but he realized he was still depressed, until he found the answer.
“The truth will set you free, but first it will piss you off”
Categories of Income
Lok believes there are 4 categories of income: linear, leverage, passive, and windfall. Lok provides examples for each category.
| Linear | Leveraged | Passive | Windfall |
| Salary | Strategic Alliance | Commission Staff | Appreciation of Stock |
| Overtime | Sub-contractors | Buy-based Networking Marketing | Appreciation of Real Estate |
| Commission | Goodwill | Renewals | Appreciation of RRSP |
| Consulting Fee | Clients Contracts | Interest Income | Inheritance |
| Professional Service | Salaried Staff | Dividend Income | Lottery |
| Sale based Networking Marketing | Large Bonus | ||
| Selling a business |
Lok emphasizes it is easier for people to generate linear income because they are taught to work in linear. In the real business world, there is no course available through school that teaches the proper way of managing money. They are brainwashed to work in linear income.
Lok wants entrepreneurs to convert linear to leverage. Afterwards, they can convert leverage to passive. Windfall is dynamic, so entrepreneurs should be based on those income by the current economy. Entrepreneurs should not convert every leverage to passive because leverage can motivate entrepreneurs’ passion and desire in business.
3 myths blocking entrepreneurs from earning passive income
Lok shares the first myth that is blocking entrepreneurs from earning passive income is the term “financial freedom”. Based on Robert Kiyosaki, the author of Rich Dad Poor Dad, the definition of financial freedom is total passive income exceeds total expense. When people reach that status, they can retired. However, when people reach financial freedom, they have the time to do what they love, not retired. Therefore, financial freedom will lead people to be bored.
Lok shares the secret of life is not financial freedom, it is progress. If entrepreneurs are growing, they are fulfilled. When entrepreneurs generate enough passive income, they have to go back to business again. Passive income will drop because economy is changing. Entrepreneurs need to find ways to adapt the changes by changing strategies.
“Just because it is passive it does not mean it is permanent”
Lok believes the truth is that entrepreneurs do not aim for financial freedom; instead, they should aim for financial confidence.
The economy is changing and the concepts will be outdated. It is important for entrepreneurs to have financial confidence. Financial confidence defines as the ability and the skill entrepreneurs they obtain to earn money any time.
Lok emphasizes financial freedom is just an illusion. It gives entrepreneurs fault free and give something for them to aim for. Moreover, financial confidence is the essence entrepreneurs should aim for.
Lok shares the second myth is the term “passive income”. In definition, passive income means it is an income received on a regular basis with little effort required to keep. Lok believes generating passive income is not easy and it takes a lot of hard work. It does not come overnight.
“Passive does not mean effortless”
All successful people do not use the term “passive income” because in reality, none of them got into their business because of free work. Successful people work more hours than regular people and it is all about progress.
Retirement means entrepreneurs can do what they want and when they want. If each successful owners from Forbes 400 is doing that, they have all retired – into their jobs and companies.
Lok shares passive income can be a dangerous fantasy for entrepreneurs. Lok listed four main reasons.
- Entrepreneurs cannot stay ahead of competition passively
- Entrepreneurs cannot maintain a loyal tribe to customers passively
- Entrepreneurs cannot lead great team without passively
- Entrepreneurs cannot create meaning, passion, or purpose passively
It is difficult to stay successful than becoming successful. In fact, this is a change of perspective. Lok shares the pursuit comes from purpose, meaning and joy. Therefore, entrepreneurs cannot create meaning, passion or purpose in their lives passively.
Lok believes when entrepreneurs have the intention of getting way from business and customers, they tend to fail. Entrepreneurs should move towards business and customers. When business are not creating values for customers, they will not generate cash as what entrepreneurs hope for; in addition, when entrepreneurs pursue passive income, they usually end up having active losses instead.
Lok believes the truth is to leverage income. Entrepreneurs need to find ways to use other people’s money to generate values. Entrepreneurs do not need rich books to teach them what they should do because there is no magic pill. Everything is about progress. Entrepreneurs should only buy things that obtain the skill or improve the skill that will generate leverage income.
Entrepreneurs should avoid the shiny object syndrome. Instead, entrepreneurs should master their skills first and proceed to the next skill after they master the previous skills. The hardest part to achieve abundance in life is getting the mind to do the right things for the right reasons.
“Build on what you have”
“Aim for leverage in a business you care about, not passive income in a business you do not care about”
Lok suggests entrepreneurs to become the creator or artist of commerce. Entrepreneurs should create value first, leverage second, and then systemized.
“I love this so much, it is the only thing I do for money. It will be unstoppable”
The third myth is people focus on what they do. Many people think it is because of the vehicle that drives the money for them.
In life, people need to master skills. The difference between an amateur and a master is the development of natural reaction. Amateur knows many different ways, but master only know certain ways that works. To become a master, entrepreneurs need to focus. They need to focus until they are good enough that people are lining up to see them. In reality, there is not a lot of masters in the world.
The truth is entrepreneurs need to focus on how they do it. They need to know how to create more leverage with their business. People have more fear in success than failure because their brain only know how to handle failure. Brains will avoid any unknown.
It is easy for people to set passive income and forget it. Lok wants entrepreneurs to understand that passive income is a great revenue source that is earned from persistent, ongoing cultivation.
2 steps to creating and enjoying the wealth you deserve
Lok shares people tend to make up rules to reach wealth. Unfortunately, the rules are usually too broad. Therefore, they will never win. There is no amount of money that will make people wealthy because wealth is a state of mind.
The first step is allow entrepreneurs to know they are already wealthy and free.The worst they can be is other’s fantasy. Wealthy is gratitude. Entrepreneurs cannot be grateful and be stress at the same time.
“what yo are grateful, fears disappear, and abundance appear”
The second step is to do a morning ritual to improve entrepreneurs’ lives. Lok suggests a 10 minutes of visualizing grateful moments and freedom in the morning will help entrepreneurs obtain the feeling of unstoppable.
FU Money Formula
Lok provides the guideline to help entrepreneurs’ business
| Platform + | Growing Demand + | Value |
| X | ||
| Automation + | scalability | |
| x | ||
| Controllable Leverage |
Entrepreneurs need to focus on the niche market where there is a growing demand. Lok believes the biggest reason business fail is because they cannot find enough customers to make transactions before their money run out.
Instead of creating a new market, entrepreneurs can adapt the submarkets or existing markets because they have already obtain the community of people who will purchase products and services.
Automation can be building a team, bringing in partners, automate tasks, or outsource production. Business needs to have scalability. Without any growth problem can help business to take control.
Entrepreneurs should realize they are already wealthy. They need to find a market that can provide real value in the market. Build a strong purpose and leverage their business with automation and scale up. With enough time, business will evolve to an asset.
