DRAFT — assembled from the store. Every element is read from the library; the video is cued to a coded passage.
Exponential Entrepreneurs

The 97  ›  Leverage

The Law of Infinite Returns

The point

When you can use yield to invest and grow your business, you create a system of infinite returns. You will get unlimited returns if you set your sights on constantly finding these performance breakthroughs.

Jay Abraham · Two Day Rapid-Result "Instant Immersion" — Day 2 Cued to 5:25:00 1 min 35 sec loading…

Why it matters

Ask how much better this business could get, and a number arrives almost instantly. That number is not a measurement. It is a governor installed years ago by your own sense of the possible, and it binds you tighter than your capital or your market does.

The four-minute mile was thought impossible; the mile is now run far faster. Aircraft could not cross the ocean, then could not get past Hawaii, and now reach Australia without refuelling. Food was going to run out, and Paul Pilzer argued in Unlimited Wealth that it never will, because innovation answers scarcity wherever it appears: the acre that gave 100 bushels now gives 1,000.

Your business has more than 90 parts, each carrying several leverage points of its own. Improve one and it does not sit alone; it lifts every improvement you make after it. Four factors, each a 10. Added, 40. Multiplied, 10,000. Put a grain on the first square of a chessboard, double it on the next, and by the final squares the pile is past counting.

A near-infinite number stays a boast until you build the engine that produces it. Take what the multiplication throws off, feed it back in, and the system grows the system. One approach returns your result once; another returns it today and every tomorrow after, for the same money or less. Build the asset once and mine it forever. The work is not a bigger goal but the next performance breakthrough, and then the next.

The mistake almost everyone makes

Almost everyone hears near-infinite, raises the goal, and changes nothing else: each improvement still judged on its own, each return spent as it arrives. Judged separately, gains add. Spent, they stop. 40 is not 10,000, and a yield taken out never compounds.

The test: Look at your last three improvements. Ask what each one did to the other two, and where the money they threw off actually went. Nothing, and nowhere, means you are adding.

Where it shows up — 8 worked examples

WhoWhat happened
Carrd (AJ and Doni)Two people run a one-page website builder holding 2.5 million sites from 1.6 million users and over $1 million in annual recurring revenue.
CowayRents purifiers and appliances with scheduled servicing, adding 242,000 net rental accounts in Korea in a single quarter, up 51.6 percent on a year earlier.
EthiqueIts founder raised expansion capital from her own customers rather than investors, hitting the crowdfunding platform's NZ$500,000 daily ceiling in 90 minutes.
Flying Tiger CopenhagenA couple selling umbrellas from a flea-market stall opened one fixed-price variety shop, then repeated it toward 1,000 stores and over $800 million a year.
Four-Slide Technology, Inc.A 10-person clip and wire-form maker put $12,000 into a website redesign and reported $200,000 in increased sales from the engagement.
GhostGives its publishing software away free and charges only for managed hosting; a public counter reads $11,099,649 in annual recurring revenue, still climbing.
Hard Lock IndustryIts self-locking nut costs four or five times more than a conventional nut and needs no maintenance once installed; the company had 49 employees.
KerecisTurned Atlantic cod skin, a processing leftover, into surgical wound grafts, then sold the company to a Danish medical group for up to $1.3 billion.

What it solves

The words a business owner uses for this before anybody has told them the name of it. If one of these is a sentence you have said out loud, this is your strategy.

  • A target set years ago“We set our growth number the same way we set it five years ago, and nobody in this building has ever questioned it.”You will see the ceiling for what it is, an expectation rather than a measurement, held up against records that were also thought impossible until somebody broke them.
  • Improvements that never add up“We improve one part at a time and every improvement works, and yet the year ends about where the last one did.”Four improvements, each worth 10, come to 40 when you add them and 10,000 when they multiply, and this strategy's work is what makes them multiply.
  • The gains get spent“When something we try makes extra money, it just goes into the business somewhere and I could not tell you what it bought.”Yield fed back in over time is the engine that turns a near-infinite number from a boast into a system that funds its own growth.
  • Everything has to be built again“Every quarter we start from scratch with a new campaign and a new push, and nothing we built last quarter is still earning.”You will build the asset once and mine it forever, the way a company that gives its publishing software away and charges only for hosting watches its revenue counter keep climbing.
  • Only ever adding never multiplying“Growth here means more customers or more hours, and both of those cost me more than they used to.”More than 90 parts of the business each carry several leverage points, and improving one lifts every improvement you make after it, on the same time and money or less.
  • The client's own ceiling“My client agrees with every recommendation I make and then sets a target so modest that the work cannot possibly pay for itself.”You get records rather than an argument, the mile and the ocean crossing and the acre that went from 100 bushels to 1,000, so the ceiling gets discussed before the tactics do.

The challenge

Aim four improvements at one number, and book the yield

Choose the one number your business actually runs on, revenue per customer or customers per month, and write down what it reads today. Then name four improvements that all bear on it: the headline that opens the flow, the price, the follow-up after a no, the first step a new customer takes. Beside each, write the percentage you expect it to move, and multiply the four together rather than adding them. Start the first improvement within seven days, and write down, now, where the increase goes when it arrives.

How you will know it is done One number written with today's reading, four improvements aimed at it with predicted percentages multiplied, the first one started, the yield already assigned.

The AI layer · second pass

Once this is working, here is what to multiply

Improve the system first. Then multiply it. This panel is the second run at the strategy above, and it is deliberately useless until the first run is done.

Before you point anything at this You have built one asset by hand and watched it pay you more than once.
What it multiplies Holding ninety-odd moving parts in view at once and showing which improvements compound against which, so yield can be fed back into the next multiplication rather than spent.
The trap Setting the ceiling from what has already been done. A model trained on the past is the most fluent voice for the governor on your expectations, and it will tell you a hundred bushels an acre is the limit, right up until somebody grows a thousand.