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Unfortunately, the way AI is disrupting the world at the moment, everybody is going to
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have to become more entrepreneurial.
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One of the biggest employers in the Bay Area is cutting thousands of jobs because of AI.
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This week, Microsoft announced it is laying off nearly 4% of its workforce as it tries
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to refocus more on AI.
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You might be wondering which businesses and which jobs are going to survive the AI revolution.
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And unfortunately, the answer is none of them.
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Absolutely every business, every industry is going to be impacted by AI.
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In this video, I'm going to explain to you what's happening at a very high level economically.
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It'll explain why everything feels really expensive.
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All of this will make sense once we get to the end of this video.
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The good news is you're going to know exactly how to respond
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so that the rest of your life is absolutely wonderful.
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My name is Daniel Priestley.
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If we haven't met before, I'm an entrepreneur.
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I've lived through many different disruptions.
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Over the last 20 years, I've started and scaled multiple companies.
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I've had seven businesses that went zero to a million in their first 12 months.
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I've had three businesses worth more than 10 million.
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Now, the first thing I want you to be aware of is the macro trend driven by technology
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that goes hundreds of years.
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If we were to go back in time to the 1750s, we would have seen the decline of the agricultural
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age.
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And it was all based on land ownership.
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Who owned land?
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Who controlled land?
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Who took over land?
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That was all based on this system.
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That game came to an end when the birth of the industrial age came along.
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So call it about 1750, we started to see the decline of the agricultural age and we started
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to see the gradual increase of the industrial age.
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And the industrial age was driven by all sorts of tools and technologies, was factories and
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offices.
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And the whole idea with factories and offices is that you basically set up a factory or
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an office and within a local five mile radius, you need to get men and those men need to
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come to the office and they need to work in the factory or the office.
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And what I believe is happening is we've entered a new age that we'll call the digital age.
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And the digital age is the age where geography doesn't really matter at all.
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We're so disconnected from farming and land and all of those sorts of things.
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And also factories and offices don't really matter very much anymore.
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It's all about this new type of assets.
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And these new assets are called intellectual property, which is ideas, data, which is knowledge
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about stuff and collecting that data, media, which is what you're watching right now, videos,
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published content and code.
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right so that would be software ai tools all of those sorts of things all of that industrial age
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which you were prepared for with the schooling system all of that is now outdated it's in
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decline and everyone who's connected to that system is experiencing a decline right so this
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is going out and it's being replaced by this digital age and if we look at the cities and
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the places that are doing really well it's pretty strange like take dubai for example dubai has no
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farmland. It has no factories. It's too hot and too expensive to do any of that, but it's attracting
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a lot of digital entrepreneurs who have IP data, media, and code. So the first thing that you need
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to be aware of is that you were raised for a system that no longer exists. You went to a
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schooling system that was created in the 1850s, right? And it was very, very relevant from 1850
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to 1950. It did a great job, but ever since then, it's been in decline. If you were like me,
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I was born in the 80s.
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I remember the absolute peak of the industrial age was the Simpsons.
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Right.
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And if you look at the star of the show of the Simpsons you got Homer Simpson Homer Simpson is an average guy right He a normal guy there nothing special about him but he has a job That job pays for a big five house
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He's got three kids.
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His wife doesn't have to work.
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He takes holidays.
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He's got a car.
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So this was the point in time.
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This was late stage industrial age
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where someone working in a factory or an office
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could have a very, very comfortable life
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because it had matured, the industrial age had matured
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to the point where Homer Simpson
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could actually have a pretty damn good life, right?
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So that tells you that that is the peak
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of that particular system.
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We know that right now you would never create
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a show called The Simpsons
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because no one would believe
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that it was possible to live like that.
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In the industrial age,
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all of the results clustered around
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something called a bell curve.
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The bell curve says we reward the average,
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we reward Homer Simpson.
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So the average doctor gets paid
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what every other doctor earns,
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the average dentist earns roughly the same. Everyone who works in a factory gets paid the
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average or thereabouts of the factory. If you take any factory or office, the way that they pay people
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is through something called wages. And wages is about creating an average amount of time for an
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average amount of work and getting an average amount of pay. And essentially in a wage situation,
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you actually have a situation where you just have juniors, right? And you have standard
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and then you have senior, so gold, silver, bronze,
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and basically everyone gets paid roughly the same.
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And there's occasionally, there's a little outlier
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who's exceptionally good at what they do
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or maybe an apprentice who's just getting started,
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but almost everyone gets paid on a bell curve.
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In a digital environment, that's not how things work.
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In a digital environment,
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we operate on something called a power law.
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So a power law is where all the results
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go to the top 10%.
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So you have 10% of the people getting 90% of the pie and you have 90% getting 10% of the pie.
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If you go and have a look at Google, Google is the top search engine and it gets 90% of the search
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traffic. So everything that happens in a digital environment is all about power law. So what you
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have to know is that just simply turning up and being Homer Simpson, being average, doesn't work
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anymore. You must be in the top 10% at something. Now, the good news is, is that you can find people
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anywhere in the world. So geography doesn't matter anymore, right? Geography has changed.
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So what you can do is you can define your own game. You can say at the intersection of fitness
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and executives and running your first marathon,
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and maybe men, right?
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You can say at this particular thing,
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I'm gonna be the top.
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I'm gonna be the best in the world at that,
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or at least I'm gonna be in the top 10%.
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So you might say, okay, here's what we're doing.
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I am gonna help men who wanna get fit,
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who are executives at what they do.
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They have a busy life between their normal life.
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They might be executives or entrepreneurs,
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and I'm gonna help them by getting them
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to run their very first marathon.
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And I'm gonna be the best in the world at that, right?
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So that means that if you define that game,
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you can say for that particular niche,
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I can promote myself as a key person of influence, right?
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The person who is most well known for that
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and I can be in the top 10% of that.
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Now if you had have just simply said I just work with fitness there a good chance that you gonna be somewhere in the middle which means there no money If you said oh I just work with men and fitness okay maybe you here but by adding some parameters
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to the game, you're gonna push yourself into the top 10%
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and now you can promote yourself.
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And the more people who are interested in playing
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that well-defined game, they're gonna find you
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no matter where they are in the world.
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They're gonna wanna buy your courses, buy your books,
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buy your things, watch your YouTube videos, right?
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So you're gonna end up as a key person of influence
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at the top of a power law.
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So your job is no matter what,
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you've got to stop being Homer Simpson,
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stop being average,
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and you're gonna start being at the top of a power law,
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however you wanna define that.
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What typically happens is you niche, then pivot,
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niche, then pivot, niche, then pivot.
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You find yourself at the top of a power law,
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and then you pivot to something bigger.
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And eventually you end up at quite a big market.
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That's the game that we're currently playing.
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Let me give you some more rules to this game.
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Okay, so how does AI really impact things?
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and what do we expect to see over the next five years?
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Well, let's have a look at how income enters people's houses
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as it currently stands,
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and we're gonna look at what's gonna happen in the future.
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So as it currently stands,
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income really only enters people's house
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through one of four ways, right?
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So here's a little house, right?
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So for majority of people,
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income enters their house through a wage.
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So the wage, as I said,
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is an average amount of time, a month, right?
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for an average amount of pay to do an average amount of work.
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As it currently stands,
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about 60% of money entering people's houses
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comes from wages.
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If you don't have wages,
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we often have what we call government benefits.
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And at the moment, about 15% of the money
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that's entering people's houses
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is coming from the government.
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So it's a government benefit thing.
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One of the big ones that's gonna come next
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after AI takes over all sorts of things
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is something called UBI.
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UBI is universal basic income.
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It's basically getting paid by the government because you're not working, because AI took
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your job.
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Up here is what we would call fees.
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And I call this performance fees.
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And fees are all about doing something where you can measure your performance.
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So this could be a commission that you sold a house and now you get a commission for selling
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the house.
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Or it could be that you're self-employed and you did a day's worth of work and you get
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paid for a day's worth of work.
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So this is self-employment, entrepreneurship, sales commissions, but it's very much, it's not
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linked to wages. It's not an average amount of money for an average amount of time for an average
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amount of work. It is actually a money that is directly linked to some sort of performance. And
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once again, at the moment, we have about 15% that is coming to people who are entrepreneurs or fee
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earners. And then finally over here, we're going to call this rent. Another word would be yield,
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but it's money from assets, right?
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So this is basically money that comes in
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because you own a house or because you own shares.
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So people who are able to live off of the rent
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that they're earning from some other asset that they earn,
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people who get a yield,
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maybe you own some stocks or shares that pay a dividend,
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that you don't have to do anything,
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these just keep paying you regardless of what you're doing.
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So traditionally, this would have been called passive income.
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And at the moment, about 10% of the money
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that's going into people's homes
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is coming from that type of income.
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So that's the pie as it currently sits where we are today,
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before AI disrupts things.
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What's gonna happen is we will probably get rid of wages.
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Wages are gonna start going away.
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Not all at once, not for everybody.
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There's still gonna be some wages.
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And the reason for that is wages just do not make sense
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in an AI world.
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Anything that is average anything that repeatable anything that just kind of like monotonous we can automate it We can automate it with robots or we can automate it with AI The truth is I don make the rules by the way
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I'm just noticing the trends.
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The truth is this is probably gonna end up closer to 30%.
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So we're gonna probably see a halving
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of the amount of people
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who earn their money comfortably through wages.
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Now, what's gonna happen is
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that we're probably gonna have half those people
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who lost their wage go down to government benefits
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and the other half go up and become entrepreneurs.
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So these are people who go,
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oh, I can't make money out of a wage,
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but I can make my money from business
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or I can make my money as a commissioned salesperson
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so I can go from a wage slave to a performance fee earner.
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Now, what I do think is gonna happen,
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the government is gonna have to scratch the head
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and say, how do we pay for twice as many people
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on government benefits?
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How do we do that?
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So what I think they're probably gonna do
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is they're gonna bring in something called wealth taxes.
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And wealth taxes is basically seizing your traditional assets in order to pay for the money here.
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Now, the reason they'll go for wealth taxes is because this number here, 10%, even if they taxed all of that, it's not enough.
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So because assets typically earn about less than 5%, you could basically take that 10% and you can say, oh, well, there's probably about 20 to 30 times that if you calculate the wealth.
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So if we start chipping away at people's wealth and taking that wealth, we can then probably
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pay a big chunk of these benefits over here.
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Now, they'll probably also try and tax these people, these fee earners.
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However, there's a different catch here.
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These fee earners are going to become more and more high performance fee earners because
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they have digital assets.
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Remember, we talked about intellectual property like books and videos and media.
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So they've got these new economy assets, IP, media, data and code.
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and all of those assets are giving them superpowers
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to earn more money than ever.
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So these people have figured out
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that intellectual property, media, data and code
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allows them to earn performance fees much higher.
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That means their businesses are more profitable.
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They can sell more stuff.
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They can earn more.
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These people can do that from anywhere.
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So these people can be in Dubai.
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These people could be in Vanuatu.
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These people could, wherever the hot place is.
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If all of a sudden those places became high tax places,
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they could just move to somewhere else.
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So it's gonna be very difficult for governments
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to chase after these people
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because they hop on a plane
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and as long as they've got their laptop and their phone,
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they're able to do what they do.
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So that means they're gonna go after these people.
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So the punchline is what you need to do
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is take as much money as you can
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and develop these assets, IP, media, data, and code.
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You need to build a personal brand.
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You need to have online assets.
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You need to have things that make it easy
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for you to deliver performance.
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Don't seek out passive income,
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seek out massive income.
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Anything that helps you to be a high performer
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because of your brand, because of your database,
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because of your content library,
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that's the stuff that's gonna be out of reach
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of grabby governments when all of this goes down.
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So you wanna be in this camp here.
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You wanna have a lifestyle boutique, lifestyle biz, right?
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You wanna be able to have fun, freedom, flexibility,
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the ability to live and work from anywhere
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because of your digital assets.
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Okay, I hope that tells you what's going on big picture.
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I hope that spells it all out for you,
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gives you something to think about,
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tells you how to start thinking,
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how to strategize, how to invest.
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I've just done a big long video, 60 minutes,
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that talks about how to do a seven figure business
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from zero to seven figures using IP media data and code.
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There'll be a link to that here.
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Hope you're enjoying this content.
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If so, give me a like and a subscribe.
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And also I hope your business is doing really well
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and I look forward to seeing you soon.