Table of Contents
Be a Producer, Not a Consumer
The Millionaire Fastlane is about thinking about business from a pragmatic, not academic perspective. De Marco advises you to find things that can make you money while you sleep, to be need driven, not money driven (selfish consumer-like producer jumping from one thing to another). The market doesn’t care about what you love. It wants you to produce something of value.
The Three Paths
Your road to financial prosperity is defined by one of three paths.
- The Sidewalk
- The Slowlane
- The Fastlane
The Sidewalk
Immediate gratification is king. Sidewalkers care about the next fancy gadget, German car, and designer purse etc… They don’t make long term plans. They live like there’s no tomorrow and give little priority to education (it finished just after getting degree). They aren’t financially responsible and blame other people for their failures, but never themselves. They live by the “You never take anything with you to the grave” philosophy, so they only plan for the short term. They gamble and frequent casinos, always believing they will get lucky this time around. They binge watch Reality TV, soap operas, play video games, and anything alternative reality related that wastes time. They believe in get rich quick schemes.
You can be filthy rich and riding the sidewalk. Money mismanagement doesn’t care about how much money you have. Sidewalkers hate process, but love events. They believe in luck and believe in miracles will save them: the poker tournament, the lottery ticket, or casino games.
The Slowlane
Slowlaners get a job, work 5 days a week, bag a lunch, don’t drink expensive coffees, think extensively about their 401 k’s, delay gratification until they’re old. They are believers in the miracle of compound interest, that 10 dollars today will be worth a gazillion dollars in 50 years.”
“Slowlane advice is like getting bad directions at a gas station. Unfortunately, the people giving it to you are people you trust like teachers and parents.”
They believe time is abundant and will happily trade time for dollars, that education is only a stepping stone to a bigger salary, that money is scarce, and penny pinching is key. Slowlaners think of their job as their only source of income. They won’t take unnecessary risks, and repeat slogans like “diversify” “clip coupons” “get advanced degree” and “save X percent of your paycheck”
“The ultimate insanity is to sell your soul Monday through Friday for the paycheck of Saturday and Sunday. Yes, give me $5 today and in return I’ll give you $2 back tomorrow. 5-for-2. No? How about five loaves of bread today and in return, I’ll give you two back tomorrow. No again? Why? This is a smoking deal!”
“A Slowlane guru preaches that a $10,000 investment grown at 15% will be worth over $2.5 million dollars in 40 years!!! Hooray!!!” And unless you’re investing in some Ponzi scheme, you will never see that rate of return.”
“Forget Wealth in a Wheelchair.”
The slow lane life epitomizes mediocrity. Things aren’t great, but so bad either.
The Fastlane
The Fastlane journey as a difficult trek. There aren’t cheap “how-to” tricks that are going to make it faster for you, and he doesn’t try to give you the tips or hints that made him successful. That’s not what’s relevant. The Fastlane has tolls you have to pay. Those who pay it earn the right to be in the Fastlane. You must be willing to do the hard work to make it and live in a way that few can.
“Wealth eludes most people because they are preoccupied with events while disregarding process. Without process, there is no event.”
The Fastlaner’s mindset is that time is the most important thing, education never stops, money is abundant and reflects how much value you create. They earn income through business systems and investments, they put their hopes on creating assets that are valuable to the market. The Fastlaner’s destination is lifetime passive income, they believe that the more they help, the richer they become in time, money, and personal fulfillment. Life is what they make of it, and no dream is too outlandish to pursue.
“As for failure, trust me—it is easier to live in regret of failure than in regret of never trying.”
The Difference Between Passion and Love
Passion is bigger than you, and it concerns external goals. Passion for an end goal or a “why” like “make a difference”, “prove him wrong”, “buy a Lamborghini”, “write a book without pressure of money” is what will fuel your success.
Love is industry specific (It might be “I love to dance” but if there isn’t a market for what you have to offer, if there is no need, then your “love” is useless. You won’t make money from it. Unless you are very lucky and are extremely good at what you do – which most people aren’t. Doing what you love is what many people do but end up regretting. Crowded marketplaces make it very hard to make money from what you love. Then, you’ll give up, and your love for that activity.
Don’t Fall for the Trap
Regardless, the trap is to trade your 5-day workweeks doing what you hate for 2-day weekends doing what you love. That’s the Slowlane – the 40-year grind that will only see you get what you want when you’re 70. There’s a better way, there’s a smarter way than that.
Make Use of Your Time
“Time is your primordial fuel and it should not be traded for money”
When you are paid hourly, you can never leverage time. You can never make money unless you are working.
“Indentured time is time you spend earning a living. It is the opposite of free time.”
Make your hours count. Everything adds up at the end of the day.
“Fastlaners are frugal with time, while Slowlaners are frugal with money. Sidewalkers and Slowlaners use money as the sole criterion indecision-making: Which job pays the most? Where is the cheapest item?”
Change You Oil
Demarco compares education to oil. A car that goes too long without oil will not run smoothly. Change your oil, continue your self-education at all times for the smoothest possible ride. Never waste your time. Read at work, on the toilet, while waiting, exercising, or commuting. Every minute is a chance for you to learn more, whether through reading or listening.
The CENTS Framework
Control, Entry, Need, Time, Scale.
The best business opportunities satisfy all of the above.
- Control: How much control you have over your revenue streams. The more the better.
- Entry: How hard is it to enter your industry? The more difficult, the better.
- Need: Are you satisfying a market need? The more powerful the need, the better.
- Time: How much money you can make when you’re away? The more the better.
- Scale: How easy is it to distribute your product to more people? The more the better.
Just do it Better
If someone is doing your idea, so what? Just do it better.
- Search engines existed before Google
- Coffee existed before Starbucks
- Department stores existed before Wal-Mart
- DVD rental stores existed before Netflix
Marketing Advice
5 ways to get above the noise.
- Polarize
- Arouse emotions
- Be risqué
- Encourage interaction and
- Be unconventional
When selling to people, remember that people are fundamentally selfish. They don’t care about you or your dreams. They want to know how they are going to benefit. Your marketing message shouldn’t emphasize your product features, it should tell them what’s in it for them.
Identify who you are selling to. If you don’t know who that is, you will never be able to solve the right problems. “Once you identify your buyer, ask: What do they want? What do they fear? What problem do they need solved? Or do they just want to “feel” something?”
Lowering your price isn’t always a smart strategy. Price conveys value, and if you sell something for too cheap – chances are, people are going to think it’s cheap.
Monogamy over Polygamy
“A scattered focus leads to scattered results. Instead of one business that thrives, the polygamist opportunist has 20 businesses that suck.”
Don’t try to multi-task. You will never build strong enough foundations that way. Instead, focus your energy on one business, and that way, you build up momentum, and accelerate wealth.
Evaluation
- Durability (I Will Read This Again): 8/10
- Originality (This Taught Me Something New): 9/10
- Experience (This Was Enjoyable to Read): 8/10
- Efficiency (This Was Concise): 8/10
- Shareability (I Will Recommend This Book to My Friends): 8/10
UW Score: 82/100
Some chapters are fantastic, they make bold points with brevity and wit, but that standard of quality is not retained throughout the entire book. Some of the chapters take too long to make simple points, and miss the mark with weak arguments, and pointless tangents.This is one of my favorite business books though. Demarco tells it like it is. He approaches his topics with brevity and honesty. He will show you how to think about money differently and makes a solid case for starting up. But make no mistake, this isn’t a get rich quick book (despite the title). Demarco goes to great lengths to show you how difficult it is to become a successful entrepreneur. But it’s worth it, and beats the alternatives.
If you’re an entrepreneur and you want a quick guide to know what to think about before launching you business, check out The Myth of Entrepreneurship.