How to 10x Your Income - The 4 Ladders of Wealth

How to 10x Your Income - The 4 Ladders of Wealth

Introduction (00:00:00)

  • The video discusses how to achieve financial freedom through the concept of the "ladders of wealth creation".
  • The ladders of wealth creation is a framework developed by Nathan Barry that categorizes wealth-building strategies into four levels, with ladder one representing the lowest income level and ladder four representing the highest.
  • Ladder one involves trading time for money, such as through employment.
  • Ladder two involves selling your expertise through freelancing, consulting, or coaching.
  • Ladder three involves building and selling products, such as physical products, digital products, or online courses.
  • Ladder four involves building and selling businesses, such as startups, franchises, or real estate investments.
  • Many people attempt to jump from ladder one directly to ladder four, which can be challenging due to the significant skill gap between the two levels.
  • Nathan Barry's framework highlights the specific skills required at each ladder to successfully climb the ladder of wealth creation.

Ladder 1: Time For Money (00:01:01)

  • Ladder one involves trading time for money and has limited potential for wealth creation. It includes hourly work and salaried work.
  • Income growth in ladder one typically occurs through raises and promotions, resulting in small step changes in income over time.
  • There is a cap on how much one can earn when trading time for money, regardless of the job or profession.
  • Ladder two involves using assets to generate income, such as real estate, stocks, or a business.
  • Tim Ferriss's book "The 4-Hour Work Week" inspired the author to explore alternative ways of making money.

Ladder 2: Your Own Service Business (00:07:01)

  • Discover the ability to make money online by offering services.
  • Learn basic online skills like coding and website building.
  • Advertise services on freelance platforms like Fiverr, Upwork, and People per Hour.
  • Transition from trading time for money to a service business.
  • Learn new skills such as finding clients, creating proposals, and pricing services.
  • Progress to project-based work and charge a fixed fee for each project.
  • Hire a team to deliver the work and scale the business.
  • Learn business management skills like accounting, finance, and hiring employees.
  • Reach a limit in growth due to the bespoke nature of services offered to each client.


  • Ladder 2 offers more potential for income growth compared to Ladder 1, especially with a team.
  • However, there is a limit to how far one can climb on Ladder 2 due to the challenges of scaling a business that provides highly customized services.

Ladder 3: Productized Services (00:10:09)

  • Ladder number three involves productized services, which are packaged and sold with a defined scope and price, allowing for easier scaling and hiring.
  • This shift eliminates the risk of scope expansion and operational complexity, crucial for wealth creation.
  • Skills needed include writing sales copy, designing sales pages, processing online payments, and building systems for repeatable quality delivery.
  • The income curve for productized services is linear, with no limit to the amount that can be sold.
  • Recurring productized services can be provided by employees, representing the final rung of ladder number three.
  • Building an audience is essential for driving leads and traffic to your business, increasing your chances of success.
  • Creating valuable content and engaging with followers are effective methods for growing your audience.

Ladder 4: Selling Products (00:14:17)

  • Selling products is the most lucrative way to generate income.
  • Unlike services, products (digital or physical) or owning the platform for transactions can lead to greater wealth.
  • Ladder 4 involves creating products that require upfront work but minimal effort in delivering them.
  • Examples of products include online courses, subscription software, and software as a service.
  • Marketplaces and social networks represent the highest rung of Ladder 4 but are challenging to build.
  • Climbing Ladder 4 requires significant effort, but it offers unlimited upside potential, especially in software.
  • Word-of-mouth effects and network value contribute to exponential income growth.

Final Thoughts (00:18:27)

  • Different ways to make money and skills needed are like a map to financial freedom.
  • Skipping steps is okay, but be aware of the skills missed by jumping ahead.
  • Surrounding yourself with content and community can help learn the skills needed for success.
  • More content is available now than ever before, making the journey to financial freedom easier.
  • People who have achieved financial freedom share their knowledge through books, podcasts, and videos.

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