Cure your blindness and learn to see -- The results you get today don't come from today's work, they came from the work you did 1-3 years ago!
Most people fail to see long-term cause and effect relationships...
They're shortsighted and they only think in timeframes of today, this week and this month.
If they don't see rewards from the actions they take immediately, they give up or find a new shiny object and the same pattern repeats itself again.
It's a vicious cycle like a snake eating its tail.
If you take an action today, the true reward of that action will occur 1-2 years from now, not today. Most people are blind to this.
If you want to succeed in life and business you need to understand cause and effect timeframes so that you can think clearly and execute on the power law activities that truly move the needle.
This video shows you how to do that!
Here's what we cover:
1. Why this month has been a record month for my company and why the results came from work we did 1-2 years ago, not today.
2. Why most people are blind to long term cause/effect relationships and make poor decisions because of it.
3. Why you should focus on the things that produce results in the future instead of results today and how this is the polar opposite to what most people do in the world today.
4. How your minds optimization algorithm works and why its responsible for the rapid evolution of the human race.
5. Why Einstein said: “Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't ... pays it.”
6. Why moving slow is the best way to move fast -- Why small actions taken consistently over a long period of time produce exponential results.
7. Why sometimes you have to move backwards in the short-term to move forwards over the long-term and how I sacrificed my well paying job and lifestyle for 1-year so that I could live the next 80 years of my life well.
8. How to develop "Hyper Awareness" where you can see patterns in chaos and connect the dots between causes and effects. (This is powerful).
9. DOWNLOAD: A powerful reminder to download, print out and pin up on your wall so that you can remember to make smart decisions.
Hey what's going on everyone, it's Sam Ovens here and today I want to talk to you about cause and effect time frames. And I want to explain why, and this is something that most entrepreneurs don't understand. Actually, forget that. This is something most human beings don't understand. And that is that today's results don't come from today's work and today's actions, and most people fail to understand this, and it causes them a lot of anguish, pain, suffering, and everything because they just don't understand life.
It can really be described, and explained, with this diagram I'm holding up here. Here we've got memory then effect, and here we have time. And let me explain it, it's real simple. The things we do immediately, right now; the actions we take, the work we do today, we have very good memory of that. You know, memory is high, but then tomorrow our memory of what we did yesterday is a bit less, and then the next day our memory's a bit less and over time memory fade, and it pretty much fades away.
But what doesn't happen, is the actions we take today, while we have good memory of them, the results that we get from these actions that we take today, actually come later on in the future. We might get a very small result today, but the big results we're going to get from today's work, is going to come months or years from now. And most people don't understand this, and it's a tricky one because as time goes on our memory fades. So by the time we get the fix of the actions that we took years ago, we have forgotten what actions we took, and we've forgotten how these effects came to be.
We forgot that we planted these seeds and then when they come to harvest, we're like oh this must have been from what I did today or last week or something like that, and it causes a lot of confusion, and it really wreaks havoc with pretty much every human being that I see. And especially in the entrepreneurship space, because here's what happens.
An entrepreneur starts out in business, and they're like, "All right, I'm going to start this business, and I'm going to make some money, and I'm going to get rich and all of this." And so here today they start taking action, they may start reading some books. They might join a course, or they might start talking to other people. They might start trying to pitch their ideas and trying to make sales, and all of that. And they've got very good memory of what's going on right now, and what happens though is that they don't get that much results immediately. And that's because results take time to really come to fruition, from the time we take the action.
What they do is they get disheartened because they do some work today, and they can remember it very well, but they don't really get that much results today. So they're like, "Oh, what I'm doing, must not be working." Because I can remember exactly what I did, and I can remember the results that I got, and therefore, cause and effect. I know the cause. I saw the effect, which wasn't that much, therefore what I'm doing isn't working, so I should give up and try something else.
And so they keep jumping around, jumping around, jumping around, jumping around, and they never escape this. It's like a snake eating its own tail, because no matter what you do in the short term, no matter what action you take, you're not going to see massive results because results, effects, take time to accrue. And let me make this really, really clear for you.
In my business, Consulting.com, this month May 2018 we had our record month. We just, it's May 31st right now, and we've already made more money this month than we have any other month of all time, ever, and not just revenue but profit too, on cash collected, everything. We just smashed it this month, and a lot of people might think; we must've worked really hard this month, and we must've done some really good work this month, or what were we doing this month that made the difference? I even catch some people in my company, my staff they make this mistake too they're like, "Whatever we're doing right now it must be working really well."
But here's the thing, I know that the results that we got this May came from work that we did one to two years ago. What we're seeing now is we're seeing things, we're seeing the seeds that we planted two years ago come to fruition now. So the results we're getting this month, we've made over two million dollars this month, and more than half of that has been profit, which is huge. A lot of us we look at it and we're like, "What did we do this month that was really big and that's caused this?" But it came from work we did a long time ago. And let me tell you exactly the work that I did.
It's almost two years ago now, I decided to hire a team, and because it was just me awhile ago, about two years ago, so I hired a team and now we have 50 people working for Consulting.com. Not only that, I opened up an office. One in Dublin, in Ireland, and then one over here, and then in New York. And we created a culture, and a team, and then we improved our customer support systems. And then most, one of the biggest causes of this, is that I totally rebuilt our product. I went back painstakingly through our product and I made it better and better and better, and I left no stone unturned in that thing, so that it would just deliver insane value to the customers.
Now this was hard work to do, because when I was building the product, I remember one and a half years ago when I was slaving away at this thing. I work like 15 hours a day, six days a week, for a long time to build this product. And when I was building it, I remember that I didn't get to see sales. I didn't get to see money flying in or I didn't get to see customers saying, "This is the best course in the world, well this is course has changed my life." I didn't get to see those things when I was doing the work and grinding away at making this product.
But I knew, I had been in the game for long enough, and I developed enough awareness and self discipline to know that Sam, the results that you're going to get from making the product better today, they're not going to come today. They're probably not going to come even this year, but you're going to see these results in the future. You're going to see them in one year. You're going to see them in two years, and then the customers are going to get more results. That's going to mean more testimonials, more word of mouth, more people hearing about the program and enrolling in it. It's going to mean better marketing. It's going to mean better everything, but you need to stay disciplined and do the work now, even though you're not going to see the rewards that you get.
I'll be honest with you, it was hard. Sometimes, well as human beings, we're used to really fast feedback. We do a post on Instagram or something and bam, within like 10 seconds we get feedback. We get likes. We get comments, or we might say an idea to a friend or a colleague, or to our husband or wife, and they tell us immediately with their facial expressions and they speak back to us, and they give us feedback.
As human beings we optimize, and we optimize based on feedback, feedback from other people and feedback from different mechanisms. Sometimes we look at how much money did we make from doing this thing, or how many likes did we get? How many comments? What did people think of that? Did people get results from it? And what we do is we take an action, and then we seek feedback, and then when we get the feedback we're able to go action, reaction, and do a correlation there and be like, "Okay this thing worked or this thing didn't work."
That is the algorithm that we have in our brain. It's how the human race has evolved so rapidly, because we are able to think out in the future of what we want, then hypothesize and action that we can take that is probable to get us to that place, and then we take the action, then we seek feedback and then we do it again, or we iterate, change it, or we abort and try something else.
That's what we do, but most humans haven't evolved to think long term. This is huge. Honestly if you'd just change this one thing in your business, if you change this one thing in your life. It will change everything. Seriously. This is one of the most powerful things that you could possibly learn and understand in life.
The actions that you take today, you're not going to see them, their full reward, until years from today. Einstein, he said, "The eighth wonder of the world is compound interest." And Warren Buffet has built his fortune on compound interest too, and pretty much every smart billionaire has used the law of compounding to get to where they are in life.
What it is, is that small actions taken over a long period of time produce insane results. I'm sure you've seen the compound interest calculations where all you have to do is save a small amount of money each day, and it looks like nothing each day. You're like, "Oh, you mean I'm saving $10 a day?" So on that day, here's this blue thing is the action, this red thing is the reaction, or cause and effect. And then along here we have time. If you just save $10 a day and you're doing that, and right now today you're like, "This sucks. I'm not getting rich. I don't have a Ferrari, and I'm not really, my life isn't changing. So this saving thing sucks. The saving thing doesn't work."
That's what most people think, because they're short sighted. They can't think long term. They don't understand things. They stop saving, but those disciplined people who keep saving, just $10 a day, it turns into millions of dollars over time. That's because of the law of compounding, but what happens is as our memory fades here, the effect starts to kick later on.
In business, you always want to be thinking, "What seeds can we plant today that in one year, two years, three years, are going to harvest and really help us in business?" You want to think out into the future, where do you want to go? And then you want to reverse engineer that down to the actions that you need to take to get to where you want to go. Then you want to execute those actions, day to day, and don't get disheartened if you don't see the rewards immediately, because the rewards will come but it takes awhile for them to kick in.
I spent probably six entire months, working 12-15 hours a day, six days a week, building the latest version of our product, which is called Consulting Accelerator. And Consulting Accelerator is a six week online course, which shows people how to start their own consulting business from scratch, get clients, make money, and do all of that. It's an end to end solution.
Now, when I went to rebuild that product, well actually let's rewind a little bit there. So I grew my business up and it was making quite a lot of money, it was making like a million dollars a month pretty consistently, with the product in the state that it was and just with me running the business. So if I was short sighted I would've thought, "Oh, well let's just keep going the way we're going, or let's try and scale it and sell more of it." And while that might have made me more money in that short term, in the long term it would have absolutely wiped me out.
I can tell you that if I still had the same product that I had two years ago today, I wouldn't have a profitable business, because the world's changed. Online marketing's moved, the market's moved. The standards have changed. Everything in the world is constantly changing, it's constantly evolving and if you don't evolve with it, you get left behind.
There's a saying that I love and it's that if you're fighting change, most of the time, you're fighting the future. And people who fight the future, they don't win.
You want to think about this, what things in your business are working well now but you're taking for granted? I can tell you that most of the time this is your product, this is your service, and this is the main thing. That is the core. That's the nexus of your business, and that's the main thing. It's the most important thing there is.
What most business's tend to do is, they get a product or service that's just good enough and then they put all their efforts into marketing, or sales, or things like that, and they try to scale the business up that way. It works in the short term, and they scale up, but in the long term they end up out of business and not able to turn a profit.
What's going on here, is it's just short sightedness. They're looking for short term causes and effects. They're looking for things they can execute today that they're going to see a result in today, or this week, or this month. This is how most businesses run. They might invest some money this month and see what they make this month, and then they might do some work this month and see what the result is this month. And actually, I'm being too nice to people. Most people don't wait anywhere near a month.
You think about most millennial kids these days, on their Instagram and their Snapchat. Dude, if they did a post and it took them a month to get feedback, there is no way that they would do it. They need that feedback, bam, instantaneous. Otherwise, they're too ADD and too neurotic to even bother doing it. They expect instant gratification.
What this means is, that once people become hooked on instant gratification, and living in these day tight things here, they never think long term. And they end up getting good results here, but they end up getting taken out in the future.
Really good businesses, they think long term, and they think what seeds can we plant today that are going to harvest and come to fruition later on, and give us the competitive advantage, and get us to where we want to go?
I really learned this a lot when I read books, on the people who have really made it in the world. So one thing I like to do, is read books from, not just anybody, I especially don't like reading books from academics, because they haven't done it. It's like, who do you want to learn ... If you had the option, let's say you wanted to learn how to ride a bicycle. And then let's say there was the professor of Oxford and Harvard and Stanford University with the worlds leading theory on riding bicycles, would you learn from him? Or would you learn from just some dude, who's like 16, just riding his bike around on the street doing some tricks? You would learn from the guy riding the bike any day of the week.
I hate learning from academics, because they are explaining in great detail what they think is going on, but they don't really know because they haven't done it. I like to learn from people who have done it, not just people who have done it, but people who have done it the best in the world.
Two of my favorite entrepreneurs to learn, or there's three, of my favorite entrepreneurs to learn from. There is, probably number one, Jeff Bezos. He is an absolute master. Number two would probably be Sam Walton, from Walmart, and number three probably Ray Dalio, Warren Buffet. Those four people there, they're kings. They really know how things work.
And when I studied these guys, I found out that these are long term thinkers. Every single one of them. They weren't so worried about being famous and rich in the short term, but in the long term they absolutely kicked ass.
So with Amazon, today we look at it and we're like, "Oh wow, Amazon and Jeff Bezos and this business just exploded out of nowhere." And even Jeff Bezos, he says it himself. He says that people will come up to him and they say, "Oh Jeff, you had an amazing quarter this year at Amazon." Because they read the financial reports, "Oh Jeff, you had an amazing quarter. Whatever you guys are doing there at Amazon this quarter, you must be doing like the right thing." And Jeff Bezos' always like, he doesn't say it back to them, because he doesn't want to be rude or anything, but he thinks in his head, "The results that we're getting now, they're the results of work we did three years ago. Whatever results we're getting today, we did the work for that three years or more before."
This is the thing that fail to understand. If you're not getting awesome results right now, it's not because of what you did right now. It's not because of what you did last week. It's because of what you did over the last few years. A lot of people they don't understand this, even with books.
Sam Ovens: You might read a book today, and you might learn some great stuff, but then you look in your bank account and you don't have a lot of money. And you're like, "Oh, reading that book didn't work. Reading that book was useless, didn't help me make any money." But, I can tell you that over time those books are going to make you a fortune.
I remember when I was first getting started in business. I used to read a lot. I used to do a lot of courses. I was like a sponge. I remember thinking, "Man, I've learned a lot of stuff. There's a lot of stuff in my head, but I'm poor. I'm not rich, so maybe this learning stuff has been a waste of time." And then, over time, things that I learned early on I got to apply and they made a huge different, and they got me results.
So thinking back over it now, every single book I've ever read has made me money, and it's made me a profit, because I've learned things from it that I've got to apply later on. And when I applied those things later on, I got the reward later on.
Sam Ovens: Life isn't how most people look at it. Most people just look at right now, immediately, or they might look at their job and they're just like ... This is the reason why I think most people can't leave 9-5 employment and they can't quit their job and they can't start their own business, because they're too short sighted.
And what they do, is they look at their life right now and they're like, "Oh, I'm paying for this lease on this car. I'm paying for this apartment, rent, and I'm able to go to these restaurants and have fun with my friends, and I'm making this much money. Life is good, but man if I quit and start my own business then I'm going to go back to the start. I'm going to be poor and I won't be able to do all of those different things." And they're like, "Oh, I can't do that. So I must stay in my job." That's short term thinking.
That's thinking that you're only going to be ... I can tell you now that if you leave a good paying job, probably the first year out of it, you'll probably make a little bit less money. But, in the long term, you'll make a shit load more. You've got to think long term, instead of short. Stop being so short sighted.
I remember when I quit my corporate job, back in New Zealand. I moved back home with my parents, into their garage. I sold my car. I sold everything I had, and I pumped all of that money into my business. And I was living in a garage in New Zealand, and I even canceled my gym membership. I canceled my phone subscription and went back to prepaid. I cut everything, and I no longer went out with my friends and I no longer went out to restaurants and things like that, and I used to make ham sandwiches at home. And my life went backwards for a little bit, and it was probably about a year. Most people aren't willing to do that, but man what a difference it's made.
Because by living just tight, and being a bit poorer for one year, it got me to the point now where we're making more than 20 million dollars a year. If I thought, well back here I shouldn't quit my job at Vodafone because I'm making good money here, but by quitting I was able to make more than four times the CEO. There's no way in hell I would've got to the CEO position in that amount of time if I'd stayed in that job, and even if I did there's no way that it would've paid this much. That's what happens when you have a long term vision.
Like I said, this month in our business we've had our record month, and it's not from what we did today. It's from planting seeds and doing a lot of hard work one year ago, two years ago. And I can tell you that the hard work I'm doing today, and the hard work that my team's doing today, we're not going to see the full kick of that until like 2-3 years from now. You have to get this driven into your brain, because when you start to think like this you start to make better decisions.
You start to be more methodical with what you do, and you start to become less of a frantic, spastic, opportunist, just jumping around shiny objects trying to make a quick buck, and trying to run this Facebook ads, then Pinterest ads, then a Twitter ad and then a, god knows what else crap. Trying all of these different things, just trying to get some quick money within like one week to a month, trying all of these courses and just pinging around like a crazy psychopath trying to get rewards. Trust me, it's never going to happen.
You're not ever going to get an amazing instant reward. That's not how it works. Great rewards in life, come from hard work sustained over a long period of time, and they come over the long term.
Sam Ovens: How did I grow my business to this point? No miracle efforts. It's just been daily actions, every single day. Chipping away at it, putting in the work, and over time it's compounded and blown up to this point.
If you're an entrepreneur or a business owner, or if you want to start your own business, then I can't encourage you enough to print this thing out. What I'll actually do is beneath this video, I'll put a PDF of this diagram here. And what I want you to do, is right now just pause this video, go down, grab that link to this PDF, download it, print it out, and put it on your wall. And understand that the cause and effect relationships, they happen over the long term. And the biggest mistake most people make is as memory fades over time, and effect gets exponential over time, we can't remember what cause created that effect.
That's a dangerous scenario to be in. You don't want to forget, or you don't want to not understand and not see the causes that created the effects. You need to be able to connect the dots, and you need to have a very clear head, and you need to have very clear thinking. Because all life in business really is, is trying to just look through all of the noise and all of the chaos of life, and you're trying to spot patterns, and you're trying to spot cause and effect relationships so that you can figure out what actions create different reactions. And you can sift through all the variables and all of the noise, and start just doing more of the things that work and less of the things that don't. You're just more clear headed that way.
You know what cause creates what effect, and you know roughly what time horizon it takes to realize that effect. You don't get caught by fads, or shiny objects, or things like that because you can think for yourself and you can see for yourself, and you have that hyper awareness that's needed to really succeed in life in business.
Because when you can see properly, and what I mean by this is not your eyesight but when you can really see, and I can tell when I can meet somebody that can see, because they can connect the dots. They can see what causes create what effects, and it's often not the hypey buzz word things that other people are talking about. Most of the time, the cause and effect relationships come from things that no body is talking about. And the things that everyone's talking about, is noise and distractions that don't get any kind of reward. And you don't want to fall for those mistakes, you want to be able to see.
Instead of being blind, you want to see. And when you can start to connect these dots, you'll be able to start seeing properly.
Sam Ovens: Now, if you liked this video, what I want you to do right now is just click that like button and also if you want more videos like this, subscribe to my YouTube channel, there should be a button there. Click that. Subscribe. I release a video like this every single week, and I also release about five customer interviews every week as well. I release Q and A recordings and things like that.
So go ahead and subscribe right now, click that like button, and then let me know what you think in the comments. Let me know what you thought of this video. If you've got any questions about it, let me know. I'm going to be checking all of those and replying to them myself personally.
Once again, I'm going to include the PDF for this, available for download beneath this video, just find that link and click it, download it, print it, put it on your wall, and don't forget this. Because when you start planting seeds today, they're going to harvest and get you where you want to go. You're going to start winning and you're going to start crushing the competition and getting what you want, in both business and in life.
So that's it for this video. Thanks for watching and I look forward to seeing you in the next one soon.