The 4-Hour Workweek: Escape 9–5, Live Anywhere, and Join the New Rich - Expanded and Updated

by Timothy Ferriss

  Becoming a recognized expert isn’t difficult, so I want to remove that barrier now.

  I am not recommending pretending to be something you’re not. I can’t! “Expert” is nebulous media-speak and so overused as to be indefinable. In modern PR terms, proof of expertise in most fields is shown with group affiliations, client lists, writing credentials, and media mentions, not IQ points or Ph.D.s.

  Presenting the truth in the best light, but not fabricating it, is the name of the game.

  See you on CNN.

  Q&A: QUESTIONS AND ACTIONS

  For this hands-on chapter, the Q&A is simple. In fact, it’s more like a Q.

  The question is, “Did you read the chapter and follow the directions?” If not, do it! Instead of the usual Q&A, the end of this chapter and the following two will feature more extensive resources for taking the action steps described in detail in the text.

  COMFORT CHALLENGE

  Find Yoda (3 Days)

  Call at least one potential superstar mentor per day for three days. E-mail only after attempting a phone call. I recommend calling before 8:30 A.M. or after 6:00 P.M. to reduce run-ins with secretaries and other gatekeepers. Have a single question in mind, one that you have researched but have been unable to answer yourself. Shoot for “A” players—CEOs, ultrasuccessful entrepreneurs, famous authors, etc.—and don’t aim low to make it less frightening. Use www.contactanycelebrity.com if need be, and base your script on the following.

  Unknown answerer: This is Acme Inc. [or “the office of Mentor X”].

  You: Hi, this is Tim Ferriss calling for John Grisham, please.31

  Answerer: May I ask what this is regarding?

  You: Sure. I know this might sound a bit odd,32 but I’m a first-time author and just read his interview in Time Out New York.33 I’m a longtime34 fan and have finally built up the courage to35 call him for one specific piece of advice. It wouldn’t take more than two minutes of his time. Is there any way you can help me get through to him?36I really, really appreciate whatever you can do.

  Answerer: Hmmm … Just a second. Let me see if he’s available. [two minutes later] Here you go. Good luck. [rings to another line]

  John Grisham: John Grisham here.

  You: Hi, Mr. Grisham. My name is Tim Ferriss. I know this might sound a bit odd, but I’m a first-time author and a longtime fan. I just read your interview in Time Out New York and finally built up the courage to call. I have wanted to ask you for a specific piece of advice for a long time, and it shouldn’t take more than two minutes of your time. May I?37

  John Grisham: Uh … OK. Go ahead. I have to be on a call in a few minutes.

  You (at the very end of the call): Thank you so much for being so generous with your time. If I have the occasional tough question—very occasional—is there any chance I could keep in touch via e-mail?38

  LIFESTYLE DESIGN IN ACTION

  OVER THE MOON

  My 13-year-old daughter would like to be an astronaut when she grows up. Last year she had an extreme challenge to deal with. The phrase from Apollo 13 “Failure is not an option” sort of became our motto. I got the idea of contacting the commander of Apollo 13, Jim Lovell. It didn’t take much to find him and he sent her a wonderful letter about his ordeal just to get into the Apollo program, not to mention dealing with a crippled spacecraft. His letter made a big difference to my daughter. A couple months later, we were able to take things a little further by getting her VIP access to a shuttle launch.

  —ROB

  TOOLS AND TRICKS

  Confirming Sufficient Market Size

  Compete (www.compete.com) and

  Quantcast (www.quantcast.com)

  Find the number of monthly visitors for most websites, in addition to the search terms that generate the most traffic for them.

  Writer’s Market (www.writersmarket.com)

  Here you’ll find a listing of thousands of specialty and niche magazines, including circulation and subscription numbers. I prefer the print version.

  Spyfu (www.spyfu.com)

  Download competitors’ online advertising spending, keywords, and ad-word details. Consistent and repeat spending generally indicates successful advertising ROI.

  Standard Rate and Data Services (www.srds.com)

  Check out this resource for annual listings of magazine and company customer mailing lists available for rent. If you’re considering creating a how-to video for duck hunting, check out the size of customer lists from hunting gun manufacturers and related magazines first. Use the print version in libraries instead of paying for the somewhat confusing online access.

  Finding Products to Resell or Manufacturing

  Affiliate Networks: Clickbank (www.clickbank.com),

  Commission Junction (www.cj.com), Amazon Associates (www.amazon.com/associates)

  No inventory, no invoices. Experimenting with products and categories through affiliate networks such as Clickbank and Commission Junction, which pay you 10–75% of each purchase, is a fast method for doing a proof-of-concept using similar products. It’s often worth setting up accounts at both just to observe how bestselling items are being sold and promoted.

  Amazon Associates averages 7–10% commissions, but bestselling books are excellent for testing target markets for more elaborate informational products. For all of the above: Do not get into bidding wars against other affiliates using expensive general keywords or overexposed brand names. Go niche or go broke.

  Alibaba (www.alibaba.com)

  Based in China, Alibaba is the world’s largest business-to-business marketplace. From MP3 players for $9 each to red wine for $2 per bottle, this site is the source. If someone here doesn’t make it, it probably can’t be made.

  Worldwide Brands (www.worldwidebrands.com)

  Offers an extensive how-to guide for finding manufacturers willing to dropship product to your customers, which allows you to avoid pre-purchasing inventory. This is where Amazon and eBay power users find not just drop shippers, but also wholesalers and liquidators. Shopster (www.shopster.com) is also a popular option, with more than 1,000,000 dropship products to choose from.

  Thomas’s Register of Manufacturers (www.thomasnet.com) (800–699–9822)

  Searchable database of contract manufacturers for every conceivable product, from underwear and food products to airplane parts.

  Electronics, DVDs, Books (www.ingrambook.com, www.techdata.com)

  Housewares and Hardware (www.housewares.org, www.nationalhardwareshow.com) (847–292–4200)

  For these product categories and related talent (on-screen demonstrations), also consider attending local or state fairs.

  Consumables and Vitamin Products (www.expoeast.com, expowest.com)

  Finding Public Domain Information to Repurpose

  Be sure to speak with an intellectual property attorney before using apparent public domain material. If someone modifies 20% of a public domain work (through abridging and footnotes, for example), their “new” complete work can be copyrighted. Using it without permission would then be a punishable infringement. The details can get confusing. Do the beginning research yourself, but get a pro to look over your findings before moving ahead with product development.

  Project Gutenberg (www.gutenberg.org)

  Project Gutenberg is a digital library of more than 15,000 pieces of literature considered to be in the public domain.

  LibriVox (www.librivox.org)

  LibriVox is a collection of audiobooks from the public domain that are available for free download.

  Recording Seminars or Phone Interviews with Experts for CD Downloadable Products

  HotRecorder (www.hotrecorder.com) (PC), Call Recorder (http://ecamm.com/mac/callrecorder/) (Mac)

  Use these programs to record any inbound or outbound phone call via computer using Skype (www.skype.com) and other VoIP programs.

  NoCost Conference (www.nocostconference.com)

  Provides a free 800-number conference line, as well as free recording and
file retrieval. Normal phones can be used for call-in, so no computer or web connection is required for participants. If you’ll have a Q&A, I suggest soliciting attendee questions beforehand to avoid issues with muting/ unmuting of lines.

  Jing Project (www.jingproject.com) and DimDim (www.dimdim.com)

  If you’d like to record the actions on your screen for video tutorials, both of these free programs will get the job done. If you need advanced editing features, Jing’s big brother Camtasia is the industry standard (www.camtasia.com).

  Licensing Ideas to Others for Royalties

  InventRight (www.inventright.com) (800–701–7993)

  Stephen Key is the most consistently successful inventor I’ve ever met, with millions in royalties from companies like Disney, Nestlé, and Coca-Cola. He is not high-tech but specializes in creating simple products, or improving on existing products, and then licensing (renting) his ideas to large corporations. He comes up with the idea, files a provisional patent for less than $200, and then lets another company do the work while he collects checks. This site introduces his fail-proof process for doing the same. His techniques for cold-calling alone are invaluable. Highly recommended.

  Guthy-Renker Corporation (www.guthyrenker.com) (760–773–9022) GRC is the 800-pound infomercial gorilla. It brings in more than $1.3 billion per year in sales with mega-hits like Tony Robbins, Proactiv Solution, and Winsor Pilates. Don’t expect more than a 2–4% royalty if you make the cut, but the numbers are huge enough to make it worth a look. Submit your product online.

  Searching Patents for Unexploited Ideas to Turn into Products

  United States Patent and Trademark Office (www.uspto.gov) (800–786–9199)

  Licensable Technologies Developed at Universities (www.autm.net; see “view all listings” under “Technology Transfer Offices”)

  Inventors Groups and Associations (call and ask if members have anything to license) (www.uiausa.org/Resources/InventorGroups.htm

  Becoming an Expert

  Prof Net via PR Leads (www.prleads.com) and HARO (www.helpareporterout.com)

  Receive daily leads from journalists and TV and radio producers looking for experts to cite and interview for media ranging from local outlets to CNN and the New York Times. Stop swimming upstream and start responding to stories people are already working on. HARO offers select leads at no cost, and you can mention my name with PR Leads to get two months for the price of one.

  PRWeb Press Releases (www.prwebdirect.com) The press release is dead for most purposes, but using this service has some serious search-engine benefits, such as appearing at the top of related Google News and Yahoo! News results.

  ExpertClick (www.expertclick.com)

  This is another secret of the PR pros. Put up an expert profile for media to see, receive an up-to-date database of top media contacts, and send free press releases to 12,000 journalists, all on one website that gets more than 5 million hits per month. This is how I got on NBC and ended up developing a prime-time TV show. It works. Mention my name on the phone, or use “Tim Ferriss $100” online, to get a $100 discount.

  LIFESTYLE DESIGN IN ACTION

  Bon Jour Tim,

  I was in Barnes & Noble at the help desk this past Saturday, April 25, waiting for an employee to get a book for me (Tropic of Cancer if you must know). While I was waiting, I noticed a copy of 4-Hour Workweek on the counter that someone else had ordered. Not one to be shy, I reached over the counter and started reading their copy. As you might guess, I had the employee go back and get me my own copy. Haven’t finished Tropic of Cancer but finished your book …

  … On Monday I got a yes when I asked my boss to work two days remotely per week. I start next week.

  On Monday I also booked the most stunning apartment in Paris for the month of September, at a cost of half of the rent I pay in Southern California. I plan to increase my remote time now through August so that September will be an easy ask to leave for remote work. If the answer happens to be no (which I now doubt), I will be prepared to quit my job.

  Now at work on my Income Autopilot project.

  Tim: amazing. My life has changed in three days. (Plus, your book was funny as hell.) Thank you!!! —CINDY FRANKEY

  21. There are a few limited exceptions, such as online membership sites that don’t require content generation, but as a general rule, products require much less maintenance and will get you to your TMI faster.

  22. Muses will provide the time and financial freedom to realize your dreamlines in record time, after which one can (and often does) start additional companies to change the world or sell.

  23. Distributors are sometimes also referred to as “wholesalers,” depending on the industry.

  24. It is illegal to control how much someone sells your product for, but you can dictate how much they advertise it for. This is done by including a Minimum Advertised Pricing (MAP) policy in your General Terms and Conditions (GTC), which are agreed to automatically when a written wholesale order is placed. Sample GTC and order forms are available at www.fourhourblog.com.

  25. The Wall Street Journal, July 18, 2005 (http://www.technologyinvestor.com/login/2004/Jul18–05.php).

  26. This was a new product category that I created to eliminate and preempt the competition. Strive to be the largest, best, or first in a precise category. I prefer being first.

  27. If you decide to resell someone else’s higher-end products like Doug, especially with drop-shipping, the risk is lower and smaller margins can suffice.

  28. “Back-end” products are products sold to customers once the sale of a primary product has been made. iPod covers and car GPS systems are two examples. These products can have lower margins, because there is no advertising cost to acquire the customer.

  29. “Cross-selling” is selling a related product to a customer while they’re still on the phone or in an online shopping cart after the sale of a primary product has been made. For a full marketing and direct response (DR) glossary, visit www.fourhourblog.com.

  30. This also refers to owners of copyrights or trademarks.

  31. Said casually and with confidence, this alone will get you through surprisingly often. “I’d like to speak with Mr./Ms. X, please” is a dead giveaway that you don’t know them. If you want to up the chances of getting though but risk looking foolish if they call the bluff, ask for the target mentor by first name only.

  32. I use this type of lead-in whenever making off-the-wall requests. It softens it and makes the person curious enough to listen before spitting out an automatic “no.”

  33. This answers the questions they’ll have in their head: “Who are you and why are you calling now?” I like to be a “first-time” something to play the sympathy card, and I find a recent media feature online to cite as the trigger for calling.

  34. I call people I’m familiar with. If you can’t call yourself a longtime fan, tell them that you have followed the mentor’s career or business exploits for a certain number of years.

  35. Don’t pretend to be strong. Make it clear you’re nervous and they’ll lower their guard. I often do this even if I’m not nervous.

  36. The wording here is critical. Ask them to “help” you do something.

  37. Just rework the gatekeeper paragraph for this, and don’t dillydally—get to the point quickly and ask for permission to pull the trigger.

  38. End the conversation by opening the door for future contact. Start with e-mail and let the mentoring relationship develop from there.

  Income Autopilot II

  TESTING THE MUSE

  Many of these theories have been killed off only when some decisive experiment exposed their incorrectness…. Thus the yeoman work in any science … is done by the experimentalist, who must keep the theoreticians honest.

  —MICHIO KAKU, theoretical physicist and cocreator of String Field Theory, Hyperspace

  Fewer than 5% of the 195,000 books published each year sell more than 5,000 copies. Teams of publishers and editors with d
ecades of combined experience fail more times than not. The founder of Border’s Books lost $375 million of investor funding with WebVan,39 a nationwide grocery delivery service. The problem? No one wanted it.

  The moral is that intuition and experience are poor predictors of which products and businesses will be profitable. Focus groups are equally misleading. Ask ten people if they would buy your product. Then tell those who said “yes” that you have ten units in your car and ask them to buy. The initial positive responses, given by people who want to be liked and aim to please, become polite refusals as soon as real money is at stake.

  To get an accurate indicator of commercial viability, don’t ask people if they would buy—ask them to buy. The response to the second is the only one that matters. The approach of the NR reflects this.

  Step Three: Micro-Test Your Products

  Micro-testing involves using inexpensive advertisements to test consumer response to a product prior to manufacturing.40

  In the pre-Internet era, this was done using small classified ads in newspapers or magazines that led prospects to call a prerecorded sales message. Prospects would leave their contact information, and based on the number of callers or response to a follow-up sales letter, the product would be abandoned or manufactured.

  In the Internet era, there are better tools that are both cheaper and faster. We’ll test the product ideas from the last chapter on Google Adwords—the largest and most sophisticated Pay-Per-Click (PPC) engine—in five days for $500 or less. PPC here refers to the highlighted search results that are listed above and to the right of normal search results on Google. Advertisers pay to have these ads displayed when people search for a certain term related to the advertisers’ product, such as “cognitive supplement,” and are charged a small fee from $.05 to over $1 each time someone clicks through to their site. For a good introduction to Google Adwords and PPC, visit www.google.com/onlinebusiness. For expanded examples of the following PPC strategies, visit www.fourhourblog.com and search “PPC.”