How Much Ignorance Tax Are You Paying
The tax man is coming…
The statement hits like a ton of bricks. Picture you’re sitting in the audience at an event. The speaker on stage is giving a tremendous talk about business growth. Toward the end, he asks, “how much ignorance tax are you paying?” The crowd looks around. Partly confused and partly offended.
He asks someone in the crowd, “Sir, how much money do you make?”
The man replies, “I make $50,000 a year.”
The man on stage says, “That’s great. How much do you WANT to make?”
The man in the audience shrugs, “I want to make $1 million a year.”
The man on stage says, “That’s fantastic. You have been paying $950,000 a year in ignorance tax by NOT KNOWING how to make $1 million.”
Let that sink in for a moment.
And please, understand, ignorance is not intelligence. Ignorance literally means “lack of knowledge.”
Now that you know what ignorance tax is, how much are you paying?
Once you know about ignorance tax and how much it’s costing you, it’s hard to unsee it.
So what do you do about it?
Here’s how to consistently beat the Ignorance Tax
Step 1: Stop trying to reinvent the wheel
The wheel is already made, use it. It amazes us when we see a member of ours reading a book about customer retention. When we ask, “have you implemented everything we have on customer retention?” We typically hear “No.” Then why on Earth would you invest more TIME consuming more knowledge? If you have the knowledge available to you, implement. If you don’t, you’re prolonging and compounding the ignorance tax.
Step 2: Be brutally honest about your skillset
Here’s the litmus test. Do you know something well enough to teach it? Even better. Can you teach it well enough that someone else will get a good result? If you do, great, you can go to step 3. If not, invest any extra money developing that skill set.
How do you do that? You buy courses or hire a coach. We can hear it now, “well, what about a book? Can’t I just buy the book?” Sure. If you’re not really that committed to mastering the skillset and you want to give the least amount of effort to make yourself feel better…buy the book.
However, if you’re dedicated to mastering a skillset, you’ll buy a course or hire a coach.
Step 3: Learn adjacent skillsets:
Let’s use sales as an example. If you’re already a good salesperson you have a certain amount of value. Look at your commissions if you’re unsure of how much value you’ve got. Let’s say that your #1 strength is closing. What other skillsets would you need to increase your value and beat the ignorance tax? You could acquire the skill of mastering follow up. As they say, the fortune is in the follow-up. And after you master follow up? Managing a small team would beat the ignorance tax and increase your value.
Do you see where we’re going here? Even if you wanted to master just one thing, you can always increase your skillset. For example: If you just want to be a closer forever, increase your commission per sale. Or, increase the volume of sales. Or, increase the cost of products sold. However you decide to level up, it’s going to require you to learn adjacent skillsets.
Just like the IRS, the tax man is coming. The only question is whether or not you’re prepared for it. Ask yourself: How much ignorance tax are you paying? And then get after it by acquiring the skill set needed to level up.
What we’ve outlined is exactly how our CEO Alex Hormozi beats the ignorance tax. He’s invested close to $700,000 in courses and coaches. Those investments have helped him build a $50 million company. What’s the ROI on your investments? Let’s commit to never pay the ignorance tax again.