6 Levels of Making Money Everyone Must Master

The gist

1. W2 employment is the lowest risk model, but employees average only 3.9 years tenure, while contractors turn over five times faster.
2. Outcome-based pay like rev-shares and profit-shares ties your income to results rather than hours, aligning your incentives with the client's.
3. Risk arbitrage, the model behind insurance and warranties, lets you collect recurring revenue simply for assuming financial risk someone else wants to offload.
4. Hormozi says the most successful entrepreneurs appear to take on more risk than they actually do, causing the market to overpay them.