The 4-Hour Work Week

by Timothy Ferriss

People don't want to be millionaires — they want to experience what they believe only millions can buy.

Traveling the world and enjoying the best this planet has to offer.

Note: My story and why you need this book p. 8

I won't ask you to choose between enjoyment today or money later. I believe you can have both now. The goal is fun and profit.

Note: My story and why you need this book p. 9

D - deferrers
NR - New Rich

D: To work for yourself.

NR: To have others work for you.

D: To work when you want to.

NR: To prevent work for work's sake, and to do the minimum necessary for maximum effect ("minimum effective load").

D: To retire early or young.

NR: To distribute recovery periods and adventures (mini-retirements) throughout life on a regular basis and recognize that inactivity is not the goal. Doing that which excites you is.

Note: D is for Definition p. 20

Define your nightmare, the absolute worst that could happen if you did what you are considering. Would it be the end of your life? What would be the permanent impact if any, on a scale of 4-10?

What are you putting off out of fear? Usually, what we most fear doing is what we most need to do.

What we fear doing most is usually what we most need to do. As I have heard said, a person's success in life can usually be measured by the number of uncomfortable conversations he or she is willing to have. Resolve to do one thing every day that you fear.

What are you waiting for? Develop the most important habit of those who excel and enjoy doing so: action.

Note: D is for Definition p. 46

What we fear doing most is usually what we most need to do.

Note: D is for Definition p. 47

If you are insecure, guess what? The rest of the world is, too. Do not overestimate the competition and underestimate yourself. You are better than you think.

Note: D is for Definition p. 50

The fishing is best where the fewest go, and the collective insecurity of the world makes it easy for people to hit home runs while everyone else is aiming for base hits. There is just less competition for bigger goals.

Note: D is for Definition p. 51

Excitement is the more practical synonym for happiness, and it is precisely what you should strive to chase. It is the cure-all.

Note: D is for Definition p. 51

"I believe that success can be measured in the number of uncomfortable conversations you're willing to have.”

Note: D for Definition p. 55

"I do what I always do: find a personal e-mail if possible, often through their little-known personal blogs, send a two to three-paragraph e-mail which explains that I am familiar with their work, and ask one simple-to-answer but thought-provoking question in that e-mail related to their work or life philosophies. The goal is to start a dialogue so they take the time to answer future e-mails—not to ask for help.”

Note: D for Definition p. 55

What would you do if there were no way you could fail?

Note: D for Definition p. 57

Target Monthly Income
More generally: [Monthly Goals + (One-Time Goals / Total Months)] × 1.3 monthly expenses = TMis

Note: D for Definition p. 62

Effectiveness is doing the things that get you closer to your goals. Efficiency is performing a given task (whether important or not) in the most economical manner possible.

Note: D for Definition p. 69

The first decision I made is an excellent example of how dramatic and fast the ROI of this analytical fat-cutting can be: I stopped contacting 95% of my customers and fired 2%, leaving me with the top 3% of producers to profile and duplicate.

Out of more than 120 wholesale customers, a mere 5 were bringing in 95% of the revenue. I was spending 98% of my time chasing the remainder, as the aforementioned 5 ordered regularly without any follow-up calls.

Note: E is for Elimination p. 72

Since we have 8 hours to fill, we fill 8 hours. If we had 15, we would fill 15. If we have an emergency and need to suddenly do work in 2 hours but have pending deadlines, we miraculously complete those assignments in 2 hours.

Note: E is for Elimination p. 76

There are two synergistic approaches for increasing productivity that are inversions of each other:

1. Limit tasks to the important to shorten work time (80/20).
2. Shorten work time to limit tasks to the important (Parkinson's Law)

The best solution is to use both together: Identify the few critical tasks that contribute most to income and schedule them with very short and clear deadlines.

Note: E is for Elimination p. 77

The key to having more time is doing less, that is the path to getting there, both of which should be used together.

1. Define a to-do list
2. Define a not-to-do list

In general terms, there are but two questions:

1. What 20% of sources are causing 80% of my problems and unhappiness?
2. What 20% of sources are resulting in 80% of my desired outcome and happiness?

Note: E is for Elimination p. 80

Shorten schedules and deadlines to necessitate focused action instead of deliberation and procrastination.

Note: E is for Elimination p. 84

-COMFORT CHALLENGE-

Stop asking for opinions and start proposing solutions. Offer a solution.

Note: E is for Elimination p. 84

How to Read 200% Faster in 10 Minutes.
Increase your speed at least 200% in 10 minutes with no comprehension loss:

1. Two Minutes: Use a pen or finger to trace under each line as you read as fast as possible.
2. Three Minutes: Begin each line focusing on the third word in from the first word, and end each line focusing on the third word in from the last word.

Note: E is for Elimination p. 89

Learn to be difficult when it counts. In school as in life, having a reputation for being assertive will help you receive preferential treatment without having to beg or fight for it every time.

Note: E is for Elimination p. 95

Here is a simple e-mail template that can be used to warn that you will be less active in email:

Greetings, Friends [or Esteemed Colleagues], Due to high workload, I am currently checking and responding to e-mail twice daily at 12:00 P.M. ET [or your time zone] and 4:00 P.M. ET. If you require urgent assistance (please ensure it is urgent) that cannot wait until either 12:00 P.M. or 4:00 P.M., please contact me via phone at 555-555-5555. Thank you for understanding this move to more efficiency and effectiveness. It helps me accomplish more to serve you better.

Sincerely,
Tim Ferriss
Note: E is for Elimination p. 98

Limit access to your time.
Find your focus and you'll find your lifestyle
Note: E is for Elimination p. 111

If meetings are unavoidable, keep the following in mind:

• Go in with a clear set of objectives.
• Set an end time or leave early.

Note: E is for Elimination p. 113

Becoming a member of the NR is not just about working smarter. de's about building a system to replace yourself.
Note: A is for Automation p. 128

Get an assistant even if you don't need one.
Develop the comfort of commanding and not being commanded.
Note: A is for Automation p. 145

Start small but think big.

• Look at your to-do list — what has been sitting on it the longest?
• Each time you are interrupted or change tasks, ask, "Could a VA do this?"
• Examine pain points— what causes you the most frustration and boredom?

Note: A is for Automation p. 146

It's called the Criticism Sandwich because you first praise the person for something, then deliver the criticism, and then close with topic-shifting praise to exit the sensitive topic.
Note: A is for Automation p. 148

Don't call it a problem if you can avoid it.
Note: A is for Automation p. 149

DROP-SHIPPING MEANING

1. A prospective customer sees his Pay-Per-Click (PPC) adves. tising on Google or other search engines and dicks through to his site, www.prosoundeffects.com,
2. The prospect orders a product for 85325 (the average purchase. price, though prices range from 529-7,500) on a Yahoo shop ping cart, and a PDF with all their billing and shipping informa tion is automatically e-mailed to Doug
3. Three times a week, Doug presses a single button in the Yahoo management page to charge all his customers' credit cards and put cash in his bank account. Then he saves the PDFs as Excel purchase orders and e-mails the purchase orders to the manufacturers of the CD libraries. Those companies mail the products to Doug's customers— this is called drop-shippingand Doug pays the manufacturers as little as 45% of the retail price of the products up to go days later (net-go terms).

Note: A is for Automation p. 152

First, the more competing resellers there are, the faster your product goes extinct.
Note: A is for Automation p. 156

- Step One: Pick an Affordably Reachable Niche Market

Creating demand is hard. Filling demand is much easier. Doat / create a product, then seek someone to sell it to. Find a market define your customers —then find or develop a product for them

- Step Two: Brainstorm (Do Not Invest In) Products

ick the two markets that you are most familiar with that have P their own magazines with full-page advertising that costs less than $5,000.

- Step 3, we will create advertising for them and test responses from real customers before investing in manufacturing. There are several criteria that ensure the end product will fit into an automated architecture.

Note: A is for Automation p. 158

The main benefit of your product should be explainable in one sentence or phrase.

"1,000 songs in your pocket."

Note: A is for Automation p. 161

The bulk of companies set prices in the midrange, and that is where the most competition is. Pricing low is shortsighted, because someone else is always willing to sacrifice more profit margin and drive you both bankrupt. Besides perceived value, there are three main benefits to creating a premium, high-end image and charging more than the competition.

1. Higher prising means that we can sell fewer units-and thus manage fewer customers-and fulfill our dreamlines. It's faster.
2. Higher pricing attracts lower maintenance customers (better credit, fewer complaints/questions, fewer returns, etc.). It's less headache. This is HUGE.
3. Higher pricing also creates higher profit margins. It's safer.

Note: A is for Automation p. 161

Information products are low-cost, fast to manufacture, and time-consuming for competitors to duplicate.
Note: A is for Automation p. 166

If you aren't an expert, don't sweat it. First, "expert" in the context of selling product means that you know more about the topic than the purchaser. No more. It is not necessary to be the best—just better than a small target number of your prospective customers.
Note: A is for Automation p. 167

If you read and understand the three top-selling books on home-page design, you will know more about that topic than 80% of the readership of a maga zine for real estate brokers.
Note: A is for Automation p. 168

What skills are you interested in that you-and others in your markets —would pay to learn?
Note: A is for Automation p. 169

-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, fa mous authors, etc.—and don't aim low to make it less frightening.

Use www.contactanycelebrity.com if need be, and base your scripte on the following.

call: 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. I'm a longtime fan and have finally built up the courage to all 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?3 I 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?

Note: A is for Automation p. 172

Micro-testing involves using inexpensive advertisements to test consumer response to a product prior to manufacturing
Note: A is for Automation p. 180

Reinventing the wheel is expensive— become an astute observer of what is already working and adapt it.
Note: A is for Automation p. 183

Remember Doug from Prosoundseffects.comHow did he test I the idea and go from $o to $10,000 per month in the process? He followed these steps.

1. Market Selection
   He chose music and television producers as his market because he is a musician himself and has used these products.
2. Product Brainstorm
   He chose the most popular products available for resale
3. Micro-Testing
   He auctioned the products on eBay to test demand
4. Rollout and Automation
   Note: ProSoundEffects.com p. 189

Practice walking away if your objective price isn't met.

This is the negotiating equivalent of paper trading 4 Get used to refusing offers and countering in person and — most importantlyon the phone.
Note: A is for Automation p. 190

Sales increased more than 300% within four weeks of introducing the 110% guarantee, and returns decreased overall.

Lose-win is the new win-win. Stand out and reap the rewards,
Note: A is for Automation p. 214

Work wherever and whenever you want, but get your work done.
Note: L is for Liberation p. 229

He realizes that, just as you want to negotiate ad pricing close to deadlines, getting what you want often depends more on when you ask for it than how you ask for it.
Note: L is for Liberation p. 235