The 70-20-10 Rule - Episode 74

Podcast Transcription

Melina: You've got to put that microphone in your face.

Frank: Check, check, check.

Melina: You've got to move that out of the way. Yeah, you got to eat the mic.

Frank: I can't eat the mic. I'm eating the jerky.

Melina: Welcome to "Flippin' Off," a purpose-driven podcast about flipping houses and making a difference.

Hey, everybody. Melina Boswell here. It is a beautiful spring day. I'm not gonna tell you what day it is, but it's a beautiful spring day in June. And welcome to the "Flippin' Off Podcast."

So, we've been doing a whole lot of...let's see, training and leadership development in the club. It's one of the things that I've been committed to. This year is leadership development, raising up leaders. It is a skillset or a... I don't know if that's the right word, but I don't know what's the right word I'm trying to say, but something that's really near and dear to my heart and important to me is to raise up leaders.

I think the beautiful thing about the club, the most powerful thing in the business model is that students get to become the teacher or the coach, and that there is no ceiling for anybody when they come into the club. People have an opportunity to be and do whatever they wanna do. And so as a result of that, we've been training in such a way that is, I think, very credible and purposeful and intentional and we just found out it's actually scientific. And so that's the best thing. It was like, so we were at this leadership retreat and the instructor who was like a doctor, a real guy who knows what he's doing, like science and stuff and...

Frank: Legit.

Melina: He's legit. Exactly. And he was teaching us about this idea. It's a concept, a rule, that he calls the 70-20-10 rule. And so as he was describing the 70-20-10 rule, it's really how true leaders are developed and that they're developed through a system called 70-20-10. And here's what it breaks down to be.

Seventy percent is experience, 20% is mentorship and coaching, and 10% is education. We were all sitting there and we started belly laughing because we were like, "So, that's scientific?" Because how weird was it that that's exactly how we teach. And I guess I didn't tell everybody who's in the house. Sorry. I got in the house here today with me... I just went straight into it. I think I had too much coffee today.

Frank: That's awesome.

Melina: You're welcome. You're welcome. So, in the house with me at the table this morning, I have Oscar Solares.

Oscar: Hello.

Melina: Frank Luna.

Frank: Hello.

Melina: David Boswell.

David: Good morning.

Melina: And Mr. Tim Wilkinson.

Tim: Hello.

Melina: And over in the peanut gallery, we have Christian Rios.

Christian: Hey, guys.

Melina: And Andrew Boswell.

Andrew: Hello.

Melina: And, of course, our very own Kevin-sito. There you go. All right. So, back to the 70-20-10 rule. How crazy was that? So, the more I've been thinking about it, I realized that there's something unbelievably, it's almost surreal when you have this way of being or the way that we've created the club and then somebody put language to it and then you find out it's scientific and it's an actual concept. So, Frank was doing some research for us talking about what that actual science is. So, would you explain it?

Frank: Yeah. What's really funny is when we look back to when we started doing this. To be honest, we were experimenting what's gonna work best. We've been to so many different real estate trainings and didn't work and what are we going to do different? And we said, "Let's get people out into the field actually doing it."

And 10 years later, we get validated for all of our efforts that what we've proven out and what we've been telling people, we can actually back that up. And there's some psychology behind it, there's some science experiments. But mostly, it's psychology. You know, observing leadership, managerial positions, how did you become a manager? How did you become a leader? And they just went out and did things. They made things happen. They failed, they succeeded, they failed, they succeeded. So, the bulk of that was experience. And 10% was, you know, "I read a paragraph. I read some blurbs and I said, 'Well, let me go try this.'"

Melina: Yes.

Frank: And that's how we learn by doing, muscle memory, and repeating. And I know we've said that before.

Melina: That's all we say.

Frank: But it's so awesome to go out and say, "Hey, you know what, this scientific method that we teach has been proven over the last several decades. But it's pretty old theory and it's been proven time and then time again. The odd thing about it is it's been observed but there's been no scientific tests with control and not controlled. You know what I mean?

Melina: Yeah.

Frank: They didn't take two groups and scientifically go through it because that's not practical because that's not experience. It's hard to test this in the lab, but it can definitely be observed and it's been observed and proven over and over again. I mean, plenty of people have tried to step up and tried to say, "Well, how could it be 70-20-10? Why isn't it 69 and 11-9 or something? Where did you get this method?"

Well, it's been observed and it's proven. If you take any person, it could be plus or minus five on the experience and so on and so forth to almost as little, in my opinion, no class. You can literally go out and start doing this and we've given people the perfect place to go do that, implement it while we give them the support to make it happen.

David: Yeah. It's crazy. We were talking this morning, mom and I, about what do we wanna talk about here? And I was just thinking who are the people that we see the most success from that really, you know, over the past year I've paid a lot of attention to who's doing what. And there's this idea I think with a lot of people who come... There's the people that come in suits. They show up in suits and they wanna look the part and it's this whole facade about what it's like to live the life we do. But the people that we end up seeing have the most success are the ones who don't look at it as a glamorous kind of thing. It's not glamour.

It's the people that are willing to mow lawns and who are willing to go out and actually conversate with people and build relationships. Those end up being the people who have the most success. So, we talked about 70-20-10 and I think it's definitely... I feel like it's more. I don't even think 70-20-10 is the right number. I think it could definitely even be just like 90% getting out there and talking to people and just making stuff happen because with anything I've ever done, you just have to get into it. It's every single thing I've ever tried, you have to get into it and bang your head against the wall one time and realize, "All right. That's not. That doesn't work."

Melina: And then do it again.

David: Yeah.

Melina: And so do you think that people, certain people learn differently? For example, I look at Tim and I go, "Mr. Engineer over here, right?" You know like book reader, wants to understand all the concepts, so...because I know like David...

David: Get ready to get ready.

Melina: Yes, exactly. Yeah. So, David is very much like me in that. We just go, just jump in like, "Oh, you need to swim? Jump in the water and watch."

David: Yeah.

Melina: But not everybody learns that way, do you think? So, Tim, why don't you address that? Because I know for how I am, but why don't you address what is...because you're the engineer. So, we always make fun of you being engineery.

Tim: Right. I'm very much... I learn fairly easily by reading.

Melina: Oh, that's good.

Tim: So, I'm one that I do learn well by reading and by book, you know, learning in a classroom. I do learn quite a bit. But what this conversation is reminding me of is 10 years ago when I got plugged into the club, the club was built on four core beliefs. And one of those beliefs was that knowledge is power but only when applied. And to me, that kind of rings...it is the foundation of the club. And to me, it speaks exactly to this concept of 70% of your education comes from actually going out and doing it.

And as somebody who learns well from a book, one thing I say all the time is I've gone out and we've done deals, we've made money, we've lost money, we've made mistakes. And one phrase that I like to say is that I've spent way more money on less education and I learn...what I know is that I've learned so much more. I learn well from a book. I learn easy from a book. But I've learned so much more just from going out and doing it.

And it's taken me a long time to really grasp that because I do learn well from a book. I tend to go to a book. I'll tend to go and read stuff and so much to the fact that like David said. I'll get stuck in analysis paralysis or getting ready to get ready and I will go to the book first before going out there and taking the action. And I have to actually force myself sometimes to either pick up the book at midnight as opposed to right in the middle of the day or just not pick up the book at all and just go do it. I have to force myself to do that.

David: I have such a love-hate relationship with books. Obviously, you can't say, "I hate books."

Melina: That's like really. That's politically incorrect I think.

David: I don't think you can say that.

Melina: I don't think you can either.

David: But I'm the complete opposite. I will literally only use a book when I need to find out something specific. So, I start banging my head against the wall and then I realize, "Okay, somebody is banging their head against the wall. I need to find that person." So, that's how I learn. I just get into it.

Tim: That's so opposite.

Melina: So completely opposite. That's why I thought it was important to hear from both of you because I know that both of you, out of everybody here, are like the most extreme in the way that you learn and the way that you think. And so that's why I think it's cool. Oscar, you were gonna say something. What were you gonna...yeah?

Oscar: I'll just agree with David. And I actually used that example with someone yesterday in a coaching session that being book smart is one thing, right? But the knowledge is just the knowledge until you apply it. So, it's neither here nor there. Then I explained to them that for me, it's the exact same as David is I need to know where to go for the information, but I don't need to memorize the information.

So, books now are really reference books rather than just a book I read from cover to cover because if I know what's in that book, I can go to that chapter. I can dig out the information. And maybe I read it and then I went and applied it and I was like, "Man, I'm missing something because it didn't work." So, let me go back and reread a section of that book to get to that next step. So, it's...

David: You don't even retain it the same way.

Oscar: Yeah, the retention. You know it's just like when you take notes, your retention is better than just listening. So, all those things matter. So, yeah. It's interesting too. And one of the examples I gave Marlon, I'll just use his name, Marlon, is what if you approach...

Melina: Because he's a person with a name.

Tim: Beep.

Oscar: But the example I gave him was this is, "What if you looked at your day that way, 70-20-10, right? Instead of having to know everything, read up on something and go do it and spend 70% of your day doing things versus the opposite. And what does that do for you mentally? And obviously, your growth becomes exponential after that."

Christian: Hi, this is Christian Rios. As many of you know, I have been a member of New Wealth Advisors Club for over 7 years and got started when I was 17 years old with absolutely no real estate experience. One of the biggest lessons I've learned from being in the industry is the need for authentic relationships. If you're looking for an actual team locally in Southern California with all the resources needed to close deals, register for one of our free workshops by visiting www.joinnwac.com. Thanks for listening to the "Flippin’ Off Podcast."

Tim: One of the things that I've learned about myself over that course of these last 10 years of working with you, Melina, is that for me, money isn't necessarily a driving force.

Melina: Right.

Tim: Where I get off, if you will, is in knowing really. Do you know what I mean? Really, what it comes down to is if for...

David: Stop laughing.

Tim: Sorry. Beep, beep. We'll bleep that out, I guess.

Melina: No. There's no need.

Tim: The value that I find, like, where I feel good about myself is when I know something. So, I'll read a book just to know it. And then I had to learn that first of all, that doesn't get you paid.

Melina: Right.

Tim: I look at my past and will I have made money sooner had I just jumped in? Yes, without a question. Would I be where I am today had I just jumped in sooner? I don't know the answer to that. I think that probably not. I think that as an engineer, as that mindset, going through and learning everything that I did before actually stepping in, it worked for who I am today and where I'm at today.

However, if somebody had told me that I was gonna have to go through the process, the financial process, if I was gonna have to go through that pain, would I have done it? Maybe not. So, looking back, I would have made more money sooner had I just jumped in. I had to really grasp that you know what, I need to give up my need to just know because I take my identity as...

Melina: Having the answers.

Tim: Having the answers.

Melina: Yes.

Tim: Having the answers is part of my identity. If I don't have the answer, obviously, I'm not good enough. So, I have to let that go and go, "Just do it." And by doing that, I've shifted my rewards from knowing to a bank account.

Melina: Yeah. Hallelujah.

David: Right.

Melina: Yeah. That's so good. It just reminds me. I found this. I'm decorating my beach house. This is kind of off but I found this beautiful, rugged, old, ugly picture and it says, "Life is the perfect balance of letting go and holding on." It's like my most favorite statement.

Frank: That's funny.

Melina: I can't even find the best place to put this picture because it's just really rugged and ugly-looking and I'm like, "I wanna look at it every single day," because it's so true, what you're talking about right now.

Tim: Yeah.

Melina: I was thinking about when we very first started the club and what our business model was and exactly like Frank said. We were like, "Well, what should we do?" And we finally came to a point where we were like, "Well, we have to go get real estate deals. So, what are we doing to go get real estate deals? We’re going out talking to homeowners. We're out door-knocking. That's what we're doing." So, think about my first short sale class, Tim, that you were in as a student. It was three days, right?

Tim: It was three days.

Melina: And day one and two were where?

Tim: In the classroom.

Melina: And day three was where?

Tim: We started in the classroom and then everybody got handed a list of leads and we went out door-knocking and then we came back and discussed the door-knocking. Day three was literally...

Melina: In the field.

Tim: ...out in the field.

Frank: There were some people who hyperventilated.

Tim: Oh, yeah.

Frank: Tim was one of them.

Tim: I was one of them. That was when I did the freezing at the door thing.

Melina: That's right. That's right. Tim stood at the door with his coach and then somebody opened up the door and his coach told him, "All right. You go ahead and talk to the person this time." The story is hilarious. And so Tim was standing there and they opened up the door and Tim just stood there staring at them with his mouth open.

Tim: Right. True Story. Totally true story.

David: Did he save you? What happened?

Tim: He did. He stepped in and talked. And I was like... I shook my head. All of a sudden, I don't know. My mind went blank. I was not there at all.

Frank: Yeah. I think he actually passed out.

Tim: I mean, passed out standing up.

Melina: Standing up.

Tim: Yeah. And then he spoke. And when he spoke, I snapped out of it.

Melina: You got brought too?

Tim: Yeah. I got brought too and I was like, "Oh, shit. Dude, I didn't say anything." I must have looked like an absolute fool.

Melina: Do you hear that popping?

Tim: But it didn't kill me.

Melina: It's this thing here. No. It didn't kill you. You didn't die and even if you did pass out, you didn't hit your head.

Tim: Right.

Melina: You didn't go to the ground. So, it was actually perfectly fine.

Tim: Right.

Melina: So, yeah. Well, what I was getting at is that that was what we did because we knew it's what worked and it goes back to the origins, the genesis of the club and why the club was created. And it was we were a bunch of people that wanted to become real estate investors and how do we do that?

And so we came together and said, "Well, we got to go out and talk to homeowners. That's the only way." And then I was thinking fast forward after our, it was our second year in business and Dave and I went to this mastermind group and the business model was a really unique model in that... Not unique, not unique at all.

It was a model wherein people, everybody showed up and you presented your business model and everybody signed NDAs. And then you talked about what worked well and then what you needed help with. And then the people that were there in the mastermind poured into you, you know, gave you ideas. It was a great thing. Great people. And I still have those friendships today. I would never trade them for anything. But when we presented our business model, it was kind of like this. We were like, "Yeah. And so then we teach them this and this and then we take them door-knocking," and...

Frank: You didn't sound like that.

Melina: Well, that's what it was kind of like.

Frank: But that's what they heard.

Melina: Because that's what they heard.

Frank: That's what you sounded like to them.

Melina: That's exactly how it sounded. And the response was like, "Aww, look, they're so cute. Little cutie pies. They don't even know. There is this thing called the internet, you know, in different, more advanced ways of lead generation and all these things which is all probably true. The problem is the thing that was missing, now I can look at it... Well, because I don't know, maybe a year later, from one of those guys, I got an email like, "Brand new lead gen way, door-knocking." And I just started laughing. I looked at Dave and I was like, "Look."

David: I remember that.

Melina: Do you remember that?

David: Yeah.

Melina: And I was like, "Looks like we're not so stupid after all." But it wasn't so much about the simplicity of lead generation. It was about getting into action. It was experience. It was that 70%. And that is why we have people that have had success because we put them into action with experience. And that's it. And now we know that that is proven. We've known it's proven to be true because we have experienced ourselves because we've experienced success.

Tim: One thing that you make me think of is when you say that. First of all, I'm a book smart type of a person. So, when I stood at that door when we left on Sunday morning, I knew everything. I knew what I was supposed to say. I knew it all. But when I got in front of the homeowner, that all wasn't there.

And then when I got back to class, I was like, "Oh, I should've said this, I should have said that." I knew it all. I knew everything I needed to say. I don't want to say I knew it all, you know what I mean. But I knew what I needed to say, but it wasn't there. And it was literally in that 70% where I got stuck. And there is some real learning for me, there is the ability to put aside the book and go take action. And then something I just now got is that 100% of your money comes from the 70%. There's no 80-20 rule, there's none of that. One hundred percent of the money comes from the 70%.

Melina: Amen. Isn't that the truth? And let's face it. We all wanna do good. But we do need to put money in our bank account, don't we?

Tim: Right.

Melina: Absolutely. That's a great point. So, 100% comes from the 70%. I love that. That's so good. So, what's the takeaway we want people to get here today?

Oscar: So, I was just thinking about that. And most people say that they want to know everything before they can do something.

Melina: Yes.

Oscar: And I think this is really the lesson that 100% of your money comes from 70% which is all action-based, not learning-based. Learn through the process of taking action. So, for those of you that are still out there thinking that you need to know everything before you step forward, it doesn't work out that way.

Frank: Call us.

Oscar: Yeah.

Melina: Call us.

Oscar: Seriously, get out of your own way. You didn't do that when you learned to walk, right? Nobody handed you a book or a video to learn how to walk. You one day stood up and you took your first step. That's the way it works. It's all experience-based.

Melina: Just like riding a bike, right? You can't teach balance. It's the same idea.

Oscar: When he was saying, "I needed to know everything before I went out there." And he went out there and was like, "Well, I don't know how to actually talk to people and put this into practice. So, I don't know everything." So, that's the experience, especially in what we do. This isn't a scientific test tubes where we have to do all this stuff. It's actually going out there and it's a total people business. So, I think that's why it is 90% because you can't teach in a classroom conversations with real live people.

Melina: Right. We do a pretty good job of it though. We do role-playing.

Oscar: We do.

Melina: It's part of our classes is role-playing with each other.

Tim: Well, Oscar.

Oscar: It just hit me. You said 90%. David said 90% earlier and really what we were talking about is the other 90% which is the 70% that science says is experience, but arguably, sitting with a coach and a mentor and having a coach and a mentor in your life is also experience. So, it really is 90% experience.

Melina: Right. That's good.

Tim: And that mentor at the door with you, the coach at the door, all of that. Having my coach at the time step in and actually save face for us and rescue me, it helped. And it helped for me to realize like first of all, it didn't kill me and I can go do that again if I had to. And of course, I did. I did have to.

Melina: Yeah. Because you needed the 100% in your bank account.

Tim: Right.

Melina: That's so good. That's so good.

David: I think it can be applied to anything in life like Oscar said. That's the most important thing is even we get stuck in this weird, I don't know, this weird space of you want to do something so bad. With all of you, you know you can do something but you just get stuck in, I don't know, getting ready to get ready.

There's always something else you can know. You're afraid of failure. But actually, if you look all over the place, everybody just talks about how failure really boosts you. You got to look forward to failure. You really do have to be ready to fail and that's the most exciting thing because then you can figure out how to do it differently.

Oscar: I've embraced it 100%.

Tim: Maybe this is another podcast, but you just made me think of another principle that we learned which was the 10 key experiences.

Melina: Oh, yeah.

Tim: And if I look back, a lot of my 10 key experiences were exactly those failures. Then if somebody had laid those out for me kind of like the wave, if somebody had laid them out for me and said, "Before you become a success, you've got to fail here, here, here, here, and here," then when I hit those failures, they wouldn't have felt like failures, they would have felt like milestones.

Melina: Yeah.

David: What is it? Jay just posted something this morning. I don't even know what it was, but it was in a book, and it said something along the lines of success is being able to fail over and over and over and keep the same attitude as before you failed. That same fire, if you keep that and you fail and you continue to keep that same fire in your belly, there's no way you're gonna fail in the long run. You won't.

Melina: That sounds like... Christian, do you know who that is? Because I think I do. You know who it is? I think I know. Yeah. Go ahead. I wouldn't begin to say.

Christian: No. I was gonna say something else. I was thinking through this conversation. At our club we have the wall where we share experiences or knowledge or something and I wrote down something about a year ago and I just put life and then the acronym for life and I put learn, implement, fail, and evaluate, and that just over and over again.

Melina: Did you make that up?

Christian: No. I found it from somewhere. I can't give credit to it though because I can't remember.

Melina: That's okay. No. That's really, really good. When you were talking about failing over and over and keeping the fire, that's like a Jim Rohn or a Tony Robbins or a Brian Tracy. It's one of those guys because it's absolute truth. I know that to be true.

Well, this was a great conversation and I think it's gonna kinda lead into our next podcast which will be a cool one. But I was just thinking a perfect way to end today's podcast is Tim mentioned the four pillars on which the club was built and I don't know that we talk about them very much or that we share it enough, but I think I wanna just name those out. I wanna call them out and it is this. The first pillar is we believe that real estate is the only true way to wealth. We believe that knowledge is power, but only if applied. We believe that you cannot do this business alone, that you need a team to do it with you. And fourth and probably the most important pillar for me personally is that you must have a pay-it-forward mentality. You have to put people before a dollar.

And those really are the four core principles in which New Wealth Advisors Club was created. The foundation of who we are and that has not changed. And personally, I couldn't be more proud. And then to have this conversation feels like yes. We're going into our 11th year and look at us. It's the truth.

David: I just wanna say something before real quick. This is just to everybody or anybody who's listening. If you like what we're doing, then let us know. And if you don't like something, then let us know. We're gonna be changing the way that we do this going forward. We're may be doing some longer ones and having some shorter ones, just some different ideas. But we just wanna know what you guys think about the content, what we really do wanna know what you don't like and things that we should change.

And most importantly, we wanna know things that you wanna hear about. If you want to know about mom, if you wanna know about Oscar, Frank, Tim, Christian or whoever, then let us know. Just send us a message on the Facebook or post it to the Facebook page, the fan page. Yeah. We'll look forward to hearing your comments and feedback. So, thanks, guys.

Melina: That's great, David. Go ahead

Tim: Thank you.

Melina: Yeah. Thanks, guys. This is NWAC, were flippin’ out.

I'm Melina Boswell, your host of the "Flippin’ Off Podcast." I really hope you enjoyed it. If you did, we'd love for you to subscribe, give us a five-star rating and tell your friends all about us. You can find more episodes of the "Flippin’ Off Podcast" on Apple Podcasts, Spotify, Google Podcasts, Stitcher, or wherever else you like to listen awesome podcasts like this.

If you like what you've heard, we'd really appreciate it if you'd follow us on Facebook and Instagram and tell us the stories that you'd like to hear. Tim Jackson is our senior producer. Luke Jackson is our editor, brothers. Josh Mauldin is our producer, sound design by Frequency Factory. Our executive producer is in Mind and Mill. This was all created by Dave Boswell for New Wealth Advisors Club.