The 3 Levels of Business: The Framework for Your Career Growth

Justin Waller is a sharp dude, having come from total poverty to building a steel business that does $10M usd a year. His friends call him a “Blue Collar Baller” and it shows there are so many different career and business paths to the top. He has also become quite the online influencer sharing all his insights along his path up. He quotes his friend Tristan Tate about the framework for Business and Career growth that really stuck with me. He says there are 3 Levels to business that all successful business owners have to step through.

Level 1: You are Paid for What You Do. 

You have to start at the bottom, keep your mouth shut, eyes & ears wide open and work your ass off. 

Most people get stuck here because they either are too arrogant or entitled and think the work is beneath them. Or they just don’t want to do the work. 

Level 2: You are Paid for What You Know. 

You have accumulated enough experience and know-how that people now ask you for advice or to be involved. This was one reason I think I was asked to join 500 Startups as a Partner. Or an investor being asked to invest in some awesome startups. Or getting paid money to speak, advise or share your knowledge at big conferences/events or with various governmental or big corporate businesses. 

Level 3: You are Paid for Who You Are.

This is a bigtime influencer, brand name level. You get business because of the reputation and the network you have established before. And everyone (well almost everyone) wants to do business with you or wants you involved. This is not about being famous but about being very well respected and “known” to those that matter in your business and your life. 

When I think back to my career, I have been unintentionally following this path. 

Level 1: What You Do: After so many fits and starts in my early twenties, when I joined the early stage startup and then Yahoo! I worked ferociously like my life depended on it. I worked on average 90-100 hours a week. I did this for a decade which also caused me to burn out and take 2 years off from my earnings. But I did accumulate enough knowledge that I could leverage for future career & business. I would say this encompassed the first 19.5 years of my time in Silicon Valley. Yes, it took a long time.

Level 2: What You Know: Which is where I think I am. You have to be a complete idiot NOT to pick up something useful after so long in the tech business. I’m fortunate to get offers all the time to participate in investment deals or join numerous Investment Committees of some other Venture Capital funds. Or get paid to speak at many events or corporate groups or advise some large organizations involved in the startup ecosystem (For the record: I refuse to take money from early stage startups but I will if they are subsidized by government funds. I just end up donating this amount (after taxes) to various charities I support anyways). 

On the bright side, I have a clear view to get to Level 3: So I'm working hard on getting there :). I’m back on the conference speaking circuit. I’m writing this newsletter and I share every good thing I read on social media. Hopefully as my writing gets better (still a long ways away) and people think I’m adding value and have some interesting things to say, I may get to this new level eventually. But in the meantime, I’m enjoying the process which is probably the main goal and point anyways. 

If you put this against almost every successful person it fits very well. So for all you young and old folks out there trying to find your way: this is a good framework to follow. And there is no way to skip a level and there are no shortcuts just like in life. So just “do the work” and you will level up.