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2 Ways to Create a Compounding Business (And Exponentially Grow Your Income)
Matt Karamazov
June 28, 2025
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“There are two ways to create a compounding business. You can find more people that never stop buying your stuff, or you can find more people who never stop selling it for you. Referrals are the former. Affiliates are the latter.”
I'm really liking this "Book of the Week" idea inside Creator Launch Academy!
I'm definitely going to keep this going, as it's a great way to both share great info, and solidify my own learning in the process. I always like to go for those "many ways to win, no way to lose" situations whenever/wherever I can find them.
What Hormozi's describing here is how to exponentially increase your income, WITHOUT exponentially increasing your time investment or effort.
Basically what you want to do is create exceedingly happy customers, and then arm them with the skills, knowledge, and motivation to let other people know about your business and all the reasons why they should buy from you.
Word-of-mouth recommendations are some of the most powerful, because most people don't trust marketing messages anymore. I can say that Creator Launch Academy is amazing (it's not, yet, but I'm working on it), but if a friend of yours tells you that it is, well, then you're much more likely to trust their recommendation than mine.
Even though "your disbelief passes through me as an idle wind, which I respect not" (Shakespeare lol).
Seriously, though, referrals are POWERFUL. Get that engine up and running in your business as fast as possible if you like money.
But also...AFFILIATES. The power! My god.
I'm not going to spend too much time breaking down what affiliates are, because you likely know already. Basically, affiliates earn commission for recommending and getting people to buy your product/service.
I make a few hundred dollars per month just linking to the books on Amazon that I'm reading anyway, which is a nice little side income. We even have an affiliate program within Creator Launch Academy, where you get 50% of the monthly membership fee for every person you refer to the group.
EVERY. SINGLE. MONTH!
That's something I'll definitely be working on growing over time, especially as I improve the value proposition of the community, expand my library of courses + trainings, etc.
But think about how you can incorporate these two compounding growth engines in YOUR business: Referrals + Affiliates.
Referrals are basically free money that is a byproduct of having happy, satisfied customers, and affiliate sales can BLOW UP if you get the incentives right and recruit enough people to share your stuff on your behalf.
I mean, say that your product costs $100 and you offer 50% commissions.
If you recruit 10 affiliates and they sell just 3x each of a recurring product/service, then EACH MONTH you're generating an additional $1,500 in profits...for next to NO additional work on your part.
That Hormozi guy's onto something :)
If you want my personal help to add between $1-5K/month in monthly recurring revenue to your creator business, and grow your audience and authority exponentially at the same time, Creator Launch Academy is exactly where you need to be. Join here.
“People look to see what you can bring to the table. They want to know if you’ll make the team more or less productive, if you’ll collaborate well with colleagues, if you’ll be engaged, and if you’ll help solve problems.
Even if you had a great education, it probably didn’t teach you about these invisible things. They’re not easy to pinpoint or grade, but they are what people notice.”
*Publish 12 Reading Life Newsletters (4 LEFT)
*Publish 90 Medium Articles (79 LEFT)
*Publish 30 YouTube Videos (26 LEFT)
*Publish 12 New Course Videos (12 LEFT)
*Publish Skool About VSL (INCOMPLETE)
*Update My Instagram Profile (INCOMPLETE)
*Update My YouTube Channel (INCOMPLETE)
*Update My Welcome Sequence (INCOMPLETE)
*Update 50 New Patreon Book Notes | COMPLETE âś…
*Get Monetized on YouTube (3,423 Watch Hours Left | 14.43% Complete)
*Negotiate 12 Newsletter Partnerships (6 LEFT)
*Organize 12 Instagram Collaborations (8 LEFT)
*Organize Coaching Program Launch | COMPLETE âś…
*Organize My YouTube Studio | COMPLETE âś…
Reach 120,000 Instagram Followers | 3,907 Followers Left
Reach 25,000 Threads Followers | 1,316 Followers Left
Reach 9,000 Twitter Followers | 812 Followers Left
Reach 100 TikTok Followers | 52 Followers Left
Reach 2,300 Medium Followers | COMPLETE âś…
Reach 1,500 Facebook Followers | 101 Followers Left
Reach 2,000 LinkedIn Followers | 572 Followers Left
Reach 5,000 YouTube Subscribers | 2,859 Subscribers Left
Reach 10,000 Reading Life Subscribers | 2,780 Subscribers Left
Reach 1,000 Competitive Advantage Subscribers | 76 Subscribers Left
Reach 50 Competitive Advantage Members | 2 Members Left
Reach 50 Patreon Supporters | 16 Supporters Left
NOTES: I’ll update these weekly, as it’d be a waste of time to go through all my analytics multiple times per week. “Focus on what gets you paid,” right?
Woke Up: 9:00AM
Sleep Quality: 60%
Pages Read: 130
Workout: Day Off
Work Completed:
Posted 2x on Twitter
Posted 2x on Threads
Posted 2x on LinkedIn
Posted 2x on Facebook
Worked on Current Author Campaigns
Worked on Next YouTube Videos
Worked on Next Book Breakdown
Worked on Next Issue of The Reading Life
Managed Creator Launch Academy Community on Skool
Completely Organized My Workflow for Tomorrow
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There are two more days left in June, and, as you can see, a few of my content goals completely collapsed from under me there! No matter.
It was a tough month, and I don’t wallow in excuses (Did I get it done? No. End of story.), but as you may know my father’s been in the hospital the last month and a half, and he JUST went home today. When you’re at the hospital every day, taking care of those you love, suddenly recording YouTube videos doesn’t seem too important!
Of course, it’s still IMPORTANT to me, but I’m giving myself some grace here too. I’m going to finish out this month strong, evaluate what went well and what didn’t, and recalibrate for July.
But that means I need to get some sleep right now, so I’ll talk to you soon!
And always remember: even if NO ONE else believes in you…I DO.
All the best,
Matt Karamazov
P.S. Whenever you're ready, here are three more ways I can help you:
Book a 1-1 strategy call with me and we’ll get you up to $5K/month in revenue by following a custom plan we’ll build together.
Become a Premium Member of The Reading Life newsletter and enjoy unlimited access to 150+ Premium Book Breakdowns, my complete notes from 1,300+ books, exclusive discounts, and more.
Join Creator Launch Academy, my private business mastermind for educational content creators who want to stand out in their niche, build multiple revenue streams, and go full-time with their creative passions.