Alex ‘A-Rod’ Rodriguez is no longer just a retired baseball player. Despite the player having some solid MLB credentials next to his name, his new identity is that of a business owner. And a successful one at that. Functioning under the umbrella of his A-Rod Corp., the athlete has taken to the identity of a business owner. He even appeared on shows like Shark Tank to invest in emergent businesses. He also holds some knowledge to drop for his followers, possibly even a choice to make for your future.

A-Rod has worked his way into the business world as his full-time work. With investments in real estate, private equity, and venture capital, he seems to have a diverse portfolio. He even invested in sports again, becoming a minority owner of the NBA’s Minnesota Timberwolves with e-commerce mogul Marc Lore in 2021. And his newest reel may just be a look into why this is. If A-Rod is to be believed, the earning potential of a potential employer is several times that of a potential employee.

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Alex ‘A-Rod’ Rodriguez preaches becoming an employer

Alex Rodriguez took to his Instagram to put forth his latest example. Setting out carefully the difference between the earning potential of the two entities, Rodriguez seems to believe that one far outperforms the other.

To start off the video, he says what we all have learned. “Not all revenues are created equal,” he says, “And it all depends on whether you are employee or employer.”

Set to the background of the theme of the TV show Shark Tank, A-Rod then explains his point. Taking the comparison of two individuals, he attempts to simplify it for a more general understanding.

First, he sets out the situation of an employee, Natasha. She makes a million dollars a year. However, because of the tax regime in the hypothetical, she has to pay 50% of her income in taxes. This means that she has a net worth of $500,000.

In comparison, Ella is a business owner who makes a million in profits from her business after taxes and expenses. However, the net calculation for a business owner is different than that of an employee.

A-Rod explains, “If that industry trades at 15 times then the way that works is a million dollars times fifteen, $15 million is the worth of the enterprise.”

Comparing the two income streams

All that’s left then is for the superstar athlete to bring it home. In conclusion, he says, “So Natasha, earns a million, nets $500,000, that’s her net worth. And Ella’s net profit is $1 million, and her net worth is $15 million. Which one do you want to be?”

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And while the amounts of the two calculations may differ significantly, so does the risk. But do you think it’s worth it for the gains? Which one would you rather be? Do you agree with A-Rod?