Welcome to JaysMastermind.com podcast. The only show in marketing that couldn't care less about your fancy little feelings. If you're a smart internet marketer, that's serious about success, then put on your big boy pants and enjoy this episode with your host, Jay. [00:20.0]
Jay: All right guys welcome back to this episode of Jay's mastermind. I was actually thinking that over the last couple of weeks, we, you know, we've been doing the show and stuff like that, and it's actually, I'm starting to feel a lot more comfortable. I think it's starting to come together a little bit. So that's a very important business lesson because sometimes you have like the nervous excitement, you know, it's kind of like beating the chick at first, you know, everything's just fast paced and you're just like, ah, ah, you know, like, is my hair done? I even took a shower today. And I started thinking in the shower, I'm like, why did I do that? Why did I take a shower? Cause it's not like smell-o-vision. But then while I was in the shower doing that, I was thinking, you know, what would cure porn? The invention of smell-o-vision. [01:15.6]
I guarantee you because it's coming back to the whole internet marketing; the whole hype stuff that actually want to get into is people buy in to everything that they see online thinking that that's the reality of it. And whenever you're actually in the trenches, it's not all that it's cracked up to be. It could be fun. Don't get me wrong, but nobody wants to talk about the dark side. Nobody wants to talk about the times whenever, you know, it's repetitive and monotonous. But anyways, I promised in the last episode that this one was going to be How to turn $100 into a $1 Million Dollar Empire? So first gut reaction, do you think I'm full of crap?
Jonathan: Absolutely. [02:01.5]
Jay: Hmm…and you would be right, but you would also be wrong in a way I'm going to try to justify this, right?
Jay: So this is kind of a call out. I'm hoping that the people who clicked on this, is the people who think that they're smart. It can kind of come back to that smart entendre call out. Entendre call out that I did is people fall for the smoke and mirrors. We talked about that in season one episode one, which you can get by subscribing to JaysMastermind.com, but you'll see this type of marketing message a lot, how I turn $50 into $50,000 or how I spent $50 on Facebook traffic and turn that into $50,000. But what a lot of people don't realize is again, kind of like going back to the poor metaphor is that it's not all that it's cracked up to be. If you try to duplicate what you see online, most of the time you're going to wind up pooling your growing, it's just going to happen. So how to turn $100 into a $1 Million Dollar Empire? Before we talk about the specifics, let me ask a question. Do you think a loan shark; Mr. Jonathan is a legitimate business? [03:19.7]
Jonathan: Ahhh…yeah. And they're called Chase and the other one.
Jay: So for those, those that know me that know my past, know that I come from a very dysfunctional upbringing, but a loan shark, like the legitimate, like mafia sao loan shark, you know, whenever I was younger in my later teens, before I went on the road and started becoming a wild and crazy rock and roller, I used to help negotiate the repayment of said high interest loans. Most loan sharks make 40 to 50% on their money.
Jay: Yeah. 40 to 50% it’s that high. So if you borrow a $1,000 from me, I want 1500 bucks. Is that good? Or is that bad?
Jonathan: Good for the loan shark bad for you.
Jonathan: Well you know what, it depends. There's a perspective shift there. What did you do with that money? Did you make more than that? [04:20.6]
Jay: Maybe, maybe.
Jay: But what about payday loans? Payday loan vendors? Is that a good thing or a bad thing?
Jonathan: You need the money. You need the money, don't you?
Jay: Need the money, you need the money. But there is so much, I think a few years back they were getting rained, rained in the news for being predatory lending. Do you know the average return that they make on their money is roughly between 350 to 400%?
Jonathan: What?? Really?
Jonathan: Damn! I'm in the wrong business.
Jay: Right. So think about that 3 to 400% is what damn I'm in the wrong business. 40 to 50% on loan shark is Holy crap. That's a lot. What about high interest credit cards? About 20 to 30%. Would you ever finance anything on a high interest credit card?
Jonathan: Mine is 22%, I use it all the time. I just kind of pay it off each month. [05:18.9]
Jay: Well, you got to pay it off each month. So 22% damn, we got to get you some more viewers, get your credit score. I'm going to play. So what about this over the last hundred years, the average rate of return in the stock market is 10%. Would you say the stock market is a volatile industry to invest in?
Jonathan: Depends on your timing? Depends on the timing, right?
Jay: There's billions, if not trillions, I'm not a financial lender. Maybe we'll get James Pollard on the show and we can talk about how to you know, all about financial stuff and how to…I wonder if he'll show us how to hide assets overseas. I don't know. Well, we'll have to talk to him about that. So anyways, so 10%, most people, most American consumers I would say is a little bit scared to invest in the stock market because of the volatility. The people who do it well, the Warren buffets make on average what 17 to 18% annual return, but 10%. But they see that as a high risk opportunity. [06:29.2]
The automotive lending market is a $1.3 trillion industry and they do so with an average rate of return being 5 to 8% Are you starting to see where I'm going? The home loan lending market is a $10.5 trillion industry and they do so at an average rate of return being only 2 to 3%. So this takes us back to the online community of these aspiring entrepreneurs that want to turn $50 in the $50,000. What does that a hundred thousand percent, a hundred times multiplier on your money, but they want maximum ROI, but they don't want the I. They don't want to invest. They want it free. Remember we talked about the employee, the manager, the CEO mindset. [07:29.7]
The employee wants to maximum yield with the least amount of effort. CEOs on average, if you can get a 10% annual return, you can literally make billions. So this actually then starts getting, well, how do we turn $100 into a Million Dollar Empire? I'm really, really hoping that by the end of this episode, you can take a big sigh of relief. It's not about turning a $100 into a $10,000 profit. That's obscene, you'll see it all the time. Again, going back to the smoke and mirrors, a lot of people are just teaching what they've been taught with no experience or knowledge. They might have gotten success. I've had buddies that have done solo ads. They bought an $18 and made $1,200.
Jonathan: Nice. [08:24.8]
Jay: Yeah, it's nice. But those same people have turned around and spent a $1000 on solo ads and made zip. So 10%, that should be your goal. 10% growth. I've stood up and exited three seven figure agencies in the last few years in different niches and the average agency referral fee, whatever, is 10%, 10 to 25%. There's a lot of different ways you can structure a minimum retainers, all that stuff and that's a that's that's time for a whole another episode. If you actually want to get into the agency again, you can go to JaysMastermind.com/ask, and then ask any questions about building up clients and agency work. And then I'll, I'll definitely do a whole episode for you. But I actually did an investment. Most internet marketers, the guys are brilliant. I'm going to say this me coming from the billion dollar agency aspect, media companies, the average internet marketer is actually smarter than most people running paid media ads. [09:32.1]
If you're an online marketer, who's tired of struggling, tired of the BS and tired of buying course after course with nothing to show for it. Then the choice is clear, go to JaysMastermind.com and grab your copy of the billion dollar framework today. [09:49.1]
Jay: But they don't know a lick about business, that's the reason why they fell. Because if I put an ad right now to the internet marketing community that says, I'm going to show you how to turn a $100 into a $110, do you think there would be, do you think there would be a lot of response to that?
Jonathan: That's going to be where you turn your a $100 ad spend into $0.
Jay: Right? But that is exactly how you turn $100 into a Million Dollar Empire. So I'm actually wondering, I don't know if we can do a shared screen. I have a fancy little; I say fancy its fugly excel. But I got a spreadsheet that basically says, I show in here an investment if you start with a $100, a rate of return of 10%. So all you need to do is make $10 profit off your $100 ad spend. [10:54.9]
That means your gross revenue is what $110, but employees and even managers think short term. CEOs think long-term that annual gross is roughly $5,700 with the annual net of $572. So if you're able to sit with that $100 investment, make an annual net of 572, if you can consistently do that and put the frequency week over week. So 52 weeks in a year, it doesn't sound like a lot, but honestly, guess what? There's a lot of people that's in this industry, that's been in for 90 days haven't made a dime. There's a lot of people that's been in this industry that feel like they're running with concrete boots on they're spinning their wheels, they're buying the courses, but they're not buying the traffic that don't even make $500 in a year. [11:52.5]
I personally know people that's been trying to do affiliate marketing, internet marketing, all this other stuff, buying the courses, we'll drop a couple of grand on a course. Their bookshelves are full and their bank accounts are empty. So if you did that a $100 in cashed out, you made $572 net profit per year. What if you actually took that extra 10 bucks and reinvested it the next week? So you have a week to generate $10 investment on it and you reinvested it. So then week two, you start with $110. That means your gross revenue is 121, annual gross, a little over 6,200 and you just made $629 annual net per year. You follow that down and down just consistent 10% growth, at the end of the year, you've created a $738,623.25 gross revenue business with an annual net profit of $73,862. Does that sound sexy? Does 10% growth sounds sexy? [13:11.6]
No, whenever you're looking at it, short sided, think like a CEO. Think long-term. That's the law of compounding, right? That's if you maintain 10%, let's just find the numbers. What if in Q2, quarterly two, for those who still need to learn about business? So Q1, you say 10%, that's all you made then Q2 you got good. You got good and you added an extra 1%. So now you're up to 11% in Q2, right? Because you built up a list, you have some affiliate marketing offers for something like that, 11%. And then maybe you got really good. And now you're up to 12% in Q3. I'm running the numbers as we speak, guys. I'll share this in the link in the blog if you want to play around with this. And then in Q4, you got really good 14%, right? Because again, the whole purpose of a CEO is either raise your top line revenue or increase your net margins. [14:10.8]
If you did that 10, 11, 12, 14%, if you're just consistent. Quit trying to be the hamburger guy, if you're the fry cook. Focus, your total gross budget for your new business is $1.6 million. With a total net, you can pay yourself a salary of $233,000. That's life changing. That's the difference. Whenever you start thinking like a CEO, you start cutting your liabilities. You start raising your assets. That's how you turn a $100 into a Million Dollar Empire. So that's, if only you had a $100 per week to invest, what if you could do that in a day? What does that turn out to? What if you could invest a $100 a day in paid advertising, but guess what? Instead of 10%, forget that, all you have to make is $2, a 2% return on your investment. You did that day over day, created a system, $2. You talk about negative ad spend if I said, Hey, I'm going to show you that turn a $100 into $102. [15:30.5]
Jonathan: Ooh hooo.
James: Whew, yeah. But guess what, if you did that day over day at the end of the year, what would you have? A $7 million top line, gross revenue business. A $7 million business. Is 2% reasonable? Yes. Is 10% reasonable? Yes. But this is the reason why people get so shortsighted about singular task, right? They go out there and they try to spend $50 to make 50,000. It's like, well, nothing works. I've tried everything, tried everything that they told me to do and nothing works. It's all a scam. It's all a lie. Well, now there's going to be times whenever you're going to knock it out, you're going to knock it out of the park and you might get an eight time multiplier on it. Right? You might be able to put a hundred dollars in and, and that hits and that's great and you make 800 bucks back just like sometimes you'll, you'll get a scratch off and you might win 500 bucks. [16:36.9]
More times than not you might break even or lose or just lose money. But you're playing the long game. Back before, like in that interim period whenever I got off the road before I actually got into marketing as a whole in business for about six months, I provided for my family by none other than playing Texas holdem at a casino.
Jay: Yes. Six months. Have you ever seen rounders?
Jonathan: Long time ago?
Jay: Everybody wants to be, was it Edward Norton? Everyone wants to be the Matt Damon. Everyone wants to be the guy who sits down and wins the world series of freaking poker baby. Right? Cause it's sexy. But what's the likelihood? There’s the character in there. I forgot who he played, he was the same guy who played Mr. Deeds. I look for you guy. He was trying to tell him, he was just like; you don't have to do that. He goes, you play tight. You play easy. You play to make money. You play the variance because at any given time, cause I have sat down like any given time, make a couple of grand in the hand and you give a time, you can lose a couple of grand. [17:45.5]
But the professional poker players that I knew they would play the variance, right? Which means they calculated their wins and their losses to an hourly rate. And then that determined their profitability long-term. At any given time, anyone can get knocked out, but it's the fighters that get in the ring consistently performing are the people who are the greats. So, or $100 into a Million Dollar Empire is that doable? Is spinning a $100 to get 110 back doable? Yes. There's going to be some campaigns, you're gonna knock it out of the park. There's going to be some campaigns, you don't. But it's playing the variance. So if you put all of your eggs in a single basket, you're going to end up with yolk in your hands. That's the reason why he can this, this, even this episode is turning into a little bit of, well, this sounds good, Jay, this sounds good. But you're the guy who said quit following for the stuff that sounds good. Yeah. You're you're right. [18:44.9]
So that's the reason why in the next episode, I actually want to start breaking down. It might be a multi-part episode, but we're going to put Jonathan on the spot and I'm going to take you through a process of how you can almost virtually guarantee a success of any product, any campaign that you launch. It's what I call, it’s going to be the intro, the high level overview of what I call the billion dollar framework. It's systematic processes to eliminate the guesswork. If it takes you more than 10 minutes to map out a six figure business, it's taken you way too long. Once you learn the process that we're going to send you through. [19:21.5]
Jonathan: Perfect. Perfect. So that is another episode, episode, number three of The Jay’s Mastermind Podcast. It's JaysMastermind.com, right?
Jay: Its JaysMastermind.com. Yeah.
Jonathan: Go there for all the goodness that Jay has for you. Thank you guys for tuning in and we will be back next week with the first part of the billion dollar framework. I can't wait. [19:42.0]
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