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Secret to Success – Ted Nguyen

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It is not often to see an Asian guy rockin’ out to Dr. Dre in a classic ‘64 Chevy Impala in the early 2000’s when the majority of Asian enthusiasts were wrenching on the likes of Honda Civic or Acura Integras. This passion for classic cars and modifications lead to the formation of EVS Motors, founded by Asian American entrepreneur Ted Nguyen. Ted has a history with taking the road less traveled which can be seen through his success in business and also a few project cars that shocked the world. Read more on how Ted Nguyen of EVS Motors aims to redefine the car modification industry…

Where are your beginnings from? How about your parents?

I am 32, I was born here in the US.  My parents were in the US military, we were one of the few fortunate 1st generation Vietnamese that were able to come to America by plane, versus by boat.  There were lots of horror stories about people having to abandon their country by boats.

School is very important in regards to Asian households, where did you go and what was your major?

I graduated from University of Houston with a degree in Business Administration and Information Technology. I chose Information System Technology as a degree because I was always into technology and was fond of computers and electronics.  That was the logical choice as a future career at the time. I was still passionate about cars, but never thought of a way to make it into a career.  I chose Business Administration as a degree because that would support any degree as a backup.  With knowledge in business you can get anywhere.

stephen winkelmann

Do you think college was important in your path to success?

Yes, I believe you get a lot of life’s experiences in college.  Whether it is direct or indirect.  Education influences people in their decision making abilities, whether they know it or not.  It is the responsibilities you learn in college that will play a role in how you run your business.

Asian parents are usually strict when it comes to education and career, what was their stance on EVS Motors?

My parents were always supporting me in everything I do, they believe in my passion.  Do what you are passionate in and you will do well.  That was my motto.  Even in high school my parents knew I was a car nut, I would always be outside washing my cars or doing something to it.  I would build my own subwoofer boxes, install my own stereo systems, xenon kits and such.

tora bora

Before EVS Motors started, what were you up to after college?

My jobs were always tech related somehow.  My first job was a sales consultant in the software department of a retail chain, after that I moved on to becoming a law clerk/it support for a high profile law firm in Downtown Houston.  I quit the job after I was given a job to be the IT Director at the local Porsche dealerships. At the Porsche dealerships, I was in charge of maintaining the inventory online and also online sales through various sales networks.

How did you know you were on to something big and to focus all attention with EVS Motors?

When the local Porsche dealerships were bought by Sonic Automotive they wanted to reduce my salary and convert it to commission that prompted me to quit.  At the time I only had to deal with online marketing and was not interested in selling cars.  I left Porsche and worked briefly with another company doing Automotive Leasing.  After work I would always work on my project cars.  When I would complete my project I would put it up on eBay and they would sell within 3-10 days.  Some cars would even sell within 3-6 hours of listing it online, it was a totally different market back then.

evs camaro

evs project lightning

How did EVS Motors become what it is today?

I worked on the side building custom classics and sold them for profit.  My side business did really well and turned into what EVS Motors is today.  EVS Motors started out as a custom classic car dealership, we primarily dealt with custom classics.  We avoided the numbers matching, original cars as they were more headaches than it was worth.  We are car enthusiasts and we like to cater to enthusiasts, not collectors that just buy cars to let it sit.  We wanted to build exciting and fun cars that could be driven reliably.  Custom cars sales started doing poorly since 2009-2010, we found that our customers were demanding that we offer our custom services to their own cars versus cars we would build and sell.  In 2011 we opened up EVS Motors Performance Studio, a shop unlike any other in Houston.  At the Performance Studio its main focus is to build the coolest custom cars on the streets of America.

evs motors

What kind of services and modifications can a customer expect when bringing their classic to EVS?

What we do at EVS Motors for classics was to focus on making them more modern and giving them more amenities.  This usually involved overhauling classic carbureted motors and converting them to modern fuel injection standards.  The brake systems were typically upgraded to all wheel disc brakes with much larger calipers than the original cars had.  As for amenities, we would add modern a/c systems in them, upgrade the sound system, add Xenon headlights, led lights, Navigation systems, bluetooth and such.

EVS Motors is a full custom performance shop, we provide custom wheel fitments for any vehicle, full interior upholstery work, high performance engine upgrades or engine swaps, suspension work, brake upgrades, etc.  As a team at EVS Motors our ideas our absurdly unique compared to our competitors.   The ideas we come up with our competitors wouldn’t dare do as they don’t even know where to begin.

evs performance studio

evs motors tx

EVS Grand Opening from Shedrick Mask on Vimeo.

Any examples of these outrageous ideas that you can tell us?

I would have to say the Culture Shock Camaro, that car literally shocked the entire industry.  It turns heads regardless of the idea, that was the whole intention of it and being called “Culture Shock”.  It is exactly that, a hybrid of multiple engineering technology from different cultures of the world.  A chassis from the United States, a engine from the heart of Japan and the transmission from Germany.  Literally a Culture Shock!

evs motors culture shock camaro

evs motors 2jz camaro

evs motors supra camaro

How large has EVS grown and where do you see it going in the near future?

EVS Motors remains a boutique sized business, this way we can focus on our exclusive clients.  We want to grow, but not beyond our control to become to corporate like. We have considered becoming larger, but with all businesses the larger you get the less in touch you become with your customers. We plan to focus on brand imaging, we want people to know where ever you see the EVS Motors brand logo they will understand they are getting the best possible products and services we provide.

Business always comes with risks, what do you consider your greatest risk?

The biggest risk of focusing on EVS Motors was knowing that I would abandon a career that was paying me well.  Passion came first for me, I wanted to do my own thing.  I was lucky enough not to run into any obstacles when I started the business, I was already doing it on the side since working with Porsche.  With the love and support from my wife and my family, EVS Motors would not have become a reality.  The business was quite successful in its beginning, as there were no competitors.

What do you consider your greatest achievement thus far in life?

Taking the risk to be an entrepreneur, marrying my best friend (Anita Nguyen), becoming a proud dad of a beautiful baby girl.  As far as my career I am grateful for making the choice of doing what I truly have passion in, working on cars.  As a kid I have always enjoyed being around cars.  I have always dreamed of owning a Lamborghini as a kid.  I remember watching Cannonball Run and seeing the Lamborghini Countach for the first time!  It was true love for me!  I am happy to say that the dream did come true.  I felt like I achieved my goals with Lamborghini; owning Lamborghinis, meeting the CEO of Lamborghini Stefan Winkelmann and meeting Lamborghini’s best driver ever Valentino Balboni.


What got you into classic cars in the first place versus the usual import tuning crowd?

Believe it or not I was a big fan of Dr. Dre and always wanted a ‘64 Impala. lol  The day I had the extra money while working at Porsche, I went and bought myself a Tuxedo Black ‘64 Impala SS with metallic silver interior.  I was the only Asian person in Texas probably that had a ‘64 Impala SS.  This was back in 2002-2003 when I bought it.  I had 20″ chrome wheels on it and a blasting stereo system.  The car would get noticed anywhere it went, it was just that different.  The car almost got stolen right in front of my apartment, I had a alarm system and a steering wheel club to prevent theft.  But that didn’t stop them from trying, I went out to my car one morning to find the door wide open and the steering wheel sawed through.  The great part was the car wasn’t easy to start because it was carbureted and they failed to get it moving.  I tried to daily drive the car as much as I could, but as a classic it had its downfalls.  It was utterly unreliable because the drivetrain was pretty much all original.  It pissed me off so much that I had my dream car, but it just wasn’t reliable to be a daily driver.  That is why my focus up to this day is all about reliability and safety for a classic.

evs motors

The automotive landscape is evolving very fast, where do you think the next trend will be?

As the OEM Manufacturers are getting more advanced with their technology so is the aftermarket.  Aftermarket products are becoming more reliable than ever, this is the plus side with the growing industry.  I would like to see advance performance tuning geared towards the future of Hybrid/Electric cars.  It would be amazing to see 1,000HP equivalents of a electric car, there would instantaneous torque!

For a guy that’s had everything from exotic to classic to import and everything in between, what’s your favorite ride in the stable?

This all depends, my favorite daily driven cars are Porsches. They blend the perfect amount of sportiness and comfort for daily driving. For a pure hard core driving experience I will have to vote the Lamborghini Gallardo, extremely exotic, raw and unforgiving. I am very excited about the new 911 (991) coming out for 2012, this car will be an amazing car!

yellow gallardo

porsche

blitz supra

evs motors porsche 911

Any other hobbies that keep you busy?

I collect watches from IWC, Chanel, Jaeger LeCoultre, Bell & Ross, CVSTOS & Rolex.  My favorite watch has to be the Jaeger LeCoultre World Extreme Alarm and the Bell & Ross Pro-Titanium for their ruggedness and daily wearability. I like to add another Bell & Ross to the collection, maybe the Carbon Fiber series.

bell and ross

Where do you see yourself in 10 years?

Business wise I like to double the size of my current retail location and be able to offer more in house services such as automotive paint.  In my personal life I like to have more kids, it is the best thing that can happen to a husband and wife.

ted nguyen evs motors

We want to thank Ted Nguyen of EVS Motors once again for sharing his inspiring success story. If you are in Texas or even out of state, contact Ted at EVS and tell Secret sent you and he will take care of you.

EVS Motors

713.588.1208

sales@evsmotors.com

EVS Motors on Facebook

Yes, I believe you get a lot of life’s experiences in college. Whether it was direct or indirect. Education influences people in their decision making abilities, whether they know it or not. It is the responsibilities you learn in college that will play a role how you run your business.


Secret to Success – Alex Papas

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From a college dropout working as a bartender to an accomplished entrepreneur, Alex Papas has ventured  into many industries finding success everywhere he goes. Having early success in real estate and inventing, Alex shares how he did it as well as his latest endeavors and how his club, South Florida Toys, remains Florida’s elite luxury lifestyle enthusiast club.

Why did you quit school to become a bartender instead of balancing out both?

I quit college because I knew that I could make a lot more money than being an auto tech guy, so I walk out in my first year. When I left I didn’t know what to do so I became a bartender.

How did you first get involved in real estate?

In the years of bartending I was approached by a big real estate broker and he told me that I could be unbelievable in selling real estate because of my personality and my sales skills. So I went to real estate school and got my real estate license in New York. I stated working in real estate and then was approached by the Patten Corporation, the largest land development company in the U.S. Then in the time I was there I got into building homes in upstate New York. Then the real estate collapsed when IBM Corporation restructured to laid off thousands of people in upstate New York.

murcielago

What happened after that?

After this I didn’t know what I was going to do, so I packed up and moved to South Florida. I hooked up with a friend of mine that had a contract with ABC and Don Johnson Productions and we went into business together and I was doing deals selling the show. However,  a friend called me and said “Did you hear what a prepaid phone card is? They are selling these in Europe.”

What was your involvement in the prepaid phone card industry?

I didn’t know what the hell a prepaid phone card was. So I looked into this and saw that I can do this and make major deals with MCI and AT&T. So I started to make promotional prepaid phone card for major corporations that had 10 and 20 minute cards so they could hand them out for their employees and customers.  Seeing that this work so well I started to make $10 and $20 prepaid phone cards and started selling them in Chinatown in New York and saw this was a huge success and then realized this was going to be huge. I have been credited for creating and developing the prepaid phone card in the United States. Then I started selling all over the U.S. and to convenient stores and Bodegas.. I did this for over 20 years and had enough and wanted to move on…

alex papas

What did you move onto next?

I started talking to my friends and asked them what they wanted to do when they want to relax and they all said they want to be on a island. I then had a great idea to go find an island for my friends and other real estate moguls for a private island. I looked all around the Bahamas and bumped into David Sklar in the Bahamas and we  started to talk. He already did a project in the Bahamas so me and him looked at an island that we both knew about and said after walking this 35 acre island, “this is it”, and then I said why don’t we get you and your guys together with my guys and let’s buy this island to develop because this was too big of a project for me or him to handle alone. So weeks later I got both sides to agree to this great island idea. so I said lets call it “Star Island.” It took 3 years to get all the approvals and now it’s ready to be developed. In that time we said lets make it the first green island in the world…

Tell us what you have planned and what you mean by green?

This luxurious 5-diamond private island community is nestled at the northern end of the island of Eleuthera in the Bahamas. Just a 55 min flight away from Palm Beach, Ft Lauderdale or Miami and only a 10 min boat ride to the island and Harbour Island is also only a 10 min boat ride away, yet light years away in its unique culture and ambiance of unhurried ease. Star Island will be self-sustaining, using solar, wind, hydropower, and bio-fuel energy resources. This 35-acre private island paradise will consist of 45 beachfront and dockage estate lots, waterfront Villa’s and bungalows. The island will have every amenity possible including world renowned restaurants, cafes, boutiques, club house, grocery store, tennis courts, state of the art fitness center & high end spa, marina, helicopter pad, and a park. Thousands of palm trees will cover the island and its beautiful sandy beaches. The island has the best bone fishing in the world. The entire island will be managed as a 5 diamond hotel.

alex papas

What other ventures are you currently working on?

Two years ago the real estate market crashed and I had to make a big move to do something else to make money. I was in the kitchen with my girlfriend and I was taking about candy and she was talking about nutrition and then it clicked. We both said why don’t we make a candy with vitamins in it and no caffeine. Well I knew that this is a great idea knowing that I had over 100,000 convenient stores and Bodegas that were my distributors from my prepaid phone card days who were still contacting asking me for any great deals that I would be doing. So I contacted a candy company that I knew from my child days in Italy and started to create and develop this idea. After a lot of scientific testing and taste testing it was ready to launch. Now 2 years later Kabang Energy Candy is in all Walgreens nationwide and Rite Aid on the West coast and thousand of convenient stores in the U.S.

Tell us a little about Kabang Energy candy.

Kabang Energy Candy is the Elite in energy candy. Kabang is made in Italy with highest quality ingredients. Kabang is available in 4 unique flavors (Apple, Cherry, Grape and Watermelon) . As you get closer to the center you will then have a blast of more flavor and energy that explodes in your mouth. Kabang Energy Candy contains 100% of the RDA of Vitamins B6, B12, C plus Ginseng. Kabang contains only 3 grams of sugar only 15 Calories, only 5 carbs, and no caffeine. Finally a great tasting energy candy that kids & adults can have without the jitters. Plus it’s good for everyone. Kabang Energy Candy at all Walgreens nationwide, participating Rite Aids, and at your nearest convenient store, gas station, candy store, health food stores, health clubs, college bookstores, stadiums, hotel gift shops, night clubs, and delis.

kabang energy candy

Anything new planned for 2011?

In April 2011 we are bringing the the first patented lip gloss called Bangalicious Lip Gloss. Bangalicious Lip Gloss is made with the highest grade ingredients. Bangalicious Lip Gloss contains Vitamin C, Vitamin E, Plus SPF 20. Bangalicious Lip Gloss is cruelty free, super shiny, has a luscious shimmer, a splendid sparkle, and a cooling tingle. The Bangalicious Lip Gloss retractor is imbedded with the world’s finest Swarovski crystals. The Bangalicious Lip Gloss formula was created by US chemist who holds over 30 years working for the Estee Lauder company and is a leader within his industry. The Bangalicious formula is made with the highest grade ingredients that are purchased within the USA.

Any mistakes along the way?

I should of kept more money than spending it when I was young. Spending money on stupid things was very stupid,  money means so much more now than when I was young and immature.

What motivates you to keep creating business after business?

I get bored if I’m not making money. I love to think of great ideas and one after hundreds of ideas that go through my head one will click and then I go and get that idea to the public.

south florida toys

What is South Florida Toys about and what kind of members can join?

In 2006 I bought my first Lamborghini Murcielago and then got my friends together and started South Florida Toys. South Florida Toys is an elite club for guys and girls that own the most exotic toys in the world. South Florida Toys gets together once a month to have the most exciting weekends with their toys. SFT Elite Club gets families together for fun times everywhere they go. SFT elite club is for anybody that owns supercars, offshore powerboats, custom choppers, and private jets that want to have fun. All our events are shot in HD with camera crews on the ground and in the air to give our elite members an HD DVD that they can share with friends and family. I have been putting together these awesome events for the last 5 years.

What kind of cars are in your stable right now?

Lamborghini Murcielago

alex papas lamborghini

Mansory Bentley Continental GT

south florida toys

Custom Yellow Lamborghini Chopper

alex papas lamborghini bike

Mercedes CLS55 AMG

mansory bentley

What is your definition of success?

Work your ass off don’t ever work for someone else.

Where do you see yourself in 5-10 years?

Making more money and spending time with my wife traveling around the world.

alex papas

We want to thank Alex for sharing his success story with us all. For more information on his businesses, you can find their respective websites at:

Kabang Energy Candy

Bangalicious Lip Gloss

Star Islands

South Florida Toys

Secret to Success – Vincent Wong

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There’s no better feeling than seeing your hard work spread in places you’ve never imagined. This is especially true for Vincent Wong, founder of iForged Wheels who can now see his line of wheels used anywhere from Mobil1 ads to an aftermarket wheel option in the Forza Motorsports video game. In an industry where it seems wheel companies come and go, iForged has been around for over a decade thanks to Vincent’s dedication and innovation. In fact, many companies and styles can be linked back to Vincent and iForged. Read more to see how Vincent left his mark on the wheel industry…

What got you into the car scene and what sparked the birth of iForged Wheels?

I have been a fan of the car scene since I was little.  I remember having a poster of a Ferrari Testarossa in my bedroom as a kid.  In my teen years I was a huge fan of the Honda car scene and had a widebody Honda Accord Coupe with Altezza tailight conversion with a steel widebody and a Mercedes blue paintjob.  Once I did my widebody I realized it was very hard to find wheels to fit my car.  This idea also manifested  when I was building my first European car; a 2001 Audi S4.  No one could make wheels that would clear my huge caliper and I was running on a set of Racing Hart C5 with a 25mm spacer in the front.  I thought it was ridiculous and first made a set of wheels just for myself and then had more and more people ask me about it and that is when the business started.

iforged wheels

What were you doing at the time when you started iForged?

I started iForged back in 2000 during my sophomore year of college.  I was studying to become a computer engineer and had to quickly change  my major to economics.  At that time there was really no one else doing custom wheels.  HRE was still only using step lips, so we were really the first company to bring out 3 piece reverse lip wheels and start building up the industry as we progressed.

iforged rx7

Most people wouldn’t even know where to begin. How did you get your foot in the door?

I was lucky to meet and be mentored by an engineer and designer who had over 20 years of experience in the wheel industry.  Because of my engineering background and thought process I was able to change the way the entire wheel industry would see 3 piece wheels.  When I first got going in late 2000 many companies were still using the step lip barrels.  We were the first company to start heavily pushing the 2 piece and 3 piece reverse contour profile which is pretty much the standard today for the industry.

eric kim carrera gt

How were you able to finance this business from the beginning?

In the beginning I did get some seed money from my family.  As the business took off I was able to pay back the loans in the first year of business.  We were profitable in the first year and have never looked back since then. The cost of building wheels has come down a little bit in the last decade because of competition between the parts suppliers.  The price is still determined by a lot of factors such as the LME (London Metal Exchange) and the price of oil.   People forget that aluminum is a commodity and also requires a lot of fuel to process.  If the price of aluminum rises you will see it trickle down to us and the wheel companies eventually have to increase our prices.  Also 3 piece wheel construction is very labor intensive so you will always see mutli piece modular wheels on the higher end of the wheel price spectrum.

At the time who were your main competitors?

My main competitor when I started was HRE.  At that time it was only HRE and iForged in the custom 3 piece wheel industry.  We definitely have had many great years of growth until the industry started getting saturated in the mid 2000s.  I will say I am somehow probably related to 90% of the forged wheel companies that came up during the last 6 years.  I have had employees, dealer, distributors, and friends start wheel companies after they saw the growth of iForged.

iforged porsche 911 turbo

What did competition do for you and how were you able to compete?

I do think competition is good for the market as a whole though.  It helps push innovation.  I am a member of the SEMA Wheel and Tire Council and now I spend more time trying to give back to the wheel and tire industry since it has given me so much during the last 11 years. We survive by building a great quality product and a great price and will continue to push the boundaries and envelope when developing wheels.  Our slogan is “reinventing the wheel” and that is what iForged has been doing since 2000.  We have 11 years of experience and many of the innovations we have created definitely help grow the 3 piece wheel industry. A lot of new wheel companies will try to say they use better parts than us or HRE, but the truth of the matter is there are only a select handful of parts suppliers that everyone wheel company in the industry buys from.  We pretty much all use the same components to make our wheels.

iforged lp640

iForged grew at quite a rapid pace. What adjustments did you have to make to handle demand?

As we started growing larger and larger we realized we had to focus more on process then just purely sales and marketing.  With my computer engineering background I wrote spec sheets and we created internal programs and databases that allow us to quickly analyze and project everything from raw material inventory and cost, inventory management, delivery deadlines and would integrate with our accounting software and production schedules.  Without these advances we could have never grown to where we are today.

iforged

How large is iForged today? What can we expect to come?

iForged is currently sold in over 50 countries around the world by our worldwide distribution network.  It feels great to travel to foreign countries and see our wheels on cars.  There has not been one country I have visited in the last 5 years where I have not randomly seen a automobile without iForged wheels on the street.  It feels so rewarding to see your work appreciated by fellow car enthusiasts.  We also have licensing agreements with most of the major video game manufactures and you can select iForged wheels in the virtual world as well in titles such as Forza, Need for Speed, and the Midnight Club series.

We are very fortunate to work with the best car builders in the industry.  Working direct with car makers such as Ford, GM, Lexus, and Nissan has enabled iForged to bring high quality lightweight forged wheels to the OEM market. iForged Wheels have been displayed on vehicles all over the world from L.A. Auto Show, Houston Auto Show, New York Auto Show, Tokyo Auto Salon, and the SEMA Show in Las Vegas. iForged is almost pushing the envelope in wheel development and we will have some revolutionary new products released this year in our SEMA Booth.  Come visit us at booth #47037 in the South Hall in Las Vegas Nov 1st-Nov 4th 2011.  I would love to personally show you what we have at that time.

iforged sema

Where do you see the wheel industry going in the next few years?

The wheel industry has become so saturated in the last few years.  You have more and more wheel companies popping up everywhere.  These days you have individuals who buy forged center disc from various machine shops and source barrels from third parties, assemble them in their garage and they call themselves a wheel company.  These guys can’t read drawings, never used CAD, or have no CNC experience. What happens when you have a warranty issue?  Its a shame there is where our industry is going to, but eventually everything will correct itself on its own.  You could be buying from a company with no liability insurance, no warehouse, no workers comp, who ship wheels from their garage and all while representing their company as a legitimate wheel company.  Scary stuff.

iforged nsx

What motivates you to do what you do?

My main source of motivation is to constantly challenge myself.  I get bored doing the same routine over and over everyday.  I love working on new projects and I don’t mind the 12 hour workdays which I still put in after 11 years.  Everyone who personally knows me in the industry knows that I am a workaholic, but I find joy in doing something I truly love and enjoy.  I was born a car enthusiast and I love constantly reinventing the wheel.

iforged wheels

What are your top 3 most memorable project cars and why?

1.  Techart Porsche 997 GT Street Build was featured on the outside of the SEMA Halls in 2008 and was on taxi cabs, billboards, etc.

2.  Misha Widebody Mercedes SL Widebody.  Car was fully built all around and looked the most aggressive of all my cars.

3.  Veilside Fortune RX7. First one in the United States and I still get offers to buy it today.

We want to thank Vincent of iForged Wheels for sharing his story with us all. iForged has big things planned for 2012 so we definitely recommend that you stay up to date with them. You can find them at the following sources:

iForged Wheels

iForged Wheels on Facebook

iForged Wheels Blog

Secret to Success – Jeremy Shepherd

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jeremy shepherd

For several thousand lucky individuals, they hold access to the exclusive AMEX Black Card, a credit card unlike any other where one must spend a minimum $250,000 a year and be invited based on a proven track record. To be in possession of a Black Card means much more than just business, it’s a statement of success, a statement that often leaves people in awe wondering who you are and what you do. This month we bring you something against the usual with Jeremy Shepherd, a self-made entrepreneur responsible for creating a $20+ million dollar empire as a pearl jeweler and current AMEX Black Card holder. Read more to learn about his story and thoughts on the Black Card…

Jeremy, thank you taking time out of your day to talk to us. Before being involved in the pearl industry, what were you doing before?

I attended a two-year college in Washington State and then took a hiatus from school when I became a flight attendant. After flying for a few months I decided to finish my four-year degree with correspondence courses from Southern California University for Professional Studies. This was around the same time I stumbled onto the pearl opportunity. I finished my undergrad and started graduate studies but didn’t finish.

Studying for a degree in business while starting a business was very beneficial for me. During my stint at the two-year college, I was studying for grades, not studying for practice. When I worked for my undergrad at SCUPS, every class had some direct correlation to my business and I could see how different courses were important to what I was doing.

akoya farm

At an Akoya pearl farm in Xuwen, China

A flight attendant is an uncommon career path, why did you chose that profession?

I love to travel. It has always been a genuine passion of mine. I also have a love of foreign languages and speak several. My language ability enabled me to get a job with Northwest Airlines as a Spanish and Japanese language-qualified flight attendant. From other cultures, I love the food, the sites, the history (museums), the languages, the different ways people interact with each other. The list goes on. The culture that I most enjoy and feel most at home in, however, is Japan.

The story has it that during a layover in China, you purchased a few pearl accessories for $20, only to be appraised for $600 while back in the states. How did you react?

Holy Crap! There has to be a business opportunity in this somewhere. My first plan was to start contacting stores – jewelry stores and boutique shops. This, I found, was a waste of time. I was able to only get one small boutique to agree to sell pearls, and only because I was friendly with the owner. Then a friend of mine introduced me to the website eBay. I didn’t have much experience with the Web at the time and found eBay difficult to figure out, so I went to Amazon. There I decided to go for broke.

I began by creating a Dutch auction without a photo, using the information from the appraisal that I had for the one strand of pearls I had brought back from China. I don’t recall exactly how many available items I listed in the auction. I then cashed my paycheck, went to the bank and withdrew all the cash I could from my credit card and got on a flight to China. I didn’t pay any of my bills for the month. I had about $3000 all together. I went back to the same seller and purchased as many of the identical strands of pearls as I could. By the time I returned from China, the Dutch auction had closed and every single item sold. I was able to make 3-4x the money I had put in. This is the way I ran the business for the first couple of years – buying product and reselling on Amazon (then followed by eBay) and using the proceeds to buy more pearls. I didn’t build a website until around the year 2000.

jeremy sheperd

Sorting freshwater pearls in Shanxiahu, China.

How were you able to manage logistics while being on an airplane most of the time?

I ran my company out of a flight bag. I carried a laptop, a credit card machine AND pearls on every trip. I would answer customer calls from layovers and worked from every hotel. I would find a local post office or FedEx office to ship the pearls. It wasn’t the perfect scenario, but I was only selling a few pieces per day, so it was manageable.

You mention eBay and Amazon as your primary platform for ecommerce initially, which did you prefer?

At the time it was Amazon. We still sell on Amazon, but under our own brand. We don’t use the auction service. eBay was never a big part of our business. We don’t use any auction formats these days. If one goes on to eBay and does a simple search for something like “akoya pearl necklace,” they will find thousands of results (my search today netted 9,155 results). The problem is that very close to 100% of the results are fake – they are all low-end freshwater pearls. The lack of oversight on eBay means it is only profitable (in the pearl niche) to sell fraudulently represented goods. Early on I implored eBay to do something about it but was ignored. We ended up abandoning eBay nearly 10 years ago and things have only gotten worse over there.

Akoya Pearl Farm

With your official website launching in 2000, what were some ways you were able to get traffic and how has that evolved today?

A varied mix of search engine marketing is a staple, but our extensive involvement in social media and public relations has been the key to our success. Today, our resellers are a form of affiliates. Being online, we aren’t limited to geographic boundaries and decided early on to market our pearls in Europe. We sell a product in the states at prices that traditional brick and mortar jewelers cannot compete with. But in Europe, the disparity is even greater. Shipping internationally, direct-to-consumer is not an easy thing to do, however. So we opened affiliate offices in Germany and in France. These offices operate much the way we do in the states, but handle all marketing and communications via their own local brands. We ship pearls to these offices once per week at wholesale. Our relationships are exclusive.

pearl paradise

Sales of luxury goods on the internet without being able to physically touch them must be hard. How did you overcome this initially?

This was difficult to overcome in the beginning. Although 10-15 years doesn’t seem like a long time, in e-commerce it is light years. Today, with our reputation and general ease consumers have with shopping online, it isn’t an issue we run into very often these days.

When we began, I realized the only way people were going to trust and buy from us was to give them solid guarantees. We instituted a 90-day, 100% refund guarantee for any reason, without any sort of restocking fee and offered free shipping. We also hired a professional photographer to be full time and on-site, so we could shoot any piece at any time from any angle in any light. But the truth is, reputation is what finally pushed us to where we are now. When people research our company online there are hundreds of reviews on blogs, forums, and publications.

pearl paradise

Pearl Paradise Team

What advantage do customers have by dealing with you over your competitors?

Establishing direct relationships with suppliers and being hands-on is the biggest key to our success and is absolutely critical. We often hear about jewelers that supposedly buy direct from producers, but this simply isn’t possible, or when it is (jewelers going to shows in Hong Kong, for example), they do not have the economy of scale to make it worthwhile. In order to buy from producers, one has to buy everything, or a large portion of what is offered. This often means thousands of identical pieces – a jewelry store couldn’t sell 1000 of the same necklace over a lifetime. We, on the other hand, can.

This means I do a lot of travel still. I have been to China four times this year, Hong Kong five times, Japan, Korea, Fiji, Tahiti, New Zealand and the Philippines. We also now have offices in Europe so I travel both direction.

jeremy sheperd

Opening of our pearl sorting factory in Xuwen, China

From side business to full time, at what point were you able to leave your flight attendant job safe and securely?

This took approximately two years. I started by taking leaves from my job at the airline and was actually employed (but not working) until 2004 when my leave ended. The airline told me then that I had to return to flying and that is when I retired. I started taking leaves when I was making more (consistently) selling pearls than I was flying. When I finally stopped flying my business exploded. Within a few months I was making more selling pearls each month than I made per year as a flight attendant.

How were you able to learn the ins and outs of the pearl industry quickly and effectively?

I read every book written on the subject. There aren’t a lot of pearl experts in the world. Jewelers tend to know very little true information about pearls. I became an expert. I then created another website called Pearl-Guide.com and filled it with articles I had written based on my research, and included a pearl discussion forum. That forum now boasts thousands of members and nearly 80,000 posts about pearls. This lead to my involvement with The Gemological Institute of America in creating the new pearls course for jewelers, as well as a lot of industry recognition as being one of the top experts in the world.

exotic pearls

Giant, exotic pearl strands

Are you still involved with Pearl-Guide.com today? Any thoughts about branching into book author based on your knowledge?

I am still on Pearl-Guide every day discussing pearls and answering questions. We even host a party every year called “The Pearl-Guide Ruckus.” This summer was our third ruckus, and we rented an eight-bedroom mansion in the Hollywood Hills for a weekend. Each year about 30-40 members from Pearl-Guide make it to the annual event.

I considered it, but after writing a book about starting a home based business, I decided that writing was just too time consuming at this stage in my career and life. I feel better suited to writing articles about pearls. I have been published in the Gems & Gemology Journal from GIA and have written for several other industry publications.

Pearl Ring Eiffel Tower

Pearl Ring For My Fiance

Now for the AMEX Black Card questions, were you invited or did you apply?

I applied for the black card. Years ago, one of my employees told me about the fabled “Black Amex,” and so I decided to check it out. I called American Express, told them that I had been a member for a long time and asked if I was eligible. The first person I spoke to acted like he had never heard of the so-called Black Amex before. After opening my account, however, he put me on hold and transferred me to a special department.

After speaking with the next representative I was told that I wasn’t yet eligible because I had not spent $250,000 on Amex in a calendar year, but I would probably hit that mark within the next couple of months. He gave me a special number to call at that time and I did.

Would you consider the Black Card worthy for the benefits even with high annual fees?

Yes, the upgrades at hotels and (especially) on flights make the card worth it, but there are a lot of other benefits that are just extra perks.

Las Vegas Company Trip

What are peoples reaction generally when you pull it out?

I think I am sort of “over” the reaction. When I first began carrying the card it was fun to watch – sort of like that elite club feel. But now it’s just my credit card. Every once in a while someone will get excited when I pull it out to pay, and it is impressive to pay with it when I am taking clients and suppliers out.

The Black Card is known for its top shelf concierge service, any memorable stories you can share?

Nothing that crazy or funny. There was the time, a few years back, that I received a call from my publicist that Extra TV wanted to interview me at the Hilton Hotel in Beverly Hills, just an hour or so before the interview. I wasn’t dressed for it and didn’t have the time to go home and put an outfit together. I drove to Beverly Hills, and on the way called the concierge. By the time I got to Beverly Hills (less than 30 minutes away), there was a personal shopper/stylist waiting for me in front of Saks. Within 20 minutes I was “suited up.”

With Judi Dench

What kind of items do you generally put on the Black Card?

I have purchased a Tesla Roadster, hundreds of thousands of dollars worth of pearls and diamonds (for my business, of course), countless airline tickets. This past June I took my entire company to Las Vegas for a team-building weekend and put the entire package (just over $40k) on the card.

pearl paradise

On a team-building trip to Las Vegas!

What interests you about the Tesla Roadster? Car guy at all?

It is electric. I hate throwing money away on gasoline and I hate wasting time at gas stations. The car saves me nearly $400 per month in fuel costs, and because it is electric, I can drive in the car pool lane. This saves me several hours per week in commuting time. Oh yeah, and it goes from zero to 60 in 3.7 seconds. I am not and never have been a car guy. I purchased a Mercedes convertible via the Internet nearly 10 years ago. I didn’t like the car. I switched to a Lexus and liked it, but made the mistake of switching to an Audi S5 when the lease expired. I guess some would call the Audi S5 exotic, but I wasn’t fond of that car either. The Tesla is the first car I’ve really loved, and really the first “toy” I’ve ever purchased since starting my company.

My Tesla Roadster

We want to thank Jeremy for sharing his fascinating story. We hope you all enjoyed something a little different from the usual success story profiles this time around. As always, make sure to visit Pearl Paradise for everything pearl related. With holidays around the corner it would definitely make a nice gift!

Visit Pearl Paradise

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Secret to Success – Brian Fox

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As car enthusiasts, we are modern day artists, artists that use our cars as the blank canvas where we are able to express our artwork. With most cars coming out of the factory tame and underwhelming, this allows us to freely express our style through our cars by customizing it to our liking, enhancing different elements that escalate the performance and style. When Lexus, Honda, Nissan, Ford and other manufacturers need a car to be modified, they turn to Brian Fox of Fox Marketing for his two decades of experience and knowledge of industry trends. Best of all, he gets paid to do it!
What makes you interested in entrepreneurship?

I took classes to learn about business in college. Pretty much all I learned was actually working in the field from selling cars, to Kirby Vaccums door-to-door. School is important but they can’t teach you common sense there. Either you got it or you don’t.

My grandfather had his own business and my Father was an Engineering Consultant so I guess wanting to be my own boss was in my own blood. Also, after doctors check out my case of ADD, they said I was the worst case they ever tested and won’t amount to anything in life. This drove me to prove the haters wrong and to be my own boss. Pretty much every job I had I got fired from because I saw idiots doing the job wrong in my eyes. They have different motives than I did I guess and wasn’t scared to speak up. I have always told people “how it is.” Sorry, but I’m honest and tell it how I see it. Some people can handle that, most can’t.

From doing sales, what important lessons were you able to take away?

I think the lessons I learned really didn’t come from selling cars. It came from what I wanted to learn, and taking that from my environment. What you learn is about constantly failing and not to take it to heart. Door-to-door sales is the hardest there is in my book because they are not looking for your product, you have to push that on others. It really comes down to presentation and establishing trust with an individual in 3 seconds. You only have one chance to make a first impression. People are big on looks so if you look the part it makes it easy for someone to open that door for you. That was all relative things I picked up along the way and had to figure out on my own. Then, when I got into selling cars, phones, whatever it was it was really a piece of cake. At least someone was coming in your door looking for something, not the other way around.

 
What triggered so much interest in cars?

Probably from playing with my Matchbox’s when I was super young at my parent’s house. Just always liked them, and then got a serious passion for them when I turned 22. During elementary school and on to college my passion was baseball and learning and playing that game. It was a strong drive to say the least.

So how did you get started in the car modifying business?

Back in 1997 I think I was the first car with a URL address on a car. I was the first person in the tuner scene with a TV show on Speed. It wasn’t about me or glory, it was just about exposing the scene to the masses and trying to inspire others to hook up theirs too. I think I achieved that goal and continue to focus on that. This auto industry is awesome and there are so many good people who just love cars and share the same passion. I just love to meet others who share my passion too. We just always have something in common and that is the love for cars.

 
 

 
 
 
How did you get contracts with large companies early on? Did you have a ‘big break’?

Pick up the phone and called them pretty much. Now it is the other way around, folks just call me when they want the vision.

I don’t think a big break was what you want to call it. I became successful because I had the vision to see where the market was heading and got in on the ground floor. My friends on the West Coast wanted to connect with the buyers on the East Coast. I developed a business model that helped them on this side and that is why they used me. I had the experience and work harder than anyone I know. Without hard work and dedication you can’t make it period. Things in life are not easy and some people think things are just handed too you. I wish. I started my business out of the basement of my Mom’s house. I didn’t get any money from anyone, and now I have 4 brand new Lexus’s sitting in my driveway, a nice house, 3,500 sq. ft facility, life is good! And you know what? I’m self made and proud of it!!! I busted my ass to get here but I got here by helping others. Also, many people helped me too and grateful to each one for their help too. I just share my success with them because they helped get me here. In life it is about teamwork, and that is what I’m all about. The TEAM concept.




Who are some of these people that have helped you along the way?

A couple people come to mind actually. My buddy Brent from BASF who believed in my vision, and let me create a job for myself and turn a passion into a career for me. I went to the brand many years back and didn’t see the vision, he did. I’m grateful for him to give me a chance and prove my abilities. Also, the whole tuner industry and the over 400 aftermarket manufactures I have had the honor of partnering with on projects over the years. They believed in me and I busted my butt to keep their trust over the years. It wasn’t about a free hand out to me, it was about helping someone. Of course my mother and father for the strong positive foundation they provided for me. They also made me go to Military High School because I got kicked out of public school for being a class clown. That straightened me up and gave me a true understanding of teamwork and trusting in others.

CJ Evers from Denko Performance for giving my first job in the tuner industry. It taught me about custom fabrication, engineering parts, quality, all kinds of things. He was ahead of his time and had a passion for cars like I did. Without his knowledge I wouldn’t be where I am at today. Also, thanks for firing me too, which was the best thing that ever happened to me!

Being a nobody early in the game, you must of faced lots of rejections. How did you get these companies to give you a chance?

You are always going to get rejected, it is life in general. You just need to stay positive and keep your head up. It is easy in life to keep your head down but you must remember you control that aspect. Look in the mirror and love what you look at each day – keep your head up kid! If someone tells you NO, then call someone else who might see your value. There are millions of doors to open and those doors never close unless you set limits on your abilities. Only you know what your true gifts are and you have to believe in yourself. Once you truly believe in yourself, others will too.

Tell us a little bit about Fox Marketing and what you guys do.

We consult for major brands inside and outside the Automotive market place. We are brand builders and that all starts with design/image. Then we figure out who the customer is and how to tailor a program to go after them. The companies I consult/consulted for are chosen by me. I saw a missing piece of their puzzle, and they hired me to bring them that piece. We started the following by designing 69 cars for OEM and Aftermarket Manufactures to market their products for the past 11 years. This exploded our name in the industry, and fellow enthusiasts started paying attention quick to the brand. The cars are the foundation, and what people look for from our camp. We connect well with others because we have built a ton of Import, Euro, and Domestic cars over the years. We can take any car and make it look good, and we welcome that challenge. No trailer queens here, just pure, real street cars you can hop behind the wheel and drive reliable. We do not cut corners nor will stand for that. If our name is on the front bumper, then it is built right.

 
How has Fox Marketing evolved over the years?

Fox Marketing was created to connect the West coast aftermarket manufactures to the East coast market place. I set up booths for them, built their cars to market the products, supplied the models, help find them distributors, marketed them online; all kinds of things. I created this because no one had anything like this business model at the time anywhere East or West. I started selling high performance parts and showing cars back in 1997. I saw this part of the industry exploding but needed the true experience and learning before I went out on my own. I made $250 a week working for a high performance shop and lived at home with my Mom for two years educating myself. My friends in the industry told me to get out and start my own business. They wanted to be my customers so I listened and did it. I was young and had nothing to lose, I always could start working for someone else again I thought.

I sold parts for years and was sick of the stupid people I had to deal with on a daily basis. There was just so much drama doing it. I wanted to be the middle man between the manufacture and the end user. I was great at setting trends that people copied so manufactures used me to start these trends. I can’t go into every detail here but many things you see even today I was behind the scenes beating on their doors for them to create. Fox Marketing has evolved from the basement of my Mom’s house to have a fleet of Lexus’s and a nice building to call home. I would have imagined but I never stopped dreaming. I am so blessed to have turned a dream into a job I absolutely LOVE!



What was your first car build?

The car that got me into the scene was my 1996 Dodge Stratus. I moved back to the East coast from College in 1997, and met up with a crew of car enthusiasts in town. Another guy Glenn had the same car but had all these performance parts for it. The competition started for me to get into the scene and I set my goals. I went to around 15 shows and even NOPI Nationals in 1997 in Atlanta. I got my butt kicked pretty much but I learned a lot. But, in early 1998 I called Wings West and they made me the front spoiler and touring wing. I started calling up some manufacture to make me parts and they helped me out. Then sponsors started coming and we were the first Domestic car ever shot for Super Street Magazine (the bible at the time). My goal was achieved and couldn’t count how many best in shows I got. But, that is how I got my start.

 
Any other cars of yours that we might have seen before? Which one is your most memorable?

People still talk about my Orange turbo Saturn SC2 Turbo Concept that was at SEMA 2011. The other SEMA cars where the Saturn Ion with custom SEA DOO with full paint, nitrous, and Stereo. Did a the silver Altima Coupe, Focus Coupe, and the fleet of Lexus’s I have now. A couple other car I did in between.

I think the Orange Widebody Twin Turbo IS F is the most memorable. It is just one bad ass car to drive. Love that damn thing.

 
Whats the philosophy behind your builds and what challenges do you encounter?

I decide on what car is most marketable in the aftermarket then approach them. It’s about a fit. There isn’t really a process other than doing the body, paint, wheels, tires, engine, interior, (stereo if you want that weight). Every car has a purpose so it changes every time. No two cars are the same and will never be.

Nothing unique, just problem solving on the fly is pretty much how it is. No matter how much you plan, someone throws a stick in your wheel always. I have never had one build “just as planned.” But, they all met the deadline and what I start gets finished. That is the key, completion no matter what the time line. I remember, Nissan has me do a Versa for the brand. I only had two weeks, and no one made one part for it. Showed up at SEMA and did more than other builders did from California with a month. It’s about drive to me to be the best at what I do no matter how the odds are stacked!

 
Fox Marketing on PBS’s MotorWeek




Any sneak peeks for upcoming builds you can share with us?

I’m taking a quick assignment with Honda to do the new 2012 Civic Si for SEMA. They are really good people, and it has been awesome working with them so far. They need my help, insight, and they welcome it. But, what comes in 2012 is the NEW Lexus GS. I have a vision for this car that will blow your mind. I have a SERIOUS passion for these cars, and people that are with the brand. Should be fun.

We want to thank Brian for sharing his secret to success. 2012 looks to be another exciting year for Brian and we will follow his builds to see what he has planned next.

You too can stay connected with Brian at the following places:


Secret to Success – Ben Bermudez

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Being privileged enough to be born within a family business can sometimes almost guarantee success in life. This would have been the case for Ben Bermudez, unfortunately mother nature destroyed not only his family business, but also his home and way of living. With this setback in life, Ben took a proactive approach in learning about his passion of cars and now owns Wheels Boutique, the nations largest wheel dealer.
Tell us about your childhood and your parents business…

I grew up in Miami, FL but more specifically the Redlands area. My family business was agriculture and we had few 100 acres lots and grew mostly coconut trees for resale. I would of probably stayed in the family business but fate would have it in 1992 for Hurricane Andrew to destroy our business and our way of life, leveling our house to the floor, and all our trees! Nothing was left, so we moved and just lead a normal suburb life.

It took 6 months plus just to get power at the house which was leveled. It was crazy because the life I knew and trusted was gone. Our family business was gone and its was time to start all over and not by choice. I was young but it was scary. Still to this day I have nightmares about this event.

Many people don’t know you hold a masters degree in business. Has it helped you?

In this industry I couldn’t tell you, it’s all about taste. I think Wheels Boutique is modeled by my personal style and look of cars. As you can see, our cars are not over done with exaggerated body kits,  color changing paint jobs, and so many mods that you don’t even know what car it is. Why destroy the lines of a car? For that start with a different platform.

 
What kind of jobs did you have after the setback?

I started in the wheel industry as a salesman in 1994 and ended up managing a large wheel mail order company. Within weeks I out sold everyone and just loved it. It wasn’t a necessity, rather more for experience and to learn the industry, you have to start somewhere.

I hated selling off the shelf cheap wheels since I already had clientele interested in custom wheels since I was building custom spec wheels that no one else could. This started with custom HRE wheels in 1997 at the company I was working. I couldn’t really service my high end clients so, I decided I need to do this for myself. In 1999, I opened Wheels Boutique.

How large has Wheels Boutique grown since you’ve started in 1999?

Well Wheels Boutique started in a 500 sq ft location in 1999 only doing mail order. Now we have 2 built locations with 3rd one in the works. Main warehouse now is 15000 sq ft and our retail location is 3500 sq ft. Employees including myself and my partner Carlos bring the total up to 21 total now.

My partner Carlos was brought on in the beginning for help. Carlos ran Wheels Boutique and all the accounting from day 1 and he is Vice President and now a brother to me.  You need someone you can really trust.

After launching Wheels Boutique, was it successful from the launch?

Well in 1999 there weren’t any three piece companies like there is now. Back then you had HRE, Racing Hart and Lowenhart who really ran the game. There weren’t forums like now and everything was magazine ads. We got rolling by offering wheels to high end cars in which no one else knew the fitments/specs to which got me my nick name ‘wheel god’. We know specs enough to push wheels to the limits.

Honestly, I wish it was like back then where you don’t have everyone just slapping a name on no name brand wheels and saying it’s the best. They’re just over whelming the market and honestly customers end up with junk.

That’s why at Wheels Boutique we don’t sell no name brands. People just don’t understand why companies like HRE have been around forever and the engineering that goes into building wheels. I won’t name names but you have to see how many wheels we see that fail and honestly put a customer’s life at risk. This is why we don’t sell those brands. So if brands aren’t listed by us, do your research because we did.

In 2003 we became HRE’s largest dealer in the world and have never looked back since. We also have been the largest dealer for a lot of other brands but most recently when we acquired ADV1 as a new brand, we also became their largest dealer overnight.

Did you have any significant setbacks or obstacles as you were building your company?

Yes, plenty of obstacles. Finding good guys to work for us has always been hard and in the beginning cash flow was always hard to find.  Especially in 2004 when we tripled in size just out of demand.

 
What do you offer that other dealers do not?

A lot but mostly 15 years of custom wheel experience. People need to research where they buy from before they buy. We have full staff of over 21 people and have been in business since 1999. A lot of online stores are young guys out of their bedroom and its easy for them to close and run off with your money and have zero knowledge of this industry. We stand behind all of our fitments and stand behind all brands we sell.

I have always been in the wheel industry since day 1! I’m mostly known for my custom offsets and super aggressive fitments and color combos that other can’t replicate. Such as my SLS AMG and 1st Nissan GTR ever done with 375 rear tires!

Do most of your sales come from online or offline?

Well depends which location. Obviously our retail store mostly does walk-ins, while our main warehouse does everything but most sales are phone orders.  We service people all over the world who can’t get the look they want until they call Wheels Boutique.

 
Was Wheels Boutique affected by the recession?

Honestly what recession? I’m very proud to say that. We have seen some dips in our market but really never affected us! Either we’re that good or god really likes us. I’ll take either one.


What do you consider the most important aspect on a set of wheels?

The most important aspect is fitment. Anyone can bolt on a wheel but will it be right?  Wheels with a perfect lip, not so cambered that the wheels look like they face the sky but ‘hella flush’ style, making it fit so perfect that it looks like the wheel and car just flow perfect.

We don’t like to make cars look like rainbows and incorporate 5 different colors into wheels, especially if they aren’t part of the original car color. The most popular finish is two tone brushed with polished windows.

I believe the main brands we carry have the perfect style to fit every taste and gap in the wheels industry. I guess that can be easily proven as we’re the world’s largest dealer for what most people believe to be the hottest brand in the wheels game: HRE and ADV1!

 
What was hot for 2011 and where are things moving towards in 2012?

Main trends in 2011 was concave or conical design as some manufactures use different terms. But still the hottest to date is forged monoblock 1 piece design. People really like the durability and style of a forged 1 piece design. As for something new I have seen a few things in the works that will change the wheel game again.

 
What advice do you have for someone who wants to get in the wheel game?

Buy mine cause I won’t do this again lol. It’s a very very hard industry. I have seen countless stores in every avenue open and close in my last 12 years doing this. It’s not easy and it’s not about how much money you have. Selling is all about reputation, style, and image.

Where do you see Wheels Boutique in five years?

I’m not a dreamer in that way but I hope to have a larger operation and more involved in wholesale as were expanding that department as we speak. A few more retail store wouldn’t hurt either.

 
What does success mean for you?

Success to me is being content with what you have, although I do consider myself content but I always want more for me and my company and strive for it daily. As of today I feel very successful. Especially after doing what others have tried to do and failed, I guess makes anyone feel good.

 
What is the one piece of advice you would give to an aspiring entrepreneur?

I really don’t know what to say without sounding cliché — but if you truly believe and want something bad enough you will accomplish it.


What was your project car growing up before you started Wheels Boutique?

Wow my 1st car build is still famous here in these parts. It was a 1st ever fully built 1996 Honda Prelude with an S trim Vortech supercharger making over 600 WHP.  It ran low 11’s back in the day with no traction and would break axles at the track every time but it was a street monster.

 
Of all the project cars you’ve done, which would you say is the most memorable?

Wow for the earlier projects I have built and owned over 50 cars personally to date.  I don’t know where to begin but 1 of my favorites was my 1997 Dodge Viper GTS with 250 shot of nitrous and my 2002 E39 BMW M5 with 200 shot of nitrous also which would eat Porsche turbos with 4 people in the sedan. That was an epic car!

 
What are you currently got in the garage for daily and weekend use?

Well right now I have 2011 Mercedes SLS AMG, 2012 Porsche Turbo cabriolet, 2011 Audi R8 v10 and my daily is a 2011 Ford Raptor and or 2011 BMW X5M. Each have custom wheels of course and too many mods to list.  I’m my own best customer lol.

We want to thank Ben Bermudez of WheelsBoutique for sharing his story with us. Together with HRE Wheels and ADV1 Wheels, WheelsBoutique will for sure make a statement in 2012. We look forward to what they come up with in the coming months.

Make sure to check out WheelsBoutique at:

Secret to Success – Neil Tjin

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We all have hobbies whether its cars, photography, watches, or other activities. However, most likely none of these hobbies allow us to make a living doing what we truly love. Now take Neil Tjin, a former resident of Florida, who moved to California to further pursue his automotive endeavors. Back in Florida Neil modified his personal cars at such an extreme level that international recognition put his car on magazines throughout the world. This also got him noticed by brands such as Ford, Honda, and Scion who now commission him to build project cars.
Since your work and life revolves around cars, where did this all start?

I used to live in Miami, for 18 years to be exact. Back in 1996 my wife Mei, brother Gene and I started messing around with cars. My first car was an Eagle Vision. I was the first guy in my high-school with 17″ wheels (when 17’s were huge). After the Vision, I moved on to my first import – an Acura Legend that I also put aftermarket wheels on.

A few months later I got an Acura 3.2 TL, which along with a pair of Bomex Accords (one owned by my wife and one by my brother), were the cars that really set things in motion for us. My Acura 3.2 TL, was the first “complete” car we ever designed and built. This was in the late 90’s, so things were quite a bit different than they are now. It had a custom Dupont paint job, custom Ground Control coilovers (we had to fly to San Francisco to have them made), custom interior, a custom roll cage, custom exhaust, custom brakes, and the first set of VeilSide Andrew Racing Mesh wheels in the US.

My Acura was one of the first cars out of Florida to be featured in Super Street Magazine, and in less then a year we were able to get more than a dozen features, which was a huge deal at the time. My wife’s Accord also made the cover of Honda Tuning, and things continued to snowball from there.

 
With all this recognition taking place, where has it taken your career?

In 1996, my brother Gene and I started our own wholesale company in Miami, FL called Star Performance. We were the official distributor for companies like Ground Control and Team Dynamics. After Star Performance I ran a couple retail automotive stores in Miami, and in 2001 I went to work for Toucan Industries. I started in their sales department and over time moved into marketing and building their display cars for Toucan and Circuit City. While working at Toucan, my wife, brother and good friend Emilio, worked for NIRA and NDRA, as their technical support team. This job allowed us to travel the country to various races, and opened a lot of doors for us while we were still living in South Florida. In July of 2003 I became the Executive Editor of HCI and B/Scene magazines. Now I own Tjin Edition, which builds and designs cars for OEM vehicle manufacturers, endorses products for some of the most amazing brands in the industry, and (of course) we have the Tjin Edition RoadShow, a national tour that goes to more than 30 automotive events each year.

I have been very fortunate and am truly blessed to be in the position that I am currently in, and all of the above mentioned jobs and companies I have worked for have helped me and my company get to where we are today.




It sounds like you went from a business owner at one point to an employee/consultant. Why the transition?

After my dad moved back to South America in the late 90’s, my brother and I closed Star Performance. At the time we were both highly sought after to run two local automotive shops in Miami. After that we went to work at Toucan Industries, and from there on I became the Executive Editor of HCI and B/Scene magazines. As I got older and moved up in the business world, I quickly realized that I wanted to start my own company again and be my own boss. I like to have control of what I am doing, and even though I have the most amazing team at Tjin Edition, I still try to over see the day to day operations as much as possible.

 
What is the Tjin Edition Roadshow?

In 2003 my wife Mei and I decided that it was time to sell our house in Fort Lauderdale and to make the move to Southern California… and lets just say it was the best decision of our lives.

After moving to SoCal in July of 2003, we met with the marketing department at Scion, and they asked us if we wanted to design and build them a Scion tC. The car would be used at shows across the Country, on Scion billboards, in Scion print and online ads, and was offered the opportunity to do a radio commercial for Scion (which I gladly accepted).

After the tC was done and touring for Scion, I was contacted by Turtle Wax, and they asked us to pitch them on a tour, which would later become known as the Turtle Wax “Get Waxed” Tour, and a sweepstakes vehicle, which ended up becoming my totally rebuilt Nissan 240SX. The Tjin Edition / Turtle Wax Nissan 240SX was featured in more than 33 magazines worldwide over 3 years, which really brought credibility to myself and our company.

We did the Turtle Wax “Get Waxed” Tour in 2004 and 2005, and from there it evolved into the Tjin Edition RoadShow.

Tjin Edition is ran by myself and my wife, and our RoadShow is a team effort ran by numerous guys including my brother Gene, Adam Carpenter from Unique Fabrication (the shop that is responsible for all our Tjin Edition builds), and of course Ben Freels our driver, and booth coordinator. Ben drives our Freightliner and 51 ft trailer around the country to all our events and he is in charge of our show staff which sets up and tears down our booths, sets up our display cars and partners products, is responsible for talking with as many possible consumers about our partners products, and for visiting new dealer shops in the cities that we visit.

Since collaborating with Scion and Turtle Wax, what other brands/manufacturers have you been involved with?

For things to go from more of a hobby into a profession, it took close to a decade for us to really establish ourselves with our builds, going to shows around the country, and being a magazine editor for almost 8 years. Once our credibility and our track record became more apparent, many doors started to open for us with OEM vehicle manufacturers like Honda, Chevrolet, Pontiac and Ford. Over the last 6 years, we have completed over twenty OEM builds for SEMA and the RoadShow.

In 2006 we were contacted by Honda and General Motors, and were fortunate enough to be chosen by both OEM brands to build vehicles for the 2006 SEMA Show. At the event, we had a Honda Fit in the Honda booth, a Pontiac Solstice and Volvo S40 in the Status booth, a Right Hand Drive Integra in the Skunk 2 booth, and my Nissan R34 Skyline Sedan in the Turtle Wax booth.

Going forward, myself and our team formed partnerships with several aftermarket product manufacturers, and became brand ambassadors for each of these products and brands, as it became our job to promote and represent our partners on the road with the RoadShow, and through our project vehicle builds.

It has truly been a pleasure and honor working with GM, Honda, Ford, and our partners such as Universal Technical Institute, Vortech Engineering, Paxton Automotive, Lysholm Technologies, Royal Purple, Webasto Sunroofs, MagnaFlow Exhaust, iForged and Forgestar Wheels, Baer Brakes, Falken Tires, Braille Batteries, Escort Radar, GlowShift Gauges, and Gurnade Design Firm.





Many people will wonder how you got in the door with Scion. What did you do?

When I moved here in 2003 I scheduled a meeting with the Scion marketing director. We had designed and built plenty of cars before in Miami, but never a car for a OEM manufacture. She asked me to present them with a my concept for the Scion tC. We pitched them our idea for a new Scion tC, and a few weeks later I got the call that they wanted me to build them a wide body Scion tC. I had just moved to Cali so I still didn’t really have any connections here, so I sent the tC back to Miami to be built with my team at E&V Motorsports. As a side bonus, the Tjin Edition tC was used in all the Scion advertising in 2004, including more then 500 billboards across the US, and they also asked me to do a Scion radio commercial, which was an awesome experience.

 
Do you still currently consult with brands in addition to operating the Tjin Edition Roadshow?

I own Tjin Edition and the Tjin Edition RoadShow. Those are my babies, those are my passion. They are my tools to continue growing in this industry and help our partners take their companies and products to the next level.

After the 2011 SEMA Show, I became the Automotive Marketing Director position for the Air Power Group, which includes the Vortech, Paxton, and Lysholm Supercharger brands, and I absolutely love it. I have been working with Vortech since 2005, when I had a supercharged Infiniti G35 coupe. Since then, we have owned and built multiple supercharged vehicles, including a Vortech supercharged Pontiac G8 GT, a pair of Chevy Camaro SS’s, a Lysholm supercharged Camaro SS, a Vortech supercharged Ford Mustang GT and a Paxton supercharged Mustang GT. Plus Vortech, Paxton and Lysholm have been part of the Tjin Edition RoadShow for the last three years, so taking the position was a no-brainer for me, as I live the products and I love nothing more than marketing great products.

Between designing and building cars for our OEM partners, the Tjin Edition RoadShow, and being a marketing director, I am busy 24-7, 365 days a year and I wouldn’t want it any other way (I am sure my wife has a different opinion though).

 
Most entrepreneurs can’t do it without a supporting entourage. Who can you give credit to?

Gene Tjin is my younger brother, and we have been working together since day 1. Gene is 18 months younger than me, but he isn’t just my brother, he is my closest and best friend. We have always designed cars together, and after my wife and I moved to SoCal in July of 2003, Gene followed later that year. Gene has built his fair share of high profile vehicles including a Honda Accord, Scion xB, Infiniti G35 and G37, Volvo S40 and V50, and OEM projects for Honda and GM including a 2009 Honda Fit and 2011 Chevy Camaro.

My wife, Mei Tjin, has been along this automotive journey with me since 1995 when we met. She was my high school sweetheart and she saw my passion for cars from the first day we met. Mei’s first car was a fully decked out Honda Accord with a H22a Prelude motor, Advan wheels, big brakes, custom paint job, full interior and Bomex body kit. Here car was on the cover of Honda Tuning back in 2003. Since then we have started a family and now she drives the Ford Explorer that we built for Ford Motor Company for last years SEMA show.

Nothing that I do would be possible without the support and backing of my wife, she believes in me and that gives me the confidence to think outside the box and push the envelope!

What would you say is the best decision you’ve made in regards of your career?

There are two things that instantly come to mind. The first thing is moving from Miami to SoCal and second is working for myself. I have always been driven to succeed, and working for myself allows me the freedom to push the envelope and to think outside the box. I am a true believer that life experiences make you a better owner and business man. I have worked retail, sales, marketing and for such a huge variety of bosses since I was 16, that now I know what I want and how to make sure the job gets done. I believe that you have to be a boss that people want to work with and associate with, but also have to understand when to put your foot down and make sure that things get done in a professional and proper manner.

 
How much of your success do you think is contributed to being at the right place at the right time?

I am a stronger believer that everything happens for a reason, and I also believe that you have to put yourself out there and take risks for things to happen. Things didn’t just happen for us, we invested a lot of blood, sweat and tears to get to where we are today, and we continue to do that year in and year out. I worked 24-7 to grow my company, and to figure out how to continue bettering our RoadShow and our relationship with our partners. On the other hand, being out there and staying connected with as many people as possible, does allow things to happen for you when you least expect them to. Being in California definitely opened a lot of doors for us back in 2003, and it was our job to take advantage of those opportunities that happened during that time frame.

How are you able to manage so many different projects while on the road?

Very little sleep, work 24-7, determination, and most importantly a great supporting cast. I am very driven and passionate, but I understand there is only so much one person can do. Without the support of my wife, brother and the team that we have established over the last 7 years there is no way that I would be able to handle so many different projects at once. Having a team like we do, and being able to trust our team on the road like Ben and our staff is huge. Being able to have a shop like Unique Fabrication and LR Autobody here in Socal is an incredible bonus, as I know I can always count on them to get our cars done in a timely fashion, and more importantly done correct. Being able to rely on guys like Josh from Gurnade Design Firm really makes my job easier and fun at the same time. This isn’t a one man show, this a collective effort from a bunch of driven and passionate individuals, and even though I over see everything, I have enough trust in my team to make things happen.




What is the typical weekly schedule for you like?

I am all over the place. As I mentioned I really don’t have a “schedule”, I don’t work 9 to 5, I don’t work Monday to Friday, I am always working. During the show season, I spend a good majority of my time coordinating with Ben and the team to make sure we have everything ready for the RoadShow events. During the summer and leading up to SEMA things really get crazy, and I am trying to manage and oversee all our SEMA builds, and right now I put in a ton of time helping Air Power Group (Vortech, Paxton and Lysholm superchargers) with their marketing direction and new ad campaigns for 2012. So basically my typical week / day is spent thinking about how to better the brands that we work with and how to get them the most bang for their buck. I live and breath this automotive industry that has been so great to my family, and we are truly blessed to be doing what we love.

 
For a young guy, what are you most proud of to date?

I have been very blessed with so many great things, but if I had to choose one or two thing, I would have to say the GM and Ford Design awards that we have won for our designs. Oh, and also getting the SEMA Person of the Year in 2003, that was pretty wild!

 
What’s the single best piece of advice you can give aspiring entrepreneurs?

Work hard, always over deliver, don’t be afraid to think outside the box, don’t be afraid to push the envelope, and lastly remember that it is humanly impossible to please everyone… so always believe in what you do and in the end everything will work out!

We see other car builders go more extreme but yours are cleaner. What’s your design philosophy?

We are all about simple is better, function and form. Back in 2003 I built a over the top “show car” a Nissan 240sx that won Best of Show at HIN’s and got all the glory, that car got over 33 magazine features and covers world wide. That was then and this is now, we have grown with the times and we have always been more about performance compared to bling. In 2005, I built a Nissan Skyline R34 Sedan with over 800hp and from there things really changed for us. Since we moved to Cali we have really broadened our approach to building cars, and we payed close attention to the street rod and hot rod scenes. Some people think our builds are too simple, but if you pay close attention to our builds you will see all the attention to details that go into our builds. Most of the OEM manufacturers are pretty good at letting us run with our creative designs, but every once in a while they will give their feedback. Usually it is about color, as sometimes you have to show them your vision and it takes some convincing to have them step outside the box.

 
We often see car builders on TV shows barely missing tight deadlines. Is this true for you?

Yeah, SEMA builds have a very tight deadline. Last year we had less then six weeks to completely transform a stock Chevy Sonic into a complete track / show car. The car wasn’t even out yet, so every single part had to be fabricated from scratch, and it went down to the wire. I am proud to say that our builds have never missed a deadline, and we always try to over deliver for our OEM partners and our clients.

 
What is your favorite build to date and why?

Since 1996, we have built and designed close to a hundred cars, and about a third or so were personal builds. I can’t just choose one particular build, as I really enjoyed by Vortech Supercharged Pontiac G8 and Camaro SS and my Ford Explorer. I get the most out of my Explorer, as it is the first SUV we have ever designed and built, and I drive it everyday.

It is great and perfect for my two little ones. The Explorer was built in conjunction with Ford Motor Company, it debuted in their booth at SEMA last year, and won one of their Design Awards, which is always a huge honor.

 
What do you personally currently drive and own?

My garage and drive way always change, as we rotate between our RoadShow cars and the cars I keep in SoCal. Currently I have my 757hp Vortech Supercharged Chevy Camaro SS, my 2012 Honda Civic Si Sedan, my Audio A4 Avant, and my 2012 Ford Explorer.




And finally, what is one car you look forward to buildings in 2012?

As I mentioned before I have a great partnership with Ford, GM and Honda. I am really looking forward to the opportunity to design the 2013 Ford Taurus SHO, Cadillac CTS-V Wagon, and the new Honda Accord.

To find out more information on Neil Tjin and the Tjin Edition Roadshow visit:

Secret to Success – MJ DeMarco

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Is there such thing as get rich quick? Most will argue that 99% of those courses and infomercial claiming to get rich quick are scams. However, MJ DeMarco, believes there is a way to get rich quick without having to slave away your life to an employer while saving 10% of your paycheck to a retirement fund. To MJ’s credit, he is the founder of the now sold limos.com which sold for a multi-million dollar price tag and has now released his latest book “The Fastlane Millionaire” where he shares his philosophy. We sit down to talk to MJ about his story and what this Fastlane philosophy really is.
How do you think your childhood shaped your outlook on life and your future?

I didn’t have a normal childhood as my parents went through a messy divorce that took years. While by all appearances I lived in a middle-class family, we didn’t have a lot of things that everyone else had. While my friends had all the latest video games, computers, and subscriptions to movie channels, my mom was always had a different concern: Putting food on the table and paying the rent. My childhood set the stage for me to *want* a higher standard free from financial burdens.

Watching my parents go through a dysfunctional divorce and watching my mother struggle to make ends meet as a single mom really laid the groundwork for me to want to control my destiny. While I was young and dumb, I just seemed that all our problems revolved around money, or lack of it. I’d classify myself as a lazy kid back then but pain does a miraculous thing for motivation: It makes you get up and do something to eliminate the pain.

The entire story could probably fill another 300 page book but basically, it was the foundation for me wanting something better. We didn’t have all the nice things the neighbors had and early in my life, I realized that feeling out of control is often a root to misery.

 
As you grew older and matured, what was the turning point for you to take control of your life?

Like any teen, I played sports and watched TV. I hung out at the neighbor’s house and played video games on his computer. However, my big turning point came when I saw a Lamborghini Countach at the neighborhood ice cream shop. This was a car I idolized and my familiarity with it was all magazines and posters — but on this day — it was right before me, live, and tangible to the point where I can smell and hear the exhaust. When I noticed the owner was probably 25 years old, the mind-shift came when I made a bold decision to ask the guy what he did for a living. Instead of saying he was an athlete or someone famous, he mentioned that he was an inventor. This threw me onto the path of entrepreneurship as a venue to create wealth, and to create it young. It was then I realized that I could experience wealth young without having to be an athlete or someone famous.

 
Even though you supported yourself through college, would you recommend it for entrepreneurs?

I attended Northern Illinois University. Unlike a lot of kids these days, I paid for it myself through loans, grants, and mind-racking jobs, often on the graveyard shift. (I had a security job that started at 3am – not fun!). The benefit of paying for college yourself is you place a higher value on it. While I was a C student in high school, in college I didn’t squander the education — I ended up graduating in the top 10% of my class and even managed to pull a 4.0 a few semesters. I think it was then I learned that I could accomplish anything with enough dedication and discipline. As for the experience, the degrees I earned (finance and marketing) had little value – the experience and growth that happened during college is where the real value was. College nowadays is much maligned and for good reason, but the big question of its value to each individual is a highly personal question requiring much introspection for the person making the decision. Some need college to mature; others don’t.

 
Tell us more about these unpleasant jobs you had before you hit it big.

Geez, where do I start? I delivered newspapers at 3 am in bad neighborhoods. I delivered pizza. Flowers. Stock clerk in the drapery department at Sears. Oh, and how about the day laborer job for a commercial plumbing firm in the slums of Chicago. Now that was fun! I hated these jobs because I knew what they were: A trade of my time to pay the bills. Unfortunately, most of society does this and in effect, is a dream-killer and illustrates why most people are miserable. If you have a job and its only purpose is to pay the bills, you’re gonna be miserable. To live a dream, your dream must be alive. While I hated these jobs, they had their purpose and that purpose was to keep the bills paid while I pursued the dream.

 

Many entrepreneurs fall for get rich quick type schemes because of their desire for instant gratification. Were you a victim of these as well?

Of course, I think we all fall for get rich quick schemes. One tiny classified ad, no-money down real estate, tax-lein certificates, you name it. Ultimately, I wised up and realized that the only people getting rich on the “get rich program” was the program creator themselves, not the plan being sold. A lot of savvy Fastlaners recognize that there is more money in selling information on making money than the actual “making money” plan itself. Once you have, what I call, “Fastlane goggles”, spotting these contradictions becomes easy. And yes, while I’ve made millions in my own business, selling the wisdom and experience that I’ve learned along the way has the potential to make me more millions by virtue of Fastlane mathematics.

 
Entrepreneurs often fail when launching their businesses. What is your personal experience with business failures?

Countless failures. I lost count. However, in these failures I started to notice patterns. I was always buying into someone else’s dream, or Fastlane plan. I had to learn HOW to STOP being a swab of paint in someone else’s big picture. When you join an MLM company, you’re electing to be a swab of paint in a Fastlaners’ grand plan. When you join an affiliate program, you’re electing to be a cog in the wheel of a Fastlaner’s marketing plan. My failures always stemmed from being a guppy in a shark tank. Fastlane success comes from being the shark in the aquarium whereas everyone else takes the easy road and signs-on to be the guppy. I’d give up on ideas when the market clearly indicated that what I had to offer wasn’t needed, or wanted. I learned that the marketplace was the ultimate judge-n-jury — not my personal convictions, needs, wants, or desires. Frankly put, the market doesn’t give a crap about what you or I want. If you have something the market wants, the market gives you money.

 
What was the purpose of creating your businesses? Was it for the money?

All my business failures were the result of trying to start businesses that the market didn’t need. I was simply following the advice of gurus who said I should do what I love, or do what I know. I started a vitamin business. A car audio business. The list is pretty long. Unfortunately, what I loved, and what I knew — the market didn’t need. And if the market doesn’t need what you offer? You have to sell your soul for the cheapest price and/or spend a fortune on marketing. I soon realized that if you give the market something it needs in terms of value, money follows. In my first days of entrepreneurship, I was chasing money instead of chasing needs and utilizing a cracked foundation.

MJ DeMarco
 
Obviously a domain like limos.com, even in the 90’s was a hot item. How’d you get ownership of that?

Well I hate to shatter the misconception of my haters, but I didn’t buy it at a domain registrar for 15 bucks. I bought it in the “aftermarket” — after I noticed the website for sale on a “domains for sale” website, I contacted the gentleman who owned it and made an offer. Needless to say, the 5-figure price tag at that time of my life, was the biggest purchase of my life — I financed most of it on my credit cards.

 
Tell us how you visioned your website/business and how it actually took shape.

My initial vision was just to be a better, interactive alternative to the Yellow Pages (a flat-fee directory service) but by listening to customer feedback, I was able to morph it into so much more. We started as a directory service but soon learned that there was a better value proposition by offering a “pay-for-performance” model to advertisers where you only paid for the lead opportunities you received. Then we allowed advertisers to join for FREE to eliminate the risk proposition. To put it frankly, many businesses were tired of gambling on “upfront” advertising fees and then later learning that they paid $1000s for nothing in return. We put that risk to bed.

MJ DeMarco
MJ DeMarco
MJ DeMarco
 
As many may know, your success came from launching limos.com. Where did the idea for that come from?

While driving a client to the airport, he asked me if I could recommend any limo companies in New York. I couldn’t. But I realized at that moment that if this gentleman had this issue, thousands of other people would too. Of course this was just the birth of the idea that led to many other problem-solving, value-adding ideas. For example, I also structured my business to be a risk-free advertising proposition for people and allowed services to join for free and only pay for the leads they received. If they received nothing, they paid nothing. At the time, nothing like this existed. If you paid to advertise thousands in any venue and received no business in return, you just lost a lot of money. This risk was troublesome to many businesses and I sought to solve it.

MJ DeMarco
 
Did you build your website yourself or did you seek help from others?

I did most of it. I knew every line of code and every nuance. On occasion I would subcontract local help for specific programming needs that I couldn’t do, or figure out. For example, we had a very expensive IVR (Interactive Voice Response) system that was done in Phoenix by a local company. I remember some of my billing software was programmed by a local DB administrator. But for the most part, I did all of it, and learned the entire length of the way.

 
A website is no good without traffic to it. How did you get the word out to consumers and businesses?

It was a mix of pay per click, affiliate partnerships, and good old fashioned search engine optimization. I made a point of being FOUND where the end users where found. If my site was found, the advertisers would follow. To start, I would visit the library weekly and troll through other cities’ Yellow Page books and use that public information to fill-out my database.

 
All businesses must make adjustments to cater to consumer and business demands alike. How did you evolve?

I switched to the lead structure when I realized it could be scaled far more effectively than a directory service AND it was a better value proposition for advertisers, and for ourselves in terms of performance. We received 100’s of leads per hour and I knew that they had value if they could be properly distributed and followed. Since there was no fee to join our service, attracting advertisers wasn’t too difficult. Then, any fees incurred by advertisers would be directly attributable to the website. Additionally, many of our advertisers experienced other benefits such increased web traffic and call volume, of which, we did not charge for.

As a directory, we operated under an entirely different equation for revenue and profitability. Conversely, a “pay for performance” lead model FORCED us to be active in attracting traffic; if we didn’t, we’d go broke. As traffic increased, so did our profits as a direct correlation. On the other side, as a directory service, the advertisers paid a flat fee regardless of the site’s effectiveness so therefore, our profit was NOT directly correlated to traffic, but correlated to advertiser closings. Therefore, what incentive would that company have for advertising aggressively? If JOE SHMO COMPANY paid $200 to advertise, that cost is SUNK regardless is JOE SHMO gets 1 booking or 100.

Sadly, our competitors who operated a directory format couldn’t keep up because their motives weren’t pegged to improving traffic levels but to the # of advertisers closed, not end user utilization. I thought it was extremely important to have profitability pegged to traffic/end users (and hence leads generated) and not pegged to “how many advertisers can we close.”

Let the market dictate your path. The market will always tell you the best direction to go. When a pattern emerges in the market feedback, you have an opportunity to steer in that direction.

 
The story is you sold limos.com for a large sum during its peak. Why did you make that decision?

Our revenue was around $3M. When I sold it, it was on pace for $2.5M for the year. While this isn’t a lot, our product price point was 99 cents and I was operating at approximately 45-55% margins.

It was a crazy time. We didn’t even have a lot of revenue but money was loose back then. Because I came from a relatively
poor background, the thought of a 6 or 7 figure payday was unimaginary for me. Naturally, when the offers came, I knew I wanted to take one and become a part of the dot-com craziness that was going on at the time. I saw it as a stepping stone and it was. At the moment, no one had any idea what was around the corner (the dot come implosion).

 
Unfortunately the buyers failed to maintain the standards you set forth across the board which led you to re-acquire it. What did you do to bring it back to life and what is your involvement like today?

MJ DeMarco
It didn’t really need turning around. The company that owned it was going bankrupt, the unit (website) itself was always profitable. However, with all the dot-com failings going on around me, it was a fun challenge for me to not only survive, but thrive. During those early years I didn’t have to worry about a lot of competition because funding had dried up and VC’s were running scared. After 6 years of consecutive profitability, I ended up selling again in 2007.
I still own very little shares but have no involvement whatsoever with the current management team. The reason I sold was because I knew the “lead generation” space had a limited life; the next step was to move to real time reservations and co-branded partnerships with larger brands, the manpower (and money) required for this was beyond something I wanted to do. The new management is doing a great job in taking the business where it really needed to go. I even saw the company on the Forbes “Most Promising Companies” list a few months ago; quite an accomplishment for the guys in charge.

 
You recently published a book (we’ll review it soon) about the “Fastlane” philosophy. What is your definition of that?

The Fastlane is a complete business, mathematical and psychological framework for creating wealth quickly and responsibly by adding value to markets where none exists. By strategically swapping HOPE for CONTROL, the Fastlane strategy can give you the unprecedented power to create extraordinary, life-changing, millionaire-making wealth. Instead of waiting 50 years to accumulate millions, it can be accomplished in just a few short years. Unfortunately, we are being brainwashed into a lifetime “mediocracy” — go to school, get a job, save 10% of your paycheck, trust your life savings to the stock market, live frugal, and voila, in 50 years you will be rich. Frankly, that prescription for wealth is nothing but a bunch of BS.

MJ DeMarco

Based on this Fastlane philosophy, what is a example business that fits the bill in your eyes?

My current business which is a publishing company that controls the rights to my book, The Millionaire Fastlane as well as any other book projects I might oversee. Examined within the NECST commandments , it is a strong Fastlane candidate.

NEED: I thought that the market NEEDED to hear what I wrote in The Millionaire Fastlane. It is the book I wish I had when I was 20.

ENTRY: Not everyone can both write and publish a book.(Not print-on-demand, but actually own the company and all rights.)

CONTROL: I own the full rights to the book and currently, I am selling translation licenses to other publishing companies in other countries. (Another principle of Fastlaners; we should be net sellers/producers, not buyers/consumers.) After I sell rights, I earn royalties on sales in other countries.

SCALE: A book that has value and an audience can scale to tens of thousands of readers, if not millions.

TIME: The income producing asset is the book and it is on sale 24 hours a day, 7 days a week. I make money while I sleep, just like I did with my internet company.

The essence of the Fastlane is a business that meets all 5 NECST commandments, or most of them.

 

MJ DeMarco

Do you think entrepreneurs are born or made?

That’s a difficult question to answer. I was lead to entrepreneurship by my childhood experiences. However, I believe entrepreneurship to be the best career choice because it carries with it an internal locus-of-control. Locus-of-control is the perception that you are in control over your life and entrepreneurs, whether they are successful or not, will tell you that they are happier. When you feel in control (whether that control is a mirage or not) you are likely to be more happy. This is why a lot of job holders and life long employees are miserable — they never know when that pink slip is coming. This is why people who rely on the stock market for wealth are miserable — they never know when that next market crash is coming and 20% of their savings is wiped out in hours. The happiest turning point of my life was when I was 27 years old and it has remained constant ever since — 27 was the age when I was fully self-supporting myself through entrepreneurship. While I wasn’t rich, I felt rich and that feeling has never disappeared simply because I feel I am in control over my destiny and my financial future.

 
What did you have to sacrifice in order to see your vision come to life?

I sacrificed plenty and it is in the sacrifice where the Fastlane winners and losers are found. Nowadays, there are so many distractions. Facebook, your iPad, the internet, that saved DVR episode of Family Guy — all these choices serve as roadblocks to any kind of success. For me, I remember giving up weekends and evenings to work my plan. My studio apartment bordered a lively bar — I remember being tempted to go out and run across the street and party but instead I chose to work my plan, and only reward myself with partying when I accomplished something. Even today while I have more options available at my disposal, I take gratification as a reward for accomplishment. When people gratify themselves without regard to accomplishment or consequence, the result is long-term pain. This is why we have people enslaved to jobs – they have debts to pay and debt is a consequence of gratification.

Going back to your encounter with the Lamborghini Countach, why the fascination and inspiration?

The spaceship doors that open skyward as opposed to outward. When you’re 13 years old and you see that in person, your jaw just hits the ground. I never was into Ferrari’s although I think they too are visually stunning. To me, if Ferrari was a color it’d be white while Lamborghini would be black. My favorite color is black. When a Ferrari owner moves to the Lambo brand, many of us in the Lamborghini community often express the phrase “welcome to the Darkside” — an implication that Lambo guys hang with the likes of Darth Vadar. =)

 
When did you finally get your first Lamborghini? How was the feeling?

I think I was 36. The Diablo was 34. The feeling is awesome, but fleeting — it’s great to accomplish your dreams but people don’t realize the hard work and effort required to get there. The person who you have to become to reach your dreams is more important that the rush of buying something tangible.

I live in Arizona – one of the few places in America where a top is not necessary. Anyone that knows cars, knows the M-Roadsters have that goofy toupee top. I can proudly admit that my Murcielago Roadster top has NEVER been on the car and has been stashed away in a closet for years. I stepped up to an Murcielago over a Diablo because my Diablo was always needing some type of service. My Murci, on the other hand, has been as reliable as my Toyota which is why I’ve owned it for a few years. I never was moved by the G.

MJ DeMarco
MJ DeMarco

MJ DeMarco

Anything worth considering to upgrade to since the Murci is showing its age?

Probably nothing in the near future. Nothing out there is very exciting to me, at least until I see an Aventador Roadster. I’m kind of getting too old for the speed demon thing. I’m actually thinking about a nice laid-back Mercedes convertible.

 
Lastly, whats your single best tip for people reading this?

By all means follow your passion, but make sure you put that passion into something that the marketplace NEEDS or DEMANDS. Many passionate people are broke and can’t pay their bills because their passion is misdirected into shit that the market doesn’t want, or need. All entrepreneur success stories start and end with a product/service that has a demand.

Quit chasing money — chase solutions and provide value — the money then follows.

We want to thank MJ DeMarco for sharing his story with us. In the upcoming months we will be doing a full review of his book “The Millionaire Fastlane”. In the meantime, you can purchase his book and find him at the following places:

 

MJ DeMarco

 

Secret to Success – Allen Wong

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Everyday someone somewhere is trying to launch the next great app on the iPhone/iPad platform. A quick peak will show there’s roughly 750k+ apps available to download at your disposal. But how many of these are truly successes? Meet Robert Himler’s business partner Allen Wong, a very successful app developer who shares his insight and tips in the elusive world of app development. Did we mention he’s the youngest self-made Lamborghini Aventador owner? Meet Allen of Rego Apps…
Tell us a little about where you got your entrepreneurial mindset and motivation from…

My life story starts with my parents, who were born in the slums of Hong Kong and China. Before they met, they both came to the United States with just the shirts on their backs. My father told me that he was so poor that he resorted to sleeping at a YMCA. Both of them were too poor to afford a decent education when they grew up. So my mother got by by sewing clothes in a sweatshop in NYC’s Chinatown. Meanwhile, my father taught himself how to administer herbal medicine, and treated sick patients in Chinatown. Eventually my father and mother met through mutual friends and got married and had my older brother and me.

Like my brother, I went through the public school system and studied hard. I did not want to disappoint my parents, because they worked hard to give me this opportunity. It would have been foolish and irresponsible if I wasted it. Although my father worked from 8 AM to 9 PM, he still spent the night either studying his medical books, teaching me important life lessons, or challenging me at chess. My mother always made sure that we got to school on time, signed us up for extracurricular activities, and limited the amount of TV we watched. Because of this great parenting, I was able to attend a top college in California majoring in computer science and computer engineering. I spent my spare time in college creating and selling computer programs as well as developing websites for different businesses. After I graduated from college, I started my career at a big tech company.

However, a few months after I had started work, my father passed away unnaturally. My mother suffered from severe depression because of this, so I moved back to NYC to be with her and started working at Columbia University. This was around the time when the iPhone app store started accepting new apps. At the job, I asked them if they could give me a MacBook as my work computer, because you needed an Apple computer to code and submit apps at the time. As soon as I got my MacBook, I learned how to code in Objective-C on my own by reading books and playing with the code. Ever since I was young, I had a fascination with learning new skills and using those skills to help people or create things that helped people. My father was the same way, and as you can see, he was a great role model for me.

What impact did your father’s passing have on you personally?

As I mentioned previously, my father was my role model, and he had a great impact on my life. He was dealt a bad hand when he was born into a poor family in China. He did not let this unfortunate upbringing deter him from striving for a better life, and most of his life lessons came from this hardship. Because he could not afford to buy video games for me, he used to play chess with me, which taught me how to plan ahead, strategize, and predict other people’s actions. He taught me how to draw pictures and take photographs, which taught me how to be creative and eventually helped with my graphic design talent. And most importantly, he worked long hours at work and taught himself how to do everything on his own. This was the type of attitude that influenced me to persevere during stressful times, and to take my education onto my own hands. His passing was unexpected and gave my family a burden that no family deserved. Since I was the only one making money at the time, I had to step up as the breadwinner for the family, despite being only 22. While my peers were slowly eased into adulthood, I was pushed into the deep end of the pool without warning. I went from being a dependent to an independent to an independent with dependents within the span of a few months. So, his passing fast-forwarded my life, and the burden, responsibilities and stress I received strengthened my character.

What did you study at college?

I chose computer science, because I had already been making websites and coding C++ and Java programs in high school. I created my first website in junior high school and learned how to build my own computer even before that. As a child, I was always curious about how things worked, so I would take things apart and put them back together. That is how I learned to build my own computer, and why I also majored in computer engineering. I was also one of the first people on the internet back when I was still in elementary school and one of the first people in my school to have his own website. Because our family used to be so poor, my brother and I used to go around the neighborhood during trash day and pick up computers that people had thrown away. We would salvage parts from the computer and either use them as spare parts or add it to our existing computers. I did not even get to buy my own computer until high school. To this day, I still build my own computers and try to stay on the cutting edge of technology by learning and adopting new technologies on my own.

 
You mentioned that you created programs and websites during college, what kind of work did you do?

My college and several other companies hired me to be a web developer while I was attending college there. They were all part-time jobs that paid well. Before then, I learned how to code HTML, CSS, and Javascript while I was in middle school. By the beginning of high school, I was already making animated and interactive websites using Flash. This was my first crack at beautiful user-friendly interfaces for users. I eventually taught myself other advanced languages, such as PHP and SQL, to further develop my web developing skills.

My two college majors did not focus much on web development. They focused on C++, which was a programming language. Since I was a major gamer, I used to code programs for games like World of Warcraft. During my freshmen year, I was selling these programs and making more than what my father was making. By the second half of my freshmen year, I was starting to pay off my own college tuition.

How did you pick up all the knowledge and skills? How did it lead to iPhone app development?

I am a quick learner, so I learned how to code Objective-C in less than a week. Once you know one computer language, it’s very easy to pick up another computer language. You just need to learn the differences between the two languages, because all the basic logic is the same. Most of my profitable skills (designing, coding, web developing, and etc.) started off as fun, creative hobbies, and making iPhone apps was no different. Even though I only made a few bucks daily in the beginning, I was not deterred by the small profits for my hard work. I was determined to create better apps for several reasons. Firstly, I was the only one in my family with a job. My older brother had trouble finding a job, because nobody was looking to hire a newly graduated PhD during a recession. So, I took every opportunity to convert my free time into extra cash, because every dollar helped. Secondly, it was always my dream to create something useful that would help people. It was less about the money and fame, and more about making this world slightly better than it already is. Thirdly, even though I don’t believe in ghosts, I still wanted to make my late dad proud.

 
What kind of challenges did you face early on? Wasn’t it a gold rush to create the next big app?

The challenge was that there were not many iPhone developers at the time, so you pretty much had to learn everything on your own without the help of anyone. Nowadays, you can just search on the internet for your programming question, and there will probably be a dozen developers who would have posted an answer to your question already. It was a gold rush in the sense that there was not much competition at the time. The big companies had not yet stepped in during the first year, so you were mainly competing against other independent developers. Since I knew how to do graphics design, web development, user-interface creation, programming, and marketing, I was basically my own company. Most developers were either great at coding or great at graphics design. But rarely were they great at both. And for those who were great at both, it was even more rare for them to know how to market their apps. Thus, I had an advantage over the rest, because I could do all of those things. Nowadays, apps are created by a team of people, and you will rarely find apps created by just one person in the top charts.

What were some of your first few iPhone apps?

My first app was a browser that removed the toolbars, did not save your browsing history, and allowed you to view websites while offline. It was a great alternative to Safari. One of my first successful apps was called News Feed Elite, which was the #1 news app back in 2009. Using the technologies I developed from my browser app, I made an app that made it easy to view various news sites. It was successful, because it allowed you to scroll through websites by tilting your phone, save news articles to be read at a later time (even offline), block ads, share sites to Twitter/Facebook, and other things. It basically paved the way for the other popular news apps you see today. All of my apps were paid apps, so I made money from satisfied customers who used my apps.

 
Your most successful app to date is your 5-0 Radio Police Scanner…

5-0 Radio is currently and has been the #1 police scanner app for the iPhone since it was created in 2009. To date, it has been downloaded by at least 10 million people. It currently is the #1 news app, and at its peak, it was in the top 10 paid apps in various countries. People had many uses for this app from monitoring crime in their neighborhood to getting live alerts about hazards in the region to keeping in touch with family members who were in the force. People have used this app to get early tornado warnings, hurricane warnings, flood warnings, and other news before the radio and TV broadcast them. It made it to the top charts after I added internet radio stations to the app and created a free ad-supported version of the app. Other copycat apps have since popped up and saturated the market. However, my 5-0 Radio app is still a top seller and is the among the top 100 most downloaded app in 2010 and 2011 according to Apple’s end-of-the-year report.

 
Where do you get the inspiration and ideas for apps you develop?

It was never about luck. Apps have to click with the users. The litmus test is to see if even you will use the app yourself. That is the test I do whenever I code a new app. If I am not using the app myself, then I think it is a failure. At that point, I’d either scrap the idea or keep improving the app until it got to the point where I liked using it.

News Feed Elite was one of those apps that I put a lot of time and effort into. I’d listen to user feedback and implement the changes they wanted. I’d use the app everyday and implement the changes that I’d like to see myself. By making an app that people want to use, the app promotes and markets itself, because users will tell their friends and family to download the app.

I grew up in New York City, where an emergency vehicle blares its sirens every few hours. There was a curiosity as to what was going on, so I did my research on police scanners. That’s when I realized that it would be great if I could have the police scanner technology on the iPhone, so that I could listen to it even if I’m not home.

 
What other apps have you developed?

Since then, I coded several other successful apps, such as Drudge Report, HiDef Radio, and Razzi Photo Editor. I’ve also recently released an alternative version of the 5-0 Radio app called, Police Scanner+ under my new company, Rego Apps. Currently, it is the #2 police scanner app for the iPhone/iPad and is quickly catching up to 5-0 Radio. Its focus is on a cool futuristic user interface with more emphasis on the music stations that are available in the app.

I also recently published a game for Fancy Pencil LLC called, “Slash It!” Fancy Pencil LLC consists of established software developers and designers, and I am only responsible for coming up with the game ideas and marketing them. The company does all of the game coding and graphics. “Slash It!” was released on March 9th, 2012, and was the first iOS game I ever published. If my marketing strategies still work and people see how fun this game is, this game will be a big hit.

 
What is the secret to creating a successful iPhone app?

The most successful marketing strategy is to have a great icon, great screenshots, and have at least a 4.5 out of 5 stars average ratings. If your app is constantly getting 5 star reviews, then people love your app and are willing to tell their friends about it. Very rarely will an app with less than 4 stars stay in the Top 100 paid apps for long. 5-0 Radio is actually a rare success story, because it stayed in the Top 100 (both paid and free) for at least two consecutive years. Statistically, that is a feat that less than 100 apps have accomplished. I still meet new people who have told me that they have downloaded 5-0 Radio before I even met them, and they said that they got the app because their friends told them to. That word-of-mouth type of marketing is the best type of marketing a company can wish for. I personally would trust my own friends’ opinion to download a new app over the opinion of some random banner ad on some website. I have yet to spend a single cent of marketing on any of my apps. If the app is great and people love it, it will market itself.

You can obviously make great money from apps, from your experience is it better to monetize through ads or by selling an app?

I actually have a mix of both free apps with ads and paid apps. There are free versions and paid versions of all my popular apps. I’d say that ad revenue is only half of what the paid apps make even though the download rates for the free apps are usually ten times higher than the paid apps. One of the differences is that ad revenue grows in time as more and more users use your apps. Whereas, paid apps only grows if more and more people buy your apps. While apps don’t tend to stay in the Top 100 charts for long, ad revenue does stay more consistent if the users are still using the app long after its popularity has waned. Thus, there are pros and cons to both free and paid apps, so it is better to just have both.

 
With app development, is it truly passive income? How much time and upkeep is needed?

You don’t really have to update an app at all after it is complete. If you are confident that the app does not have any more bugs and the reviews are good, then your work is complete. The only time you would want to update the app is if you feel like it. Apps are definitely a great source of passive income. I barely modified 5-0 Radio for the past year and a half and it is still highly rated and highly downloaded.

 
You mentioned your new company Rego Apps, what other ventures are you involved with?

Right now, Rego Apps consists of myself only. It is a new company I formed to sell my new Police Scanner+ app to compete against my Smartest Apps’ 5-0 Radio. The idea behind Police Scanner+ is that I wanted to make a brand new interface to 5-0 Radio with never before seen features. If you compare the two apps, you can barely tell that it is made by the same developer. However, I know that some users don’t like to see changes (for example, not everyone welcomes Facebook’s interface changes). So instead of updating 5-0 Radio, I created a brand-new app. And since I didn’t want users to feel like I was reselling the same app to them, I put it under a new company name.

But Rego Apps and Smartest Apps are not the only companies I own. I also own a part of Razzi LLC along with Robert Himler and Michael Fussy. I coded the app for their company in exchange for part ownership of the company. My app has been responsible for doubling Razzi’s user base after the apps first release (with over 10,000 downloads on the first day alone), and increasing Razzi’s new user sign-up rate by over 2000%.

How did you and Robert Himler link up to become business partners?

We linked up because we had a mutual friend. He and I both knew the president of the Lamborghini club of America for the northeast region. He recommended us to meet because we both had a lime green Gallardo, moved to Orlando, and made our fortunes from websites. So Robert and I exchanged emails and met in June of 2011. We realized that we shared many similarities and became close friends quickly. A few weeks later, I attended his final presentation for college, which was about Razzi. We both agreed that the missing ingredient to Razzi was a powerful app. Since I pretty much was finished with my 5-0 Radio project and had spare time, I decided to take on the Razzi project in exchange for a share of the company. So, by Fall of 2011, we released the first version of the Razzi app. The app was well received, and the reviews have been very positive. Some very big YouTube Celebrities, such as Charles Trippy and Toby Turner (Tobuscus), have been uploading pics through the app on a daily basis and earning high ad revenue via our Google Adsense revenue sharing program.

 
 
What’s next for you? Do you plan to try to repeat your success into the Android market?

My next project for my company, Fancy Pencil, is on making video games for the iPhone. We recently released a game for the iPhone and iPad called Slash It! We already have more games in the pipeline. As for my own personal coding projects, you’ll just have to wait and see. One of the ways of being successful in the app business is by being the first to do something new with an app.

 
I’m sure many readers will want to get into the app game after reading this. What’s your best advice?

Spend a lot of time on the icon and screenshots. Those two things are probably the first two things that customers look at. Customers tend to judge apps by the quality of the icons and whether the screenshots look interesting. Even the description of the app is rarely read. My next major advice is to address the negative feedback that you receive. Do not take constructive criticism personally. Instead, try to fix your bugs and add the features that users are requesting. If your app’s reviews are not constantly averaging with 4.5 stars or higher, then you need to either fix your app or come up with a new app.

So the word on the street is that you rewarded yourself with a nice gift after your apps went mainstream. What did you buy yourself?

I eventually became overwhelmed with juggling a full time job, creating apps on the side, taking care of my mother, and maintaining a social life. So, I bought a brand new Lamborghini LP560-4 to deal with the stress. I know, I know; I could have just got a stress ball for much less. But it was my dream car, and so far, it had done a great job at putting a smile on my face each time I drive it. The car had also put a smile on everyone else’s face, and helped raised money for many charity events, so it still fitted into my ideals of making this world a better place. Before the car, I never really spent any of the money I earned on myself (I was living with my mother and the Lamborghini was the very first car I bought). My mother, who’s very fiscally conservative, abhorred the idea that I was getting an overly expensive and flashy car. But my brother later told me that when I was taking delivery of my new Lamborghini, my mother had a proud look on her face and even became a little teary-eyed.

The LP560-4 looked the most beautiful to me at the time. I liked the sharp lines that were on the car compared to the Murcielago or the Ferrari’s, Maserati’s and Bugatti’s. It is not modded, because it is my daily driver. It would have been overkill if every time I went to get groceries, flames would come out of my exhaust.

Now you raised the bar again by not only adding a Lamborghini Aventador, but also becoming the youngest self-made owner. What can you tell us about this latest purchase?

The build date for the car is June 2012. It will be one of the first 2013 models to hit the shores of the U.S. The wait period was over a year. Currently, I have all the options available for the car. I also chipped in for the Ad Personam program, which is only available in the newer 2013 models and not available to the first models. I have plans for a rare never-before-seen body color for the car.

The body will be in red carbon fiber, the trims will be in black carbon fiber, the rims will be a matte graphite, and the brakes calipers will be in red. This will be the only Aventador in this color scheme, unless someone copies me in the future. I will post pictures of it on my Razzi account when I get it.

As for mods, I have plans for adding a twin turbo on it if it doesn’t become my daily driver. If it does become my new DD, then I might mod the LP560-4 instead.

 
We want to thank Allen Wong for sharing his success story with us. For more information and to get in touch with Allen you can find him at the following locations:
 

Rego Apps

 
 

Smartest Apps

 
 

Razzi

 
 
Also take a moment to support Allen by downloading and using the apps he has developed. By clicking on their respective icons below you will be redirected to the iTunes app store.
 

Secret To Success – Amy Sangster

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When it comes to Success Stories featured on Secret Entourage, we have yet to showcase a female… well until now. It should be no surprise, but some of the brightest Gen Y entrepreneurs happen to be female as well. It’s our pleasure to introduce our first female success story with forex trader Amy Sangster. Read how Amy went from a short tenure as a flight attendant, to opening up her own forex education system. Oh and she has a passion for twin turbo Lamborghini’s as well.
SECRET ENTOURAGE (SE): Welcome Amy! Tell us a little bit about yourself!

Amy Sangster (AS): I grew up as the youngest of 3 children in Brisbane, Australia. My mother was a primary school teacher, and my father the manager of a government organization. We all lived together, until I was 15 and my parents divorced. The effect this had on me, coupled with the fact that I was a perfectionist and very into sport, saw me become anorexic and depressed. I began to get better when my mother, brother and I moved out, and was back to being myself again after about a year. This was the first experience I remember that showed me the massive part mindset plays in life. Most people are saddened when they hear that kind of thing, but I wouldn’t be the person I am today without these experiences, so I’m actually glad my story began that way.

 
SE: Before you found your true passion and calling with forex, what were you doing prior to that?

AS: After graduating I was a flight attendant for a little under a year while I decided what I really wanted to do. All I knew was that I didn’t want a regular 9-5 office job. I graduated with grades that allowed me entry to basically any university course I chose, but given I wasn’t sure what I wanted from it, I thought I may as well see as much of the world as possible while I made some decisions. Although it wasn’t the “glamorous” job as it’s sometimes depicted to be, I’m a big believer that everything happens for a reason. My time flying certainly confirmed that.

SE: As fate would have it, something did occur during your tenure as a flight attendant. Tell us what happened?

AS: While I didn’t work for Virgin, I was offered the chance to wait tables at Richard Branson’s annual Virgin party. I jumped at the chance, because A) it’s no secret he knows how to throw a party, and B) it gave me an opportunity to meet the man himself. Each waitress was assigned a group of tables, and after pulling a few strings, I found myself taking care of Branson and his guests. He was one of the most charismatic people I’ve ever come across. There wasn’t just one thing about him that inspired me, it was simply a combination of his positivity, happiness, charisma, modesty, vibrance and prosperity – he was living the life I wanted, while making a positive difference in the world. I’d now witnessed it first hand and knew I wanted more.

SE: With this sudden boost of energy and motivation, what was the next step for you?

AS: During the time I met Richard Branson, is when I decided I wanted to do more with my life. This led me to study finance at Queensland University of Technology, which after studying for a year and a half, taught me purely how to work for a company rather than build my own.

I knew after attending the first class that it wasn’t for me, but decided to persist and try work my way through, as initially I didn’t have any alternate plans in mind.

SE: You only lasted a year and a half at college. Do you ever look back and regret it?

When most people think of a “college drop out” it’s rarely a pretty picture, so understandably most people assumed it was a bad decision and were fairly negative. Those who know me though know that telling me I shouldn’t do something or that it’s a bad idea only motivates me to do it more! It was by far the best decision I could have made – why waste close to 20 hours a week and tens of thousands of dollars obtaining a degree that was teaching me to become an employee (the exact opposite of what I wanted to be!). Regardless of the money it saved me, the ideas you can pursue and things you can achieve with extra time on your hands is priceless.



SE: Forex can be quite intimidating, even if your background is in finance. How did you get introduced to it?

AS: My good friend Lewis Mocker introduced me to Forex trading. I always knew of Lewis as we went to high school together, however, we only really began talking when a mutual friend of ours properly introduced us to one another. He has been trading or learning about trading basically all his life, as his father (a trader of almost 30 years) opened his first brokerage account for him at age 8.

I am always interested in learning new things and when I saw his flashing monitors that looked impossible to decipher, I knew I wanted to understand and conquer it! Lewis pointed me in the direction of a few websites that explained the basics and I was hooked. I realized the flashing numbers were not as intimidating as I first thought, and that if I could succeed at that, it could provide an alternative to the university or job options I so greatly despised.

 
SE: Even with Lewis guiding you initially, how long did it take for you to get comfortable with Forex trading?

AS: I was fortunate enough to be taught correctly the first time, therefore I learned the theory behind it over a one to two month period. There’s mountains of information online which is impossible to sift through if you don’t know where to start and who to trust. That’s why I’m extremely grateful I had someone to help me get started and teach me the mindset necessary right from day one.

Although it sounds cliche, mindset in trading is the difference between winners and losers, not strategy. Sure, you do require a profitable strategy, but the reason so many people are unsuccessful over the long term is because their mindset renders them unable to implement their strategies. I traded a practice account for about 4 months, as I wanted to become emotionally detached from the market, while proving to myself that A) the strategy was profitable and B) I could be consistent. As I had been taught correctly I found the transition from theory to practice to be an easy one, and I haven’t looked back since.

SE: You mention mindset as a contributing factor to your success, how did you overcome your fear of losing money and failure?

AS: As I mentioned earlier, strategy is easy. Learning to become emotionally detached from the market (or your account balance) is the hard part. Being technical traders, we work off probability and trade on the basis that our strategy will come out ahead over time. This is vastly different from the usual mentality of trading to win (every trade), where fear of losing plays a massive part. Our account balances can fluctuate significantly in the short term, so being immune to fear and greed and focusing on the bigger picture is essential. I was lucky that I had no prior experience (or bad habits I’d have to unlearn) and was taught the right way from the start.

I made a rule for myself that regardless of how “ready” I thought I was at the time, I had to demo trade for at least 4 months before putting real money in the market. I think this was what helped the most, trading for 4 months with no real risk or reward got me in the habit of disregarding the outcome of each separate trade. I kept a record of all trading activity with the average weekly/monthly returns. Seeing that this was consistently positive overall gave me confidence to continue what I’d been doing with a live account.

 
SE: Once you started playing with real money, did you go up or down initially?

AS: I was lucky, the first week I went live I made about 10%. At that point I was in the right frame of mind not to let it get me too excited, as my time trading a demo account had proven to me that consistency, not big profit, was the aim. I knew that just as easily as I made it, I could lose it. As long as my overall percentage per week/month was positive, it showed I was following my strategies and trading well. Normally people talk about volatility in negative terms, but the way we trade that’s actually when we’re the most profitable, as our strategies are designed to capture big movements. When markets are choppy or ranging is usually when progress is slow. I’m sure I sound like I’m on repeat, but mindset really was the determining factor to my success. Had I not been trained in that area, I may have ended up like most other traders, become overconfident and started risking ridiculous amounts each trade. I also could have ended up quitting during the slow periods, like many others who haven’t been taught how to take losses.

Most people are curious how you can live off trading. I pay myself monthly but reinvest where possible so compound interest can work in my favor.

SE: Are there short cuts to success in Forex trading through programs like Forex trading bots?

AS: I would NEVER recommend using a trading bot. While strategies can be taught, I definitely believe there is an aspect of human thought required to correctly execute them. The bots may perform exceptionally well for a short period of time, but what about when the markets change? What if there is another event like the earthquake in Japan or a government intervention that has a massive effect on the market? A bot is not going to react and respond to this the same as a human. It is easy for people who are unfamiliar with trading to get suckered into these systems that require no effort and promise exponential returns.

Lewis’s father has been trading for over 30 years and passed his strategies onto Lewis who shared them with me. Lewis and I have modified them slightly to better suit the way like to trade, but for the most part they remain the same. If something isn’t broke don’t fix it!

 
SE: Forex has quite a steep learning curve, what are some resources you would recommend?

AS: Before Infinite Prosperity was live we were recommending that people check out http://www.babypips.com/school. I read this site initially to familiarize myself with the concept, and loved the way it explained everything in layman’s terms. We took this approach with Infinite Prosperity, only we have expanded the content to incorporate strategies and mindset as well. Nevertheless, Babypips is a great place to start to learn the very basics.

 
SE: With your experience, knowledge, and success, you are looking to teach others through Infinite Prosperity. Tell us about that…

AS: Infinite Prosperity came about as Lewis and I had friends who’d heard of our results and were keen to learn what we did. We started teaching them in our offices each night and found that it was an amazing feeling to help others “get it” the way we had. After a few more people became interested in learning, we decided we didn’t have the time to teach everyone separately, but that we wanted to share our knowledge on a larger scale. We hated the fact that larger companies presented their lessons in such a formal/complicated manner, as it discourages and often intimidates people. For that reason we started writing/recording lessons, and a year later we’re launching Infinite Prosperity.

We’ve kept our lessons as simple and informal as possible and pride ourselves on the fact that we don’t “sugarcoat” the realities of trading like many other education companies. The idea was to replicate the exact style in which Lewis and I were taught, rather than design lessons that would “sell”. After working on it for close to a year, we’re extremely excited to share it with the world!

We will be offering 3 tiers of membership initially which are priced as follows:

> FREE

> Silver – $399 (one time payment)

> Gold – $599 (one time payment)

We’ve kept prices as low as possible so that everyone has the opportunity to get involved. Most trading education is typically presented through seminars, which pushes the prices out to approximately $5,000. We believe online courses are much more convenient and cost effective. Full details on what each membership includes will be available on the website.

Our thinking around the free membership was that Lewis and I personally wouldn’t purchase anything, especially education, without getting a feel for what’s contained in the rest of the course and the teaching style used first. Our free members get to check out our first lesson and understand the basics of FX, before jumping into a paid membership. The Silver and Gold course allows members access to our full set of lessons, the main differences being the one on one support and journaling software included in the Gold package.

SE: What is one tip someone can learn inside Infinite Prosperity that they won’t find elsewhere?

AS: Most people think Forex Trading is risky, which it can very well be if you don’t appropriately manage risk. One of the first things we teach is to never risk more than 1% of your account per trade. The most common mistake we see is those that were trading prior to taking our course, that were risking absurd amounts (I’m talking 50% of their accounts) each trade. This is where Forex (and trading in general) get’s its risky reputation from.

Another thing many traders don’t understand is the theory behind losses and drawdown. Anyone can take profits all month long, but the mark of a true professional is to able to take losses and still move forward with confidence and consistency. Many beginners don’t fully understand the concept of probability and random distribution. Most amateurs believe a strategy that makes money 70% of the time should win 7 in every 10 trades… this is simply not true. Any outcome based on probability is governed by the law of large numbers and is subject to a phenomenon called random distribution. Although a trial may return a 70% success rate over time, it certainly doesn’t mean it will be successful 7 times out of every 10. In fact, we have developed a probability calculator for our students to demonstrate that even a 70% strike rate model can and will eventually suffer a losing streak of 12+ trades in a row. If you are risking 10% or more of your account on each trade that means your account will be completely wiped out despite the fact that you trade a profitable strategy!

SE: As a young successful female entrepreneur with no college education to your credit, what kind of negativity do you face?

AS: Unless you’re extremely lucky, there will always be times where things don’t go as planned or your motivation plateaus. I think one of the biggest things I had to deal with was the negativity received from others. Given I don’t exactly fit the mold of someone you’d typically expect to work in my industry; people have strong opinions about what I do and how I do it. At first, it affected me a fair bit and my motivation suffered. I’ve learnt now that it would be the same regardless of who I am and what I’m doing. The fact is that if you’re doing something different, you need to be prepared to face opposition- the best thing you can do is use it to fuel your fire.

 
SE: As someone who was influenced and motivated by individuals such as Richard Branson, what impact do you wish to leave on society?

AS: After experiencing traditional education, my aim is to make alternates to this more widely known and easily accessible. I am disgusted by the education system, and the way it suppresses creativity in lifestyle. From the first day we attend school, we are taught to achieve good grades so we can apply for the best jobs, and ultimately work in them until we retire at 50 or 60.

At no time did my teachers ever promote entrepreneurship or an alternate way of life. My goal is to provide information on how to create a more prosperous lifestyle and ensure it is readily available to people from all walks of life. I was fortunate enough to be introduced to currency trading early on, which is why I launched Infinite Prosperity with my business partner Lewis Mocker, so others can follow suit.


SE: Now it’s expected to receive some flack and criticism as success often comes from old age and wisdom learned throughout those years. What do you say to doubters or naysayers?

AS: We frequently receive opposition from those that think our age renders our stories irrelevant, but given that we’ve achieved our definition of success in our early twenties, something that many people never achieve in a lifetime, we beg to differ. Regardless of who you are, or what you do, if you’re doing it well, someone will always have something to say about it.

SE: It’s quite common to see guys in Lambo’s but a young attractive female is a whole nother story. Why did you pick up a Gallardo?

AS: I had always wanted an R8, but after seeing this car I quickly changed my mind. The presence of a Lamborghini is hard to beat! Picking it up was a surreal feeling. It took a little while to sink in but after a while you realize that it’s just a car. Don’t get me wrong I absolutely love it, but it certainly made me realize that I much prefer experiences to material things. Although I hate that material possessions have any impact on people’s opinions, you are treated differently when people see the rewards of your work. It’s been great for meeting like-minded people and making friends with similar interests.

The reactions are funny too! I frequently get asked if we own the cars or not. Most are pretty surprised when they find out it’s mine, not my boyfriends or my parents like they assume!

SE: Word on the street is you’re jumping right into a twin turbo build?

AS: Sure is. Because of Visa laws I had to leave the states for a couple of months and was initially looking to sell my car. The car’s being worked on as we speak by Covert Tuning Dynamics, and should be complete by the time I’m back in the states (a few months).

 
SE: With all this said, what’s next for Amy Sangster?

AS: New opportunities present themselves everyday, so it’s hard to say exactly what I’ll be up to next. One thing I am certain of is that each day I’ll set aside 20 minutes to trade, and that I’ll spend the other 23 hours and 40 minutes doing something I love!

 
SE: We want to thank Amy Sangster on sharing her story and congratulate her on her recent launch of Infinite Prosperity. Members of Secret Entourage will receive a 10% off discount for Infinite Prosperity.
You can contact and follow Amy at the following places:

Secret To Success – Barry Doyle

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As SE has reached new heights, so has the exposure to entrepreneurs who want to be featured. Most entrepreneurs simply just want a plug for their business but other entrepreneurs like Barry Doyle want to share their successes and failure for others to learn from. Barry is a young entrepreneur who dropped out of college to eventually manage multiple companies ranging from online marketing to exotic car parts. Quite a number of valuable lessons can be learned and Barry is here to tell us his story…
Tell us about your childhood and where you got your entrepreneurial traits from…

I grew up like a regular middle class child. I certainly wasn’t born into money but I’ve always been very entrepreneurial-minded.  I remember I was really into drawing in grade school.  I remember selling drawings and then got into mowing yards, basically anything that allowed me to earn money.  I liked the idea of being able to work for yourself and capitalized on that.

 
What does your educational background look like?

I went to Georgia Tech for Mechanical Engineering.  I have always been very interested in the mechanics of how things work.  I like to be the jack of all trades, the master of none.  I want to know how everything works, know a little about a lot. Being interested about things in that manner growing up made mechanical engineering very fitting to go into.  Having said that, I never did graduate, but I’m actually still kind of frozen in my senior year at Tech. I had dropped out in good academic standings.  I can go back at any point and finish it if I wanted to.  At this point, I don’t need to jump through hoops to get a piece of paper that’s not going to benefit myself.

 
Have you ever had a ‘9-5′ job in your career before?

I worked with a group of friends at a company involving drag racing engines.  I didn’t have any vested interest in this. I didn’t have any ownership in the business but for several years, I helped grow the business.  We kind of collectively worked together as a group of four guys that just didn’t want to have a boss telling us what to do and grew this business that became eventually, over just for a short amount of time, a multi-million dollar business that is huge in drag racing and has since ventured into a number of other things.

 
What lessons were you able to take away from that job?

That was a very valuable opportunity because it allowed me to be able to try a few things, suggest a few things, and see them go into action without having anything of my own.  It wasn’t my own company.  I wanted to see it succeed for the benefit that the more the company made, then the more money that would be available for payroll.  We could all make more money at the same time, and I did not sweat it because it wasn’t my finances or my time that were at stake here.

What was your first real company on your own?

The first real thing would be branching into the trailer industry with Trailers For Cheap.  We did sales and service of trailers, basically being a dealer for manufacturers like Haulmark trailers.  They manufacture enclosed car haulers, motorcycle trailers, and cargo trailers.  The opportunity came from working for an industrial equipment company that was working on a lot of trailers and accessories, and it was just going to be something that would kind of supplement the business.

 
Why do you think you were able to succeed with Trailers for Cheap?

I feel that regardless of what the industry is, there is essentially a recipe that you can follow from a generic standpoint that will drive any business to success.  It’s keeping a reasonable overhead, not trying to grow too fast, and not branching out too fast. With any business, you find an idea that you can market.  You figure out what demographic, what group of people you need to reach, and where is your money best in reaching these people, and then from there, it’s adapting with feedback and just building relationships and going from there. It seemed that overhead was one of the first things that kills a lot of companies. They get in too deep and they don’t have the cash flow to be able to support the operation at the scale it was currently at.

In what ways were you able to generate new customers?

Through advertising in a number of places, starting with advertising on eBay.  We also bought ad space on racingjunk.com, which was a huge site in drag racing so there are a lot of guys who are looking for car haulers there.  You’ve got to have a little bit of budget for advertising to get something to get going.

I learned a lot through SEO (search engine optimization).  Uniquely enough, in the trailer industry, a lot of the business is still very old school.  Nobody makes use of social media.  They don’t understand the importance of search engine optimization.  These are websites that were built in 1996.  They are not using a content management platform.  Half the links are dead links when you try to click on them.  They don’t understand that our generation, the people that are becoming the buying power of all these respective companies, we go online to find anything. I didn’t know a lot about specifically how search engine optimization worked, I just knew that it’s very important.

 
 

At the company I had worked for doing the race engines, they had brought somebody on that was basically a web developer. He did a little bit of everything and I had learned that was probably one of the best hires we had. It was cheap to bring somebody on and the benefit they brought the company was exponential. Once in my own ventures, I put an ad out to hire for a person with a similar skill set. I ended up finding someone that was a great fit. He was local too so I ended up putting a desk in my office and he worked in my office Monday through Friday from 8-5. I’m a very hands on person so not only did he do his job, I wanted to know about it myself. On top of that, I wanted him to build a couple of websites for me and things like that so it’s easier if they work onsite.

 
What was your next venture after Trailers for Cheap?

From there, I realized the opportunity of search engine optimization because I would start telling people about it.  They want to know what we are doing to generate the calls because that was an industry that had been flooded with companies doing the same thing. That evolved into the Exposure Group which was something that was going to be contract service for web development and search engine optimization that basically offered the same things that he was able to offer me as an employee in my office but to everybody else.

My web developer was going to be able to handle the technical side of things. Also he essentially already had a network of people, mostly in India because you could have labor so cheap, you could pay a guy that’s very qualified for full-time work. They would work for us 40 hours a week every month and $350 would be his pay for the whole month. There is somebody here for everything on our team from graphics to helping with the copywriting, basically anything for building content, writing blogs, even using some things that are more gray hat areas.

 
You mentioned you were developing websites, did you create anything substantial?

Actually, one of my biggest current projects is Silent Rewards and that is based on the affiliate marketing industry. My web developer would always keep an eye on different opportunities and sites he could buy. With Exposure Group, we purchased this company that was already an existing company.  It had been running and doing well. It had about 15,000 users on there that were constantly doing things and so we bought it. It was something you can go to and you can take part in offers.

 
 




How does Silent Rewards operate?

For example, you would see an ad for a Netflix offer where you can get a free month of Netflix. On our site, you would you earn points towards this offer.  So, if you want to do a free one month trial of Netflix, you’re going to earn 800 points to do it.  Well, 800 points is worth about $8 so you can do anything from cash out that money through PayPal, redeem it for an Amazon gift card, Hollister, or different clothing companies, etc.  Simply put, you can get gift cards or cash for doing offers.  Even smaller things like simple surveys.  There is a huge opportunity out there to be able to earn money so it’s great for the younger demographic.

 
What was the cost to buy a website/business like that?

It was about eight months of revenue.  I learned that 8-10 months of revenue is about what you will pay for a site.  If you have a site that can earn, say, $10,000 a month, you would expect to pay about $80,000-$100,000 for it. If you keep it doing the same thing in 8-10 months’ time, you’ve now got something that has paid for itself and you just have $10,000 a month to blow on whatever you want.

 
How is Silent Rewards performing since you took over?

It had laid dormant so a lot of the users had left and weren’t really interested in it anymore so it wasn’t doing very much money. It’s the first time that I’ve actually taken an established business, purchased it, and tried to get it rolling again.  That is something I’m heavily involved in right now.  I’m really excited about it.  It’s fun because I like a challenge. I enjoy the entrepreneurial style of starting something from scratch and breathing life into it. Silent Rewards is fun because it’s my first venture into the whole affiliate marketing scene.  Somebody else has already done big things with it but is not doing it right now.  It’s fun because it’s an opportunity and definitely a challenge.

 
Tell us about your latest venture Exotic Clutch Technologies (ECT) that seems to be a big focus at the moment.

The main thing that we do is we build after market clutches for Lamborghini and Ferrari. We use Kevlar for the actual clutch material, the same material used in bulletproof vests. We offer a dual friction set up which is going to be a Kevlar and ceramic.  Basically, the benefits of these things as many people know in the exotic car industry, the stock clutch in the cars does not last long.  It’s for a number of reasons.

Let’s take Lamborghini for example. The Gallardo is one of the highest produced exotic cars of all time. The Gallardo uses a ten and a half inch twin disc clutch while they are trying to keep a low center of gravity, keep a small rotational weight, they made the clutch very small.  The material they used, it just wears really fast. In many instances, the clutches last at 6,000-8,000 miles with 13,000-15,000 miles being about the average.  The use of it wasn’t a problem because it would take somebody a long time to put 13,000-15,000 miles on an exotic car.  Now, Audi owns Lamborghini and the cars have Audi technology so everything about the car from the engine to the brakes to any other area could easily be a 100,000+ mile car and that’s becoming much more mainstream knowledge so people are actually starting to daily drive their exotic.  So you’re seeing a lot of Gallardos out there now at 70,000-80,000 miles on them.  There’s no reason the engine can’t go longer than any other part.  The only weak point in these cars and the only significant expense in ownership is just the clutch itself.

How much would someone save by using your clutch vs an OEM clutch?

You’re going to pay around $7,000-$8,000 for parts and labor, and you’re going to be doing that around about every 10,000 miles or so.  It also depends on location, how hilly the area is, or driving style, how you drive the car, you may be seeing only about 10,000 miles.  It’s not unheard of at all.  In 30,000 miles, you paid three times for parts and labor.

Let’s say you’re at $7,000, during your ownership, you spent $21,000 to drive the car 30,000 miles not counting all the other expenses for brakes and what not.  The biggest expense for ownership is the clutches.  We built something that will last about 300% longer so you’re going to have three times the life.  You’re going to buy one clutch for every three.  You’re going to pay the installation one time for every three, and then there are other benefits too.  The clutches will withstand most power and torques if you’re wanting to do more modifications.  We’ve had one of our clutches behind a twin turbo Lamborghini Gallardo that’s making 1,000 horse power to the wheels and still has not slipped.  It has no problem withholding that and again, it’s not in the back of the guy’s mind every time he goes to drive it wondering how much more worn his clutch is before he has to spend another $7,000.

We do installs here as well as we have a number of dealers and then there are number of independent shops that carry our product.  You’re talking about $2,000 to install it and around $3,500 depending on which clutch you’re getting so you’re going to spend roughly $5,000. You’ll spend less at one time than you would have the one time for the stock one and only going to do it one third as often.  It sells itself.

 
How were you able to gain acceptance in the exotic car community with a new product?

For me I knew that a dealership is not going to install an after market clutch so I didn’t want to reach people that they take their cars to the dealership for maintenance.  My money would be best spent reaching do it yourself folks. I realized the best place to advertise is going to be Lamborghini Talk, it’s a forum and I had been a member on the site for a while and noticed that there were a huge group of do it yourselfers on there.  A lot of guys change their own clutches and if they didn’t, they would most certainly save money by going to an independent shop and they understood that these guys are just as competent to work on the cars as the dealership was.  Because of that, it was a great place to advertise. We bought a banner.  We were given names on there where we are a supporting vendor and we could advertise on there and tell people about our products.  I realized that was a great place.  So that was where we started.  I would try and answer tech questions on there because being a supporting vendor, we are able to have a big signature banner and things like that and so as I’m answering tech questions, we’re constantly advertising as well.  That was the first area where I started advertising.



Things really started taking off through there and then from there, I went into social media.  I started a Facebook page. People want to see exotic car clutches.  They want to see exotic cars getting clutches changed on them and getting worked on.  They want to see that different things were involved and what events we’re sponsoring and what we’re doing.  I started that and then things really started to take off. I would say around December of this past year, things really started taking off with ECT.  It has been around for a while before that but it really started taking off then.  When we started the Facebook page, it has been a tremendous amount of exposure.  That’s another part of the learning process.  I realized that I don’t even have to pay to have a Facebook page and to be able to reach these people.  It is a huge amount of exposure and it’s just free, minus the time to get on there and tell people what you’re doing, take pictures, and put them up.

You also have another business in the bodybuilding niche. What is Body Building Humor?

It’s a fitness apparel company that was started by me and a friend that work out.  We’d make fun of the same things that anybody else in the gym would make fun of.  If you go to a gym, you know there’s that one guy that’s really loud.  He is just making all sorts of noise in there and everybody is kind of looking at him like, “Man, this guy.  What is wrong with that guy?”  We all laugh about it so we made a shirt called The Grunter and it makes fun of this and those sort of things.

We started that, made a nice website for it and started selling some of those shirts, set up a few distributors for it, and again to reach the people, we said, where could we go?  Where could we advertise?  So this past year, we attended The Arnold Classic.  The Arnold Classic is a huge show in fitness and body building and things like that.  They have a great manufacturing midway where you can set up and buy.  There’s about 300,000 people that attend the event that weekend so a lot of exposure.  We went there, set up a booth, and put up a banner.  We sold several hundred shirts in a matter of hours.  It was insane.

 
Why do you think the response was so great?

I guess the theme with all businesses, regardless of what industry, whether we’re talking about something in the trailer industry, commercial equipment, fitness apparel, affiliate marketing, search engine optimization, the one thing that holds true for all of them is just basically taking something and breathing life into it. That really happens when you say who do I need to reach and what’s the most cost effective way to reach them?  Where is my money best spent?  Once you figure out where it is best spent and how you get to those people, it’s a matter of networking, making sure they know about your product and just getting the exposure, as much exposure as possible and then from there pretty much it takes off on its own.  You have organic growth.  It grows exponentially because the more people that know about it, the more people they know that would have a use for your product and it goes from there.

Do you consider yourself successful? What advice can you give to our readers?

I have a Lamborghini Gallardo and when I take that car out anywhere, one of the first questions I get asked every time is what advice could you give me?  What can I do to replicate that?  I feel like I don’t consider myself as somebody that has made it.  I feel like there are a lot of things I want to do and I’m nowhere near having done those things, but I do feel that I know a little bit at this point.   The one thing that I recommend is don’t get caught up in that rat race.  In America, everybody is keeping up with the Joneses.  I would say 90% of households are paycheck to paycheck.  When you do that, you totally kill the opportunity to take an opportunity that could be that one big thing and can run with it.  You don’t have that opportunity because you don’t the ability to harness that. If you don’t live paycheck to paycheck and you live within your means, I feel like that’s the biggest piece of advice I could have because that provides the opportunity for you to be able to grab that moment, take it, and run with it. Everybody knows that it takes money to make money.  That’s how capitalism works and so in America, we have a lot of opportunities at our fingertips that pass people by because they are paycheck to paycheck.  They don’t have the ability to be able to capitalize when they need to.

Let’s say for example you saw a huge business opportunity become available and you could grab that up for $30,000, take it, and run with it.  $30,000 really, if we’re honest, is not a lot of money.  That’s what a lot of people that don’t make much money will spend on a car.  The only difference is they are financing it and trying to pay for it every several years and all that. I’ve seen people where if they were given a raise $500 a month, they will go out and buy a vehicle that they finance that cost $475 a month as their car now.  Now, you’re back to square one.  You’re driving a nicer car in the meantime but you’re driving a depreciating asset and kissing away your bonus that you would have had every month as just extra money to do whatever you wanted.  I think that’s the biggest thing I’ve learned.  Living within your means provides the opportunity to capitalize on the moment that you need to get a lot going.

I feel like I haven’t done anything that anybody else couldn’t do.  I’d like to think I’m an intelligent person but there are a lot of intelligent people out there.  They just are okay with not doing anything more than just the bare minimum or they don’t realize how easy it is to do something more.  I guess I would like to just encourage everybody to challenge themselves.  If it seems like it’s a big opportunity, don’t be afraid to fail.  If you do it right, you probably won’t fail anyways, but if you do, you’re no worse off than when you started.

In regards to image and perception, you are what you are perceived to be and that’s the one thing that the internet has provided an insane opportunity for.  You can put out a vibe.  I’m not saying lie about your business. I’m saying you can establish yourself as a big player in the industry before having necessarily solidified that spot. While still just being a rising star, you can already be seen as the go-to business in that industry. People are more willing to buy if you come across as professional and knowledgeable — it gives you an automatic head start.

 
There’s the saying of doing what you love and money will follow. What do you think?

I guess the other advice is do something that you’re passionate about.  If you’re passionate about it, it’s not work.  I work seven days a week but to me it doesn’t seem like it because it’s not working.  It’s almost like this is my new project.  This is not a new business.  This is the newest project and for me, it’s like it’s here and I want to get it to here.  I’m not looking to necessarily make more money.  It’s just that I’m looking to grow the brand and I want to grow our customer base, and get more people using our product just because I think ours is better. I’m passionate about all the things I do.  They all came about for different reason but if you’re excited about it then it’s not something that you have to grind through.

If I truly believe mine is better then it’s going to be the drive there to get more people to use it just off the fact that I think I’m helping them because I’m an automotive enthusiast.  I’ve been into cars as long as I’ve been alive and can remember.  I don’t just want to make a ton of money.  Making money is like the secondary objective here.  It’s like getting people to use our product because I feel that we offer something better than everybody else and we offer it at a better price point.  That alone is a huge thing.



The ability to identify the fundamental pieces that will ultimately be the path to success and then breathe life into them, that’s the hard part. So it’s easy to see, the real talent comes in the execution. Sometimes all it takes is the ability to better implement a design or more effectively reach a demographic.

 

Any closing remarks?

Arnold Schwarzenegger once said, “Every dream carries with it certain risks, especially the risk of failure. But I am not stopped by risks. Suppose a great person takes the risk and fails. Then the person must try again. You cannot fail forever. If you try ten times, you have a better chance of making it on the eleventh try than if you didn’t try at all.”

Bruce Lee once said, “Don’t fear failure. – Not failure, but low aim, is the crime. In great attempts it is glorious even to fail.”

Those two statements are very powerful. Tons of people have great ideas; however, many will talk themselves out of acting on the idea – thus failing before ever starting. Having a good idea is the easy part. Coming up with a plan that will allow for success and then executing that plan, that’s the true gift. The ability to identify the fundamental pieces that will ultimately be the path to success and then breathe life into them, that’s the hard part. So it’s easy to see, the real talent comes in the execution. Sometimes all it takes is the ability to better implement a design or more effectively reach a demographic.

The idea itself doesn’t have to be revolutionary. Facebook wasn’t the first social network, Windows wasn’t the first operating system, and the list goes on. Exotic Clutch Technologies isn’t the first in the clutch industry, even in the niche catering to the exotics market, but that didn’t stop me from entering anyways. Already, we’re developing products that none of our competitor’s make, and through innovation, they contain solutions that address a void in the market and should better the automotive community as a whole. Some of our competitor’s make a great product, but we challenge ourselves to continually innovate. I don’t want to just make the same thing over and over for years to come. As material science develops, so will our products. So that, combined with what we believe is a more effective marketing strategy for today’s generation, is how we are making large strides as a fairly new player in an old industry.

I would just challenge others to not be afraid to take that leap. To add to the Arnold quote, you will have a better chance at succeeding the 11th time than you did on the 10th… and most definitely than if you never tried. There are plenty of examples out there where people learned from their rejections and failures, adapted, and went on to do very big things.

We want to thank Barry for sharing his story with us. You can find more information about Barry and his companies at the following places:
 

Exotic Clutch Technologies

 
 

Silent Rewards

 
 

Bodybuilding Humor

 
 

Trailers for Cheap

 
 

Secret to Success – Tim Sykes

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You often hear from us say that entrepreneurship has lost its true meaning with today’s generation. With so many resources and opportunities available, the number of millionaires in our generation has never been higher but with that comes selfishness. Our motto has always been by entrepreneurs for entrepreneurs. It’s unfortunate that many entrepreneurs keep their success private but fortunately we have entrepreneurs like Tim Sykes who loves teaching and inspiring people. Tim is the authority in penny stocks and successfully traded $12,415 into over $1.6 million. He now makes well over $300,000 a month is here to tell us what it takes to be a successful day trader.



How did you even get started with penny stocks?

Nobody ever dreams being a penny stock trader. When I was 13, my parents gave me $12,415 for my Bar Mitzvah, which sat in a savings account. I was a great tennis player in my teenage years and practiced every day for nearly 10 years. I went to college basically for that as well. However, at age 18 I was injured and I had surgery on both my arms which prevented me from playing anymore. All this was happening in 1999 when the stock market was going just ballistic. I took the $12,415 and in my senior year of high school, made over $100,000. Freshman year of college I made about $710,000 in profits. I’m from middle class so this was a lot of money. I was just blown away and I decided to only focused on penny stocks.

 
The term penny stocks isn’t commonly discussed like normal stocks. Why did you choose the penny stock path?

With regular stocks you have CNBC, Bloomberg, Wall Street Journal, a million websites; everybody covers them. It’s very efficiently priced. For example, if Google reports earnings, you’ll know within seconds because 3,000 people are reading the same press release and 30 people have already commented on it.

With Penny Stocks, it’s very inefficient. The news doesn’t get out very quickly. For example, Liquid Metal (LQMT), is just one of the Penny Stocks that I follow because they now have a deal with Apple. This occurred back several months ago but nobody picked up the press release if there even was one. It could have been an SEC filing because companies have legal filings.

For two days no one noticed and then all the press started coming in. It’s very delayed so you had two days to buy the stock, which I did. I bought it at 55 cents, a day later to 80 cents a share when people are just recognizing it, and then when the press hits it, it was up to $1.70.

You could triple your money within roughly three days. Whereas with Google, even if you’re dead on with guessing where earnings are, you might make 5% on your money. I’m not good at math but if you can triple your money in a few days, that’s fantastic. Then it’s a question of finding the right pattern in trying to see when that kind of extreme volatility will hit.

I started looking for stocks that were moving and penny stocks, stocks that are traded below $5 a share, are very volatile. On the other hand regular stocks like Google barely move. It might move 33 points a day but that’s only about a 5% move. The value of the company is moving up or down 2% or 3% per day.

With penny stocks, they issue one press release and once they get enough momentum, the value of the company can double or triple in a day. I love that volatility.

I trade Penny Stocks because there is no competition. There’s very little competition with Penny Stocks. That’s what it comes down to. I’m training with people who are investing in these things and they are looking at them like lotto tickets. They don’t Google. They don’t research. They are not meticulous so those are the people who I’m taking money from. It’s low hanging fruit but it’s not scalable. It’s only a few million maximum per year instead of other stuff.

 
What kind of penny stocks did you trade when you first started?

My first four stocks were Supercuts, Viacom, Boston Celtics, and Business Objects. These are real companies worth billions and they just wouldn’t move. I had a small account at first and was checking the stocks everyday.

On my first trade I made like $6,000. My account increased by 50%. If you’re an investor or a trader and you can increase your account by 50% over the course of a year, that’s fantastic. However, I did it in about a day and then 10 times my money in the first year. I’m just using these scams, for lack of a better word, and these volatile companies, and betting on them going up or down. You can go both ways.

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What do you mean when you refer to scams? How does this play into your overall strategy?

I don’t care about 99.9% of stocks out there. So, I focus on what works, and what really works are these kinds of earnings reports through press releases. Four times a year come these report earnings. Companies update their investors how they are doing. Right now, it’s earning season.

A big thing are newsletters. You’re looking for these specific catalysts. There are lots of websites out there that claimed to have good picks and the picks for stocks are mostly compensated. If you send enough emails to people, you might actually get the stock moving higher. That’s when I like to bet against it because whoever is paying for this promotion, once they’ve sold out their shares, it’s over. The strategy is called pump and dump.

For example, the insiders pay $2 million to send out emails to 20 million people. The reason why they are spending $2 million is because they are going to try and sell $5 million worth of stocks. Once they sold all of their stocks, they don’t promote it anymore. The stocks collapse all within a few minutes or hours.

It’s waiting for these kinds of catalysts in terms of real companies with earnings and contracts, or waiting for these scams to basically just show themselves and you get that based on, you look at the email sent, you look at which are the hottest stocks.

 
What are some ways you identify companies as scams?

Every single day I’m looking at the biggest winners. I don’t care about stocks that are doing nothing. I don’t care about thousands of stocks that supposedly have good stories. I care about stocks that are moving because they are in play which means traders are trying to manipulate them. They are trying to pump them. Usually, with just a small amount of research, anybody can Google the company and the word scam, to find a research report.

Google Maps is huge. I love pulling up Google Maps on some of these company’s ‘headquarters’. I’ve exposed hundreds of companies. Promoters hate me. They turn out to be barns or little shacks in the middle of nowhere or strip malls. They are fake companies but they get up in terms of value because the stock goes from 20 cents a share to $2 a share. Still, it’s only $2 a share but it’s up 10 times and whoever has been promoting it is selling into the strength. It’s much more predictable.

A lot of people are scared of the manipulation. I embrace the manipulation because it’s so predictable. These people who are sending out their promotions, they don’t change their tune. They say, “This is an amazing stock” and when the stocks start crashing, they say nothing. It’s very simple, pump and then dump. There’s no going back and forth like if you’re trading a stock like Google, what is the value of their new platform? Facebook has to value mobile versus desktop growth, there are a lot of calculations, a lot of evaluations, and a lot of guesses in it. With pump and dump, it’s very black and white so it’s just about learning how to identify them, learning where they are in the pump and dump cycle.

It’s sometimes good to buy scams. A lot of people will get freaked out. It is like the first day of a scam. I’d say, “I just invested $50,000 in a scam.” They are like, “Oh my Tim. You’re crazy.” I say, “No, if it’s a scam, then it should do well for a few days, and they often do.” You just have to try and understand that all of the Penny Stocks are manipulated but you can use that manipulation to your advantage legally. I know it sounds fishy but it’s not.

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What industry do you tend to trade more in?

Different industries and different sectors perform better at different times. When oil is high you may see these promotional mailers about a ‘national oil crisis’ where a company has just found a billion worth of oil and crude. When gold is high, they may say they just found a giant lot in Colombia. With biotech, if there’s a salmonella poisoning somewhere in America, they will use that. It pretty much depends on world events and just the trend, but all of it is bullshit, every single thing.

That’s the beautiful thing, if you see something being promoted about this amazing oil find, it’s bullshit. If you see an amazing gold find, it’s bullshit. There are a lot of people who are very scientific. They show maps. They buy oil fields for like $20,000 that are next to the oil fields worth a billion and they say, “Look, we’re right next to the billion dollar oil field that is owned by X’s son. This one could be also.” They play and they prey on the ignorance of suckers. There are new suckers born every day.

Biotech is very hot. It’s very difficult though with biotech because you can dress up medicine and say this is amazing and only the FDA can really comment and smack it and say, “You know what, this actually killed all the mice in the study.” I try not to do biotech because it’s very unpredictable. Every now and then, some of these companies that are promoted actually make it.

The technology, the oil, the gold, that’s all BS, but biotech, every now and then, they hit a home run and you’re betting against the stock at $2 and it goes to like $20. That happens once out of 100 times but it’s still happening versus the other one.

If you look at, probably I have 6,000 blog posts, probably about 1,000 of them are exposes. Out of those 1,000, 998 of them have failed. The only two that haven’t failed are in the process of failing. I’m not wrong. It’s not a debate whether it’s a scam or not. It’s just a question of when it’s going to get busted.

 
One of your famous failures is your hedge fund you created. Tell us how that worked out.

Remember I turned the $12,415 into $1.65 million pretax within four years during my senior year of high school and college. Then I started a hedge fund my senior year of college where I basically had $1 million post tax and then I raised $1 million from friends and family.

I became the #1 ranked short leader out of roughly 2,000 total hedge funds by Barclay for three years. But I never really made a lot of money. I tried investing and I invested in a friends father’s company. It was the first print at home ticketing company. They won the contract with Six Flags. If you still go to Six Flags, you still use this ticketing from a company called Cygnus. They later went bankrupt but still kept all their contracts. It’s actually a pretty sleek move that happens sometimes with good technologies. You can’t relate good companies to good technology. I was right about print at home ticketing but I was wrong about this company.

I eventually lost a third of my money in this company. Losing a third of your company as a hedge fund basically kills all of your credibility. So over four years of my hedge fund, I was up 20% per year before this investment. Afterwards, I finished up 2% per year, which isn’t that good.

Luckily, on the fourth year of my hedge fund, I got into Trader Monthly magazine’s “Top 30 Under 30′. Most traders are weird and introverted. I had the big mouth, so they put me on CNBC. I was nervous to be on CNBC so I took five tequila shots before I went on. That made me rather fun and luckily, while I was on CNBC, the producer of this TV show called ‘Wall Street Warriors’ was looking for basically a reality show for Wall Street professionals. Since most Wall Street professionals are very weird and they don’t talk about the money that they make, in the CNBC interview, Bill Griffith asked me like how much money have you lost in a day? I was like, “One day, I lost $180,000 but the next day, I made $220,000 true story.”

The other guy was like, “I lost a lot, not that much” and wouldn’t talk about it. So my big mouth got me on this TV show. I ended up going from one episode to starring in five of the series episodes which is now in 20+ countries. I’m actually working right now with two different TV producers on potential shows.

That helped me decide to close my hedge fund because I started getting 20, 30, 50, 100 emails a day from people saying, “Hey I saw you on TV. I want to learn how to trade. I want to turn a few thousand into a few million too.”

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Let’s talk numbers. What your biggest lost? Biggest gain? Earnings?

I lost $180,000 before. There was this company Taylor Devices (TAYD). It’s still in business. The stock went from $1 to $6 back in 2004 in a day roughly because the Asian Tsunami, and this company makes earthquake absorption equipments so everyone was speculating on message boards that this company was negotiating with Asian governments to put their earthquake absorption equipments on all these buildings. This was total bullshit because the company was near bankruptcy and I exposed it. I talked about it but the stock kept going.

I shorted 100,000 shares at roughly $6. The next day, the stock was at $8 and I cut my losses. It was good because it went up to $9 the next day, but I stuck with it and then the stock crashed from $9 to $6 and I made back $220,000. It was the worst $40,000 I’ve ever made. Then it went down to $2. I was too early in the pump and dump pattern on that one but conceptually, I was right. Most of the time, you’ll find that I’m right. It’s just a matter of timing and that’s why it’s not an exact science. It’s more of an art.

At that point, I was already a millionaire. I’ve been a millionaire since age 22. So I’ve been a millionaire for a decade. That’s nice but at the time I was barely a millionaire and when you lose 10% of your net worth in a day or 15%, it makes you conservative. So now, I’m much more conservative.

Those were my crazy days. Now, I make about $30,000 in a day but I don’t bet that big anymore because now I’m focused on teaching.

 
How do you stay level headed when you’re a millionaire at 22?

The good news is that for trading, you need money to make more money. I’m making money but I’m also paying a ton of taxes so I’m keeping the money in the account. It was very good for me that I wasn’t able to spend a lot. My biggest splurge when I made my first $100,000 in one weekend was taking my entire college dorm out to dinner. It was only like $800 because no one could afford alcohol. We’re all freshmen. I was at the right place at the right time.

When I made my second million, I splurged a little more. I actually just got into watches and had a Rolex. I’m passionate as you can tell so during one of my speeches at my conference in Vegas, I was like, “Do you think I give a shit about this?” I chucked my Rolex across the room. It just went in the wall and it exploded. I just got a Lambo. I got this $5 million mansion. After a decade of being a millionaire, I’m finally enjoying the toys and basically the spoils of what I’ve been working so hard for. But in the beginning, I couldn’t spend because I was using it to trade. Now, I make money trading. I still make roughly $300,000 a year trading but I make roughly $3 million a year from teaching so my business has shifted, which I think is much better.

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As a teacher you must practice what you preach. How often are you trading these days?

I’ll trade maybe a few times a week. I just take advantage of opportunities. I’m always ready. I have my finger on the trigger at all times like a sniper. I do a watch list every morning for my students to prepare to know what stocks are hot today, new videos to prepare my students and to prepare myself, but I only want to trade good opportunities and that comes when there’s a big promotion going on, earnings, or contracts being announced. I’ve done 2,000+ trades over the years but before, I used to trade every day. I’ve cut back because I really want to value my time. I’m a big believer in enjoying life. I usually trade maybe 2-3 times a week and that brings me roughly $300,000 a year in profits over the past few years. I can make more if I traded more. I could probably make $600,000 but then I would make far less from teaching.

 
There’s definitely been a lot more exposure on you online rather than offline. Why make your life public?

A lot of people are just like, “Oh you just make your money. Laugh all the way to the bank and don’t talk about it.” But as someone who is a teacher, as someone who is trying to teach this boring subject, how do you get people interested? Wait, you can become a millionaire too. Most of the photos I post now are just of me having fun – going to Italy, throwing my $50,000 party, driving my Lambo, getting this mansion, working from anywhere.

I spent two weeks in the Maldives recently. I took 13 of my closest friends, business partners, and students. These are things that people would want to do so I use them as like a carrot to get people in. Does it turn people off? For sure. People are like, “why aren’t you only talking about your trading strategy?” I’ve already did that. I’ve done 140 hours of specific technical video lessons which most are free to watch, but there is only so much technical content that I can create.

If I do a post on my blog about a good stock and spend 45 minutes explaining every single indicator, versus posting a 2 minute video of my $5 million mansion. Guess which brings in more students? 10 to one, mansion over technical, I still do the technical video once you’re a student but unless you’re a student, you don’t get any of that.

Right now, I’m just trying to draw people in so that they actually want to learn. That’s my main focus. I wish more teachers did this. Education in America is pretty fucked up because they are focusing on the wrong thing. No one wants to go to an accounting class. Nobody wants to go to Math or Science class. They want to create the next Facebook. They want the rewards. That’s how people think. So this is why I have 2,000+ students whereas there are a lot of traders who have $3 million in the stock market but they are not teaching and not getting the word out there. Shame on them. If there are some traders reading this and you’ve made millions and you have a strategy that you can teach, teach.

That’s what you should be doing. You should get the knowledge out there. Unfortunately in my industry, if you’re very successful at trading or investing, you don’t tell anybody how. You do it for yourself. You do it for a few wealthy elite. That fucking sucks. That’s why you invented the hedge fund industry that can almost take down the entire American economic system with one failure, long-term capital management. So you have this fucked up supply demand balance. I’m going to do everything I can to get the word out.

How were you able to establish your credibility as a proven trader?

Covestor was a website that basically taps into your brokerage account and verifies all your trades. As a teacher who is trying to say, “Look at my strategy, look at me,” it’s a very good tool to validate yourself if you’re good. After two years, there were 60,000 traders who signed up. I was number 1 because I went back to $12,000 to show that I could do it again in 2007, and that $12,000 had grown into $200,000. Just the fact that I could go from $12,000 to $200,000 in roughly three years again, showing every trade where students could follow it in real time, see videos, and see the blog posts; that made me number 1 and that gave me crucial, crucial validity and credibility. At one point I was like, “Look at my ranking. Don’t take my word for it. Look at Covestor. Compare me to everybody else.”

It’s just about transparency. That’s why my business succeeds. Covestor was the first stop but I’m all over Facebook, Twitter everywhere showing free picks, showing premium picks, and most of the time, I hit.

 
Do those ‘autotrading’ tools we read and hear about actually work?

I’ve never seen an autotrader millionaire, I’ll tell you that. A lot of people have claimed to have made millions but I have never met anybody who has made millions off autotrading somebody elses strategy. I’m a big believer that it’s also not just about the money. It’s also the self sufficiency. I want my students to learn. I have over a dozen students who have made over $100,000 with my strategy but they are all self sufficient. After what they have learned in a year or two, they don’t need me. I’m just their training wheels. I think that’s infinitely more valuable than if they just autotraded and have made $100,000. They still would have no idea what to do. Now they can go off on their own.

One of my top students has made $600,000. I haven’t created a millionaire yet but he has made $600,000. He didn’t even come to my conference because he is off playing golf. That‘s fine. It’s kind of disrespectful but I’m disrespectful so I appreciate that.

 
What is your other company Profit.ly?

Profit.ly is my version of Covestor. When Covester started getting into autotrading instead of just focusing on tracking as many different bloggers and traders as possible, I was like, I still want to track. So we created Profit.ly. Obviously it’s biased because it’s my website but you could see all my trades. I upload them and the beautiful thing is that instead of just tapping into one of my accounts like Covester did, you see all of my trades across all my accounts. We integrated my newsletter, my chatroom, and everybody else’s chatrooms so now there are 21,000 members in just a over two years. We’re competing against to see who is best and it’s not based on percentage.

It’s based on money because I was number one on Covestor because I turned $12,000 into $200,000. That’s great but I’m not number one in Profit.ly because I only make $200,000-$300,000 a year. There are some traders in there who make $1 million, $2 million a year. It’s based on dollars, which I think is more valuable. When was the last time you paid rent with your 10% earnings? You pay rent with $10,000 not percentages.

We changed that. We integrated it with the newsletters and the chatrooms, and now we basically have this crowd sourcing newsletter movement where out of 20,000+ traders, we pick the best. I think we have 15 newsletters now of the best traders and they also teach. You can see their trades. They have their own chatroom. They do video lessons. Some of them do webinars.

For example one trader has made $1.5 million over the past two years so now if you go to Profit.ly/iu, and you can get into his chatroom. He does webinars and video lessons, and you can learn. It’s not just my strategy. It’s others, and next year, who knows, we’ll have 100 top traders so we’re just growing. I’m not a one-man operation and that’s why a lot of my Profit.ly employees are down here in Florida.

 

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With all these resources available for people, what doesn’t stop someone from just following you step by step?

Well you have to learn it. We’re not Covestor. We don’t autotrade so you have to watch the videos. I have 800+ video lessons and it just keeps growing every time I do more trades. I have selected 30 of the best ones. I have 12 DVDs. You could probably get away by watching the top one or two videos Penny Stocking and Penny Stocking part 2. Everybody learns differently. I blog post, I do private coaching. I do webinars so it’s about you understanding the catalyst, the news, the pump and dumps, the earnings, the contracts, and the brokers. There is free stuff everywhere especially on TimothySykes.com. My website is totally free.

I like trying to prepare my students so I have a daily watch list. Most of the traders who have newsletters, they have a daily watch list like, “Okay, this is a stock that I’ll probably buy if and when it hits this.” Then you get a real time notification via email, instant message, Twitter, text message, and many different ways when that trade is actually made. It depends on the teacher. It depends on the newsletter. It depends on the strategy but I like trying to prepare people. It’s my dream when, in my chatroom, I make a trade, and there’s already 10 of my students in that trade. People should be able to be in and predict my trades based on what I teach so I think that’s what everyone should really do but it’s a process.

 
What about your other project Investimonials? What’s that about?

Investimonials is like Yelp or Trip Advisor where you can review brokers, financial software, financial websites, you can review my DVDs, different newsletters, and different blogs. You can review Jim Cramer, commentators, everything related to finance. I thought it was going to be a cute little side project. We’re up to over 10,000+ financial products and categorizing everything so it’s very useful especially the broker reviews because there are not that many out there. The software that we’re developing called StocksToTrade.com is actually coming out in the next few months and it’s going to create our own charts.

We’re going to pipe in my alerts and watch list so it’s mainly for my subscribers and then for other so called ‘gurus’ who want to deliver useful information with their subscribers with moving charts and everything. We have been working on that for six months.

I have a lot of projects mainly just focused on transparency, giving better value to traders, and blowing up the bullshit industry that I’m in because there are so many snake oil salesmen who are like, “Oh I turned a few thousand into a few million.” Well, show me your trades. Show me that. I encourage everybody. There are quite a few people who claim to have made billions and now they are selling their strategy. If it’s so good why are you selling it?

The reason why I’m selling is because I was on TV and this is a damn good business, and guess what, I show every single one of my trades. What’s your answer? That’s what I love. I love exposing scams. It’s not just about the money. I love changing the industry for the better. That’s what really drives me every morning.

 
What do you like more; trading or teaching?

Teaching. Trading is a high. I don’t know if you know any traders but we can have very addictive personalities and you want that high. I made $100,000 freshman year. I had acne face. I couldn’t even get a girl. My fake ID was taken away. I was a loser and made $100,000 in a weekend. It opened my eyes to what’s possible. I wasn’t rich at that time. At that time, I had gone from $12,000 to $175,000 and I had made roughly $100,000 on my $175,000. So I made over 50% in one day.

That’s the value and beauty of Penny Stocks. That opened my eyes to “Guess what, you can have this amazing feeling and this high.” It was just realizing how great of a world this is, because I was middle class. $100,000, that’s like two years of work for my parents. This was in one day and I had no idea what I was doing. I actually mis-timed it and if I had one more day, it would have been $200,000 but I was just overjoyed.

But when you get that kind of confidence, you want that high and so now, I’ve had that high now. If I make $100,000 on a trade, sure, it’s great but I have done it, I don’t know, a dozen, two dozen times. If one of my students makes $100,000 for the first time or the second time, I envision the high that I use to get because now they are getting it. Because I have taught them to get that self-sufficiency, to get that feeling, Maybe it’s just their first of second time but there will be more times, eventually, the high phase. By transferring it to other people, I was reborn. It’s beautiful. I love teaching.

In trading you won’t always have wins. How do you not let losses impact you mentally?

That’s a good question. I actually had my third loss in a row in the past week. I lost roughly $8,000 but this was after me going two months without a loss and making roughly $25,000. If you look at the last two months of my trades, I’m still up roughly $20,000 or $18,000. I don’t know the exact number but I’m still solidly up. But pretend I didn’t have any gains and I just had three losses in a row. How do I recuperate? How do I recover? I’ve had losses before. I’ve had $180,000 losses. So $8,000 in losses doesn’t really matter. My number one rule in all my DVDs, video lessons, blog posts: cut losses quickly.

I lost $ 1,000 today. Did I want to take it? No. I hate losing $1,000 but the stock wasn’t going in the direction that I wanted. I’m betting against the scam and it keeps going higher. I don’t know how long or how much higher it can go. The $7,000 that I lost last week, I was one day off from busting the scam and dropped 50% the day after I took my $7,000 in losses. It would have been about a $30,000 profit. I was on the right track so for anybody who experiences losses, make sure that you are on the right track. There are a lot of close calls in life where you’re so close. You’re like, “Oh just one more day” if this had happened.” But you can start to see a trend over a few weeks, over a few months if you’re on the right track and you’re close, sometimes, you’re going to nail it. You can’t get discouraged.

Every single loss that I take encourages me. Not only because I do a video lesson which helps my students but because when you do something wrong, now you know what not to do. You’ve learned. If I can go back in time, I would have held that scam one more day and made $30,000, but I can’t go back in time. All I can do is learn from it and teach from it. When you’re on the right path, that’s fine. If you keep having losses endlessly for five years, okay, maybe you shouldn’t do that. Maybe you should get on something that’s more successful. But I would encourage people to try everything. Try different strategies, try different industries. I didn’t know that I would make a lot of money getting into teaching. I was running a hedge fund. I was depressed because of my friend’s father’s company which had lost 30%. I was still a millionaire but barely and my credibility was shot.

The TV show reinvigorated me because people started emailing me and I said, “You know what, let me adapt my business motto.” I’m still going to trade. I’m still going to do the exact same thing I’ve always done but because I know that there’s demand, let me try and sell this, which I have, and guess what, I’m making 10 times as much than in trading. That’s just the start. I think I can do better. Maybe when we do an interview in two years, I’ll be making 100 times, when I have software and more. I’m not just a one-man show. There are other newsletters and other gurus. Try everything.

People are very afraid to lose. People are very afraid to fail. I’ve failed rather spectacularly. If you Google “Party’s Over for Hedge Fund King” that was a New York Post article when I got in a fight with that magazine editor and I didn’t know how to deal with the press. He thought that I was losing my money because the success of the TV show had gone to my head. He failed to read the complementary book that I had sent him so he didn’t even know my hedge fund was failing before my TV show even aired. I just put on a happy face for the TV show because I knew that it wasn’t my core trading strategy that made me lose. It was veering away from it.

I’m a very good trader. I’m a very shitty investor. This is what I’ve learned.

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If someone wants to start penny stock trading today, what’s a good budget to start?

You need $2,000 to be able to short sell and be able to bet against companies. One of my student’s name is Jarmall. He is still in college and a single dad. He has a part time job and he invested $500. He is up to $41,000 in profits this year. Since he started with $500, he could only buy stocks. It is possible. I would recommend having at least $2,000.

You really need to study. Even before opening an account, I would suggest watching my videos. I have over 700 video lessons. I show the 30 best in a blog post. It will cost you $99 to subscribe and you get all these 30 video lessons and you get 700 more. There are some of my students, they are literally just watching these videos nonstop.

I brought two students to the Maldives with me, Kristen Gramazio, she made $4,000 on her $10,000 account on NTE and Tim Grittani who turned $1,500 into $128,000 in a year with my strategy and made over $150,000 in 2012. He’s already up $20,000 in the first 2 weeks of 2013. He is just a recent college grad. But they studied everything nonstop. Even while they were in Maldives, I have a picture on the plane that I have to post. They were watching my video lessons and DVDs. It’s about getting comfortable because this is such weird stuff. Penny Stock, shortselling, weird stuff. So you’ve got to learn that and then you’ll be prepared as an earnings winner comes, as the next scams come. There are always going to be scams. There are always going to be new companies. You just have to be prepared with your knowledge.

 
Any last remarks?

The main thing that you guys should really take away is that whether it’s internet marketing, FOREX trading, or Penny Stock trading, because of the world, because how fast the internet is everywhere in the world, but if you learn these kind of undiscovered industries, you can make so much money from anywhere in the world. I hate it when people say, “I can’t trade. My parents want me to be a doctor or a lawyer.” Those industries are crowded. Everybody wants to be a doctor or a lawyer. You have to study 8-10 years before you can even get your degree and then you’re not even guaranteed income. You’re also in debt for years just paying back your education. It fucking sucks.

With this stuff, you can literally become a master within a year or two. The learning curve has increased. The rewards have increased. The independence is increased and I just want more and more to realize that. I think it’s fantastic. We’re at a very special time in history more people should realize that.

 
Resources on learning more and contacting Timothy Sykes

- Timothy Sykes – Tim’s official website where he personally blogs and has free video lessons
- Profit.ly – Learn penny stock trading by following strategies laid out by Tim and other proven traders
- Investimonials – Read the latest reviews on all things related to finance and penny stocks
- Penny Stock Conspiracy – Meet Tim Sykes and get a chance to join his mastermind group in Miami, Florida

 

Secret to Success – Vincent Ray Wong

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One challenge of many entrepreneurs is the desire to start a business while working a full time job. From personal experience it is never an easy feat to tackle your full time job, family, social life, and also your projects. However, many individuals have succeeded through long nights of hard work such as this month’s feature on Vincent Wong, founder of Mhelpdesk. Vincent knew from the moment he started his corporate career path that it wasn’t for him. He decided to build a business that would eventually make significantly more money than his day job. He’s here today to share his story.
Your career revolves around being a developer. How did you end up going down that path?

I’ve been a developer for a good part of my professional life, almost 9-10 years. Right out of school I was writing web apps for startups before the dot com bust. Growing up in the the DC area, one of the things you’re supposed to do after college is get a good job that’s secure. So that’s what I did.

 
Was programming something you learned in college or picked up from experience?

I was a Management Information Systems major but I took one class in C++ during my last summer semester. I wasn’t actually a Computer Science major. It wasn’t even CS but one of the classes was C ++. I ended up doing really well in the class. So while I didn’t go to school for programming, everything I did right after school was all related to programming. I was actually a finance major for about two and a half years.

My real school was Barnes & Noble. Again, I only had one class in school dedicated to programming , so I didn’t have the academics behind theory and all that. I wasn’t great at math or anything either. However, I went to Barnes & Noble and got every single book I could afford related to programming. Eventually, I started writing my own apps and programs after going through tutorials. That helped me get my foot in the door as a programmer at my first job. I really had no business being a programmer with my background. I was actually lucky that the guy interviewing me knew less about programming than I did.

That kind of set the stage for using Barnes & Noble as a way to educate myself on how to build things. Instead of thinking “Oh, I got to go to school for this”, I just told myself I could learn it on my own.

 
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vincent ray wong vince wong vincent wong
You spent several years at the much respected government contracting firm Lockheed Martin. What was that experience like?

It was fun and a great experience. I learned a lot there. That’s where I got most of my experience. I built huge projects from the ground up. I learned first-hand how to take a list of requirements and transform them into a production system. That’s where most of my hands-on experience came from.

 
You eventually moved to General Dynamics in what was presumably an upgrade from your last job but you only lasted a week. What happened?

On the first day of work at General Dynamics they set me up in an office with my back facing the door. Anybody walking by would see my monitor. I wanted to be facing the other way for privacy. The second problem was that they wouldn’t give me admin access on my own computer. All this was like a sign to get out of there. That lasted I think 4-5 days. It wasn’t even a full business week.

Obviously leaving a safe job is crazy for most people but you were actually working on a startup this whole time that we haven’t mentioned. What was your first major startup?

My first startup was a website called Screameleons.com. I had a pet chameleon and paid $350 for him. I spent about 10 minutes every morning taking care of him, but the redundancy of daily care made me wonder if I could monetize my time. I figured there’s got to be more guys like me that would spend $350 on a chameleon. Each chameleon laid 20 eggs 3-5 times a year. So 20 times $350 times 3 was a lot of dough for me at the time. Nobody was really doing it on the internet. Everybody kind of went to the expos to buy, which is how I bought mine.

I was thinking that if I could rank number one on Google for keywords like “buy chameleon” I’d definitely make a sale if they landed on my homepage. Where everybody was selling at these expos, I built a site just to sell chameleons that was SEO’d out to the max for every keyword combination related to chameleons.

 
How were you able to balance this website, sales, customer service, etc, while working your day job?

I remember the routines were get up at 5 AM, work, workout, go to work, as soon as you get home, eat, get back to work, eat. It was straight eat, sleep, workout and work routine. Saturdays and Sundays, I’d see all my friends going out to party, watch movies or play new video games. I didn’t care about any of that. I was focused on building something.

 
Was there ever a conflict of interest while working on your project with a day job?

The one thing you have to be is a great employee. When you’re starting your new venture and you’re still a fulltime employee, you have to be the absolute best employee for your boss. This means you don’t half-ass your job. Don’t act like your side project is more important than your job. Obviously your side-project is more important. It’s ok to think like that. But don’t act like that. The bottom-line is that you have to be fair. That means delivering quality work and delivering on-time. Don’t give them any excuses.

In my case, I’ve always been able to deliver. Whatever they needed I always delivered it on time. If you are a great employee, you may even gain the support of your boss. I remember my boss saying “I wish I did something like this when I was your age.” So I kind of got support from them, but at the same time I was always delivering as an employee. I was never late. Also keep in mind that most people waste time at work browsing Facebook or websites. If you’ve got time to kill on Facebook and websites, kill it on building something meaningful.

I was lucky to have a supportive group of people around me, but at the same time I was really good at what I did and I finished my job.

screameleon
reptile magazine
Before you made that leap of faith to go full time on your business, how much of a cushion did you build up?

I think my second year with Screameleons.com was when I had built a cushion of predictable income. It made enough that I didn’t “need” to work a traditional job anymore. One of the first things I did was start working from home. Having a cushion gave me the confidence to ask my boss if I could work at home every day. I worked out a schedule where I never needed to go into the office unless I absolutely had to be there. In fact, I hadn’t gone to the office for almost two years with this schedule.

The thought of losing a consistent paycheck and great employee benefits was always on my mind. Programmers in the DC metro area working on defense contracts make very good money. While losing the guaranteed paycheck every month was always a consideration, I was never really fearful of it because I knew I could make it up.

However, for some odd reason losing health insurance benefits did scare me. But it was because I never really understood how it worked. I just knew that every month they took a few bucks out my paycheck, and if any disaster happened I didn’t have to worry about paying for it. I tore 2 ACLs within 2 years and my total medical bills were well over $20,000. So this magnified my fear of “what if something happened…”

But this fear was irrational. One day I went online and searched for how much it would cost to insure myself the same way my company did. I got some quotes and the cost with the same deductibles and coverage was actually cheaper than what I had been paying with my employer.

You have to build some cushion, but you don’t need a lot. Don’t over plan but at the same time don’t be reckless. I spent a day writing down all my expenses and came up with a total that I absolutely needed to come up with every month to survive. My biggest expense was my mortgage and all the costs of running Screameleons. Once I had that number in mind, I took a leap of faith knowing that every morning I’d wake up with the drive to hit that goal.

 

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Going full time has its risks but also its rewards. How did you overcome any self-doubt or laziness?

To me, I always thought that a fulltime job was almost poison because it was just too comfortable. A guaranteed pay check affects the way you think, act and how you make decisions. You collect a paycheck and money is one of the few things you don’t have to worry about. I definitely got used to it, and there was definitely some complacency in my life. With a steady paycheck, I could choose to do business the next day, or I could choose to take it easy.

However, the day that I was 100% on my own I saw a dramatic shift in my personality. My entire decision making process changed. When I knew that the only way I was going to get paid was if I hustled, something just clicked. Nobody was going to pay me, and more importantly nobody was going to pay for the roof over my head. My level of determination and drive shot up tenfold.

With a job and paycheck, I’d be in bed by 10PM because I knew I had to be at work the next morning. Today, I’ll work until 3 in the morning without hesitation. During the job days, I would never do that. I would never be up until 3 in the morning writing code. That is the kind of complacency a paycheck will buy you.

 
I wanted to touch on how you were able to build up Screameleons. What kind of tools and resources did you rely on to build that website?

I had just gotten out of school so you got to understand that I didn’t have the programming experience needed to build anything. That’s one of the reasons why I relied on Barnes & Noble. I got a book to learn the basics about building a web application. Also, one of the first things I did was leverage what was already built. I did not build everything from scratch. I found a content management system and built on top of that. It was pretty much like Wordpress, but much older. It was free, open source, and written in C#. So I knew what language I needed to learn to build my own reptile shop.

Regarding marketing, the main marketing tool for me was Google AdWords. Back then, it was still pretty knew and nobody was using it to sell chameleons. So I didn’t have much competition. When I first started the site I was a nobody so paying for ads was not an option. I went to the bookstore and bought a book called “The Ultimate Guide To Adwords.” People weren’t really buying pets online so there wasn’t any roadmap to follow. I just started to figure out how to drive traffic to my site using what I had learned in the Adwords book. Eventually customers started trickling in and people were posting their chameleon photos on web. When anyone asked where they got it, they’d tell them Screameleons.com. That led to a lot of organic marketing, which helped us dominate the chameleon business online. Long story short, I didn’t build from scratch. Instead, I leveraged what was available to me. Today, this is even easier because there are tons of tools to help entrepreneurs get started.

 
Do you drop ship reptiles or do you actually farm them too?

We actually produce in house and work with partners. I spent six months searching for a house to run a chameleon business in. When I first started, I was running it out of my cousin’s basement and my friend’s garage. I needed more room to expand so after six months, I found the perfect house and built everything from the ground up to pump out chameleons. It was like a fulltime thing for me at that point. We spent the first four years producing a lot. Then we gradually started to work with partners that were producing the same, if not better, quality as us. Now we’re starting to shift our focus to working with more quality partners. Many of whom are also past customers.

It came to a point where Screamelons was making more money than your day job. Was there a moment that you realized this was going to take off?

It was all progressive. When I first started I didn’t know what it was going to do. I just knew that if I could produce 20 eggs and sell them at $350 a piece, I could get a new snowboarding gear every year. When I actually sold out of my first 20 in just a few weeks, I knew I could do this all day long.

 
As of lately you’ve been focusing on something much much bigger called Mhelpdesk. Tell us about that.

Mhelpdesk is an app that I created with my co-founder Khoa Ho. One big lesson I learned with Screameleons.com was that I didn’t’ really create a business. I created a fun job that allowed me to work on my own terms. However, I wanted to create a true business that could run itself once it was set up. I wanted to generate passive income. So we came up with Mhelpdesk.com, which is a service and repair tracking app that runs in the cloud.

Given that most businesses in the United States are service-based, we wanted to create an app that lets them create a service ticket, track its progress, then send an invoice and get paid. We’re targeting users that offer services and repairs like computer techs, electricians, auto repair, plumbers, furniture repair, contractors, etc. It’s basically an app that helps them keep track of their entire business workflow. Most business owners want access to their data from their iPhones, Androids, laptops, office, home, bathroom, on the road, or whatever. We make it easy to do all that without having to set anything up. Managing a team of service staff has never been easier. Building Mhelpdesk in the cloud allows us to offer these capabilities.

The beauty of being cloud based is that you can charge a recurring subscription fee. How did you determine price point?

Coming up with the right pricing is a result of testing different price points. With a digital product like Mhelpdesk, the incremental cost to service each additional customer is very low. That gives us the flexibility to set virtually any price we want. We don’t have any tangible cost of goods sold per se, so most of our pricing factors revolve around the cost of customer service, new development, and infrastructure. With a rockstar team, even these costs can be low.

We have three levels of memberships. We have Bronze, Silver, and Gold as of today. Our Bronze plan is $39 a month and our Gold Plan is $149 per month. Our goal was to offer a price point that would scale with different sizes of businesses. But our pricing changes to reflect testing.

A few months ago, we didn’t even have a Bronze plan. It was $19 a month plan called the Starter Plan. We were closing a lot of sales at that price point, but the churn rate was high. We figured that at $19, we were probably attracting a lot of tire-kickers or businesses that were very early in the startup phase. So we doubled our prices to see what type of customers we’d attract. Our entry level plan went from $19 to $39. We noticed that we closed a slightly smaller number of sales per month, but the churn rate was near 0%. Overall, we were making more and keeping more per month. We figured that at a $39 entry point, we were attracting businesses that were more established and had a more pressing need for our app.

To date, we are still testing different price points and packages. The key is measuring the results over a 30 day to 90 day period. Get hard numbers when you measure. Don’t sit on a price too long if it’s not working. Don’t be afraid to test different price levels. Don’t look at a competitors price and follow. Our pricing has always been about staying profitable, having enough resources for new development, and scaling our infrastructure.

 
How many customers do you have so far?

Right now, we have over 951 paying subscribers and over 5850 freemium users. By the time you read this the numbers will have grown significantly. The cool thing about our recurring revenue model is that we’re building a predictable stream of income. All the customers we acquired last month will continue to pay their subscription fees. Any customers we acquire this month will add revenue on top of that with little to no extra work. The life-time value of each customer is significant. Again, the incremental cost to service each additional customers is very low with electronic products. Combine that with the recurring revenue model and you got a winner. I recommend this model to anyone trying to start a business. It’s much more appealing than selling a product once and never seeing that customer again.

mhelpdesk
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mhelpdesk appointment scheduling mhelpdesk time tracking mhelpdesk invoicing
 
How do you know who your ideal demographic and customer is? Is it better to focus on a niche or on all kinds of industries?

Most people will probably say focus on one niche. If you try to be everything to everyone you’ll end up being nothing or something to that effect. I’m still not convinced that you have to focus on any one single niche. We’re attacking several verticals in the service business. It’s arguable we should focus on the computer repair industry. However, if you look at the workflow of a computer repair tech and someone who repairs home appliances, the workflow is near identical. We’ve built our app to be highly customizable yet easy to use. That has allowed us to enter different markets. In fact, our current customer base isn’t any one vertical. It’s several.

Right now, most apps out there are focused on the IT industry. If you Google service management software you’ll see that the bulk cater to IT industry. The underserved market are all the little guys that don’t have companies making apps for them like the pool service guy, the plumber, the electrician, the guy that does oil changes, mobile windshield repairs, iPhone screen repair, etc. Those are the verticals that we have in Mhelpdesk. We’re not after the IT market. We’re after everyone that’s being ignored by all the software development companies.

 
You mentioned about true passive income in the sense that its recurring payments. How do you even further that by streamlining and automating processes?

We’ve been focusing on creating a business that sells automatically. For example, this morning I checked out the numbers, and out of the 94 signups we had in the last five days, seven of them purchased without ever picking up the phone or emailing us. This means they went to Google, searched for “service tracking software” and landed on our home page. They hit the green “Try now” button, signed up for a demo, and eventually purchased a monthly subscription. This happened without a single human intervening to sell them on Mhelpdesk. Can you sell software without a sales team? So far we’ve proven that it’s possible. Is it ideal? Probably not. Could we triple our revenue by setting up an outbound sales call team? Probably. You can automate a lot of the sales, but I’m learning that we’re leaving a lot of money on the table by not using the traditional channels like a sales team.

We also have auto responders that automatically send out email tutorials. We also have this whole tutorial interface where you log-in and get walked through the basics. Users learn how to use Mhelpdesk without a human being holding their hand. That’s the kind of system that we’ve been working on for the last several months. Again, we’re still leaving a lot of money on the table because the majority of users do desire human interaction. But we automate what we can.

mhelpdesk logo
iphone app
 

vincent
vincent wong
vincent wong

How do you inspire confidence into potential customers who are on the fence about trying Mhelpdesk?

We’ve got a ton of positive reviews online. We maintain a 5 star review on Capterra. If you just Google the phrase “Mhelpdesk Reviews” you’ll see a ton of 4-5 star reviews about us. If you go on forums you’ll see a lot of praise about Mhelpdesk. There is this one website with over 30 detailed reviews submitted by real-world Mhelpdesk users. Social proof is one way to build confidence.

One other thing that builds confidence is your guarantees and policies. We don’t have any long-term contracts or hidden fees. If you don’t like Mhelpdesk you don’t pay for it. If you buy Mhelpdesk and later want to stop you can simply cancel it. Our policies all revolve around providing zero risk to try and buy. Put yourself in the shoes of your potential client and create policies that you yourself would be comfortable with.

The bottom line is you need to create a product that exceeds expectations. You need to make sure your product delivers and does what you say it will do. When users try your app for the first time they should be like “Wow. This actually works.” How you design your app and its usability is a key part of building confidence. If this isn’t happening with your product, don’t lock them in. Let them leave gracefully and learn from your mistakes.

 
So what’s next for you?

First, I’m hyper-focused on Mhelpdesk right now. We aren’t going to stop until we knock this thing out of the park. We’ve grown our team from two to eight. We’ve brought on a new COO to focus on capturing revenue from channels we haven’t even explored yet. We’ve got a ton of new stuff on the roadmap. We are going to disrupt the space with better technology and a better user-experience. My team and I are gunning for global domination.

When we are taking a break, Khoa and I like to solve puzzles. Right now we are trying to figure out how to build an app without lifting a finger to write code. We are investing some money into an app called MeemStream. MeemStream is going to revolutionize the way we entertain each other. If Twitter and Instagram had a baby it would look like MeemStream. But other than that, I’m just enjoying life right now.

 
We want to thank Vincent for sharing his story with us. Make sure to visit his blog and websites at:

Code to Riches – Vincent’s Personal Blog
Mhelpdesk – Service Management Software
Screameleons – Live Chameleons for Sale

Secret to Success – Josh MacDonald

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At age 17, most of you were probably busy playing video games after school or planning the next party. Josh MacDonald on the other hand, took his online marketing experience and turned a personal need into a business solution used by the masses through his SEO research tool Keyword Scout. At only the age of 17, he has been able to generate over $100,000 in revenue, all while being boot strapped and self funded at the same time. We invited him here today to talk about how he’s done extraordinary things yet being an ordinary teenager.
How did you get started in internet marketing or affiliate marketing?

I initially created a service on a search engine optimization forum because a friend gave me the idea of selling pre-made AdSense websites. The entire process was automated with staff, except the keyword research component, which had to be done by me. I needed a tool to automate it and there was nothing on the market so I created Keyword Scout.

 
Tell us a little more about this service for Adsense sites…

Customers would order a package of 1, 3, 5, 10, or 25 websites and could say what niche they wanted but usually, they didn’t so I would just do keyword research, make a basic html site, add five articles, zip it up into a folder, and send it to them. They would just buy the domain I suggested and upload the files. For example, a five-article website was about $50 so the profit margins weren’t that big at all, maybe 20%.

 
Since you were young, did you run this service entirely by yourself?

I started doing it myself and I started with nothing, really. I didn’t put any money into it. The first investment I had was when my mom gave me 99 cents on her credit card to buy an ad on eBay and I ended up getting scammed. The ad was for one of the forums I was trying to start. I continued freelancing when I started the service basically and wrote articles myself. After I had enough money, I started hiring others to start doing it and then sales just picked up. I didn’t want to write anymore so I let someone else do it.

micro niche site
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micro niche site
ctr

As someone young, did you have any mentors for guidance?

You meet people in the industry. They give you a small word of advice and it changes everything. An example may be when a friend informed me of the importance of affiliates on a product like mine. I didn’t even know what an affiliate was when I started. One of the big guys who I’ve got to give a thanks to is Thomas. He’s a big mentor I would say. He’s a broker. He helps with a lot of things. He knows a little bit about everything, as he’s sold almost every type of internet business. When I started, I actually added a number of people I met on forums, on Skype. From what I remember, not many would put up with a 14-year-old that knew next to nothing about internet marketing, and just wanted to ask questions. Thomas and I still talk to this day. I talk to him almost every day about new ideas. He always has a lot to offer.

 
With all your experience and background, why didn’t you just become an affiliate marketer?

Affiliate marketing is too risky. I would rather have a reliable income. Right now, I’m focusing on monthly recurring software. I’m trying to get something reliable so I can say I’m making $10,000 a month or $15,000 a month instead of earnings that sky rocket and drop to almost nothing, every couple of months. I want to be constantly growing. I don’t want to have any slow times.

The only time when I got close to affiliate marketing was when I sold Adsense sites, which could have easily been sold as Amazon, Clickbank or any other sort of affiliate-earning website. I did have a run at Adsense when I started marketing and one of the things that I understood well was how to get a high click through rate (CTR) which was about 10%-13% click through rates at times and by showing proof of that CTR, they help me sell a lot of sites. Most people have a CTR under 3%.

 
How did you get such high click through rates?

No real secret actually. I have told it plenty of times; just try to make your ads blend in like it’s just a link to another page on your site. You’ve got to follow terms of service but to a certain extent, you’ve got to make it look like it’s a link to another page in your website. I have a certain template that I use and I don’t use WordPress. I haven’t had luck with Wordpress but what works for me is a simple 2-column template. It’s all white, along with one feature color. So I’d have blue filling along the left side/column, blue on the top where the title is, and directly below the title, I had a link block, the one that’s 15 pixels tall. They always click those. They look like a link to another page in your website. The key is to just match the ad colors with the blue and white on your site. It works well.

So you are known for your software tool Keyword Scout. What is that?

My software is called Keyword Scout. It’s a search engine optimization (SEO) tool. In SEO, finding keywords relating to your website, that are not used by your competitors is very important. My tools helps you find thousands of keywords from 4 different sources, including Google Adwords Keyword Tool, Amazon, Google search suggestions, and LSI, or better known as related keywords that appear in a Google search.

I started this software because when I was 14/15, I ran a website creation business, as I explained earlier. I created sites for marketers for the pure purpose of putting ads such as Google Adsense on them, to generate revenue. To get traffic to those sites, you need low competition keywords that you’ll appear on Google for. At that time, Market Samurai and Micro Niche Finder were the only real competition. None of them did what I needed for my sites in my service. At first, Keyword Scout didn’t have a name, and I was planning to make it for personal use only. However, after telling a few people, they were looking for something like it too. So after hearing that I took the plunge and had my programmer create a license system, and proper update system. I created a sales and support page along with a support email system. On April 24, 2011, I registered the domain name KeywordScout.com and Keyword Scout became our brand.

I started it about six months after I started the micro-niche service. I started it with a recurring price of $40. The sales started slow and about halfway through the day, I thought I would be getting more sales by now. A lot of people were enquiring about a lifetime license. So I opened that up. I put it for $197. Compared to the $40 per month, it was a good amount of money. I think I had five sales that day so I made $1,000, I still remember telling my dad. I think I was 15 years old, maybe turning 16 right around then. So $1,000 was, for me, impressive. That got my parents off my back for a while. Sales died down a little bit. A few months later, I listed on Warrior Forum, and learned about affiliates. That made some big numbers.

Aside from just telling keyword volume and exact match domain availability, what other features are there?

One of the extra features is called Profit Potential. It’s basically commercial intent but takes into account the relation between the cost per click and the relation between the global monthly searches. I just basically put them into ratio. I forgot the exact formula but basically, a keyword that has 500 searches and $5 per click is more valuable than a keyword with 1,000 searches and 10 cents per click. Basically, it takes the relation, you just sort it or filter, or however you want to use it and that will give you the relation. It calculates instantly because you already have the data for the cost per click and global monthly searches, so it’s just quick multiplication and division.

I needed something that could show me everything. I wanted something that combined all of my keyword research needs and there was no other software to that date that did. I’ve got all the search criteria that Google gives you then all in anchor, all in title, all in URL. We added something new recently and this is just another simple feature that averages the data so maybe you want a high cost per click, high local searches, and high global searches. You just take the average of all three of those, and you sort them. Then also again, you could take the average of all in anchor, all in URL, and all in title, and from that average, you’d want a lower number. Then we added the exact phrase, which is another variable used in my program, you can find this number by putting the keyword in quotes and searching that string on Google. The number of results is a rough representation of the amount of competition. Another simple factor we have is the number of words. I can’t remember if anyone has that but it just counts the number of words and you just sort it. In SEO, you sometimes want keywords that contain many words, known as long tal keywords. Competition score, is the last one and it explains the onsite SEO for the top 5 or 10 websites ranking on Google for that keyword. To calculate that, we check each page to see if the keyword appears in the description, the title, the URL, and how many times, etc. To turn that into a number, we use a little secret formula we have for that.

Who are your customers?

My first step to taking this to market was promoting it on a few related forums and discussion boards. Next, I decided to try another forum. This forum was known for its wealthy and strong affiliates, but to promote your product, you had to give the members a discount, so I sliced the price in half, to $97. Most product owners out there, pick out a launch date, find affiliates, have everything prepared and make a big buzz about it. I didn’t know any of this, I just listed my thread. I was told by many, that I did it all wrong.

The odd person gave a tip, and I eventually discovered that I needed affiliates to attract sales. After contacting a few, I struck luck. I had no idea who I was contacting, but I contacted some of the most powerful affiliates in the industry, and they also seen the need for my product. Everyone made money. I had affiliates take a check home from $5000 to $30,000+, and all they did was email their email list. December 2011 was my first 5 figure month. Now-a-days most customers come from the referrals of other happy customers.


Did you actually develop Keyword Scout yourself or hire someone?

I do everything and anything I can to find the right programmer. It’s like one in 25 or one in 50 programmers that I interview can handle programming what my tool does because of the methods we use to access Google keyword tool. There are different methods that you can use to scrape those 800 keywords. We have the fastest method so it’s the hardest to upkeep. It costs me like $200 a week just to keep this tool running, but when you do a search, it returns it in like 4-5 seconds. Meanwhile, all the competition, they use another method. It costs less money but it’s terribly slow. I only know about four guys in the past year or so that I’ve met that can actually do this. Once I find someone, I got to hang on to him because it’s pretty advanced stuff. Google isn’t dumb so you’ve got to have the best.

I do all of my interviewing on Skype. These days, my only requirement is that you have to have worked with Google keyword tool in the past. There are a lot of programmers who can say, “I can do this. I can certainly do this.” Then they are going to try it and five days later, waste of time. They can’t do it. Right now, all I want is someone who has worked with Google keyword tool before and is familiar with it.

 
How much did it cost to build Keyword Scout and how long?

I would say about three, four, maybe five months, but right around that, 3-5 months. Cost wise I would say around $2,500-$5,000. But then when Google updates come around, it gives me a headache and things pile up pretty quickly. I’ve easily spent 5 figures in development on the software to date.

 
Since you got no investments or loans of any sort, how did you fund Keyword Scout?

First I started with freelancing by writing articles after school for people. It gave me a few hundred bucks. That gave me enough to start my AdSense service so after I made my AdSense service, which added more capital. I was doing pretty well. I was getting to the thousands and then I had enough every week to pay my programmer and eventually got the project complete. I don’t take a salary bigger than $5,000 a year, as I put most of my profits back into my business and my other businesses.

 

keyword scout lite

How were sales off the bat when you first launched Keyword Scout?

I didn’t know much about what I was doing and got some advice from one of my friends and he said I should start getting some affiliates on board. I had no idea what I was doing so I just took his advice and started mass messaging a whole bunch of affiliates and ended up getting a whole bunch. That was about Christmas time and by Boxing Day, I made like $5,000 or something in a day.

 
How did you market the product or get traction to it initially?

There was no official launch date. It was whenever my threads got approved on the forums so whenever a program was done so I just put it up there. The first real official launch out there for Keyword Scout will be coming up probably in the next few months, for the Lite version. I will be building hype for that.

Forums and affiliates played a huge role initially. They bring in most of the sales. I had affiliates bring home over $10,000 paychecks for themselves. Other than forums and affiliates, my appearances in search engines may drive some sales but not many. I have been getting into YouTube marketing a lot lately. I have sales people commenting on keyword research videos, answering questions and helping marketing find resolutions to their keyword research problems. I’m not sure how good that’s working. I don’t think too well but it’s just another example of me putting my ideas to the test.

 
How much revenue in sales have you got so far then?

About six figures in sales and revenue. I’m not sure about pure profit but it should be approaching half way to 6 figures. I don’t check my books too often, unless someone’s looking to buy the company. All of my numbers are recorded in Clickbank and 2Checkout, and they’re not going anywhere. Sometimes I get people that want to potentially buy Keyword Scout from me. As you know, a website is worth roughly 12 months of profit. So I’ve had a couple of offers in the $30,000 range but I know things are just getting better from here, so as long as my other business venture don’t distract me, I’m likely looking for offers a bit higher. I almost accepted an offer around that price range, but the buyer decided to withdraw their offer because he found out that I’m 17 years old.

A popular online marketing forum is Warrior Forum. How did you utilize that to generate sales?

Listing a for sale thread is $40 and I’ve learned that bumping your thread is almost useless because a lot of the traffic to Warrior Forum is not coming from the forum itself but the buyers are actually drawn in from an email blast or linked in from an affiliate partner. The misconception is, people think, “I’m going to start a Warrior Special Offer, and I’m going to get rich.” Well, there are tons that don’t because $40 is a lot and they think, “Oh it was just a bad time of the day. I’m going to bump it again for another $40 and then I’m going to bump again for another $40.” They just keep going and it’s $300 later and they haven’t made a dime, and since they quit their day job, $300 is a lot of money to lose. They don’t realize that Warrior Forum doesn’t bring traffic but rather the affiliates that link to your offer. Warrior Forum is just a place to send your buyers. Customers feel safe because if they have a bad experience, they can leave a comment.

There’s many misunderstandings on Warrior Forum. One of them is, when you post a reply it doesn’t actually bump your thread at all. You can post as many times you want but it won’t bump your thread to the top of the first page until you pay. When I launched Keyword Scout, I didn’t have much of a reputation on the Warrior Forum so one of the things I said was, “What do I’ve got to lose, I’m going to give out 50 review copies. 50 is pretty big so I’ve got to create some buzz by people leaving reviews.” I got tons of rave reviews, complete rave reviews. I’ve got a whole bunch of them and once the affiliates saw that, they were more interested in promoting.

You had some horror stories using Paypal to accept payments. Tell us about over coming that.

I remember it well. I was sitting on a patio in a restaurant in Florida and received an email from PayPal. When I saw the title, I though “Oh yeah right. This is just another spam email since my email is all over the internet.” Every time I get an email from PayPal, I just make sure it checks out. If your email is written to customer or user, it’s fake. If it starts with Josh MacDonald, it’s real and this one started with Joshua MacDonald and I was shocked. Things were bad. I could no longer process through PayPal, for an undisclosed reason which I still don’t know to this date. Every time I went to call Paypal, I only got a voice mail every time. They’ll never call you back. PayPal is just another corporation I’m not too fond of. PayPal gave me all these problems so I went to 2Checkout and I have no problems with them. I love them.

 
How are sales going these days?

Things have really slowed down right now but that’s what I’m trying to do. I’m just trying to slow down until the Keyword Scout 2.0 is here. To buy Keyword Scout right now, it’s a heck of a deal. In two months, it’s going to be $49.99 a month or like $300 for license so basically, I’m trying to keep it on a down low. I want to bump the price up so I’m not really promoting it to anyone right now or looking for affiliates because in a month or so when we get 2.0 going, prices will go up and we’ll start promoting hard again. Really right now, I’m slowing down sales as I prepare.

 
Are you ever worried about Google changing things and making your product useless?

Yes, so basically, we actually don’t use Google API. It’s really, really expensive so we don’t really rely on that. There are a lot of keyword research tools out there, and if anything happened, we’d just switch to another keyword provider besides Google. I do worry about how the future will have an affect on the tool. Exact match domains seem to be in less demand after recent Google changes. I’ll still keep that feature, as there is still a chunk of the market that wants it. I know that the exact match domains are getting a penalty by Google. I know that but I’m not going to argue with the customer. You want exact match domains, I’ll give it to you. If it means a sale, what the heck, I’ll give it to you.

 
Will you be buying any fancy toys like our other young successful entrepreneurs?

As much as I’d like to drive or even ride in a Lamborghini Gallardo, I decided to hold out for at least another 6 months. Spending that much money will put a strain on me financially and could jeopardize the growth of my ventures. Until then, I’m going to just keep reinvesting the earnings.

 
We want to thank Josh MacDonaldfor sharing his story with us. Make sure to visit his blog and websites at:
 

Josh MacDonald – Josh’s personal website
Keyword Scout – Official website for Keyword Scout
Elite Web Enterprises – Josh’s company website

keyword scout sales
josh macdonald

Secret to Success – Rob Dahm

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Rob Dahm went from mowing lawns to fixing neighbors computers and ultimately built up a 7 figure empire with Computer Works, Inc. by providing IT solutions and managed services for small businesses. Although Rob is fairly well known in the online community for his Youtube videos, he was also featured on a national TV show. The TV show never worked out but it had no impact on his standing. In his story, Rob discusses how a little bit of risk, being realistic, and passionate are the keys to his success at the young age of 29.
What does Rob Dahm do?

I started Computer Works when I was 16 unofficially by fixing neighbors’ computers and looking back, I was probably doing more damage to some of those computers than I was doing good but I was solving their problems. The moment I turned 18, I signed a rental for a little 500-square foot office space and had no idea how I was going to pay for it. It was $500 a month and at that time, that was huge money and I said, “You know what, I’m going to be able to do this.”

 
At a young age and taking a risk like that, what did your parents think?

My parents got pissed. They were so pissed they wanted to kick me out of the house and I spent that night at the office space because they felt I was being reckless. They felt that it was going to end up coming back on their credit. However, the first year of business, we made $79,000 net revenue. There was myself, my brother, and one of our friends from college. We weren’t taking paychecks and it was crazy fun. Each year, it grew from there and around 2005-2006, we hit a certain number where we got much more profitable but we never actually exceeded that revenue. So that’s where my mind started wondering, “Okay, we’ve got this awesome successful business, now, I want to do more. I want to keep growing.” So that’s kind of where all the other adventures and crazy ideas kind of came around.

 
You mentioned you had to attend class in one of your emails. What is that about?

Yeah, so I’ve been at a community college for more than 10 years of my life and I have the equivalent of an associates, I love learning. I absolutely love it but there’s something about community college structure, that I get very antsy and get bored quickly. My thirst for knowledge is insatiable but when you sit me in a classroom for that long I start to bounce around.

 
As someone with a successful business, why even finish school?

Some of my mentors haven’t finished college either so I don’t know. When you and I were talking last, I actually was in an accounting class. Mind you, I’ve been running a business for 10 years but I didn’t know half the stuff in that class and ended up going, “Crap, I can actually manage my own business better.” That was a basic class and it clearly helped me and I ended up making even more money from going to school. It’s a balance, I guess.

 
How did you build your business and your client list?

If any story could come from the simplest beginnings to the point where I am now, it really is my story. I started by fixing neighbor’s computers and then got A+ certified. From there, I went and got a Cisco certification, and then Microsoft. I got all those certifications within that first year just by studying, reading, taking the tests, and doing well there. Some of our neighbors own businesses and those businesses would pay us $200 at most a month to take care of their computers. We built a reputation with them that lead us to take on larger enterprises. We’ve got a couple of strokes of good luck and we happen to take care of a lot of different doctors’ offices in the area. It was very organic the way we grew. Do I have education in IT? As far as experience, yes, and then necessitating me to get certifications and approvals along the way.

rob dahm
mazda rx7
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the bachelorette rob dahm

Is it fair to say you never had any real failures with Computer Works?

Yup. That company has been stable, always doing better, always growing. We’ve never had any crazy weird failures. I grew up with this business and now we have intelligent people running it so I spend maybe, four hours a week dedicated to it. It’s really a place to launch new ideas. It’s a place for me to go figure out what really fulfills me.

 
Not many people know that you were a contestant on The Bachelorette. Tell us about that.

It’s funny, the majority of people think that I made the money while being on The Bachelorette. I should have government top secret clearance because it was a five-step process. They took my blood. They did like a saliva swab, 700 questions – psychology tests, interviews with all these different people. I literally stood in line at a mall and the moment I mentioned I owned a business, I was in. They were very interested to talk to me further.

I had been single for two years and by choice. It’s one of those things where you just got to trust your gut feeling. I was asked to go do the show and I thought, “I’ll do it but I’ll keep my integrity.” There are maybe two or three guys there like that, and everybody else is there to do whatever just to get camera time. You see people sell out and then regret it later, but I walked in there, had a blast. The girl and I didn’t even remotely have any sort of chemistry and so she sent me home the first week.

What other business ventures do you have going on?

I own the building that Computer Works is in and as goofy as it sounds, it’s actually a really big deal for me because I was 21 when I bought it and we lease out more than half of it to a regional pizza chain. From a financial standpoint, it was one of the coolest, smartest things I have ever done. It’s like when you sell it but you still get to keep it sort of thing.

We’re working on buying the building from the detail shop, the computer company, and then really just the car show YouTube stuff. I had started a company for that, to keep that stuff kind of separate from everything else and even though I’m not exactly a YouTube famous star, I’ve got almost 11,000 subscribers and every single one of those people count. I think what I might do this summer is make that into a real experience and see what happens with it. That’s where my heart lies.

My brother and I just bought a car detailing company called Executive Auto Care. The Lamborghini gets to sit there. I think a mistake that a lot of people make is just because you see somebody else doing a business and making tons of money in something, it doesn’t mean that you will. I’ve made that mistake a couple of times.

I guess everything has to be kind of congruent. It’s my favorite word for all of this because the detailing shop has already made us a very stable income and we all love cars. People in our area know who owns a Lamborghini and so it all adds together. Lamborghini is a huge part of my life so why not have a business that’s related to it?

One time we emailed you while you were touring with Ford Motor Company. What is your involvement there?

That’s an experience. There’s about three companies here in Michigan that do the staffing for car show events so if you go to any car show, any car show across the nation, the people are the same ones that you’d go and see at any other car show. You have the models, the spokespeople and a group of trained, good looking people. Somebody had known about my YouTube stuff and said, “Hey, you like cars. You like talking about cars. Do you want to do this?” With my current business, all my clients are within 15 miles of each other, I don’t travel at all for work. I want to travel and have somebody else pay for it. I do about three or four shows a year. I get to go to different car shows, talk about cars with random people and have a fun time doing it. Plus I get paid, I’m around a lot of good-looking people, and I get to keep the suits that I would never buy for myself. It has been awesome because I get to meet people that want to meet me from the YouTube channel so I guess it all kind of falls back into itself.

 
You have quite the loyal following on Youtube, what is your purpose behind all that?

I’m a huge fan of trying to improve yourself but the biggest thing I think I’ve come across is doing what you love. You have to be honest with yourself and say, “What are you good at?” There are a lot of things I’m good at but I don’t love all of those things. I’m in a unique spot where I can choose what to do so I’m in a soul searching mode but I’m still trying to find my greater purpose. YouTube makes me $200 a month. I don’t know if you’re allowed to publish that but I don’t care. It makes me $200 a month which I just put towards buying new cameras and I have the most fulfillment from doing that. I don’t think that I have all the answers but I definitely think I can help people find their own answers. The people that watch my stuff there, that is the most rewarding, the most purpose-driven thing I’ve done with the time I put into it. That means the world to me. I had people come up and take pictures with me, I didn’t realize that making videos and talking about business meant the world to younger guys. It’s paying it forward.

People ask me, “Why don’t you do all like these crazy stunts? Why don’t you have all these half naked chicks on your channel?” Being in the business world, what I’m doing is building up my core, like partners, my core audience that won’t leave me if I make a bad video. I’m not just going for the sellout. All my followers are amazingly dedicated to what I do and then I’ll start upping the excitement level and doing all the crazy stuff and the stupid crap that people do to get more YouTube viewers. Until then, it’s very high integrity type of channel.

 
What do you ultimately want to do?

I’m a really tangible type of guy so I think my dream is to start acquiring other companies of the same caliber if the opportunity comes up, and then grow my business through multiplication, through acquisition or multiplying locations. I know small business inside and out. I might as well multiply the number of small business ventures. I see my future as a mix of both Youtube outreach and corporate growth. Both keep me fulfilled.

executive auto care
executive auto car care
nissan gtr
rob dahm ford motor co
lamborghini diablo lambo diablo yellow diablo
diablo v12 engine
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What is your best advice for aspiring entrepreneurs?

The first one is you have to have the right balance of being an entrepreneur but not wasting your time trying to invent something that shouldn’t be invented. Entrepreneurs are pretty stubborn bastards. They don’t like to be told no because they see it as a challenge to do what others haven’t. It’s a delicate balance because you have to be stubborn enough to do something nobody else is doing without wasting emotion and time towards an idea that was bad to begin with. That’s huge.

My second piece of advice relates to employees who deal with bookkeeping and accounting. That was the worst person in the entire company to have personal issues with. She didn’t like seeing us succeed. This was back in 2005 as well and it bothered her to see us make more than our employees. It bothered her to see us charge more for services even though I fully feel we’re worth it. We parted ways and our company profits quadrupled. Nobody, maybe other than your mom, is going to fight for you as hard as you will. It was great not having to do the books but it was horrible in not running your own company. It felt like we were working for somebody else. A huge tip I would say is definitely understand accounting and bookkeeping.

 
You’re well known for your yellow Lamborghini Diablo. Why not something newer?

I’ve been obsessed with the Diablo since i was in second grade. I wasnt interested in the latest and greatest. I wanted to accomplish a childhood dream. I follow you guys on Facebook and you have a formula for handling depreciation on cars. I happen to have a 10-year-old Lamborghini since you can’t buy a newer version of the Diablo. It’s still worth what I paid for it so I’m not taking a huge hit on depreciation. I have the glitz and the glam of having a bright yellow attention-seeking car but if you look at my numbers, I’m being very conservative. The average person has a greater chance of buying a Lamborghini the same way i did, instead of paying cash for a brand new Aventador. I feel like it gives other people hope that it’s actually attainable.

I see these guys with multiple Lamborghini’s and I can’t even relate with them. You can’t do that as a normal person looking at your numbers and saying, “Man, if I double my money, I’ll be able to do more.” Could I buy two Lamborghini’s? Finance two, maybe, but that’s so extreme that it’s unrealistic for me and financially foolish. I feel people relate with people who are on their level because I’m 29 now, and granted my net worth has multiplied. It still has not reached billions and all that sort of craziness. I’m still at that realistic stage and then wherever I take it from here, that’s my own screw up or my own choice.

 
What does a small little town like yours think of you and your bright yellow Diablo?

Ever since I bought that Lamborghini, that has been probably the best purchase I’ve ever made in my life. It validates my second grade dream of owning a Lamborghini because it’s going for what you want. It rubs off on other people and I’ve had two different clients at a client meeting, they were like, “We’re going with you because you own a Lamborghini so you know what you’re doing.” That has been a very rewarding experience altogether.

Some of the things I’ve been focusing on lately is when you buy a car like that, people love to relate to you but then some just want to see you fail. I have a lot of friends or acquaintances that didn’t like that big jump in my life that put myself in a different category in a lot of respects so I did actually lose quite a few friends over that one.

Is there any thing else you want to say?

When people ask about the largest challenge in my life, I love to tell the story about buying the building my computer shop is in. We were renting a $500/month small office space when I saw the building go up for sale. It was on the busiest intersection in Monroe and just looking at the building gave me tingles of excitement.

I called the real estate agent the day the put the For Sale sign in the ground and found out that they wanted $500k for the building. My stubborness kicked in and I knew in my heart, I would find a way to finance or buy the building. I submitted a purchase agreement later that day. The agent called back and apologized. “We mispriced the building, its actually $700k.” I was in shock. Is that even legal, I pondered. I asked him to split the difference. He budged and agreed on $650k. I still had no idea how I was going to come up with the money.

Computer Works was profitable at the time and we had about $70k in liquid assets. We barely paid ourselves and we outgrew our old office. I called a friend who worked in business financing and he spent late nights helping me prepare all of the documents that a bank would want to see. We ultimately went the SBA 504 financing route.

If you’ve ever wondered what its like to go to a closing without money, I can tell you. The SBA portion of the loan wasn’t ready and we missed our closing date in abysmal fashion. We lost all rights to buying the building. The real estate agent was no help. Out of sheer terror, I called my way up the company that owned the building. The vice president got on the phone and ripped me a new one. It was the least professional transaction he had ever seen. My nerves got the best of me and cut him off. “Allowing me to buy your building will make my life more rewarding and challenging, Please give me a chance to prove we are capable”

He gave me two weeks and required that i give him 10k for due dilligence (He keeps it if the deal falls through) I scrambled.

Calling the local congressman, he was able to push through the red tape and we had full financing one day before closing.

While signing the stack of papers, the real estate turns to me. He said, “What the fuck did you say to the owner?” I explained what I had done. He then said “They had an offer for 1.1 million on the table and they let you buy the building anyways, I don’t get it”.

Months later, I got a call from the vice president and he asked me “Did I make the right choice?”

 
We want to thank Rob Dahm for sharing his awesome success story. You can find Rob at the following places:

- Computer Works – Rob’s official website for Computer Works Inc
- Executive Auto Care – See more cool pics of his Diablo and other cars.
- Rob Dahm on Youtube – Watch his awesome videos on business and lifestyle.
- Rob Dahm on Twitter – Stay up to date with Rob on the go.


Secret to Success – Neil Patel

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Some entrepreneurs would go back to their day jobs after a business failure but what happens if your business fails and you accrue over $1 million in debt at the age of 21? Neil Patel went through that very situation and stayed true to his entrepreneurial roots and continued to move forward. With a background in SEO and marketing, Neil has launched two very fast growing startups: KissMetrics and Crazy Egg. He’s here today to tell his story on how he went from making six figures doing SEO consulting for Fortune 500 companies during highschool to building multi-million dollar startups.
Tell us how you got involved in online marketing…

I’ve been an entrepreneur for about 10 years and first got started by trying to create my own website but the website failed and didn’t get much traffic. I thought if I threw up a website, I was going to get a ton of visitors and make a ton of money, but it never happened.

I hired a few marketing firms but got ripped off instead. I had to learn internet marketing myself and eventually got pretty good at it and ranked my own site on search engines like Google. I thought I was going to make a ton of money because I had a ton of traffic. However, the truth is, if you don’t know how to monetize your site, it doesn’t matter how many visitors you have, you’re not going to make any money.

I couldn’t figure out how to monetize and failed miserably but the one thing I was good at was getting traffic to sites and eventually I met a few people who were interested. One day I was in a college class and a friend was like, “I know a company you should talk to.” As a result of my internet marketing skills, I drove over 51% of their leads from the web and the company did well over $50 million a year in revenue. At that point I knew this was powerful. The owner’s son owned an ad agency and introduced me to BlueCross, Country Wide, and a few other companies at that time. That’s how I got started with the whole internet space.

 
What was your first website you tried to create?

My first website was Advice Monkey in early 2000. It was the replica of Monster.com that failed miserably. It never got popular even though I was still getting good traffic. I was watching this 20/20 episode one night and they were talking about mesothelioma and how people were making a killing from it and what it is. I ended up finding out that people were making $50 a click through Google Adsense so I switched Advice Monkey into a mesothelioma site and started ranking it for mesothelioma keywords to try to make some money off of it. It wasn’t a smart business and eventually got penalized from Google because I was gaming the system.



Why would Google penalize you?

It was mostly because I was building unnatural links to the site and had a Page Rank of 8 on Google. I had webhosting companies linking to me with the keyword ‘mesothelioma’ as the anchor text. There were also free webhosting companies that people hosted sites on so I did deals with some of those free webhosting companies where they would stick a link everywhere on the site that said mesothelioma. So it added up really fast and gave me hundreds and thousands of links that said ‘mesothelioma’.

 
Did you continue to build more websites after that?

I became a consultant and I started making money from that instead. While I was doing that, I had this concept that I thought was a revolutionary idea called Rank My Site. What I wanted to do was create websites in very lucrative verticals (CD and DVD duplication for example) and rank them on Google. Once it got ranked and got a lot of traffic, I would rent it out to people who were buying a ton of pay per click traffic for those keywords.

I was making good money from that. Some of these sites were up to $10,000 a month and worked out pretty well.

 
As a consultant, did you only provide strategy or did you actually do the grunt work?

I would actually do the work. I prefer working as a consultant because it paid a lot better plus I had better luck getting customers than I was building my own websites because I suck at the development part, design, conversions, etc, but I was really good at getting traffic.

Who was your first major client and how did you get them?

My first client ever was Elpac Electronics, the power supply manufacturing company. I worked for them for years, but then their son, was the guy who introduced me to BlueCross and Country Wide and other companies.

I was taking nighttime college classes while I was in high school and gave a speech on how search engines work. One of the dudes in the class was a sales rep from that company where he then introduced me to the marketing department.

 
What kind of results did you produce for the company and yourself?

I was making about $3,500 a month and still thought I was raking in the dough until I realized I wasn’t making millions with $3,500 a month. It’s not their fault but I was happy with the money as a 16-year-old. I was getting paid a good amount of cash per hour at 10 hours a month and $3,500 a month. That’s $350 an hour.

I got them ranked #1 in Google for all power supply related terms like power supply, power supply manufacturer, medical power supplies, so forth and so on. They did big orders and provided power supplies for buildings, planes, and stuff like that.

 
With SEO always evolving, how do you build a sustainable business?

Use long term strategies. Don’t do anything that is short term; try to create products, get natural leads, etc. People will naturally start reading your stuff, link to you, so therefore you’ll get more rankings and do better on the social web. That’s the best strategy in my opinion. Just do long term stuff and that usually involves putting a good product or service and providing a really high quality content.

 

How did you avoid getting your own clients penalized?

I’ve had some that were penalized but only very few. Some lost rankings because with clients, you can’t really do anything shady and so we kept all our tactics clean, but some of the clients we worked for would hire us as well as three other SEO firms at the same time. Some of them would just build too many links or too rich anchor text which really screwed up everything but what could you do?

 
How long did you do consulting for and why did you get out of it?

I stopped around 2008 even though we were growing more than double or triple every single year. I had a business partner who was awesome and had a third business partner who doubled all the sales and new inquiries. But I just hated doing consulting. I really enjoy just building my own product and hate working on other people’s products.

A lot of these companies will take your money, like General Motors for example. I worked with them for six months and they couldn’t even implement simple meta tag changes. Six months and you’re telling me you can’t even implement meta tag changes? Consulting blows. The companies who pay you a lot of money sometimes don’t move fast; it’s not fun. Then there are a lot of silly meetings discussing the same thing over and over again. It’s good money; don’t get me wrong, but what I really love is just building my own products. I still do some consulting for people like Tim Sykes.


 

After consulting you built your first product called Crazy Egg, what is that?

Crazy Egg is a heat map technology that pretty much tells you what’s usable and what’s not usable on your website. It will actually show you how to maximize the usability of your website by improving your user experience, so you can improve your conversion rates to make more money. It is used by a lot of marketers, designers, and business owners.

For comparison, Google Analytics can’t do heat maps and stuff like that. We can even do scroll maps so when someone scrolls, we can tell you how much of your page they are scrolling down by.

 
How long did Crazy Egg take to build and how much?

It probably took a year because we had three different developers that we went through before we found one that could actually complete it. We simply didn’t know how to hire. The way I learned how to hire good developers is to hire a shitload until I found the right one. I didn’t know how to hire developers and Crazy Egg was my first big software product and was a learning experience. I think we dumped in over $200,000 before we even launched it and $500,000 invested until we probably started breaking even.

 
What has the response been like since you launched?

Response was good and the business grew but we were losing a ton of money at first but it grew overtime. We had a ton of press and people were even leaving comments like “Google should buy this.” A ton of good stuff happened when we ended up creating it. You can conservatively say whatever we ended up with last year, we should double this year, and we continue to double.

The second startup you launched was KISSmetrics. Tell us about that…

KISSmetrics is a tool that helps track people on your website. In other words, Google Analytics shows you what happened on your site, KISSmetrics will tell you who did it and by tracking people, you can understand things like your customer, churn, marketing attribution, coupon conversation rates, what’s causing people to convert versus what’s causing them to cancel and how can you do more of the things that help you make more money.

 
Did you also try to raise any funding for KISSmetrics or did you self fund this project?

We’ve raised over $6 million so far. We were trying to go after the big market and slowly creep into that enterprise space with those metrics. We needed to raise money because KISSmetrics is a much bigger idea and required a ton of cash up front. We burned through millions of dollars before we actually even had a product that started bringing in revenue.

 
As an entrepreneur, do you also invest in other companies?

I don’t know how many but I invest in a handful every year. My success rate is about 20% but one of them probably will make me all the money I invested plus more.

I usually invest in really random companies. For example one is called Walk Score. It picks your score when you’re moving into apartments or buying a home and will tell you how close everything is. That site is really popular. Another one is Julep and they just raised $10 million. They are reinventing the nail polish business. For $20 every month, they will mail new nail polish to your house every month.


What do you look for when deciding when to invest in a company?

I usually invest in software and service companies, ecommerce or subscription businesses, and other categories I don’t know too much about. I’m looking for companies with a lot of traction and revenue growth. With Julep, I invested after a few months of their launch, but within 30 days, she had 1,000 paying subscribers at $20 a month just from press. So I was like, “Oh, she’s off with $20,000 a month with recurring revenue within 30 days.” Within the next month, I think she more than doubled it and she keeps on growing at a rapid pace. I also helped them with marketing. I introduced some people that can help them even grow faster and they use KISSmetrics to help track their numbers and maximize their revenue and profit.

 
With your startups, how do you optimize for high conversion rates on your website?

Usually I pitch them on the product with videos or a lot of text where I try to explain the benefits, identify the problem they are having, give them our solution, tell them how easy it is and how affordable, how different from the competition and then make a pitch on the price and try to lock them in.

What we end up doing is getting people on a free plan or free trial and then we send them email drips like, “Hey learn this day one, day three learn that, day five see a case study from someone else in your space,” so forth and so on. By day 30, let them know that they are going to get something for free and the next week, try to convert them to a paid subscriber.

With SEO, content is king and you seem to be one of the top bloggers. What advice can you give on that?

With content, we’re big believers that educating the market helps build brand awareness, gives you good karma points, and eventually, these people are going to come back and purchase from you. So that’s where we model with it and we just write loads of content. It takes a lot of time.

I get my content ideas from just browsing the web and from people asking me questions, experiences, and problems that they may have. I write stuff based on what comes to my mind but I really don’t have topics prepared. It just comes because so many people email everyday with questions and I’ll think, “Oh that’s a cool question. I’m going to make a blog post out of that.”

I’m a big believer if people write really good content, people will end up coming. You could target SEO keywords and I know you probably should but I don’t have the time and I just write. I don’t even care about any of that. I’m just like, “If I write enough good content, people want to read it, they are going to keep coming back all the time.”

 
At only 27 years of age, you’re pretty successful but have you ever failed significantly?

When I was younger, I wasted $1 million on a hosting venture that failed and I had to pay back $1 million and even borrowed money. I had this concept where you take a lot of sites and put them on a big clustered environment. It was a similar concept before Media Temple came out with theirs. I also invested in bad people. Basically good idea, poor execution, and I just kept feeding them money, money, and money until I just lost it all after two years. It was devastating and I was like, “Should I even be an entrepreneur?” I didn’t know how to pay it all back and $1 million in debt when you’re 21 years old is a lot of cash but overall, things had worked out over the years. I did some rethinking at that point in my life.

 
You’re a big advocate of leverage social media. Any tips?

Go out there, participate in the community, add followers, tweet at them, the basic stuff. Let’s say it’s Twitter for example. Write good content, respond to other people who need help on Twitter, tweet that to people and try to create a conversation with them, direct message people and try to get them to promote some of your stuff and you can promote some of theirs in exchange. Also, add people to follow that you think are highly relevant and that would also benefit you because some of those will follow you back. I use social media to drive a majority of our traffic to our content so if you build up your social profile, it’s the easiest way to get your content to get viral.

 
We want to thank Neil Patel for sharing his story. You can view his startups and personal blogs at the following places:

Quicksprout – Neil’s Personal Blog

 

Crazy Egg – Heat Map Tracking Analytics

 

KissMetrics – Conversion Tracking Analytics



Secret to Success – Jordan Swerdloff

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If you’ve been on Secret Entourage before, you’ll know we’re big fans of ADV1 Wheels and loved them enough to rock several sets on a few of our project cars. ADV1 Wheels has grown extremely fast and this all couldn’t have happened without the learning experiences Jordan Swerdloff had during his short endeavor with 360 Forged. Although 360 Forged was short lived, we saw the drive and determination in Jordan and fully supported him in any capacity we could as he has done the same for us. With that said, Jordan launched ADV1 Wheels immediately after and has continued to rise to the top of the wheel industry.
How did you get involved in the automotive business?

I had a lot of interest in anything related to cars since I was a little kid so it was just a natural thing for me. I didn’t finish high school so I worked at a few different car shops cleaning up oil off the floor, taking out the trash, etc, but I’ve always had a lot of interest in cars and also in running my own business, whatever that may be.

Back in 1998 I was into Honda’s and street racing so I invented the FMI, the front mount intake system. I started this little business out of a tiny office and made front mount intakes with custom aluminum piping and a welded up box with the filter in the front so it mounted up like a front mount intercooler.

That was my idea back then but ran into an issue with another company who ended up making a similar product so I wasn’t able to sell or make it anymore. Either way, I was too young and I didn’t really know any better at that time. When that happened, I said, “Forget it. I’m getting out of this business” and that’s when I started doing graphic design. It was something else that I was really interested in and that’s kind of how that all started.

I’ve always had a lot of interest in not necessarily art, but graphic design. With my graphic design business, I did a lot of automobile related work. Right before 360 Forged, the business was actually doing pretty well for me so I had a little retail shop for printing and graphic design here in Miami. I eventually sold the business and around 2004-2005 started 360 Forged. It wasn’t anything that was really new to me just because I’ve been in this industry since I was a teenager for the most part. So that’s how I started and that was what I was doing before then.

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At a time when there were already some established wheel companies, why did you think there was room for yet another one?

To me, it was probably the same mentality that most people have when they get into any business, which is, feeling ambitious, maybe overconfident, and a little bit naive. If you remember back then, I actually launched 360 Forged with the carbon fiber overlay on top of the forged center disc wheel. It was something different. Even though there are big companies that have been around for a while, it was something that they didn’t offer and it was pretty difficult to be able to produce it so it was something cool. I had a nice car at that time and was active on the forums so I tested it out a little bit to see what people thought first. I guess I felt confident enough to do it but I had no idea what was really involved or anything until years later. It wasn’t until about 2009 before I really started to understand.

What did it take to fund the business to get it off the ground?

It doesn’t take much money to start this kind of company. We very much started this company with zero dollars. To me this business or even most businesses, as long as you got enough ambition, you’ll find a way to make it happen. There’s so much more to it than the wheel styles and marketing, it’s everything behind that. Once you actually start selling, that’s when it really gets difficult when you have to start managing production and dealing with bottlenecks, growth, and everything else. It’s a difficult thing so I see it all the time. It looks like it’s all fun with nice cars and pretty models, but it’s not.

360 Forged grew faster than you anticipated, why do you think so?

To me, it didn’t really grow fast but I think it looked much bigger than it actually was. The reason for that was because we got into this business with an eye for design and knowledge in photography, design, and marketing. I think that was the difference because it’s a saturated market with a lot of the same thing. Everything looked the same and there was nothing different. I guess that was what made us stand out and started selling as opposed to everybody else. I think it just looked like it did but we were never able to produce and that was time to learn from all those mistakes. It took off pretty quick but again, if production can’t handle it or you if you don’t have a good business behind it or good staff, accounting, or anything else, it doesn’t matter. It doesn’t matter if the wheels look just absolutely amazing and are covered in gold. It makes no difference if you can’t produce them so I mean it very much needs multiple aspects of the business equal in order to make anything happen.

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Looking back would you consider 360 Forged a failure?

I don’t consider it a failure because to me, from the beginning of 360 Forged to ADV1 Wheels right now, it has been one long process, which today is a successful venture. Whether or not it will be any year from now, I don’t know, but I consider it a failure here in terms of the lifespan of that company itself. It’s just from lack of knowledge in the industry and just overall in business, but also being young and not really having the same mentality that I do now even though it has only been a few years. I’ve got two kids now, I’m married, which I didn’t have at that time, and it’s a big difference for a man’s mentality. Now you’ve got people who depend on you as opposed to just being able to pack up and go at any point.

It’s a big difference because when I started this company from scratch and fresh, it was a very much different mentality and a different type of pressure behind it. So I consider it a failure from a business end but at the same time, it’s just part of that learning process. I couldn’t have done anything else had that not happen first. If it didn’t happen first, it would just been ADV1 Wheels that went out of business.

Not only did you lose customers but your competitors also tried to leverage the opportunity to spread rumors. How did you handle that?

360 Forged came out of nowhere and disrupted a lot of other businesses. The last thing that anybody wanted was for me to walk away and start up another company. So that’s where a lot of those rumors really started because if you think about it, a competing company’s only defense in that type of situation is to do exactly that. I’m just doing the right thing and making sure we’re running a good business and doing exactly what we say what we’re going to do.

It has kind of faded away and I guess most people have learned to just accept it and understand that wasn’t really the case. It really was what it was, a business that didn’t do very well, a bunch of people who ordered wheels and during that time didn’t receive them. Hopefully by now all those people have been reimbursed or orders have been filled. I spent a good two years in the beginning of this company still dealing with that and making sure that things are getting done on that end of it. I think you eliminate things like that just by proving it instead of talking about it. That’s what I’m trying to do, just run a business, doing it right, and that’s it. Everything just kind of faded away.

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It seems all outstanding issues have been resolved but what do you say to people reluctant to purchase from you now?

It was crazy. It was very difficult because as we started, I was aggressively pushing the launch of ADV1 Wheels and I couldn’t get on any forums. The wheels looked good and we were trying to get that out as much as we could. People wanted them but everybody was really hesitant because there were so many rumors. It would come up just constantly. If anybody called here asking questions about wheels, it would always turn to “What about that guy, Jordan? Is Jordan involved in the company?” Because of that people were afraid to place a deposit here.

We played it case by case and did the best that we could. I spent a lot of time just talking to people and explaining to them and answering whatever questions they had. But it was difficult, that’s for sure. There was so much negativity but thankfully, I had enough drive to be able to push through it. I made it a point to put as much as I could into making our wheels perfect and look good so it started to outweigh people’s hesitation and doubt, and at least give us a try.

Why not keep 360 Forged and try to fix it instead of launch a brand new company like ADV1 Wheels?

I had an offer to walk away from it in exchange for getting all those orders filled and taken care of. To me, it was more important to do that and move forward and start from scratch than cashing out on whatever it may have been. I know that it doesn’t take money to do it so to me, the most important thing was at least to get those orders filled whether it takes a week or a year or more. I can somewhat save my name as opposed to just having to completely walk away from the business.

After going through that, I really had a good understanding of the real goods and bads of the business that most people will not know or maybe not even go through. I don’t have any bad taste at all. If anything, I feel a lot more confident because of that. When starting ADV1 Wheels, I already knew the real important things to avoid that I wouldn’t have known or didn’t know before. I love this business, cars, wheels, engineering, and design and all that stuff so it’s all that I know. There was no other choice at all.

What makes ADV1 Wheels different from the dozens of other companies to chose from?

I know there are other companies out there that probably produce a great quality wheel as well with different or similar styles, but my primary focus with this was to try and just create very low volume, high quality wheels, with good service. I didn’t intend for it to be anything big, just like I said, real high quality, low volume, and really, really nice design. The biggest thing is the design of the wheels and the quality that can match with it. They are expensive and always have been but they are very expensive to produce in a lot of cases but it’s not anything that is intended for high volume or for everybody. When I get that question, I usually say do your own research and if you like the wheels and you want to buy them, then buy them and if not, then maybe it’s just not the right wheel. That’s okay.

So that was the focus. Luckily though, we’ve grown so much more than I ever intended or wanted. Very quickly too, but we’ve been able to maintain quality, service, and a really strong foundation and company with a really good team. Even though it has grown really fast and it’s difficult to sometimes control that, that has been what I’ve been really focused on so I think it’s still the same company that I wanted it to be.

Who’s the team behind ADV1 Wheels now?

Originally, it was just me and Miguel. I met him in one of the shops around the neighborhood. I was getting nitrous put in one of the cars and he was there doing something. We ended up going to Moroso quarter mile race track and we became really good friends. Eventually, he started working for me as one of the sales guys for 360 Forged and he did a great job. When things started going south he helped me out a lot actually. Because of that when I started this company, I told him, “Dude, come in with me and be my partner. Roll the dice with me and see what happens.” Thankfully, it worked out and I’m happy that I’ve been able to keep him comfortable and happy with everything. His role was just to handle everything sales related, all the wholesale accounts, the wholesale network, just to be that guy for me. It has remained that way for the most part. The sales end of things and the wholesale network is a pretty big portion of the business and we’ve got multiple sales reps now and well over 100 dealers, a lot of them are mostly international in other parts of the world. So that’s pretty much his role and I basically handle and oversee pretty much everything else aside from that.

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All of your wheels come out looking great but the same can’t be said for other wheel companies. Where do you draw your inspiration from?

I make it a point to not look or see anything else that’s going on with any other wheel companies. I just don’t want to see it. I don’t want to be influenced in any way, not even just subliminally. I don’t want to know what is in style. I try to avoid any kind of trends or anything like that and just stick to what I personally feel is going to be just a bad ass looking wheel design that I would put on my own car, bottom line. If I don’t feel that way then it’s not going to get done. That’s really all there is to it and that’s one thing I always make sure to maintain. I don’t want to follow any other trends. I just want to do what I feel is going to work and eventually, I’m sure, as I get older and older, what I feel is going to work and look good may not be the case anymore, but for right now, I guess people are with me.

Since you weren’t allowed to participate on forums, how else did you market ADV1 Wheels?

Well, at the beginning, we didn’t have any money going into it so there wasn’t any marketing. Usually, when that’s the case and you can’t afford to do any print stuff in magazines or anything, the next alternative is online which we couldn’t really do because there was so much negativity and things going on. We were banned from certain internet forums and even customers couldn’t post pictures of their own cars with ADV1s on it, whether for the right reasons or not.

The only way that I could get it out there then was the quality of the design itself, the wheel design, the marketing design, the way it all looked and I just did my best to get it out as much as we could. We would do just grassroots style marketing with basically no money, and a lot of passion and drive. We would do anything. I remember back then I would create ads and ADV1 brochures for some of the dealers that were willing to push the product as it grew. So anything I could. If I couldn’t put it out there myself then maybe they could for us if they liked it and they feel comfortable with it. I would take any route that I could back then. I would send bulk mailers out, get the website out, anything that we could.

Today, not a lot has changed except for the fact that there’s much more material and positive support that the product really spreads itself naturally and all the dealers are very comfortable with us. We have great relationships with them and they are all doing their best to sell wheels whether it be ours or anybody else’s. They are promoting it and spreading the product out on the internet and all over the world in print materials as well. I think a lot of that effort and just the company itself has gotten to the point where we don’t need to do as much so we do. We had a cover of DuPont last year. We sponsor a bunch of forums. Obviously we use social media which is fun. Our Facebook is really good. That’s pretty much it. Besides that, just keeping the website up to date. It has been a huge project for me since late last year along with new brochures and all sorts of material and making sure that all the dealers agree with all that and have what they need.

One thing we notice is that you guys do funny photoshops and put yourselves out there quite a bit. Why not take a more serious approach?

We’re all young guys and in an industry that we’re all passionate about and love. We love to come to work and I’m sure if we weren’t here, we would be somewhere else doing something similar. I think that shows in everything because it’s just who we are. We’re not going to try and be anything else. It’s kind of weird if a company would be kind of a mystery and nobody really knows who’s who and can’t really put a face with the name. To me it’s just not my thing so we have no problem putting ourselves out there all the time. We don’t take ourselves seriously. This is not a serious industry. I mean, it’s not an accounting firm or anything like that. We make wheels and we love it. It’s just who we are and that’s the way that I try to go about everything, just be who we are and do exactly what it is that we want to do, like I said with the wheel styles and everything else.

Thankfully, people think it’s funny sometimes but I guess if it’s not, we’d still be doing it. Those pictures with my face on things like a fairy or all sorts of stuff like that, it’s actually not me who does it. Usually, it’s the sales guys. I’ve got this whole database of photoshopped pictures that are pretty funny but people love it.

How do you plan to continue to innovate the wheel industry?

It’s just the same thing that we do, nothing will change. I’m constantly working with my guys in engineering on a daily basis on new development. Even today, we just got some new wheels. That’s just another new development and it’s a constant thing. We don’t stop. It’s not like we’ll release some new styles or some new type of wheel here and there. It’s literally a constant thing and every single day we’re engineering and working on new projects. At the same time, every single day, we’re seeing completed ones pop out for the first time constantly. We’ll just keep on progressing more and more naturally just because. It’s not a planned thing. It’s just what we love to do. That’s where I get excited, in working on new stuff.

How do you prepare for the continued growth of ADV1 Wheels in the next coming years?

The company itself is at a point right now where it has a real strong foundation that we’ve built and really amazing team of people who treat it like it’s their own. We all depend on the company. We’ve all got families and everything else to support so the company itself is treated with a lot of respect by all of us with a lot of pride. I haven’t wanted the company to grow for years now but it’s just one of those things where we have to keep up with the demand and we have to be able to support the production and volume as sales increase more and more. Obviously, it is a good thing but last year, I pretty much spent the majority of the year planning for growth because we were really exceeding capacity in every way – from square footage for just staff to production, machine, finishing, aluminum, and everything else. It’s a huge amount of investment and additional expenses in payroll to staff and be able to support increased volume this year.

Hopefully, that planning from the growth last year and all the investment this year will be enough to support 50% or more increase in volume. Everything from the engineering and the way that all the wheels are produced, programmed, and everything else; we’ve made a huge effort to completely redo and revise for efficiency to get more output within the same amount of machinery and staff and everything else.

Hopefully, we won’t exceed that anytime too soon but if it does, then it will be the same story. We’ll keep on going. I’m not going to limit ourselves or limit the company and put a bad taste in anybody’s mouth because the lead time is six months or something ridiculous. We’ll keep doing what we have to do.

What’s the ultimate goal for you and ADV1 Wheels?

I don’t know. I don’t think about it. I’m happy and I’m comfortable more than enough where we are already. I don’t take anything for granted here at all. I don’t know how the market is going to go. Nobody does, so I don’t really think about it much to be honest. I’m happy where we are. I really am and hopefully, we can just keep up. That’s really what I’m really focused on – just making sure that we maintain good service and everything else, and quality. I don’t want it to go anywhere else.

What’s your best entrepreneur advice for someone reading this?

If anybody is going to be an entrepreneur or start their own business, it’s just one of those things you just know and there’s no other choice really. It’s one or the other. If that’s the case, just to understand that it’s not going to happen quick. For me, it was 12 or 13 years maybe before I can tell you I feel comfortable like I did and don’t want to go anywhere else. That’s a long time. Most people are discouraged and kind of give up maybe within the first year. You just have to know. It’s going to be a long, long road and it’s not going to be easy. That’s just part of business. Nobody has made it anywhere without going through that first, that’s the bottom line.

Huge thanks to Jordan to continued support for Secret Entourage. You can find him at the sites below.
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Secret to Success – Chad Mureta

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Sometimes all it takes is one incident for people to wake up and change their ways. This was the case for Chad Mureta, a former real estate developer who was in the market during the housing bubble crash. As an overworked business owner, Chad took a night out with friends and was involved in a near fatal car accident when a deer jumped in front of his car. While laying in his hospital bed with hundreds of thousands in debt, a friend introduced him to the world of apps. That moment spurred Chad to borrow money from his family to develop his first app which turned out to be a success. Since then, Chad has launched over 65 apps and has become a self-made multi-millionaire in doing so.
Tell us a little about your background…

I always had a dream to get away from the rat race. I grew up in Vermont, which is an amazing state but it’s also sort of secluded. I grew up in a family where everyone is blue collar and both my parents made about $35,000 a year. No one really had this type of entrepreneurial mindset. I realized a lot of problems people had in relationships was due to money. I saw divorces all over the place and I said, “I cannot live my life like this” so I had to figure out a way to actually make money and enjoy life. I went to college thinking that if I jumped into business management it would give me the tools I needed. So I started that journey by basically running an eBay business out of my dorm room and doing different random things to make money.

Eventually, I got into real estate and started flipping houses. Everyone was in real estate and making money so I said, “Okay, this is my path to freedom.” I started reading Robert Kiyosaki’s books to learn as much as I can about real estate and cash flow. That really motivated me and inspired me. I was in my early 20s so I felt like I had the whole world ahead of me.

I started flipping properties and made some really good money and I thought, “How can I take this to the next level?” That’s always been kind of the question for me, how can I take what I’m doing now to the next level no matter what level I’m at. At that time, I thought I was opening up a real estate company down in Myrtle Beach, South Carolina, which was where I went to college.

 
How did your real estate company do?

In 2006 it was growing and really transient by nature so I took all the money that I had and invested it in this company. However, it was the worst possible time to invest and start a real estate company because the market was just about to crash. I watched all this money that I just made and all the effort that I put in basically go down the tubes. I was struggling to keep my team alive, keep things happy, and I was just working these crazy 18-hour days, seven days a week, and I was just consumed. I think most people were basically just giving up but I had a blue print in my mind. I was like, “I’m going to make this happen no matter what.” The problem was that I was sacrificing everything in my life – so relationships, my health, time to myself. I wasn’t really working out or doing anything because I was just completely consumed by work.

 
You went through a near life ending event. Tell us what happened.

I had this moment where I was like, “Okay, I have to do something. I have to actually take some time to relax a little bit and take a breath.” The Boston Celtics, my basketball team, were playing in Charlotte, North Carolina so I invited a friend with me to go and watch the game. I met Michael Jordan who was my biggest idol growing up. I was looking around and I was like, “Gosh this is amazing.” People actually do stuff at night. They relax, they get entertained.” I was like, “Okay I have to make a major shift because what I’m doing is not working.”

I was driving home on the interstate that night around 10:30. I was just in my head thinking, “I have to make a major shift. What can I do?” It’s amazing once you are dedicated to that, the universe has an interesting way to show up and it did. A deer ran out in front of me in the interstate and I hit the deer. I ended up swerving back and forth and smashing to a tree and my truck flipped over four times. Everything changed for me in that moment, everything.

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Fortunately you made it out alive but what was the outcome of your accident?

I basically woke up in the hospital and they said that I’ll never use my arm again. They were going to amputate it or I wasn’t going to have any feeling basically. With all this uncertainty of my life, everything got put into perspective because business wasn’t that important now. My health was important, relationships are important because I wasn’t connecting with people, and also, the kind of business that I was doing. I was realizing this business that I started needed me around all the time so if was out of the picture then this thing was going to go down the tubes because everyone was listing their properties with me. I was like, “Geez, I totally messed up and I don’t even know what I was going to do.” I just spent all my money making this business survive. Seeing that I had hundreds of thousands of dollars in medical bills was a lot to take in. I didn’t know what I was going to do.

 
You had your ‘aha’ moment in the hospital and thus started your app career. How did it come to you?

This was in January of 2009 and I had just got an iPhone. I’m lying in my hospital bed looking to the left of me and had my clothes that were all cut up in a million pieces. I ended up getting in contact with a friend of mine who came and said, “Hey, I know you’re in a bad place and I know that things are really messed up for you right now. You have a business that’s going down the tubes.” He was like, “There’s a gold rush right now for apps.” I was like, “What the heck is an app? I’m not a developer. I’m not a coder. Why am I even wasting my time with this stuff? Look at me.”

He said, “Just think about it” and showed me this article. It was these two guys who had no tech experience at all but had started up this business and came up with a few app ideas. They made a tremendous amount of money and it was that moment that I saw and said, “Okay, well if these guys do it. I can do it too.” I can see that mobile is going to catch on. I can anticipate the change of the market. Internet is here. Online is pretty strong. It’s evidently going mobile.

As I lay in the hospital bed, it’s amazing what morphine can do because I got really creative and started drafting out this idea that I had for an app, which was based on people trying to grab my phone during the accident. I was like, “If I had all this information in my phone, I want some type of security in there so people can’t grab my pictures and stuff like that.”

I borrowed $1,800 from my step-dad. I basically said, “Look, I’m in a bad place. I don’t know if this going to work. I feel like I can make it work.” I think at that time, he didn’t have a lot of money either but he said, “You know what, I believe in you so here you go.” If I didn’t have that money to get going, I don’t know what I would have done but that was a great little jumpstart for me for sure. I started drafting the app and somehow wired money to India and hired this guy.

Long story short, I had my first app in the store two months later and it started generating revenue. It was absolutely incredible.

What was your first app?

It was basically a fingerprint security app. I understand the demographic and what they would want so I made it with good sounds and really good graphics. However, it didn’t actually read fingerprints. It did keep people out and worked as security because a lot of people at that time didn’t know really what an iPhone was. If you left the screen open and someone grabbed your phone and tried to scan their fingerprint, it was set up so only I could trigger it to unlock it for me. It looked real and had intent of going through the fingerprints. It had a secret unlock button on the top right that no one can see. The app had to be open and so you can basically close the screen. If they opened up, it would be in the fingerprint app.

 
You mentioned you outsourced your entire app to a programmer in India. How did you find them?

Someone from the hospital was actually from India so I didn’t have the idea of outsourcing to India at first. He basically said, “Hey, I’ve got this cousin that’s doing development and you can contact him.” Again, I’m in this weird state. I’m all messed up. I’m trying to figure out what’s going on. I was like, “Okay. That sounds great.” It was definitely a guided moment because that guy put me in touch with the team that actually was able to develop what I was looking for.

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This was obviously during a time when apps were relatively new to consumers and developers. How were you able to ensure your development went smoothly?

There were tons of obstacles. It was brand new so there’s no education. There was no book resource so most of it was just falling on my face and kind of learning how to deal with it, but it was nothing like I expected. Actually, it didn’t go as bad as it could have. I was basically stuck basically trying to get my arm to work again so I was pretty present during the process which is key for an app. You have to make sure that you’re constantly there, laying things out the right way, getting back to them, etc.

Luckily, they had done apps before but it wasn’t their very first iPhone app. I think they didn’t really understand completely how to go back and forth with the customer that had no tech experience so I had to learn how to communicate. It was somewhat of a foreign language but I always looked at it from the perspective of “I can figure this out. As long as I communicate properly and I really give them the expectations, I should figure this out somehow.”

I wasn’t really able to use computers so I sketched everything out. I tried to make it as good as I possibly could and then I faxed it to myself, turned it to PDF and I just emailed it to them. I went over how I wanted to look in sequence and stuff like that.

They started sending me three different examples. I said, “Hey, this is what I want. Send me three different examples. Let’s talk about it. Let’s tweak it if we need to.” During the whole process, I basically was there when they would do a couple of screens or make a button or program something. “Send me this immediately so I can look at it and then I’ll get back to you with my comments.”

 
Do you still use the same programmers in India to this day?

I’ve done over probably 65 different apps so I learned a lot, worked with a lot of different teams. The first one, I was fortunate because it was an actual team that had designers and programmers but as I started doing more apps with them, I saw a hole. I saw that things were a lot more expensive. They started charging more because they had value. I also felt like talking between India was difficult because miscommunication was really easy since it wasn’t the native language. I did four or five apps with them and I moved on to a different team. I was constantly doing that – doing a few apps, learning, moving on to somebody else until I kind of found the sweet spot.

 
A lot of entrepreneurs like to wait until their product/app is ‘perfect’ before they release. What’s your take on that?

I hate the word perfect. I think that that’s probably the worst thing that people can have because nothing is ever perfect. The standards have changed for Apple so before you could basically throw a bunch of stuff out there and make quite a bit of money. Now, the user demands more and Apple actually demands more so they will reject the apps that don’t fit a certain quality. I think probably the best advice I could give is make sure you get something in the store and if it’s taking you a while, scale it back a little bit and get something in there that you’re proud of. It should be good quality as far as design, and I say good quality meaning it works and aesthetically as pleasing. Once you have kind of that base, I really believe in getting anything in the store because without that, you have nothing.

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What revenue model did you choose between free, paid, or freemium?

It was the paid version for $0.99 before the whole freemium model was introduced. I started making quite a bit of money on it and I said, “Okay, this is a real business and I can really dedicate my energy this way” because it was amazing. Imagine waking up and you’re getting downloads from countries you didn’t even realize were countries. I was making $200-$400 a day and I wasn’t doing anything. The first time, I was like okay, finally, there’s a business out there that can actually pay you where you don’t have to trade time which to me was incredible because I’ve always been looking for that my whole life.

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What was your game plan in terms of upkeep and tweaks?

It took off but then again I didn’t know what I was doing. I did tweaks but it lasted for about two months and then it slowly started going down. When it went down, I started again realizing, “Okay, there are certain things I’m not doing that I need to do” and it made me really be present in that business because I thought I was going to make $400 a day for the rest of my life for some reason. It made me realize there are certain clues of the business, certain things I needed to do. I started really tweaking my icon and my screenshots. I started making them more story based so they could understand all the features and benefits. I started playing around with colors. I tried different blues and different greens to see if that would convert more. I just started getting more systematized with it.

 

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How did you expand your empire of apps?

My whole theory was if you spend all this time and effort to know a target demographic, why not keep giving them information, right? A customer is usually worth seven times what they originally paid for something, and I knew that. I was like, “Okay, if they liked security apps, I’m going to build more security apps.” So I did different security functions. I did different alarms like a chimpanzee screaming, a screaming voice, or weird noises.

I basically just started creating a network where people would come in through my funnel and thought, “Hey if you liked this security app, check out this one with all these different sounds.” They would buy that app and I started really understanding that it’s about the network. It’s about being able to target a demographic, give them what they want, and constantly give them new apps so you could increase your reach.

 
Being that your app isn’t a real fingerprint scanner, how did you handle bad ratings and reviews?

Initially, I was emotional about it. I was like, “Getting one-star review is horrible. People are mad.” And then I just got objective. I was like, “This isn’t a way to run a business. There is a lot of value here. Some people get it, some people don’t. If the person doesn’t read the description which I actually said in there, “This is for entertainment purposes only…” It’s only 99 cents so I wasn’t feeling too bad about that.

I was cognizant of making sure that the people that did love it and were pranking other people, that I was giving them as much value as possible. They would always rate 4-5 stars and the other people who didn’t like it obviously, they would crush it, but it evened out to at least be a relatively good rating so I wasn’t hurt too bad.

 
What was your first day of downloads like and then the forthcoming weeks?

My first day was about 90 downloads and then it went from 90 to 160 to 280 to 480 and it kept going up. It stayed right around I think like 500 downloads for a little while until it started coming back down and then I was really able to increase it at that point. I did a couple of things and just started growing my network. I was able to push traffic to it.

What kind of marketing did you do to get traffic and publicity?

I had no idea again what would work and I come from a traditional marketing background. I tried YouTube stuff. I tried some online PR articles and none of it actually worked, none of it at all. I realized that it’s a closed system so I really have to optimize what I have inside of the App Store and that’s when I started figuring out the process and figuring out keywords, and being good with categories. A lot of people do that. They spend time outside of the App Store but you have to first optimize what’s in the App Store. You have to know your keywords, your categories, your screen shots. If you’re not doing that properly, it’s always like 80-20, where is my time best spent. Time is best spent with optimizing what’s in the App Store first then going on outside of it. Then you can try to figure out, “Okay, would these little kids be viewing it on YouTube? I give them promo codes and it was getting thousands of hits but I did that after I felt like everything else was converting.

 
How did you utilize keywords properly with your apps?

I didn’t know about keywords in the beginning but figured it out and started naming my apps with long keywords. In fact, I did that with company names as well. I had little trick where I found out that if you named your company a certain name and actually was a keyword, that made your app higher. First app I had, it just shot straight up. I’m like, “Okay, I’m on to something here.” So there still is little tricks that they can do. Like any industry, there are holes that get filled and then doors open up, so that one is not as strong but it still does work a little bit.

Now if you did a flashlight app, there are a bunch of flashlight names already. It’s really first to market and first to really grab that keyword. So things have changed and you have to do things a little bit differently. You have to look at other keywords that people might want to use it for, so maybe it’s camping, maybe it’s friends. You can find other keywords that will be strong to throw your app up there.

It seems most of your apps are simple in design and functionality. Why not build something more in-depth and complicated?

In the beginning the way I worked was basically as simple as possible. I do want the demographics to keep coming back to it. I made three app companies and sold them off, and did a bunch of apps and I could continue to do that but a few things have changed. One thing is I’m not as excited to make those apps anymore. I want to work on bigger app projects.

The other thing is that Apple is looking for different apps and different standards. Games have obviously taken off dramatically. The revenue from games has taken off too. Because the market I’ve also changed my apps a little bit.

I still like entertainment and utility apps, but I also see the value of working with some higher level games and my strategy now is rather work on a few apps and keep making them better and better than having 50 or 70 apps to manage because there’s a lot of work with keywords, updating them, etc.

I think I had probably 25 apps in one company with everything from security apps to some picture apps to a couple racing games. We were doing $50,000 to $100,000 a month. We sold that company and the new owner has taken it and he has doubled that. He has done extremely well.

 
Back then you chose the paid route but what do you think works today?

You have to go free these days. You have to get them in the door. Consumers change dramatically. They realize that they don’t have to pay for a bunch of stuff. They want to get hooked first. There’s no barrier to entry with free so my strategy is give them a free app and sell them stuff once they are hooked. So give them either entertainment, fun, or value, and as soon as they get that value, give them an offer that says, “Hey you like this? Well check out this or get more coins” or give them any reason to purchase something. Again, we’re talking about pretty low transactions but you have to go free in the app space these days. That’s what the numbers tell you too.

 
It seems most of your apps are successes. Have you ever failed with an app?

I messed up a lot so make sure you understand that. It’s not like I nailed every single one of them. I fell on my face a tremendous amount but I just kept going. I was kind of awakened from my experience from the accident and I had an attitude where I don’t care if you put a brick wall in front of me, I was going to smash through it. I moved to San Francisco when my first fingerprint app got rejected. I didn’t even know what I was doing. I dressed up in a suit and tie in 95 degrees, hitched to Cupertino where Apple was. I tried walking into Apple saying, “Why is this thing rejected? What can I do?” I was just determined to make it work.

When I say every app has made money, it’s because it generates a certain amount of income over the course of its time so I’ve made my money back because it didn’t cost me a lot of money to actually make the app. I had an app called Harbor Madness as a competitor to Flight Control, which was at the top of the charts for a long time. I spent all this time making an app, then we launched it and it didn’t do anything. I understand marketing. I have a network. This is the best game that I have done. But I missed the mark on it. So, timing is everything and that market was already gone when I launched it. It still made money but it wasn’t at all what I thought it was.

 

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harbor madness

What would you do differently?

As far as what would I do differently, I think what I would do differently is build the network pretty fast and instead of continuing to do another 20 or 30 apps, I would have pushed all my traffic and got them into consumers into one or two major apps that I would be proud of that I could be working on three or four years out. That’s what I would have done differently instead of constantly building all these apps or generating revenue and then selling everything off.

 
What are your top three tips for anyone that wants to make a mobile app?

The first one, which is mindset, is really understanding why you want to get into this because you’re going to have tons of things that basically tell you “You can’t do this” or “Apple is going to reject your app” or you’re going to miss the mark on something, and the difference between that being a multi-millionaire app or being a failure is that drive, basically the gasoline, the fuel for yourself. So figure out why you’re doing this and really make it juicy. Get it emotional. For me, I did a vision board and I wrote everything on my mirrors, all around my place and in my bathroom, and so whenever I wake up, I could see this guy with a fully functioning arm that was traveling all over the place, and I associated so much with that, so that psychology really was conditioned and ingrained in me. That to me is the first step before anything.

The second tip I would say is just really understanding the market place. Don’t look six months ago or three months ago, or Angry Bird-ish, but get really clear with what the market is right now. What is it telling you? It’s like the Matrix. You really have to spend time understanding it and understanding what you want to do with it. Some people might want to jump in and do photo apps. We had a student that’s killing it on photo apps. It’s his first one. Some people might want to do games. So figure out what’s going to really light you up and what the market is saying.

The third one is just getting clear with your team. If you’re a developer, typically, you’re spending all your time coding and not understanding the marketing. These rules are really important with your app business. Even if you are a developer, you have to be able to outsource some work and understand the marketing or you’re not going to get an app that’s going to do anything. I would say pick your team very wisely. Spend time vetting your team, vetting who you’re going to be working with, make sure that they are quality. Make sure that you don’t spend your last dime on them and you have a backup plan. Ask really good questions, see their work, and understand what they are good at working on. I think you can understand marketing and picking the right app idea but if you choose the wrong developer and you sink all your money into them or you don’t manage them properly, then you don’t have an app at the end of the day. It’s really important that you understand that process. Maybe talk to somebody that has worked with a successful developer, encoder, and designer, and you get their recommendation.

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What apps do you have in the works now?

I think it’s important to be really clear with what you want. I don’t want to be an Angry Birds and Zynga, they are way different business model and I’m actually not good at running a huge team that’s working with 50 people and managing them. I like the process of what it’s making me grow into. For apps, I see myself building an app that is similar to a brand level of Angry Birds, as a household app.

An example of this would be like a camera app that people use and get a lot of value from but doesn’t have the cost associated with Zynga or something else because that’s a lot of work and that’s a lot of people. I love making apps that I can scale but on a low resource cost and people budget because you can still use that and that’s what’s fun about it.

We’ve got a bunch of apps in the works. One is basically a dueling off game. It’s like a social fighting game that you can play with your friends on, almost like a cool 007 type of app. We’ve got other couple of social games going on. I’ve got some picture apps that we’re working on that we’re about ready to launch. I’m trying to do less apps, higher quality, and getting more revenue from that.

For Duel Off, we just did a soft launch across Australia, New Zealand but we’re going to wait on that one until we get some analytics and then we’re going to tweak and do a full scale launch. It’s English speaking and for us, soft launch is important because you don’t want to throw an app in the store fully if there could be bugs of there could be something wrong with it. We want to get some data and basically optimize it. We want to make sure that everything converts and monetizes. Once it does that, we can throw all kinds of traffic in its direction, but it’s foolish to do that before. You basically could waste your shot at really getting it up there in the charts.

 
You also authored a book based on your app development experiences. What is it called?

Yeah, the book is called App Empire – Make Money Have a Life, and Let Technology Work for You. It has done really well. We’ve had a lot of success stories just from the book. Once I did the book, a lot of feedback was basically like, “This is amazing. I love it. I’m learning a lot,” but I also have all these questions and that made me think, “Okay, what can I do to answer these questions?”

In addition to your book you’ve created a course on app development. Tell us about that.

I got into the internet marketing world last year by creating a product that really held people’s hands through the whole app process. I was helping right around 10-15 people and they all became successful, and a lot of them became very, very wealthy. I was like, “Okay, I can’t scale myself that way so how can I scale my knowledge?” I took the book to the next level and created this whole course with all these different software programs that I created that was automated for people so they could figure out what their app ideas were, pick their keywords, and have all their infrastructure set up. We’ve had some very successful students. Some were making $100,000 a month. They were making faster money than I was back then because they are just grabbing information and they are plug and playing it. It’s incredible to see.

That has been really fulfilling. It has been a process that I’ve had to work at but it has really been fulfilling to see students making that much money and it changes your life. As you know, once you get cash flow coming in, it changes your life, your family’s life, your friends’ life. It’s a completely new you because you’re not stuck to this whole survival of having to work and eat and survive. I’m very grateful for that. I’m very thankful for it for sure. It has been awesome.

Right now, in our community, we have right around like 40,000 and then as far as like full-time entrepreneurs, we have right around 2,200 people that are developing apps that are active and making money. We really have a good reach. Like anything, you have people that are working hard together so the synergy of our group I think is what’s more powerful than even some of the training.

 
Lastly, what should someone do right now after reading this article if they’re motivated?

I would say take action in some way or another. Mobile is hot like we’re saying. I feel like there are two types of people. There are either people that are going nuts at this trying to make it work one way or another or there are people who are saying the gold rush is over, mobile is dead, it’s not going anywhere. It’s obviously not dead. It’s just like any business or industry, things change so as entrepreneurs, we have to change with the times. That’s our skill, that’s why we own our own businesses. That’s why we have cash flow to travel around the world and do what we want to do but I would say get educated. You don’t have to buy my book. There are plenty of books and information out there and blogs and stuff like that to take action and get educated, and take steps, even if it’s a baby step, going to a meet up group or an interview on somebody on oDesk or Elance. Take some step into that direction because mobile isn’t going anywhere. It’s making people very wealthy so you should be one of them.

 
We want to thank Chad Mureta for sharing his story and awesome mobile app development insights. You can find out more about him and his products at the following places:

App Empire – Chad’s Official Website
Twitter – Chad’s Twitter
Facebook – App Empire’s Facebook
App Empire Book – Buy Chad’s Book on Amazon

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Chad Mureta App Empire

Secret to Success – Brian Garrett

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In the world of entrepreneurship, those who hustle the most are often the ones that succeed the furthest as well. When we refer to hustle, it’s not referring to simply sending emails to people but rather going out there meeting people and picking up the phone and making things happen without taking NO for an answer. As a slick online marketer, Brian hustled his way into the music industry by thinking out of the box to get in front of major music corporation executives. As a result of all his efforts, Brian has now worked with established and upcoming musicians through his company Future Star by providing digital marketing and talent management services.
Tell us how you became an entrepreneur…

I’ve always been a computer guy dating back to middle school around when AOL, Prodigy, and all these internet service providers came out. I started doing internet marketing and email marketing for different clients, from Fortune 500 companies, to adult sites, to “quit smoking cigarettes” companies. All kinds of stuff basically, sending out millions of emails a day. A lot of them were affiliate programs. I built a database and had signed up a bunch of other mailers underneath me and gave them a smaller percentage so I was keeping the rest, which really got me going and thinking like an entrepreneur. That was during high school times when I was probably 15 years old. I did that through all of high school and made good money off that but eventually got a job.

During my senior year of high school, you were required to have a job to be part of a program called OJT, which is on the job training. If you have a job, you can leave school early and go to that job. I had been hired by a lady to come to her office after school and do email marketing for her. It’s funny because I had friends in high school whose parents worked in her call center too. Here I am, coming from high school at 16 years old, and she’s giving me my own office, buying me a computer and what not. That was fun and I did a lot of email marketing for her and other online marketing too.

However, that business got really shady and there started to become a lot of lawsuits because of spam mailing. I knew a guy that lived locally that actually had gotten into a lawsuit over that. He had like nine computers set up at his house sending emails all day. Once I saw that happen, I moved in a different direction and didn’t want to be caught up in any of that. That’s how I really got into the whole email marketing stuff to begin with and I just had a computer background all along. I just took that knowledge and experience and moved it towards the entertainment business in 2006 when I started my company, Future Star.

 
How did you even get your start in email marketing and learn how to do it?

I would sit in AOL chats and started seeing people advertising for different companies and it piqued my interest. I started to research it and came across a company called Bulk Barn. They are out of business now but they were basically a message board for email marketers.
I was reading what people were doing and the type of money people were making. Mailers back then for products with affiliate programs operating on a large scale were making $5,000, $10,000, $20,000 a week, if not more, depending on stuff they were doing. I’m 15 years old sitting in my room like, “If I could get a little piece of that, that would be great.” Almost all the kids I know were going to Subway after school for work so I was trying to figure out how I can make some decent money online.

I started reading forums and I started networking with people online. Different affiliates would post their programs on forums and their payouts, then I just started researching the actual act of mailing and talked with other mailers online and saw the programs they used. They had to use port 25 which was the port that you send mail through SMTP, which is a mail server. I started researching and I started getting proxies and learned the whole way of doing it. I started doing smaller mailings for companies to see how it would work and was getting a good success rate. I started coming up with innovative and creative subject lines to catch people’s attention that people weren’t using yet at that time. For example I would start a subject with “RE:” like it was a reply to an email conversation that was already going on. No one was doing it at that time so it was being creative and allows you leverage over other people.

Once I started to see a little success, $200 bucks here and there, I was like, “I could take this on a bigger scale,” so I started posting my own ads on the forum and getting other mailers to sign up under me and paying them less. Buy low, sell high theory, pay them a smaller cut, take the middle profits, and let them do most of the work. I would go on vacations and log into the internet to check my earnings and see where my money was at from other mailers working for me. That was a great feeling.

Again, I was about 17 years old at this point going on trips to the Atlantis Resort in the Bahamas and eating at the Melting Pot three nights a week down here in Florida at a young age. At that point, I was making somewhere around $3,000 a week. It was short lived though because things got pretty iffy in that business and I got out of there like I had said before. But during the time that I was actually in it and rolling strong like that, at that age especially, even just to be getting a $2,000 check here and there, makes you seem like you’re on top of the world at that point.

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As a young entrepreneur rolling in the money, were you able to save any?

To be honest I blew through the money quicker than I got it. At that point it’s one of those things where I didn’t really appreciate fast money. Rappers and athletes that I work with now, they throw it away on strip clubs, jewelry, cars, this and that. They blow it as fast as it comes in because they think it’s going to last forever. I was young and had that same mentality, I was trying to show off at school and have the coolest car. I put the 20” rims on the car with the low profile tires and a sound system with five TVs. I was going on trips, dinners, and stuff. I was blowing through it just as fast as I had it but my mentality was if I could make it then, I knew I could do something on a grander scale when I really got serious and grew up.

 
Since you were doing alright during high school, did you even go to college?

After high school I went to Tallahassee Community College for two years and then I was going to transfer to Florida State after that. Two years at college is when I decided, as an entrepreneur, you always have the mindset that you can make money doing anything that you put your mind to and commit to. I mean if there’s a will, there’s a way. If you can envision it, you can make it a reality.

I had already done a bunch of email marketing, and made some decent money so the school thing was never really for me. In high school, I never wanted to be there. I would always try and get out whenever I could or not be around. I’d rather be home on the computer researching stuff and networking, learning and programming, and coming up with different ways to make money. For me personally it was all about the power of the internet and finding ways to capitalize off it from the very, very beginning, even at a young age.

 
How did you end up getting involved in the music industry?

I moved up to Nashville after my second year in Tallahassee where my family lived and my brother was producing music at that time. He always had a passion for music and was producing and writing songs. I was hanging out in the studios and everyone that was in the studio saw my business sense and hustle, and the ideas I would come up with on ways that they can market themselves or brand themselves. They were like, “Oh you’d do good in the music industry you should start a company”. I’m a big fan of music and always have been so I just ran with that. Me and my brother sat there one night and tried to think of a company name or a name to do business as. He was like, “Future Star.” I did all the research. It was available. I was like, “That sounds cool. It’s catchy. It rolls off the tongue easily.” So in April 2006, I started Future Star and that’s how it was started really.

When I first started it, I looked up to all the idols and all the icons in music, and said I’m going to be the next music mogul. I want to be the next Jimmy Iovine, Clive Davis, Diddy, Jay or whoever. I wanted to be that next big thing and I said, “I’m going to be that somehow someway.” I’m still working to be that but I use my internet powers to help brand artists and to help them get music out and establish my company. I branded myself as the “online marketing company” when I saw everything starting to go digital in the music business so I got that reputation as the “go to guy” from an early point on.

After the business was formed, how did you grow it?

In 2006 I was going on DJ message boards and networking with upcoming artists and DJs and started to build a little reputation. I’d publish links on the internet of songs for the DJs to download and I started to build a little name for myself and a little following. Again, I’ve been a computer guy my whole life and saw that music was becoming mostly digital and CD sales were declining. People weren’t actually going to the stores anymore to buy physical hard copies of music. I said, “Okay. I used to do email marketing for all these other people and companies in high school. What if I can build a little email list to DJs and start sending out artists’ music?” At this time, people were still physically packing CD singles and mailing them to radio stations and stuff.

I started to build a little email database from the DJs, the message boards I was on, different artists, and it just kind of spun into one thing after another where the list continued to grow. It started with like 100 emails and then it got to 500 and then some of the DJs that were on my list would say, “Hey add my people to your list so they get the music too” and it just continued to grow. To this day in 2013, I have the largest email list database in all of urban music business with over 120,000 contacts of all DJs, media, blogs, managers and artists, and record companies, publishing companies, etc. To this day, eight years later, it is one of our most popular services and what the whole Future Star brand was really based off of and how it really started, and then I just continued to expand it from that.

 
Who does Future Star currently work with?

Luckily we’ve had the chance to work with LOTS of artists, athletes, and other executives some of which immediately come to mind are – Diddy, Lil Wayne, Birdman, Ray J, Alicia Keys, Rick Ross, Three 6 Mafia, Young Jeezy, Mya, Trey Songz, Chris Brown, Aaron Carter, Akon, T-Pain, Chamillionaire, Timbaland, Flo-Rida, Nelly, Scott Storch, Lloyd, Busta Rhymes, Fabolous, Jadakiss, DMX, Trick Daddy, Soulja Boy, E-40, The Game, Jazze Pha, Ciara, Yung Joc, Usher, The Dream, Juvenile, Keri Hilson, Polow Da Don, Ne-Yo, Lil Jon, Paul Wall, Lil Scrappy, LL Cool J, Lupe Fiasco, Keyshia Cole, MC Lyte, Young Buck, Murphy Lee, Pitbull, Slim Thug, Swizz Beatz, Tyrese, Yung Berg, Machine Gun Kelly, Floyd Mayweather, Vontae Davis, Bryant Mckinnie, Steve Francis, Antonio Tarver, Andre Berto, Sean Weatherspoon, Asante Samuel, John Singleton, Tracey Edmonds and more.

 
How did you get music companies and executives to even give you any attention at the start?

The way I got in touch with them was really all just based on my hustle. I was building relationships at that time and people were getting to know who I was. I would go to music conferences and different events, and network with people, and show my face. I was building a nice little network. Plus I would reach out to everybody and anybody I possibly could online through email, social media, friends resources, etc.

As far as the bigger stuff goes like the major record labels, I just kind of got tricky and sneaky. Def Jam Records, Universal Motown, Universal Republic, basically any company under the Universal Music Group umbrella, I knew that all of their email addresses ended with the company name. So any employee I wanted to reach there, I knew it was their firstname.lastname@company.com. I knew what all the labels company emails were so I was just finding people through research online. Everyone that I found that worked in a label, I would just add them to my email list as firstname.lastname@_______. That’s how I started to get at all the major label people by just reaching them with what I was doing and they started reaching back. They began engaging with me. “Hey, we can use you for our releases, on our new upcoming projects. We’ve got a lot of artists.” It was a combination of luck, timing and the balls to do what I was doing and the gamble I was taking.

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Isn’t your email tactics considered somewhat spammy?

It always has been, but as long as you follow proper protocol and as long as there’s an unsubscribe link that people can remove themselves from if they want, then once they remove themselves, you can’t add them again. The email servers don’t let you so you have to be spam compliant so there’s none of those issues. Most of these people I just threw in there. People would send out an email and they wouldn’t blind copy their contacts so I’d take them and copy and paste them into my list so it would grow and the more contacts I have, the broader audience I have, and the more possibility to create opportunity to get business. It’s a pretty simple approach for me but no harm was done.

If somebody didn’t want emails, they could just unsubscribe from the email and keep it moving and not have to deal with it, but it definitely played in my favor for sure. It brought me a lot of business and a lot of clients and helped me to continue to grow and expand my brand value. Most importantly, it kept the Future Star name in front of everybody’s face because every time I’d send something out, they would see Future Star, Future Star, Future Star over and over again. It was something to help me really start branding the name to the point that it is.

 
Did you have any big breaks that really helped put you on the map?

I wouldn’t really say there’s one specific break that I could think of. I would say it’s just consistency and persistence and determination that put me on the map. I have a “refuse to lose” mentality. I also helped blow up a couple of records that were big singles that ended up doing really well and Future Star was the first company to service them to the music industry. Back in 2006 I helped launch a lot of new songs from tons of major recording artists.

I also helped break a lot of new artists and introduce them to the world. Most recently, Juicy J’s song Bandz A Make Her Dance with Lil Wayne and 2 Chainz, is one of the biggest songs in the country. It’s almost platinum which is huge in this era and Future Star did the world premiere on that and did the email blast to all the DJs, media, and blogs to help launch that record. We also did Ray J’s new very controversial single “I Hit It First” and partnered with him on the launch of that record which charted on the Billboards. Not really one big break but just little breaks I think that all add it up into making it into one big picture.

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It really seems like a huge factor of your success is your straight hustle…

It really is even to this day. I was doing anything I could to be honest with you. I would call offices 100 times a day. The secretaries would be like, “Such and such is not in the office anymore” and I was like, “No, he’s in the office, trust me. I saw that he replied to an email.” His reply might have been like unsubscribe me from your blast but I knew he was around because he wrote me back. I would just keep calling and calling. I would send packages. I would put envelopes together in the mail with a print out of services that my company offered and my contact information. I would physically mail them to all these offices in New York and LA. Once I figured out someone’s email at a record label, I would send them personal emails and say, “Hey George…” But a lot of it was just hustle to be honest. I would pretend like I knew people. I would say, “Hey I haven’t spoke to you in a while. I hope all is well since we last spoke.” I really just went for it like I figured I have nothing to lose. They are either going to ignore my email which if I don’t reach out to them anyway, they will never know who I am, or they might just roll with it and contact me, and then that opens the door for me to start building a relationship or at least to pursue other avenues.

Literally, 90% of the celebrities, artists, athletes and people I have relationships with today, I met by pretending I knew them or by making them think they already knew me. When you come to think of it, it’s really a great strategy. Let’s say I want to talk to Young Jeezy the rapper. I get his contact and send him an email and say, “Hey, I heard the show was crazy. We got to catch up and talk about putting this new song out everywhere. The DJs love it.” or something just to make him feel good and hyped up, acting as if he already knows me. They usually reply, “Okay, that’s cool. Let’s get the song out everywhere or whatever. Let’s talk about what we can do”.

I would just make them believe that I already had spoken with them before because like I said, there’s only two options: Either ignore me or reply to me and go with it because they might feel stupid by not answering because they are like, obviously this guy knows me if he is emailing me and he’s talking about things going on with my career so he must know me. I’ll make them feel awkward if they don’t reply. That’s really how I get it started and how I built relationships with everyone including the major record labels and a lot of the biggest artists that I still talk to, to this day frequently.

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Let’s say I’m a musician and want to work with you. Tell us how it all works?

So first things first we determine what their needs are and most importantly, what their budget is because it would be ridiculous for me to sit there and put a package together for somebody that costs $7,000 if their budget was $500. I can’t tell you how many times that happens when people say, “What would you price us for this, this, and this? I’m like, “Just tell me what you can afford or what kind of budget you have to work with and then we’ll strategically plan a marketing campaign based on the services that we offer and what your budget allows.” Once we determine a budget, then we can go through services and decide, “Okay, they have a new single they want to get out and we can do the following to help.”

The first thing we usually do for any client is an email blast to get it out to all the DJs, all the big sites, the blogs, the record companies, different various managers, other artists, etc. It’s one big gorilla style list so the 120,000 contacts is just combined from DJ’s to promoters and people that book shows and events to people from Disney, ESPN, TMZ, etc. It’s all in my list and it goes out to everybody – VH1, MTV, BET, all the networks – so it just creates a big mass exposure and just helps raise the awareness and get some eyes on the person and the product ultimately. Now emails can often get overlooked by sending one email out today so normally, we’ll try and do a package of multiple email blasts. This way, we have consistency and we follow up.

We have a service called AVPs, which stands for Audio Visual Presentations which are basically like mini websites, flash animated that are very popular. We do those for artists for their singles, mixtapes and their albums, and we have two different versions of those. We do one version that is targeted towards the music industry, towards the DJs, the blogs, the record labels, etc., and then we do a different version that we offer that is for the consumers, for the average fan. If they’re putting out a new single and they are trying to get the attention of radio stations and the behind the scenes people to help get their song out and get it posted on website, we’ll do one targeted toward the industry. If we’re doing one to promote an album, mixtape, or something, we’ll do it towards the fans. We’ll give them a preview of songs and build the anticipation and the hype of the release.

We do full online marketing which basically gets you the Future Star name and cosign of our brand across all digital platforms for a four-week period. We charge a flat rate per month for the online marketing campaigns and we strategically use all of resources and our relationships with the media, the blogs, the DJs, etc to actively promote their song, mixtape, album, video or whatever it is that the artist is promoting at that time for that four-week period.

We do radio promotions for artists. We’ll get songs on the radio, so based on the budget, we’ll tell them how many spins a week at radio stations they can get and which stations will play it. So ultimately, it just boils down to just what their needs are and what their budget is.

The best thing I can say is we help them with branding themselves and whatever it is that they are promoting at that time. Obviously, we also do all social network promotion too. Future Star does online media which we’ll talk about after but that’s kind of how my other company evolved because we were already doing social media marketing for a bunch of artists in the music industry. People that would come with a smaller budget or a new artist that wanted to gain exposure or have an online presence, they would hire us to do Twitter, Facebook, Instagram or YouTube services for them and boost up their numbers or their image to make them look they were bigger and more popular than reality.

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Do you think even established musicians can still benefit from your services?

Of course and that’s a huge part of our clientele. That’s the benefit of the business. Artists in the music industry are always going to need marketing. It’s inevitable. It doesn’t matter if you’re an upcoming artist or you’re a major artist. No matter what, you’re still going to have a new song at some point, you’ll still going to put out a mixtape, you’ll still be putting out albums so no matter what, you’re going to need services and people to market them. Granted the bigger you are and with technologies these days, someone like a Chris Brown, Rihanna or Lady Gaga can go on Twitter and post a song and it’s going to start to spread organically on its own but they still need people like us and a team. These artists can’t do everything themselves so just sitting on Twitter posting a song isn’t going to make the song blow up. They still need people actively promoting it and working it behind the scenes to the industry side, the tastemakers in this business, to get things going and get the ball rolling. The clients are recurring so that’s the good thing. Although once you get them and as long as you provide great work, then you can usually retain the business.

 
How often do you send emails out?

We try not to over saturate it at all. We’ll never send more than one a day usually. We didn’t even originally send emails every day. It’s really just based off of supply and demand on virtually whenever our clients pay us and what they need because I’m not sending stuff out for free. So many artists think they are stars and you’re going to do it for free because you’re a fan or something. That means nothing to me. I’m a business. I’m trying to make money. If they are not paying, I’m not sending. We do it as needed but people aren’t bothered by the fact that we continue to send them so much because that’s what we’re known for and what we’re branded as. That’s why people are going to us because they want that new music, they want those updates, those exclusive offers and songs, the different things like press releases, etc, so they expect it from us and if they don’t like it, they can hit the unsubscribe link and they never have to hear from us again.

 
What other directions are you taking Future Star?

Future Star is the brand and there is going to be still expansion for that in several divisions. There’s Future Star Music which is a record label. There’s Future Star Marketing and Promotions which is what I use to do all the marketing stuff, the email blasts, all the consulting stuff, booking shows through, etc. There’s Future Star Management which is my management company that I just set up which I’ll be signing artists, songwriters, DJ’s, athletes and producers to and then there’s the Future Star DJs which is the DJ coalition. We currently have around 100 or so DJ’s. So, there are four subsidiaries to the Future Star brand at this time and that will constantly evolve and grow with time. I do also plan to expand into television and film within the Future Star umbrella as well in the near future. In fact, I’m working on some reality TV show concepts as we speak I’m excited about!

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Tell us about your new social media promotion company…

Earlier, this year, I created my new company, Fast New Fans, which is a social media marketing company specializing in Twitter, Facebook, YouTube, and Instagram services, and I did it on a more broader scale. I figured if all the artists love these services and they are already paying me for it through my Future Star company, I will just funnel all the work through this new company for my prior clients plus reach more customers. It made it easier for me because they can order directly from the site with the shopping cart and streamline everything to one place versus them having to contact me, tell me what they need, me having to go into PayPal and send a payment request etc so I just streamlined it all to one website they can go to.

I created Fast New Fans for two reasons. One, to streamline all the work I already had coming from this from Future Star to make it easier and two, to reach a new audience of people like restaurants, car dealerships, bars, clubs, or really any kind of corporate company or brand or athlete or anybody that needs to build their online image and boost their online presence to look more credible!

For example, if I come across a restaurant in Palm Beach on Facebook, I click their fan page and they have 71 likes and I click on another restaurant fan page and they have 2,000 likes, I’m going to think that restaurant is more popular because of more likes. I started to reach a different audience and I’m branding it now to more of a broader demographic than strictly new fans for the music industry and it has been great so far. Huge names use us in the entertainment world so I figured why not expand it. It’s 100% confidential because obviously, people don’t want you knowing that they boosted their numbers on their pages so I keep those confidential but I can tell you some of the biggest celebrities that you can even think of right now, there are a few that are using me and our services as well as tons of upcoming artists because image is everything.

 
What do you say to people who think it’s cheating the system?

I could care less because they clearly don’t understand marketing or branding. Perception becomes reality. People only believe what they physically see in front of them. If you come across an artist’s page and they have 150 Twitter followers and you come across another page and they have 15,000 Twitter followers, you’re obviously going to immediately be more interested in the person with more followers because you’re going to think they have more credibility, they have a bigger buzz and following. It’s a branding aspect. So with Future Star, I was doing these services for clients and artists and I saw how popular it was so as new social network services came about, I continued to offer those. For example, when Instagram came about I started doing Instagram followers.

I just want to address the people that think it’s shady, it’s fake, etc for a minute. These are the people that just have to understand we’re not trying to scam people or fool anybody. What we’re doing is building a base and a foundation for them to grow organically and naturally from there. Using the examples like I had said, if you come across a page that has more likes or more followers or a video on YouTube that has more views, it just piques more interest so the end user and the consumers automatically are going to have a piqued interest in that profile or that video because they would think it’s already bigger than it is. Perception is everything and image is everything.

We give it a jump start is how I want to look at it. That’s what we’re doing. We’re giving it a jump start and then it’s going to grow from there on it’s own naturally. We’re helping people just have a stronger look online and a stronger foundation to build from. It’s a huge success; it really is especially in today’s times, technology, and with these social media networks, so it’s a big market. It’s just an easy service to help people out and get that superstar image that they are looking for.

It looks like you’ve done ok so far. Why do you think that is?

As far as Future Star goes, I’m a white guy in an urban music industry who hustles like no other. Probably 99.9% of aspiring artists, producers, or record labels fail so I’m blessed. The music industry is one of the most cutthroat, backstabbing businesses there is, and the entertainment business is in general. If there’s a will, there’s a way. You could hear a million NOs, but it only takes one yes to change your life, so I’ve just never taken no for an answer and I just continue to be persistent. Like I said, I think the key to success in any business really is communication and 95% of the deals that I close was due to me emailing them and me keeping in touch.

Even if I’m not trying to do work with them at that time, I’ll reach out to an artist or executive at a label and just say, “Hey man, just checking on you. I hope all is well. Hope you had a great year” or whatever. “Keep in touch. Let’s continue to explore opportunities” just to keep my name in their face and just for them to keep thinking about me and my company.

So communication is key, and perception is everything. I’ve always made myself and my brand look bigger than it was. Funny story about that, when I started the company in 2006, I just took a picture off Google of an office that I found on there, put it on my site and everyone thought that was mine. It was like a conference room and everyone thought that was my office. Every time somebody wanted to meet, I would just somehow lure them out of that and pick a public meeting place so they would never have to come see my office or my conference room, since it really didn’t exist. I was living in Nashville, Tennessee at that time but now I live in Florida so obviously, when people say, “Is that your office?” I would say, “That was when I lived in Nashville but now I’m in Florida so I don’t have that one anymore.” It has always been about perception and the hustle.

People want to be affiliated with a brand that is successful or a person that is successful. If you hang around a bunch of bartenders and you go out after work with them, that’s their life. You know the people that you’re surrounded with and the lifestyle they’re content with. I try to personally surround myself with millionaires, billionaires, and success because those circles open other opportunities for you. It could be a lane that you never even thought of. I never in a million years would have pictured that this is where I would be when I was in high school or college especially being that I’m only 29 years old now. I just happened to go to Nashville and start hanging out in studios and it evolved into where it is. I’m a firm believer that it’s all about the circle you surround yourself with and I just try to stay in the circle with positivity and success, and people that are other entrepreneurs and businessmen because it could always lead to other opportunities. Nothing is going to be given to us these days. You have to work for it and some people are just lazy and don’t want to put in the effort.

You can’t teach passion, drive, and work ethics. It’s like you either got them, or you don’t. Entrepreneurs and readers of this site and as you guys know, are born with it. That drive is there. You fuel off of success. You fuel off of staying busy and working. You fuel off of creativity and coming up with a new idea or new concept and piecing it all together. That’s what makes it all fun. That’s what keeps me going. That’s just what keeps my dreams alive and everything I do business wise. The possibilities are endless.

Now you see these kids creating social networks and selling them for 500 gazillion dollars. There are tons of opportunities out there especially the internet online world. The tech space is where it’s at these days. I’m just happy that I’ve been in it for a long time and I got some tricks up my sleeve to help me do bigger and better things.

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What’s next for Brian Garrett?

What’s next for me is I’ve got several new companies that I’m working on outside of Future Star and Fast New Fans at the moment in all different areas of business actually. Majority of my stuff will always be online ventures and things within the tech space but I’m always working on different stuff and I’ve got a huge list of business ideas that I’m starting to dial in on and work on transforming them from an idea to a reality. Like I said, it’s all about the mindset. The key is just never bite off more than you can chew and a little bit of balance of everything because some people get over their head and they want to do this, this and this the next, and they never really get anything started or never really make any progress on their dream because they are all over the place and they don’t commit to it.

For me, it’s all about building the brand and then moving on to the next one. I would have never moved on to Fast New Fans if Future Star wasn’t already built and the foundation wasn’t there. Once it got to that point then I created Fast New Fans and started branding and building it which I’m still doing now. I’m also looking to invest into some other start ups and companies as well. You never want to throw all your eggs in one basket. If there’s opportunity, I’m going to go after it no matter what it is so I just keep my ears and eyes open and see what opens doors for me and go to them. That’s kind of where I’m at now but I do have some new businesses coming and like I said, they are in development now and as soon as they are ready to go, the world will know about them. I’m really, really excited about them!

 
We’d like to thank Brian Garrett for sharing his story. You can find him at the following places:
 
 

- Future Star Official Website
- Brian Garrett’s Twitter
- Brian Garrett’s Facebook
- Fast New Fans Official Website

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Secret to Success – Lewis Howes

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For entrepreneurs, perhaps a greater reward than money is the reward of time and the freedom to do what you want, when you want. As entrepreneurs, we all envision a lifestyle we want to live, one where we aren’t tied down to a specific location or title. The perfect example of the lifestyle entrepreneur is Lewis Howes, a professional athlete who succumbed to injury to only bounce back as one of today’s top online marketers. His LinkedIn, Youtube, Facebook, & webinar online courses have raked in more than $2.5 million a year allowing him to travel the world and fulfill his life-long dream of becoming an Olympic athlete.
Tell us how you got started…

I started playing professional football when I was younger and always wanted to be a pro athlete. So after college, I made All American as a football player and a decathlete. Eventually I had to make a decision, whether I should train for the next few years as a decathlete to try and make the Olympic team or should I go and play professional football right now. I had decided I wanted to play professional football and start getting paid right away. I ended up making the Arena Football League but got injured in my first year so I never really had the chance to make it to the NFL. The goal was to play in the Arena Football League, do well in it, and then move up to the NFL after a year or two.

I broke my right wrist diving for a football under the wall so I had to have surgery. I was in a full arm cast for the next six months and slept on my sister’s couch for about a year trying to figure out how to make a living and what I was going to do next. I didn’t have a college degree at that time so I was trying to figure out if I should even get a job. However, if I didn’t get a job, I wouldn’t have been able to live on my own and pay off the debt that I had from school and the credit cards that I was living off of.

A good mentor and friend said to check out LinkedIn for jobs. So I got on LinkedIn and started to become pretty aggressive on there for about 6-8 hours a day for the next six months just connecting with people, trying to make introductions, and adding value to people in any way I could. That’s kind of how everything else started.

 
LinkedIn was still fairly new. What was your main objective?

It already existed for a few years actually. I got on there in late 2007 and there were about 20 million people on there at that time and now there are over 200 million people. It has grown tremendously since then. It has only helped people even more since then but for me, there are a lot of people on there then that I could connect with still.

Originally, the goal was to connect with as many sports executives as possible to see if I could get back into playing football or work in sports somehow, because sports was what I really liked. I started connecting with every sports professional I could and then just started interviewing them, asking them questions like: What’s your biggest challenge? What are you really working on right now? What’s the biggest thing you’re trying to overcome?

I would always get: “I’m looking for a graphic designer. I’m looking for this type of person, a marketing person, whatever it may be,” and I was just like, “Well, I just talked to the best person in that category a few weeks ago. I would love to make an introduction.” So I made introductions to people and then I became known as kind of like the guy who knew everyone and connected people whenever they needed a challenge. I started to see a lot of dividends pay out the more I connected other people, because I didn’t have anything to offer at that time still. I didn’t have a skill and still didn’t have a job. I didn’t have a business, but I had a large network and database and I was willing to give to other people in that way.

That’s what I started out originally doing on LinkedIn, then people started to ask me, “How did you get your profile look so good? How can I make mine look this good?” I started just helping my friends optimize their LinkedIn profile to help them get a job, get more clients, or get more traffic for leads and sales, and through doing that, they were seeing tremendous results and making a lot of money.

I started charging people for LinkedIn profile optimization. I was making about $50 then $100, then up to $300 and I realized that it wasn’t fulfilling for me to do that anymore. I wanted to get my message out there for broader audience and that’s when I wrote the book on LinkedIn.

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I was in a full arm cast for the next six months and slept on my sister’s couch for about a year trying to figure out how to make a living and what I was going to do next. I didn’t have a college degree at that time so I was trying to figure out if I should even get a job.
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What was the book on LinkedIn?

I’ve got a couple of books. I’ve got a webinar marketing book, but the LinkedIn book is called Linked Working and it’s teaches people how to generate success on LinkedIn. It’s all about real world networking principles and applying it to the online networking world of LinkedIn.

 
How did you personally leverage LinkedIn for yourself?

I started leveraging LinkedIn groups early on for myself to drive traffic back to the site that I created, which is a sports business website and I started to see that I was easily able to get a lot of traffic back to my site by creating my own group, cultivating a network in a tribe of people in a similar industry, and then I just started teaching other people how to do the same so they can get traffic leads and sales through LinkedIn. I became one of the top people teaching LinkedIn for businesses.

 
Weren’t there other marketing experts fighting for that title too?

There were a couple of people who were doing it but had a very corporate feeling, it wasn’t entrepreneurial at all. I was guest posting on the right blogs, I was getting featured in the right places so I was becoming more known than the other people who started out before me. I was showing tremendous results for the clients that I was teaching and helping out. I think that’s what helped me separate myself from the other LinkedIn educators out there and also what separated me today.

 
After all these little successes, what did you do to take it to the next level?

The next thing was really trying to figure out how to make money because I was making a little bit of cash. I was hosting LinkedIn networking events around the country. I did about 20 events in 2009 where I was just bringing people together and helping them connect offline in the real world as opposed to just connecting on LinkedIn. I was making $2,000 in cash a month doing that but it was very time consuming. It took a lot of my energy and it wasn’t helping me really grow and it wasn’t exciting anymore.

I tried to figure out how I could monetize my information. I had already created a book but wasn’t really making a lot of sales off a $20 product. I tried to figure out how I could take this to the next level but also not work as hard, so there is passive income coming and there’s someone buying something every day. I did my first webinar and that’s what really helped me create this idea of what I wanted to do for the last few years. I did my first webinar and made $6,300 in an hour teaching LinkedIn. I thought to myself, “I could do this every day for as long as it takes.”

Lewis Howes

How many people were on that webinar?

It was a free webinar but sold live training, teaching people the beginner, the intermediate, and advanced LinkedIn strategies via webinar later. On that first webinar, about 600 people attended but I think I did a miserable job.

I had no clue what I was doing and didn’t have a great product. I had to figure it out still. I was like, “Okay, do I record this? How do I resell this?” It was a process of figuring all that out as well. I was teaching LinkedIn even though my slides were horrible. I had no practice and I probably lost a lot of money from that but I also saw the potential through the results I did get and it really helped me light a fire under my butt to go in and become better at webinars.

 
Why do you think webinars work so well?

What works the most is webinars. It’s building an email list and giving free content that helps people get the result on that webinar. Then through that, giving them an advanced training of products, services, or software that helps them further achieve the goal that they are trying to achieve based on that webinar topic.

For the last three years, I’ve probably done over 700 live webinars and more automated webinars but they were all free webinars where I would then sell a product that I had already created. After the webinar, people would buy the product then I wouldn’t have to deliver anything. It’s just a matter of building a connection with my audience, giving them new content and then selling them something if they wanted advanced training.

For someone that’s never studied to be a marketer, why do you think you’ve done so well?

I pretty much just studied a lot, learned through trial and error of how to promote things, saw what was working, where was it working, etc. I followed a lot of great marketers online and just emulated what was working for them, using my personal twist. I think over time, if you do it for enough, over three or four years, you start to learn what works, what doesn’t work, and that’s what I’ve been doing.

 
You were known first for your book Linked Working but expanded that into a training course called Linked Influence. What is that?

Linked Influence is basically a complete training on how to grow your business or achieve any professional goal using LinkedIn. I talk about leads, traffic, and sales. I talk about how to get a job, talk about promoting events, how to automate traffic, all the different things you need to know about building your business on LinkedIn.

It’s all video training, transcripts, work sheets, and MP3s of the audios. It’s a membership site where you could log in and get access to all the different content. We break it down step by step behind the scenes, making it very easy for people to go to any topic they want to learn about.

It has been around for a couple of years. I’ll probably do another update this year because of some design elements that are different in LinkedIn and we have changed a few features so we would probably do a retraining on that and then launch it again.

obama letter
on stage
 

with dwayne wade
at fox business

Let’s say I want to improve my LinkedIn profile. What do you suggest as critical changes?

The first thing is that you want to optimize your profile first because if your profile sucks, it doesn’t matter what you do. If people go to your profile and it looks like a crap or looks amateur, they are not going to take action on what you want them to do. They are not going to opt in, they are not going to go to your site, and they are not going to respond to your email. You got to give them the perception at least that you’re a qualified person that you have done something, that you’re interesting, that you’re creative, or that you get results which you can add. There are ways to optimize your profile. There are ways to increase your SEO in your profile so people can find you based on keywords. There are all sorts of means you can do but just go ahead and optimize your profile first.

The second thing that you should do if you’re looking to get more leads, traffic, and sales or really grow your business is to create your own targeted group on LinkedIn. Now, this group should be based around the audience that you’re trying to market to in general so if your audience is real estate agents, then you’d want to build a real estate agent group. Now if it’s local social media marketing, then you’d want to build local social media marketing group. If it’s sports professionals, you want to build that.

I’ve created a number of different groups and these groups allow you to send an email out once a week to all the members of the group. Now, one of my groups, Sports Industry Network, has over 120,000 members. It’s a free database that I don’t spend any money that I can send an email out with different links to webinars, videos, my website and sales page, whatever I want to send them to, to help me drive traffic, get more leads, and get more sales. So optimize your profile first then go right into creating a specific group that you want to target for your audience that you want to market to.

 
How did you grow the Sports Industry Network group to over 120,000 members?

Originally, I was just connecting with sports professionals one by one on LinkedIn, reaching out to them. After I connected to them, I would say, “Hey go ahead and make sure you join my group. I’ve got an awesome group of other professionals like yourself that I love to promote you to.” I just started promoting it that way, tweeted that every now and then, posted it on Facebook and after I got to about 1,000 members, it just started to grow on its own. It grows like 4,000 people a month right now just organically because people are searching sports, for groups, and then it grows from there.

Has LinkedIn ever reach out to you?

Yeah, I’ve got a couple of phone calls from them and talked to a few of them before. They are actually doing a feature on me on their LinkedIn blog about my success story. They don’t really want to help anyone outside of the company, even if you’re an evangelist, they are not backing you and supporting you, but they are not against you either, at least in my experience. They are kind of neutral. I think it’s just the way they run their business and it’s completely fine.

 
You mentioned ‘we’ a few times, who is on your team?

Everything could always be better and one of the things is that I’ve got a good business partner and a good tech team who manage all the affiliate stuff, all the launches, and all webinar set ups. I think the key is finding a system or a team that can do everything that you’re not good at so all you need to focus on is doing the things that you are good at and then you can perform at the highest level with those things. But if I have to do all the technical stuff which I have no clue how to do, then I won’t really be able to perform at my highest level if I’m working on that. I think it’s just a matter of finding the right team, finding a good partner, and having people do the stuff that you’re not good at.

 
You’re also often featured on major publications like Forbes, Entrepreneur.com, and other sites. How did you manage to do that?

I think its adding value and building relationships, and hustle. I like to hustle a lot so I’m constantly going to events and constantly calling people, emailing people, trying to just get introduced to other people who are writers, who own these different sites. I’m giving them tips, giving them story ideas, and through that, I’m just able to guest post on a lot of these different media outlets or get featured based on my content. Half of it is just by staying relevant, staying consistent, and putting out great content online so people can find you.

My first big media magazine was a two-page spread in the middle of Details Magazine with Gary Vaynerchuk and Seth Godin. I got that because the writer for the article saw on Twitter an article of mine that someone retweeted. He went back to my website and contacted me and said I’d be great for the article. Again, that was just by being active online, by having the right people tweeting you, and putting great content out for people to share your stuff.

I think the big first place I’ve been on, it’s probably Forbes but I’ve done some other popular blogs before that, but that was a big media site that I started writing for. Through conferences, I met one of the editors and built a relationship and asked if I could write. It’s all about seeing them face to face.

with the girls playing handball signing autographs
You also have other products on how to leverage Facebook and Youtube. Tell us about that.

We publish experts who know the platforms who are the top in the field, Amy Porterfield for Facebook Influence and James Wedmore for Video Traffic Academy. I know a lot about those platforms but I’m not the best so we want to give our audience the best. They’ve got their own products but they didn’t have a big audience so we help sell it for them to a bigger audience. We have lots of affiliates so we can have them promoted as well and they wanted to be more well-known so we were able to do that through our channels.

Our three core products which are basically LinkedIn, Facebook, and YouTube where we show people how to get more leads, traffics, and sales for those three major sites. We’ve also got a webinar marketing course which teaches people, if you’ve got expertise or a passion, or something that you want to share with people, how to get your message across through webinars and then monetize those webinars. We’ve also got a membership site which is weekly content for small business owners and entrepreneurs called the Social Marketing Tribe which basically gives lessons, webinars, videos, content, to help them get more leads, traffics, and sales and there’s a membership form where they can communicate with us and ask us any questions. We have done bigger events in the past. We have coaching. We’ve got a lot of different things we’re doing.

 
How much of an impact of your success do you think your injury had on you?

It was a huge blessing because it gave me a different channel to really share my message more and I think what keeps me motivated is the value to help people out and really see their dreams come true. As cheesy as that sounds, I get emails every day from people who are just like, “I use your strategy. I applied this method, or I took action on what you told me to do and I made this much more money.” I feel a sense of freedom that I was finally able to figure out how to monetize my passion or my inspiration and I can step away from the stuff that I don’t like. I can have more freedom and flexibility and l can enjoy the lifestyle that I’ve always wanted to live.”

I think when I get those messages from people, that’s one of the things that really inspired me to continue creating information that helps people live that way and also, being able to create the lifestyle for myself. I’ve always been the type of guy that wants to do exactly what I want, when I want to do it and not having to rely on anyone else to live a certain way. Making sure that I can live a lifestyle I want to live inspires me to continue and also helping as many people as well live their lives that they want.

with tim sykes & neil patel
with tim ferriss
 

john chow lewis howes
speech

Do you have any cool client success stories you can share?

I did a three-day workshop and taught them how to grow their online business. There was a woman that had a service. She did a weekend training teaching people, experts, and business owners, how to write a bestselling book in Amazon in a weekend. She would do this weekend retreat and would charge $1,500 but it took a lot of her time and energy because there would be 15-20 people there. She’d have to rent out the space. She’d have to travel, tons of pre-work and things like that.

She wanted to figure out how to create a product from it but didn’t know how to create it. She spent two years trying to brainstorm, “What can I do? How can I teach this? What should I do with the technical aspect?” I said, “Listen, in the next 24 hours, I want you to create a webinar and I want you to not have a product. I want you to see the idea of a product that you want to have that you’re going to give them. You’re going to deliver the product live just like you would over a weekend retreat. You’re going to deliver it live but virtually on webinars.” So you will do a bestseller on a weekend for $300 as opposed to $1,500 from the comfort of your home and from your audiences’ home. You’re going to sell it to the masses as opposed to having to do a lot of one-on-one work.”

In less than 24 hours, she had promoted this to her audience. Her webinar wasn’t that great. She didn’t have a product. She was nervous. Her sales page was horrible. It was like a PayPal link and a video. Within that hour webinar, she made $22,000 and she didn’t even have a product. I think that was a fun success story recently that someone was feeling like they were holding back from their challenges and their fears. They didn’t know what to do and when they just took action and sold something before they had it; they were able to see the result.

 
Let’s talk about your failures. What hasn’t worked for you?

We tried to launch a couple of websites that really we thought were going to be big hits. We tried to launch this quote website that was like thousands of different inspirational and motivational quotes from authors, experts, and leaders because everyone likes to share quotes online. They start to share quotes on Twitter, on Facebook and so we thought, “Let’s build like the ultimate quote sharing site that can help us drive a lot of traffic back and build leads that way.” We spent like 3-6 months trying to develop it and it didn’t go anywhere.

We test things all the time. We’re investing all the time and stuff. We’re trying new marketing strategies, ad campaigns, and some stuff just doesn’t work.

I think it’s just more learning – learning how to be more effective in business and I think you need to do certain things in order to learn how to make things better – so I won’t say they are necessarily mistakes but just learning how to manage people, how to build better relationships, how to deal with crisis and just how to learn how to react better with things. Nothing too major but just all the stuff you need to do.

Is there anyone you look up to as a mentor?

I wouldn’t be who I am today without the help of so many people – coaches, teachers, mentors, and they were just there when I was just learning about business so they really helped shape my mind in the business world.

I had three different mentors over the years. They are probably my closest mentors. I would say I was learning from a lot of people but I had three people that I was pretty much going to every couple of weeks as just mentors. One was a great networking expert and a great writer/author. I was learning how to cultivate those skills with him and he was an amazing mentor. I have a great friend who is a famous inventor and product developer, branding guy, just a really creative mind. I learned about product development and cultivating ideas from him.

I have another great mentor who is the one who suggested getting on LinkedIn. He is just a great business guy in general, very inspirational and just a smart human being.

 
You are the epitome of the ‘lifestyle entrepreneur’, what do you want to do next since a lot of your business is on autopilot?

I would like to share my message and inspire people in a broader audience. The goal would be to develop some type of online show or host one of my own shows on a major network on TV so that I can just get in front of more people and kind of share my message about lifestyle, about business, about marketing, about health and all the things that I like to talk about.

I also interview people on my website in podcast format. The purpose is to one, connect with people on a deeper level that I admire, who I like, who are successful, and learn from them personally. The second goal is to add value to them by sharing these interviews with my audience and the third one is to give value to my audience. Give them some access and inside information that they can’t get anywhere else.

I also love handball and play for US National Team. It’s called Team Handle and that’s my main passions now. After football, I realized that I still want to be a competitive athlete. I haven’t made the Olympics yet so it’s one of my lifelong goals so I took on the sport team handball, learned it, and a year and a half, made the US National Team and now the goal is to go to Rio in 2016.

Lastly, what’s one tip you would like aspiring entrepreneurs to know?

I think the tip would be to find the exact person that you want to emulate or be like in business or in life. Find out the direction you want to be like, find out who that person is and then figure out a way to work with them so you can learn exactly how they did it and then follow your own path in getting there. The biggest thing is just to make sure you follow exactly what you like doing in life otherwise, you’re not going to be as completely fulfilled if you’re not following your passion.

 
We want to thank Lewis Howes for sharing his success story. You can find him at the following places:

Lewis Howes – The official website and blog of Lewis Howes

Lewis Howes – Lewis’ official LinkedIn.

Lewis Howes – Lewis’ official Facebook.

LinkedInfluence – Learn to get more sales, traffic, and leads via LinkedIn

School of Greatness – Lewis’s podcasts with entrepreneurs, athletes, more…

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