Over the past 3 years, I’ve gone to quite a few seminars and marketing conferences. I always learn a lot of new techniques, pick up 1 or 2 new key relationships, and come home energized and ready to grow my business. However, this increased drive and energy typically fades after a couple weeks and I return to my “normal” working habits. Granted, my new normal is at a higher level than it was before, but the energy boost and increased drive is what fades away.

This time around was different. I didn’t come away from the Blacksmith camp with a checklist of marketing techniques I wanted to implement. Instead, I came away with some major mindset changes that have allowed me to get out of my own way and really take my business and life to the next level.  I also came away with about 40 new key relationships and a firm support group of other entrepreneurs my age all striving to better their lives on a daily basis. I can’t hold myself accountable to my friends at home. They are in a totally different place in life and have completely different goals than I do.

With the Blacksmith Alumni facebook group, I now have a group of people that I can hold myself accountable to that will help me raise the bar for success and keep my focus on the things that are important in my life. I really want to go back to Lithuania next year. For that to happen, I need to take action and prove to you that I’m worth your investment. I’ve been incredibly busy since returning home and wanted to take this opportunity to share with you everything I have been working on.

Lifestyle Changes and Liberty

One of the first lifestyle changes I made was to commit to reading a minimum of 10 pages per day before I sit down at my computer and start working. I downloaded an app called Habits and placed it on the home screen of my phone so I can see and track my commitments every day. Some of my other habits include working out every morning, getting out of bed by 6am at the latest, and doing daily meditation. The app is great because I see a big red circle on my phone every time I don’t complete a habit I committed to. As J Massey would say, If I want to be a person of integrity, then that starts with living up to my own expectations. If I say I’m going to do something, then I’m going to do it.

When I compared myself to the other Blacksmith members, I would say I was above average in entrepreneurial education, but I had a lot to learn on the liberty side of things. Before the camp, I really didn’t know much about Simon or have a firm understanding of the current international economic situation in the world. When I returned home, I immediately became a member of sovereign man confidential and I started reading The Creature from Jekyll island.

I literally read through all 600+ pages of Jekyll Island in under 2 weeks. I couldn’t put the book down. It completely opened my eyes to everything going on in the United States and the federal reserve and changed my outlook on the world. Between reading Jekyll Island and SMC, I’m continuing to read and expand my knowledge about what’s going on in the world.

Out of all of the mentors, I connected the most with J Massey and became very interested in Real Estate. I read Cash Flow Diaries and subscribed to his podcasts so I could learn more about real estate and make use of my time while driving in the car. I also took a real estate investor I know out to lunch to pick his brain about getting into wholesaling. Then I joined a bunch of local Cashflow 101 meetups and started attending local real estate events so I could build my network and learn from more people.

Overcoming Limiting Beliefs About Money

For me, playing Cashflow with J helped me overcome some self limiting beliefs I held about money. Before the camp, I had been growing my physical products business solely on profits. Whenever anyone asked, I was proud that I never took any investment to grow my business. After hanging out with J, I learned that that was the complete wrong way to look at things and that if I had my systems in place that I should be accepting to money so I could accelerate my growth.

I started sitting down for meetings with my local banks to see what type of financing they could provide for me. I also sat down with my friend Alan who is a mortgage broker. He has connections to tons of investors, so we started working on deals to see how much money I could raise. Just sitting down to have these conversations with everyone was incredibly enlightening for me and I learned a ton.

I found out that the banks wouldn’t give me a business line of credit until I could show a tax return with a minimum of 150K in revenue. My business was on pace to do over 150K in revenue this year already, but last year I only did around 60K so I would have to wait until my tax returns in January if I wanted to go that route.

The investors that Alan introduced me to all wanted equity in my company. For the amount of money I needed, I wasn’t comfortable giving away equity and the interest rates they wanted to charge on short term loans were through the roof. I considered all of my options and ended up taking a loan for $15,000 from my dad. I already owed him about $5,000 so I figured I would put the money into inventory and hopefully be able to pay him back after the holiday season. Once January came along, I could get up to a 150K line of credit from my bank and use it to pay off my debt to my dad. That way I would be solely responsible for all of the money owed.

I used the money from my dad to fund inventory purchases for my current products and also planned to launch a new product before Christmas. With my levels of sales, I should have had enough money set aside for inventory, but I mismanaged my cash on hand. I was tracking everything up to this point on excel spreadsheets and never had a true financial picture of where my company was at any given point.

Mismanaging my cash flow was a big mistake that I couldn’t let happen again. So I met with my accountant and over the next couple weeks I went through the painful process of importing 1,000s of transactions into quickbooks online. Now I have a clear financial picture of what’s going on in my business and can run financial statements and appropriately reserve money for future expenses.

After funding inventory, I wanted to use my excess cash to develop new products that I could launch before the holidays. Timing was tight because it typically takes about 70 days from the start of manufacturing for me to get my products in the warehouses and ready for sale. I ran into a bunch of snags with manufacturers and ended up abandoning the idea of having new products by the holiday season. Having new products would have generated more money, but I didn’t want to rush things and launch a product that didn’t meet my quality standards. Instead, I devoted my efforts towards something I hoped would make me even more money in the short term.

Amazing Selling Machine Launch

In October, the Amazing Selling Machine course reopened for sale to the public. This was the course I went through that helped me learn how to source and manufacture products. I partnered up with Shane and Jarod from my Amazon mastermind group to sell the course as affiliates. I’ve been around the internet marketing industry for years, but affiliate marketing was new to me so I was excited to see what we could do.

The course cost about $3,500 so with each sale we would get a $1,750 commission and split it 3 ways after expenses. None of us had an email list to market to, so we decided that we needed to create an awesome bonus package if we were going to get people to sign up under our group. We started out by researching the bonus packages of all of the top affiliates from last year’s launch and we did our best to match or provide a better bonus where we could.

We tried everything when it came to driving traffic for people to buy the course through our link. We each placed about $1,000 into an account and then used it to pay for facebook ads, twitter ads, craigslist postings throughout the country, a news paper classified ad, and even some plenty of fish (dating website) ads targeted at entrepreneurial type of people. Nothing was working and we were spending a lot of money and time to make this work. By the 2nd video of the launch, it looked like we were only going to make a few sales and barely make our money back. Let alone still having to provide all of the bonuses we offered.

Then, one night as I was working it came to me. Why were we spending so much money trying to drive cold traffic when the other bigger affiliates were just going to poach our sales anyways? What if we flipped everything upside down and only focused our advertising on people that we knew were already interested in the course. Under each sales video in the launch there was a facebook comments feed. Each video literally had 1,000s of comments from people who had watch the videos and engaged with them.

I called a meeting with Shane and Jarod and told them we needed to stop all of our advertising immediately and only focus on the people who engaged via the fb comments. I did a little bit of research and about 5 hours of work later I built a scraper that dropped the profile urls of every commenter into a spreadsheet. We now had a list of about 2,000 unique people we could market to.

If you send a private message to someone on facebook you aren’t friends with, it goes to their “other inbox” and they never see it. However, if you pay about $1, facebook will drop the message in their regular inbox and they are pretty much guaranteed to see it. We now had a $1 cost per acquisition for targeted traffic.

Jarod had a background in creating bots with a software program called uBot. The next day, he created a program that automated the entire process of private messaging everyone on our list and accepting the $1 charge. We split the list into 3 and we each ran the program on the background of our computers and messaged every single person. This automation program saved us probably about 20+ hours of work!

Instead of telling them to go to our website and “check out our bonuses” we decided to send them a message telling them we created a skype channel where they could ask us questions about the course that weren’t answered in the videos. Everyone had questions and our message wasn’t trying to sell them, so we had excellent response rates. Now once we had them on skype we would friend request them and engage in conversations. On the final days before the cart closed, we were able to follow up with phone calls to every non buyer and convert them over to our group.

We went from a potential total failure to ranking #14 on the top affiliates board and selling over $125,000 worth of the course in 7 days! After expenses, we all cleared about $20,000 in profit and will be paid after the 30 day refund period expires at the end of November.

For me, this is a completely life changing amount of money. I’m 25 and still living at home, so all I wanted to do with the money was just pay myself and finally move out again. But that would literally be the worst way to spend the money. Not only would the government take a huge portion in taxes, but I would be ruining my opportunity to put that money towards other cash producing assets such as new inventory and new products.

New Business Opportunities

I’ve discussed it with my dad and when I get paid, I am going to pay myself about $3,000 to keep myself going and make a payment of approx $5,000 towards my loan from him. The rest of the money will be spent towards new products (possibly launching a new brand) and towards a new business I am forming with Shane and Jarod.

There are approximately 5,000 students who are in or have gone through the Amazing Selling Machine course. All of these people and other Amazon sellers need marketing tools to help them promote their products. Our goal is to reverse engineer all of the software out there and start making our own versions and selling monthly memberships to people. We each left money in the shared account and already have a full time programmer working on our new software suite.

Once it is finished we will be giving all of our members who joined under our affiliate group lifetime access. We will then use their word of mouth and also tap into the ASM facebook group and other Amazon groups to get an initial base of users. We will not only be making money off of our new software suite, but we will also build a giant list that we can market to for the next ASM launch!

Becoming an Amazon Coach

Right around the time we were wrapping up the affiliate launch, my mentor Justin Lee gave me a call. I worked for Justin as an unpaid intern for a full year while in college so I could get firsthand experience from an entrepreneur. Justin has played a major role in my success and helping me become the entrepreneur that I am today. After spending some time catching up, Justin told me that he ran into an old real estate buddy who started an Amazon wholesaling business about 5 years ago. They were growing faster than they could keep up with and were looking for some coaches to help them out with their growing student base and he wanted to know if I was interested.

I spoke with his friend Chris Bowser and he ended up flying me up to Boston last week to meet his team. Chris essentially owns 3 businesses in one. They run facebook and radio advertisements in cities throughout North America and drive people to free events where they learn about wholesaling on Amazon. From the events, they sell people on a coaching program and 3 day boot camp to get them up and running. Once the people are trained, they can purchase products directly from Chris’s wholesaling business which uses bulk buying to pass deals on to their students. It’s a very cool business model and I’m excited to learn the wholesaling side after being on the private label side of selling for the past year and a half.

Starting this week, I’m taking on 5 new coaching students and I’m expected to increase that number over the next couple months. They are also going to be flying me out to some of their events. With everything I have going on right now, it’s probably not worth my time to be doing the coaching for the amount of money they are paying me, but I’m very interested to learn this new business model and I think the relationships I build with Chris and his team will be very beneficial for me in the future.

Marketing and Outsourcing

At the same time as all of this is going on, I still have my Marketing agency providing SEO, PPC, and reputation management services. I decided that I would just keep my current clients and stopping trying to get new ones because I would rather focus my time on all of these other amazing opportunities. However, I keep getting phone calls and new referrals coming in from all over the place. This past week I on-boarded 2 new clients and have 1 more on the way. It’s funny how you can go through droughts in business and then all of the sudden everything tends to hit all at once.

Right now I’m working 7 days a week just trying to stay on top of everything, but I’m absolutely loving it. I’m learning a ton and I’m challenging myself every day to work smarter and more efficiently. I’m also building a bigger and better team around myself to handle all of this new business.

Starting Monday morning, my first full time outsourcer will be coming on board. In the past I’ve always done hourly or fixed projects with my outsourcers. Now I’m at the point though where I have the cash flow and work to support someone full time. I’ve created a full online training resource center for Karen with written and video instructions for everything she is going to be doing. In the beginning, I will have her doing blogging, video marketing, press releases, and social media management for Cave Tools. Once she gets comfortable with that, I will start training her on how to take over some client work for my marketing company.

Last Thursday I held my first training webinar for the Blacksmith alumni and went into detail about my entire outsourcing system and management practices. It felt awesome to be able to give back to the group and share my knowledge with them.