Build a fulfilling future helping others: A Caring Transitions Franchise

Notes Section

In this interview, we talk with Caring Transitions about how you can invest in a business that makes a huge impact in people’s lives.

Many of us, myself includes, struggle in helping our loved elders transition from their home to a facility that can better assist them.

We analyze a day an in the life of a Caring Transitions Franchise owner and what type of income you could expect to generate if you decide to invest

Caring Transitions Website
http://bit.ly/caringtransitionsboomers

 

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth hey and welcome
0:07
to this episode of boomer income ideas
0:09
calm you know if you’re the type of
0:10
person who actually enjoy working with
0:12
seniors and their families on their
0:14
final transitions this might be the
0:16
right business for you we’re going to be
0:17
talking with Chris seaman the president
0:19
of caring transitions and I think you’re
0:22
going to enjoy this so stay tuned
0:23
relocating and downsizing a home or
0:26
business can be stressful for you your
0:28
family and loved ones whether you are
0:31
moving to a smaller home as an empty
0:33
nester an older adult in need of
0:35
assistance or due to divorce the process
0:38
is often overwhelming caring transitions
0:41
is a comprehensive service providing
0:44
professional assistance before during
0:46
and after the move stop downsizing and
0:50
start right-sizing with caring
0:52
transitions today hey Chris thanks for
0:55
joining me today hey thanks for inviting
0:56
me dan you know it was interesting when
0:59
I when I came across this opportunity
1:01
because as someone who has had personal
1:04
experience with a parent that moved from
1:07
her home to a care facility and having
1:10
to deal with that entire drama really
1:13
this franchise just seemed to make a lot
1:16
of sense so can you tell me a little bit
1:18
about carrying transitions what you guys
1:20
do and how you guys got started yeah
1:22
sure well you know kind of go back to
1:24
how we started where this is our 10th
1:26
anniversary so we’re pretty excited that
1:28
we’ve been going for now 10 years in the
1:29
senior moving in a liquidation service
1:33
industry but how we kind of got started
1:35
is we’re part of a franchise
1:36
organization called strategic
1:38
franchising and our first franchise that
1:41
we really launched was this was a
1:42
company called home helpers which was an
1:44
in-home companion care franchise good
1:46
and what we found out is when you get in
1:49
that relationship where someone needs
1:50
that kind of care in the home you know
1:53
the outcome is eventually someone’s
1:54
going to need to move into more you know
1:57
professional care into like a you know a
2:00
continued care environment a retirement
2:01
community and you know that you’re going
2:03
to have to move out at home at some
2:04
point and what we would see when our
2:06
relationship would end at that point
2:08
that you saw that the family was
2:10
hyper-focused and all the stuff in the
2:12
house and not
2:13
mom who just had to move out of her home
2:15
of 40 years and is now living in a care
2:16
facility and it’s very stressful to the
2:19
family and we saw a great opportunity we
2:22
could help families in its later life
2:23
transition make things better for the
2:25
senior and we did so by offering
2:26
relocation services right-sizing
2:29
services and then really liquidation
2:32
services whether a physical estate sale
2:33
are on we have an online auction website
2:36
when that makes more sense for our
2:37
clients I got to tell you again with my
2:40
personal experience I was fortunate in
2:42
that I have two sisters that lived in
2:44
the same town as my mother and if that
2:47
had not been the case we would have
2:49
absolutely needed this type of service
2:51
because it took them six months to go
2:54
through my mother’s home and you know
2:56
straighten everything out and figure out
2:59
how we’re going to get her into another
3:01
facility and then make sure that she has
3:03
enough things of her past in that new
3:06
new facility so she’s she’s happy and if
3:09
again if they hadn’t been in that same
3:12
area I can’t imagine that happening so I
3:16
can definitely understand that let’s
3:18
talk a little bit about the actual
3:20
method in which your franchisees go
3:24
about this are they primarily introduced
3:26
to these new clients from the in-home
3:31
care or do they also have other
3:33
activities that put them in touch with
3:34
people who need this kind of service
3:36
well in Prior three major way that we
3:38
get clients is we go out and meet with
3:40
all the senior communities in the area
3:42
and then we just strike up a
3:44
relationship with them because a lot of
3:45
times when people make this move they’re
3:48
ready to they have to because they’re
3:50
physically in the position where it’s
3:52
necessary for them to move out of the
3:53
family home and so we get those
3:55
referrals back so our owners will go out
3:57
and talk to the senior communities and
3:59
then real estate offices the realtor’s
4:01
and then we do have a web presence
4:03
obviously for people who are on a state
4:05
can help search to help their parents
4:07
out what they need to go through this
4:08
transition okay that sounds a pretty
4:11
efficient let’s talk a little bit about
4:12
again from my personal experience I know
4:15
that in going through this is drama that
4:17
I was talking about my sisters and I
4:20
never fought in our entire lives until
4:24
this took place I mean this is
4:26
such a life-altering situation I’m just
4:30
talking about who’s going to be
4:32
responsible for what and who gets their
4:34
feelings hurt because they think that
4:36
they’re being taken advantage of because
4:37
the other sibling isn’t stepping up like
4:39
they think they should and that kind of
4:41
thing can you talk a little bit about
4:42
how your franchisees kind of mitigate
4:45
that family drama yeah definitely dan we
4:48
put everybody through training on how to
4:50
work through that scenario and one of
4:52
the advantages that we have is because
4:54
of what we do is we’re a third party
4:56
frankly and what we do is we focus on
4:58
what is the best solution for the moving
5:01
parent and how can we really mitigate
5:06
all those issues by just removing them
5:08
from the table frankly and you know
5:10
whether it comes to the possessions we
5:11
we really don’t care what they keep and
5:13
what they what they decide to donate or
5:16
sell or whatever else they do with the
5:18
items and so since we don’t have a
5:20
really anything in that particular fight
5:22
it diffuses all of that you know and
5:24
that’s the things that caring
5:25
transitions can work out with you
5:26
because the things are going to take the
5:28
family like you said took your sister
5:29
six months it takes us two to three
5:32
weeks to do that complete project from
5:34
front to back can you give me just kind
5:37
of a day in the life of a franchisee you
5:40
know how do they go about spending their
5:41
day well you’re going to start you know
5:43
primarily mapping out where their
5:45
projects are for the morning they’re
5:47
going to meet their teams at the clients
5:49
residence get that started off get them
5:52
lined up with what projects they’re
5:53
going to work on for that day their
5:56
staff all shows up at not the Home
5:59
Office but they show up actually the
6:00
client’s home so your first meeting in
6:02
the morning to the clients home you’re
6:04
then going to go out and meet with local
6:06
people in the community your networking
6:08
groups and then well is going to visit
6:10
some of the assisted living communities
6:11
in those type of areas in your area and
6:13
then in the afternoon they will go visit
6:16
potential clients and give what we call
6:19
our free in-home consultation where we
6:21
walk through the home they have software
6:23
that they then can plug all the numbers
6:25
in to get an effective proposal back to
6:28
the client based on what their clients
6:30
objective is and then we end back up at
6:32
the job site to supervise and wrap up
6:35
everything that needs to happen so
6:38
whether it’s a move or
6:39
liquidation that all the goals and you
6:43
control your expenses and get your labor
6:45
done and get the clients satisfied to
6:47
their next stage of their life okay
6:48
that’s real real quick snapshot it I got
6:51
and you you mentioned teams this is a
6:54
home-based franchise is that right most
6:56
of the crazies work work their business
6:59
from their home so tell me about the
7:01
team Brittany’s are these direct
7:02
employees or are these 1099 people that
7:05
are contractors how do you have a team
7:09
one team member for each client or do
7:12
you have a team member dealing with a
7:14
number of clients how does that work
7:16
well we work all of our employees have
7:18
to be direct hires because of the
7:21
insurance needs and also the fact we’re
7:23
protecting a senior and the seniors
7:25
possessions so everyone has to be bonded
7:27
and insured and they all have to work
7:28
directly for the caring transitions
7:29
franchise owner the majority of our
7:32
employees are part-time on demand
7:34
they’re there people who are just
7:35
looking to do something and give back a
7:37
little bit and have some fun and be out
7:38
in the community and what we do is we
7:41
organize our teams by services not
7:43
necessarily by clients so we have
7:45
usually a liquidation team and what we
7:48
would have a relocation move team that
7:50
would do this decluttering sorting and
7:52
organizing okay so yeah I know you’ve
7:55
got these bullet points of senior moving
7:57
moving in transition to downsize and
8:00
clean out services household
8:01
liquidations estate sale and management
8:04
and auction services so I know that’s a
8:06
lot of the mouth full of things to go
8:09
through all of these things I imagine
8:11
are all apart is that correct yeah what
8:14
we do is we walk into the client we’re
8:16
really talking to them about what do
8:17
they need they might have called us for
8:19
an estate sale they might have called us
8:21
for a move but it’s really not so we
8:23
determine what it is that they actually
8:25
need and then we just provide whatever
8:27
service that it’s we customize the
8:29
services to exact needs when you’re
8:32
dealing with these so temporary workers
8:34
and they’re actually on your payroll I
8:36
would imagine that you need to have a
8:37
pretty large supply of them because
8:39
since this isn’t their full-time job you
8:42
might have to go through two or three
8:44
people in order to get someone actually
8:46
placed on that particular site is that
8:48
correct usually we have we have pretty
8:51
good sized teams you know an average
8:52
work
8:53
is going to be free to poor people we
8:55
might have 20 24 people in our database
8:57
that we contact and we have a vendor
9:00
software that you can just send up
9:02
notifications it will happen on their
9:03
phone so you get almost immediate
9:05
response they’re available so how do you
9:06
go about or how does the franchiser you
9:08
go about getting this team in place
9:10
that’s actually one of our easier things
9:13
because the types of services we do we
9:14
do get a lot of people who respond to
9:16
this because you know yet stay-at-home
9:18
moms retirees all sorts of different
9:20
people who want to work in this type of
9:21
segment getting people’s actually what’s
9:24
surprising to me was actually real to
9:25
leaving really huh that I always find it
9:29
difficult to find people so that maybe
9:32
they just don’t work with me I don’t
9:33
know that could have something to do a
9:35
much easier time yeah let’s talk a
9:39
little bit about the actual business
9:41
itself what is it what is it cost for a
9:44
franchisee to actually get in business I
9:47
mean from from the time that they say
9:49
yeah I’m ready to pull the trigger on
9:50
this I’d like to go forward with this
9:52
for the time that they’re actually
9:54
operating and starting to generate cash
9:56
flow what can they expect as a
9:58
capitalization cost for start-up for a
10:01
franchisee prospect who comes into the
10:04
pipeline it usually takes about 45 days
10:07
for them to go through our process if we
10:10
call it a mutual evaluation process so
10:11
they can see if this is a really good
10:13
fit for them and we can see if it’s a
10:14
good fit for us and the 45 days we then
10:17
have a 21-day pre training program which
10:20
is just continual education so that when
10:23
they come to the training week which is
10:24
a week long and then we actually then
10:26
send them out into the field to train
10:28
with a per week with an existing
10:30
franchise owner so what you’re looking
10:32
at that is after you place you know you
10:34
decide to make the decision to go
10:36
forward it’s about five weeks until
10:38
you’re actually open in the field all
10:41
right most of these i’m i’m assuming are
10:43
pretty much operated by a
10:45
husband-and-wife team is that correct
10:47
well we have a lot of singles but we
10:49
also have a lot of husband and wives
10:50
it’s a you know you tend to when you
10:52
have the husband and wife it’s kind of
10:54
nice because they tend to complement
10:55
each other when you win it by yourself
10:58
usually you need to hire a little bit
10:59
more so you have people complimenting
11:01
you know whatever skill set that you
11:03
maybe don’t want to focus on
11:05
we launched much more quickly even than
11:12
we had originally anticipated and I
11:13
think a lot of that was just because of
11:15
the quality of corporate support and the
11:18
corporate systems and the on-site
11:20
training programs that that were offered
11:24
and yes so far it’s just been a
11:28
whirlwind of fun the field training that
11:31
we attended with just awesome I mean
11:33
literally you know it’s kind of like on
11:36
the job training and really gave us a
11:38
great perspective in terms of what we’re
11:41
seeing we’re going to see as we get into
11:43
it now or so and and really allow us to
11:46
feel like we’ve got the confidence that
11:48
we can go out have a good time with it
11:50
and still be very successful and is this
11:55
a 825 type of business opportunity or is
11:59
this a seven day a week you know 24 hour
12:02
a day opportunity how does this out of
12:04
this business actually run well you look
12:07
at most of what we’re doing we do our
12:08
moves monday through friday online
12:10
auctions can be whenever you want them
12:12
because that’s the beauty of the online
12:14
physical estate sales tend to be on
12:16
Saturdays because that’s when the
12:17
majority of the audience is out there
12:19
shopping so what you look at is it can
12:22
be potentially six days a week if you
12:25
really want to you know do all but
12:27
that’s what we try to educate them as
12:29
you know hiring staff to give yourself
12:30
the flexibility so you’re not working
12:32
every single day of the week but you
12:34
know as you build up you might be
12:35
working a little bit more like you doing
12:36
a lot of new businesses and it just
12:40
really depends on you and what you have
12:41
on the schedule the more you put into it
12:43
we initially obviously the quicker
12:44
you’re going to get to your success
12:45
goals history and beauty of unique
12:52
antique or vintage finds cannot be
12:55
underestimated but traveling from a
12:57
state sale to a state sale in order to
12:59
find a diamond in the rough can be
13:01
exhausting CT online auctions com puts
13:04
rare and unique estate sale finds along
13:07
with everyday household goods at your
13:09
fingertips in the comfort of your own
13:11
home and on the go with your mobile
13:13
phone easily browse or search items from
13:15
across the country or in your local area
13:18
numerous photos review product
13:20
description and easily place bids place
13:23
your maximum bid sit back and relax
13:25
while our site places bids for you in
13:28
increments over competing bids receive
13:31
bid and outfit notifications via email
13:33
and easily keep track of items in your
13:35
very own watching fitting one and not
13:38
one page so who is an ideal candidate
13:42
what kind of personality profile and
13:44
who’s not really a good candidate for
13:46
this kind of business well you know you
13:49
look at that and I mean the best
13:50
candidates are someone who obviously
13:51
enjoy interacting with seniors because
13:53
that is you know probably eighty percent
13:55
of our businesses of a senior focus so
13:58
it you know we do have a technology side
14:00
to our business you know with the online
14:01
auctions you know are estimating
14:03
software all these other pieces that go
14:05
into the business but if your
14:07
hundred-percent technology driven and
14:09
you’re not good with people or you don’t
14:11
it really more accurately you don’t
14:13
enjoy people you know it’s going to be a
14:15
difficult business for you frankly I
14:16
guess that really my biggest question is
14:19
just verifying that this is truly a
14:22
business that someone can grow to
14:24
something more than just a kind of a
14:26
part-time supplemental income type of
14:28
situation this is really something that
14:30
you can grow into a real business that
14:33
is generating a substantial income that
14:35
someone can actually exist on correct
14:38
correct do exactly one of the things
14:41
i’ve been here since 2012 and one of the
14:44
reasons I’m here is to make sure that it
14:46
is professional business opportunity for
14:48
people and we no longer are interested
14:51
in somebody’s looking for a part-time
14:53
you know it could be supplemental income
14:54
if you want it but that doesn’t fit with
14:55
what we’re looking for is an
14:57
organization and it doesn’t fit with our
14:58
other franchisees across the country who
15:01
needs you to be fully engaged in one
15:03
hundred percent into this being a
15:04
business because one of the key things
15:06
that will do is you know someone might
15:08
be living in Florida today but they need
15:10
to go back home to you know Michigan or
15:12
wherever in order to have that carrying
15:16
transition service on both sides and
15:18
have a professional person who’s
15:19
available the to do this is critical to
15:22
a success of both our local franchise
15:24
systems and our national system as a
15:26
whole so it’s a full-time business it’s
15:28
designed to drive a full time income and
15:30
it’s
15:31
time for you to support yourself and
15:32
your family can you give me three pros
15:35
of actually operating this business and
15:37
possibly three cons of operating the
15:39
business well I think you look at you
15:42
know some of the pros to run in the
15:43
business I mean one you have a growth
15:45
market it’s pretty crazy if you look at
15:47
like the US Census Bureau says he’s
15:49
almost twenty percent of the population
15:50
will be 65 and older by the year twenty
15:52
thirty and we’re roughly about thirteen
15:54
percent right now in the last census so
15:57
the other thing is you know the
15:59
advantage we have is because we are home
16:01
based we’re not an advertising based
16:03
model where a personal relationship
16:04
networking based model we’re relatively
16:07
local capital there’s not a lot of
16:08
reoccurring expenses once you have your
16:11
insurances and since your staff is on
16:13
demand that you’re only paying labor
16:15
when you’re actually building clients so
16:17
you’re able to do this in a relatively
16:19
cost-effective manner and then for most
16:22
of our franchisees frankly you know why
16:23
they got interested in this was really
16:25
the personal rewards of this business
16:26
you know get your clients who’s
16:28
terrified of this move and you know at
16:30
the end of the move you get a huge hug
16:32
and a smile and you also got paid for
16:35
any provided employment in your
16:36
community that’s probably the biggest
16:38
Pro that our franchisees would name if
16:41
you ask them directly now on the con
16:43
side you know there’s a couple things
16:44
about our business which are great but
16:46
also if you look at it it could be a
16:48
negative to you one we offer multiple
16:51
services which is wonderful because you
16:54
were able to go into your clients and
16:55
you’re able to really structure a
16:57
tailored fit custom solution to what
16:59
they need but if your only focus on one
17:02
service line life tends to be easier you
17:05
know you know exactly what you’re going
17:07
to do how are you going to do it and
17:08
it’s a very much much much more of a
17:10
cookie cutter business and you don’t
17:12
have to be able to fluctuate and go back
17:14
and forth between the soft skills to the
17:16
technology skills so the other thing I
17:19
always like to talk about is you know
17:21
being a social brand meaning you have to
17:24
enjoy being out with people and having
17:26
conversations that if you don’t that can
17:28
be definitely a con for you and then the
17:31
third thing I like to talk about is that
17:33
as a home-based business you know you’re
17:36
going out you know you’re not going to
17:38
be able to just say hey it’s a little
17:39
slow i’m going to throw out some flyers
17:41
today and then people are going to start
17:42
calling me no one’s going to walk by
17:44
your sign
17:45
and walk in your house and want to do
17:47
business with you you to engage business
17:49
it’s not an office business and you have
17:52
to be out in the community in order to
17:54
be successful at it it’s not just your
17:56
first six months of being open it’s the
17:58
entire time you own the business jet to
18:00
continually be engaged in your community
18:02
well Chris I think this has been a great
18:04
conversation I’m really happy to see you
18:08
guys in in place out there because I
18:10
think that your service is extremely
18:12
important we’re going to be putting your
18:14
information your website and phone
18:16
number and so forth in our notes section
18:17
so our viewers can get in touch with you
18:20
directly and I think that this is what I
18:22
call a twofer because I think that there
18:24
will be people who are interested in
18:26
looking at a franchise opportunity but
18:29
there’s also going to be a lot of our
18:30
viewers who are looking at this thing
18:31
hey I I resembled that conversation I’m
18:34
in that mode right now I’ve got to deal
18:37
with my parent and I need someone to
18:39
help me do that so hopefully we’ll be
18:41
sending you some you know some prospects
18:44
in that light as well but thank you very
18:46
much for joining me today and I’ll look
18:48
forward to working with you in the
18:50
future it sounds great and thank you for
18:53
having me it was a great conversation I
18:55
join it great
18:56
[Music]
19:09
you
19:12
[Music]

 

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Transcript

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth if you’re like
0:07
me believe that with the millennial
0:09
generation finally moving out of their
0:10
current homes and forming their own
0:12
households that the home-improvement
0:14
segment is about to explode and you’d
0:18
like to take advantage of that you’re
0:19
going to want to stay tuned to show that
0:21
we’re going to talk with Tom rundberg
0:24
CEO of your grout franchise llt and
0:28
you’ve got a niche market that we’re
0:29
going to check out
0:35
[Music]
0:52
[Music]
1:05
hey top thanks for joining me today
1:15
great game great to be with you one when
1:19
i came across the sure grout and before
1:23
I really looked into your your company
1:26
I i was thinking to myself out of
1:28
someone make a business out of grout and
1:30
then I found out that you were much more
1:32
than that so we’re going to talk a lot
1:34
about that but before we do that can we
1:36
talk a little bit about your journey and
1:38
how you got to be the CEO of surgery of
1:42
franchise LLC
1:44
sure sure BNI i started out with a
1:49
consumer products background we sold
1:54
Prestone II antifreeze glad bags the
1:59
consumer products so I start off in
2:01
sales and made my way from sales into
2:05
headquarters into the marketing
2:07
department that became director of
2:09
marketing globally for our brands so I
2:14
my background is consumer products the
2:18
last large company work with was
2:21
honeywell I was vice-president all of
2:23
our international operations around the
2:24
world and then I got headhunted way to
2:28
become CEO of the company called inner
2:30
dynamics I so people were confused when
2:35
i started talking about the hard surface
2:38
industry but I was compelled to leave my
2:42
corporate career because my moral
2:45
compass began to flicker and basically
2:48
did not want to participate in that
2:50
world anymore i donít I i was
2:53
successful i did well but I was not
2:57
emotionally fulfilled and 54 I can have
3:04
a corporate career if i wanted one but I
3:05
i don’t really enjoy ya when I think
3:08
that the i think is very important to
3:10
point out because that’s exactly what my
3:12
shows all about it’s it’s the baby
3:15
boomers me you
3:16
other people just like us who had
3:18
careers and in corporate one time and
3:21
for whatever reason were no longer in
3:23
that world whether we chose to not be in
3:26
that world or it was chosen for us right
3:29
right
3:30
finding that second career finding that
3:32
new meaning in life is really what’s
3:34
important right now yeah and it sounds
3:36
to me like you really found that and
3:38
figure out we sure did
3:42
lo and behold there’s tile and grout to
3:45
everywhere both residential II and
3:48
commercially it always goes bad dirty
3:52
mop water soaks into what we described a
3:54
dry sponge people don’t attract the
3:58
dirty wastewater when they clean the
4:00
floors of course all of our showers are
4:02
glassed-in they turn the terrariums they
4:04
start to look bad so once with so i sort
4:07
of stumbled into this this industry and
4:10
recognize that the the size of it and
4:13
recognize that people were really
4:14
frustrated that they could not clean it
4:17
themselves and that’s because the ground
4:19
is stained like I tell people it’s like
4:23
a mustard stain on your shirt right you
4:24
can’t you can fade it out a little bit
4:26
but you can never remove it right all
4:28
right
4:28
and again when I when I first looked
4:30
into this I was kind of skeptical but
4:32
then when I realized that you really are
4:34
in a specific niche in the home
4:37
improvement space that she wasn’t going
4:40
to blast off
4:41
I mean I was right as the millennial
4:43
generation are starting to acquire their
4:45
homes and their always requiring older
4:48
homes that they’re going to fix up and
4:50
and people like you and me are acquiring
4:53
income properties and things along those
4:55
lines to fix up and run out
4:57
I mean that’s right i believe that this
4:58
industry is just a you know on the
5:01
launch pad to explode so let’s talk a
5:03
little bit about specifics about what
5:05
sir grout actually does what use is a
5:08
hard surface refinishing company that’s
5:12
right that’s right we we come into
5:14
primarily homes were primarily
5:17
residential I’ll we look at the kitchens
5:20
hallways bathrooms showers anywhere
5:24
where there’s tiling drought or natural
5:27
stone for that matter
5:28
and typically all those surfaces are
5:32
maintained in incorrectly but most
5:34
people use vinegar bleach and ammonia
5:36
they don’t attract the dirty wastewater
5:38
and all that soaks into all those
5:40
materials and eventually it just starts
5:43
looking sour and people are very
5:46
frustrated because no matter what they
5:47
do to it they can’t you know we claim
5:50
that they can make it look nice again so
5:53
our value proposition is quite simple we
5:55
can make it look brand new or better the
5:58
new and that’s without any construction
6:01
and that’s without any remodeling so we
6:03
have a set of techniques and processes
6:06
that can we knew your tile and grout and
6:09
stone to brand new so that’s that’s what
6:14
we do when it just it just blossomed
6:16
know all of this is being done through
6:21
your franchising network is that correct
6:23
that’s correct we have 37 locations here
6:27
in the US
6:28
excuse me 36 locations here in the US
6:30
and one in singapore armed were in 17
6:34
states we just opened up
6:36
nashville tennessee this week so tell me
6:40
a little bit about the the profile of a
6:42
typical franchisee is he is he you know
6:45
one guy pickup truck and a dog or does
6:48
he have a team of people is he mostly
6:50
going out and building on jobs and then
6:53
bringing technicians in or he actually
6:56
in there doing the work himself who he
7:00
has a team all of our owners most of our
7:03
owners are out in the field just going
7:07
on sales calls and then they had a team
7:10
of technicians and i have one band two
7:12
bands 3-band sidebands but know the
7:15
owner of the company is primarily
7:17
responsible for making the sales calls
7:19
and he has technicians in the field and
7:23
we have quite a quite a mix we have some
7:26
folks that came out of retirement that
7:30
our server franchise owners we have a
7:34
couple bit of come on college at the
7:36
first career and everything in between
7:40
on myself and a handful were were once
7:43
that came out of the corporate world and
7:44
decided to have this is the second
7:47
business because it is a home-based
7:48
business as well so it attracts you know
7:53
quite a few people that you have a
7:55
fairly new franchisee I guess his name
7:58
is chris McDermott that hasn’t been with
8:00
you that long but he the thing that I
8:02
kind of picked up on it looks like us I
8:05
mean he looks like kind of a baby boomer
8:06
that’s you know yeah that’s getting into
8:09
this as there’s a new chapter of his
8:11
life and I’m like century is new
8:14
tell us a little about what he needed to
8:16
have in place to become a franchisee
8:19
what he can expect you know where he’s
8:22
at right now and has passed how long has
8:24
he been with you
8:25
he’s been with us for a few years now
8:28
Tom he’s in south south jersey arm he’s
8:32
had a couple different careers and he
8:35
reached out to us he saw that we were
8:37
unique and novel i love the fact that it
8:40
was also home based and he loved the
8:43
fact that we would be driving leads to
8:46
him so things that were compelling to
8:50
him he heard about our training we have
8:55
very intensive training myself and my
8:58
partner remain your coach and mentor to
9:01
make sure you’re successful so he really
9:03
enjoyed the you know the support that he
9:05
was going to get it continues to get to
9:07
this day and he was just compelled he
9:13
saw in his own marketplace of the
9:16
frustration that people had over he
9:17
looked at his own home and pencil
9:19
similar to you
9:21
relatively new franchise has actually
9:31
been with us for a year and a half since
9:34
we’ll ask you a few questions like this
9:38
period of time
9:39
Shan know how we’re doing and we really
9:43
want to know your feet that training God
9:47
for that you got going to make sure
9:51
you’re getting with a well-defined off
9:54
for sure
9:56
yeah all i actually was doing due
9:59
diligence on but the former competitors
10:03
my area
10:04
Michelle learning more about the
10:07
industry and well look through all the
10:09
other folks business throughout just
10:15
above beyond from a training perspective
10:18
professionalism hire models was later
10:22
with Chris what kind of capitalization
10:27
that he really realistically need in
10:30
place to hit him from zero to a point
10:33
where he was actually making an echo
10:35
yeah arm while are all of our franchise
10:38
cost come in at less than a hundred
10:40
thousand probably 75,000 on average all
10:44
in for the franchise and include your
10:46
vehicle your equipment in all your
10:49
supplies most of our franchises are our
10:53
past breakeven you know within the first
10:56
year and that’s generally that’s not a
10:58
problem my which they are our median
11:01
revenue franchise about 350,000 these
11:06
days i’m working on item 19 or and RFD
11:08
right now our biggest location in
11:12
Chicago did a million to last year
11:14
ok so there’s quite a quite a range it’s
11:17
all up to the individual hard they want
11:19
to work or are they you know they don’t
11:22
want to work on Christmas sermon he’s a
11:24
hard driver is doing well
11:26
we’re really proud of him and he’s got a
11:29
good team got a good team underneath the
11:32
one thing that really caught my
11:33
attention as you’ve got a business
11:35
scheduling call center i right where
11:39
most companies tell their franchisees
11:41
while you’re going to buy a business and
11:44
we’re going to show you how to run it
11:45
and then you’re gonna go bring their
11:46
lead yourself you actually do
11:48
advertising drive leads to a call center
11:51
of these it’s call centers schedule the
11:54
franchise appointments for them tell me
11:56
a little bit about that
11:58
so uh one of our primary goals is what i
12:01
described his first time resolution when
12:04
a customer calls we want he or she to
12:08
get a live person and we want them to be
12:11
spoken to be built the phone picked up
12:14
before the third ring so to your point
12:16
we we actually don’t allow any of our
12:19
franchises to take their own phone calls
12:21
we have our own call center we want to
12:23
answer them live
12:25
last year we had over 30,000 phone calls
12:27
and we answered ninety-six percent of
12:29
them before the third ring so we don’t
12:31
want to miss any opportunities are
12:33
franchises are out in the field so we
12:38
collect all the warm leads for them
12:40
where we document them and we put them
12:43
on our on our software so they just log
12:46
in each morning and there’s your
12:48
schedule
12:49
yeah i think that’s that’s outstanding
12:53
there are very very few companies that
12:55
take it to that level now when these
12:58
franchises go out and make these calls
13:00
and their bidding on these jobs you can
13:03
uh what kind of close ratio can they
13:05
expect average close rate is fifty
13:08
percent uh are our highest is
13:11
seventy-three percent so so again the
13:16
issue that people have it’s everywhere
13:19
its ubiquitous and usually when we go on
13:22
a sales call Dan the customer has
13:25
already tried everything they’ve tried
13:28
all the household cleaning chemicals
13:29
they’ve already going to home depot or
13:31
lowes and tried you know other a ways to
13:34
try to clean and spruce up the ground
13:36
ball unsuccessful so our leads are true
13:40
he very motivated we just need to answer
13:43
the call life when you show up on time
13:45
we have a very prescriptive a
13:48
presentation that we give which includes
13:51
samples
13:52
uh-ho see before-and-after photos so
13:55
these are these are warm mom clients
13:59
that are are really anxious to get this
14:01
done tonight i might add we grew our
14:04
fastest through the recession we started
14:07
this business in 2007 no I at my point
14:11
is people have not pushed off wanting to
14:15
look and feel clean
14:16
yeah well I got some properties down
14:19
here in Florida that the I need you to
14:22
have a franchisee down here because he
14:24
and everything down here the tile floor
14:26
and that’s right you have an income
14:28
property and you’re showing it because
14:30
you the old tenants moved out and you’re
14:32
trying to clean it up and get ready for
14:34
for showing you want to look as new and
14:37
fresh as possible and we write when you
14:40
have that dirty grouts seems they’re
14:44
walking into the living room it just put
14:46
up bail over the entire experience where
14:49
that when you walk in and and it’s it’s
14:51
gleaming it looks like its brand-new
14:53
tile you have a huge impact yellow I can
14:58
I i mean i can see all kinds of uses
15:01
that I would use of years the other one
15:03
that really caught my attention was this
15:05
a restyle your tile thing that you can
15:08
just came out he’s got a little bit
15:10
about that
15:11
yeah um we can take a shower for example
15:16
that maybe it’s an old shower maybe 60
15:19
seventies 4 inch tile for example and we
15:23
can actually tile right over your
15:25
existing tile
15:26
yeah it’s a very thin tile it’s about
15:28
the with the two dimes and we can’t i’ll
15:31
read over your tile without any
15:33
remodeling we don’t have to knock your
15:34
existing shower down we can actually
15:36
just I’ll right over the topical I think
15:38
it’s amazing I mean any of us that have
15:40
gone through that experience whether
15:43
we’ve done it with our own houses or
15:45
we’ve done it with
15:46
the our income properties or whatever
15:48
when the idea that you can you can go in
15:51
and and put basically a a clean veneer
15:54
over the existing circles without having
15:56
to demo that is just right standing what
15:59
kind of savings can you expect with that
16:02
all armed it can be as much as half as a
16:08
remodel on but more importantly to our
16:10
customers they tell us they love the
16:12
fact that we can get it done in a day
16:14
yeah most of most of the remodels take
16:16
you know 45 days and you have all the
16:19
master and dust and inconvenience
16:21
associated with it so the reality of it
16:23
with our customers most of the time it’s
16:25
not price related its convenience
16:28
yeah I’m for style as well general guy
16:31
and chicago i think his name is dan I
16:33
can’t recalls last night
16:35
yes then lunch that ok anything to be
16:37
doing pretty well I think he has four
16:38
territories around here
16:40
he has four territories he had to and
16:43
then the beginning of last year he
16:45
decided to buy two more
16:47
no we’re quite proud and most of our
16:50
owners go on to buy a second territory
16:52
they validate the model initially and
16:56
then may sneak around geography outside
16:59
their initial territory and they go on
17:01
to buy second and this attitude to
17:03
basically take the entire city of
17:04
Chicago so what is a territory is that
17:07
is a geographically bound as it up by
17:10
population-based yes our minimum
17:12
territory is equals a hundred and
17:15
seventy-five thousand from single-family
17:18
homes so it didn’t include you know
17:21
apartment buildings but single-family
17:22
homes i would say anywhere from minimums
17:26
175 but some of our territories go up
17:28
too much as 250,000 single-family homes
17:32
ok and of course that thinking in that
17:35
continuous piece of geography is
17:37
commercial as well I wash your your
17:40
franchising videos where you have a
17:42
number of your franchisees who are doing
17:44
testimonials with you and all of them
17:47
obviously speak very highly of you and
17:49
the in the program and all that they
17:51
really like that there that their
17:54
franchise they like being in this in
17:55
this business so there
17:57
well situated
17:59
who was not a good candidate for this
18:01
kind of French rest are we always tell
18:04
people if you’re not willing to follow a
18:08
recipe if you’re not willing to follow a
18:10
set of prophecies you’re so fiercely
18:13
independent but you don’t want to follow
18:15
anything like that that’s not a good fit
18:18
one of the things I i say to people
18:20
often when you buy a franchise you’re in
18:23
business for yourself but not by
18:26
yourself right so you have to be willing
18:28
to be coached you know some people come
18:31
in and say I I’ll figure this out let’s
18:32
do this myself you know I I get it but
18:36
your word that’s what we’re here for
18:38
we’re here to make you successful
18:40
so you don’t make the same mistakes you
18:42
know that of course we did in our early
18:44
dates right so you have to be willing to
18:46
participate you know in our in our
18:48
recipe and if you follow a recipe could
18:51
take the end
18:52
well what about personality styles for
18:54
dealing with the with the customer and
18:57
you know some people are well-suited to
18:59
be that the guy who basically taking
19:03
orders over the internet that is really
19:05
interacting with people at all right and
19:07
write this seems to be very very people
19:10
based you need to be able to go into
19:12
someone told me you need to be able to
19:13
talk to them comfortably about whatever
19:16
is going on with their particular
19:17
situation you need to be able to make a
19:20
presentation to them that is comfortable
19:23
and make sense to them
19:25
yeah I you know there are a lot of
19:27
people you know they don’t like to get
19:29
up and speak in front of large audiences
19:31
there’s that fear most of the people
19:35
that we have are not intimidated having
19:37
a one-on-one conversation but yes you do
19:40
have to feel comfortable walking up and
19:42
ring the doorbell and and meeting a
19:44
complete stranger
19:46
it’s not that typical because man today
19:49
happy to see you
19:50
yeah hey where were you know sir grout
19:53
to the rescue so people are this is not
19:56
a this is not an insurance sales call
19:58
this is not a hard sell
20:01
well I think that as someone who comes
20:03
from the sales background for years
20:06
where I had to go out and generate my
20:09
own leads your call center
20:11
lead generation system is outstanding i
20:13
think it’s one of the biggest assets of
20:16
this business specifically and then so I
20:20
think you’ve got just a winning formula
20:22
I i think as i mentioned at the
20:24
beginning with that home improvement
20:27
space just exploding you’re going to be
20:28
run on top of that so she can have that
20:30
can tell you one more piece of new
20:32
standard that didn’t mention in the
20:34
beginning of the entrepreneur magazine
20:36
comes out every chance februari with the
20:40
the top500 franchises and we were on
20:44
that list again and to your point we
20:47
were now we’re not listed within the top
20:49
25 home improvement franchises up so
20:53
we’re delighted to be you know in that
20:56
in that company
20:57
congratulations i’m going to make sure I
20:59
got that in it that’s the first time I
21:02
want to I want to thank you for joining
21:03
me today I think this was a great
21:05
conversation we’re going to pick up
21:07
putting your information your website
21:09
your phone number and so forth
21:11
ok in our notes so people can contact
21:12
you directly and again I want to thank
21:15
you for joining me today appreciate and
21:17
thank you very much thanks for joining
21:18
us on this episode i hope that you found
21:20
it informative please check out the
21:23
notes section for more links and no
21:25
information and if you like what you
21:27
seen please make sure that you like us
21:30
on Facebook and also subscribe so that
21:32
you up-to-date on weekly basis of what
21:34
we’re doing
21:35
thanks again see you next week

House Flipping without the house, get into real estate investing with no money down and no credit

Notes Section

If you want to take advantage of the incredible opportunity with performing and non-performing notes in this market and start to create income and build wealth, we recommend watching this video.

We interview Eddie Speed about how you can Get Into Real Estate Investing With No Money & No Credit.

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Transcript

Real Estate Investing with no money or no credit as a senior or baby boomer

00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth hey thanks for
0:07
joining me on this segment of boomer
0:09
income ideas dot-com you know in the
0:10
past we’ve done a segment on
0:12
house-flipping we also do segment on
0:15
buy-and-hold real estate investment but
0:18
what about the real estate investment
0:20
where you don’t actually own the
0:22
property and it takes no money out of
0:25
your pocket
0:27
that’s what we’re going to be talking
0:27
about today we’re going to talking with
0:29
any speed at the note school and I think
0:33
you’re going to be pretty interesting
0:34
what he has to say so stay tuned
0:35
hey thanks for joining me thank you I’m
0:39
so glad to be here
0:40
I got an email from that I’ve been
0:42
following you for a while I got an email
0:45
from your back in November on November
0:46
tenth that really piqued my attention
0:49
and I knew at that time I had to get you
0:51
on the show let me know let me just read
0:53
to you what this says it says have you
0:56
been hitting your head against the wall
0:57
trying to get into real estate investing
0:59
you can do better than that with this
1:02
new way that’s easy to learn you can be
1:04
up and running in just days
1:07
no talking to sellers know using any of
1:10
your money or credit full support of an
1:13
experienced team plus this is the big
1:16
one
1:16
it’s actually fun to do so that’s a
1:20
pretty tall order he can you elaborate
1:21
on that
1:22
well you know the note buying business
1:28
buying real estate notes
1:30
the idea is is you are buying a
1:33
discounted note that either is paying or
1:37
not pay in and you’re buying that note
1:42
at a better value by today then you
1:44
typically would be able to buy real
1:46
estate real estate was a value by in
1:48
2010 and a lot of situations it’s not a
1:51
value by today notes have not recovered
1:55
the way the real estate market has and
1:59
44 probably the biggest reason is you
2:02
alluded to people don’t know about it
2:05
people don’t there’s not as many people
2:06
to do it well that’s good point let’s
2:09
let’s let’s kind of clarify the little
2:11
bit you know we use that
2:12
the the term note and essentially what
2:14
we’re talking about is a mortgage or
2:17
trustee door some kind of debt
Real Estate Investing with no money or no credit as a senior or baby boomer
2:20
instrument correct yep that’s great
2:22
so instead of actually buying the
2:25
physical real estate property we’re
2:28
investing in real estate by owning the
2:30
debt against that property as opposed to
2:33
actually owning the property itself is
2:34
that correct that’s correct
2:36
ok so you have a note school I mean
2:41
that’s basically what you’ve been doing
2:43
for the last 35 years from what I
2:45
understand that’s great so can you
2:47
elaborate on that a little bit tell us
2:49
about the school tell us what we can
2:51
expect if we if if we see any this
2:54
sounds really like something i’d like to
2:56
look into tell me about the school
2:58
what are we where do we go from here so
3:01
note school I formed it about 15 years
3:03
ago so I’ve been in deep in the note
3:07
space for a long time that 20-plus years
3:10
and then at that point I decided that
3:14
there was a lot of people that i could
3:17
do business with or a lot of people that
3:19
just weren’t lucky enough to get to fall
3:22
into learning the notes space like idea
3:24
i I’ll started like my father-in-law
3:27
taught me the business he was a pioneer
3:29
above buying discounted owner finance
3:32
notes and so I just fell into the
3:34
business for that reason but there was a
3:36
lot of your marriage married well in
3:38
other words i DNT that’s right you
3:40
wouldn’t like that truck that’s what
3:44
we’ve been now married 34 years so it’s
3:46
worked out okay for you you know but
3:50
what I realized there was a lot of
3:52
people particularly real estate oriented
3:54
people that if you could teach them the
3:57
note space they like it because first of
4:02
all you can be a lot more creative in
4:03
structuring real estate deals and then
4:06
secondly not only structuring the real
4:08
estate deals but you know what why why
4:11
be the landlord when you can be the bank
4:13
good and that’s basically what we did
4:17
and so we started building you note
4:19
school has grown into all these
4:21
different training facilities different
4:24
things that we have but that was
4:25
originally the idea
4:26
get started so I know that this is a
4:29
pretty complicated subject to ask and I
4:32
know that this is a lot of what you
4:34
talked about the school but when you say
4:36
why on the real estate when you can be
4:38
the back you know to me that sounds like
4:41
I’m going to whole lot of money i’m
4:43
going to get a truckload of money in
4:45
order to be the back how do i do that
4:47
without that being my money or my credit
4:51
well let me tell you a transaction that
4:53
I did this week
4:55
ok myself to Bob roth IRA self-directed
5:01
retirement account bought a note that’s
5:04
pee in a discount so the note earns
5:08
about eight percent interest and I
5:10
bought that note about twenty-five
5:12
percent discount now if I took a
5:14
calculator and I said what’s the
5:16
interest on my investment per year for
5:18
the next 12 years it’s probably fourteen
5:22
fifteen percent through it pretty good
5:24
go now i may or may not have had extra
5:31
money in my retirement account but i
5:35
have passive investors that call us all
5:39
the time and they would set they say
5:43
well Eddie we would like to buy a note
5:46
but we don’t want a lot of brain damage
5:48
okay so-so of that note i sold seven
5:55
years of a 12-year note okay i sold a
6:00
partial to make a hundred percent of
6:03
payment until they get all the money
6:05
their promised and then I’ll get the
6:07
note back so my retirement account
6:09
control contracted and invested in the
6:12
entire note and then I had another
6:15
investor lined up and they bought enough
6:17
of the note at a lower return than what
6:21
i’m getting essentially to pay for the
6:23
note let’s just say hypothetically i
6:26
paid fifty thousand dollars for 12 years
6:29
they pay fifty-thousand-dollar for seven
6:32
years which means if i put in their
6:34
calculator
6:36
going to earn you know your numbers in
6:38
interest on their investment right so I
6:42
had no money so you in a sense leverage
6:46
the note for a hundred percent of what
6:49
you would have otherwise invested in the
6:52
note by then
6:54
re leveraging out or selling it to
6:56
another group of investors and
6:58
essentially you’re making the spread or
7:01
the difference between you’re fourteen
7:03
percent and their nineteen percent is
7:05
this is that right
7:06
but your bank does yeah exactly okay so
7:09
okay so how difficult is that for
7:14
someone who really doesn’t have a
7:16
background and finance to really come up
7:20
to speed on that and understand all the
7:22
intricacies and the nuances of of
7:26
putting that kind of you call the deal
7:28
architecture that kind of architecture
7:30
together
7:31
yeah yeah so that’s fair question
7:34
so I related to have to capturing a lot
7:37
of people in the fix and flip world
7:38
right that I’m houses and fix it up and
7:41
Real Estate Investing with no money or no credit as a senior or baby boomer
sell it and so I tell people if you can
7:44
learn to a fix and flip house or you can
7:46
learn to buy a rent house and manage a
7:49
tenant there’s nothing more complicated
7:52
about what we do than that
7:54
so how I find these notes so we have
7:59
created not just a school to teach you
8:01
how to do it but we create a path so
8:03
that you can have access to inventory
8:05
ok so i guess then my next question is
8:09
if you’ve got all that in place you got
8:13
the investors you’ve got the notes
8:14
you’ve got the money
8:16
why do you need us
8:19
it’s a velocity you know if i buy if I x
8:23
600 notes and I sell 400 notes and i buy
8:29
them at seventy-five cents on the dollar
8:32
and I sell them to you at 82 or 85 cents
8:35
on the dollar then I that the return on
8:39
that investment is phenomenal
8:41
right because i only had to own them for
8:43
say 90 days and
8:45
now that doesn’t mean that I don’t keep
8:48
loans that I don’t resell because
8:50
counting wise i may adjust what I have
8:56
invested in those notes which enhances
8:58
my short-term you on the loans are
9:00
binary cell and really enhances my
9:03
long-term you on my lungs that don’t
9:04
resell okay what happens
9:08
these are alone so they’re subject to
9:12
default what happens in the case of
9:14
default well that one of the the one of
9:17
the biggest things that note school
9:18
teaches is is that that management
9:21
process and words how to evaluate alone
9:24
to get a sense of the likelihood it will
9:26
pay and then secondly if it doesn’t pay
9:30
what are you what do you do who do I see
9:31
what type of a vendor could I deal with
9:34
that could solve my problems now by the
9:37
way half of the notes that we own our
9:39
loans that are not paying right now
9:41
yeah we call these non-performing that’s
9:44
half that’s is that correct that is
9:46
great and that would typically really
9:48
scare someone I mean you know what it’s
9:50
like I want to tell you this note and by
9:53
the way the person who has a note isn’t
9:54
paying on it
9:56
why would that be attractive to
9:58
investors that the the biggest thing the
10:01
biggest thing that I think that we focus
10:03
on that note school today is is how to
10:05
make an entrepreneurial decision right
10:09
how to evaluate your risk and buy one of
10:12
these notes and make sure that you’re
10:13
not overpay in and secondly this the a
10:17
big thing that entrepreneur has to do is
10:19
to how to know how to build your power
10:20
team you know your you don’t need to
10:23
know how to foreclose in the state of
10:25
Indiana your servicer with an attorney
10:28
network that knows how to foreclose in
10:31
the state of Indiana and so you’re gonna
10:35
you’re gonna be great we spend a lot of
10:38
energy focusing on these are the
10:41
decision points that you’ve got to be
10:43
competent at in order to have to employ
10:46
your power team and manage them
10:48
correctly
10:51
so when I’m when I’m getting from this
10:55
really is that it’s really very similar
10:57
to house flipping in that if I was a
11:00
novice but I had a desire to get into
11:02
that form of real estate investment the
11:06
the best thing that I could do is find
11:08
some expert somebody that can be a
11:10
mentor that has a a team behind them
11:13
that can help me along the way you teach
11:15
me the lessons and giving the ropes and
11:17
and oh by the way if they are actually
11:19
happen to have access to inventory and
11:22
and accesses are at can access Capital
11:26
so much the better
Real Estate Investing with no money or no credit as a senior or baby boomer
11:27
and in this case that’s exactly what
11:29
you’re talking about with the notes cool
11:31
is that right you you are essentially
11:34
that expert with the team behind you
11:36
that can take someone who really is
11:40
completely a novice in this take them
11:43
through the program and by the time
11:44
they’re there through this
11:47
did you say it was a three-day program
11:49
yeah we have we have three day classes
11:51
is one of the things that we offer yes
11:53
okay and by the time they’re there
11:55
they’re done with that three-day program
11:56
there at least proficient enough to be
12:00
able to analyze a deal and and go into a
12:04
deal
12:05
pretty pretty well knowing whether it’s
12:08
you know a good deal bad dealer or what
12:11
have you and at the same time if i
12:14
understand correctly they also have
12:16
access to you and your team so that they
12:18
can run that deal past you just to get a
12:21
double look at it it’s alright well I
12:25
wouldn’t I wouldn’t I wouldn’t tell
12:27
anybody that just because you go to a
12:28
three-day class that it’s 24 7 at access
12:31
light around matter that I’m even of the
12:33
stick expectation and i don’t i don’t
12:36
have it i don’t have a reputation of
12:38
overselling but but but but what I would
12:41
say to you is we’re going to do a very
12:45
good job in in both some online training
12:48
that we gave you and some live training
12:51
that we give you that with the thing
12:52
that we really like the lot of training
12:53
enables us to do is do case studies so
12:56
we have a lot we have a kind of online
12:58
process that we wrap somebody inside of
13:01
that is also going to come to a class
13:02
the purpose there is there’s some things
13:05
they’re just background details kind of
13:08
building blocks to the business and
13:10
there’s no replacement for it we we have
13:12
to be able to feel it we have to be able
13:14
to give that to you so that you have
13:15
that knowledge then when you get two of
13:18
them an event what we like to do or case
13:20
studies like here’s a here’s a loan that
13:23
you identify in a group of loans and
13:26
let’s just go in there and start digging
13:28
it out looking at it can you live with
13:29
it can you not live with it and one of
13:32
the things that we’re really focused on
13:33
is tolerance if not every student has
13:37
the same degree of Tolerance maybe half
13:39
of the students that train with us don’t
13:41
Real Estate Investing with no money or no credit as a senior or baby boomer
have a tolerance about non-performing
13:42
notes they want to buy just a note
13:45
that’s paying every month they say hey
13:46
if I can buy note and earn ten or eleven
13:49
percent return on my money every year
13:51
and have it serviced at a servicing
13:55
company and they really do all the labor
13:57
I like that plan sure you don’t have to
14:00
be near as knowledgeable by not
14:01
performing now as you do and I’m forming
14:03
that
14:04
yeah i think that sounds great you know
14:07
it’s interesting i was i think i
14:10
mentioned to when we were talking before
14:11
the show that I’ve been following you
14:13
for a while I started checking you out
14:14
about a year ago in Africa when I was
14:18
buying some income properties and I
14:20
thought you know why go through the
14:22
hassle of buying the property and
14:25
holding onto it and putting a tenant in
14:26
it and having to collect the rent and
14:28
things like that
14:29
maybe I should just buy some notes
14:30
instead and quite honestly that the
14:33
thing naively and and it shows my
14:36
ignorance
14:36
the reason I didn’t go forward with that
14:39
was I thought well you know i’m going to
14:41
get the i’m going to get two streams of
14:44
of return on my investment i’m going to
14:47
get the cash flow from from the rent but
14:49
i also have the appreciation of the
14:51
property itself which is pretty
14:53
important to me
14:54
whereas in a in a typical note you’re
14:57
basically getting the income stream for
14:58
the interest for as long as the the note
15:02
is is a you know active but the note is
15:06
typically not growing in appreciation
15:10
but that really isn’t correct
Real Estate Investing with no money or no credit as a senior or baby boomer
15:14
mmm that is not correct because at the
15:16
interest rates go down and you have a
15:18
I interest rate note you’re not just
15:20
went up in value correct right yeah
15:22
there’s a couple of things you know in
15:26
in let me say that that the note
15:29
business buying performing notes and
15:32
buying turnkey investment property is
15:36
his timing if you were on houses in 2010
15:41
that was a very smart decision ok but if
15:45
you look at the real estate cycle and
15:47
where we’re at in the rules take cycle
15:49
and the phases of the cycle and all of
15:51
that conversation buying a house
15:54
possibly at the top of the market means
15:58
that you may collect rent on it in a
16:00
declining market but you may not be able
16:02
to sell it
16:03
we’re buying a loan that is a that is a
16:06
percentage of the value of the property
16:09
no words the loans that we’re buying or
16:11
not hundred thousand loans secured by a
16:14
hundred thousand property it’s a
16:15
thousand loan secured by a hundred
16:18
twenty-five 435,000 our property so
16:20
there’s built-in equity in a
16:22
catastrophic situation that they default
16:25
and then as you said you’re collecting
16:28
that loan every month selecting the
16:30
interest on that loan and if rates go
16:32
down within obviously you’re earning
16:34
away higher than market rate all but
16:37
there’s more you’re buying that note at
16:39
a discount if that loan pays off early
16:43
your return was calculated based on the
16:46
full life of the loan it that long pays
16:49
off early you earn that early discount
16:52
and naturally what happens to the return
16:54
on your investment
16:55
it goes up yeah I think that’s a
16:58
fantastic you know i think i mentioned
16:59
to have actually signed up for your your
17:02
webinar tomorrow I’m going to be in on
17:04
that class so i’m interested in learning
17:07
Real Estate Investing with no money or no credit as a senior or baby boomer
more about you know your expertise in
17:10
this well any I think that this has been
17:12
a great conversation I know I certainly
17:14
got a lot of information out of it
17:16
we’re going to put links not in our
17:18
notes section at the bottom of this to
17:20
your website and your phone number
17:23
I’m going to encourage everybody that
17:25
takes a look at this to at least sign up
17:27
for your newsletter like I have so that
17:30
they get this if
17:31
if they’re not ready to sign up for
17:33
going to one of your webinars yet at
17:35
least they should keep looking at what
17:38
what you’re doing because i think it’s
17:40
some really valuable and and worthwhile
17:43
information so i appreciate that and I
17:46
look forward to talking with you at the
17:48
webinar tomorrow i look forward to it
17:50
thank you
17:50
thanks thanks for joining us on this
17:52
episode i hope that you found it
17:54
informative please check out the notes
17:57
section for more links and relevant
17:59
information and if you like what you’ve
18:01
seen please make sure that you like us
18:03
on Facebook and also subscribe so that
18:06
you’re up-to-date on a weekly basis of
18:07
what we’re doing
18:08
thanks again hope to see you next week
Real Estate Investing with no money or no credit as a senior or baby boomer

Buying an online business

Notes Section

Most of us know that you can buy a brick & mortar business, but Baby Boomers may not be aware of the resources available when buying an online business. In this interview, we talk with Empire Flippers about how Baby Boomers can purchase an online business that is already making money.

 

Want to learn more about Empire Flippers, fill out our brief form today.

1. Affiliate Marketing

Considered to be one of the most effective ways to make money online, affiliate marketing essentially means promoting other people’s stuff on your website.

The Amazon Affiliate program for example, lets you promote Amazon products in a variety of ways, which entitles you to a percentage of any sales they make to people coming from your site.

2. Sell Banner Space

If your traffic levels are impressive enough, you can sell banner space to other companies within your niche.

It’s as simple as reaching out to them with offers, or setting up an advertising page with all the details. You can also add placeholder banners that invite people to contact you in order to “Advertise here”.

3. Write Product Reviews

If your website or blog revolves around a particular industry, there are likely software or hardware products that you can review.

Reach out to the companies behind those products, and offer to review their stuff in front of your large audience – for a fee. The company in question may even provide you with the software or hardware free of charge.

4. Pay-per-click (PPC) Ads

As the name suggests, a pay-per-click ad entitles you to money every time one of your visitors clicks on a banner.

To cut to the chase, your best bet here is Google Adsense. Google lets you specify the type of ads you want shown on your site, and then gives you the code to insert into your sidebars and content. They will then pay you for every click they get. It’s as easy as that.

5. Sell a Digital Product

While selling your own product may not be as immediately simple as the rest of the items on this list, it has the potential to bring in a lot of revenue over a long period of time.

For example, you could put an eBook together (which is essentially a blog post on steroids), and make it the focal point of your website. Depending on your niche though, the possibilities could be endless.

6. In-text Ads

Don’t want ugly banners cramping your site’s style? In-text ads may be the way to go.

By signing up with a popular in-text ad company like Intextual, certain words within your content will be automatically hyperlinked to relevant websites. Visitors who hover over the link get a preview before they click, so it’s often welcomed as a relatively safe and noninvasive advertising process.

7. Become a Consultant

If you’ve been harping on about a subject for a number of years, you may be considered as an expert in your field.

If that’s the case, you could begin offering professional consulting services within your niche.

For example, if your blog revolves around health and fitness, you can charge for personalised diet plans, workout schedules, and so forth.

8. Sell Courses

If you’re enough of an expert to consult, you’re also in a position to create and sell online courses.

You can pre-record them and sell them as downloadable files, or you could have them hosted somewhere, so you can charge your audience for access.

Zippy Courses is a relatively new yet popular way of creating, hosting, and selling online courses  through WordPress. Although Shopify’s Mindflash app also gets the job done.

9. Host Live Workshops

Don’t think your audience will go for pre-recorded courses? You might want to try live broadcasts instead; where you can teach, interact with your audience, and answer questions.

You can host live webinars and workshops through free platforms like YouTube and charge your audience for access. You can also charge companies to sponsor your broadcasts.

10. Start a Job Board

This one may not work for everybody, but If your website possesses a thriving community in the right market, a job board could rake in the cash.

As an example, the Pro Blogger Job Board – the go-to job board for budding bloggers – was started by Darren Rowse after his website Pro Blogger soared to digital stardom.

11. Auction Your Website

Looking for a quicker buck, with none of the long-term stress of managing a growing website? You might want to consider selling your web property altogether.

People regularly pay good money for websites with potential, and EmpireFlippers is a great place to start

0:00
this is boomer income ideas dot-com and
0:04
now here’s your host Dan Farnsworth I
0:07
walk in this week’s segment of boomer
0:09
income ideas dot-com you know in the
0:12
past we talked with an acquisition
0:13
specialist that help us locate and
0:17
purchase business whether it was online
0:19
or offline and also has nowhere to go to
0:22
find an offline business multiple
0:25
listing but most of us don’t know where
0:28
to go to find an online business and
0:30
today we’re going to talking to Justin
0:32
Cooke the co-founder of empire
0:34
flickr.com which is what i consider to
0:37
be the multiple listing of the online
0:40
business world and so with that let’s
0:42
welcome Justin to the show
0:44
hi Justin thanks for joining us today
0:46
hey Dan take some attract me on
0:48
appreciate you know I’m really excited
0:50
to talk to you today because a couple
0:52
months ago we talked with someone who
0:55
was involved in franchise and he was a
0:58
franchise consultant so we help people
1:01
figure out how to invest in traditional
1:04
traditional businesses then about a
1:07
couple weeks ago we we had someone on
1:09
from real-world network Kathy Becky who
1:12
talked about real estate investment
1:14
whether that was a long term play for
1:16
investing in income properties or also
1:20
doing some kind of flips not necessarily
1:22
with her but we talked about those two
1:24
different kind of concepts with regards
1:26
to seniors boomers and seniors investing
1:29
money in something that is going to
1:31
create an income and whether that’s a
1:34
long-term play or flipping play
1:36
we’ve been through those two scenarios
1:38
which are more traditional and now we’re
1:41
talking about online and you’re the
1:43
expert and that’s that’s why that’s
1:45
that’s why i was happy to get you on the
1:47
show today also make good to be i know
1:49
you are just listening to your interview
1:51
I episode of a Chapman shuttle is
1:53
fantastic so if you’re your guests
1:55
haven’t seen now when I recommend you
1:56
listen that was file because it has a
1:57
lot to do with what we’re talking about
1:59
two legs so I appreciate that God before
2:02
i get started in other questions can you
2:04
give us kind of a little bit of
2:05
background of empire flippers
2:08
how you guys got started what you do you
2:10
know why
2:12
how did you guys get to be that niche
2:15
player where you’re the go-to guys to
2:16
find online businesses to buy yes we
2:19
have kind of a strange story but i’ll
2:21
just say i’m a partner company called
2:22
empire flippers and partners com we help
2:25
others by cell and invest in websites
2:28
online businesses and these are anything
2:30
from like the you know I high 42 low
2:33
five-figure up to the seven-figure
2:35
businesses so how we got into this is an
2:39
interesting story my business partner
2:40
Joe and I used to work for a mid-sized
2:44
SEO company in the u.s. is back in
2:46
2008-2009 found an opportunity where we
2:50
need to hire some people we had
2:53
connections in the philippines for a
2:54
previous company we’d run and start
2:57
outsourcing a lot of the work to the
2:58
Philippines eventually we moved the
3:01
Philippines kind of run that company
3:02
ourselves and take over the company quit
3:04
our jobs and outsourced owns started
3:07
running outsourcing company out of the
3:09
Philippines so that’s kind of how we got
3:10
our start in you know like
3:13
entrepreneurship and this this type of
3:14
entrepreneurship I’m that company ended
3:17
up cutting back on its not too long
3:19
later and so we need to look for
3:20
something else to do we start building
3:22
websites and is profitable kind of cash
3:24
flow earning websites and selling them
3:27
rights we build them up for a year then
3:29
sell them off we realize you know we
3:31
weren’t just building cash flows were
3:33
building many assets so these assets
3:35
made money they were sellable and there
3:38
were investors interested in purchasing
3:39
them that’s kind of how we got started
3:41
selling website for these smaller
3:43
businesses and when I say small I mean
3:45
super small we would build a website
3:46
that would make a hundred dollars a
3:48
month right two hundred dollars a month
3:50
so this is like a a large businesses the
3:53
tiny little cash flow but people are
3:55
willing to buy this they’re interested
3:57
in it Mr process for building those
4:00
sites got worse like our success rate
4:03
was bad
4:05
we kind of lost are like roi on building
4:08
out these sites so what we did is we
4:10
pivoted we had all these buyers now that
4:13
were interested in buying these cash
4:14
flows we said look why don’t we let
4:15
other people wear their process is
4:17
working cell on our platform
4:19
so why don’t we let them sell the people
4:21
we have buyers people interested in
4:22
hungry to buy these websites and
4:24
businesses we can produce enough for I
4:27
we can produce you have in our why that
4:28
makes sense anymore
4:29
why don’t we invite other people to do
4:31
it so we start brokering websites and
4:34
online business sales in 2012-13 about
4:37
two hundred thousand dollars in sales in
4:40
2015 we did 4.7 million and we’re on
4:44
track to you about 9 to 10 million in
4:46
2016
4:48
wow that’s that’s incredible growth I
4:51
think everything I saw something about
4:52
you just were
4:56
you’re an ink 55 thousand right now and
5:01
we’re like 168 or something like that
5:03
yeah yeah we yeah our growth was just
5:06
crazy honestly is 161 inc 500 I’m we’re
5:10
gonna double from 2015 2016 ish i’m so
5:14
we’ll be on again we might drop down a
5:15
few points because it’s not quite as
5:17
fast growth but doubling your business
5:19
in the years of bad so what we can’t
5:20
complain
5:21
well one of the things that is really
5:23
really interesting to me is the the
5:28
business if and yet you can go from a
5:32
very small investment in something and
5:34
kind of build that up or you can go for
5:37
the big play that’s already in place and
5:39
and you know if you have the capital to
5:41
do that that’s fine
5:43
you’re you’re able to play in both
5:45
worlds but more importantly and the
5:48
thing that really caught my attention is
5:50
the return on investment as in regards
5:54
to the purchase price of these assets in
5:56
other words from what i can see most of
5:59
the assets are going out about two to
6:04
three times earnings is that is that
6:06
about right on the lowest we talked
6:09
about in terms of monthly generally so
6:11
we say maybe on the low end is 22-24 so
6:15
a little under two years earnings up to
6:18
two years is kind of like the low end on
6:20
the high end yet 3c looking probably 30
6:22
to 36 acts on that kind of higher-end
6:25
again you can even go out from that
6:27
you’re talking about like recurring
6:28
revenue on seven or eight figure
6:30
businesses
6:31
it generally in that you know 527 figure
6:34
ranges to be somewhere between 20 to 35
6:36
x
6:37
yeah so just kind of rule of thumb if I
6:40
was looking at investing $100,000 in
6:44
into an existing business i should
6:46
expect that that will that will return
6:48
somewhere between 25 to 30 three
6:51
thousand dollars a month or in other
6:53
words i’ll have a twenty-five to thirty
6:54
three percent return on my investment in
6:58
that on an annual basis as opposed to
7:01
investing that same amount of money in
7:02
real estate that might return eight to
7:05
ten percent correct that’s right and you
7:07
get the time you get both the same
7:10
benefits to get the appreciation because
7:12
the longer businesses around the higher
7:15
multiples you tend to get rights of the
7:17
business has been around three years
7:18
opposed to one year you’re going to get
7:21
a higher multiple which leads to a
7:22
higher valuation even with the same
7:24
earning so you’ve grown five percenter
7:26
ten percent a year just being around
7:28
additional two years in the key value
7:31
ok so all those things sound great
7:35
now let’s talk about the downside I’m 60
7:38
and so I came from a generation where we
7:41
were given the VCR and then we couldn’t
7:44
program in ourselves you know yeah i
7:46
mean literally if you talk to anybody my
7:48
age and you talk about that they’ll be
7:51
kind of embarrassed but she obviously
7:52
say yeah I never could figure out how to
7:54
how to program it to record my my TV
7:57
shows when I wanted it to
7:59
we kind of came into this world we were
8:02
we were given the the the pc when we
8:04
were in our early twenties we were given
8:06
the VCRs and things like that but we
8:08
didn’t grow up with them so yeah you
8:10
know so when we talk about the online
8:13
world for a lot of this that’s like
8:15
talking about a moonshot i mean that’s
8:18
that’s like talking about technology
8:20
that we know is there we know we use it
8:24
everyday we go on Amazon we buy things
8:27
and and research
8:29
information site so that we can compare
8:31
things but we we don’t know what’s
8:34
behind that give me a little bit of your
8:39
input on what you think about that i
8:42
mean do you think that this is something
8:43
that you really need some kind of
8:46
background in technical background in or
8:50
do you think that it’s this is something
8:52
that the technology has gotten to a
8:54
point where you know someone like me can
8:59
pick up on it being able to modify a
9:01
website be able to figure out how to
9:04
deal with the Amazon and Google and Bing
9:07
and all those kinds of things
9:09
what’s your what’s your thoughts on that
9:10
so look let me be just totally clear I i
9:13
wouldn’t say this is for everyone so not
9:15
everyone can get into this is something
9:17
everyone has a skillset you asked like
9:19
do you think like do I think you could
9:21
do it i think you could do it right
9:22
because running video interviews you’re
9:24
getting these upload to YouTube got a
9:26
nice site and you were telling me before
9:27
the show that you’ve got someone does
9:29
that for you
9:29
yeah I don’t care about that you figured
9:32
that piece on you found someone who can
9:34
do it for you who does it well your site
9:36
looks good
9:37
so you’ve got you you’ve got the skill
9:39
sets to hire people and get them to do
9:41
things correctly so there are some
9:42
either basic skill sets you have to have
9:44
or you have to know how to find the
9:46
people that have the skill set I was
9:48
listening to one of your your podcasts
9:50
when with the when you’re talking with
9:53
Joe and you’re talking about workshops
9:55
tell me a little bit about your
9:57
workshops and and you know again what
10:00
what’s the basics that you need to know
10:02
to be able to get into a workshop and
10:05
participate say okay i can understand
10:06
this
10:07
yeah so let me let me just add on to
10:09
that previous answers briefly and then
10:11
we’ll talk about workshops and another
10:13
thing i mention is that what people are
10:15
finding a lot of value in is partnering
10:17
so there are opportunities for them to
10:19
be the investor in the deal are there
10:21
maybe to investors and they work with
10:24
someone who does have those skillsets
10:25
there’s a lot of value in that so we
10:27
actually sell websites online businesses
10:29
to people that are in those kind of
10:30
partnerships for this too passive
10:32
investors and there’s one active manager
10:35
and they’re the ones of the skills going
10:37
to hire the people to run it
10:38
maybe they put in ten percent and they
10:40
get thirty percent ownership or forty
10:41
percent ownership
10:42
and the investors are passive and on the
10:44
rest you know there are other kinds of
10:46
steel structures you can set up and be a
10:48
passive investor in these businesses so
10:50
there’s lots of ways to do it with zeros
10:52
my mom could do that might be a passive
10:54
investor in the deal on there are ways
10:56
for the net to participate but not to
10:59
buy them and run themselves so in
11:01
talking about workshops one of the
11:02
things we’ve done is we’ve you know I’m
11:05
I based in Southeast Asia my business
11:08
partner isn’t middle I’m inside already
11:10
i’m from the Roman guy i travel often
11:14
and so we’ve done workshop here we’ve
11:16
gone back to us and done a few workshops
11:18
where we kind of layout the process for
11:22
buying an online business like some of
11:24
the things you need to look for
11:25
indulgence you check the business
11:27
because there are you an inherent
11:29
specific risk for online businesses they
11:31
wouldn’t have with a laundromat for
11:33
example so we talked about that we
11:36
talked about you know the process for
11:38
buying a business we talk about
11:39
negotiating the deal a lot of those
11:42
things and really it’s uh away
11:44
it’s a way for us to kind of explain the
11:46
business in the market to people who
11:48
don’t know it as well anyway first drum
11:50
up business for potential buyers or
11:52
sellers right so that’s one of the
11:54
reasons we’ve done that we’ve done maybe
11:55
six or seven of those a couple in Asia
11:57
and a couple in the US are what we plan
11:59
to do more
12:00
ok just the other day I was listening to
12:04
one of your podcast so number 123 which
12:09
I really like because you were talking
12:11
about looking at that deals that had
12:15
already been done as opposed to talking
12:17
to buyers who are about to buy a deal
12:19
and yeah you were talking with the guy
12:23
named jay and he had gone through this
12:26
process before he bought from you of
12:29
looking at 300 deals and he was working
12:32
with his chaplain who we had on the show
12:34
last week as a matter of fact great guy
12:36
and they went through this whole due
12:39
diligence process and Jay happen to be
12:41
from the IT world he was familiar with
12:45
computers and and he did that you know
12:47
in in his quote day job and he ended up
12:51
buying
12:52
a site that i thought was kind of
12:53
interesting because it was some kind of
12:55
supplement that you take after you know
12:58
long night out called rave something
13:00
oh my gravy yeah it’s a the weirdest
13:04
thing so brave his Braves all the rave
13:06
right with the kids these days or
13:08
whatever so they you know it’s it’s
13:10
basically a hangover pill
13:12
yeah you’re crazy nights and it’s like
13:14
kind of like hangover pillar cure for
13:17
them
13:17
I mean to buy it was a weird purchase
13:20
you know I don’t you listen two part
13:21
interview where I said you know I
13:23
thought it’d be a lot of work like him
13:25
in forums and kind of like dealing with
13:26
the community and he was like this like
13:29
flattery is like now not really i’m not
13:31
doing that was like that’s gonna happen
13:32
like that like it’s just funny like my
13:34
own preconceptions that I bring the deal
13:37
with the broker I’m like oh you know
13:38
you’re gonna have to do this and this
13:40
and this and then talking names like I
13:41
didn’t do anything that I grew it anyway
13:42
like pockets or that’s crazy
13:45
well that and that’s one of the things
13:46
that really caught my attention with
13:47
this is that it
13:48
that didn’t seem like something that a
13:51
guy like Jay would have looked into and
13:53
by that what I mean is you know when we
13:56
think in terms of what we might want to
13:58
do online we think well what do we like
14:01
you know if we like fishing we want to
14:03
probably do something that has something
14:05
to do with either selling fishing poles
14:07
or you know or selling charge to the
14:10
fishing spots are doing something along
14:12
those lines enough if if we like
14:14
furniture where we probably never like
14:17
decorating we probably like to have
14:19
something that has something to do with
14:20
buying and selling furniture that kind
14:22
of think how does someone kind of zero
14:24
in on their online business that they
14:29
think might work for them so generally
14:31
you know people like to think of it in
14:33
terms of niches right like i want to buy
14:35
a business in the fishing net right
14:38
where that specific like it’s really
14:41
hard to find a fishing business we
14:44
generally recommend for them to look
14:46
more in terms of price range and like
14:49
general industry like I’m looking for
14:51
you on home furnishings are home
14:54
improvement not you know fishing or not
14:57
lampshades read like looking for website
14:59
about lampshades might be looking a long
15:01
time like I might find the right one
15:03
that’s the right price range for me
15:05
so instead of focusing on very specific
15:07
niches it’s good to open up to maybe
15:09
like industries and look more in the
15:11
kind of price range like I know that I
15:13
have you know sixty to a hundred
15:15
thousand span or I know that I have
15:17
220,000 spends like I want to look in
15:20
that range right and not at very
15:22
specific niches ok would you say that
15:27
this business takes the same type of
15:29
capitalization and planning that a
15:33
traditional business takes and by that
15:35
what I mean is you have a business that
15:38
actually tune that I kind of picked out
15:41
because they have seemed to have a good
15:44
price and they also have climbing sales
15:46
i notice that number number of years one
15:48
of the things I really love about your
15:50
site is that you get a lot of
15:51
information click on more information
15:53
about this particular listing and even
15:55
though you won’t give the name of the
15:57
actual business itself you’ll show them
15:59
will show that the graphs of the number
16:03
of impressions are views over a period
16:05
of time the income that was generated
16:07
the gross profit that was generated so
16:09
you can really get a pretty good feel
16:10
for what the business is doing now what
16:13
we do is we require deposit is
16:16
refundable deposit for any reason a
16:18
potential buyers pay a deposit and we’ll
16:20
share the URL and all the information
16:22
including you know our earnings and
16:24
everything about the business
16:26
ok on number four 0717 you’ve gotta
16:31
listen as under the shopping category i
16:34
guess it has something to do with with
16:36
the coupons
16:37
there’s a they evidently have some kind
16:40
of online coupon just to distribution
16:43
which I know my girlfriend would look
16:44
but this this is a four-cell 420 6667
16:49
dollars
16:50
yeah the listing for 0717 argue link
16:54
available today I’m not sure would be
16:56
available when when this error so it
16:59
goes live but wobbling to anywhere they
17:01
can check out the details
17:02
yeah but it makes 920 dollars a month
17:05
and that’s an average over the last six
17:07
months so again soon as you go to 11 our
17:09
boxes good on the 17 Bucks it at various
17:12
the 920 on average i was built in
17:15
October 2015 so it’s relatively new
17:18
it’s monetize via the amazon affiliate
17:20
program which basically means for me was
17:22
kind of like unsure about that are you
17:24
know it doesn’t understand modulation if
17:27
someone goes to the website they search
17:28
for google search for let’s say ceiling
17:30
fans and they come on the one of the
17:33
pages on the site they see a link to
17:35
potentially buy ceiling fans they click
17:36
on it they go to amazon and they look
17:39
for ceiling fans on amazon to buy one
17:41
this site will get a small Commission or
17:44
bonus for that ceiling fan purchase that
17:47
the consumer made also basically it’s
17:49
just common arbitron people search for
17:50
things on google see it on your site
17:53
click through amazon purchase you get a
17:55
small commission fee right and so these
17:57
sites are trying to your ranked and then
17:59
eventually get affiliate deal on the
18:01
niche is like brands and discounts and
18:04
coupons in the kind of shopping that’s a
18:06
bunch of our brands mentions the URL is
18:10
a dot co.com that’s it it’s it’s a 29 x
18:16
multiple meaning you know 1920 thousand
18:19
dollars monthly multiply that by 29
18:21
months and you get the price of your
18:23
just under twenty seven thousand dollars
18:24
and it seems like it’s the type of
18:27
business that you have no inventory and
18:29
so other than figuring out how to market
18:33
it and grow that traffic there doesn’t
18:36
seem to be a lot of additional capital
18:38
necessary so if you bought this for say
18:41
twenty six thousand dollars and
18:44
capitalized for about thirty thousand
18:46
dollars with so you had four five
18:47
thousand dollars in reserve it seems
18:50
like you could operate that business now
18:52
contrast that with the home furnishing
18:55
idea which is 440 741 and that business
19:00
is 335,000 almost 336,000 to to purchase
19:05
it but if then but it’s in a furniture
19:07
niche so that means inventory typically
19:11
that means you know a number of
19:13
additional costs that are involved you
19:16
know actually actually it’s not because
19:18
here’s the reason why so it’s in the
19:20
furnace in the home furnishings niche
19:22
like that’s what the site talks about
19:24
but it’s monetize the exact same way
19:27
so it’s making it basically people
19:29
search for for things in the home
19:32
furnishings niche and a particular niche
19:33
I’m not going to mention it yeah I don’t
19:35
like fire but bathroom so yeah yeah so
19:38
it’s bathroom related people search for
19:40
those keywords and then they find a
19:42
review of those particular items click
19:45
through amazon once they make that
19:47
purchase this site gets a commission on
19:49
any purchases made on amazon now they
19:51
can purchase anything they can go there
19:53
and purchase whatever electronics or
19:55
anything and you get a commission
19:56
because they’ve been cookie to your site
19:58
so yeah for this site in particular it’s
20:00
not an e-commerce site where you hold my
20:02
soror inventory it’s not an amazon FBA
20:05
or fulfilled by amazon river to ship or
20:07
inventory to amazon it’s an amazon
20:09
affiliate site so it’s just making money
20:12
as an affiliate so it’s actually the
20:13
same modernization and the other one 407
20:16
17 and 40 741 your point stands though
20:20
Dan is that there are businesses that
20:23
have inventory so like if you see one of
20:26
our listings as amazon FBA with the FDA
20:29
means fulfilled by amazon that means
20:30
that someone took product or inventory
20:32
often from China
20:34
ah they shipped it over by boat or by
20:36
air and then have it placed in a minus
20:39
with Amazon so it’s all being stored
20:42
with amazon and they’re selling via the
20:44
amazon marketplace so some as you search
20:46
for something on amazon EC for sale
20:48
that’s actually someone’s listing from
20:51
their inventory being held with amazon
20:53
so those businesses are interesting but
20:56
you’re right there’s a capitalization
20:57
issue right or this is a cash-flow
21:00
crunch everyone i know who owns an FBA
21:03
business they they can do really well in
21:05
this scale very quickly but they require
21:07
a ton of cash
21:08
yeah so the people that are growing
21:10
those businesses are constantly dumping
21:11
their their profits and cash flow back
21:13
into inventory right throw them up those
21:16
businesses are a little different and
21:17
there’s a bunch of different online
21:19
miles actually share you will linger
21:21
give you a link to talk about like the
21:22
11 different online business models
21:25
ok amazon filthy it’s one being amazon
21:27
FBA one being adsense it really goes
21:30
into depth about each one
21:31
ok that that’d be very helpful because
21:33
that’s that’s exactly what what I’m
21:36
getting at what are the different
21:37
categories uh you know some seem to be
21:39
just totally virtual
21:41
you know I’m we what you mentioned is as
21:44
far as the affiliate program with an
21:47
amazon i use that all the time i don’t
21:49
think i’ve been in a real store other
21:51
than home depot for quite a while
21:53
everything else ya buy through amazon
21:55
and and in that case as you mentioned
21:59
you’re getting kind of a commission but
22:01
you’re not actually capitalizing the
22:03
inventory whereas on the FB a program
22:06
especially if you’re buying from China
22:07
it could be a very large capital
22:10
requirement and you’re you’re buying a
22:12
container full of something that you may
22:14
get stuck with if you don’t care if
22:16
you’re not careful
22:17
let’s assume that I’m a 60 year old guy
22:21
and I say Justin I’ve got a hundred
22:23
thousand dollars that I i want to invest
22:25
in something I’m not sure whether i want
22:28
to invest in something that i’m going to
22:30
try to purchase improve and flip or I’m
22:34
going to invest in something that i’m
22:36
going to try to maintain long-term for
22:39
the income stream very much like real
22:41
estate incidentally you know whether
22:42
whether you’re flipping real estate or
22:44
you’re purchasing it for a long-term
22:45
hold this is kind of very very similar
22:48
to that
22:49
yep but you know I’m a 16 year old guy
22:53
coming out of corporate where i was in
22:55
middle management
22:56
I you know I knew how to use application
23:00
software packages but I didn’t know what
23:03
was behind them and in the marketing
23:05
department there always seemed to be
23:06
young kids are just fresh out of puberty
23:09
who were talking about bounce rates
23:12
quality scores an FBA and i have no idea
23:15
what the hell they were talking about
23:16
yeah and I say Justin I really want to
23:20
get into this though I think that I need
23:22
to get into it because I i think that
23:24
it’s the way of the future and I don’t
23:26
want to go buy a sandwich store
23:28
I you know I I don’t want to buy a
23:30
traditional business that I’m forced to
23:32
go to every day and there’s a location
23:34
that i have to go open up and and if I’m
23:38
not there I’m going to put somebody
23:39
there
23:39
so what do i do what’s the best
23:42
opportunity for me to do that and at
23:46
what point do you do you look at my
23:49
background my personality and just say
23:51
damn this is not the right thing for you
23:53
there are limits right so you have to be
23:56
able to work with wordpress and in
23:58
general here’s what we say that you have
23:59
to understand what pressure and domains
24:02
and hosting and you have to have at
24:04
least understanding of the general types
24:07
of modernization and i’ll give you that
24:08
link with 11 different types so you can
24:10
you give you kind of a basic
24:11
understanding your audience and then you
24:16
have to have some kind of traffic source
24:18
so either you understand organic SEO how
24:21
to get ranked on Google so that your
24:23
website ranks on google so people don’t
24:25
get coming to the traffic you have to
24:27
understand how did you pay traffic the
24:29
AdWords pay for traffic and and did the
24:32
keywords up you have to understand
24:33
social media you know either facebook or
24:36
twitter users and all those we have to
24:39
have one of those options has to be a
24:41
good one for you so you know where your
24:43
traffic strategy is how you’re going to
24:44
get traffic and increase your traffic if
24:47
you don’t have those skills it’s gonna
24:49
be really difficult for you to buy this
24:52
business and grow it would be perfectly
24:54
frank you’re better bat if you don’t
24:57
have those skills to learn them so you
24:59
can buy a 20 to 40 thousand dollar
25:01
website right on which is lower risk to
25:04
lower earnings but it lets you try
25:06
unless you get started if not and you’re
25:09
you you don’t want to risk you want to
25:11
learn first
25:12
there are plenty of places to go on one
25:14
of them would be cloud living
25:16
there’s a guy named tongue that teach
25:17
the course of clouds of a dot-com snitch
25:20
pursuits dot-com Spencer Hawes of there
25:23
goes into depth about how to build sites
25:26
from scratch and so you know they they
25:28
can teach you the skills and tools you
25:30
need to get started from scratch but you
25:32
can like jumpstart your learning buying
25:34
a business twenty to forty thousand
25:36
that’s already doing that you’re gonna
25:37
need some of those skills you can’t just
25:39
buy cold yes the seller will ace
25:42
mentioned this on your interview the
25:44
seller will transition you
25:45
yes they will but if you give you know
25:47
nothing and maybe a bit more challenging
25:49
no I got that I wish I had better news
25:51
there I actually think no I think
25:53
there’s actually just not you know
25:55
that’s exactly what we want we don’t
25:57
want the the cells job and the fluff and
25:59
all that stuff we want the the real
26:01
story so that you go into it knowing
26:04
what’s going on
26:05
and then the bottom line to this is that
26:07
this really is a business it’s not
26:09
really you know there’s a lot of
26:10
conversation a lot of talk about passive
26:13
income and online has never passive it’s
26:16
is you know there’s there’s always a
26:19
task to it you might not do it eight
26:22
hours a day for 40 hours a week but some
26:24
of these are five hours a week or
26:26
accessory something that’s gonna work
26:27
there’s some work and there’s a skill
26:30
set I don’t around that is if you’re
26:32
part of a group like there is what we
26:34
see you’re like funds kind of popping up
26:37
where it’s like real estate investment
26:39
trust almost right reads you see people
26:42
buying like larger portfolios to say
26:44
five or 10 million our portfolio and a
26:47
bunch of learned three or five or seven
26:49
thousand dollars each and there’s a
26:51
management structure in place to run
26:52
those businesses with the team and
26:54
everything so that’s one way around and
26:56
let people another one I mentioned are
26:57
like one or two or three investors with
27:00
one or two kind of managing partners
27:02
that actually run the websites and have
27:04
the skillsets and you can you know to
27:06
split up the equity and split up the
27:09
returns are you know based on whatever
27:12
you agree to that
27:13
so there are ways to do it with with
27:15
zero skills but you know you’re gonna
27:17
have to set up partnerships in agreement
27:18
you’re gonna have to make a deal
27:20
there’s a lot of deal-making by the way
27:21
down a lot and one of these I mentioned
27:23
to you you know I know that you’re busy
27:25
doing your thing but like I think
27:27
there’s a huge opportunity for someone
27:29
to teach those skill sets in years and
27:33
to baby boomers and explain to them
27:36
here’s how you run an online business
27:37
like here’s how you get there was one of
27:40
the reasons i love your niche and I
27:41
Beyonce i normally I don’t do like a lot
27:43
of interview across from people like I
27:45
don’t know terribly well but I saw your
27:48
niche and i was like i love what you’re
27:49
doing like this is like you’re you’re
27:52
doing the Lord’s work outside like
27:53
you’re you’re showing people what the
27:56
you know how to run these businesses
27:57
don’t you and that said no but i love it
28:02
i think it’s amazing and there’s just
28:04
such an opportunity you know there’s
28:06
already a ton of people teaching the
28:07
Millennials I didn’t really be taught
28:09
anyways they grew up on the start
28:10
hey so it’sit’s baby boomers that if
28:13
they learn i think they could really
28:14
benefit the retiring like they’re like
28:17
look I want I want something to do
28:19
I want some casual i’m retired but I i
28:21
still want to keep my mind active i want
28:23
to have fun and I want to count the
28:24
business I want the online income
28:26
exactly that and that’s exactly right
28:28
and that’s exactly why why you know
28:31
we’re doing this then I think that
28:33
there’s a huge potential out there for
28:35
what i call moving into the third
28:38
chapter of your life you still want to
28:40
do something you want to stay active and
28:41
you want to make some income but you
28:43
don’t want to do what you’ve been doing
28:45
for the last 40 years which was to go to
28:47
office every day for eight hours a day
28:48
so I agree with you won one last
28:53
question and i really liked your your
28:57
podcast number 158 where you talked
29:01
about the downturns and you talked about
29:04
your own personal downturns one in
29:07
particular was really caught my
29:09
attention because i remember that period
29:12
of time was in 2011 when a lot of people
29:14
have these micro sites or niche sites up
29:17
and everybody was making a lot of money
29:20
and then google or that stands for God
29:24
made one change and white most of those
29:28
sites out nobody had to start all over
29:30
again
29:31
yeah what do you see as the risk going
29:34
forward and let me let me preface that a
29:37
little bit
29:38
in addition to what i just said about
29:39
your site i know you know for years I’ve
29:43
been in the lead generation business and
29:45
we used to do a lot of business with
29:48
google and we would do a lead generation
29:51
page for sold the solar industry for
29:54
instance and i was spending a hundred
29:55
thousand dollars a month with google to
29:58
be one of the top three right a hundred
30:01
thousand dollars a month and I was a
30:02
small guy their fourth one below you
30:05
know the fourth one down was the first
30:07
organic listing he didn’t spend anything
30:10
yeah you know so you have this this
30:13
diversity between people who are
30:15
spending a ton of money just about the
30:17
guy that’s not spending anything and i’m
30:20
curious whether you think that Google is
30:21
going to keep that up for very long
30:23
where they’re allowing all these people
30:25
to make money without paying for any of
30:28
it through google or that they’re going
30:30
to start monetizing the
30:32
organic traffic as well so there’s risks
30:35
and dangers going forward does that make
30:37
sense
30:37
I it does so I don’t think that Google
30:40
is going to start monetizing the organic
30:42
spot I mean that it’s a big deal like
30:45
they even with their ads they they’re
30:47
generally colored boxes that they try to
30:49
make it very clear which not super clear
30:52
to me somewhat clear the which ones are
30:54
ads which ones aren’t they start
30:56
charging for organic positioning i think
30:59
a lot of credibility will be lost and
31:01
they lose market share and more
31:03
important than anything else is to keep
31:05
market share right so they can find ways
31:07
to make our money on the customers did
31:09
like a drug dealer they’re gonna keep
31:10
coming back
31:11
hey so that’s a sprite more importantly
31:13
they lose a lot if they did anything
31:15
other than that but you’re kind of
31:17
maiden main point is like what are the
31:20
risks kind of like going for long term
31:23
in our industry and you nailed it on the
31:26
head using Google’s God if your site or
31:28
your business is based mostly on organic
31:30
traffic and you know in the course of
31:33
their free organic position as you
31:35
mentioned and you lose that positioning
31:37
do a Google tweaker change that can hurt
31:39
you dramatically lose 20 40 eighty
31:42
percent of your income right from that
31:44
change and there are ways around that to
31:47
diversify your traffic streams let’s say
31:49
that you know forty percent of your
31:51
traffic is coming from paid facebook and
31:54
forty percent from google organic and
31:56
twenty percent from social right you
31:58
don’t take as big of a hit if you take a
32:00
google organic it or you can think of it
32:02
even besides like just that particular
32:04
site think about your portfolio right so
32:07
what if your portfolio of sites 10 sites
32:10
right three of them and say they’re all
32:11
equal size three of them or based on
32:14
organic traffic three of them are based
32:16
on page Facebook two of them are based
32:17
on paid google and three of them are
32:19
based on something else you’ve got like
32:21
a diversified traffic portfolio you have
32:24
other issues to where let’s say that all
32:26
of my earnings are coming from amazon
32:28
affiliates or adsense or something and
32:31
they shut me down because of lots of
32:33
reasons why did they shut it down
32:35
I would lose a ton of money so basically
32:38
you want to look out for single points
32:40
of failure like it is the same thing
32:42
with them with an offline business you
32:43
want to avoid single points of failure
32:45
building your business on the back of
32:47
another business that can you know shut
32:50
you down at the flick of a switch
32:52
well that might be a great way to get
32:54
started because you’re piggybacking on
32:56
their success you quickly want to find
32:58
ways to diversify away against and hedge
33:02
against that happening right you don’t
33:05
want to be able to flip that switch at
33:06
some point and cause you your business
33:08
go away and in my mind that’s not a real
33:10
business might be an interesting little
33:12
cash flow you got going but business has
33:14
to be able to survive another company
33:15
just turning you off right
33:17
yeah I get that well just I think this
33:19
is been a great conversation I think
33:22
we’ve got a lot of information and we’re
33:24
going to be putting links to your site
33:26
and what I’d like to do if possible they
33:28
basically just gonna stay in touch maybe
33:31
invite you back every once in awhile
33:32
kind of give us an update on what you’re
33:35
doing and what you see as far as going
33:37
forward and more importantly for me you
33:40
know how many of our how many of our
33:42
viewers are coming over and
33:43
investigating and saying hey this is
33:45
really something that I need to look
33:46
into that sound fair
33:48
yeah man that sounds great and the other
33:50
thing I mentioned us obviously in
33:52
partners com my twitter account at
33:54
Empire covers but if you’re considering
33:56
buying we put out a piece of content on
33:59
that I think that’s really helpful your
34:01
other guests chapman and I we have a
34:03
podcast together my web equity show and
34:06
we made season to all about you know
34:08
from knowing nothing all the way through
34:11
negotiating the deal and what to do this
34:13
the strategies for building out after
34:15
the fact so it’s like a 10-episode
34:16
season season to web equity show is from
34:20
knowing nothing walking you through
34:22
step-by-step the requirements and kind
34:25
of the steps for purchasing on all my
34:26
business so if you’re curious about that
34:28
i really recommend season 2 of web
34:31
equity show obviously we have our show
34:33
Empire flippers it’s about buying and
34:35
selling but also kind of our
34:36
entrepreneurial journey traveling and
34:38
living in Southeast Asia it’s about kind
34:40
of like our business overall Delta
34:42
sounds great
34:43
Justin thanks again thanks Dan had fun
34:45
man
34:46
alright bye bye and thanks for joining
34:48
us on this episode i hope that you found
34:50
it informative please check out the
34:53
notes section for more links and
34:54
relevant information and if you like
34:57
what you see
34:58
just make sure that you like us on
35:00
Facebook and also subscribe so that
35:02
you’re up-to-date on a weekly basis of
35:04
what we’re doing
35:05
thanks again hope to see you next week

School Spirit Vending A lucrative franchise opportunity

Notes Section

In the video we chat with Mat Miller owner of School Spirit Vending. He talks to us about how he turned a side venture into a thriving business that lets him spend more time doing what he loves to do.

If you would like to download Mat’s free ebook or speak to him directly about starting a franchise please click HERE

Dan: Hi and welcome to boomerincomeideas.apps-1and1.com. I think you’re going to really enjoy this segment today mainly because I think that a lot of us can relate to my next guest, a life experience. He started out with a lot of success as a young man. That turned into adversity which he then used as a catalyst to then grow very successful business, which he now franchises. My guest’s name is Matt Miller. He operates a company called School Spirit Vending. With that, I’d like to introduce Matt. Matt, welcome to the show.
Matt: Hey, Dan. Thanks for having me on.
Dan: I think it’s going to be an interesting segment because I think, as I mentioned in the intro, there’s a lot of people that can relate to your experience. We’re going to be talking about School Spirit Vending in-depth but before we do, do me a favor and get me a little bit of background about how you got to where you are.
Matt: I grew up in the Chicago area. I ended up going to college at the Air Force Academy in Colorado Springs, Colorado. Got out of the service back in 1998, decided that I wanted to do some things in a corporate space. I thought I could make some more money and have some more control over my life. We made that transition and spent about a year and a half in the hospital medical world, then about a decade in the ad sales world as an ad executive. Along the way, just got fed up with the fact that I was never really in control that decisions were being made above my pay grade that directly impacted my family and most of the time the rules were changing and they were never in my favor. I finally got to the point financially where we were in a deep, deep hole and I needed to do something to get out of it and so started doing some stuff on the side.
First, anything I could do just to help keep food on the table and a roof over my family of five’s head, I collected aluminum cans for awhile. I sold used books online for several years. The challenge with all that stuff was I had read the book Rich Dad Poor Dad that I’m sure many in the audience have read. If you haven’t, by the way, I encourage you once you’re done with this interview to download it or to go to the local bookstore and get it because it is a book that will completely change your life like it did mine. I bought into Kiyosaki’s whole thought process of passive income and making money while you sleep. I started trying to figure out how to make that happen with no money in my pocket. He did most of what he did through real estate. I couldn’t even afford to buy my own house, let alone have rental properties.
I had a good buddy of mine at church one Sunday who mentioned the fact that he and his daughters had a couple of gumball machines and that conversation gave me hope I guess and I realized that maybe I can start a whole gumball business. Wouldn’t cost a whole lot to get going. The machines do the selling themselves. It’s a quarter at a time but the margins and gumballs are extremely high.
Anyway, I did some research, read up on vending for about a month, and then found my first used candy and gum ball machine on eBay for about $36. Between that, the ebooks and the stuff I needed and the candy and gum balls for the machine cost me about $100 to get the business started and set up a machine after going door-to-door for a couple of days at a local karate studio and waited to see what would happen. Two weeks later came back, normal service time for a machine like that is, I don’t know, 6 to 8 weeks because the capacity of such that you don’t need to go back more frequently than that. After 2 weeks, I was really, really anxious to see what was going to come of this whole thing.
I’ll never forget. I went by the studio on a Thursday night. The place was packed with kids in karate classes. Put the key in [that 00:04:41] machine, opened it up, and literally quarteres fell out all over the floor. I was like, “Wow, this is it. I’ve finally figured it out.” I took the money from that machine. I bought another one and, slowly but surely over the span of several years, built up a business on the side that I was working outside of my advertising career on nights and weekends.
By the time the recession of ’07 and ’08 hit, I had about 125 locations around Houston at that point in time. Then the recession hit. The revenue numbers went down and I was frustrated because I wasn’t making as much as I had been on a per location basis. Right around that time, I had a couple of young kids come knocking on my door selling stuff for the local school fundraisers and I kind of put two and two together, thought, “Well, hey, schools are where they all the kids are. And, man, with what we’re doing in vending, maybe we can get some kids off the street.” I came up with this idea of custom stickers with mascots and school colors and all that and then setting up a sticker vending machine in the school.
I had a buddy who was an elementary PE teacher, was able to get me a machine in his school to try this thing out and after a couple months we realized we were onto something. That first machine was placed actually the end of October of ’07, so right around 9 years ago today was when we set up that very first test school. Fast-forward to today, we’re in several thousand schools. We’re a franchise today. We’ve got about 76 different families that we work with across the country, serving those several thousands schools and are absolutely growing like weed right now.
Dan: That’s amazing, I’ve listened to another one of your podcast in which you labeled this hassle-free, year-round fundraising. Is that right?
Matt: Yes, sir. We do all the work. The schools just have to cash a check so it ends up being a win-win all around. The schools don’t need any volunteers or that type of thing and the money just continues to come in each month from the work that our franchise team does on their behalf.
Dan: As a as a parent and grandparent, knowing that I’m always hit up by the schools for donations, that’s got to be very attractive.
Matt: Yeah. We found that it’s really a no-brainer within a lot of the schools. Some educators on occasion don’t see the tie between stickers and education. I get that, many of them come around later after all of their peers in the area are working with us and their peers end up convincing them otherwise. We found a niche where there’s a real need and have really been able to do a lot of good over the last 9 years. To date, we’ve raised about four million dollars for schools during that 9-year period of time, $0.50 at a time.
Dan: You mentioned that you basically do this across the country through franchisees.
Matt: Correct.
Dan: Give me an idea of what your typical franchisee profile would look like. Is there there a specific type of person who is well-suited for this?
Matt: They’ve got to have at least a little bit of time during the school day, at least a couple days a week to make this happen. Otherwise, just somebody who loves to work with people and is willing to get out and get to know people and work in and out of the local schools in their area. Other than that, Dan, we’ve got folks in age group from 18, brand-new adults, to folks in their late 60s or early 70s that are doing this. We really have a demographically across-the-board our team. We’ve got professionals that are doing this on a part-time basis, just so they can create some additional income and more security for their family. We’ve got retirees that are doing this to supplement their retirement. We’ve got folks that this is all they do today because they took time to put this thing together in a big enough way in order to be able to completely provide for their family.
Dan: That’s amazing. Now tell me. Give me an idea of a day in the life. I mean, how much selling is involved? What’s the average franchisee do on a daily basis to manage and grow [this business 00:09:44]?
Matt: We promote and teach a multi-pronged marketing approach. There really isn’t a whole lot of “selling” involved. We share what we do. We’re dealing with school administrators, volunteer moms, front office personnel, etc. We just spent a lot of time getting to know people and share in the power of our idea. A lot of what we do today is online over email, using postcards, trade shows, a variety of different tools, not just face-to-face with people. The simplicity of our program is such that the conversation is normally very, very, very short. Most of my business that I built on top of my ad career before I walked away from that about five-and-a-half years ago was done either on the phone or email.
We’ve got tools that we’ve put together for our team as an example. We have a marketing video we use that we customize to each franchisee so they can utilize that with the schools in their area. The video literally explains the program for front-to-back, so by adding that to an email or sending a link to someone or what have you, it allows us to much more efficiently share what we’re doing. Then the schools get back to us and say, “Hey, this looks pretty good. I’ve got a couple of questions.” Then the next step is to get them started.
Dan: You’re building up on an ongoing cast of essentially a passive income. Once the machines are in place, then it’s a matter of simply going back to the schools and continuing to make sure that the machines are full and that you’re collecting the money. Is that right?
Matt: Yes, sir. Many of our operators early on are doing that themselves. We’ve got a pretty decent sized group though that has gotten to the point where they’ve decided to hire people to come in on a part-time basis to help out with a lot of that servicing and work in and out of the schools. I, myself, I’ve got 110 schools that I work in and out of and I’ve got a route driver that does that for me today. I actually haven’t been into handle the day-to-day service of those schools in about 4 years or so.
We keep doing our thing and got some really great people that help out in that regard. It gives them a part-time income with a lot of flexibility and it allows me to spend more time doing what I really need to be doing which is establishing the direction of our company, looking out 4 or 5 years in advance and making sure we’re all headed in the right direction and that we continue to innovate for our schools and provide more and more value every day for the kids that our customers.
Dan: I think that’s fantastic. This is Boomer Income Ideas and that’s both boomers and seniors. Someone was looking for a full-time income or trying to replace a full-time substantial income, some of us are just looking for a supplemental income that is a few thousand dollars a month, more than what we’re bringing in right now, to supplement our retirement income. It sounds like this type of program lends itself well to both of those types of scenarios. Is that right?
Matt: Yeah. We’ve got about a third of our team that will always do this as a supplement to some other income that they have. We’ve got about a third of the team that this is all they do and they were all you know successful professionals doing very well in their careers. This got to the point where it didn’t make sense for them to work 40, 50, 60 hours a week when they could work less than that many hours a month for the same or more money. There’s definitely the flexibility there.
My philosophy, because I came from a sales background in the ad world, I took a lot of the things that I hated about being in a sales team and we got rid of them, Dan. Then the stuff that I really liked we kept. One of the things that I hated was the fact that memories were very short. It was a what-have-you-done-for-me-lately world. There was always quotas and all that kind of stuff and we don’t have any of that here. In fact, I’ve had outside experts tell me that, “You know, I’m leaving a lot of money on the table by not doing that with our team,” but here’s the thing, my goal is for this to be a blessing for all of the families that we’re working with. If I’m setting arbitrary quoted numbers for them, then it’s about me, it’s not about them.
We let them grow at whatever pace that they choose. We’ve got some that are out there absolutely tearing this thing up. We’ve got others that are taking a much more slow, steady pace. We are good with either of them because we’re willing to go out and do whatever we need to do every day to continue to provide and do what needs to be done in support of the team. That allows all of our families to put this together at their pace in an environment that is here to encourage them with a community that is supportive and is really a lot like a family with us being willing to help each other out, share best practices and those kind of things along the way.
Dan: I get that. It’s unique to have a no-pressure environment in any kind of sales environment, so that’s an attractive feature. On average, what kind of capital is involved, in getting involved if you and I know that franchise regulations limit you and what you can talk about and the specifics that you can talk about. Can you give us an idea about what kind of capital requirements someone that wanted to get into this is looking at?
Matt: Our franchise today, the start-up costs is anywhere between $17,000 and $23,000. Very, very low compared to most franchises. In fact, the average franchise in America today I read recently cost about $125,000 to get started then. We intentionally keep that low for a reason that get somebody set up. There’s a range there because we offer the ability to acquire two protected territories at the beginning or for those that want to start out smaller, just one. The cost involved, about half of that, is the franchise fee. We have a mentorship program where we put our new franchisees together with a veteran on our team and they spend 6 months coaching and mentoring and take that new franchisee through a training program, as well as actually come out to their area and help them get out and start learning how to promote this to schools locally. Then about half of that is equipment and product for the first five schools.
After that fact, it’s between $1,100 and $1,300 per school to set an individual school up. That’s the equipment, the product, the customization that we do for each school with the design and the printing of custom stickers specifically for their institution. There’s a lot that goes into it but it’s a real simple process once you get going.
Dan: Great. Give us three pros of working in your environment and three cons that someone needs to be careful of or look out for. In other words, what would three things that would indicate that this person would not be the right person to pursue this kind of opportunity.
Matt: Do you mean attributes?
Dan: I think that, right off the bat, one of the pros is that it’s your own time, it’s your own pace, you can determine how much money you really want to make, you really want to go out and hit it. Do you want to just go out at it slowly and either one is fine. I think that’s one of the pros of working with you. What are a couple of other strong pros of working with you and your franchise?
Matt: The first one would be just a passive nature of what we do. Our schools only need to see us every 4 to 5 weeks. You get a school setup, you get the machine up and running, and then you do whatever you want for the next 4 or 5 weeks. It allows a lot of flexibility of time, the ability if you’re a retiree, to continue to do some of the traveling and some of the other things with family or friends or whatever that you might want to do. Money keeps coming in.
You and I are talking here right now, Dan, and I have machines all over Texas and Oklahoma where kids are putting quarters in them right now. I’m actually in Virginia right now spending a few days with my oldest daughter who’s a freshman at Liberty University. Number one, the passive nature of what we do for sure. Number two, like you talked about, the flexibility of schedule, the fact that you can fit into the cracks of your life, whether this is all that you do or whether you’re doing something else and this is just something that you do in addition to that. I would say that the number three thing is just the ability to give back to schools in your area.
On the negative side, it is a business that requires some time to put things together. You can’t just flip a switch and have 20 schools. It takes a little bit of ramp up time. I don’t encourage people unless they have like a pension or another income stream, in most cases, to just jump in and expect to live off of this immediately because it takes a little bit of time. You don’t want to pressure it to begin with especially if you’re in a new area that is never heard of us before. I would say that’s the number one thing. This is more of a long-term play. Long term meaning 2, 3 years, not the next 6 months. I would say that’s the first one.
The second one is the fact that you’ve got to be willing and able to get out and work and deal with people and accommodate them in their schedules. This does occur during the school day so you got to be available at least a few days a month to be in the schools while school is in session. Let’s see, number three, just the fact that there is a capital outlay on the front end that there’s some people that that’s just it’s not a possibility. It’s not a lot of money in the whole scheme of business but for many people that is an obstacle. We’ve intentionally kept the costs down as low as we possibly can but there are costs of operating a franchise like we do. We do have to still charge some of those costs in order to continue to do what we do for our team.
Dan: That’s great. I think this has been a great interview. I really appreciate your time. We’re going to put links to your website and your phone number and so forth in our notes section so that our viewers have an opportunity to get to directly with you and talk to you about the opportunity. I want to, again, thank you for being on the show.
Matt: Dan, if you wouldn’t mind, I’d love to give anybody in your audience that’s interested a free ebook that I wrote.
Dan: Sure.
Matt: It’s called Live Your Dreams: The Top 10 Reasons Why You Need to Own a Vending Business. We set up a landing page just for your audience. They can go to ssvbusiness.com/boomerideas and they can download that for free. Hopefully, that’ll get the juices flowing and get them thinking a little bit about vending as a means of making some additional income whether it’s just a franchise with us or just starting out with gumball machines like I did in the early days. Then if anybody wants to begin a dialogue to talk more in depth about what we do and to take a look into our franchise, I’d love to chat with them.
Dan: Fantastic. Again, know I appreciate it and I appreciate your time.
Matt: Yeah, Dan. Thank you. God bless you.
Dan: Thanks for joining us on this episode. I hope that you found it informative. Please check out the notes section for more links and relevant information. If you like what you’ve seen, please make sure that you like us on Facebook and also subscribe so that you’re up-to-date on a weekly basis of what we’re doing. Thanks again. Hope to see you next week.

 

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