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A Publication of Capitalism.

com Volume 1, Issue 1 | March 2019

ëî
HOW TO CASH OUT AND GO TO THE
LETTER FROM RYAN BEACH (OR NOT)
Dreaming of cashing out and moving on to
On January 21st, 533 men and women from all over the something new? Learn how you can prepare yourself
world entered the same room in Dallas, TX. The and your company for your big payday.
collective net worth of the room was billions of dollars,
but there was no hint of ego; in fact, it was impossible ìì
to tell who was wildly successful and who was starting THESE TWEAKS TOOK THIS COMMODITY
FROM $7K MONTHS TO OVER $4 MILLION
anew.c
IN ONE YEAR
c
Selling a commodity? Want to know the secret to
Because even though many of them met for the first commanding a higher price than your competitors? See
time, they all shared a common goal and similar how this company did it beautifully.
values.c
c ìð
One desire unified everyone - from the investment THE LITTLE-KNOWN WAY TO GET PAID
banker to the oil executive, the Amazon seller to the NOT TO BUY STOCKS
Find out about a stock market strategy most people
energy healer. That one desire was the desire to create
don't understand and use it to put money in your pocket
change while getting offensively rich. while you wait.
c
So when Tom Wheelwright took the stage at CapCon to ìò
explain how entrepreneurs can completely eliminate STEAL THIS IDEA: PRODUCTS FOR
their taxes, there was no cry of “unfairness.” There YEARLY FESTIVALS
were only shouts of joy from entrepreneurs who could Want a business idea that could easily put $7 million in
now invest more into their companies, more into their your pocket serving a seasonal and growing market? It's
lives, and more into the causes they care about most.c yours for the taking.

c
When Joel Marion explained how to use other people’s
ìó
3 LOOPHOLES BAKED INTO THE TAX
audiences to grow from nothing to $100 million in
LAW THAT CAN NEARLY ELIMINATE
twelve months, there was no cry against “greed.” There
YOUR TAX BILL THIS YEAR
was only a common interest in creating a bigger pie.
Rather not pay an arm and a leg in taxes this year? Here's
c what your accountant would tell you... if your accountant
In the final session, Bedros Keuilian talked about the specialized in tax strategies for entrepreneurs.
wounds and scars that came from building an empire.
Every entrepreneur nodded in agreement, as if to say, íì
“I’ve felt that, too.”c HOW THIS NEW BUSINESS SOLD 10,000
c UNITS WITH ZERO AD SPEND
But the most talked-about sessions came from Suzy This 27-year-old just sold 10,000 units of his first
Batiz, the founder of Poo Pourri, and David Osborn, physical product - within a week of launching it,
without spending a cent on ads. Here's how he did it.

íï
FINAL WORDS
one of the most successful real estate investors in the country. Both run businesses in the
hundreds of millions, and they talked about building a unique vision, empowering others, and
keeping your word.

While David was on stage, one of the other speakers turned to me and asked, “Serious question: do
you think this guy would mentor me?” After his presentation, they exchanged contact information
and have been in touch since.
c
And when Suzy came off the stage, a woman approached me and said, “I can’t believe this, but I
just booked a lunch with her two weeks from now.”c

That’s just the kind of stuff that happened. If you were there, you felt it. If you weren’t there, well,
then the recordings are highly recommended (they are now available in your One Percent app).
c
For three days, we worked toward becoming insanely wealthy while creating a life rich with
happiness and fulfillment. But the biggest takeaway from the entire event was this:cYou’re just
like them.c
c
Each of the speakers came from humble beginnings. Few of
them started with any special skill or unique handout.
What they did have was a commitment to doing the right
things for a long time and getting plugged in with the right
people.
c
These three days offered a peek into what happens when you
emerge from your “hole in the wall” and work with a community
of entrepreneurs. We often forget how much easier and more
fun it is to do business with people who support you.

So, when it came time to leave, one attendee said, “...it felt like
someone stuck a knife through my chest.” Suzy Batiz
And that, my friend, is why you are holding this letter in your hand.

Entrepreneurs are used to going it alone. They place bets against all odds. But successcomes a lot faster,
easier, and is just flat out more fun when we combine our resources and open opportunities together.

That’s what led us to begincThe One Percent monthly newsletter.

At Capitalism.com, your network is chock-full of business insights, tax advice, and investment strategies
from the top One Percent in the world, but it is all too easy to return to our silos and feel disconnected from
new opportunities. This newsletter is your touchpoint to those opportunities.

In this issue, you will rediscover an investment strategy that you can use right now to produce cash flow,
and how to buy and sell businesses in today’s climate.

You’ll get a peek behind the curtain thanks to this month’s case study - a company selling 10,000 units of a
first product with zero ad spend.

PAGE 2
And you will be given a ready-to-go business idea that you can steal. In coming issues, you’ll watch as we
attempt to reboot a hopeless brand into a profit-driving cash cow, you’ll model what is working right now
for other businesses, and you’ll be handed business ideas that might inspire your next 7-figure project.

But what you are reading is more than just a newsletter.

This is your access point to new opportunities, investments, connections, and even new forms of
distribution for your business. Over the coming months, your fellow members will appear within these
pages. You’ll have a front row seat while watching new entrepreneurs bring ideas to life and broadcast
them to thousands of influential readers. Readers who will reach out to them, invest in their projects, and
support their businesses (or at the very least, buy their products).c
c
You’ll receive their products in the mail. You’ll talk about them on social media, and you will watch as
hundreds of your peers light the fires of the members of this community.cAnd in time, you may see
yourself and your business featured here, opening new types of distribution and new relationships not
available anywhere else in the world.
c
In a few weeks, we will release the Capitalism.com Community Facebook group, which will serve as our
central platform for communicating with one another, hosting meetups, and creating connection with
other entrepreneurs who open doors and create new opportunities.
c
And in the coming year, we will not only be expanding Capitalism.com to be an online platform that can
light the fire of your business, but we will also be actively creating more in-person opportunities.

The mission of this community is to help entrepreneurs to create the change you want to see in your
world. This newsletter, this community, and this company exist to empower that change. When you are
ready to be featured, please contact us at 1@capitalism.com. After all, Capitalism is your story, and you are
the hero.

Welcome tocThe One Percent.

Ryan

HOW TO CASH OUT AND GO TO THE BEACH (OR NOT)


NOTE FROM RYAN: When I sold my company, I used a brokerage called Website Closers. They got
the deal done, but now that I know more about the world of buying and selling businesses, I wish
that I had gone with someone MUCH more sophisticated. In retrospect, I realize that typical brokers
are too eager to get a check to really push for the best deal possible.
c
I have grown to trust and love Coran Woodmass, one of the most respected people in the space, and
our team caught up with him to get an update on the landscape, so that you know what to expect
when you have your next windfall event.

PAGE 3
Whether you sell today, in ten years, or decide to stick with your business until you die, there is
enormous benefit in knowing how to make it the kind of business that would make potential
buyers salivate and leave you with multiple attractive offers to consider.

Once you start contemplating an exit, a slew of questions will run through your mind.
The first several are:
Can I sell?
Should I sell?
Who would buy my business?
How much money could I sell for?
What is the process for selling my business?
What can I do now to prepare to sell later?
What comes next after I sell?

Can I Sell My Business?


There are three factors that will help you get a feel for your business’ sellability. They include the
type of business, how long it has been around, and your annual net profit.

What Type of Business Do You Have?


In terms of physical products, there is retail arbitrage (wholesale), private label, and your own
brand. Each type has its pros and cons, both for you as you run it and for prospective buyers. The
operative term here is howcdefensiblecyour business is. Think of a castle here – the more
defensible, the less likely you are to see competitors swim your moat and take the place over.
Unique or proprietary product-based brands are the most defensible because it would be a whole
lot harder for a competitor to knock you off and out. Wholesale’s the least defensible, because
your only asset is your inventory, and anyone with the means could duplicate what you have.

How Long Should You Wait to Sell?


Some entrepreneurs have the misguided notion that selling their business is a quick and easy
process, like flipping a domain name. Quick build, quick exit, rinse, and repeat. Nothing could be
further from the truth.

Value is in the eye of the beholder, so you have to build something of value before you can sell.
Businesses with at least three years of growth get the most money. If you opened a business this
month and tried to sell it next month, your prospective buyers are more likely to decide that they
could do it themselves. Why pay good money for a business they could recreate more
economically in such a short amount of time?

What Is Your Annual Net Profit?


The value of anything is the price someone is willing to pay. To value your business, you need to
put yourself in your prospective buyer’s shoes. They want a good ROI. That is why we look at net
profit.

Essentially, that means taking your total revenue minus the cost of sales and operational costs.
You and your accounting team should be on top of these numbers.cc

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PRO TIP:cDiversification is enormously important, too. Think multiple products, multiple sales
channels, and multiple traffic sources. Spreading your eggs among many baskets helps ensure
you do not lose everything if something cataclysmic happens to one product, channel, or traffic
source.

If you are not ready or interested in selling now, you can use this guidance to make your
business more profitable and enjoyable to run, too. A straightforward way to accomplish all
three is to build your own audience. See this issue’scHow This New Business Sold 10,000 Units
with ZERO Ad Spendcon how to do this.

Should I Sell?
There are many different reasons you might want to sell. Whether you broadcast your
reasoning to others or just keep your own counsel, now is the time to be brutally honest with
yourself.
Have you lost interest because you have something more exciting going on?
Does running your business feel like a chore?
Are you feeling scared because all your chips are on the table and it feels like you
could lose it all?
Do you crave the ego stroke that would come from having that big payday?
Are you worried that your whole business might be on the verge of collapse?

Not only is it important to get clear about your motivation, but you also need to get clear on
what you would do if your business either does not sell at all - or does not sell in the time frame
you might anticipate. By the way, Coran says that unless yours is a five-star business with all
cylinders firing, it is not inconceivable for it to take 200 days for a seven-figure sale to close.

Just for reference, here is his breakdown of how many days a business might be on the market
before it sells:

$100,000 – $500,000 — 118 days


$500,000 – $1 million — 151 days
$1 million – $2 million — 128 days
$2 million – $5 million — 146 days
>$5 million — 170 days

Selling your business is not the instantly inflatable golden parachute you might hope it would be. So, it
would be wise to plan for both outcomes: selling it and keeping it. Coran says that in 2018, the buyer
market was keen on buying businesses in the $1 million to $4 million range. Cash was flowing freely.

Good deal structures were the norm. Now that the market has consolidated, the market has
shifted a bit. There is more competition for sellers. You might find 70 competing listings for
businesses of a similar size to yours. It is easy for buyers to get contracts.

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PRO TIP:cWhatever you do, do not decide to sell and then coast until you cash out. The market
changes from month to month. Your business is a living, breathing organism, constantly subject
to change. You never know its true value until you get an offer that closes – and every deal is
very different.

Who Would Buy My Business?


If you imagine your prospective buyer as a highly-paid executive who is looking for a fun side
project that will be extremely lucrative and yield a solid return on their cash, you might be right
on target. At least, that is an apt description of one type of buyer, known as the Financial Buyer.
But that is not the entirety of the buyer universe. There are three types:

Financial Buyers
Value Investors
Strategic Buyers

The Financial Buyercgroup is made up of wealthy individuals and groups with institutional
capital or private equity. They might be hunting for a deal they could fund with money from
investors or even their golf buddies. The allure of buying might be seeing better returns than
they could get by leaving their cash in the bank. If you sell physical products, then your
buyercmay or may not know anything about running an inventory-based business, much less
one that focuses on Amazon as a sales channel. They might even offer an above-market
multiple. An example of this buyer type is a company called 101 Commerce, which acquired a
brand through Coran’s firm. They made a solid offer quickly and the deal structure gave the
seller the vast majority of cash at close.

The Value Investorcis looking for a great deal. Think of house flippers looking for an
undervalued property with good bones. From the start, they imagine what a fresh coat of paint
and some landscaping could do to improve the property’s value.

The Value Investor’s goal is to turn the business around and sell it for even more than they paid
someday. Just like in the real estate market, these buyers get most excited by opportunities to
buy undervalued ugly ducklings that they hope will transform into glorious swans. Coran says
his group has not yet closed a deal with a value-based investor yet, mostly because they tend to
make lowball offers.

The Strategic Buyercmight offer more than a Financial Buyer, but their motives for buying are
more centered around eliminating you as a competitor, bringing your business in-house as a
supplier or customer, or otherwise integrating your company into theirs. If you dream of
walking away with a big check in your pocket and turning your days of working hard into a
distant memory, this buyer might be exactly what you seek. Or, you might need to stay in the
business for a transition period. It all depends on the deal you negotiate. On “The Amazing
Seller” podcast, you can hear how Coran helped a client named Brian Jones sell the Amazon
business he started with $6,000 and grew to $182K in profit. Brian’s buyers found his business
attractive because they own another brand in a closely-related niche.

Obviously, there are pros and cons to each buyer type. There are fewer Strategics in the market
than there are Financials. Ideally, you want to attract several potential buyers spanning the
whole spectrum, but you could have a big win with any type.

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Understanding what each type of buyer is looking for and how they foresee the deal playing out is
essential to getting the outcome you want. Remember, as flattering as getting an exorbitant offer is, the
details make the difference. It is impossible to overstate the importance of a buyer’s ability to close the
deal. Do not just look at the sticker price; look at how and when you get paid, your risk of not getting paid,
and what will be expected of you after the deal is done.

How Much Money Could I Sell For?


Here is where it gets a little more complicated. The answer is: As much as a buyer will pay – and you will
not know that number for sure until someone buys it. But to get a bit more concrete, there are some
factors to consider.

If your business currently cash flows under $1 million per year, then you will be taking home 3x EBITA or
less, unless you find a strategic buyer. Plenty of low-profit businesses sell for millions of dollars, but only to
the perfect buyer (usually a competitor).

Assuming cash flows over $1 million, you can expect


valuations of up to 5x EBITA. However, there are a few
factors that can raise it even higher.

Age:cRun your business longer and grow it bigger. You will


also create a longer earnings history. Your buyers will feel
a lot more optimistic about your business’ future if it has a
longer track record.

Defensibility:cMake your brand as difficult to imitate as


you can.

Diversification:cAim to expand to multiple niches, multiple


products, multiple channels, and multiple traffic sources.

Pro forma financial statements:cPrepare a hypothetical Coran Woodmass


projections report for the upcoming 3-5 years, outlining the
growth rate one might reasonably expect for the business, should your current strategies
continue on their upward trajectory.

There may certainly be more factors that go into your company’s valuation. You probably have
inventory, which your buyer would acquire at cost (plus the costs of getting that inventory into
the FBA warehouse). There many other details to consider, but you can estimate using this
formula.

PRO TIP:cBe open to considering a variety of deal structures. The more open-minded you can be,
the better the potential outcome for you. There are options you may never have considered that
would yield a result far better than the one you think you want.

What Is the Process for Selling My Business?


Some say that it is much harder to sell a business than to run one. Before you take the first step
toward selling, you will need to do a lot of preparation.

PAGE 7
Gather the following:
Your financials:cThey must be 100% accurate. That can take some time. Your accountant and
bookkeeper should keep constantly updated records for your business. In particular, you will
need to provide the following documents: tax returns (at least two years - more if your
business has been profitable longer), profit and loss statement, balance sheet, cash flow
projection, a list of assets, and an explanation of adjustments detailing changes likely to occur
upon your exit.
Your supplier list:cYour buyer will want this information, too.c
Your time:cYou will be on the phone a lot. You might even be traveling in the process of
hashing this deal out.
Your patience:cBuyers have lots of questions that you will need to answer.
Your prospectus:cIt can take a while to draw this document up, so be sure to allot plenty of
time to make yours irresistible. The right prospectus can literally add millions of dollars to
your pocket. Just like all human beings, business buyers make decisions based on story,
opportunity, and momentum. Do not deprive your potential buyer of the opportunity to
overpay. You can make them salivate by showing future projects, comparisons to other
companies, and most importantly, opportunities that you would pursue with the right
“partner.”

It would be wise to talk with multiple prospective advisors with mergers and acquisitions
experience. Not all of them take the same approach. Also, be wary of advisors who seem to say
that they can handle all aspects of the deal on their own. It is impossible for anyone to be an
expert in every area of concern in a business sale. You will be much better off building a deal
team rather than relying on one professional to see your sale through. Yes, it will be more
expensive in the short-term to hire a host of advisors to work as your team – but in the long
run, you will get better results by assembling a great team to negotiate all of the details with
your best interests in mind.

Assemble Your Deal Team


Plenty of first-time sellers are blinded by the check at the end of the rainbow, and they
underestimate what happens afterward.

Work with a firm that has specific experience selling your type of business. Do not choose a
generic broker, advisor, accountant, or attorney. Ignore this advice and you are likely to find
your advisor throwing ridiculous terms at your prospective buyer, and then watching them
run the other way.
c
You will need the following professionals on your team:
Accountant
Lawyer
Broker
Financial Planner
Possibly a banker (SBA lender)

PAGE 8
PRO TIP: Interview every single member of your deal team – even if they come highly recommended.
You need to make sure you are comfortable with them, and that they have worked on deals very similar
to yours.

PRO TIP:cBring professionals in earlier than you think you should. There is a lot more planning needed
than you might ever dream possible. You would be wise to consider tax planning, your business’ legal
structure, and what you will do with the cash after you sell.

PRO TIP:cRemember, a true professional’s fees are going to be high. There is no guarantee that you will
close on your sale, either. But if that seems risky, consider how much riskier it would be to attempt this
feat on your own. Be open-minded and consider the long-term.

Follow Your Team’s Advice


Getting wise advice does you no good if you refuse to take it. This is not the time to be a maverick. Should
you decide to resist the way your team steers you, you should not be shocked to find your deal falling
apart before your eyes.

You will have a lot of hard work to do until the deal closes. It is work you cannot outsource. The tasks will
not always seem logical. You might find yourself feeling frustrated a lot of the time. Your prospective
buyers may make what seem to be unreasonable requests. You may even be tempted to call the whole
deal off because you grow tired of tending to it.

The point is, there will always be moments where the deal looks like it is going to fall through. There will
be times your temper will flare, and you will need to exercise nearly heroic levels of restraint while
allowing your team to handle matters for you. You will be paying these professionals good money. Let
them do what they do best. There may be room for you to push back, but more often than not, you will
need to be more than a little flexible as the deal takes shape. Because you have never been in this exact
situation before, you have no idea what is normal and acceptable. Your team does.

Listen to them and do what they tell you to do. Do it quickly, too. Time is the biggest deal killer you will
encounter. In the end, you will be buying them champagne for advice that might seem crazy at the time
you first hear it. A good team is on the job until the last dollar is paid and the last term is checked off.
They must be unified, informed, and committed.

PRO TIP:cNever, ever talk directly to the buyer during the diligence phase without running your
response past your advisors first. This will be harder to do than it seems right now. Matters can get
heated, and you absolutely can single-handedly wreck your deal if you overstep.

Get Offers, Negotiate, and Sign on the Dotted Line


Once you have an attractive offer and go through the due diligence phase, it is now time for your team to
help you negotiate the final contract. Some details may have changed since you first set foot on this path.
It would be foolish to sign without getting a thorough understanding of the final agreement.

PAGE 9
The areas that might have morphed over time might include everything from the amount of money
changing hands to when you get paid. Your deal might now include stock options and cash. The transition or
handover period might have changed, too.

Get all the details about what happens when, but do not stop there. You will also want details of the deal to
be finalized in respect to:
c
What happens if something does not go your way? What recourse do you have?
What training, if any, do you need to provide to the new owners?
When are your obligations to the business complete?
Will you be working with a larger team (who might turn out to be your bosses) or simply
walking away?c
How will inventory be handled? Is it included in the deal or paid separately?
Will the buyers take over your staff? Or will you need to fire everyone first?

Only when every detail has been ironed out and understood are you ready to sign the final
contract.

What Comes Next After I Sell?


While the dream of taking your pile of cash and going to the beach is a popular one, the truth is,
you will probably get bored within six weeks or less. Taking that six weeks of rest could
rejuvenate you so that you will be ready to start something new. That’s not at all an uncommon
occurrence for serial entrepreneurs.

Coran Recommends Trying Really Hard NOT to Sell Your Business


That might sound like strange advice coming from a business broker, but it is in your best interest
to heed it. Look at every possible alternative to selling your business rather than just jumping into
the sales process. Consider ways to make your business so great you never want to let it go.c
c
Here are ten alternatives worth considering:
Grow your business past whatever plateaus you may be experiencing. Some struggles ease with
additional revenue growth.
Take the time now to optimize for a later sale.
Let your business run its course – take the cash flow and let the business die.
Bring a capital partner onboard.
Reinvest your cash flow to build a more valuable (and sellable) brand.
Acquire another business that enhances yours.
Hire someone to run the business while you work on its strategy.
Bring partners on who can help you diversify your products, channels, or traffic sources.
Create strategic alliances with businesses who serve your audience.
Consider adding offline channels.

PRO TIP:cCarve out some cash now to start investing sooner than later. Lots of owners plan to walk away
with $10 million and be able to get 20-30% returns on their cash, but that sort of return is anything but
automatic. In fact, growing your wealth is a whole new business that requires some practice and know-
how. Start now so you can get the kinds of returns you really want when you exit. Bonus: you might
determine that “your number” is either higher or lower than you thought it would be.
c

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PRO TIP:cMind your mindset, now. When you see a 7- to 8-figure business, you are really looking at the
result of the business owner’s mindset way more than a great product that sells well. A winning mindset
makes you willing to make improvements and grow. It also makes you stronger physically, emotionally, and
mentally, and that pays its own type of dividends. This kind of growth does not happen overnight; today is
the day to start if you have not done so already. There is no downside to investing in yourself, and the more
you do so, the more opportunities you will see coming your way.

Build a Business You Would Never Wish to Sell


The best way to guarantee you build a business that would attract a horde of eager buyers is to build one you
would never want to sell. Choose a niche you want to know more about, where interacting with your
audience is rewarding and interesting. Build a company that grows without you doing all the heavy lifting,
one with diversified channels, one in a space you love. Be insightful about your strengths and interests and
take them seriously. You can – and should – find people whose strengths cover your weaknesses, who love to
do the things that you hate doing. Build something like that, and if you decide to sell someday, you will know
you did it right when you keep hearing potential buyers ask, “Why on earth would you sell this?” That’s the
real dream.

THESE TWEAKS TOOK THIS COMMODITY FROM $7K


MONTHS TO OVER $4 MILLION IN ONE YEAR
Coffee. Nectar of the gods. Magic bean juice.c
c
Regardless of its legendary restorative properties and the enjoyment coffee drinkers feel each day,
starting with the first sip, coffee is a commodity.
c
In fact, as of this writing, at $1.28 a pound on the New York Board of Trade (NYBOT), it is a commodity
that trails in the distance behind the prices of precious commodities like Soliris ($167 per fluid ounce),
Platinum ($48 per gram), or even Gold (at a mere $39.81 per gram).
c
Commodities, the very thing every entrepreneur is warned against selling. That’s because commodities
are bought and sold based on supply and demand – there’s not much of a price bump for good aesthetics.

And yet, one coffee company sells their product for nearly 37x the commodity price. Of course, there is
value added between the harvest and the cup.

How do they do that? And more importantly, how could YOU do that even if your product competes in a
field with more than 7,000 Amazon product listings?

Let us take a lesson from VitaCup. Our resident Amazon manager, Jeff Lieber and his team gave the
company a makeover that took sales from $7,000 a month in revenue to about $360,000 per month.

As magical as caffeine turning a zombie into a fully-functioning human, following this advice could be
the jolt your business needs to fire on all cylinders, too.

PAGE 11
Introducing VitaCup
Before:cThey followed the standard strategy for creating their product listing on Amazon.com.
Basically, some features and benefits. Their coffee (and tea) comes infused with vitamins and
superfoods aimed at boosting energy, metabolism, and mood. They sell ground coffee and single-use
cups. People freaking love this stuff – the 5,233 reviews on their site and a boatload more on Amazon
will attest to that. But at revenue just shy of $10K a month, this wasn’t even a six-figure business yet.

The Turnaround Started with One Simple Question: Why?


Jeff recognized a common problem when he looked at VitaCup.

“When starting and growing on Amazon, it is all too easy to get so bogged down in the daily minutiae of
running a business that you lose sight of the things that actually sell your product. Take a step back for a
second and place yourself in your customers’ shoes. Do you know what sets your product apart from your
competitors and why they buy your product? What problem or pain points are you solving for them? Is this
being communicated clearly on your Amazon product pages as well as your website? One of the biggest areas
of improvement we can make is to help companies look at how to improve their branding and their “WHY”
on Amazon.”

VitaCup was doing what most other coffee sellers do on Amazon. Everyone gives the technical details,
explaining what’s in the box, what their product does. Maybe they take it a little further and publicize
the ethics behind their business (ex. We never test on animals. We only use renewable resources.)
Mostly, the marketing message is logic-focused. Those approaches will certainly sell some product. But
the missing element is the most powerful of all - the emotional aspect. That is where “why” comes into
play.

Customers will flock to you not because of what your product is or does, but instead because of how
your product makes them feel. Once you tap into a customer’s emotions, you may gain a loyal supporter
for life. This is why identifying your “why” is such a game changer for your brand and ultimately your
long-term sales growth.

Let’s Find Your Why


Knowing that your brand needs to lead with its “why” and actually finding it are two very different
things. It can be difficult to distill and clarify your vision in a way that connects with customers.
However, there are many resources that you can use to help identify your “why.”

Go straight to the horse’s mouth.cYour customers will tell you why they like your product… you just
have to ask. Here is how:
Engage with your customers in person, via email, via online surveys, on the phone, and on
social media.c
Ask them why they like your product, what they use it for, how using it makes them feel, etc.c
LISTEN! Not only will you gain a new perspective on your product, but you will also pick up on
the actual “whys” that lead your customer to purchase.
Ask them follow-up questions to help identify what other products they would like your brand
to release.

PAGE 12
Review the reviews.cThe review section of the product listings in your niche (your products and
your competitors’) can give you great insight into why people buy. Look for recurring themes
throughout the reviews. Do buyers mention why they buy your type of product?

Get curious about customer questions.cWhile you peruse reviews, make a little detour into the
Q&A section of some listings. Generally, the questions posted there are from potential customers
who are looking to fill a specific void. These questions give excellent insight into why customers
are searching for products like yours and the concerns they have.

Walking through these thought exercises may take some time but you will soon know what
your brand should stand for and how you should position yourself in your niche. That is how
your brand grows to tower above the competition.

Next, Share Your Why


Time to share that “why” with the world. Your Amazon listing is the perfect place to start. In
addition to reaching customerswho are already searching for products like yours, you can gain
a leg up on the major brands who often neglect their listings. Here is what you might need to
upgrade:

Tweak Your Title.cYour mom was right; first


impressions count. Do not just tell shoppers what your
product is, let them know that they can save time,
increase vitality, start their day off right, or whatever
applies in your case. Fitting these small phrases into
your title will set you apart from your feature-oriented
competition.

Get Graphic.cYou only get so many characters to use


words to sell your product. But you can say a thousand
words with your images. Let your image block do the
heavy lifting for you. Pack it full of high-quality lifestyle
Jeff Lieber shots full of models who mirror your target demographic
using your product. And do not forget a couple of easy-
to-read infographics that further explain your “why.”
The more your customers can picture themselves using your product, the easier the decision to
purchase your product will be for them.

Roll the Video.cShow your product in action, and your customers will not have to use their
imagination. An image is nice, but a video is far more powerful. Yes, you will have to sacrifice an
image slot, but it is well worth the real estate to add a video that contains testimonials, footage of
product usage, or even a little more about your brand and your “why.”

Break Out the Bullets.cNot everyone reads every word, of course. Many shoppers go right to the
bullets to find a reason to buy. Some will not even read the whole bullet point – so you must be
smart here. Start each bullet point with a “why” in ALL CAPS, and it will stand out. Use the
remainder of your character limit within each bullet point to support the statement made in your
tagline.

PAGE 13
You do not have to reinvent the wheel. Using common affirmations, quotes, and colloquialisms are a
great way to help customers understand exactly why they should purchase your product. For example,
if your product helps your customers save time, you might want to use the colloquialism, “Kill two birds
with one stone” to help your customers identify how your product can benefit them.

Register Your Brand.cIf you have not upgraded your seller account yet so you can use Enhanced Brand
Content (EBC), do it now. This will allow you to add visually appealing, well-formatted content to the
section that normally houses your product description. Instead of paragraph upon paragraph of
information, EBC allows you to treat your customers to images and layouts that take your product
description to the next level. If you have a website with strong branding, think of your listing’s EBC as
an extension of your website and give it a similar feel.

Above all else, use this opportunity to speak more about your brand and your “why.” Letting your
customers get to know you better goes a long way toward establishing rapport and securing recurring
customers.

PRO TIP:cIf you already have a product description created, do not delete it when you roll out your EBC.
Even though your customers will not be able to see your description, Amazon still uses it for keyword
rankings.

VitaCup Did It Well


Even their About Us page could spur a prospective customer to buy by touching on tidbits like these:
Made in San Diego, CA
High-quality ingredients and an essential vitamin blend
Tastes fresh and bold
Better for you, your community, and the environment
Giving back by donating a portion of proceeds to help kids around the world get the vitamins
they need
Four generations of expert roasters create the perfect cup
A nutritional expert (Chief Vitamin Officer) packs each cup with vitamins your body will
actually use

When we started working together, they did not have any of this “why” in place in their marketing.
They were not even using video. When we got to work, we revamped VitaCup’s Amazon listings and
other advertising and marketing. By going through the same process you just read, we transformed the
listing into a beacon that showed off VitaCup’s “why” big-time. We added infographics and video,
tweaked the titles and bullet points, and created a compelling EBC.

The result? By the end of VitaCup’s first year as a client, their sales had grown to about $360,000 per
month! Connecting with your customers on an emotional level takes consideration, time, and planning.
However, the benefits of implementing the strategies within this article are exponentially greater than
the effort you will put forth. Tell a customer what you do, and you might gain their business. Tell them
why you do it, and you WILL begin attracting raving fans in no time! It should also increase your
conversion rates on your product pages, which will increase your sales and profitability.

This article was contributed by Jeff Lieber and his team at Turnkey Product Management, a full-service
Amazon marketing agency. Jeff, the founder, is the official "Amazon Guy" for Capitalism.com, because with
over 12 years of Amazon experience, over 150K products sold, and over $10M in revenue made for our clients
each year, he has a track record of growing Amazon sales, sometimes doubling sales in as little as 90 days. Jeff
is a regular contributor to The Brand Builder Podcast with Ryan Daniel Moran and Max Kerwick. Make sure
you are subscribed to the podcast to catch Jeff's regular features on what's working right now.
PAGE 14
THE LITTLE-KNOWN WAY TO GET PAID NOT TO BUY STOCKS
There is a way to get paid to NOT buy a stock - until it hits your perfect price.c
c
This strategy allows you to:
Receive attractive up-front payments for stocks, even if you never buy themc
Only buy stocks when they dip to your perfect price
Potentially add an “extra” 10%-20% ROI per year to your portfolio
Increase monthly cash flows with low-to-modest risk amounts

Almost no one talks about this “Naked Puts” strategy, but a recent lesson inside your One Percent
members area discussed how to use to use an unpredictable stock market to your advantage. Some who
used the strategy when it was released made out like bandits. Back in December, the market was
experiencing huge swings up and down. As a result, some secured 2-4% returns in 30-60 days. That’s an
absurd amount, especially for a rather conservative strategy. One of those trades is outlined below.

The goal is to use this tactic consistently to create an additional 1-2% per month return for your
portfolio. (BONUS TIP:cUse this in combination with our dividend strategies, and you’ll build a sweet
little portfolio that can compound for amazing returns in the long run.)

Below is an overview of the strategy, so you can start testing it this month. Inside the Capitalism.com
Community, our members will be discussing “put picks” as they become available. Stay tuned.

Naked Puts, and Why They Call Them That


A put is the right to sell a stock. When you sell a put option, that option gives you the right to buy a
stock at a specific price by a specific date. You can buy the stock at the specified price or you can let the
put option expire.

A naked put is a stock-buying strategy that allows you to leverage your wait time and your desired
purchase price to make money. You can profit from the movement of a stock without investing in the
stock itself unless the price is right. Why is it called naked? Because it’s an uncovered put option,
meaning you don’t own the stock.

Add 10-20% to Your Portfolio’s ROI this Year: An Example


A naked put pays you to wait and see whether a stock price will drop. It allows you to name the price
you are willing to pay, and you only buy the stock when it hits your desired price. Investment
companies pay you to let them bid on the stock for you when it hits that price.

Here’s how it worked when Ryan did it in December:

Ryan wanted to buy stock in Tesla and was willing to pay $250 per share.
Tesla stock was trading for $275 per share but he thought it might fall below $250.
He sold a put option at a strike price of $250 and received a premium of $25 per share on
100 shares ($2,500 total).
(Note: That is nearly a 10% return for a 30-day period - this is absurd!)
When the expiration date rolled around, Tesla was trading at $288.50 per share.
Ryan got to keep the $2,500 but did not buy the underlying stock.

PAGE 15
Now, if Tesla’s stock price had dropped to $250 a share or lower, his actual cost would have been only
$225 per share when you take into account the $25 per share premium he’d already received.
c
The whole thing also works in reverse.
c
Let’s say Ryan got scared that his Tesla stock might go way down, like, to $100 a share. He could sell his
stock now - or he could buy a put, giving someone the right to buy his stock at $275 a share. He would
pay $25 a share to protect his downside. If the price dropped to $100 a share, he would lose that $25 a
share, but could still sell at $275 per share.c
c
You Win Either Way When You Use this Strategy - But Only If You Use It!
If you are looking at buying stock, would it not make sense to get paid to wait for it to drop to a price you
like? If the stock market collapses and you have to buy the stock, you still save money compared with
buying it on the open market.

You might be bummed if the price dropped lower once you bought, but you would be far less bummed
than if you had bought at a higher price. Plus, you get paid up front to do this transaction, making it an
easy way to increase your cash flow this month without a lot of risk.

The goal of naked puts is to buy the stock you want at a price you like - NOT to avoid buying it. The
bonus is the fee you get for waiting for the price to drop to where you want it. Naked puts let you make
passive income and opens investing options up to you no matter what the market is doing. Think back
to how your investing went in 2018. What could your returns have looked like if you had deployed
naked puts month after month?

Here Is How You Win In Any Market


Remember these three simple rules:

Only run this process on stocks


you actually want to buy,
because you might end up
buying them. The goal is not
speculation; it is to be able to
buy great companies at great If you “get put” the stock (i.e.
prices and get paid to do it. you have to buy it), do not get
upset. Remember that you
wanted to buy this stock all
along. It just means now you
are buying at the price you
hoped for when you bought If you earn at least 1% per month, you
the put. are winning. For example, if a stock is
selling for $100, you would want to be
paid $1 a month to wait. It might not
sound like much, but it is 12% per year
- just icing on the cake of other
strategies you are using.

PAGE 16
THE ONE PERCENT
In the end, this strategy is a really nice way to generate cash flow in a fairly conservative manner that
allows you to wait for the right opportunities to strike. It’s a strategy that really shines when you sell during
a big pullback, because the option price goes way up.

If you want to learn more - and to watch a walkthrough of more examples, be sure to check out the One
Percent lesson in the Capitalism.com app. You will want to open an eTrade account (or other trading
account) if you do not have one yet. Then you can watch, learn, and practice your first naked put. This is a
powerful tool you will be glad to have so you can generate cash while buying stocks you want, at prices you
want to pay.
c

STEAL THIS IDEA: PRODUCTS FOR YEARLY FESTIVALS


For the last two years, I (Ryan) have joined 70,000 other crazy people in our quest to Burning
Man. Although it has a reputation for being a big party fest, I go for the adventure. And an
adventure it is. In fact, justcgetting tocBurning Man is a long process and costs thousands of
dollars.
c
Beyond that, I spend about $1,000 each year to get ready with dust masks, prepared foods, and
other gear that I need to survive the week. And I am on the cheap side.cMost people bring their
RVs fully decked out with equipment and provisions for them and their friends.c
c
But it is not just Burning Man. Every year, from April through October, there are multiple
festivals that attract similar crowds. That made me think: Is there money in serving the festival
goer?
c
Hordes of people travel to festivals like Burning Man, Coachella, Bonnaroo, and other similar
events. Might they need to pick up a few things before they go?cMight it also be easy to find
online places where they gather to plan and chat? Could you reach them with Facebook or
Instagram ads? It would not be hard to find online articles that will tell you exactly what festival
goers want and need. Plus, festival-goers often invest in more gear each year so their experience
improves each time they go.
c
With a little research, you could easily create a brand offering a full slate of the products festival
goers actively seek. In particular, categories they search for include attire and costumes, camping
equipment, festival-friendly food, items to make their camp area impressive to visitors, and even
tools and accessories for their bicycles.

Burning Man takes place in a desert, which creates its own set of unique challenges and product
opportunities. Zooming out just a bit, you could build an entire product line around making a
long festival more comfortable, including:c

Sleeping bags (sleeping bags for two is a Earplugs


frequently-searched item) Biodegradable sunscreen, toothbase,
Portable showers (often called “bladders”) deodorant, and other toiletries
Dust goggles Faux fur coats (it’s a Burning Man thing)
First-Aid kits, including sunburn-soothing Hangover supplements
products RV supplies
Hydration solutions Blow up mattresses and travel pillows

PAGE 17
You might be concerned by the seasonal nature of festivals. However, there are festivals that take place all
over the world, all year long. Many of the products you might sell could also be used in other camping and
other non-festival activities.

Also, many festival enthusiasts prepare well in advance of the event. For them, the preparation process is
part of the enjoyment. But even if your sales turn out to be somewhat seasonal, it is not a stretch to imagine
the 70,000 people attending Burning Man spending $100 each on gear every year. That amounts to a $7
million a year business. Add in the other festivals, and there are many more, and you could build a very
lucrative business.

A Short List of 2019 Festivals

Bonnaroo, June 13-18 - Manchester, TN Governor’s Ball, May 31-June 2 - NYC


Boston Calling, May 24-26 - Harvard Hang Out, May 16-19 - Gulf Shores, AL
Bottlerock, May 24-26 - Napa Valley, CA Rolling Loud, May 10-12 - Miami
Burning Man, Aug. 25-Sept. 2 - Black Rock Desert, NV Shaky Knees, May 3-5 - Atlanta
Coachella, April 12-14 and April 19-21 - Indio, CA Stage Coach, April 26-28 - Indio, CA
Firefly, June 21-23 - Dover, DE Tree Fort, March 20-24 - Boise
Fortress Festival, April 27-28 - Ft. Worth, TX Ultra, March 29-31- Miami

The Takeaway:cWhether you go after this niche or it inspires another – or you have the idea for
another niche forming in your mind, think about the people first as you brainstorm. What do they
have in common? What do they need? Where do they gather? How could you approach them?
What products do they already buy? How could you serve this market in a way that stands out?c
c
As you can see from this festival example, ideas often spring from our own interests.
With that insider perspective, it becomes easy to identify gaps in the marketplace’s offerings.
Getting to know an audience well may be as easy as taking up a new hobby or investigating
something new that interests you. That is how business ideas are born. Use this is a template for
taking your interests (or this one) and building an entire brand around it, while giving people in
that marketplace exactly what they want.

3 LOOPHOLES BAKED INTO THE TAX LAW THAT CAN NEARLY


ELIMINATE YOUR TAX BILL THIS YEAR
Elvis Himself Couldn’t Have Gotten a More Enthusiastic Response
The usual response to an hour-long presentation on tax law is a mix of yawns, snores, and even
some desperate Candy Crushing to deal with the boredom. Not so when tax strategist
extraordinaire, Tom Wheelwright of WealthAbility.com spoke at CapCon. In fact, the crowd went
wild.c
c
If you have not yet watched his presentation - or committed it to memory, it is that powerful - you must
just love writing unnecessarily large checks to the government. Different strokes, folks. (It is incThe One
Percent lessons in the Capitalism.com app - along with the recording from our live Q&A with Tom.) Highly
recommended!

PAGE 18
Here at Capitalism.com, we believe that cash-flush business owners are better equipped to impact their
communities than the government is.

Tom takes a rather unconventional, and yet fully-compliant, perspective on taxes. Where most people see a
mandated amount of money that they must pay every year, he sees a series of incentives devised to get you
to do what the government wants you to do. If you take certain steps, you can keep more of your money.
Obviously, you will want to consult your tax professional to ensure compliance. But should you meet with
resistance in that conversation, it might be time to upgrade your advisor.
c
FACT:cThe government wants you to reinvest in your company, and they will reward you for doing so.
c
It has always worked this way to a certain extent. What has changed is that you have a lot more options for
where to put that money. You are not limited only to investing in your business. You can also reinvest in
real estate, your farm, other business assets, and more.
c
Here are five approaches to saving tax money – covering both what is new and the changes you might
make. They have the potential to kickstart your new, better wealth-preserving strategy right now.

You May Be Able to Deduct Your Inventory


Learn:cThe IRS used to say that inventory was not deductible.
With the new tax law, now it is. This deduction alone might help
you avoid paying any tax this year, assuming you had less than
$25 million in gross receipts (sales) in the last year AND you make
some important accounting changes if needed.

Do:cFollow the rules.


1. You have to be under $25 million in gross receipts.
2. You must elect to be on the cash method of accounting. Not the
accrual method; cash.
3. You have to elect to treat your inventory as non-incidental
materials and supplies. Tom Wheelwright
4. You have to make thecde minimuscelection on your tax return.
That allows you to deduct anything you buy under $2500.

You May Be Able to Take More Depreciation Now


Learn:cBonus depreciation used to apply only to new equipment, but now applies to used equipment as well.
Equipment can be anything inside or outside a building, from chandeliers to carpet, to landscaping. The new
depreciation rate for used or new equipment is 100%.

Here is an example of how bonus depreciation works. Consider a building you acquire. Bonus depreciation
formerly only applied to brand new equipment; now it applies to used equipment as well. Most buildings
come with equipment included, which could include lighting fixtures, flooring, window coverings,
landscaping, covered parking, land improvements, and outdoor lighting. All of that counts as equipment or
contents, which now have a depreciation rate of 100%. This applies whether you buy a building for your
business or invest in real estate - as long as the purchase happened after September of 2017. (Buildings
purchased prior to that date are still subject to the old rates.)c

PAGE 19
You could also apply this to the purchase of a vehicle for your business. For example, if you buy an SUV
or truck that weighs over 6,000 pounds, as long as it is used 100% for business, you can deduct 100% of
the cost. This holds true even if the bank financed 100% of the purchase price.

Do:cDetermine how much equipment you can get bonus depreciation on. That means doing a “cost
segregation” to separate out four different asset types.

Land depreciates at 0%.


Buildings depreciate between 2.5-3.6%.c
Improvements used to be deductible at about 5% a year but are now 100%.c
The contents of the building and land are now deductible at 100%.

On average, when you do this, you will be able to depreciate between 20-30% of your purchase price.

Here is what this means: if you buy an office building with 20% down,cyou might be able to write-off the
entire down payment.cThat is exciting.

Your Home Office and Car Can Help You Pay Less in Taxes
Learn:cThe number one thing you can do to increase the business use of your car is to have a home office.
The benefits are enormous, from having a workspace at home to the major deductions you will get.
Under the right circumstances, you can deduct a portion of your mortgage, energy bill, and furnishings
by having a home office. Of course, having a home office does not preclude you from having a second
office elsewhere, which might be useful for client meetings.

Many tax preparers fail to account for mileage correctly when it comes to business owners with home-
based offices. They start counting mileage only after the first car trip of the day, considering that trip
akin to a
commute. However, Tom says the trip from your living space to your home office (and again, in reverse,
at the end of the day) counts as the commute. That means every mile in your business-owned vehicle
becomes deductible. This change could potentially double your mileage deduction, or more.

Do:cThis is a pretty simple step. If you “commute” to your home office first thing every morning and last
thing each night, you can deduct more than what you would get from depreciating auto expenses. So, set
an office up, and make sure to work there at least a bit every morning and evening. If your current
accountant is scared your home office declaration will raise a red flag that might result in an audit, it may
be time to get a new accountant.

Your (New or Existing) Website May Be Deductible


Learn:cIn some cases, a website is not just a website. It might be considered software. Bonus depreciation
includes software. If your website qualifies, it may be subject to bonus depreciation, which is 100%
deductible in the year you incur the expenses. In other words, if you purchase a website for $100,000,
you might be able to write the whole thing off.

PAGE 20
Do:cIf you watchedcThe One Percentclessons within the Capitalism.com app, you may be in website
acquisition mode now. It would be wise to have your accountant review any such purchase and potential
deduction carefully to ensure the site can be considered software according to the regulations.

You Could Pay Zero Tax When You Sell Your Business
Learn:cThere is a surprising rule few taxpayers know about, called Section 1202. If you have a C-Corp, take
note. The tax rate for selling your business used to be 35% but is now 21%. However, if you plan to reinvest
all of your money in your business, the tax rate could be 0.
c
Do:cConvert your S-Corp to a C-Corp immediately. Note, though, that there are also specific rules
governing the conversion, so consult with a tax professional or accountant and make the switch correctly.
c
Again, re-watching Tom’s presentation - and listening to the recording of the Q&A session he did - will be
well worth the time and attention it requires. The difference in your tax bill might be staggering.

As Tom explains at the end of his presentation, many business owners rely on accountants who could best
be described as tax “planners.” However, there is another level of expertise available. Tax “strategists” will
not just help you pay only what you owe; they will help you find ways to actively decrease your tax bill
from the start. The difference between the two is as significant as the difference between playing a game
of Checkers and a game of Chess.
c

HOW THIS NEW BUSINESS SOLD 10,000 UNITS WITH ZERO


AD SPEND
How does a brand new product-based entrepreneur sell through 10,000 units at full price - with zero
ad spend?c
c
Answer: build an audience, and give them what they want.c
c
Zach is not your typical “physical products seller.”
For years, Zach has published recipe books.c
c
His first book generated $110K in sales in just a couple of months. Normally, a launch like that is the
result of a highly-strategic ad campaign. But Zach spent exactly zero dollars on advertising. Instead, his
entire following has beencbuilt on Instagram. All along, he had shared his story - and the results he was
getting for his clients. More importantly, he created a real presence there, interacting with his highly-
engaged audience like it was his job. They loved him, loved what he was sharing, and loved his
commitment to helping them get the results they wanted.
c
And Then, There Was Cookie Butter
Earning $100k selling cookbooks is fine and well, but something inspired Zach to do more. When Zach
heard that RXBar sold to Kellogg’s for $600 million, he wanted a piece of that action. That led him to
pursue a brand that would make “cheat day” a “normal day.”
c

PAGE 21
Anyone who has ever dieted knows about cheat days. Those are the days when you get to eat what
you really want, rather than what you are supposed to want. Just anticipating an upcoming cheat
day can help people stay on plan because they know the restriction is not forever.

The problem with cheat days is that it is frighteningly easy to undo the hard-won progress if the day
gets out of hand. Zach’s community was asking for a solution. Why couldn’t someone come out with
cheat day treats that were actually good for you? Treats that were low in calories and high in
macronutrients? Treats that tasted good enough to satisfy those cravings?

He listened and got to work to give the people what they want. If you have ever had powdered
peanut butter, you understand the concept behind his cookie butter. Before launch, Zach simply
posted recipes using his powdered cookie butter, and it created buzz with his audience, and among
other influencers.

As Billy Mays famously stated:cthe best sales format is when you can DEMONSTRATE your product
in use.cThat is exactly what Zach did - he simply shared recipes using his product, and the buzz was
built organically.

With zero experience in the physical products world, Zach was not sure what to expect on launch
day - and 10,000 units is a big order for your first product! But as soon as the doors were open, cookie
butterccflew off the shelves as 6,500 eager buyers crashed Zach’s site, some waiting up to two hours to
buy.

To say it was not an optimized customer experience is an understatement. But his customers stuck
with him to get this stuff.cThat is the power of having a highly-engaged audience.They forgave the
missteps that could have derailed his launch and bought like the devoted tribe they are.

NOTE: Many online sellers are going for the sale instead of going for the relationship. The secret to
Zach’s success was the depth of his relationships with customers, so they were willing to forgive any
missteps, while also eagerly lining up to buy and leave reviews!

The result? Zach sold 9,500 units the week he launched, and he only launched to his audience. Some
buyers bought ten units at a time, then came back to buy more. About 30 minutes into this
whirlwind, Zach put his second purchase order in.

Remember, ZERO Ad Spend Here


Yes, but maybe you do not have 100,000 Instagram followers like Zach had. You are (obviously) not
alone. Most entrepreneurs start with an audience of crickets. However, at The Capitalism Conference,
both Zach and Travis Sago shared how they leverage other people’s audiences to promote whatever
products they desire. If you have not seen that session yet, you will want to check it out (in the app)
and take notes.

PAGE 22
Here are a few insights shared from stage:

Your audience will tell you what they want. Zach built an audience, listened to them, and gave them
what they craved. He had never created a physical product before; he just figured it out. The marketing
consisted of nothing more than saying, “Hey, we created this. Swipe up and check it out.” If you do nothing
else for marketing, build an audience and listen to them!

Build a tribe that gives a shit when you say something.cSo many business owners hide behind the scenes.
Their audience has no emotional connection with them, so they buy based on price rather than from love
and loyalty. By building a tribe, you won't have to play the price game. This cookie butter is the first on the
market, but for a reference point, powdered peanut butter runs about $5 per jar. Zach’s cookie butter has
half the number of servings and sells for about $20 per jar.

Solve a problem, then tell that story.cTake your audience on a journey as you solve that problem – even if
it starts out as a problem that you’re solving for yourself. Tell that story. As people comment on what you
share, interact with them. Never let a comment go unanswered. If someone takes the time to engage with
you and you neglect to reply, why would they ever comment again?

PRO TIP:cInstagram loves interaction. Its algorithm rewards


your responsiveness by making your posts show up more
often for your audience. Treat your commenters like
royalty.

BONUS TIP: Other people’s audiences are unused assets.cAs


a compliment to Zach’s partnerships with other influencers,
Capitalism.com mentor Travis Sago suggests using other
people’s social media followings, email lists, and physical
addresses to promote high-margin products. If you have not
heard Travis’s episode on The One Percent podcast, it is
worth a Google. It is calledc“Million Dollar Offers: How Idiots
Zach Rocheleau Get Rich.”

What Lies Ahead?


Zach’s building his brand in hopes of a big exit. He says he feels like he won the lottery when it comes to his
parents and wants to someday build what he calls a Cul-De-Sac Empire. He would love nothing better than
to live on a quiet street, surrounded by neighbors who are his friends and family, sitting on the lawn,
watching their kids play. It is important to him to be present for his future wife and kids, not always
rushing off to work and missing precious time with them.

In addition to wanting to be a great dad to his own kids-to-be, he also has a vision brewing for helping
other kids, too. How that will look is an unknown right now, but it is a mission that compels him to keep his
head down and work hard now so he will be ready when the page turns to reveal the next chapter in his
life. In the meantime, Capitalism.com CEO Ryan Moran is trying to convince Zach to let his fund invest in
his business, or start a food company with him. We will all stay tuned for that, cheeks stuffed full of cookie
butter, cheering him on.

PAGE 23
FINAL WORDS

Here’s What’s Coming Next…c

By this time next month, you will join other entrepreneurs and investors inside The
Capitalism.com Community, an online community with your fellow Capitalists.c
c
Inside, you will CONNECT with your peers and our community leaders, and you will COLLECT
new resources and opportunities to help you build businesses and invest the profits.c
c
In upcoming newsletter issues…
c
... you will discover the new way that we build physical products brands... with extremely high
net margin and much lower competition… (no reviews needed)...
c
… you will learn how one of our members earns a full-time income renting out AirBnBs…c
c
… while another completely skips the “building businesses” part of the equation (spoiler alert:
hecbuys them instead)...
c
… and you will see how one member earns more trading stock options than he makes selling
anything online… (sometimes in just a few minutes per day)...

Most importantly, you will be at the forefront of new opportunities at Capitalism.com. You will
see your peers businesses featured on the podcast, on the website, and here inside The
Community.

The mission of Capitalism.com is to help entrepreneurs create the change they want to see in
their world. This newsletter, this community, and this company exist to empower that change.

And what we’re doing is already working. So, when you are ready to be featured, please contact
us at 1@capitalism.com.

Until then, continue to Create the Change.


I’m rooting for ya,
Ryan

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