Unknown Speaker 0:00
Alright guys, let's get started. And let's get Mr. Dominic in here. Before we actually got started in this could be how to kill her stuff to talk to you guys about today. Dominic is going to be helping. Dominic's is going to be helping Good morning guys chatting about okay, he joined this is always good. Yeah Donald is going to be chatting about some stuff we're gonna answer your tax questions from last week and we are officially live so let's do this. We are this is to make more keep more podcast IG live. I'm not really sure what we're calling this show now. We'll, we'll figure it out show. Yes, the show, we gotta have some intro music. So we need to chat with somebody about that. Getting some real intro music here. But today, we're going to be chatting about, again, how to make more and how to keep more of your money. Dominic is the make more, although I like to pipe in on the keyboard, although he likes to pipe in. And so we got some great information for you guys. So Dominic, I hog the show last week talking about taxes and paying less taxes and things you need to know sort of day, it's your turn to chat first about how they can make more. So Dominic, what's on your mind here? So we were talking last week about what's the what's the one thing that I'm seeing right now. So he's really interesting. I so I you know, as you know, I coach a lot of businesses and work with people on how to create more sales and drive their business forward and all that good stuff. And my favorite people are those people who think they're not salespeople. But here's what I'm seeing right now that I was doing some research for one of my customers and their salespeople and stuff and be pre pandemic. So pre pandemic it took on average for you to like get a hold of somebody and get them to agree to an appointment. Hey comes on. For them to agreed to meet with you for an appointment, it takes somewhere between like six and eight follow ups. So like you, you know, you reach out once you call somebody you try a couple of times it took six or eight of those times. Here's the interesting thing. It On average, most sales reps did no more than two follow ups. Like just That's it. That was the day they finished. They didn't even get a hold of somebody technically. And then they wonder why they had to, you know, make so many phone calls during the pandemic. So in 2020 2020 and then 2021 the number jumped to 18 follow ups to get somebody on the phone. So here we are. Yeah. All right. So from home, by the way, I gotta give a shout out. Hey, Chloe, it's good to see you, sweetie. I hope you're doing good. Okay, keep going. And my wife Ivana just delivered a little espresso over here to the desk, too. So, yeah, so here's the big thing that people are missing right now. And it's interesting. I talked to a guy, he runs a call to actually talk to people like you. So he goes purely after financial advisors. That's his entire thing. So he has, I think five people on his outbound sales team. And he was like, dude, not these guys aren't making enough phone calls. They're not they're not I'm trying to get him to do 50 of, you know, 100 new people a day that they're reaching out to, and I'm not seeing a conversion. I was like, here, just try one thing for me. Get them to reach out to 10. But make sure they do 18 follow ups. His sales in that month went up 53%. Well, big jumps, right. Well, those people if you're listening to this right now, if you're like, Well, I'm not really like a big fan of sales. And I'm not that's not my jam, you're thinking well, 18 follow up sucks. Here's the other side of the equation number I told you, most people fold it up twice when it was required six to eight. Now the stat is sales reps are following up no more than once.
Dominic Cummins 3:54
Like, and this just happened. I have a client they do about $50 million a year. They're trying to do this promotion right now for something it's a luxury brand. They were like Okay, can we will have our you know, SDR like inside salesperson do some calls. That person she sent me an email was like, Alright, I'm done. And I was like, What are you mean, you done? She's like, well, I called everybody on the list. Everybody, I talked to people, they go home. Yeah, I talked to two people and I left like 20 some odd voicemails. I'm like, okay, hey, she was like, What do you mean now? Do you have another list? And I'm like, No, start following up those people. So she sent me literally just before I dive into this, he goes, alright, I've done again. She caught all of them one more time. But this isn't. She's a great lady. Don't get me wrong like she is. She's brilliant. But this is exactly what's going wrong for most people. They're not even trying and even if you don't get to 18 Throw the love of all the totally do at least five.
Unknown Speaker 4:49
Well, and so let me ask you a question, Dominic. Does that mean it has to be for any business owner trying to generate sales because I think that's all from mistake if you have any sort of business side hustle anything. You are a business owner, and you are responsible for driving sales. So is there a way to turn around and do that? Like, is it all calls? Or should it be an email follow up or anything like that? Yeah. Well, there we go. So there was a, there was a really good statistic that was done a study that was done on this, and I don't remember off top my head, like the specific number, but it was massive, is what it was called. If you went with a multi channel approach. Your your thoughts went up like 57% or 63%, something like that. Your follow your results, excuse me, went up by 66. Sorry, I read that, what are your thoughts and I said thoughts. I'll get to that in a minute. AB e one, see, I love these. I love these handles. So far, that just made me old when I call them the handle. And so the so the best way to go is to you know, email then maybe a phone call and a lot of businesses now especially people who are like if your your your Instagram heavy, if you're into this stuff, you're probably not gonna make an assumption, a lot of people are out more of a digital type space business. And so they really literally started those because they don't want to make phone calls, I would encourage you still put those in there. But it could be a text message. If you get a text, you know, get somebody's phone number, text them. Email them. I've got a follow up. For instance, I had a call with the lady last week. And you know why sent her an email. My next thing I was purposely delaying connecting with her on LinkedIn, because that gives me another follow up opportunity. And then I'll just lo and behold, find her on Facebook too. And then connect with her there and send her a messenger message. Right. And so it's that multi channel approach if you're really getting into hardcore sales, one of the things that guy did that I just mentioned that that this call team, as they started to go old school and send some mailers. Now he did some fun little things with like sending like little toy soldiers and stuff like he would if you had an army behind you like he just thought. It's corny. Right, right. It's fun learning remember it, but people remember it. And that's that stuff. Where if you get into your sales reps doing that. So the interesting thing here is and I forget women a B, one C whatever asked me about what do you think about follow up after the sale? I think was the question apologize. I can scroll back up. But yeah, 100%. Here's the thing, I actually just did a post on this, or my team did a post on this, to be honest with you was around the idea of like, if you really want to rip people into advocates, which is a big part of what I teach is like, how do you get people to refer you, it is really more about what you do after they buy than it is on the front end. But all of that really does start from the very, very beginning. But if so if you're that persistent with somebody, think about it for a second, like if you're not annoying, but you're persistent, which is a fine line. But if you're persistent, and it's a service based business, for instance, like your marketing agency, or you're a financial advisor, or your whatever, you know, whatever your service based business is, somebody's in the back of their head, whether they consciously think of it or not are going like, Man, this dude follows up, or this lady follows up. Right? Like, I can count on them to stay focused. So right follow up plays in a huge piece and everything else and and it doesn't have to be crazy. Like, you don't have to go nuts, but just make it meaningful. Hey, I found you on LinkedIn. So excited. I've read a couple of your articles. I really liked that, or I you know, interact with the post, comment, even the comment that you make on somebody's post on LinkedIn or Instagram or wherever you're, wherever you're at, is technically based upon a form of follow up. So I'll tell you doesn't sound like that much. I'll tell you something really interesting on this going back 25 years ago, Dominic. As you know, I spent a lot of money on Dan Kennedy and learning from Dan Kennedy, and he's one of the most influential people in my business. By the way. For those of you guys just joining this is the make more and keep more podcast. Sadly, if you had joined it at the beginning, you did there is no intro music. It's just a sad little start. We're going to fix that. We need some heavy old school metal. By the way. Did you see my story I posted right before this Dominic was sitting at a red lay. And I'm like me and Dominic. We're going to talk about the make more keep more podcast and rocky like a hurricane was playing on the radio and I'm so lazy. I didn't even turn it down. And so I went there I literally said and yes, we will rock you like your hurricane.
Unknown Speaker 9:31
Facebook Folks, I'm here all week. But here's the thing that Dan said and this goes back 25 years, which is if you're going into break like breaking into a new space. He even recommended like an old there was no internet when all this was being discussed, by the way, like there was but nobody used it or heard of it. And he was like yeah, if you want to dominate your space, he's like you he recommended a three letter sequence to your potential client's old school stamp on paper and a postcard over a pretty short period of time that talked about what they wanted. So it wasn't boring, like in the financial services, I would never talk about that m one money rates, I would talk about the stuff I talked about, how do you pay more or less less than taxes? To stick it to the man? How do you make that money last longer? How do you grow it in a tax free environment or at least a tax advantaged environment. And so he's like, what happens is, over that short period of time, you have now very cheaply and effectively imprinted yourself in top of consciousness, they may not have that need at that moment. But if you continue to follow up at some point, they they if the need ever shifts to where they need what you have, now you are at top of consciousness, and you're the person that they reach out to. And that tip 25 years ago, totally kept me from having to go get a real job. When I went out on my own, actually, I think it was more like 27 years ago. It kept me from having to go get a real job for my entire life, because I would absolutely be 100% unemployable. I'm sorry, I have to wear a mask, and I have to be nice to the people. But I don't want to do that. And I stayed till 11 o'clock last night, but you're mad at me because I was three minutes late this morning. Yeah, I'm not good at that. So what else do they do? D? Yeah, no, I mean, again, you're right thing top of mine. I used to use the analogy with my sales reps. And he looked not everybody loves this one. But but I'm just gonna go with it anyway. I mean, I covered herpes last week. So we're just gonna go with another analogy this week. But sales, we got a syphilis analogy today. I'm going to the animal, Animal Kingdom today, Animal Kingdom today. The book is running sales is a little bit like being a vulture. Like, there is an element of this now, so bear with me for a second because vultures are orderly, is that what you said we're gonna bring the we're gonna bring the fire and we're gonna rock the class. Yeah, sure. Look, I'm a sales guy. When do you ever know your sales guys be classy? So but here's the thing like, ultimately, you know, boulders are sort of opportunistic, right? They float around and look for something that changes and here's the thing. Your I saw, actually a post, somebody else said this the other day too. And I'm actually happy to see somebody else saying it is. See when you're selling, you're really not selling your product. In fact, you're never selling your product. You're selling change, because they're doing something currently today, and then they're going to do something differently after they buy from you. You are selling change, and I don't care what product you're selling. You're selling change. Now, if I were to pull everybody on here, which would be actually fun, there's a little bit of a delay, but like Okay, actually, let's try this. Let's take a whack at this one. Since since you know it's episode four. If you're listening right now put in the comments. Do you like change if I just asked you do you like chain So Ron, do you like change? No, no. Okay. right skewed all the comments into into that way it's supposed to tell you guys look. So here's the thing, though, I see there we go. There we got some we got some comments coming in. When you go into like, especially like a roomful of salespeople, a roomful of entrepreneurs, if I ask that, like, I've literally taught this concept in front of probably six to 8000 sales. Right, right. And depends on the change for the better, right? If somebody sometimes those are good, those are common comments. If I'm in a room full of entrepreneurs, you go, Hey, do you like change? Oh, yeah, I love change. Change is great. I mean, I'd say they don't follow up that clarifier. Okay. You like change? Do you like change? If it's forced upon you? Nobody does. You just said like, I don't want to wear a mask and be nice to people, because that's been forced upon you. Right? That was a lot of the reason I'm not trying to make this political, that's a lot of the resistance to the mass, is just change something different. So what we're used to and whatever, regardless of your leanings, on the whole mask issue, it's changed. It's always hard to do something when it's forced upon you. When a client's meeting with us, we are essentially trying to force them into change.
Unknown Speaker 14:21
But that's essentially what we're doing. And so we have to mirror everything to that. So that's why I use the vulture or analogy is that a lot of times when it comes to us why sales start to go our way is because something changed materially. There's a great quote by a guy named Dr. Henry Cloud that said change rarely occurs until the pain of staying the same exceeds the pain of change. So I think he was I think he was the same guy that said something along the lines of like, price is an issue when value remains a mystery. Like was that the same guy? I think? Yeah, it's real. You got burn that one in your brains, because that's a good one. And so when you think about that, like, you know, those sales that come to you are pretty easy because somebody I used to work in payroll, for instance, years ago, like and ran sales teams in the payroll industry. And they would go, somebody be like, Oh my god, I hate ADP, we got to change, well, easy, much easier to make that change versus somebody who's like you call about, hey, do you want to change over to our system? And things are going pretty well, right now. That's right. So to your point of staying in their top of their consciousness, if you don't do that, through your follow up through your content, like posting on social media, staying up on if you're on Instagram, you know, saying in the stories and staying on reels and, and doing that if you're not posting, you know, two, three times a week and LinkedIn, YouTube's optimized for at least once a week, like all of these content engines help you stay top of the mind, which is sort of that vulture thing? Because then you're hovering around and then when something does go, then bam, we're ready to go. Right. So to me that is that's a lot of that where people lapse on this is you're not going to feel that right away, you're not going to see that it's not like post one story post one real make sales. It's weeks upon weeks upon weeks. So I tell the story a lot I generate I've generated at this point, I'd have to redo the numbers. But last I counted it probably a year or so ago, it was about $600,000 I've generated off of LinkedIn. But that was 72 weeks straight of doing something which I called my weekly mashup. Like it was a week I did it here to actually but posted weekly videos. It was 22 weeks before anybody said they watched a single one of my videos. And that was my brother in law. Like I love it. Like that pivot. No. So 31 somebody in my who had been like my person, like tech person week, 31 was like, Dude, that was pretty awesome. Then then the week 33 Or week 36 or something, and then I sold my first deal, which was like 25 grand a month in retainer. So you look at it just takes that's that. Always top of consciousness. So Dan Kennedy, I mean, Shaka knew what he was talking about when he talked about getting strong consciousness. Right. They went through smart cat by the way, if you youngins have never read Dan Kennedy before. You're in for truth. He's funny. His old speeches are great. You know, he's not. She's I don't know how old he is now. somewhere north of 60. Less than death. fairly early. Yeah. Hey, for those of you guys that are turning in tuning in just now, just so you guys know what you're watching this in the make more keyboard podcast, Dominic has generated a ridiculous ethnic, ridiculous amount of sales over his career, and is the trainer for digital marketer. I am a tax professional as well as financial advisor. So I'm keep more. And we let Dominic go first today because I hog basically the entire show laughs It is tax season after all in a word edgewise. And by the way, curio coats who asked a question about the Roth IRA, we are gonna get to that, but I wanted to let d have his time today. So we're gonna get to some questions too. There were some leftover questions which Ivana My wife wants to start this. Do you have any questions? Do you have any any other comments for him? Or was that good? I don't want to cut into your time. No, man I'm good. I just wonder if you guys have sales questions. Make sure you're asking them if you have something in the chat we'll if we don't get to it today, we write all these down and we get to them on a future day or I'll shoot some follow up. More thing. One more thing that you guys I would bet money that every single person on this call knows who Gary Vee is. Right now
Unknown Speaker 18:51
I heard I first heard Gary Vee spit speak back in 2010 when a Yannick Silver's events, and I'd never heard of him before, no idea who the guy was. And he was great, you know, foul mouth and hilarious and wanting to buy the Jets for some sticker he's gonna buy, you're gonna buy footballs and you want the Jets. But anyway, I could think of really about 28 other teams that I would rather buy first out of the 32 Other than the Jets, but what everybody may or may not remember, because I don't follow Gary I like I kind of know I know what Gary's gonna say for the most part, but that guy did on a Wine Library episode a day for years before anybody paid attention to him. And had he given up after a few episodes. None of us would know who he is. And he certainly wouldn't be worth the kajillions of dollars that he is right now and the author of the books and all that other stuff. Yeah, I believe he said because one of my friends out you know Marcus to Marcus Murphy when I'm My friend is pretty, pretty tight with him. And I think he told markets and I think that's the content on this that he produced over 1000 videos before we saw dollar in return. Yeah. And I mean, that's the way you know, that's kind of how it went. And I've watched a few of those. I think the best one was when he was reviewing all the Charles Shaw wines. He's like, This one tastes like dirty socks. And then he was doing another one like what wines go the best with breakfast cereals? That was freaking hilarious. And if you even think about it, poor Gary at the time was probably like, nobody cares. When I talked about all these fine wines that I talked about the trial shot, everyone's like, yeah, man, or, you know what one does go with Lucky Charms. The day after, on this day after St. Patrick's Day, everybody wants to like, man, anything. I did an article that actually got picked up by actually Digital Marketer. They did a blog on this the other day, but like, the I did a conference and content on this topic of what's what's better quantity versus quality. And most people will go like, Oh, I want quality. I mean, I set it up on purpose. But it's like, oh, I want I want quality quality is better than quantity. And the reality is, you got to have both. So the real answer is you need sustainability. So you actually would kind of bury that scale of your follow up and your content and anything that you're doing to generate money. And again, what you said earlier, if you own a business, whether you want to identify as this or not, you're a salesperson, like you are you have you responsible to the end of the business. Yeah, so happened, nothing happens until some money changes hands or contracts. Or my favorite, favorite expression from an old mentor of mine is revenue is the best deal. Because when you bring in more money, it doesn't stay right. So. So that's the thing is you got to bring in the money. So it doesn't sink, which is actually an interesting piece to this is one of the things I think we wanted to talk about people were pretty excited about it last week, coming into this was you are talking about the risk, if you so want to talk about this is the risk of pulling money from your business. And we were talking a little bit about that, that obviously, the risk goes down a little bit, the more money that you want to bring in, right, or the money that you can bring in. So I don't know if he's gonna still want to still cover that that topic on risk of pulling out is not what I thought what I was thought we were going to talk about that. This is our show. First of all, I missed the question Hold on one second question in the comments about Roth IRA
Unknown Speaker 22:34
versus traditional 401k, for a 25 year old? So let me answer that one first, because that is the burning question. And it kind of leads into the point. And I think we're where we were going with this, as we transition from the make more portion of the podcast to the keyboard is if you are successful taxes will be your number one expense over your lifetime. I mean, even your kids eventually hopefully move out and are no longer on the payroll on the and my little vegan hippie show graduate in May. And you know, but I had I got a 30 year old next month. And so kids are expensive, but eventually they move out and hopefully move off payroll, as opposed to taxes which never go away. And I've seen someone posting in the comments about crashing the dollar when universal income and all those sorts of things. But but really, you know, our Congress, going back to the beginning of time has never met $1 of yours that they didn't like and want to spend for themselves on their projects. And so you owe it to yourself to really get savvy about taxes, learn how they work, even if you're working with a professional, because a lot of times the professionals don't take care of you. You know, and a lot of accountants in this space are really more like tax preparers, not tax planners. So the question someone wrote was, what about a Roth IRA versus a 401k for a 25 year old? So first of all, every situation is unique. So of a 25 year old, making 200,000 a year versus a 25 year old making 75,000 a year, those are going to be possibly different answers. But since most people more people make 75,050 1000 than 200,000. The answer that I would say is number one, fund your 401k up to any free money that they give you number one, and then put the rest in a Roth 401 or a Roth IRA and the reason is the way they get taxed so just real quickly, on a 401k You are number one giving up your access to the money for all intents and purposes for Over the next 35 years, Mr. or Miss 25 year old. So you're cutting off access. And the number one thing that screws everybody is they don't have access to capital. And fidelity just did a study that showed that one in five, millennials, and Gen. Whatever comes before after that not Gen Xers, but the rest, like the younger generation, what if I cashed in their 401 K's? Because they could do it without paying the penalty. So the government comes in and makes you this deal. You know that we will not tax you on this money now. But the problem with the deal is you're not saving taxes, you literally on a 401k Do not save $1 of tax, you delay paying the tax or postpone paying the tax. And you postpone the calculation of the tax. And the government does not want you later to pay them tax on the money that you deferred or postpone. They want you to pay him tax on what you defer to postpone and everything it made over the next 35 years. So showed us ain't ago. All right, are we still good here I'm trying to oh, this is what I'm doing wrong. For Kyriacos underscores ch 10 a Roth IRA, you put it in with after tax dollars, but then all of your income comes out tax free down the road. So I would absolutely say again, if you need to put money in a 401k for any of you listening to this. And yes, there are exceptions. If you're in a super high bracket, our high tax state and you know you're gonna move to a lower tax state. But by the way for raw proof. We do these every Friday at 8am. Pacific. And they're on my feed and we got to figure out how to get him over to Dominic's feed afterwards at real bits advisors. But thank you so much for the kind words we I think, Dominic I speak for myself, but possibly you these are kind of on a lot of fun, right? We're actually gonna, you know, brought up herpes last week, we're going to talk about syphilis next week and aids the week after as it relates to sales.
Unknown Speaker 27:34
But real quick, we're gonna download these two December notes, we're gonna get figure out how to get these up. We were going to get these all loaded up on a website, too. So you can guys get past episodes if you want and all that good stuff. So that's all in all in all in the works. Yeah. So back to that. So that's kind of a generic rule of thumb 401k up to the match, and Roth IRA or 7702 plan, we'll go into that another day, for the difference and some of that access. And then somebody wrote a message about what is an alternative to a 529. That's out of today's conversation that will absolutely have a Sondra Bella, absolutely, I will cover that next week. So come back next week, or just go to the feed after the show's over. And we'll go through and post it. So anyway, and we'll eventually get these to a website and Apple or Spotify or wherever I don't know, what was the question, Dominic that I was mostly talking about? I forgot already know. You were talking about the risk of pulling money from your business. And then we were obviously trying to we were talking about like, obviously that risk reduces a little bit as you as you make more money, it helps. I do want to answer one real quick question. This is this take a second. But some of you if you're into sales, a B E, or a maybe maybe that's it eight, one C? Okay, dude. All right. Well, you know, you're watching this live, little, little, little silly. So he asked a question about CRM. So going back to the sales question, here's the thing, I have an unpopular opinion about this one. I know for a fact you can run a million dollar a year business off an Excel spreadsheet or Google Sheets, whatever your preference is, that what I hate to see is a lot of businesses, they tend to buy CRMs too early because it feels cool. And they tend to get really expensive. So the more successful you are, they have sort of a like an inverse relationship with how much money you end up paying. And usually they can't so get into a CRM system, it doesn't do enough on its own. So then you have to buy an email system to go with it. And then you have to buy another system to do another piece of it. And then you're spending all your time on integrations and all that stuff. So I'm a huge fan of HubSpot for smaller businesses. I've got a couple of my clients So I'm not one big fan of that one. If you're for like, the smaller like, going by smaller, I mean like one to $5 million companies, you can run up probably a 30 $40 million company on it see that anything bad that you're probably going to look at Salesforce customization and other good ones close that IO. That's, that's a lot cheaper. But yeah, CRM, try to avoid that as long as you can, because it just tends to generate even more money issues. And that's not good for your overall profitability. I'd rather see you spend that money on other stuff. But it's not uncommon to see somebody like a solo person paying $1,000 a month for their CRM plus email plus everything, you know, plus plus plus stuff. And that do that adds up. As you know, Ron, and the you know, the tax write off for that there is a tax write off for that. But from what I understand that's not necessarily a good one from a banking perspective. So all right. Oh, we got an imposter on the account. Or like, man, Fu, you wrote in on douchebag, I got all these imposters. So I would love to know where they live, but then I would be in jail. So anyway, let's all right, let's moving right along. Dominique is next time? Why don't we start with kind of the idea of extracting money from the business just so we can get to some of the other questions that we had. And let's start talking about a few of those. Because the biggest one, the biggest one, I'll say this and again, this is the make more keep more podcast show whatever we want to call it with Sadly, no intro music yet. Although you know what, we didn't get the rights to rock you like a hurricane, I feel inspired.
Unknown Speaker 31:44
Anyway. So we have on the the there really is, as a business owner, if you guys are watching this are the side hustlers and executive, one of the biggest things that I see that we will talk about, as the show's progress, is really managing risk. And if you are self employed, or really, if you're employed by somebody else, you have a lot of risk already via your business or, you know, maybe a lack of job security in a new economy. And so we really want to talk about how do you manage that risk, because the number one thing that I see, after people paying too much in taxes, because they're just outsourcing it to someone that may not be really doing what they think they're doing. The other one is I've seen way too many people taking way too much risk. And I'll give you a perfect example. We have a client in here who is ready to quit her job at the end of the month. It was over a vaccine issue. She really didn't want it, they were forcing it on her and she ultimately decided she was going to get a vaccine and keep the job. But we were in a point where we were a week and a half away from her leave with potentially leaving her job. And her asset allocation mix was 85% risk 15%. And save. Now she has a she has a pension from a job and a couple of other things. But here's the problem. She's got close to leaving, potentially now we're going to extend it out about three more years. And her statement because of what's going on with the market right now just lost 20% of its value over the last few weeks. And that's a risk you should never change. And one of the words Good morning, Brennan, my kids on little Baron with sweet Stern, I'm wearing your Northeastern shirt and your honor B. So I hope you're feeling better. All right back to business. So anyway, so that is something to think about. And even what the misconception, Dominic is, is that as a younger person, you can take all that risk, because you have tons of time to make it back. And the answer is a loss as a loss as a loss. We want to minimize those and protect against them as much as possible. And because you never a colleague of mine once said it this way. You never recapture a loss, you only recoup it. Now it sounded real deep at the time, and I'm repeating it I've no idea what the hell he was actually talking about. Here's the way I mean it is those dollars are lost. And yes, you can eventually get them back. But we lose all that time in between. And we actually had a situation where in a we had a 10 year period where if you started the beginning of 2000 with $100,000 in your account, we had two big crashes in there in 10 years later with about 95,000 in your account was called the last decade. So just keep in mind that in future shows we will discuss risk and risk management But sound financial principles do not change. Yes, they may modify as as you age and get closer to retirement. But you should be paying attention to risk as a 25 year old as a 30 year old as a 35 year old, especially if you're hustling, because you always want to have some capital that you can lay your hands on, that isn't subject to the whims of the crypto real estate or stock market. Because when those markets drop, you want to have some money to pounce the, you know, APEN and buy into those markets and make a make a killing. That's what the wealthy are doing is they're always keeping some cash on the sidelines. And we'll talk about where do you park that cash? How do you do it in a tax free environment, and not get a point zero 1% rate of return and get an actual real return on that money. But access to capital, both as a business owner and not as a business owner is the number one thing and it's the number one thing that screws everybody, people go dump all their money into 401k.
Unknown Speaker 36:07
And then they turn around which they can't touch for 20 3040 years without massive taxes and penalties and having to leave their job. And then they turn around and put extra on their house because Dave Ramsey told them to because Whoa, you don't want to be dead. As you know, the debtor is slave to the lender. And, Robert, I'll get to that in a moment, by the way, Robert, dot mortgage, and if that is, in fact, your last name, that's a hell of a last name, I hope you are in the mortgage business. But they don't realize that, hey, if you're investing capital, and you can ultimately pay cash for your mortgage, you are not a slave to the lender the way that some people might make it. So anyway, we will jump on that more. I do want to get to some questions. But first, I do. Let me get Sir Robert mortgages question. If first of all, there are two types of insurance, if we're talking about term insurance, I absolutely. If you have a family or anybody who depends on you, or any obligations whatsoever, you should absolutely most people are heavily underinsured, heavily, heavily, heavily underinsured. And then also, it would shock a lot of people to realize that if it is set up properly, cash value life insurance has a lot of features that a lot of people would want. They just don't know about this. And somebody asks, So Adi sorry, koa Look, man, I don't know. We're calling it a show because this is in fact, our fourth episode. And right now three of those episodes to include this one. And after we're done, are on my Instagram page will eventually get over to real busy advisors on Dominic's page, I'm gonna actually strip them off and from my website. And I think now I might be biased here. I think it's a fantastic show all about making more. That's Dominic keeping more paying less taxes. That's me. So anyway, let's get to those questions, shall we? Yeah. So go back to one that was actually asked a little bit earlier with somebody asked, I'm sorry, I didn't catch you but asked about the question about like, How often should you meet with your financial advisor. And I think it's really interesting to me, and I'd love to hear your thoughts on this. But I'll tell you this, and you know this too, because, look, if it's, if it's, the more that we do, the more revenue we bring in, the better we do as a business. And personally, I feel like, the more that I want to talk to my financial advisor, like at this point, I mean, shoot, I called you are one of my financial advisors, obviously. And I called you when I was gonna buy a watch. Whoa, why
Unknown Speaker 38:53
would you cheat and you talk to other advisors? Well, being my advisor, yeah, so but you know, we're posting delete right now. I'm blocking you.
Unknown Speaker 39:08
There, you know that you look at that, when we bought a car, I'm calling my financial advisor to find out how to structure that like, Hey, should I do this through the business? Should I buy it personally, it's this many pounds was this count, you know, like, virtually every decent size purchase? At this point? I feel like I talked to I talked to my prior financial advisor or now I talked to you exclusively, obviously, whatever, whatever, you know, everything happens, you know, whether it's a Hey, should we refinance? Should we do this? Should we do any of those questions? And so I think the and I wish I had done that more, even when we weren't as successful, where you don't I mean, like if we'd had some of that advice I could have saved a lot of money for so you can't you can't underestimate I guess you can't underestimate how valuable your financial advisor is. They know what the heck they're talking about. It's a rough point. Are they a tax preparer? Or are they helping you play it? Yeah. And like I said, our firm does both because we got frustrated, like a lot of people with a wine on our manual. I have to talk to your tax guy on that. Well, I don't know, man, you should talk to your finance guy on that. And I'm like, why are you guys separate? We bring it in house. But I do want to answer one other statement on that. And someone asked me what province I'm from, by the way, they don't care about you, Dominic, but they care about me. We are both California natives. Dominic lives up in the LA area. I got out years ago, which is funny, because I'm from LA. And he's from San Diego, he moved up to LA and I moved down to San Diego County years ago. But one of the things that we always tell our clients and I put it in almost every newsletter I send out, I did not put it in the weekly newsletter this morning that I emailed out at like 715 this morning. And if you guys want on that, just send me a message with your email address. You get it once a week, you might occasionally get an update or two. But you don't get spam or anything weird like that. And we keep it we don't sell it to anybody. But my tagline Dominic for 30 years has been telling me what you're thinking of doing. Don't tell me what you just did. That applies on the tax side that applies on the finance side. So I would say couple times a year you guys should be going over stuff. But absolutely. Anytime you make a decision of any sort, you know buying a house refinancing a mortgage buying a car, you should be talking to your tax and or finance person, because that's how they help you make the best decisions. So all our clients coming from the car dealership? Did you have the freaking like you didn't know you were gonna go to the car dealership, you're calling me at seven o'clock at night?
Unknown Speaker 41:53
Like I'm in but give me five minutes. Let me run the math for you and your situation, we
Unknown Speaker 41:59
pull up your file on my phone real quickly. So I would stay tell them what you're thinking of doing. Do not tell them what you just did. I had a question for you real quickly. And then let's get to some of these other questions. What it Eve wanted to know, do you follow a 10 step sales process? Before you answer that, I will tell you in my firm, we actually have a 10 steps that we go through with every client, whether they're a tax client, and we're onboarding them, or a financial client, or both. We go through 10 steps by whoever said Have a good day. Thank you so much. So we have a process that we go through every time. So I'm going to count up, how would you answer that? Yeah, for sure you have that sales process? It varies a little bit by who I'm working with. And you know, designing it for a client or you know, whatever. It depends a little bit, but yeah, it's anywhere from six to nine steps is usually what I see. It's just it's really meant to keep you on track like clients to you know, what is that? What's the mike tyson quote, like, everybody has a plan until they get punched in the face. Like a was a Mike Tyson quote. Yeah, no. One. I mean, I think the classier version is, you know, no other battle plan stands the first test of you know, the enemy or whatever. But like, dominant on this show on this show, we don't do the class here version we wrote, we wrote, we just roll it roll. Yeah. So you have to follow it. Because what happens is as you get into a client, and if you don't have a process, then they dictate where you go. So you're in a prospect, they they punch you in the face, and now they've taken control of it. If you don't know how to come back from that, go back to your plan and keep on going down the process. So yeah, you have to have a process varies a little bit, we structure those. I create those for people all the time, just depending on their buyer persona and a bunch of that type stuff. So there's a lot of things go into it, but six months, that's pretty average. Yeah, obviously, some of these questions from Moscow to some of the questions. Alright, so see if you guys can stop me. Yeah, like it. They've forgotten their fire. Mike, you and your rocky both, right. So there were a couple of questions like they kind of had the same type of theme last week was if I started a business because one of the things just to recap, for those of you who are just joining in last week, one of the topics we talked about, on the make more Keith Moore Show, was this idea of the number one tax break you can have as owning a small business, right? And literally the number one in the code, and by the way, very closely to whoever asked the question, and this was not my quote. This is that sloths quote, he's the number one IRA expert in America. And his quote is the he says the number one breaking the tax code is the exemptions given to properly structured cash value life insurance and tellingly enough, the number one IRA expert in America, he's written books, he's got a PBS special has $0 in his IRA, that should tell you something he's like, Yeah, I'll show you guys my statements. And the newbies in the room always fall for it right? Whenever he's speaking Oh, look to see your statement. And he's like, Yeah, here it is. blank sheet of paper. I was zero in. And he's got his reasons. So anyway, carry on dominant. Yeah. So so that was one of the talks about and we were talking about, like, having to build this big, big old business we talked about, I ran an eBay business for a while, like, you know, picking up stuff at garage sales, you can write stuff off of that for stuff that you probably would have done, anyway. And it honestly, it's kind of fun. So if you really seriously want to, I mean, I've literally turned it into like with very little work, maybe, I don't know, three, four hours a week into a $5,000 a month business. He doesn't know how to do that hit me up, I'll happily share those strings attached and have just kept the sheriff's going. But with the questions, where does a business need to show a profit any year? And then somebody said, if I got a W two and start a business, but that business isn't profitable? Because I know personally, I'm kind of curious about this question that I've always understood that if you don't show profit after a while, then the IRS basically will shut you down. So do you. Is there a thing around that? Like, how long have you have to like, how do I have to show that?
Unknown Speaker 46:21
Okay, so those are great questions. So first of all, if you look at a tax return, and when you guys are done, your homework is to pull up a 1040 and a schedule one and a Schedule C. So the government in its infinite wisdom, whenever they go through to simplifying anything, it always ends up with more paperwork, right? So he tried to simplify the return and get it down to one page, and then it ended up back to two and then they added another schedule, it's in that, but basically, what happens is on the first line, your income from w two goes that a couple lines down any gains or losses from your side, hustle, small business, anything go there, those came from Schedule C over here, which is just a sole entrepreneur, profit and loss Ed slot, by the way, who for whoever asked who was the IRA expert just mentioned. So Schedule C is where you put all that in. Alright, then it goes to schedule one, just the number gets transferred over, then it gets transferred over the 1040. And again, that was supposedly going to simplify things. So what many accounts so first of all those losses, if there are losses going against your ordinary income. Now the reason I say losses like that is you can have a business. We're like Dominic was saying you're going to garage sales on the weekend, and you work for IBM, if they even are still around. And you've got a you've got a car that you're already making a payment on. And it's so fun that you're already paying for. And your house, you're already paying, if you live indoors, you're already paying for that, you can take those dollars, and now a portion of them becoming tax deduction to that business. So again, we're not even talking about going out and getting a separate office or anything that would get cost you more money. We're just talking about taking stuff that you're already spending money on that you don't get to deduct and moving it over to a return where you do get to deduct a portion of it, and saving that differential. And so anyway, so on that what many people quote, as law or fact, is the three out of five year rule. And what it's what they say it says, which is not what it actually says is you can't lose money more than three out of five years and the IRS will disallow your business. Well, let me give you a couple of businesses that we would all agree are real businesses that have lost money for way more than three out of five years. Number one airlines. A lot of airlines went years in that. And Amtrak and trucks lost money strength, I mean, interests less money for I don't think they've ever made money. And no one's going to argue with employees that a union they have these tracks, strange. And so what it is, is the average business 80% of businesses fail in the first three years, right? Particularly the restaurant business, it's a brutal business to get into marketing, a lot of things. So 80% of the businesses fail in the first three years of the ad that remain another 80 of them tend to fall falter in the remaining two years. So the IRS says, Look, basically for the first three years, we're expecting you to lose money. So we're not really going to pay a lot of attention and it doesn't matter if it's a small home base. As nurse, or you start a restaurant or a little store, or marketing agency, or whatever it is, and most businesses, there's a ramp up period. And so they're like, right, we will give you all of these deductions, likely your business is not going to make it. Now, if you do what Dominic talked about following up marketing, those sorts of things, your business is much more likely to survive, because people just get frustrated and give up and don't market. Don't follow up and do all those things, then they're like, hey, after three years, if we we know that your business, if you're surviving that launch should at some point be starting to make some money. So we just reserve the right to come in. And treat it like a hobby, if you're not showing us that you really are trying to make money. So basically, think of it this way, it's like three years to figure it out. And on that, beyond that point, we're going to start examining this. So let me give you a perfect example. Dominique, if you decide you want to be a photographer, and you write off two trips a year to Hawaii, and one trip a year to Europe, to take photos, right for your photography, business. Man, I love seeing people's handles as they come across to the
Unknown Speaker 51:17
jury that they're awesome on. Yeah. Unless it's one of my imposter accounts. And then I want to fly. Anyway, so it's all good. Love it the way you spell it. Anyway, back to business for a moment stopping distracted, Ron. So if you took all these trips to Europe, and you were writing them all off, and you've been doing this for five years, and you've never sold one of your photos, or done anything on it, then the IRS is gonna be like, Dominic, where's your website? And you're like, I don't have one. And you're there like, okay, where have you attempted to sell these? Well, I have it, the IRS is going to be right, that's a hobby, we're disallowing some of these deductions. But on the other hand, if you were turning around, and you were, here's my website, here's where I posted a ha made some sales. Some of these images are being sold on Getty Images, some of them are over here. Now all of a sudden, that's a totally legit, and the Iris was like, Alright, you're treating it like a business. So again, you can lose money much longer than that. Now, what I would say is, okay, wait. If we're really doing it as a tax write off with no intention of making money, let's just close that business down three or four years in, and let's just try something different. Because you might actually make some money on it at some point. And the irony is, when you're not trying to make money in the business, it's way easier to make money if you haven't been pressed against your head, and you're not going to make next month's rent if you don't sell something. So, so that's kind of the reality versus what a lot of accountants, parrot and look, let's face it, most accountants do not get into business because they like risk. They like everything neat and clean and don't like necessarily pushing the envelope. Our feeling is and the whole premise of the show is him and we want to talk about everything that you are entitled to. And if the IRS says you can take it, we're taking it that the IRS says you can take it or at least we think they say you can take it or we're likely going to take that to now in practice, we'll explain it like hey, man, there's no rulings on this. But this is why we think you can do it, you know. And of course, that's tax planning, which is totally different than just making stuff up, which is what gets people in trouble. So it sounds more like the issue would come is if you're showing like on the you know, income side you shows zero and then you want to take a bunch of write offs after year three, that's really kind of the issue. But if you show some decent income kind of common Sure. It's it's like Alright, you're taking a shot at it. Yeah. And even if they asked about it, there's nothing really to be worried about. Like, look, man, I'm trying if you guys got any suggestions of how to make to make this go profitable. You guys want to hire a photographer up here? Yeah, yeah, we actually had we stayed up at a winery like on their property in my buddy's trailer, and we ran into a guy who was a San Diego City police officer, super cool guy. And he had a photography business on the on the side and he's like, oh, yeah, I gotta stop writing it off. My accountant says I can't do it. And we started chatting over whiskey one night, and we're just like, Wait, why is he saying that? Because he was telling me like, oh, yeah, you can look me up. I'm on Getty Images. I'm here. I'm there. I'm here. I'm there. And when he would do is he would travel like, he would go up into Canada and fight bears. And literally fight bears. You know, like be hiding from them and then put like long exposure photos out. And his work was amazing. I mean, it was super talented. But he's like, yeah, it's not. It's not yet profitable. Like you can keep writing that off till the end of Time, because we can show that you this is not a hobby. This is serious. This is serious business. It's just you know, it's a hard way to make a living as a photographer. So what other questions do we have, by the way, for all the newbies joining, we love having you guys. We started about 55 minutes ago. And we talked about really all things money on the show. And we're technically calling it a show, even though we don't have the intro music yet, but we're gonna get some, but this will be posted on my Instagram, you can go back and watch it, but it's all things about making more money and keeping more money. So now we're just answering questions from last week, but or the week before, but what else? Do we have any other questions we need to get to today? So Monday, right. Yeah, this one, I actually don't know how to phrase it, because it seems a little no offense to whoever asked this, but I don't quite understand it. But it's something does a two member S Corp. LLC. I feel like they might have mixed that one up a little bit, have to pay a 16% employment tax. I
Unknown Speaker 56:03
think this was related to if you'd have to pay an employment tax if you're maybe possibly if you're sitting there paying your kids, because that was one of those ones last week, they kind of I think in people's minds is like put your kids on payroll right off 12 grand a year. seems to be some questions still flowing in about that. Okay, cool. So, let's go we're getting now we're getting a lot of questions. And I know we don't want to do this yet. Somebody helped me get some we need we need rocky like a hurricane or weekend consulting. We thought about Big East, you know, making problems but people mad at us. Anyway, okay, so let's fire through some of this. And, and Yvonne, if you can keep track of these questions, because we'll just start out with some of these questions next time. If Dominic says it's okay, because these are really good questions that I don't think, too, today. But let's go back with the one. When you go to pay your kids to avoid self employment tax on them. It either needs to be a contract, meaning not ongoing work, or you need to pay them from a sole proprietorship or a partnership where both parents are the owners. You don't want to pay them from a corporation, because a corporation is separate from you. So it is no longer considered the parents. And by the way, next week, I'm going to dive deep into S versus C Corp Gary gun show one. And so just come back next week, because it's a little longer conversation than we have time for now. And by the way, I totally hope Gary gun show one has huge biceps. And that's the gun show like ladies, welcome to the guy who said, That would be awesome. But if you are, in fact, a gun dealer or something like that, that's equally awesome. So anyway, but you want to pay them from the sole proprietorship or this the partnership. The real reason, and this is a big myth, we're going to pick up starting with this next time, you do not need a corporation for these write offs. Corporations write this one down, they're not for tax savings. They are not tax savings vehicles, they are protection vehicles, so you don't get sued. And they're designed to either multiply ownership if you have multiple owners, or they're designed to protect your personal assets from lawsuit, you can run a sole proprietorship up to a certain level with and take all the write offs that a corporation can take. There is no difference, the only real difference gets into a C corporation where you can start retaining earnings or moving them one year to the next, or an S corp, where you can take a portion in salary, and did not pay the self employment tax on it the amount above that, and we'll get into that next time. There might even be some charts and graphs, maybe a stickman involved. But I will tell you a hilarious story about a brand new client of mine that just started with us yesterday. And the stupid, stupid, stupid advice his account and that he was paying a small fortune to give and it was the dumbest shit I'd heard in a long time. And I'm like, he did not say that. He's like, Yes, you did. And I'm like, Oh my God, you're killing me. And he's like, Why do you think I'm here? And I'm like, fairpoint alright, but all this guy sucks at his job. So we will talk about that next time. Are there any other questions for today that we want to have? Or if not Next time, we're going to get into corporate structure, how to maximize the write offs and why you don't necessarily need a corporation to begin with. And I'll actually remember that because I'm gonna write it down. Nice. Yeah, I think there's only one I don't think we can answer this week. But we can lead off with this next week. It actually is a holdover from two weeks to do is we were talking about just how much money there is in this world that people can actually make. You know, like they that there is there seems to be like, we all want to be in a tax problem. Ultimately, like, right, we want to need I think for most small business owners, I even obviously working with you, you've spoken to my group before, my mastermind group and stuff, and they're like, oh, man, I'm gonna get to a point where I need Ron, well, that actually comes a lot sooner than you think it does. But there is this question of like, how do we know that there's plenty of money to go around? So
Unknown Speaker 1:00:33
that was a that was actually a holdover question I'd like to kind of dig into we can, we can even open up with that one that next week, just as like a quick thing, because I think there's kind of some cool things around just there is money to be had. Everyone on here has the opportunity. If you're in your spirit genius, doing the thing that you love, and really enjoying yourself, I don't see any reason why you can't have a business that's doing $500,000 a year. Now, some of you could do a million dollars a year. But percentage wise, that's pretty small group. But you could be making taking home a quarter million dollars a year with a decent idea, because there is that much money out there. And we Hey, Jake, we do need to chat about mindset. Because there is something thank you so much. When 22 We'd love having you on here, it would be really sad and lonely. Dominic composes just thought we'd have a great time yet very good show. But, but I think we've got a good show for next week, Dominic, where we will dive a little deeper into all of that. And really, rather than trying to cover some new ground, we'll go back over some of this, but there are ways that you can train your mind to really be more accepting. And a lot of us, a lot of us are like I had the greatest parents on the planet. I really did. My parents if you guys are old enough to know this reference, we're literally Warden June Cleaver, my dad loved my mom, they stayed married. You know, they, I remember, one fight they had growing up when I was in fifth grade, they didn't fight. My mom loved my dad and probably was, you know, and right up until he died. My mom still loves my dad, you know. But even with great parents, we all still get taught things that mess our minds up actually, in this economy. Think of the phrase hard earned money. Money doesn't grow on trees, we get that kind of pounded in our head, like, oh, this was hard earned money. I mean, one guy Dan Kennedy said this, a lot of us keep our money off hidden away. And we keep our bills out in plain sight, which constantly is like, Oh, I got these bills, or I got these bills. Dan's like, he literally is like, I put all these things around to remind me that I'm successful. And all these sorts of things. And I keep my bills like jammed in the bottom drawer. So my mind is constantly thinking abundance and all that so we can dive into that the weather. Any other quick questions that we had that we should get to? If not, we've got a great show lined up for next week for you guys. We're going to talk about abundance Corp. Dominant we'll come up with some you know, new thing for herpes and vultures, I'm sure to keep it classy. You know, you're not always that bad. I mean sometimes. And we're promising we're gonna get into watches I see the Monaco today. It's a nice nice representation. Well, good looking watch. I just got my my Kermit back from Rolex. Got it, sir. Service. We gotta get into the watch discussions on those things. No, I think we got a great show coming up. Next week, we will work on getting these up to a place. So hopefully, maybe even by next week, we'll have some announcements from you guys, and where you can find some of these past episodes and get some of that, but I think yeah, covering couple of some of those mindset things are huge. And yeah, we can answer that we can we can. We'll chat all that's actually can you actually do that, and one of us was the attorney of setting up the LLC for you guys. But I can give you a way if to show up next week, I'll tell you exactly how to do it for a few 100 bucks. And when when you can do it online and when you need to hire an attorney. So we'll get into that as well. So and then we'll talk about since you were going to talk about your dad to you know, in the lovely man that he was how much I loved him till he stole my dinner. Mm hmm. I still have my phone laying around. He was told that my dad my dad had Alzheimer's towards the end and he was a full on kleptomaniac. I would take him out to Starbucks, and I'd have to like, you know, take him out. And I could see him like, I'm somebody else's frappuccino. And he, he'd I'd be like, I'd see him looking and I'd kind of like run interference and I'd see him die for it. Like the other funny thing he always was really good, bad and he always loved kids. So Right. So when he began to lose his mind, he'd see a baby and he'd be like, I love children. I love to touch the children. Like no he doesn't like to drink Like he's crazy, they'd be like, you know, occasionally they're like, Oh, okay. And occasionally you'd be like, Oh, really? No, no, not like that. But like that for Dominic. Yeah, I think we're rocking man. Appreciate it. Thanks, everybody for joining on. We'll be back here at 8am Pacific next week doing the same thing and
Unknown Speaker 1:05:19
production meeting earlier in the week Monday yesterday to chat about what we're going to chat about. So we'll see you guys then rather than just showing up and letting it rip. So we will see you guys next week. 8pm Pacific Daylight Time right here, and we will look forward to seeing you guys. Take care y'all. Thanks, everybody.
Transcribed by https://otter.ai
