If you need the quick version this week, skip to the ‘Key Takeaways’ and ‘Six Bullet Summary’ below.
The news isn’t great. It never is. Inflation marches on, we’re entering a recession. Apple, Amazon and other tech giants are laying off thousands of people. This edition shares how I can feel the impact of a softening economy and how I plan to execute as a lifestyle brand amid this uncertainty.
FEELING THE ECONOMIC IMPACT
As I’ve chronicled before, my income streams revolve around my online education company and the signature product Emerge Supercharged, Gobundance affiliate income and Quantum Capital acquisitions.
There’s been a noticeable hesitation in the online education and mastermind space. I mentioned last month that we had a $300,000 month with Emerge Supercharged (previously Emerge and Ascend) because of scarcity in the product offering. We have some strategies to leverage where we can maintain that trajectory in 2023 despite the market.
Interestingly, Gobundance memberships have been tougher than ever to convert. In particular for those that are under $5,000,000 in net worth. The objections are ‘I’m going to do this in the new year’ which is code for ‘I don’t want to say that investing $10,000 in this scares me. There are 5 total member ambassadors and we have all seen the pull back for new membership. Signs of a tightening market.
For those that are in our Champion division ($5m+) where membership is $15,000 - those folks are coming in hot. They understand that being around a like minded community is more essential than ever now. When things are good, you just trip and fall into success. But when times get tough people that have massive financial success understand the investment in their network is the best one you can make.
Think of it like this - if the zombies were coming, you’re going to hunker down. I would open my wallet in a heartbeat to hunker down with the people that have the weapons and facilities that will massively increase my chances of thriving when the smoke clears.
THE INCOME IMPACT
For me, fewer new Gobundance members impacts my income. But thanks to Gobundance and the friends I’ve made, I have options to ‘thrive’ it out. Here’s what that looks like:
Quantum - Uptown Terrace just closed - $16,000 acquisition fee Quantum - 1451 Detroit closing 12/30 - $17,000 acquisition fee Michigan Home - $5000/month insurance renter in place (mortgage and expenses are $3000) Sale of Pinckney MI property - $285,000 distribution Gobundance sales - still $7-10k/month
In addition, I do not take income regularly from Emerge Supercharged. But I’ve been keeping a war chest on hand to market the hell out of it next year because I know we have changed lives. If I needed to, I can issue a distribution from the $300-$400k we have on hand currently. That money is better used for building the team and serving the members but I can tap a distribution to survive and continue to serve. That’s my life’s purpose.
AM I PUCKERING?
Going into a changing economy definitely presents challenges. As you can see above, I have options and ways in which I plan to thrive through it. Our Dominican expenses are around $10,000/month. I’m confident in our ability not only to cover expenses, but grow and get ready for the prosperity on the other side of an economic downturn.
Here are some ways I’m investing:
$50,000 into our Detroit Street property for my LP shares
$55,000 to hire a rock star funnel builder to structure the marketing side of my brand and businesses (I’ll split this with the Emerge Supercharged business)
$10-15,000 to join a mastermind group dedicated to growth as a content CEO
I plan to hold $150,000 or so in cash for later but I’m looking at the headwinds inherent in a declining economy to double down on adding value and standing out.
Quoting Stephen Anderson - “When everyone else zigs - zag”
Or my own spin - “When everyone else is puckering - don’t”
In the real estate sales space, there is some brilliant marketing going on to maintain the pace of home sales with a battle cry of ‘marry the property, date the rate’. This means get the property and refinance when rates are more favorable. It may seem like a crafty campaign, but it’s exactly in line with the two quotes above.
#1: Be Like the 1%
I noted above how those with the highest net worth are flocking to mastermind groups and communities of like-minded growth oriented people. They’re investing in a rock solid foundation underneath them by way of proximity. You can look at this time as not ideal to quit your job or start your business, but that’s 99% thinking. I’d look at this as the ideal time to prep for the prosperity you can create in your coming entrepreneurial career. NFL teams prepare by practicing with massive speakers piping in crowd noise, or outside in the worst weather to prepare them to thrive no matter the conditions. If you’re looking at money spent on your personal development and community then you’re zigging like the 99% - you’re seeing it as an expense. The 1% zag - they understand the value of the investment.
#2: Now’s the Time to Build Your Brand
I shared in a previous newsletter that I got scared when all the news of a bleak future broke so I totally get the fear. When I collected myself, it was clear to me that the best thing I can do is double down on value - because I was zigging - and lots of those that follow my story will zig if I do. This newsletter was born out of that. I decided it was time to be more transparent and vulnerable. Share the ups and downs. Leveraging social media or a blog or a podcast or a newsletter or any medium to build your business is essential today. If you don’t believe me, ask Penn Entertainment why they purchased Barstool Sports for $550 million. They understand the value of a content creation machine to market their business. Heck - think about the fact that Barstool, created by Dave Portnoy, is literally a man cave broadcast on social media just netted him more than half a billion dollars!! BUILD. YOUR. BRAND!!!!
#3: Diversify your Income
Focus is the absolute best way to scale and thrive. I struggle with focus. Hence the multiple streams of income I have actively. My business is to help people develop personally, create millionaires who trust me enough to invest with me. So my sources of income are integrated. Don’t overthink this to start. If you are just getting your business off the ground as a side hustle, then stay focused on it. But look at the hub of what you do or what you are and determine how you can develop income streams off of that hub with different spokes. It’s a tricky balance but in this case for me, it serves my ability to earn income in a recession outside the $400,000 ‘secure’ job I had previously.
CALL TO ACTION: Screenshot the key takeaway that landed for you and tag me in a story on Instagram so I can see what’s working for you.
SIX BULLET SUMMARY
(If you’re thinking ‘too long, didn’t read’ - TLDR -here’s a quick summary. You should check out the key takeaways too!)
There’s been a noticeable shift in spending behavior for most where paying $10,000 or any amount for education or a mastermind breeds heavy hesitation
The one sector that is actually accelerating in joining groups like Gobundance is the highest net worth individuals regardless of their income
My income drops in the mastermind area but is augmented by acquisition fees and sales of property
In addition, I’m reinvesting large sums into my brand as we head into economic uncertainty - “when everyone else zigs, zag” (Stephen Anderson)
If the apocalypse were upon us, I’d spend really good money to be surrounded by people with the weapons and facilities to get me to the other side - we HAVE to think about investments in ourselves like this as Mid-Life Entrepreneurs
Be like the 1%, build your brand, and diversify your income so you can stay on task with your W2 exit despite the recession
Tribe of Millionaires Podcast Episode
✯ Living a life of purpose is a throughline of this week’s newsletter. My episode with Jordan Harbinger speaks exactly to this point. He’s a podcast idol of mine that I’m sure you’ll derive value from. Check his podcast out as well - it’s killer!
A Podcast/Book I Love
✯ Phil Stutz wrote a book called ‘The Tools’. It was recommended to me by Sean Casey who played for the Reds, Tigers and Red Sox for years and it’s killer. He and I exchanged books and are holding each other accountable to reading it. Come to find out, Phil Stutz is being featured in a Netflix documentary with Jonah Hill - so this guy’s about to blow up!!
Lesson from Living Abroad
✯ Apparently traffic circles are backwards in the Caribbean - or at least in the Dominican Republic. When someone is entering a circle here, they just blast into it no problem - and those in the circle actually yield to them. Well not this gringo!! I seek to change this behavior one pissed off Dominican at a time!!
Shit I Find Funny ✯ A favorite past time of mine is to dip into the New England Patriots message board to read the incredibly disconnected reality those fans live in. Even better is after a loss! They absolutely LOSE their minds. This Mac Jones/Zappe whatever controversy, the listless offense they’re running, the inability to find their way and their place in the cellar of the AFC East is hilarious to me. Add in the meltdowns on their message boards and I do a full blown belly laugh like Santa Claus. You want a good time? Go back to the pre-season predictions of their fan base for this years record and count how many called ‘at LEAST 11 wins’ - ho ho ho!!!!!!
If you’re not already in Emerge and Ascend and want to be part of our Emerge Supercharged relaunch in 2023, join the waitlist here!! The objective is to get you unstuck, clear on vision and goals, and provide a concierge level experience to introduce you to your future self!