Interview with Ryan Moran, author of 1 Year To $1 Million

Interview with Ryan Moran, author of 1 Year To $1 Million

Jason Hartman talks about global topics including SpaceX. He chats with guest Ryan Moran about entreprenuership. Ryan goes into a 12 month plan on how to have a 7 figure buessiness. He focuses in on a couple of questions- “what is the product,” the focus needs to be, “who is the audience?” Then end with Ryan sharing his views on real estate investing and the economy, post-pandemic.

Jason Hartman 0:55
Welcome to Episode 1474 1474 and three Thank you so much for joining me today. Hey, based on yesterday’s episode, are you mad as hell? And you’re not gonna take it anymore? Did you go and yell out the window? That was the clip from the movie network. Which, by the way, if you need something to watch besides watching billions, which is really fascinating, do you watch billions you really do need to watch billions. It’s on Showtime and it’s good. But network is a great one. And as I always have said, You must listen to old music, watch old movies, watch old TV shows, even go surf around YouTube and watch old TV commercials. Without a context. It is very hard to understand present day and I say this especially to younger listeners, but also to older listeners. You know how soon We as people just kind of forget the past. And we’ve got to be reminded of how things used to be, because that gives us the perspective to deal with today. And then, as you know, I’m a huge fan of futurists. So there’s past, present and future, of course, on all three of those orientations. And I will talk to you many times on the show about futurist predictions, whether they be john Nesbitt, faith popcorn, Alvin and Heidi Toffler, or Neil Howe or whomever else. So there’s a bunch of them out there. And for many years, I was a member of the world future society, kind of find out what happened to them what’s going on with them. And I was watching a really interesting video the other day, and I should share this on the show with Neil deGrasse Tyson. He’s a, I guess you could call him a futurist but he’s mostly a space guy. A Space Cadet like, I will When I was a kid and I used to love following the space program, and by the way, congratulations to the human race. And SpaceX, of course, just a couple of days ago, put two astronauts into space from US soil. The first time we’ve seen a commercial venture do that. And by the way, you know, Neil deGrasse, Tyson was also talking about another distinction. He and most people in the space community, they don’t really consider orbit into space, or I guess I guess they consider it into space. Maybe that’s the distinction. They don’t consider it really leaving Earth. You leave Earth when you go to way out in space and you leave orbit and you go to another heavenly body. No, no Taylor Swift. You know, I’m over Taylor Swift. I gotta tell ya, Taylor Swift is overrated. My crush on her has ended. I’m done. We are never ever getting back together. That’s one of our famous songs case you didn’t get the reference there.

Jason Hartman 4:08
Anyway, enough of that tangent. So he was talking about how leaving earth or leaving Earth orbit is really going in outer space. That’s true space exploration. But it’s pretty amazing anyway, and what does this mean for real estate investors? Well, you know, one of our markets is the Space Coast. And I tell you, I think that’s gonna be a big deal. And another one is Huntsville. That’s where the space program is. Those are two major hubs of activity for the commercial space program in the government space program because they’re intertwined. But it’s pretty cool to see really, commercial exploration really coming into its own. And this is a very exciting, with all the stuff that’s going on in the world. It is still an amazing time to be alive. It’s an amazing time to be alive. Remember My quote and say it often because you got to keep perspective on things definitely. And there’s a lot of terrible stuff going on in the world for sure. But in the overall span of time, it’s just not even a blip on the radar, really. And when you look out into space, you realize how small and insignificant we are our planet is our problems are they’re just not that significant in the big picture. So keep things in perspective, perspective is very important. And perspective really comes into the question compared to what right compared to what, that’s always the question. Well, before we get into any philosophical tangents here, I thought I’d answer some questions on our webinars. And so thank you for all of you who attended our 1031 exchange tax deferral webinar. Of course, we have the most tax favored asset class in America income property, the most tax favored asset class in America. And we had some questions I didn’t get to yet on the show. And I do want to get to some of those. So let’s see if I can kind of answer them. Some are technical things, saying about this screen shifting from bright to shaded. And you know what? It does that to me to the webinar platform is kind of weird. I was trying to figure out what it is, is that when I’m moving my mouse that it does that? Is it when I’m clicking away from the window on the browser where the webinar is playing? Or does it depend on which speaker is speaking? Or is it just the browser I’m using? You know, I noticed that a lot of things act differently on different browsers. So next time you join one of our webinars, and by the way, our subscription is coming up for our webinar platform here in a couple of months and we’re looking at other options in fact, We already subscribed to one new option, we’ll probably do our next webinar in the new platform, see if you like it better. So, but they’re always technical things. And that’s why we do replays of them, so everybody can get the information. So that is that. Okay, so other than technical problems? Oh, here’s one question. And this comes from Robert begin. So could you please explain the boot? Well, I think you mean, it’s just called boot, not the boot. But I love the formality on a 1031 tax deferred exchange. And I have to make my disclaimer here. I am not an expert. We had a guest expert on the webinar. And of course, we provided her contact information to all of you, you can reach out to her directly. Of course, he may want to talk to your tax advisor, your CPA about this, because this stuff is complicated, folks, legal and tax issues are super complicated. You I am not a professional in either of those categories. So my laypersons explanation is this for what it’s worth, when you do a 1031 tax deferred exchange, and you don’t fulfill all of your obligation to purchase something of equal or greater value, then you have a leftover portion like say you buy down and you sell a property that’s $300,000. Maybe it’s a four Plex or something, then you buy a property. It’s only when I say $300,000, you buy properties, it’s only $200,000. Now there are closing costs and stuff. So it’s a little more complicated, but that leftover portion that you have leftover, that hundred thousand dollars in my very simplistic example, is taxable. You don’t get to cover that in defer that into The 1031 tax deferred exchange, and that is boot that is boot. You know, I think that came from, like the old days of maybe pirates or cowboys or something like that. I don’t know. But boot is that leftover taxable portion. Okay. So that answers that question. This was not a webinar question, but this was just a general question from William seeker. I hope I’m pronouncing that right. Are you familiar with Peter z Han work like his work? I think it’s a book called The disunited nations. In chapter 14 and 15. He specifically talks about America’s stance on how we have the best geography and trade networks to sustain the country. Plus he talks about the aircraft carriers, like you’ve mentioned, by the way, I wanted to correct myself, I believe, on a prior episode, when I was talking about America. Vast dominance and why the dollar the almighty dollar will continue to be the reserve currency for many years to come. And all these people calling for its failure are absolutely out of their mind. Now, they won’t be out of their mind forever. They’re just out of their mind. For a long time, I believe I said that the US had 18 aircraft carriers, and I believe the correct number is 11. But hey, what’s the difference? It’s still more than anybody else. And it’s not just the number of aircraft carriers, but it’s the capabilities and massive size and power of those aircraft carriers. And the US has far away the most submarines and the most everything except actual warheads. I believe Russia actually has more warheads than the US more nuclear warheads. But hey, you got to deliver those things and there’s a lot more to it than just You know, numbers. And I talked to you before in a past episode of how when I was in Russia on one of my Russia trips, I visited what they call Star City, which is like their version of NASA. It’s where all the astronauts trained. It’s where they had, you know, the I saw this huge centrifuge like a human centrifuge. I guess that’s what they call it, right? Where you were you trained to be in massive amounts of, of G forces of gravity forces, right. And when all around Star City saw where they train the astronauts and everything, and this was back, maybe 15 years ago, I was there on a trip with young entrepreneurs organization now called entrepreneurs, organization, eo. We were so amazed everybody in the group was totally amazed at how primitive I mean, incredibly primitive. Everything was there. We just couldn’t believe it. How primitive all the equipment was, how you’d walk along The facility and there would be just holes in the floor. I kid you not. I mean, I took pictures, a lot of the stuff I had to find those pictures and post them on the website or something. It was absolutely amazing. So it’s not just about the numbers, it’s about the capabilities. Okay. Anyway, William goes on to say I just wanted to comment that I totally agree with you that these gold bugs, and people that think America system will collapse are absolutely ridiculous. If you haven’t read it, I highly suggest his book. So the book is disunited nations. And you know that author’s name does ring a bell in the thousands of interviews I’ve done on the show. I think I may have interviewed him Peter z on. I’m not sure but I’ll check it out. And we’ll see if we can get him on the show. Again, maybe for the second time. I may have interviewed him already. All right, so today we have part two of Ryan Moran and we are going to talk about making money and business success. And I think you will like this part one was yesterday. But before we get to that, these people that talk in these sort of absolutist terms, they’re just really missing the boat here. They make very inaccurate statements constantly. For example, we’ve got an interview coming up. That was a fascinating interview. And we’ll probably have this one next week with an adviser to some of the biggest hedge funds in the world. And we talked for quite a while he was a great guest. But like so many people, and I’m not faulting him, you know, I do it too. We all do it. It’s just human nature. He’s spoken like absolute terms sometimes and said, well, there really hasn’t been any inflation. And, you know, that’s just not true. And I stopped him and corrected him. And you know, he agreed. There has been some inflation, there’s no question about it. There. In fact, inflation has been pretty considerable. But in food prices, the inflation is massive. It’s actually at a 50 year high. I reported that last week to you. And here is an article from just yesterday. Today, it’s an AP story Associated Press us food prices see historic jump and are likely to stay high. This AP article says as if trips to the grocery store weren’t nerve racking a lot enough, US shoppers lately have seen the cost of meat, eggs even potatoes soar as Coronavirus, disrupted processing plants and distribution networks. And the article goes on to say that food prices were already very high. Now even higher. This is kind of interesting APR retail prices for boneless pork chops, which by the way, you shouldn’t be eating any pork chops anyway folks because they’re really bad for you. But pork chops in ham were a nearly 6% higher than in March. That’s a one month difference folks. And hamburger and sirloin steak 4% higher. You shouldn’t eat that stuff either, at least not very often, because it’s also very bad for you The US Department of Agriculture reported, oh, they didn’t report that it was bad for you. They reported that it went up by 4% in a month. The price for whole fresh chickens was up more than 12% in a month. 12% in a month. That’s absolutely crazy. But here’s the thing. Here’s what happens with this stuff. You might be thinking, well, Jason, you know, I appreciate all your guidance and stuff. But look after this whole virus thing kind of fades as a as a will, you know, there’s a vaccine, whatever, all of those disruptions, they’ll end and the prices will go back down. Don’t be so sure that don’t be so sure that here’s why. The way things go in life or in business, is that whenever someone, someone meaning a company or an industry or an individual realizes they can charge X amount for something and get away with it. They rarely just lower their prices that just doesn’t much happen. The only thing that incentivizes them to lower their prices ever, is when a competitor in a free marketplace comes along and starts eating their lunch as the saying goes, then they realize they got to get more competitive. But this is a sign of long term inflationary pressure. It’s not just a short term thing. At least that’s what I say. So we will see how it all goes. Alright, without further ado, let’s get to part two of Ryan Of course, always reach out if you need us one 800 Hartman, if you’re calling from within the United States, or worldwide on the Internet at Jason Hartman calm and by the way, be sure you look at our properties section. We got a whole lot of new properties on the website. So check that out at Jason hartman.com slash properties and here is part two with Ryan Ram.

Jason Hartman 17:02
Okay, so how does someone do it? I mean, we’ve seen a few of these brands, but they seem to be very well funded when they’re not doing the Amazon thing. A few that I recognize the quip toothbrush, for example, not on Amazon, at least last I checked, and the socks I can’t think of the name of the company. But, you know, Tim Ferriss we had dinner with was promoting me undies for a while where they sent a new boxer shorts every month and

Ryan Moran 17:30
and these are outside of that. Is that what you’re talking about? When you say? Are you talking about getting your product into stores or with big retailers? Or what goes on outside the Amazon world if you weren’t that? Good? Good question. So my target market of the people that I serve are entrepreneurs who are starting their first seven figure venture that’s my core target audience, and I’m probably the best in the world and helping an entrepreneurial minded person. Break seven figures sometimes go to eight figures. That’s my real wheelhouse. But what you’re bringing up is just an extension of that which is building a brand, a brand that has processes to acquire customers. And that can be a blend of Amazon and other advertising. Or it can be focused on one channel like Shopify. But here’s kind of my three stage approach that I give to most entrepreneurs, the entrepreneur who is sitting at their cubicle or at home saying it’s time for me to get a piece of the multi trillion dollar pie that is ecommerce, I say we’re going to break this into a 12 month plan that has three phases. Those three stages are each four months, the first four months, I call the grind, and it is simply four months of making hard decisions that most people don’t want to make, like, who is my customer? What products Am I going to sell? What’s the first product I’m going to sell to them? How am I going to launch this? How am I going to fund this? the boring stuff that no one sees except to you and making those decisions and get them out of the way so we got through that as fast as possible with the goal of how One sale. That’s it, we got four months to take one sale of one product. This second four month sprint, which I call the growth is about taking that one product and getting it to 25 sales a day. Why? Because four products at 25. Sales a day is 100 sales a day. And then a $30 price point that’s a million dollar business. It’s like 1.1 ish million dollars. So that is the second four month phase is getting that to 25 sales a day. And you do that through basic advertising by getting good reviews, by creating connections with your customers by building an audience. And by doing the hard stuff that most people don’t want to do for about four months. That’s what it takes it 25 sales a day. And then that unlocks the third stage which is the gold which is when we repeat that process over three more products. And now we’ve got the road paved so we can go a lot faster. We now have a customer base. We have systems. We have repeat customers, we know the advertising game So within 12 months, we can afford products selling 25 sales a day, which is 100 sales a day. And at a $30 price point is a million dollar business. That’s how I help entrepreneurs cross that first million. And from there we can add in other things like podcast sponsorships, or doing the me undies home delivery program like there are other times when like a monthly

Jason Hartman 20:21
program, correct? Yes,

Ryan Moran 20:23
but most people are getting into this game or not well funded, e commerce disruptive companies. They’re small one and two person shows that are building a business because they want to live life on their own terms, or they have an idea that they’re excited to bring to market. So they can go this Silicon Valley route of raising a bunch of money and doing large customer acquisition systems. Or they can do it in this way, which allows them to do it with very little capital, get up to speed very quickly hit a million dollar business, prove that they have a good idea. And then they’re off to the races.

Jason Hartman 20:56
You know, that’s fantastic. You really just clarify that And let me give you a testimonial. When you say you’re probably the best in the world, that may well be 100% accurate, because I know a lot of your students personally, and I’ve seen them build incredible businesses and have big exits too. So you know, yes, more than $10 million exits. So really, really truly, truly incredible. Thank you. So Ryan, the the magic question probably everybody’s thinking right now or at least I am. What’s the product? You know? If you want to start a commerce business, not an e commerce business, a commerce business, every business is a commerce business. What What should you sell? What’s the magic widget? What How do you know what to pick? There’s a plethora, there’s a sea of products. And, you know, we’re all of us, I’m sure have these kind of regrets, and I certainly do. I remember I was hosting when I lived in Arizona. I lived a block from ASU and I was hosting a birthday party for this cute girl. Okay, and I remember I had a bunch of people over for her birthday. And I pulled out what is now called a selfie stick. And everybody thought, what is that I had my old iPhone, you know, much, many versions ago, this was maybe 2012 ish. And I put it up there and held it up and took everybody’s picture in the room, you know, with a view of it. I was in a high rise behind us and everything. And everybody’s like, what is that thing? You know, they’re like, they never saw one of those before. I couldn’t believe it. And now, selfie sticks are everywhere. Right?

Ryan Moran 22:37
So what’s the magic product? You know, we’ve all got a product or a Gizmo or gadget we’ve all thought of right that we six months later we saw it’s everywhere. Right? All of the money is in Jesus bobbleheads.

Jason Hartman 22:51
But Jesus bobblehead folks, that’s good. Okay, so

Ryan Moran 22:53
here’s how

Jason Hartman 22:55
you just had one of those handy Bring it up during our religious

Ryan Moran 23:01
life this Jason Yeah. So so the here’s the answer to your question. That’s the most popular question I’m asked over and over again, what do I sell? Yeah, right. The way you answer that question is by answering a different question, which is, who do I sell to? Who is my customer? Who do I serve? Who am I in business to help? If you ask the WHO THE what I sell becomes a very clear and obvious. So if we say that our target market is new dads, which I am for the second time, right, I have a six month old. Yep. Phil was like, I can tell you that when you become a dad, strollers become the most fascinating thing on the planet. You’ve never

Jason Hartman 23:43
you’ve never been engineering of strollers. Yeah.

Ryan Moran 23:46
Before you have a kid and strollers are the annoying thing that other people push around for some unknown reason. Yeah. And then you know, you’re like, oh, man, that one has a really interesting story. turn radius and right yeah, and this this one, okay.

Jason Hartman 24:02
I want one of those. It’s like a status symbol, right?

Ryan Moran 24:05
Yeah. What brand is that? Yeah. Right. So because I started a new journey, which was becoming a father, I spent some money on some things on strollers and on clothes and unchanging stations and on bass nets and on this machine called the snoo, which rocks fill up to sleep at the exact rate, Easter Island, no, and bottles and baby food and all kinds of things. So I’m on this new journey. I’m making new buying behaviors for things that I didn’t previously know that I needed because I didn’t write. And so if you know exactly who it is, and the new journey that they are starting, think about serving a new real estate investor, Jason, you can have information and you have podcasts and you’ve got ready to go houses and you might have an investment funds and opportunities and relationships. These are all things that people need when they’re at the beginning. of that journey of becoming a real estate investor or a new entrepreneur, they need training, and they might buy a podcast mic, and they might buy information on YouTube and they buy all kinds of things. They buy masterminds, and they buy. So when you get somebody who is starting a new journey of their life, and you make that your customer, then all of the products that become available to you are where you start. And that way you’re not going is it selfie sticks? Or is it Jesus bobbleheads? Or is it crystals? Or is it? No? Who is the person? And then what is that person already buy? Can you name five products that person already buys and if you can’t pick a different market, but what most people will discover is that they’re looking for themselves or they’re looking for someone that they know, I have a student who his market is new moms and nursing moms, and his market is really his wife and all her friends. So he just has to be really curious about what his wife and her peers are going through. Through, and that says data for what the markets doing and what products he’s going to release. So it’s almost always someone you know, or someone or someone that you are, and then what you already buy and narrowing in from there. Okay, so that makes perfect sense. Now, that leads to the question of how do we pick that customer? How do we know which customers the best? You know, do you want to focus on millennials, teenagers, Gen Z, baby boomers, you know, how do you know you know, new parents? What? How do you know what avatar is it just what you’re most interested in like you can you can make a fortune off any of these markets are a lecture you can make a fortune off any of these markets. And what I’ve discovered is you can you can have two brands that sell the exact same product, but two different people and then both be wildly successful. So the the way that here’s a good story. I have a I have a student who sells his first product is an immunity supplement that he’s selling on Amazon. Well, Jason There are 1000 immunity supplement companies. Yeah, there’s there’s actually now REITs, right? They’re popping up everywhere. You can buy one and it’ll look exactly like the other and most of us don’t know the difference between the two. However, his market is American truck drivers. That is his direct brand. Why? Because he is a truck driver. And because he’s a truck driver, he can sit there and tell you we’re touching things all day long. We’re meeting strangers all day long. We’re cooped up. We’re sitting all day long. We don’t see the sun. But our immune systems are different, because we’re not we’re just under different circumstances than the rest of the world. So he started an immunity brand and a supplement brand, specifically for truck drivers. Why? Because he can speak exactly to them. He knows their pain points. He knows what they’re going through. He knows what they’re struggling with. He knows what they want. He knows what language they use. He knows what branding they use. And because he’s going to bring this product to market. The truck driver is going to be primed and ready for that brand that is made specifically for them. And he’s able to serve them in a way that he couldn’t have served them if he had just made a generic supplement company. Even though the products are exactly the same. The truck driver is much more likely to take one step closer to the health that they desire most because the branding is specific exactly to them. So it is not about do I start a supplement company or do I target millennials, it is more I want to sell supplements, who is the rabid group of people that I can help that I have access to an example of this is our buddy Mike Dillard. I was on his podcast and we were kind of riffing about what physical product brand he should start. And I was like, Mike, you’ve got maybe 100,000 or a million people who follow you. My guess is that the thing that you struggle with most is how do I come up with an idea that serves all hundred thousand or million people? And he said That’s exactly right. I said that’s the wrong question. The question is, are there 500 people in my list of a million that would absolutely love something that I brought in. And that gave him the idea right away because he had a story about overcoming a specific health challenge that only a small part of his audience resonated with but when they resonate with it, they really resonated with it. That’s when you know that you’ve got a multimillion dollar winner. Okay, so

Jason Hartman 29:22
narrow the focus. That’s one element of that. So Ryan narrowing the focus is key. And I think that’s a very, very good point. So is the idea to find a specific market like the truck driver example, but a big enough market at the same time, there any distinctions there we should think about in 2014, Dave Asprey brought mold free coffee to the marketplace.

Ryan Moran 29:50
Yeah, talk about there was no market for mold free coffee, but he did have an audience at the time that was interested in biohacking. Now had Dave Asprey wanted to be a Coffee Company, his second product would have been a dark roast, right? It wasn’t it was MCT oil, then bulletproof bars and now you can go to a $15,000 retreat to use his biohacking gear, right. So no it is it is not about finding a market that is big enough. It is about finding a group of people that are on a journey that goes deep enough. And if you’re just committed to serving that group of people along the journey, more people enter in the journey, you gather more market share, you come out with more and more products. That is the key to hitting seven and eight figures. Okay, good.

Jason Hartman 30:39
So it’s kind of you know, like you can also maybe think about this like the long tail. The concept of the long tail is a niche market, but that niche market can grow and it starts picking up other early adopters from outside of itself. Now, probably not a lot of people become truck drivers suddenly in the prior example, but But you know, maybe they Well, you know what? It’s like airborne, right? That teacher invented that airborne stuff. And, you know, I don’t know if that was meant for like people flying, or if it was just that diseases airborne, right? Or I’m not quite sure of that message. But it seemed to resonate that, that expanded way beyond. But that was a schoolteacher. Like she could have said, Hey, this is a supplement for school teachers to not get sick from all those kids touching everything. Right? That’s so I don’t know if you know, this, just and that’s exactly what she said.

Ryan Moran 31:31
Yeah. Okay. So that’s, that’s exactly how it started. It was a supplement for teachers. And because it was so specific to teachers, she told that story over and over and over again, it got a little bit of a raving fan base. Right. And then she got on Oprah. Yeah. And so what people will say is, oh, yeah, she got on Oprah. Yeah, right, which is true. But the reason she got on Oprah was because she developed a brand that was specific to teachers. And when teacher day came up on Oprah, the teacher entrepreneur, got featured on Oprah and then the thing went crazy. It’s kind of like, you know what, Clif Bars are sure, Jason I have them.

Jason Hartman 32:11
Yeah. So do you have any carbs though?

Ryan Moran 32:13
Now, but do you also know what Luna bars are? Luna and Luna bars? Alright, so have you ever eaten a Luna bar? Yes. What’s wrong with you?

Jason Hartman 32:21
I don’t I don’t think they’re very good. I mean, I have a well Jason.

Ryan Moran 32:25
The Luna bar is for women.

Jason Hartman 32:28
Oh, I didn’t know that.

Ryan Moran 32:30
They do. So Clif Bar and Luna bar are owned by the same company, okay? Clif Bar was made to be the one for the male audience.

Jason Hartman 32:41
I think I think of rock climbing. When I think of Clif Bar,

Ryan Moran 32:44
yes. I mean, on the packaging, right? You’ve got the rock climber on the packaging. It’s written in the masculine he, he tells the story The founder is is a male, it’s made for male endurance athletes. But that’s how it came to market then it gets another Adoption to where a bunch of anybody? Yeah, we went to bars exactly the same. It’s actually it’s actually the Clif Bar for women. Yeah. And if you read the packaging, look at the branding. It’s made for women. But then it reached certain adoption where you’re like, yeah, these are good. Yeah. I like I like them. I just

Jason Hartman 33:19
sort of look at the sugar content, and the protein content. Whatever I choose a bar, right, well,

Ryan Moran 33:27
I’m with I’m with you. We used to go to vitamin Shoppe or GNC or shop online specifically for bodybuilding bars or back then it was power bars, right roll. Thank goodness we’ve been we’ve moved on Yeah, but but now that market has now grown to the point where now there are specific, macro friendly, low sugar high protein bars coming to market wested that they just sold for a billion dollars. And I’ve created a new category which opened up the high fiber category. And so that’s how brand adoption happens. Is it is brand serving the evolution and the adoption of new desires by a very specific group of people?

Jason Hartman 34:07
Yeah, really fascinating. Ryan, I want to ask you about one more whole separate topic area, and maybe talk about that before we go. But on the business side of it that we’re talking about now, anything you want to tell our audience I mean, obviously, there’s so much to this, we, you know, we went through the three stage process over the course of 12 months, you can do that to build a million dollar business, and some really interesting stuff on how brands work. I gained some good understanding on that. But anything else you want to share with our audience? Anything.

Ryan Moran 34:39
The other thing that I hope entrepreneurs pick up from this is that this process builds businesses that can be scaled and sold in the internet marketing world. It is mostly about fast cash, fancy cars and not real businesses. It’s about how much we can extract from the short term process.

Jason Hartman 34:56
Let me give all our listeners an equation for the internet marketing world. You’ve probably heard this one. But whenever somebody tells you how much money they’re making, and they brag about it, just divide by eight.

Ryan Moran 35:08
Okay, divide by eight.

Ryan Moran 35:10
Okay? Yeah. But a physical products brand is something that can be scaled and sold, because right now we’re in this changing of the guard, where all of the big brands like the Kellogg’s of the world, are buying up these small brands that have a presence online, because that’s what they need in order to shore up their share prices, and shore up new products that serve their existing customer bases. They can’t innovate as fast as new nimble entrepreneurs can. So they’re buying up the little brands, even the brands that just do a few million dollars a year are being bought at high valuations, because big brands are after the person that they target more than they’re after the product,

Jason Hartman 35:54
huh? Very interesting. Very interesting point. Okay, good stuff. The other topic I want to cover With you quickly as you and I both met because you like real estate investing, and just thought I’d get your thoughts on where we are now where we’re going, I have two months ago. And you know, the timeframe we’re in is pandemic era folks. So just if you listen to this podcast much later, so you have a point of reference, but two months ago, before anybody was saying it, I was saying that there is going to be a mass migration to low density living. I think that is huge. It’s a tidal wave. And a lot of people are going to be very rich, and some will end up very poor because of that migration trend. And there’s going to be changes in lifestyles, roommates, assisted living, multi generational housing, I’ve identified a whole bunch of these, these trends, but you know, I just thought I’d get your take on real estate investing, you know, where do you think the economy is going, you’re, you know, you talk about the economy all the time. It’s one of my favorite topics. Probably I’m single economists Aren’t you know, like super romantically attractive

Ryan Moran 37:10
though in his Peter Schiff as a sex symbol on their vision board, no, but

Jason Hartman 37:15
he is married and his wife is is good looking do matter. Yeah.

Ryan Moran 37:20
So I where I think we are in the cycle is I think we are being forced out of cities. And by force I mean we’re gonna voluntarily choose to not have around a bunch of human beings right. And I think the micro community is going to be like the neighborhood is going to matter a lot more and the neighborhood looks a lot like a suburb, or it looks like more land more space. I think we’re now going to see like here in Texas, it costs more to buy a small condo downtown in the hotbed than it does to buy a 25 acre ranch 20 minutes outside of town right? Watch how quickly that gonna flip. Yeah, I agree with you. Yeah. So I think that that’s the trend that more space, bigger homes and or not maybe not even bigger homes but like more neighborhood is going to matter a lot more than being close to the close to the action. Yeah. And is distributed now you can have anything delivered, right? The

Jason Hartman 38:20
action has flattened The World Is Flat I’m not talking about like flattening the curve I’m talking about the Thomas Friedman concept of the world is flat. Now, the action is flattening because everybody is now finally adopted to you know, teleconferencing video meetings. Yeah, all that kind of stuff. And it’s really great, which actually, we’ll get to your book tour in just a moment. But so I think you’re right about that. What about the economy in general, though, for investors? You know, I’ve sort of likened it to this dichotomy. One part is, I think we’re going to wake up to a much smaller economy. I am not positive on the economy. I’m negative I’m bearish, okay, I think the economy is going to get smaller, I think people are going to look toward a simpler life, and the economy is going to shrink. That’s just my opinion, I could be wrong. But on the other side of that, you can make money investing, if you’re investing with the trend, right. One of them we talked about is the trend from, you know, high to lower density. And there are many others. But you know, your thoughts on the economy in general?

Ryan Moran 39:27
Well, I don’t think we’re going back. You know, it, I think there’s like this demand or this desire to go back to normal, whatever that means. Right. And I don’t think we’re going back I do think we’re going forward, and I think forward is going to be better than the past. In terms of the size of the economy, I think long term, it’s going to be larger, but there’s going to be this this adjustment period, where we are really folding forward the things that we like into the future. For example, this shocked me My gym opened this week and I don’t really want to go Yeah, right. Like I would rather have I’d rather workout in my home gym. And I would rather get that out. So it’s awesome, right? Yeah. So my spending is actually going to be I’m going to spend more on a home gym than I am on going to the gym. But that has other repercussions like that means a lot of gyms are going to suffer a lot. But that attention is now going to flow to any company that is providing home gyms or people like you and me.

Jason Hartman 40:33
So so you need you need an extra room for your home gym. Now, the extra space you need room for your home office. And if there’s a couple with two kids, that’s four people and if the kids are studying at home now they’re not going to school and both members of the couple are working at home. You now need four home offices. So I think the homes are going to get bigger certainly than the condo in New York City or the condo, downtown. Austin, and so there is going to be more demand for space and the home is the center of the universe in the 90s. Ryan, you were way too young and you’re always teasing me about how old am I right? But in the 90s there was this futurist who was really popular back then faith popcorn, and she wrote about this concept called cocooning. cocooning. Okay, it was like our key buzzword back then. And the big thing moving us toward cocooning meaning staying at home was here was the technology ready for this? Home Theater systems? theater systems, you know, why do people need to go to the movies? Why do they need to go to a Broadway play? We’ve got these big screen TVs now that we didn’t used to have and these great sound systems so you can just enjoy this at home and you can cocoon and now we’ve got the internet the home office, the home gym, you know everything. But

Ryan Moran 41:51
But yeah, I think we’re talking about the businesses. I think people that sell products for the home, whether they be home gym, and we saw what happened. Right after this, all the home gym equipment is sold out, right. But anything that is for the home, the home is the center of the universe now, right? That’s right. And so that’s one of those just next trends that if you’re serving, you’ll do great. And the outside economist might see that as a reduction of economic activity, but it’s just the puck moving. It’s just moving the way that it always has been. And our mistake would be trying to keep things the way that they are. And rather than allowing things to just evolve, right, it’s creative destruction,

Jason Hartman 42:33
isn’t it? Yes. Yeah. Yeah. Good, good stuff. So anything more about the economy investing anything else you want to say? Let’s wrap

Ryan Moran 42:40
it up? I think that we might see an accelerated rate of old established businesses going under. Oh, yeah. I think all that has happened during quarantine is a we’ve expedited what was naturally going to happen, right. And so getting ahead of the next trend is becoming more More and more important because I think the lifecycle of businesses may be shorter. Because the purpose of business is to come in help someone along their journey move and help them move on down the line. And we’re moving faster. We’re moving through those journeys a lot faster.

Jason Hartman 43:16
Yeah, we’ve brought the future closer to us very much, right? Yeah. So So what was going to happen in five, seven years is already happened. Now. It’s happening now, the adoption of teleconferencing, which you know, this technology is not new. It’s been around for 1520 years easily. But now everybody’s actually using it and realizing they can work at home even if they thought they couldn’t. So that’s good. And you know, Ryan, that’s also I think you alluded to this before, but it’s going to make a lot of businesses much more efficient, very efficiency benefit is going to enrich us because the future has been brought forward. So fast. Yeah. What a lot of

Ryan Moran 43:57
things that I don’t think we do give enough credit to when we’re looking at economics is the benefit of lower prices. Economists fear this right? Now, yeah, they see that as the wrong direction, but it’s really the natural order of things. So for example, had we not had we not intervened at all with any stimulus plan in this pandemic, then you would have had a natural downward pressure on everything prices would have come through the floor. And we do see that and so we see it at the gas pump, for example, right, but we would have seen it in wages which people would decry, but standard of livings would actually go up, right, because things would be so cheap housing prices would come down, stocks would come down prices, everything would come way down. But we’ve been inflating our way through it to keep prices at a certain level. I don’t think we give enough credit to the benefit of lower prices, which is what stimulates demand, and allows us to go after the things and the goods and services that we want. Want faster.

Jason Hartman 45:01
So a lot of your students use Chinese manufacturers. And that supply chain has been disrupted, obviously. And now, even though the supply chain is coming back online, there’s been some demand destruction, there’s been some supply destruction, and that’s supply demand shock is what that’s called. But a lot of people are looking to bring to onshore those supply chains and and diversify them at least do some of its moving to Africa or other low cost places, but some of its moving back to the US. Is that going to cause inflation or will increase the efficiencies offset that

Ryan Moran 45:37
I don’t think productivity increases inflation? I think government policy increases inflation monetary so then yeah, right. I mean, we say Federal Reserve is independent of the government is really the fourth branch of government right so i just i, i consider if I reserve a branch of government sure that’s government policy in my mind, right? But I don’t think productivity ever increases inflation intervention does. So we might see inflation happen. But I don’t think it’s going to because we’re bringing production on shore. Good. Good stuff. Ryan, give out your website and wrap it up with any closing thoughts. My Websites super hard to remember. It’s called capitalism.com. And my podcast is also called capitalism.com. And I wrote a book, it’s really good, you should get it. It’s called 12 months to 1 million. It’s how to pick a winning product, build a real business and become a seven figure entrepreneur.

Jason Hartman 46:33
Fantastic. That’s great. You know, I think the only person who can’t remember the title of your website is Bernie Sanders.

Ryan Moran 46:40
I thought you’re gonna say Joe Biden.

Jason Hartman 46:41
Joe Biden can’t remember anything. Well, I got

Ryan Moran 46:45
to that capital, the capital. Ah, you know the website.

Jason Hartman 46:50
There you go. It’s funny to see him trying to stream from home isn’t it? It’s pretty hilarious. guy. I do too.

Ryan Moran 47:00
Good stuff. Ryan Moran, thanks so much for joining us. It’s been awesome talking to you, as always, always a blast hanging out with you. Thanks so much for having me.

Jason Hartman 47:07
Hey, I want to say thank you to all of you who attended our webinar on Sunday, where we talked about asset defense protection, estate planning, and the tax reduction. And a lot of you gave us some fantastic feedback on it. And we are running that webinar again tomorrow, Wednesday. And to register for it. Just go to bi T dot L y slash protect me today. Bi t.li slash protect me today. And it runs at two different times tomorrow, Wednesday. So again, to register for that webinar tomorrow on asset defense bi T dot L y slash protect me today. See you there Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.

Ryan Moran 0:02
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 0:55
Welcome to Episode 1474 1474 and three Thank you so much for joining me today. Hey, based on yesterday’s episode, are you mad as hell? And you’re not gonna take it anymore? Did you go and yell out the window? That was the clip from the movie network. Which, by the way, if you need something to watch besides watching billions, which is really fascinating, do you watch billions you really do need to watch billions. It’s on Showtime and it’s good. But network is a great one. And as I always have said, You must listen to old music, watch old movies, watch old TV shows, even go surf around YouTube and watch old TV commercials. Without a context. It is very hard to understand present day and I say this especially to younger listeners, but also to older listeners. You know how soon We as people just kind of forget the past. And we’ve got to be reminded of how things used to be, because that gives us the perspective to deal with today. And then, as you know, I’m a huge fan of futurists. So there’s past, present and future, of course, on all three of those orientations. And I will talk to you many times on the show about futurist predictions, whether they be john Nesbitt, faith popcorn, Alvin and Heidi Toffler, or Neil Howe or whomever else. So there’s a bunch of them out there. And for many years, I was a member of the world future society, kind of find out what happened to them what’s going on with them. And I was watching a really interesting video the other day, and I should share this on the show with Neil deGrasse Tyson. He’s a, I guess you could call him a futurist but he’s mostly a space guy. A Space Cadet like, I will When I was a kid and I used to love following the space program, and by the way, congratulations to the human race. And SpaceX, of course, just a couple of days ago, put two astronauts into space from US soil. The first time we’ve seen a commercial venture do that. And by the way, you know, Neil deGrasse, Tyson was also talking about another distinction. He and most people in the space community, they don’t really consider orbit into space, or I guess I guess they consider it into space. Maybe that’s the distinction. They don’t consider it really leaving Earth. You leave Earth when you go to way out in space and you leave orbit and you go to another heavenly body. No, no Taylor Swift. You know, I’m over Taylor Swift. I gotta tell ya, Taylor Swift is overrated. My crush on her has ended. I’m done. We are never ever getting back together. That’s one of our famous songs case you didn’t get the reference there.

Jason Hartman 4:08
Anyway, enough of that tangent. So he was talking about how leaving earth or leaving Earth orbit is really going in outer space. That’s true space exploration. But it’s pretty amazing anyway, and what does this mean for real estate investors? Well, you know, one of our markets is the Space Coast. And I tell you, I think that’s gonna be a big deal. And another one is Huntsville. That’s where the space program is. Those are two major hubs of activity for the commercial space program in the government space program because they’re intertwined. But it’s pretty cool to see really, commercial exploration really coming into its own. And this is a very exciting, with all the stuff that’s going on in the world. It is still an amazing time to be alive. It’s an amazing time to be alive. Remember My quote and say it often because you got to keep perspective on things definitely. And there’s a lot of terrible stuff going on in the world for sure. But in the overall span of time, it’s just not even a blip on the radar, really. And when you look out into space, you realize how small and insignificant we are our planet is our problems are they’re just not that significant in the big picture. So keep things in perspective, perspective is very important. And perspective really comes into the question compared to what right compared to what, that’s always the question. Well, before we get into any philosophical tangents here, I thought I’d answer some questions on our webinars. And so thank you for all of you who attended our 1031 exchange tax deferral webinar. Of course, we have the most tax favored asset class in America income property, the most tax favored asset class in America. And we had some questions I didn’t get to yet on the show. And I do want to get to some of those. So let’s see if I can kind of answer them. Some are technical things, saying about this screen shifting from bright to shaded. And you know what? It does that to me to the webinar platform is kind of weird. I was trying to figure out what it is, is that when I’m moving my mouse that it does that? Is it when I’m clicking away from the window on the browser where the webinar is playing? Or does it depend on which speaker is speaking? Or is it just the browser I’m using? You know, I noticed that a lot of things act differently on different browsers. So next time you join one of our webinars, and by the way, our subscription is coming up for our webinar platform here in a couple of months and we’re looking at other options in fact, We already subscribed to one new option, we’ll probably do our next webinar in the new platform, see if you like it better. So, but they’re always technical things. And that’s why we do replays of them, so everybody can get the information. So that is that. Okay, so other than technical problems? Oh, here’s one question. And this comes from Robert begin. So could you please explain the boot? Well, I think you mean, it’s just called boot, not the boot. But I love the formality on a 1031 tax deferred exchange. And I have to make my disclaimer here. I am not an expert. We had a guest expert on the webinar. And of course, we provided her contact information to all of you, you can reach out to her directly. Of course, he may want to talk to your tax advisor, your CPA about this, because this stuff is complicated, folks, legal and tax issues are super complicated. You I am not a professional in either of those categories. So my laypersons explanation is this for what it’s worth, when you do a 1031 tax deferred exchange, and you don’t fulfill all of your obligation to purchase something of equal or greater value, then you have a leftover portion like say you buy down and you sell a property that’s $300,000. Maybe it’s a four Plex or something, then you buy a property. It’s only when I say $300,000, you buy properties, it’s only $200,000. Now there are closing costs and stuff. So it’s a little more complicated, but that leftover portion that you have leftover, that hundred thousand dollars in my very simplistic example, is taxable. You don’t get to cover that in defer that into The 1031 tax deferred exchange, and that is boot that is boot. You know, I think that came from, like the old days of maybe pirates or cowboys or something like that. I don’t know. But boot is that leftover taxable portion. Okay. So that answers that question. This was not a webinar question, but this was just a general question from William seeker. I hope I’m pronouncing that right. Are you familiar with Peter z Han work like his work? I think it’s a book called The disunited nations. In chapter 14 and 15. He specifically talks about America’s stance on how we have the best geography and trade networks to sustain the country. Plus he talks about the aircraft carriers, like you’ve mentioned, by the way, I wanted to correct myself, I believe, on a prior episode, when I was talking about America. Vast dominance and why the dollar the almighty dollar will continue to be the reserve currency for many years to come. And all these people calling for its failure are absolutely out of their mind. Now, they won’t be out of their mind forever. They’re just out of their mind. For a long time, I believe I said that the US had 18 aircraft carriers, and I believe the correct number is 11. But hey, what’s the difference? It’s still more than anybody else. And it’s not just the number of aircraft carriers, but it’s the capabilities and massive size and power of those aircraft carriers. And the US has far away the most submarines and the most everything except actual warheads. I believe Russia actually has more warheads than the US more nuclear warheads. But hey, you got to deliver those things and there’s a lot more to it than just You know, numbers. And I talked to you before in a past episode of how when I was in Russia on one of my Russia trips, I visited what they call Star City, which is like their version of NASA. It’s where all the astronauts trained. It’s where they had, you know, the I saw this huge centrifuge like a human centrifuge. I guess that’s what they call it, right? Where you were you trained to be in massive amounts of, of G forces of gravity forces, right. And when all around Star City saw where they train the astronauts and everything, and this was back, maybe 15 years ago, I was there on a trip with young entrepreneurs organization now called entrepreneurs, organization, eo. We were so amazed everybody in the group was totally amazed at how primitive I mean, incredibly primitive. Everything was there. We just couldn’t believe it. How primitive all the equipment was, how you’d walk along The facility and there would be just holes in the floor. I kid you not. I mean, I took pictures, a lot of the stuff I had to find those pictures and post them on the website or something. It was absolutely amazing. So it’s not just about the numbers, it’s about the capabilities. Okay. Anyway, William goes on to say I just wanted to comment that I totally agree with you that these gold bugs, and people that think America system will collapse are absolutely ridiculous. If you haven’t read it, I highly suggest his book. So the book is disunited nations. And you know that author’s name does ring a bell in the thousands of interviews I’ve done on the show. I think I may have interviewed him Peter z on. I’m not sure but I’ll check it out. And we’ll see if we can get him on the show. Again, maybe for the second time. I may have interviewed him already. All right, so today we have part two of Ryan Moran and we are going to talk about making money and business success. And I think you will like this part one was yesterday. But before we get to that, these people that talk in these sort of absolutist terms, they’re just really missing the boat here. They make very inaccurate statements constantly. For example, we’ve got an interview coming up. That was a fascinating interview. And we’ll probably have this one next week with an adviser to some of the biggest hedge funds in the world. And we talked for quite a while he was a great guest. But like so many people, and I’m not faulting him, you know, I do it too. We all do it. It’s just human nature. He’s spoken like absolute terms sometimes and said, well, there really hasn’t been any inflation. And, you know, that’s just not true. And I stopped him and corrected him. And you know, he agreed. There has been some inflation, there’s no question about it. There. In fact, inflation has been pretty considerable. But in food prices, the inflation is massive. It’s actually at a 50 year high. I reported that last week to you. And here is an article from just yesterday. Today, it’s an AP story Associated Press us food prices see historic jump and are likely to stay high. This AP article says as if trips to the grocery store weren’t nerve racking a lot enough, US shoppers lately have seen the cost of meat, eggs even potatoes soar as Coronavirus, disrupted processing plants and distribution networks. And the article goes on to say that food prices were already very high. Now even higher. This is kind of interesting APR retail prices for boneless pork chops, which by the way, you shouldn’t be eating any pork chops anyway folks because they’re really bad for you. But pork chops in ham were a nearly 6% higher than in March. That’s a one month difference folks. And hamburger and sirloin steak 4% higher. You shouldn’t eat that stuff either, at least not very often, because it’s also very bad for you The US Department of Agriculture reported, oh, they didn’t report that it was bad for you. They reported that it went up by 4% in a month. The price for whole fresh chickens was up more than 12% in a month. 12% in a month. That’s absolutely crazy. But here’s the thing. Here’s what happens with this stuff. You might be thinking, well, Jason, you know, I appreciate all your guidance and stuff. But look after this whole virus thing kind of fades as a as a will, you know, there’s a vaccine, whatever, all of those disruptions, they’ll end and the prices will go back down. Don’t be so sure that don’t be so sure that here’s why. The way things go in life or in business, is that whenever someone, someone meaning a company or an industry or an individual realizes they can charge X amount for something and get away with it. They rarely just lower their prices that just doesn’t much happen. The only thing that incentivizes them to lower their prices ever, is when a competitor in a free marketplace comes along and starts eating their lunch as the saying goes, then they realize they got to get more competitive. But this is a sign of long term inflationary pressure. It’s not just a short term thing. At least that’s what I say. So we will see how it all goes. Alright, without further ado, let’s get to part two of Ryan Of course, always reach out if you need us one 800 Hartman, if you’re calling from within the United States, or worldwide on the Internet at Jason Hartman calm and by the way, be sure you look at our properties section. We got a whole lot of new properties on the website. So check that out at Jason hartman.com slash properties and here is part two with Ryan Ram.

Jason Hartman 17:02
Okay, so how does someone do it? I mean, we’ve seen a few of these brands, but they seem to be very well funded when they’re not doing the Amazon thing. A few that I recognize the quip toothbrush, for example, not on Amazon, at least last I checked, and the socks I can’t think of the name of the company. But, you know, Tim Ferriss we had dinner with was promoting me undies for a while where they sent a new boxer shorts every month and

Ryan Moran 17:30
and these are outside of that. Is that what you’re talking about? When you say? Are you talking about getting your product into stores or with big retailers? Or what goes on outside the Amazon world if you weren’t that? Good? Good question. So my target market of the people that I serve are entrepreneurs who are starting their first seven figure venture that’s my core target audience, and I’m probably the best in the world and helping an entrepreneurial minded person. Break seven figures sometimes go to eight figures. That’s my real wheelhouse. But what you’re bringing up is just an extension of that which is building a brand, a brand that has processes to acquire customers. And that can be a blend of Amazon and other advertising. Or it can be focused on one channel like Shopify. But here’s kind of my three stage approach that I give to most entrepreneurs, the entrepreneur who is sitting at their cubicle or at home saying it’s time for me to get a piece of the multi trillion dollar pie that is ecommerce, I say we’re going to break this into a 12 month plan that has three phases. Those three stages are each four months, the first four months, I call the grind, and it is simply four months of making hard decisions that most people don’t want to make, like, who is my customer? What products Am I going to sell? What’s the first product I’m going to sell to them? How am I going to launch this? How am I going to fund this? the boring stuff that no one sees except to you and making those decisions and get them out of the way so we got through that as fast as possible with the goal of how One sale. That’s it, we got four months to take one sale of one product. This second four month sprint, which I call the growth is about taking that one product and getting it to 25 sales a day. Why? Because four products at 25. Sales a day is 100 sales a day. And then a $30 price point that’s a million dollar business. It’s like 1.1 ish million dollars. So that is the second four month phase is getting that to 25 sales a day. And you do that through basic advertising by getting good reviews, by creating connections with your customers by building an audience. And by doing the hard stuff that most people don’t want to do for about four months. That’s what it takes it 25 sales a day. And then that unlocks the third stage which is the gold which is when we repeat that process over three more products. And now we’ve got the road paved so we can go a lot faster. We now have a customer base. We have systems. We have repeat customers, we know the advertising game So within 12 months, we can afford products selling 25 sales a day, which is 100 sales a day. And at a $30 price point is a million dollar business. That’s how I help entrepreneurs cross that first million. And from there we can add in other things like podcast sponsorships, or doing the me undies home delivery program like there are other times when like a monthly

Jason Hartman 20:21
program, correct? Yes,

Ryan Moran 20:23
but most people are getting into this game or not well funded, e commerce disruptive companies. They’re small one and two person shows that are building a business because they want to live life on their own terms, or they have an idea that they’re excited to bring to market. So they can go this Silicon Valley route of raising a bunch of money and doing large customer acquisition systems. Or they can do it in this way, which allows them to do it with very little capital, get up to speed very quickly hit a million dollar business, prove that they have a good idea. And then they’re off to the races.

Jason Hartman 20:56
You know, that’s fantastic. You really just clarify that And let me give you a testimonial. When you say you’re probably the best in the world, that may well be 100% accurate, because I know a lot of your students personally, and I’ve seen them build incredible businesses and have big exits too. So you know, yes, more than $10 million exits. So really, really truly, truly incredible. Thank you. So Ryan, the the magic question probably everybody’s thinking right now or at least I am. What’s the product? You know? If you want to start a commerce business, not an e commerce business, a commerce business, every business is a commerce business. What What should you sell? What’s the magic widget? What How do you know what to pick? There’s a plethora, there’s a sea of products. And, you know, we’re all of us, I’m sure have these kind of regrets, and I certainly do. I remember I was hosting when I lived in Arizona. I lived a block from ASU and I was hosting a birthday party for this cute girl. Okay, and I remember I had a bunch of people over for her birthday. And I pulled out what is now called a selfie stick. And everybody thought, what is that I had my old iPhone, you know, much, many versions ago, this was maybe 2012 ish. And I put it up there and held it up and took everybody’s picture in the room, you know, with a view of it. I was in a high rise behind us and everything. And everybody’s like, what is that thing? You know, they’re like, they never saw one of those before. I couldn’t believe it. And now, selfie sticks are everywhere. Right?

Ryan Moran 22:37
So what’s the magic product? You know, we’ve all got a product or a Gizmo or gadget we’ve all thought of right that we six months later we saw it’s everywhere. Right? All of the money is in Jesus bobbleheads.

Jason Hartman 22:51
But Jesus bobblehead folks, that’s good. Okay, so

Ryan Moran 22:53
here’s how

Jason Hartman 22:55
you just had one of those handy Bring it up during our religious

Ryan Moran 23:01
life this Jason Yeah. So so the here’s the answer to your question. That’s the most popular question I’m asked over and over again, what do I sell? Yeah, right. The way you answer that question is by answering a different question, which is, who do I sell to? Who is my customer? Who do I serve? Who am I in business to help? If you ask the WHO THE what I sell becomes a very clear and obvious. So if we say that our target market is new dads, which I am for the second time, right, I have a six month old. Yep. Phil was like, I can tell you that when you become a dad, strollers become the most fascinating thing on the planet. You’ve never

Jason Hartman 23:43
you’ve never been engineering of strollers. Yeah.

Ryan Moran 23:46
Before you have a kid and strollers are the annoying thing that other people push around for some unknown reason. Yeah. And then you know, you’re like, oh, man, that one has a really interesting story. turn radius and right yeah, and this this one, okay.

Jason Hartman 24:02
I want one of those. It’s like a status symbol, right?

Ryan Moran 24:05
Yeah. What brand is that? Yeah. Right. So because I started a new journey, which was becoming a father, I spent some money on some things on strollers and on clothes and unchanging stations and on bass nets and on this machine called the snoo, which rocks fill up to sleep at the exact rate, Easter Island, no, and bottles and baby food and all kinds of things. So I’m on this new journey. I’m making new buying behaviors for things that I didn’t previously know that I needed because I didn’t write. And so if you know exactly who it is, and the new journey that they are starting, think about serving a new real estate investor, Jason, you can have information and you have podcasts and you’ve got ready to go houses and you might have an investment funds and opportunities and relationships. These are all things that people need when they’re at the beginning. of that journey of becoming a real estate investor or a new entrepreneur, they need training, and they might buy a podcast mic, and they might buy information on YouTube and they buy all kinds of things. They buy masterminds, and they buy. So when you get somebody who is starting a new journey of their life, and you make that your customer, then all of the products that become available to you are where you start. And that way you’re not going is it selfie sticks? Or is it Jesus bobbleheads? Or is it crystals? Or is it? No? Who is the person? And then what is that person already buy? Can you name five products that person already buys and if you can’t pick a different market, but what most people will discover is that they’re looking for themselves or they’re looking for someone that they know, I have a student who his market is new moms and nursing moms, and his market is really his wife and all her friends. So he just has to be really curious about what his wife and her peers are going through. Through, and that says data for what the markets doing and what products he’s going to release. So it’s almost always someone you know, or someone or someone that you are, and then what you already buy and narrowing in from there. Okay, so that makes perfect sense. Now, that leads to the question of how do we pick that customer? How do we know which customers the best? You know, do you want to focus on millennials, teenagers, Gen Z, baby boomers, you know, how do you know you know, new parents? What? How do you know what avatar is it just what you’re most interested in like you can you can make a fortune off any of these markets are a lecture you can make a fortune off any of these markets. And what I’ve discovered is you can you can have two brands that sell the exact same product, but two different people and then both be wildly successful. So the the way that here’s a good story. I have a I have a student who sells his first product is an immunity supplement that he’s selling on Amazon. Well, Jason There are 1000 immunity supplement companies. Yeah, there’s there’s actually now REITs, right? They’re popping up everywhere. You can buy one and it’ll look exactly like the other and most of us don’t know the difference between the two. However, his market is American truck drivers. That is his direct brand. Why? Because he is a truck driver. And because he’s a truck driver, he can sit there and tell you we’re touching things all day long. We’re meeting strangers all day long. We’re cooped up. We’re sitting all day long. We don’t see the sun. But our immune systems are different, because we’re not we’re just under different circumstances than the rest of the world. So he started an immunity brand and a supplement brand, specifically for truck drivers. Why? Because he can speak exactly to them. He knows their pain points. He knows what they’re going through. He knows what they’re struggling with. He knows what they want. He knows what language they use. He knows what branding they use. And because he’s going to bring this product to market. The truck driver is going to be primed and ready for that brand that is made specifically for them. And he’s able to serve them in a way that he couldn’t have served them if he had just made a generic supplement company. Even though the products are exactly the same. The truck driver is much more likely to take one step closer to the health that they desire most because the branding is specific exactly to them. So it is not about do I start a supplement company or do I target millennials, it is more I want to sell supplements, who is the rabid group of people that I can help that I have access to an example of this is our buddy Mike Dillard. I was on his podcast and we were kind of riffing about what physical product brand he should start. And I was like, Mike, you’ve got maybe 100,000 or a million people who follow you. My guess is that the thing that you struggle with most is how do I come up with an idea that serves all hundred thousand or million people? And he said That’s exactly right. I said that’s the wrong question. The question is, are there 500 people in my list of a million that would absolutely love something that I brought in. And that gave him the idea right away because he had a story about overcoming a specific health challenge that only a small part of his audience resonated with but when they resonate with it, they really resonated with it. That’s when you know that you’ve got a multimillion dollar winner. Okay, so

Jason Hartman 29:22
narrow the focus. That’s one element of that. So Ryan narrowing the focus is key. And I think that’s a very, very good point. So is the idea to find a specific market like the truck driver example, but a big enough market at the same time, there any distinctions there we should think about in 2014, Dave Asprey brought mold free coffee to the marketplace.

Ryan Moran 29:50
Yeah, talk about there was no market for mold free coffee, but he did have an audience at the time that was interested in biohacking. Now had Dave Asprey wanted to be a Coffee Company, his second product would have been a dark roast, right? It wasn’t it was MCT oil, then bulletproof bars and now you can go to a $15,000 retreat to use his biohacking gear, right. So no it is it is not about finding a market that is big enough. It is about finding a group of people that are on a journey that goes deep enough. And if you’re just committed to serving that group of people along the journey, more people enter in the journey, you gather more market share, you come out with more and more products. That is the key to hitting seven and eight figures. Okay, good.

Jason Hartman 30:39
So it’s kind of you know, like you can also maybe think about this like the long tail. The concept of the long tail is a niche market, but that niche market can grow and it starts picking up other early adopters from outside of itself. Now, probably not a lot of people become truck drivers suddenly in the prior example, but But you know, maybe they Well, you know what? It’s like airborne, right? That teacher invented that airborne stuff. And, you know, I don’t know if that was meant for like people flying, or if it was just that diseases airborne, right? Or I’m not quite sure of that message. But it seemed to resonate that, that expanded way beyond. But that was a schoolteacher. Like she could have said, Hey, this is a supplement for school teachers to not get sick from all those kids touching everything. Right? That’s so I don’t know if you know, this, just and that’s exactly what she said.

Ryan Moran 31:31
Yeah. Okay. So that’s, that’s exactly how it started. It was a supplement for teachers. And because it was so specific to teachers, she told that story over and over and over again, it got a little bit of a raving fan base. Right. And then she got on Oprah. Yeah. And so what people will say is, oh, yeah, she got on Oprah. Yeah, right, which is true. But the reason she got on Oprah was because she developed a brand that was specific to teachers. And when teacher day came up on Oprah, the teacher entrepreneur, got featured on Oprah and then the thing went crazy. It’s kind of like, you know what, Clif Bars are sure, Jason I have them.

Jason Hartman 32:11
Yeah. So do you have any carbs though?

Ryan Moran 32:13
Now, but do you also know what Luna bars are? Luna and Luna bars? Alright, so have you ever eaten a Luna bar? Yes. What’s wrong with you?

Jason Hartman 32:21
I don’t I don’t think they’re very good. I mean, I have a well Jason.

Ryan Moran 32:25
The Luna bar is for women.

Jason Hartman 32:28
Oh, I didn’t know that.

Ryan Moran 32:30
They do. So Clif Bar and Luna bar are owned by the same company, okay? Clif Bar was made to be the one for the male audience.

Jason Hartman 32:41
I think I think of rock climbing. When I think of Clif Bar,

Ryan Moran 32:44
yes. I mean, on the packaging, right? You’ve got the rock climber on the packaging. It’s written in the masculine he, he tells the story The founder is is a male, it’s made for male endurance athletes. But that’s how it came to market then it gets another Adoption to where a bunch of anybody? Yeah, we went to bars exactly the same. It’s actually it’s actually the Clif Bar for women. Yeah. And if you read the packaging, look at the branding. It’s made for women. But then it reached certain adoption where you’re like, yeah, these are good. Yeah. I like I like them. I just

Jason Hartman 33:19
sort of look at the sugar content, and the protein content. Whatever I choose a bar, right, well,

Ryan Moran 33:27
I’m with I’m with you. We used to go to vitamin Shoppe or GNC or shop online specifically for bodybuilding bars or back then it was power bars, right roll. Thank goodness we’ve been we’ve moved on Yeah, but but now that market has now grown to the point where now there are specific, macro friendly, low sugar high protein bars coming to market wested that they just sold for a billion dollars. And I’ve created a new category which opened up the high fiber category. And so that’s how brand adoption happens. Is it is brand serving the evolution and the adoption of new desires by a very specific group of people?

Jason Hartman 34:07
Yeah, really fascinating. Ryan, I want to ask you about one more whole separate topic area, and maybe talk about that before we go. But on the business side of it that we’re talking about now, anything you want to tell our audience I mean, obviously, there’s so much to this, we, you know, we went through the three stage process over the course of 12 months, you can do that to build a million dollar business, and some really interesting stuff on how brands work. I gained some good understanding on that. But anything else you want to share with our audience? Anything.

Ryan Moran 34:39
The other thing that I hope entrepreneurs pick up from this is that this process builds businesses that can be scaled and sold in the internet marketing world. It is mostly about fast cash, fancy cars and not real businesses. It’s about how much we can extract from the short term process.

Jason Hartman 34:56
Let me give all our listeners an equation for the internet marketing world. You’ve probably heard this one. But whenever somebody tells you how much money they’re making, and they brag about it, just divide by eight.

Ryan Moran 35:08
Okay, divide by eight.

Ryan Moran 35:10
Okay? Yeah. But a physical products brand is something that can be scaled and sold, because right now we’re in this changing of the guard, where all of the big brands like the Kellogg’s of the world, are buying up these small brands that have a presence online, because that’s what they need in order to shore up their share prices, and shore up new products that serve their existing customer bases. They can’t innovate as fast as new nimble entrepreneurs can. So they’re buying up the little brands, even the brands that just do a few million dollars a year are being bought at high valuations, because big brands are after the person that they target more than they’re after the product,

Jason Hartman 35:54
huh? Very interesting. Very interesting point. Okay, good stuff. The other topic I want to cover With you quickly as you and I both met because you like real estate investing, and just thought I’d get your thoughts on where we are now where we’re going, I have two months ago. And you know, the timeframe we’re in is pandemic era folks. So just if you listen to this podcast much later, so you have a point of reference, but two months ago, before anybody was saying it, I was saying that there is going to be a mass migration to low density living. I think that is huge. It’s a tidal wave. And a lot of people are going to be very rich, and some will end up very poor because of that migration trend. And there’s going to be changes in lifestyles, roommates, assisted living, multi generational housing, I’ve identified a whole bunch of these, these trends, but you know, I just thought I’d get your take on real estate investing, you know, where do you think the economy is going, you’re, you know, you talk about the economy all the time. It’s one of my favorite topics. Probably I’m single economists Aren’t you know, like super romantically attractive

Ryan Moran 37:10
though in his Peter Schiff as a sex symbol on their vision board, no, but

Jason Hartman 37:15
he is married and his wife is is good looking do matter. Yeah.

Ryan Moran 37:20
So I where I think we are in the cycle is I think we are being forced out of cities. And by force I mean we’re gonna voluntarily choose to not have around a bunch of human beings right. And I think the micro community is going to be like the neighborhood is going to matter a lot more and the neighborhood looks a lot like a suburb, or it looks like more land more space. I think we’re now going to see like here in Texas, it costs more to buy a small condo downtown in the hotbed than it does to buy a 25 acre ranch 20 minutes outside of town right? Watch how quickly that gonna flip. Yeah, I agree with you. Yeah. So I think that that’s the trend that more space, bigger homes and or not maybe not even bigger homes but like more neighborhood is going to matter a lot more than being close to the close to the action. Yeah. And is distributed now you can have anything delivered, right? The

Jason Hartman 38:20
action has flattened The World Is Flat I’m not talking about like flattening the curve I’m talking about the Thomas Friedman concept of the world is flat. Now, the action is flattening because everybody is now finally adopted to you know, teleconferencing video meetings. Yeah, all that kind of stuff. And it’s really great, which actually, we’ll get to your book tour in just a moment. But so I think you’re right about that. What about the economy in general, though, for investors? You know, I’ve sort of likened it to this dichotomy. One part is, I think we’re going to wake up to a much smaller economy. I am not positive on the economy. I’m negative I’m bearish, okay, I think the economy is going to get smaller, I think people are going to look toward a simpler life, and the economy is going to shrink. That’s just my opinion, I could be wrong. But on the other side of that, you can make money investing, if you’re investing with the trend, right. One of them we talked about is the trend from, you know, high to lower density. And there are many others. But you know, your thoughts on the economy in general?

Ryan Moran 39:27
Well, I don’t think we’re going back. You know, it, I think there’s like this demand or this desire to go back to normal, whatever that means. Right. And I don’t think we’re going back I do think we’re going forward, and I think forward is going to be better than the past. In terms of the size of the economy, I think long term, it’s going to be larger, but there’s going to be this this adjustment period, where we are really folding forward the things that we like into the future. For example, this shocked me My gym opened this week and I don’t really want to go Yeah, right. Like I would rather have I’d rather workout in my home gym. And I would rather get that out. So it’s awesome, right? Yeah. So my spending is actually going to be I’m going to spend more on a home gym than I am on going to the gym. But that has other repercussions like that means a lot of gyms are going to suffer a lot. But that attention is now going to flow to any company that is providing home gyms or people like you and me.

Jason Hartman 40:33
So so you need you need an extra room for your home gym. Now, the extra space you need room for your home office. And if there’s a couple with two kids, that’s four people and if the kids are studying at home now they’re not going to school and both members of the couple are working at home. You now need four home offices. So I think the homes are going to get bigger certainly than the condo in New York City or the condo, downtown. Austin, and so there is going to be more demand for space and the home is the center of the universe in the 90s. Ryan, you were way too young and you’re always teasing me about how old am I right? But in the 90s there was this futurist who was really popular back then faith popcorn, and she wrote about this concept called cocooning. cocooning. Okay, it was like our key buzzword back then. And the big thing moving us toward cocooning meaning staying at home was here was the technology ready for this? Home Theater systems? theater systems, you know, why do people need to go to the movies? Why do they need to go to a Broadway play? We’ve got these big screen TVs now that we didn’t used to have and these great sound systems so you can just enjoy this at home and you can cocoon and now we’ve got the internet the home office, the home gym, you know everything. But

Ryan Moran 41:51
But yeah, I think we’re talking about the businesses. I think people that sell products for the home, whether they be home gym, and we saw what happened. Right after this, all the home gym equipment is sold out, right. But anything that is for the home, the home is the center of the universe now, right? That’s right. And so that’s one of those just next trends that if you’re serving, you’ll do great. And the outside economist might see that as a reduction of economic activity, but it’s just the puck moving. It’s just moving the way that it always has been. And our mistake would be trying to keep things the way that they are. And rather than allowing things to just evolve, right, it’s creative destruction,

Jason Hartman 42:33
isn’t it? Yes. Yeah. Yeah. Good, good stuff. So anything more about the economy investing anything else you want to say? Let’s wrap

Ryan Moran 42:40
it up? I think that we might see an accelerated rate of old established businesses going under. Oh, yeah. I think all that has happened during quarantine is a we’ve expedited what was naturally going to happen, right. And so getting ahead of the next trend is becoming more More and more important because I think the lifecycle of businesses may be shorter. Because the purpose of business is to come in help someone along their journey move and help them move on down the line. And we’re moving faster. We’re moving through those journeys a lot faster.

Jason Hartman 43:16
Yeah, we’ve brought the future closer to us very much, right? Yeah. So So what was going to happen in five, seven years is already happened. Now. It’s happening now, the adoption of teleconferencing, which you know, this technology is not new. It’s been around for 1520 years easily. But now everybody’s actually using it and realizing they can work at home even if they thought they couldn’t. So that’s good. And you know, Ryan, that’s also I think you alluded to this before, but it’s going to make a lot of businesses much more efficient, very efficiency benefit is going to enrich us because the future has been brought forward. So fast. Yeah. What a lot of

Ryan Moran 43:57
things that I don’t think we do give enough credit to when we’re looking at economics is the benefit of lower prices. Economists fear this right? Now, yeah, they see that as the wrong direction, but it’s really the natural order of things. So for example, had we not had we not intervened at all with any stimulus plan in this pandemic, then you would have had a natural downward pressure on everything prices would have come through the floor. And we do see that and so we see it at the gas pump, for example, right, but we would have seen it in wages which people would decry, but standard of livings would actually go up, right, because things would be so cheap housing prices would come down, stocks would come down prices, everything would come way down. But we’ve been inflating our way through it to keep prices at a certain level. I don’t think we give enough credit to the benefit of lower prices, which is what stimulates demand, and allows us to go after the things and the goods and services that we want. Want faster.

Jason Hartman 45:01
So a lot of your students use Chinese manufacturers. And that supply chain has been disrupted, obviously. And now, even though the supply chain is coming back online, there’s been some demand destruction, there’s been some supply destruction, and that’s supply demand shock is what that’s called. But a lot of people are looking to bring to onshore those supply chains and and diversify them at least do some of its moving to Africa or other low cost places, but some of its moving back to the US. Is that going to cause inflation or will increase the efficiencies offset that

Ryan Moran 45:37
I don’t think productivity increases inflation? I think government policy increases inflation monetary so then yeah, right. I mean, we say Federal Reserve is independent of the government is really the fourth branch of government right so i just i, i consider if I reserve a branch of government sure that’s government policy in my mind, right? But I don’t think productivity ever increases inflation intervention does. So we might see inflation happen. But I don’t think it’s going to because we’re bringing production on shore. Good. Good stuff. Ryan, give out your website and wrap it up with any closing thoughts. My Websites super hard to remember. It’s called capitalism.com. And my podcast is also called capitalism.com. And I wrote a book, it’s really good, you should get it. It’s called 12 months to 1 million. It’s how to pick a winning product, build a real business and become a seven figure entrepreneur.

Jason Hartman 46:33
Fantastic. That’s great. You know, I think the only person who can’t remember the title of your website is Bernie Sanders.

Ryan Moran 46:40
I thought you’re gonna say Joe Biden.

Jason Hartman 46:41
Joe Biden can’t remember anything. Well, I got

Ryan Moran 46:45
to that capital, the capital. Ah, you know the website.

Jason Hartman 46:50
There you go. It’s funny to see him trying to stream from home isn’t it? It’s pretty hilarious. guy. I do too.

Ryan Moran 47:00
Good stuff. Ryan Moran, thanks so much for joining us. It’s been awesome talking to you, as always, always a blast hanging out with you. Thanks so much for having me.

Jason Hartman 47:07
Hey, I want to say thank you to all of you who attended our webinar on Sunday, where we talked about asset defense protection, estate planning, and the tax reduction. And a lot of you gave us some fantastic feedback on it. And we are running that webinar again tomorrow, Wednesday. And to register for it. Just go to bi T dot L y slash protect me today. Bi t.li slash protect me today. And it runs at two different times tomorrow, Wednesday. So again, to register for that webinar tomorrow on asset defense bi T dot L y slash protect me today. See you there Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.

Archive