How To Never Pay For Rent or Food Ever Again... My $724,000 lesson. Ep 169

Summary Notes


In a motivational talk, the speaker shares a valuable lesson on leveraging a business's existing customer base as a distribution network to create a passive income stream. He draws a parallel with drug cartels' distribution strategies to emphasize the importance of utilizing clients' diverse purchasing habits. By observing that gym members not only invest in fitness but also in related products like supplements, food, and technology, he suggests that business owners can monetize recommendations for these products. He announces the launch of a ready meal delivery service that, based on average sales numbers, could potentially cover the cost of food for gym owners and their trainers, thereby promoting a healthy lifestyle and financial well-being. The speaker is excited about this initiative, which will go live in twelve days, and invites business owners to join his platform to grow their ventures and benefit from this new service.

Summary Notes

Introduction to Passive Revenue in Business

  • Speaker A discusses the concept of passive revenue in business, expressing skepticism about its viability.
  • They introduce the idea of a distribution network as the only feasible form of passive income.
  • The speaker compares this concept to the drug cartel's control over distribution.
  • Owning a business with clients is equated to having a distribution network.
  • Clients purchasing habits outside of your business are highlighted as an opportunity.

"So I wanted to make a fun video about a $724,000 lesson that I learned. And frankly, the only passive. Passive, quote, revenue stream that I've ever been able to create and end that $724,000 lesson resulted in a house, a car, and other cool stuff."

The quote outlines the speaker's intention to share a significant personal financial lesson involving passive revenue, which resulted in substantial personal gains.

"But to the extent that it is a myth, I think this is the only viable way that you can actually have it, which is by looking at your business as a distribution network."

The speaker suggests that the only practical form of passive income is to leverage a business's existing client base as a distribution network.

Leveraging Client Purchasing Habits

  • Speaker A emphasizes the importance of understanding what other products clients might purchase.
  • They provide the example of gym members who also buy dietary supplements, food, fitness apps, and wearable tech.
  • Statistics on dietary supplement purchases in America are mentioned to support the argument.
  • By recognizing these purchasing habits, a business owner can monetize their distribution network.

"74% of all people in America buy dietary supplements, right? They buy 74%. Three out of four buy at least one dietary supplement and use it."

This statistic is used to illustrate the widespread purchasing of dietary supplements among Americans, indicating a potential market for businesses to tap into.

"So what you have in front of you is a distribution base. And if you monetize it properly, it can allow you to get a lot of the things that you normally pay for for free."

The speaker explains how a business's client base can be seen as a distribution base that, if monetized effectively, can offset costs for the business owner.

Monetization Strategy

  • The speaker outlines a strategy for monetizing the distribution network without additional effort.
  • Making recommendations to clients for products and services they already use can be profitable.
  • The strategy involves tracking referrals back to the business owner.
  • The closer the additional products or services are to the core business, the more effective the strategy.

"There are plenty of businesses in your world who want to have access to your customers and are not competitive with you, right? And so capitalizing on that is a really great way of making money without actually spending any effort."

This quote highlights the opportunity to partner with non-competing businesses that wish to access your client base, providing a method to earn money with minimal effort.

"And so what it does is it allows you to make money on all of the other variety of services that they purchase."

The speaker indicates that this approach enables business owners to profit from the diverse range of services and products their clients buy.

Vision for Fitness Professionals

  • Speaker A shares their vision for fitness professionals to never have to pay for rent or food again.
  • They express excitement about a three-year project aimed at achieving this goal.
  • A timeline is given, with an upcoming date (December 13) being significant to this vision.

"And so I'm really excited about this because this has been like the vision for me for three years, been putting this together."

The speaker conveys enthusiasm for a long-term project designed to financially benefit fitness professionals.

"And my goal, hopefully you guys will excited about this, is that no fitness professional will have to pay for their rent or their food ever again, which is super exciting for me and hopefully just as exciting for you."

This quote reveals the speaker's ambitious goal to alleviate the living expenses of fitness professionals through the application of their passive revenue strategy.

Introduction to Business Expansion

  • The business is launching a new service: ready meal delivery with next day air to customers.
  • This service is expected to cover the cost of food for the gym owner and their trainers.

So twelve days, we are finally going to be kicking off kind of the second huge piece to our business, which is ready meal delivery.

The speaker is announcing the launch of a new ready meal delivery service, marking a significant expansion of their business.

Impact on Gym Owners and Trainers

  • Gym owners can cover their food expenses by selling the same amount of meals as they do supplements.
  • Trainers can also have their food costs covered, which adds value to working at the gym.

That same amount would cover you and four trainers and all your food for that whole time period.

The speaker explains that the revenue from selling meals can cover the food costs for the gym owner and four trainers.

Lifestyle and Financial Benefits

  • Following the healthy lifestyle promoted by the gym.
  • Fit individuals tend to earn more money.

You can speak with conviction about the fact that you really want to walk and live a healthy lifestyle, not to mention the fact that people who are fitter tend to make more money.

The speaker is connecting the practice of a healthy lifestyle with financial success and the authenticity of promoting it.

Business Model Efficiency

  • Negotiating bulk purchases allows the business to provide food at no cost to fitness professionals.

I can buy chicken breasts by the ton, broccoli by the pallet, you know, what I mean, to make this available for everyone.

The speaker is detailing how bulk purchasing enables the provision of free meals to fitness professionals.

Employee Benefits and Customer Service

  • Providing for trainers' meals can improve their loyalty and service to customers.
  • Taking care of employees is crucial in service industries.

And the thing is, if you take care of them, they take care of your customers.

The speaker emphasizes the importance of taking care of employees as a way to ensure good customer service.

Leveraging Partnerships and Affiliates

  • Recommending products like landing page software can generate additional revenue.
  • Transparency and discounts can build goodwill with customers.

The $724,000 lesson is like, that was the commissions that we got from clickfunnels, just from the fact that I don't build landing page software, but I can recommend landing page software that works well.

The speaker shares a success story about earning substantial commissions by recommending a product that complements their business offerings.

Business Growth and Service Expansion

  • The speaker is addressing business owners aiming to scale their businesses significantly.
  • The focus is on businesses within the fitness industry, specifically gyms.
  • The speaker offers assistance in business growth through their platform,
  • A new service is being launched that allows gyms to provide meals and supplements to their clients.
  • The service aims to cover essential costs like rent and food for gym owners through revenue generated from selling supplements and meals.
  • The service is designed to be convenient for clients and scalable for the gym owners.
  • The launch date for the new service is set to be in 13 days from the time of the conversation, on December 13th.

"If you are a business owner that has a big old business and wants to get to a much bigger business, going to 5100 million dollars plus, we would love to talk to you."

This quote emphasizes the target audience for the service—business owners with substantial businesses looking to scale up to the next level of revenue.

"And so I think that I see a world, hopefully in the near future, in 13 days away for 2020 and beyond, where the revenue that comes in from supplements can cover your rent and the revenue that comes in from meals can cover your food."

The speaker envisions a business model where gym owners can offset their primary costs through ancillary services, suggesting a symbiotic relationship between client needs and business operations.

Client Convenience and Lifestyle Change

  • The new service is designed to simplify clients' lives by providing them with meals, thus aiding in their healthy lifestyle changes.
  • The convenience of the service is expected to be a selling point and a unique differentiator for gyms.
  • The speaker believes that by reducing the effort required to change lifestyles, clients are more likely to sign up and stay committed.
  • The service allows for flexibility, as clients can choose to learn to prepare meals themselves over time or continue with the convenience offered.
  • The speaker shares a personal anecdote about choosing convenience despite having the skills to cook, to illustrate the appeal of the service.
  • The service is framed as a solution to a common pain point for gym clients, who often request such convenience.
  • The speaker cites USDA statistics on the time spent on meal preparation and cleaning to highlight the potential time savings for clients.

"Also allows you to market that as a unique differentiator in terms of you being a one stop shop of like, we will even cook your food for you. Like, dear God, wow."

This quote highlights the potential marketing advantage for gyms that adopt the new service, positioning them as comprehensive providers of health and fitness solutions.

"And then over time, if you want to, you can remove some of the meals so that she can learn it on her own or she can stick with it."

The quote suggests a gradual approach to client independence, indicating that the service is flexible and can be tailored to the clients' preferences and growth.

"Is that we prep our food. But realistically, normal people take, this is just, according to the USDA, 5.9 hours a week prepping and cleaning food, right?"

By referencing USDA statistics, the speaker provides a factual basis for the time-saving benefits of the service, reinforcing its value proposition.

Fitness Lifestyle Changes and Time Investment

  • Individuals attempting to change their fitness lifestyle may spend approximately 9 hours a week preparing and planning.
  • This time commitment equates to a full workday each week or a full workweek each month.
  • The value of time-saving solutions in fitness and nutrition is significant as people already invest time and money in these areas.

"And so if it's 9 hours a week, like you're giving someone a full day, full work day of their life back, and over a month, it's a full week of work, right?"

This quote emphasizes the substantial time commitment individuals make when changing their fitness lifestyle and the potential value of solutions that can give this time back.

The Role of Food in Fitness and Supplements

  • Food is essential for everyone, with 100% of people requiring food to survive, while only 74% of Americans purchase dietary supplements.
  • Food is inherently marketable as it is a basic need, unlike supplements which are an additional purchase.
  • The ease of selling food-based solutions is compared to the lack of salespeople at popular eateries due to the natural demand.

"But 100% of people eat food. And if they don't eat food, they die."

This quote underscores the fundamental necessity of food for human survival, highlighting its importance over supplements.

Convenience and Goal Achievement in Nutrition

  • Providing convenient food solutions can help individuals reach their fitness goals more quickly, with the majority of success attributed to proper nutrition.
  • Fitness professionals can benefit from offering consistent nutritional solutions to their clients.
  • The speaker expresses excitement about a new venture that can aid both clients and fitness professionals.

"And so as long as you make it available to them, then they will make that purchase, especially if it comes with the add along benefit of being convenient, saving them time and getting them to their goal faster, which we all know, real talk, 90% of it's going to be food anyways."

The speaker is explaining that making convenient food solutions available is key to customer purchase decisions, especially when it aids in achieving fitness goals.

Community Engagement and Anticipation

  • The speaker encourages tagging friends and commenting for those outside the "gym lords" community to express interest and get notified about the project.
  • There are promises of exciting prizes and bonuses to enhance engagement and enjoyment.
  • The goal is to help clients and trainers improve their lives, potentially eliminating expenses like rent and food through customer goodwill.

"Tag your friends comment below. If you're not in our world, like if you're not in gym lords and you are interested in this comment below so that we know we can try and message you and let you know when it goes live so that you two can have access to it."

The speaker is inviting engagement and expressing a desire to connect with interested parties to inform them about the upcoming project.

Support and Motivation for the Fitness Community

  • The speaker acknowledges the hard work of others behind the scenes in preparation for the launch.
  • There is a focus on community strength and supporting those who might struggle with meal planning by making it easier for them.
  • The message ends with encouragement and recognition of the ongoing hustle and the notion that while the work doesn't get easier, individuals grow stronger.

"I salute you for the hustle that you put in it, because it never gets easier. Right? We just get stronger."

This quote is a motivational statement recognizing the persistent effort of the fitness community and the personal growth that comes from such dedication.

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