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You provide products, services or other resources to a target company in exchange for an ownership interest, a revenue share, a profit interest, phantom stock - warrants, options or some other equity-like interest in the target company.
How Do You Structure An Equity Deal?Roland breaks down one of his favorite types of equity deals. He uses this formula a lot because it’s very effective, dependable and comprehensive for all involved.
If you’ve been listening for any length of time, you’ll understand that Roland Frasier knows what he’s talking about and is speaking from a depth of experience and research. Read more about our host Roland here and to dig in further, sign up on our home page for exclusive content from Roland to your inbox.
The Cash Plus Equity Gap Multiplier Method:It seems to go without saying but it comes before everything else. Be sure that you receive enough cash to cover your needed operating or living expenses.
“I’ve seen a lot of deals with tremendous upside opportunity fall apart just because the service provider failed to negotiate a cash portion to cover their operating or living expenses.” Roland Frasier
Let’s assume it is going to cost you $2000 to cover the contractors needed to deliver the service you’re contributing, and you need $3000 toward your own living expenses (total $5000).
Keep that number in mind, and then calculate the high-end of the scale market value on those services that you’re going to be providing for the company. So let’s say that would usually be $10,000.
$10,000 minus your cost of $5000 is the equity gap.
Multiply that gap by 3-5 times.
Why?
Because you’re taking the risk. You’re betting on the company.Let’s base it on a multiplier of 3.
$5000 x 3 = $15k / month in equity BUY IN VALUE.
Multiply that by 300 (months) and that’s a $900,000 value over 5 years.
There’s the value you’re looking to have in the company.
Now let’s determine the Equity piece.Your interest percentage in the company.
Let’s say the company has 5 million dollars in sales and EBITDA (Earnings before interest, tax, depreciation, and amortization) of 1 million, and the valuation multiple for that industry is 9, then the valuation of the company would be $9 million (1 million EBITDA multiplied by 9).
So your interest in the company would be 10%. ($9M divided by $900,000, or Value of the company divided by the value of your investment over 5 years).
In conclusion, you’d receive $5000 per month for 5 years PLUS a 10% equity share.
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In this episode, we have the honor of sitting in with Roland Frasier, his business partner Ryan Deiss, and Gary Vaynerchuck. Gary is excited to talk about things he doesn’t discuss often, and we’re excited to share the high-level conversation with you.
Gary Vaynerchuck needs no introduction.BUT, in case you don’t know much about him... In the late 90s, after identifying “the internet” as a land-grab opportunity, Gary transitioned his father’s local liquor store into one of the first wine e-commerce platforms resulting in growing the family business from $3-60MM in sales during a 5-year period. Vaynerchuk's career spans startups, retail, marketing, and investing. He co-founded the restaurant-reservation app, "Resy", which was acquired by American Express and he’s the chairman of VaynerX, a communications company that holds media properties, technology companies, and a social-media agency.
“I’m excited now, this is stuff I don’t talk about… I want to thank you for putting in the work.. to make this happen today and I think it led to some really interesting conversation…I really appreciate when people care about their audience”. Gary Vaynerchuck.
Listen Today For1) H.R
2) Product to Market Fit
3) Operations
4) Consumer Behavior
1) Extremely specific questions about things that he knows a lot about
2) Finding out about their origin story
3) Intuition.
“I’m on a mission to give the best advice of the moment, every moment, with the hopes that I can have a mix of what happens - which is people thanking me for REALLY helping them build their business, OR, being historically correct so that I can trade on that currency.” Gary Vaynerchuck
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References Mentioned In This EpisodeGary’s Story.
Contact & Follow Gary VaynerchuckThrough his website.
On Facebook.
On YouTube
Contact & Follow Roland FrasierOn Facebook
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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Do you see other business owners having success and making it look so easy and wonder why it always seems so hard for you? If you’re having a hard time increasing the sales, profits or value of your business, you might just be running up the down escalator.
McKinsey studies have shown that the fastest-growing companies are those in fastest growing industries.
When your business embraces a current upward trend it’s amazing how much easier everything is, it’s like having the tailwind at your back. No matter how good your product or service is, if you’re fighting against a downward trend everything will be ten times harder.
Become a Trend-aware person. Consciously design your business to take advantage of trends as they come and go.
“You’re only limited by your own ability to be creative and adapt your business to the trends happening around you right now”. Roland Frasier
Ask yourself• How can you adapt your existing product line or service offering business to incorporate one or some of these trends?
• Which geographic areas are growing the fastest?
Don’t limit yourself to the places you’ve always known and have always operated. If that’s daunting, look for partners who already have a foothold or distribution channel in those markets.
15 Major Long Term Trends To Watch & Incorporate For Fast Business Growth1 Aging of many countries’ populations.
2 The rise of blockchain technologies.
3 The incredible popularity of CBD.
4 Voice search.
5 Artificial Intelligence as a service (AIAAS).
6 5-G Data networks.
7 Autonomous driving.
8 Personalized predictive concierge medicine.
9 Anti-Aging.
10 Organic everything.
11 Computer vision.
12 The Internet Of Things.
13 Virtual Reality.
14 Augmented Reality.
15 The Artisanal-ized economy.
How will you position your business in 2020 to benefit from the tailwind of trends to help meet and exceed your growth goals?
If you’ve been listening for any length of time, you’ll understand that Roland knows what he’s talking about and is speaking from a depth of experience and research. Read more about our host Roland here and to dig in further, sign up on our home page for exclusive content from Roland to your inbox.
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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Before Chad Hamzeh was an online traffic expert and the founder of multiple businesses, he was a professional MMA fighter. You may have come across his Traffic Black Books which our host Roland Frasier rates highly.
As a successful and sought after media buyer, Chad lets us behind the curtain in this episode. If you’re looking for a detailed Ad strategy there is A LOT to gain from listening in today. They get stuck into concrete steps that you can use in your online marketing.
“Our space is a crowded space - lots of places these days are crowded spaces now because it’s never been easier to get something up and going”. Chad Hamzeh
Listen Today For“If you need to turn one dollar into ten very quickly, buy email traffic. I haven’t seen a source that converts as well on the first touchpoint. Rent someone’s email list”. Chad Hamzeh
Click to find us on Apple Podcasts and other podcast players 🎧
References Mentioned In This EpisodeChad’s Traffic Books
Funnel Flux
For Deep analytics Glew
Order Metrics
Contact & Follow Chad Hamzeh
Through his website
On Facebook
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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Moving into a new year and a new decade Roland drops podcasts to help you tap into FAST business growth. If you’ve been listening for any length of time, you’ll understand that Roland knows what he’s talking about and is speaking from a depth of experience and research. Read more about our host Roland here and listen today for a strategy he has used time and time again to move the needle in his companies.
To dig in further with Roland, sign up on our website for exclusive content from Roland to your inbox. We’ll be dropping another sit-down interview this Wednesday, so take a moment to subscribe on Apple Podcasts. Roland will be continuing this series next week.
Get Your Offers In Front Of More EyeballsIf you want to acquire more customers extremely fast, you need to get your offers in front of more eyeballs! You can do that in several ways, but all of them require media.
"Your own ability to access more customers is only limited by your ability to access more media. You can do that through paid, search, social or owned media, but owned media is forever." - Roland Frasier
The other types of media are controlled by third parties who’s agenda and financial interests absolutely differ from yours. You level the playing field and ensure your continued access to renewable sources of new products and customers when you own your own media.
Long Term Strategy:“Best time to grow your own media is years ago, and the second-best time is now”. - Roland Frasier
It's a long game, and worth the effort. But we're talking about FAST business growth here so...
Short Term Strategy (The Fast Track):If you want to skip all the effort and hassle of building your own media and avoid relying on third party media, consider buying it from someone else! Acquire other people’s media (“OPM”).
Tune in next week to hear more on this!
Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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At age 23, author, coach and entrepreneur Brad Blazar quit college and became the J. R. Ewing of the family. This was brought to an abrupt stop in the late '80s due to The Reform Act and collapsing oil prices, but it was not about to slow him down.
Brad went on to find his true passion in life, raising money and helping people. He has raised billions of dollars in recent years for investment sponsors and those in real estate, in addition to closing the largest sales for multiple companies. Now Brad consults with companies needing access to capital and speaks on entrepreneurship after the success of his book.
“I tell entrepreneurs you don’t need to have all the answers and understand everything when you open the doors to your business, but you need to commit and take action and keep moving forward.” Brad Blazar
Listen today as Roland and Brad talk through his story and the lessons he has learned along the way. This is a fascinating episode and it will certainly help you to close more sales, raise capital and UP your game! To dig in further with Brad, check out his coaching website.
“It's not enough to identify limiting beliefs… Let's replace that with a positive one, and ask yourself, what do successful people do that I’m not doing? Beliefs are reinforced by habit.” Brad Blazar
Listen Today ForStep 1 Buy a list of high net worth accredited investors (google it online). Target affluent zip codes, households with an income of 3-400 k, a home valued at 1.2 million and aged between 55 and 72 years old.
Step 2 Do a mail merge and invite them to a (free) nice dinner or event (listen for a sample script).
Step 3 At the event, be sure to dress professional but not over the top. When everyone is seated, introduce yourself and give a solid powerpoint presentation with an accompanying folder. In that folder, Brad recommends having third party articles surrounding what you’re doing, and a one-page fact sheet that highlights the opportunity. During the evening provide a time for networking and Q&A, and let them know that you’ll be following up in the next few days.
Step 4 For those that are interested, schedule one-on-one time, if possible at their office, otherwise at a country club or at their home. Make it as easy for them as possible.
• Bring a PPM, any financial projections, and extra copies for their friends and contacts.
• Let them know with absolute confidence that you are going to treat their money as if it’s your own (listen for more details).
• Tell them about your team and how you’re going to report.
• Offer to go WITH THEM to talk it over with their CPA or Attorney (and they may even end up wanting to invest too!)
“People of wealth have a sixth sense. They can tell when you’re not talking to them eyeball to eyeball. You have to walk in strong. People like to do business with people they perceive are just like them. If you don’t have the confidence there’s no chance in hell of closing that sale.” Brad Blazar
Click to find us on Apple Podcasts and other podcast players 🎧
References Mentioned In This EpisodeOn Wings Of Eagles Book.
Build A Beast Program.
Contact & Follow Brad BlazarThrough his website
On LinkedIn.
On Instagram.
On Twitter
Contact & Follow Roland FrasierOn Facebook
On Instagram
Through his Website
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Subscribe & Write A Review Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.Click to find us on Apple Podcasts and other podcast players 🎧
This episode is the fourth and final episode in a mini-series from Roland for those of you who want to get the balance between building long term wealth and sustaining high income. In today’s episode, Roland focuses only on the long game and shares 5 strategies that have worked well for him, including four that are often missed.
In the last few weeks, Roland focused on ‘the short of it’; three episodes packed with strategies and steps. Make sure you go back and listen to episodes 115, 117 and 119. But today Roland hones in on how you need something that will replace the income that you’re earning.
A Good Long Term Plan Is Accomplished By:“A good long term plan should provide enough wealth assets to replace your ‘from your efforts’ income for the rest of your life - post-earning years”. Roland Frasier.
Listen Today For Five Proven Strategies For Building Long Term Wealth1) Real Estate is one of the best wealth building assets that you can find and there are a million ways that you can get involved. You can do it with no money down and you can play both the long term and the short term game with Real Estate.
“Real Estate has been a constant throughout my life. I’ve built, owned, flipped or held more commercial or residential real estate than I can remember”. Roland Frasier
2) Software As A Service Subscription (SASS) Companies. Recurring businesses have an advantage over other business models and are much more appealing to investors because they are always looking to mitigate risk, therefore businesses with guaranteed sales are appealing.
“You don’t have to know how to code to start or own a SASS company. A lot of people don’t realize that. You just have to know someone else who does - bring them in as a partner. Buy in or earn in.” Roland Frasier
3) Buying and Selling Businesses - Just as you can buy real estate with no money down, fix it up and sell it on, you can purchase businesses with no money down and do the same. You can frequently obtain third party financing, a version of seller financing or partner into businesses. It’s not nearly as difficult to obtain as you might imagine. This has been one of the greatest wealth-building opportunities that Roland has found.
Roland goes into this in-depth in his LEGS Intensives (Leverage, Exit, Grow & Scale).
4) Equity Investing - Taking ownership in companies in exchange for providing value. You provide services or resources in exchange for options, stock or some form of ownership in someone else business. It’s a win-win.
We have a whole episode on this here.
5) Trend-Based Investing In Insider Private Companies That Have Momentum
Listen for why Roland doesn’t care for the public stock markets for investing, nor for startups, he does love Investing in private companies that are already operating.
Roland looks to come in early as a passive investor when he believes they can quickly exit based on
• Trend favored focus
• Great team
Listen for what he conspicuously does not invest in for the long term, and why.
In ConclusionDon’t get lost in only creating and building income, and don’t get lost in only creating and building wealth, create a strategy for building both. Know how much income you need to live the life that you want. Build your active income and use it to create passive income and wealth assets.
To dig in further with Roland, sign up on our home page for exclusive content from Roland to your inbox. We’ll be dropping another sit-down interview this Wednesday, so take a moment to subscribe on Apple Podcasts. Roland will be continuing this series next week, focusing on LONG term strategies!
References Mentioned In This EpisodeResource on Real Estate
Resource on SASS
The Richest Man In Babylon Book
Wealth Management Expert
Contact & Follow RolandOn Facebook
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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Did you buy a pair of those gel soles back in the day? How about a Razor Scooter? Listen today to hear from the man who saw these products ahead of everyone else and built a 9-figure business. He shares how he did it, and what he does today. If you’re an investor and/or an entrepreneur, there are a ton of takeaways for you today, beyond products and investments.
Entrepreneur and Founder of The Sharper Image, Richard Thalheimer has an amazing track record of entrepreneurial success. As we kick off the new year, Richard and Roland talk about being ‘recovering attorneys’, about taking risks, about ‘finding the heart and the story’ that analysts miss, and so much more!
To reach out to Richard, email him from his website
“My entire life - what I try to do, is look at people’s every day lives, their activities, their habits, and think of something that might be a solution to a problem, that they’re putting up with right now, that you can go and invent a solution for.” Richard Thalheimer
Listen Today ForAnd more!
“Negotiating for me has to be a final result that the other side likes also. Maybe if it’s a one-time transaction you don’t care so much, but in business when you’re going to be dealing with people again and again… If they’re not happy, they’re not going to do a good job for me”. Richard Thalheimer
Click to find us on Apple Podcasts and other podcast players 🎧 and visit our website to sign up for exclusive content from Roland.
References Mentioned In This EpisodeLittle Black Stretchy Pants book
Shoe Dog book
Steve Jobs book
Contact & Follow Richard ThalheimerThrough his Website
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On Instagram
Through his Website
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Subscribe On Apple Podcasts and Leave Us An Honest Review...
Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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This episode is the THIRD in a mini-series from Roland for those of you that feel like you’re on the hamster wheel - or you’re the “dancing bear” in your business and you want to grow beyond that.
Strategies For Maximizing The Short: The Easiest and Fastest Ways To Add $10-15,000 per Month To Your IncomeWhich receives most of your efforts: Building your income or building your wealth?
“I can’t count how many very land rich or asset-rich friends and acquaintance got into financial trouble because they were TOO focused on the long term and they ran out of the income to support their wealth building… And there’s also the chance that the long game you’re playing might not have a chance to play out. Life might have other plans for you.” Roland Frasier
Today’s episode focuses on how to maximize your income and focus on “the short!” Roland is picking up from episode 117, laying out exactly what he would do (and has done) to create more short term income.
“If I had no money and no contacts, this is exactly what I would choose to create a substantial income from scratch”. Roland Frasier
1 Public Speaking - Listen in to Episode 17 2 Product Launch Affiliate Marketing - Listen in to Episode 17 3 Create A Coaching Program: Masterminds Roland’s Mastermind Playbook1) Choose an Industry (Business related masterminds are best).
2) Identify an influencer in your chosen industry.
3) Create a program where the group gathers monthly (if local) or quarterly (if national or global) where they share what’s working and what their biggest challenges are, and ask the group for help and connections.
4) Charge $1-100,000 dollars depending on your comfort level and what you believe the group can afford, and what their ROI on the Mastermind will be.
5) Provide an outstanding onboarding experience for new members to deep dive into their needs and challenges, what they will consider 'a win', and also what they have to offer the group in terms of special skills or how they add value.
5 Tollgate DealsWhere you provide the bridge from one person who has something of value (the seller) to the host who has an audience who could benefit from the sellers' products or services. You would provide an introduction and typically get 20-30% of sales from the seller. This is sort of a fancy term for being a broker.
Listen to Roland’s example of this, and the way you can sometimes receive a commission from both ends, resulting in 50% of sales.
Roland Suggests you learn more about this from Bob Serling,
5 Small Events - A Low Risk, High Reward Strategy
• Hear how Roland generated $675k from a small event with 12 attendees!
• How Roland built up his Facebook group using $10 a day boosts, and uses that to funnel into his small events and ultimately his Mastermind.
• How Leverage, Grow, Scale and Exit was born.
Roland’s Formula For Small Events: How to Get Started Before the Event:1) Create an audience (if you don’t already have one) OR approach somebody else who has that compatible audience and split the proceeds 50/50.
2) Create a low hassle video about the event, how much it is and what they will take away from it.
3) Build a simple page in Click Funnels (if you don’t want to do this yourself then have someone on Fiver or Dude Agency do it for you).
4) Post (or have your partner with the audience post) the video with a text summary across Social and on your podcast if you have one.
5) Every comment on social posts must be followed up and responded to!
6) Build your amazing content presentations for the event, allow for breaks and don’t let your sessions go over 90-minute sessions!
7) Rent a nice board room at a nice quality hotel.
8) Arrange for Audio Visual - you don’t need mics but make sure to have a screen and projector.
9) Make a crude hand drawing of the board room table layout - so that you can mark people’s names and make notes. Ask people to say their names and share what they do and why they’re there.
At The Small Event:10) Be sure to ask questions and involve everyone! Tip: Roland puts a checkmark by every name each time he asks them a question. He tries to have 3 checks on each name by the end.
11) Have lunch with them! At least on the first day.
12) On the second morning, find out what everybody ‘took away from’ the first day.
13) Before you make your “upsell offer” and before lunch, make sure to present your most amazing, most helpful, most impactful content.
14) After the big breakthrough, offer the ‘extra thing’, whether it’s a mastermind or another event or a coaching program.
15) Let them have lunch on their own on the second day. This allows them to say “Hey that was cool when they had lunch with us”.
16) After lunch, go around the room and ask everyone if they have any questions about your upsell offer. Be sure to congratulate people who are signing up in order to affirm that social proof and encourage others to jump in.
17) Deliver some more content for about 90 minutes. It can be you or you can bring in a guest that affirms your credibility.
19) Have a reception with drinks. You can have a cash bar or you can provide some drinks and get an area in the bar for everyone to hang out.
20) Use the reception to connect one on one with each attendee, and close the sale of your next step offer!
“I still use these five strategies. Of course, there are other great ways to up your short game to create income, but the ones that I’ve talked about here are 5 of the best! Fastest, easiest, lowest hassle”. Roland Frasier
To dig in further with Roland, sign up on our home page for exclusive content from Roland to your inbox. We’ll be dropping another sit-down interview this Wednesday, so take a moment to subscribe on Apple Podcasts. Roland will be continuing this series next week, focusing on LONG term strategies!
Contact & Follow Roland
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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A special episode today with Roland Frasier and Andre Norman. Andre shares his incredible story of transformation and the framework he’s built to help other people. Andre travels the world as a public speaker, including engagements at the Whitehouse, Harvard Law School and London School of Business.
“I thought... If I can’t be a psychopath why be in jail? I want to be free. But I looked at all the groups in the jail, and they would all come back to jail. I saw that “Free” didn’t work. So I switched my goal to successful.” Andre Norman
To read more about Andre, or to reach out to him, visit his website.
From illiteracy to gang activity, Andre’s childhood prepared him for nothing less than a life of crime and violence. This behavior eventually led Andre to be sentenced to over 100 years in prison. As a natural-born leader, he quickly rose to the top of the prison gang system where he managed gang activities from within the confines of a maximum-security prison. During his two year stay in solitary confinement, Andre had an “epiphany” and he made the decision to turn his life around.
“If you’re talking you’re teaching, if you’re listening you’re learning”. Andre Norman
Listen Today For“I look at every variable, that I can be shut down in or killed on. Get it right or die. I took training people very serious because where I came from the first time I get it wrong, I die”. Andre Norman
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Contact & Follow Andre Norman
Through his Website
His LinkedIn profile
His Facebook profile
Contact & Follow Roland
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Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.
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