Partnership Pro Ron Lynch Chats On Generating $4 Billion+ In Sales For The Brands He Works With

Zach Johnson

Dylan Carpenter

Ron Lynch

Episode
46
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Ron Lynch

,

President and Founder

Big Baby Agency
Apple PodcastsGoogle PodcastsLive on SpotifyLive on Youtube

Ron is a strategic consultant to some an executive team member to others. Generally I empathetically take the consumers thought position and build a buying story that links them to credible products, services and innovations that have the probability of making life better. I look for products that have protectable and unique innovation that can be further developed and advanced over time. Important components also include appropriate margins to fuel growth, actual audiences size and identification. Lastly, I look to add individual stories reflective of the individual consumer segments.

Episode Summary

We dive into a DEEP conversation with Ron Lynch on how he was able to generate over $4 billion in sales for the brands he's worked with. How he was able to form partnerships with massive brands like GoPro. And how he's changing the world in 2020 creating Intellihelp, a group of 80k people across 8 continents by creating a support system.

RESOURCES/CONTACT:

Transcript

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Episode
46
Transcript

Dylan (00:00):

On this episode of the rich dad, poor ad podcast, we have an awesome guest, Mr. Ron Lynch, who waseasily responsible for generating well over $4 billion in sales for awesome brands like go pro OxycleanGeorge Foreman grills. And the list goes on. We dive into one of his newer projects and tele-health,which is helping individuals across the us and sent other countries globally on getting food, um, youknow, pet products and these kind of wild times to kind of, you know, really show a personal aspect tolife and kind of helping others. We dive into within work. So great, which was a kind of a newer business,newer product, just kind of bad timing there. And to finish it off, we dive into some awesome financialprinciples on, you know, coming up with the partners, how to, you know, give away equity in thecompany, um, and kind of really scale it up and use your partners to your advantage, to kind of open upthe door to retail, online sales and so many other aspects of the business. So make sure to tune in thisone is when you don't want to miss buckle up.

Ron (01:00):

And the next thing to allude to kind of why, cause that's, that's more of a hundred, like this last story islike 10,000, 20,000, $30,000 story, but I've had million dollar failures and $2 million failures. Now thatdoesn't mean I've had two, $1 million failures. I've had a bunch of $1 million failures and I recently had a$2 million failure. So, um, those are haircuts. Um, and the $2 million failure was mine. Personally. Iowned it.

Dylan (01:39):
[inaudible] you're listening

Zach (01:40):

The rich and poor ed podcast where we break down the financial principles that rich advertisers aredeploying today to turn advertising into profit and get tons of traffic to their websites without killingtheir cash. These advertisers agencies, affiliates brands are responsible for managing over a billiondollars a year in ad spend. You'll hear about what's working for them today. They're rich ads and we'llroast their Epic failures and crappy ads on the internet with poor ads. Let's get into it.


Dylan (02:07):

All right, everybody. Welcome to another episode of the rich dad, poor add podcast or dive into what'sworking, what doesn't work in some bad-ass financial principles. We've got your host, Dylan Carpenterin the house. I am pumped for this one. We have a fellow awesome guy here in Austin, Texas loving it,but we have Mr. Ron Lynch, who's kind of a marketing mercenary as well, over 4 billion and attributedsales with multiple brands like GoPro. Oxyclean George Foreman, a ton of products online. And I mean,he's an absolute legend in this space. So I mean, the hype is real, but Ron, what's up, man. Thanks forjumping on.

Ron (02:40):
Thanks for having me on, and I'm not a legend because you have to be dead to be a legend. So let's sayI'm notorious. That's even more. I like that

Dylan (02:51):

Edgier feel to it, but heck yeah, man. So, you know, we're definitely kind of in the same circle. I think it'ssuper nifty there. I'm totally going to have to regroup one of these days, but kind of get everybody somecontext of who you are, kind of what you're getting into. So people have an idea of kind of, you know,

Ron (03:07):

So I am an ex grocery retailer and I left the grocery industry the week of nine 11 as being, uh, operationsdirector of, uh, retail, grocery companies. Uh, so I understood customers, merchandising, psychologylayout offers and all of the things that require you to understand a P and L. So I got kind of a master'sdegree in the real world by operating multimillion dollar grocery stores and whole foods type storesstores that were kind of cutting edge fancier. And my hobby was writing screenplays, but as a kid, I wasin movies. So I understood the movie business and I liked storytelling. So I started writing screenplaysand I sold a screenplay to George foreman's agent, Sam, Sam Perlmutter, uh, during the GeorgeForeman grill campaign and the people that were running that campaign said, Holy smokes, would youlike to come work for us? And I became the creative director of an ad agency and put my retailknowledge to the filmmaking trade and the TV commercial trade infomercial trade. And I've been doingthat for 20 years now.

Dylan (04:14):
Oh man. Heck yeah. That's quite an insurance of the industry there.

Ron (04:18):

Yeah, I was interested in, I mean it was, and it was kind of nice. It was like, I got to start at the top too.You know, I think people dream of being a TV director or writing, but being able to do that and havingthe business mechanics that most people are missing. Most people who get into TV and film have noidea how to run a company or a PNL or sell. So it was really the combination of those two disciplinesmade me uniquely suited to do this.

Dylan (04:44):
That just kind of projected you into this industry to a whole new level, more or less, that was kind of your foot in the door.

Ron (04:48):

Well, my foot in the door was that was, was that the, but the first two commercials I got to write werefor space bags with Samsonite and American tourist or so, and then after that was, I immediately didsomething with OxiClean and the one after that was, uh, uh, Kevin Harrington's flavor wave deluxe oven,which ended up doing a hundred million dollars. So I kind of went from zero to the fast lane. And in thefirst, I think in the first four infomercials, I did all went over a hundred million dollars in revenue, whichwas fabulous. But the next four that I did were, were absolutely dismal failures. And so I had to learn alittle bit, I w I've learned a lot along the way. Let's just say that mostly the hard way,

Dylan (05:33):

What have been some of the, your more enjoyable clients to work with just with awesome creative,awesome, you know, brand positioning who have been kind of those top three on your kind of list thatyou're like, man, I'm pumped. I got to work with them.

Ron (05:44):

Um, I probably, um, I run the risk of any of them listening to your podcast now. So like who, which oneof my kids are the favorites, but I'll do the things that stand where, um, actually did a project with BillyMays, um, that we wrote together that other talent, where he wasn't in the commercial was for aproduct called the total total trolley. It was a step ladder, but it was one of my first interactions withBilly. And he really helped me in understanding like, he'd come to the table and he'd be like, what's theoffer? And what's the, the cash, like he knew right up front. Like, it didn't matter what effort you wentto, if you didn't have a good offer, it wasn't going to go. So he, he taught me a lot of fronts so that Tonytrolley probably would be one, obviously GoPro, um, would be another. And Samsung robotics waspretty good to me too. So it was pretty, pretty neat to be able to work with them, but I've had theopportunity of working with Microsoft and J and J and, uh, Valvoline and Hunter fan company, and lotsof big corporations that have needed our help. So it is hard to pick.

Dylan (06:55):

I believe that I know there's some fun names there. Well, heck yeah. Well, sweet. Everybody's definitelygot an idea of what you're getting into these days. So, I mean, for this next mixed segment we live in tokind of dive in, what's worked for you recently. Um, you have a really cool case study more or less,especially with what's going on in the world that, I mean, people are getting impacted well over 30million jobs lost. So, I mean, I think it's going to be a super juicy rich segment, but we'd love to kind ofdive into, you know, your idea of the kind of a rich had more or less, you know, what's working reallywell for you. [inaudible]

Ron (07:29):

Well, let's talk about that. Uh, the, what you're alluding to is in telehealth and when I saw the pandemicbreaking out, I was actually kind of ahead of the curve. I knew where we were headed in about, uh,probably January, February. And so I'd kind of Batten down the hatches and kind of prepped, you know,got a ton of food and all of that stuff. And now like, okay, we're going to get locked in here and waitedaround and nothing happened, nothing happened. And then it happened. And the first weekend that ithappened, I had been working real hard to get my folks to, uh, uh, lock themselves in their house andstock up. And they just sort of like, you're crazy. It's going to be going to be fine. We can go to the storeright down at the corner. Like you don't, I don't know if you'd know what, like this could get bad.

Ron (08:13):

And then I started thinking about all of the folks that are poor or could be poor, rapidly. Cause mostAmericans can't scrape together $500. They have no savings. And a lot of people have kids. And thatwhat happens when all of these people can't eat and we created and did a Facebook post on a Saturdayand said, I'm going to start this organization where people can feed people peer to peer. Um, if you havemoney and you have a little extra money, you're going to help feed somebody, but you're going to pickthem. And the people who are in need would go onto Facebook and make a grocery list of what theyneeded. And so that exchange within a week had about four or 5,000 people on Facebook, both feedingpeople and being fed. And it grew to 12 countries. And now there's over 80,000 people just in the us.

Ron (09:17):

And the big expansion was so fast. I had to stop the expansion because I did not have a legitimate fiveOh one C3 in place. Uh, I wasn't actually a charity. I was a private guy just doing this with volunteers.And I thought, Oh man, I'm gonna get in all kinds of trouble with the IRS. So I don't get this figured out.Cause I wasn't really, I wasn't, I was just spending money on ads, myself personally. But like I could see this thing growing and there were people tapping me from corporations saying, Hey, how did we getinvolved in this? So the, the, the reason I tell that story is it's grown fast. It's going to continue to grow.Now we have the five Oh one C3. We have an app that consumers can use. So we'll have funding fromcorporations to feed people in America, which makes the corporations look good.

Ron (10:02):

And it's, it is useful. And there's folks in need. So in any business brand or company, anything you create,if everybody needs to be involved, if everybody's got an interest in, uh, getting something out of it andthere's a pointed need that the culture is looking at at that time, you got a good chance of winning,which is kind of like GoPro. When GoPro came along, the thing that made it blow up was not GoPro. Itwas our ability to leverage the tool of YouTube and Facebook. At the moment they were introduced.Those three things were extremely tied together. GoPro would not have happened today. It had tohappen at the launch of Facebook and the launch of YouTube where people wanted to pro project theseselfies. And it was, it was a new platform for them to do it. It was a tool that allowed them to do that.

Ron (10:57):

And the phones didn't have the technology at that point to do these, these selfie videos. So until tele-help us like that, we, we were kind of ahead of frankly, the poverty curve as poverty is rapidly expandingin America at this moment because people are losing jobs with staying home. We saw the need there,but we realized other folks would want to help them. And the potential to save lives, lower crime, getpeople fed and do a good act at a time in your life where we all feel helpless. Poet has made, it hasrendered everybody. Everybody's got a mask and everybody feels like their, their ankles are shackled inlife. Right now. We all feel tied up. And if you feel powerless and I give you something to do, that'sempowering, that truly builds your virtue and feeds a child. You'd be a fool to say no to it. Oh, a hundredpercent.

Dylan (11:57):

Yeah. And I mean, I kind of came up on it when you first launched it, launched it too. I mean, it kind ofblew up in Austin real quick. And then all of a sudden it was a snowball effect. And I had tons of friendswho are sharing it, posting about it. I'm like, man, this thing really kind of blew up. So, I mean, you'vementioned, I want to say you had about 80,000 of the U S is this something that's expanded outside ofthe U S and kind of gotten more

Ron (12:18):

There's an in tele-health in Australia, Germany, Sweden, England, um, Ireland. Wow. Yeah, I think thatthere's 10 of them and there's a, uh, there's a PEs division. So in tele-health pets, cause we realized, andit started with a complaint. And this is another thing when, when somebody complains to, there'salways an opportunity in the middle of the complaint. So I had a lady come online and she franklybitched, Hey, why, why the F don't you guys, why does my mother have to choose between cat food andher food? She can only pick 10 items. It's like, okay, guess what? We're going to open up in tele-healthpets tomorrow. And you are going to come work there because if you're going to about it, you just gotyourself a job. And she was like, what? And I'm like, that's what you're going to do. You complained getin the boat. And so I drafted her in five more people. And we created in tele-health pets, which feedslivestock, cats, dogs, goats, horses, veterinary stuff. It does all kinds of stuff. So it's, it's, it's self-propagating. And, uh, when you find there's a lot of people that can find a problem for every solution,

Dylan (13:35):
Always try to get way more broadcasted than anything.

Ron (13:40):

And I mean, and, and not to be, um, light about our cultural paradigm at the moment, but when now II'm from Seattle where black lives matter started, and I've been following and watching that since theyfirst interrupted Bernie Sanders in Westlake park in Seattle. And, uh, the three gals took the microphonefrom him. So it was just then, you know, another election cycle, two election cycles ago. And I thought,what is this stand for? And I immediately went to their website and it's changed over the years, but Ikind of got the gist of it. And then I watched this Colin Kaepernick evolution and Tim Tebow revolution,two guys taking a knee for different reasons on the field and how the culture reacted to them. And thenhow this has manifested in the last year with these police shootings and killings of these folks.

Ron (14:36):

And I made a very long post or my personal page about when, uh, uh, George, um, who is, what's his lastname that young boy was killed the spring. And it was an extremely sympathetic his situation by theway. And I've stood back and I went, okay, black lives matter is a movement and it's political, but if blacklives matter, what can we actually do from the Caucasian culture, the Asian culture, the Eastern cultureto, to go, they do well, how do we take an action instead of just sticking a yard sign in our yard, insteadof wearing a t-shirt or donating some money, I'm like, you know what, until it helps a great vehicle forthat 25% of our audience in there is African-American, uh, 25% is Latino, which is about double for boththe size that they exist in the general demographics of our population. So an individual, if you want tomake a life matter, feed their kids. And so for me, it's more than just, you know, it, there's ways in life todeal with things that are, uh, with, without preaching. You just go, Hey, you know what, it's way easierand way smarter and way more productive for me to feed these folks and feed their kids than it is forme to go burn a building,

Dylan (16:01):

Man. Yeah. You hit a spot on, you really connect people on those kind of personal levels and help just awide array of every type of individual walk of life out there. So, I mean, it's pretty awesome. Kind ofwhat it's come to. And I mean, that's, that's an example of kind of a rich ads, more or less story ofsomething that's worked super well and this, the timing was right. And all the stars aligned there, itseems like. So it's pretty nifty how that all kind of came together without a doubt.

Ron (16:25):
Yeah. You don't have to be 30 years ahead. You can be 15 minutes ahead if you're paying attention.

Dylan (16:29):

Yeah. For real trends on Twitter, some stuff like that, but I mean, that's quite a segment let's go aheadand transition to that worked really well. Um, but of course, it's always cool to see, you know, somethings that just haven't worked out, you know, online these days, everybody talks about what's goingsuper well. So it's good to kind of open up the curtain to kind of find something that hasn't worked toohot maybe recently in the past. Um, go ahead and kind of open up the kimono. Something that youthought would just work super well as maybe crash and burn and turn out as planned. Um, just to kindof open it up a little bit.

Ron (17:01):

Okay. I have, um, one of the, um, I'll say one of the personal flaws that I have is, uh, I love my friends somuch. I won't want to walk across the ice alone and digital marketing and television marketing. It is. Ialways look at it as kind of like crossing a frozen Lake. Like you spread out your way, you spread outyour, your media and your tests. You try to eat your way out there and find where the ice is going tocrack. And you get away from that and that where it's more solid. You kind of lean towards that andmake your, you know, make your journey. Well, if I have a friend who has an idea that's questionable oreven good, um, it's hard for me to let them go to somebody else. They'll come to me. People come tome for tons of advice all the time.

Ron (17:42):

And I'll say, and I'll say, you know, I don't know if that's a good idea. Um, or I don't know if this is tinyand drive back to the tele-health Intel help wouldn't have worked four years ago, but right now it willthen. So I had a friend come to me with, with a, with a piece of sporting goods equipment, and I don'twant to get too into the weeds cause I don't want to out them. Okay. But it's, it's a very specific sport.First of all. So you go, that's good. I can target that. It's a very specific product that doesn't exist in themarketplace. So it has innovation. So it has two of my hallmarks. It's got innovation and audience who isextremely inexpensive to manufacture with by margins. So it has margin, it takes three boxes. So the lastthing, it needs a story and we've developed a story for it, which was good.

Ron (18:37):

And the I'll tell you this, that the sport itself is fishing. It's it's in the fishing niche, but the campaign cametogether as COVID coalesced. And I became very nervous about going out with this type of productwhen everybody was battening down the hatches and locking themselves in their house. And my friendand client said, and this is a good friend of mine said, no, no, no. All the, all the data we have is thatthese guys that are fishing and gals that are fishing are actually going out on the lakes in Michigan. Nowit's summertime and they're getting there, they're using their boats by going and doing this.

Ron (19:21):

Okay. I'm going to believe you. And cause I'm your brand, you know, like I'm going to walk up across theLake with you then rather than you go with a total stranger who will not get you any results or careabout it. So we did. And surprisingly enough, we got to a place where our ad spend actually matched asales. That's going backwards, right? Because that doesn't have to have a two to one. You can't have aone-to-one. And I think we might've had a 1.3. Um, but it was, it gave me no room to expand. And thiswas, I was doing, working very low, medium volumes and it couldn't expand and I couldn't expand. And Ifinally called them up one day and I said, you know what? I've got X amount of dollars sitting in anaccount that you gave me an advance as a deposit.

Ron (20:11):

And I'm shutting the account like this ad account. I'm going to just turn off the ads, handy the adaccount and send you the remainder of your money back. And I'm not going to charge you anycommission or any, like, we just charged him for the production work of the original, uh, and very, veryaffordably production work, the original. And it was depressing. Like I hate losing it me off. I'm like, butagain, it was, why did I say yes to something that my intuition and my intellect both knew this was notright. And I still went across the Lake with a guy when I should have just said, we are not going across the Lake. I will not let you. Um, but the softy part of me was like, okay, this guy's going to do this. I'mgoing to try and keep them alive.

Ron (20:55):

And, uh, it's uh, I think I mentioned earlier that my first four infomercials did a hundred million dollars.My next four failed. And the next two allude to kind of why, because that's more than a hundred. Likethis last story is like 10,000, 20,000, $30,000 story, but I've had million dollar failures and $2 millionfailures. Now that doesn't mean I've had two, $1 million failures. I've had a bunch of $1 million failuresand I recently had a $2 million failure. So, um, that's, those are haircuts. Um, and the $2 million failurewas mine personally. I owned it. Um, so when you go through those, the number one thing that Ilearned from the first ones was I was picking products wrong. I was the difference. Like I said, there'sfour things. There's innovation, audience, Martin, and story. And I convinced myself when I got into thisbusiness because I hit $400 million out of the park in the first four shows, it took a couple of years for tosell all of that.

Ron (22:05):

But you get the point. They were so successful earlier. I was like, I can do anything. It's my storytelling.And so then I got involved in products that were terrible and had no chance because I, my own egothought, Oh, I got this. And boy, I got schooled real hard. And then once I did, I developed amethodology for picking. And that methodology is, you know, that's something that I teach. I have acourse next to, you know, I teach people everything that I do, uh, and how I think not what to do, buthow to think. And that methodology has served me very well because in an industry where people getprobably one hit out of 20 tries, I get about seven or eight hits out of 10 tries Or success ratios.Excellent.

Dylan (22:58):

Oh, Yan. I mean, we've had a lot of, you know, individuals come on and talk about, I mean, all thosetests, you know, you got to keep in mind of those people racking up. Cause I mean, she'd have you havea 10 tests, seven made us not hit. So where those three have kind of scaled them up to kind of equal outthe losers in those scenarios. So, I mean,

Ron (23:14):

I mean, you can still have seven tests that work in the whole business doesn't yeah. What I'm saying isI'm S we're seven, eight out of 10 out of picking the right product that actually turns into a multimilliondollar product. Not just that, Oh, it worked for a while or it's a flash in the pan that it turns into alegitimate brand that ends up getting the exposure and retail that you're looking for. Um, and thatdoesn't mean seven out of 10 of my ads. I'm like, it might be two out of 10 of my ads work. That doesn'tchange for anybody that's that they're full of, but you've got to it's the, for me, it's the project. That'sthe number one thing is, do we have an innovation? Is there anybody who wants it and what will theypay for it? Is there enough margin? You can do that. Then you can write the story that fits them.

Dylan (24:05):

That's quite a methodology. And I think it's beneficial for kind of really anybody to kind of have thatthought process first, before really diving into the full execution side of things where I think that's killerthere. Nobody does it. Yeah. Well, Hey, you got a course for it. Hey,

Ron (24:19):

That's true. The marketing mercenary and it's the ratings for it are off the charts. And we have, in fact,you have several friends that I know that have graduated from, and they're all excellent marketers. Andthey attribute that to not me teaching them what to think, but me teaching them how to think man

Dylan (24:41):

Kind of segment there. I mean, it's, it's, it's it's group so many things together. I freaking love it. It's,that's, that's some value packed info right there. So, you know, to kind of conclude it all, you know, welove to take a page out of that. Rich dad, poor dad book, you know, some sort of financial principles,some sort of financial tip. So, I mean, we kind of spoke about this a little bit before on a kind of thoselarger kind of brands there. I think this one's going to be super good. Y'all buckle up, but it's kinda moreof the GoPro kind of how that kind of, you know, started more or less how you kind of got budgeted andhow you kind of framed it all out to kind of really allocate those budgets. So, I mean, go ahead andrelease the beast, man. I was looking forward to this part.

Ron (25:19):

Yeah. I think that it's, it's um, unusual and it was a brilliant strategy and it came from Nick Woodman.Um, I don't know if everybody knows Nick or as aware of Nick who started GoPro. His, uh, father was inthe venture capital business. And so they put together a deal that was super, super smart. And here'swhat happened is we created, uh, they created a company where they took out, they got investors tosign up for, I think, six or $8 million. And they only had to tap into that money when they needed it. Andso they would tap into it at the very beginning. And when, when they tapped into that, then that thatfund would get X amount of stock. But the cool thing about having a fund with $6 million in it that you'renot giving the stock away to, of having it, just sit there in the bank, so to speak is when you go out tofactories and to retailers and to media companies, you immediately have a line of credit because youcan back up your order.

Ron (26:27):

So your marketing is the thing that has to sell your product, because if you can create cash flow, evenbreakeven cashflow, when you've got $6 million in the bank, you never have to tap into the $6 million.And that's essentially how GoPro made it happen and how Nick ended up with the lion share of thestock on IPO day. And the trick was it's, it's no different than you going to the bank. We all know if yougo to the bank and you have no money and you have debt, you're not getting along. But if you havegetting a loan from anybody is proving, you don't need the money. If you need a loan for a milliondollars and you have a million dollars in assets that makes going to be like fine, let's assign your assets.But if you need $4 million, the Mexican go, no, we'll get you $1 million.

Ron (27:16):

So you're always in this situation of proving, you don't need the money. And that's, you know, the only,the only places where that you escape that is in the automobile industry, where all you do is pay thedepreciation upfront as the down payment. And they can always come take the car out of the financialfinancial principle that permeates the world. That's a law. You can't borrow more than you got. Andthat's what they did. So as you move forward, think about who you bring in. And when, because you cando an awful lot on your own until you need that strategic partner. And then you're looking for a strategicpartner that you can have a conversation with and say, Hey, we may need $3 million, but we don't needit. All right. Now we'd like to be responsible stewards of your money. Could we have $300,000?

Ron (28:06):

And for that, we're going to give you a founder share of X and the company. Now, if I, if I have acompany and I decided to evaluate a $10,010 million and it takes $300,000 in, then I've got a prettyreasonable. Like I've given decent stock and I've got the operating capital that I need. But if I took it into3 million, I would have just given up 30% of the company instead of 3% of the company, right? And thenwe, if you're responsible with the 300,000, then you get your wheels going. But your relationship withthat lender now is they always get to invest at their share level until you have a different round. Sowhen you have a different round, that's how shareholders disappear is. Let's say, I said did that oncewith them. And then I went back to the welfare, another 300,000.

Ron (29:03):

So I've got, I'm giving away 6% of the company at a $10 million valuation for $600,000. Now I go to myround, my next round. And I have, I moved the valuation up based on success because I spent there$600,000. Well, and I'm gonna say, now it's worth $20 million. So they're happy because their 600,000just became worth 1.2 million. Right now I can go out to the next lender and go, I need 1.2 million or 3%.This is how for 6% see how the, this is how its funding works. And you expand and you move from, fromangel investor to a round to be around. And you grow, you grow while retaining control until you get towhere you have something where you need, like you are on fire there's businesses. Let's say you'vecreated a personal care product. So you came up with a line of shampoo, just some, some kind of specialshampoo, conditioner, hair care product.

Ron (30:10):

So you get up to a level and you go, this could go and retail in order for it to go and retail, I'm going tohave to fulfill purchase orders for $20 million. And we don't have $20 million. That's when you go to areally big investor and go, we are about to get into retail all over the United States. We're buying, we'retaking the shelf space from head and shoulders or whoever the hell it is. We want you as an investorbecause the minute we take that shelf space, Procter and gamble is going to notice we're going to be inthe planigram. They're going to be off and we're going to sell to them. So point you actually wantsomebody who's a big investor and you want to give away the majority of your company, which soundsinsane. But here's why if you give away say you own 30% of your company and you got to a hundredmillion dollars a year.

Ron (31:06):

If you give away another 30% to that person, now you now have 40 and your shareholders have 60, butwho's responsible and concerned about the sale. The new guy that just bought the last 30. Oh yeah. Andif he's really rich, he's got a team of lawyers. That's going to negotiate with Procter and gamble in a hellof a lot better way than you can. So he knows now it's his responsibility to close that deal. And these arethe kinds of business mechanics we work on all the time. He closes that deal. And that's where you getthis $300 million payout, right? But as a 30% shareholder now, or 40% in my own company, do I have toshow some of my shares? No, he can go do that deal with Procter and gamble. And I can take a payoutat that point for 15% or 20%. So I can get a $30 million payday and still retain a 20% ownership in abrand that pop Procter and gamble operates.

Ron (32:16):

So that's how, that's how a person becomes a billionaire. This is how it's done is if and most people arelike, I got to retain this. I got to control this. And I'm like, no, you have to strategically give away the right amount of your company to the right person who can facilitate the transfer of ownership to a built amultinational corporation. That's how you end up with your own Island and jet man. There's a verystrategic path to do it. And most people don't understand it because they've never seen it. But Iobviously have seen it so much. I can spout it out here. Like this is how it's done now. Proctor andgamble is running my con company. They're in charge of the debt. They're in charge of the inventory.And I get a check every quarter for 30%, 20% of the profits as they sell it globally in a distributionnetwork. Because ultimately that's what you're looking for is building distribution networks. Yeah,

Dylan (33:16):
My gosh, we have no, it hadn't no one dive into this in depth in this type of scenario, man, that was, that was, this is going to the amount of highlights I got with this man is going to be everywhere. Oh my gosh.

Zach (33:31):

This episode is brought to you by funnel Nash's add card, the only charge card exclusively for your digitalad spend. And if you're an ad agency that manages seven or even eight figures a year in media and adspend for your clients, and you're looking to double your profits over the next six to 12 months, thencheck out ad card. See the typical agency model is this. You charge 10% of your spend. We make 10 to20% margin at the end of the day. So that's really one to 2% of your clients spend that is profit in yourbusiness. The easiest way to double that is a really find a way to earn in that one to 2% cash back of thecard that is on file of your clients has ad account. And before ad card we had to do was invoice all yourclients for their ad spend up front. She's really difficult on a cash flow basis and very difficult ask. Andthen you had to put the card on your own Amex or whatever card of choice to get that level of valueback into your business with add card it's entirely different in streamline. You simply get your clients onadd card and make yourself the agency of record, and you'll get the cash back. As long as you'remanaging the ad spend, it's a great way to double your profit without doing any additional work. Checkit out.com.

Dylan (34:50):

I mean, we even had, um, Josh from tristano.com on and you know, he's got a huge teeth whiteningbrand. He's getting, you know, scouted by like Colgate KRAS, all these big brands. So it's kinda cool tosee how that can kind of go hand in hand there. But man, I was, I was valuable there.

Ron (35:05):
Yeah, he's a good guy and he's done a brilliant job with that brand. I've been watching the heck out of it and the last year or two, and it's been great. It's great to see somebody succeed like that. So

Dylan (35:15):
Yeah, he was our episode ones and he would just open up the kimono the amount of value and there was just,

Ron (35:22):

But that's flattering. I'm glad, I'm glad to be on the same level. Um, and that's, for me, that's kind of likewhen I come on a podcast is for me, it's my sample platter. Like I want you guys to, to think, and I wantyou to learn how to think. And if at some point I can help you learn how to think hunt me down becauseyou know what I've told you, but you don't know what I haven't told you. And I've told you the tip of theiceberg.

Dylan (35:53):

Oh gosh, well, man, this has been super juicy. So I mean, how can people kind of get in touch with you?What do you have next kind of, you know, everybody can have an idea of what the future holds for youand kind of how to get in touch with you. And of course you got plug in that course.

Ron (36:06):

Um, I never tell what I'm working on in the future because I'm smart. I will tell you that I'm working on intele-health and anybody who wants to have a human heart and help help their brother or sister outshould go there. If you want to, uh, reach out to me, you can hit me up at, uh,[email protected] If you are interested in the marketing mercenary program, you can eithergo to Ron Lynch, marketing.com or you can send me a Facebook messenger because I do have a privateenclosed group called the marketing mercenary on Facebook. That is not visible to folks unless theyknow the secret handshake. So if you reach out to me and ask me for the secret handshake, I will giveyou that.

Dylan (36:56):
Well, Ron's of an absolute pleasure, man. Thanks for dropping on dropping such good value bombs in here. Thank you for having me. Appreciate it.

Zach (37:07):

Thanks so much for listening to another episode of the rich ed or ed podcasts. If you're like me andlisten to podcasts on the go, go ahead and subscribe on Apple podcasts, Spotify, YouTube, and Richard[inaudible] dot com slash podcast. And if you absolutely love the show, go ahead and leave a review anda comment share with a friend. If you do take a copy screenshot of it, email me [email protected] me you left a review. I'll give you a free copy of the rich add or add book to learn more about thebook. Go to rich ed [inaudible] dot com to leave a review that a rich ed or at.com/review. Thanks again.

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About The Podcast

Jason Hornung is the founder and Creative Director at JH Media LLC, the world’s #1 direct response advertising agency focusing exclusively on the Facebook ads platform. Jason’s proprietary methods for ad creation, audience selection and scaling are responsible for producing $20 million + of profitable sales for his clients EVERY YEAR

Zach Johnson

Zach Johnson is Founder of FunnelDash, the Agency Growth and Finance Company, with their legendary Clients Like Clockwork solutions. Under Zach’s leadership, FunnelDash has grown to over 5,000+ agency customers managing over $1 Billion in ad spend across 41,000 ad accounts on. Zach’s private clients have included influencers such as Dr. Axe, Marie Forleo, Dan Kennedy, Dean Graziozi to name a few. Zach is also a noted keynote speaker and industry leader who’s now on a mission to partner with agencies to fund $1 Billion in ad spend over the next 5 years.

Dylan Carpenter

Dylan Carpenter

Dylan Carpenter will be diving into what he and his team are seeing in 200+ accounts on Google and Facebook when it comes to trends, new offerings, and new opportunities. With over $10 million in Facebook/Instagram ad spend, Dylan Carpenter had the pleasure to work with Fortune 500 companies, high investment start-ups, non-profits, and local businesses advertising everything from local services to physical and digital products. Having worked at Facebook as an Account Manager and now with 5+ years of additional Facebook Advertising under my belt, I’ve worked alongside 60+ agencies and over 500+ businesses. I work with a team of Facebook, Google, and LinkedIn experts to continue to help companies and small businesses leverage the power of digital marketing.

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