I am closing all WSO’s as of midnight Wednesday night. The prices have been increasing in preparation for a series of updates to be released, and well the time has come
Last chance to get in at the current prices before the updates here.
This will force me to re-release each title with version 2.0 and complete the much needed overhaul on this business. When I started this whole WSO project, it was not something I took seriously! I just wanted to release a few ‘test titles’ on the Warrior Forum to see if it was worth turning into a real business.
Since August the WSO’s have sold over 1,500 copies, over 900 of which were in the last 2 months alone.
Not super impressive, but I think it is worth going back to structure this the right way.
I have decided to build a ‘real’ business around this and figure it would be good for my customers and blog readers (I swear I never thought I’d write a blog that people actually read) to see just how I set things up.
This is a good lesson in setting up an online business from the ground up, and rather than film myself doing it and selling it to you, I’m just going to rant in typical ‘run on sentence because I slept through English class’ Reilly fashion.
For starters some of you may have noticed the new domain. The name Phoenix Labs was used because at the time I was handling most of my business’ through a friend’s corporation, Phoenix Consulting. The problem is there are a number of Phoenix Labs out there, especially the guys who made peer guardian. This month I incorporated a new venture ‘Asgard Capital, LLC’ essentially a holding company for all my online businesses and investments.
All links and emails to the original phoenixlabs.net domain will forward here.
Now for those of you who are just starting out, if you plan to take your business seriously this should be your first step. Forming a corporation and writing a proper business plan. Step two is to RAISE CAPITAL!
I’ve been asked the ‘what would you do if you had no money and had to start over’ question a million times. Truth is I would not do anything different than when I started my online business almost 2 years ago. I put a plan together, got an investor and started a company, then called Kamm Reilly Enterprises. With the ‘silent partner’ we worked under the DBA “Stone Cutter Strategies” booking offline clients while I built my affiliate biz.
Now what a crazy concept! I didn’t sit there trying to make my first dollar doing ‘article marketing’ or SEO, I found an investor and hit the ground running.
Of course I could write this entire post about how to approach investors which I can tell you from experience is alot easier than you may think. A good friend of mine is putting together a course on how to do this very soon, not my course but I did have a small contribution.
BTW If you don’t know what the terms Corporation, DBA, ROI, Venture Capital, P&L, M&A, Bridge Financing, Balance Sheet, and IPO mean, I suggest you stop buying info products that will promise to teach how to make a million dollars a month and find a book on the basics of business and finance. The best education is found in your local library not in some hyped up, over-priced info product.
Professional differences with my partner had me transfer most of the companies assets to another friend’s corporation and do everything myself for most of last year. This month I finally established the new company and have been working on the next step, trademarking.
I like to keep everything official, my company will operate under the DBA ‘Reilly Labs’. All names, logos, slogans and everything in between will be trademarked and I am filing patents for some of the software I have been designing. I chose an llc because I will not be taking on any investors in this venture, I will be financing everything myself. If you want to go the investor route, an llc is most likely not the structure you want. You’ll need to talk to an attorney to figure out the best choice. Most of this legal stuff can be done pretty cheap here:
Ok so I have the corp, everything is trademarked and patents are being filed. The next step is to get an office with a receptionist to have a physical presence. Davinci Virtual is my choice here, a virtual location that will collect my mail, have a live receptionist route my calls, and even have my own office space! The coolest thing is you only pay when you use it. Now Asgard Capital LLC has an official location on Wall Street:
For the support desk I will most likely start using Kayako, which is the industry standard. Kayako has a ticket system, live chat, remote PC, and everything in between. I will eventually start hiring support personal who can easily be integrated into this system. You can check them out here:
Now I will be selling most of my software with your typical sales letters, adware, ppc, ppv, ppi, and using freeware to generate leads into an auto-responder. My ultimate goal is to have a sales funnel that converts higher than any in my affiliate business. The price of all my software is going to increase to the $97 level, with more premium titles being released higher or as a continuity (monthly fee) project.
I will still have WSO’s to release new titles, however ultimately my sales funnel will not include the Warrior Forum. I’ve chosen Nanacast as an affiliate tracking system, most of my current affiliates are familiar with it and I’ve heard nothing but good things. Affiliates will be paid not just on front end, but on all back end and recurring purchases (even WSO’s) their customer makes. I’ll also be designing custom software for affiliates to use. You can check out Nanacast here:
Everything will still be processed through paypal, however it is worth noting another opportunity I’ve been researching lately. Panama is one of the few (only I’ve found) countries that still allows ‘bearer corporations’. A bearer corporation is similar to a bearer bond, where the certificate holder is the owner of the corporation, no individual is tied to it. Banks In Panama as well as a few other South American countries will allow you to open accounts in a bearer corporations name, making it more anonymous than those old Swiss numbered accounts.
Now when you combine that with an off shore ‘high risk’ merchant account you are looking an anonymous way to process transactions in the businesses that most merchant accounts turn away, like online casinos and adult dating. Like it or not they are still the biggest two money makers online and here is a solid way to become the vendor rather than just another affiliate.
A Tech Crunch article in 2008 stated that Adult Friend Finder did $243 million in revenue for the first 3 quarters in 2008. I’ve personally met (shaken hands with) a guy who runs a $50 million dollar a year gambling site online. Time for Reilly to get a piece of that pie!!
The interesting thing about these niches as Adult Friend Finder found out, is that alot of VC’s stay away from questionable content. This screams investment opportunity…
Reilly Labs will continue to use paypal however.
Something else I want to mention is ‘key word research’. A friend of mine approached me recently about the possibility of building software that not only researches a list of keywords, but describes the best possible way to rank for them and actually helps you do it.
Now I was hard at work on this mortgage calculator that I was planning to release, but I put that ON HOLD to work on this latest project. In fact I will be doing this as a JOINT RELEASE in the next few weeks with the guy who gave me the idea.
Did I mention it will be brandable, include re-sell rights and will be the first tool I release in my new and improved branding system…
Now why did I decide to work with this individual, while being notorious for turning down almost every idea that comes my way?
For starters I will be meeting this person at the Practical Profits event in Orlando. If you didn’t get a ticket, I think it’s too late but take this as a lesson. People are more likely to work with you when you meet them in person. Truth is the biggest reason I’m working with this guy is because I will be meeting him in 2 weeks. Sure it’s a great idea, sure I think he’ll be willing to take action in helping to promote it, but the fact that I will shake his hand and look him in the eye is the biggest reason I am doing this.
Call me old school but I am 1000 times more likely to do business with people I meet in person. In fact I recently did an interview with someone else I’ll be meeting in Orlando who has conducted interviews with some of the biggest names on the Warrior Forum. When I asked him how the heck he managed to get them to agree to it his answer was simple:
I met them all at one of their conventions and bought them drinks.
Now I hate seminars, in fact I’ll be spending my entire ‘vacation’ at the bar, in the pool, or catching waves. I don’t go to these things for the presentation, I go for the networking. If you missed this one coming up, I strongly urge you to consider future events. Who knows maybe I’ll host one in New York some time.
Start your company the right way, raise capital by putting together a business plan and approaching investors, and meet potential partners in person where they hang out and talk about business. This is the formula for taking your business from an idea to that seven figure level and beyond
P.S. I always hate it when people write ps in their blogs and emails, but thought I’d try it on for size. Depending on how many comments I get, I may keep doing end of the month “Reilly Rants” about random crap that makes me boat loads of money. After all, it’s better than selling it to you in an info product