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:
http://www.davincivirtual.com/
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
- Reilly
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
Hi Reilly
Sounds like you have a plan now, its looking interesting.
And P.S I always look for one on a post lol
James Reilly
I might start using them all the time then.
P.S. I mean this thing
P.P.S. What the hell does it stand for anyway?
postscript (from post scriptum, a Latin expression meaning “after writing” and abbreviated P.S.)
Dont you just love google and to think i did latin at school lol
James
You know I still laugh when I see ‘James Reilly has commented on your blog’ in my inbox.
Let me be the first to encourage you to keep up the rants.
That was good stuff!
Plenty more to come whenever I have enough scotch in my system.
I’m so happy to hear you’re stepping up your game in the biz world Reilly.
You’re one of the FEW who know what the heck they are talking about, and you always give more than expected.
Your creations have already earned me several thousand dollars, with more sales daily. Thank you!
I look forward to your new business model – and of course meeting you in person.
Keep up the great work!
Ken
Hey Ken,
Always a pleasure, you’re still my number one competitor!
Reilly,
Dude…this is one original and refreshing piece of content….to tell you the truth…I have seen your products on the warrior forum…however most of the products came for cheap and with resell rights. That kind of gave me the impression, they were cheap products.
Its awesome you are restructuring your business…and without doubt, this is the start of something really good…wish you good luck with everything!
Ron Alex.
Just imagine the list I’ve built selling them so cheap. When you can deliver better than the competition at a price the competition can’t match you run everyone else out of business.
At least that’s what I learned in that american gangster movie.
It sounds like you have a very solid business plan Reilly, and certainly very good products.
Looking forward to becoming your affiliate.
Always here if you need a lab mouse:)
Terry
The affiliates will get to be the new lab mice…
Yea…I like the P.S.
Good rant and I agree with ALMOST everything that you said.
Anton
ALMOST everything, care to elaborate?
Sounds like a great plan Reilly.
However there may be a chink in your plan.
I think it better I PM you what I believe it is.
It will be very interesting to see what your grand plan turns into for your self and those smart enough to be on board with you.
Looks like this is gonna be a great ride.
Robert
I’m all ears, send me a message: reilly@reillylabs.com
Message sent Reilly.
Oh yeah. I like the P.S. Reilly. I use them a lot in my writing when I want to be sure a certain point will more likely be read and remembered.
I read some where that copywriters uses them so often because they have a very high “read” rate.
After our lengthy chat a few weeks ago, I have no doubt that you’ll be very successful in your restructured business. Like a little puppy who follows his master, many who follow your lead will find success too.
New York is not so far away, perhaps we’ll meet face to face soon. See you at the top my friend.
John
Hey John,
Drinks are on me when you make the trip!
Sounds great, extra strong espresso is my drink of choice. My guess is their are some good espresso bars in New York too.
Looking forward to following you on your journey – inspiring stuff
P.S Best of luck (not that I think for a second, of course, that you’ll need it !)
Thanks Richard,
I used to say luck has nothing to do with it, but the truth is luck is everything.
The more action you take, the more luck you’ll have. This is why fortune favors the bold.
P.P.S
Does anyone else use pirate bay and notice the latest ad for a download manager? A timer that automatically saves the installer… Brilliant! Can’t wait to start using this.
P.P.S – just bought eBody and Fat Loss List Builder
P.P.P.S
Weight loss, and soon gambling and adult dating are my main income producers. Stick with them for the money, the IM niche for the fun and the connections.
Reilly you’ve spoken like a regular person without the usual IM buzz surrounding it and I appreciate that. You could have turned that one post into a big splashy product with the whole launch and blah blah blah !
But you chose to share and give a real “business” sense to this online thing. Thanks and keep it up.
Thanks Thomas,
Hmm I guess I could have made that into a product… I’ll be sure include a ‘donate’ button on the next post
Wow Reilly! Thanks for your honesty on spilling the beans on how to set up a business the right way.
You are an inspiration on your business acumen, and I hope to meet you in the not to distant future.
Please keep mentoring us with your weekly rants.
Reilly, you have been quite busy. This post conveys a slew of valuable information, some of which I can instantly use; other parts are a bit advanced for where I am at the moment.
Congrats on your new LLC. I am looking forward to a continuing a great affiliation.
Thanks for all your help!
Reilly – it was obvious you were up to no good -; because you had promised to hit us with a product a week from the beginning of January. Just as well you took time out to restructure as it let me enjoy my summer holiday from which I’ll return with a clearer view of how to operate my ebiz this year. Thanks for setting out your rationale for how and why you do things. You are rare in that regard – the best we get from IM gurus is some high priced course on wealth that JVs are currently trying desperately to shove down my throat until I puke …and unsubscribe. I love your work, mate.
The ‘product a week’ plan will be in full force soon!
I’ve spent the last month and possibly the month of February setting up the business side as well as redesigning the brander I use.
“When you can deliver better than the competition at a price the competition can’t match you run everyone else out of business.”
This sounds like a mantra I can use for my offline consulting business!
I look forward to you running everyone else out of business then!
I am delighted for you Reilly. Thanks for your time on the phone recently too. You cannot help but be successful (you already are of course, but I mean big time).
“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.”
Best advice I’ve ever heard from an internet marketer.
Good luck with your new venture Reilly… but you don’t need luck, you know what you’re doing.
Stuart
Hi
Does the update products come with the default search function? realy like the sound of that.
Pity us overseas members, US seminars are way out of sight. So here’s a virtual handshake to you in your virual office!
‘P.S.’ comes from “post script” means after writing
George
Ultimately the ability to use adware, default search pages and search engines and everything I have talked about will be included in the tool.
In my own business I can implement these things quickly, the challenge here is making it easy for the average non-programmer.
Alot of customers have a hard enough time setting up the basic branding and before I release anything too technical I need the proper support system in place. I also need to make this as user friendly as possible, not an easy task since I am not used to creating consumer products. Everything I have built in the past has been for my own use so the interfaces are command line and very complicated.
It’s a one man show right now, but trust me by the end of this year, Reilly Labs will be the go to place for non programmers to use the super advanced strategies we ‘ethical hackers’ use
I can see that the whole paradigm is a change in MINDSET rather.
Start the right way …. Think right and do right.
Reilly, keep up the rants, for God’s sake! Sheesh…we all need the fresh and honest approach we’ve come to love and expect from you!
Nine days…first round’s on me! ’nuff said!
Ross
First of many rounds, should be a crazy trip.
Oh dear, I arrived back home too late. Went to buy your Brandable Fat Loss List Builder WSO and it was closed (think I missed by about 15 mins)… I gather from that you must be in Eastern Time (I’m in Perth, Australia).
I previously bought your eBody The Virtual Personal Trainer WSO (and Web Stats Ninja WSO). At that stage did not realise that there was a weight loss one available. Is it possible to add just a ‘skin’ and emails to the eBody package to make it into the Fat Loss List Builder or is it a completely different package (obviously has a different Sales Page as well).
Or will it be available later at the full price of $57.00?
Cheers
Chris
The fat loss list builder is actually a different application, it is a body fat calculator rather than a ‘diet generator’. Right now all offers are closed, they will be opened one at a time when I get the updates finished.
Thanks for the reply Reilly.
Looking forward to it.
Spot on with this write-up, I actually think this website needs way more consideration. I’ll in all probability be once more to learn rather more, thanks for that info.
Hey Reilly –
Just bought 2 of your products in the last 24 hours and about to do a 3rd one. I am curious if you are open to developing custom software products for clients?