The Ambition Show Podcast

Business Models: Outsourcing | The Ambition Show | Episode 31

What was once a misunderstood and looked down upon business practice has quickly become the standard. Outsourcing could be the operating model you need to start or grow your business. 
 
Outsourcing describes when a business obtains a product or service from an outside provider, rather than handling it in-house. As a small business, outsourcing allows you to get more done and trust important tasks and processes to professionals, without having to actually grow your full-time team in a significant way.
The Pros and Cons of Outsourcing
PROS
Keep Payroll low
Easier Tax process
Reduces operating expenses
Cost effective
SBA article: https://www.sba.gov/blog/10-small-business-functions-can-be-easily-outsourced#:~:text=Outsourcing%20describes%20when%20a%20business,team%20in%20a%20significant%20way.
CONS
Brain Drain
Increase Unemployment Rate
Investopedia article: https://www.investopedia.com/financial-edge/0312/4-ways-outsourcing-damages-industry.aspx
How Outsourcing generates revenue
Free up time for FTEs 
Outsourcing as a businessRecruiting and Subcontracting
ReferralsBring value to your network
Earn income from affiliations
I grew my team into an agencyOutsourced SEO and Graphic Design services
WHAT TO READ “Idea to Execution: How to Optimize, Automate, and Outsource Everything in Your Business” by Ari Meisel and Nick Sonnenberg 
How to purchase the book: https://www.amazon.com/Idea-Execution-Optimize-Outsource-Everything/dp/1619615053/ref=asc_df_1619615053/?tag=hyprod-20&linkCode=df0&hvadid=266029226073&hvpos=&hvnetw=g&hvrand=7768083813816042855&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9021734&hvtargid=pla-439805368311&psc=1&mcid=1c643f157f1c3a70b5f0169a75d800d9&gclid=Cj0KCQjwiMmwBhDmARIsABeQ7xQrHZ_-wGpA7kgVVg5lpuO-i9WC-fRad_LYMjUf7ptaWLJMD1HG6xEaAoAyEALw_wcB
 
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Business Models: MLM | The Ambition Show Podcast | Episode 30

We all have that friend - “Man, I just started a businessman, and I’m looking for people like you to be a part of something bigger.”
 
Whether it's insurance, finance, beauty, or fashion, we have all had a run-in with someone selling something. Still, instead of selling products, they are more focused on growing the number of members, distributors, direct sellers, or whatever their organization calls them. In this episode, we examine the business model of Multi Level Marketing.
 
WHAT IS MULTI-LEVEL MARKETING
Multi-level marketing (MLM) companies are involved in selling products and services by using a non-salaried workforce in a pyramid-structured commission system.
These companies are also referred to as referral or network marketing companies. According to a 2021 report issued by Grand View Research, the size of the MLM industry stood at $189.71 billion by the end of 2021.
The industry is projected to experience an annual growth rate of 6. 1% from 2022 to 2028, reaching a substantial size of $286. 7 billion. As of 2021, the Asia Pacific region holds the largest market share at 45%. MLM companies are gaining market share in key economies such as China, India, and Indonesia. 
Many MLM models are legal, but there are also illegal operations run as pyramid schemes, and this has cast some negative light on legitimate MLM businesses.
Multilevel marketing is a legitimate business strategy that certain direct sales companies employ to market and sell their products and services.
Existing members are strongly encouraged to promote and sell their offerings to others and recruit new individuals.
Participants are paid a percentage of their recruits' sales.
Members receive some form of commission at all levels, meaning the more layers there are, the more money people can earn.
The FTC investigates MLM programs to ensure they do not operate as illegal pyramid schemes.
 
IS THE MLM MODEL A SUCCESSFUL MODEL, AND ARE THE BUSINESSES SUCCESSFUL
According to the Yahoo Finance MLM market analysis report by Amia Aheer, he identified these are the top MLM companies in the world are
Herbalife
https://www.herbalife.com/en-us
Natura & Co
https://www.naturabrasil.com/
Amway
https://www.amway.com/
References: https://www.insidermonkey.com/blog/5-biggest-mlm-companies-in-the-world-1116272/
https://finance.yahoo.com/news/17-biggest-mlm-companies-world-144157353.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAALUQQwrOz7DRxaxj-F2ZEnK3SyRmlLb6ZuksZG_RBXNJXwv4IOFY2fYmR8LegX2tDydu4cWeRvqGJ5MdTrxvdS1mbbIxJnpv64pX0nQXieaxvaKn_wafN0cGS0Qv0T984eQfHkSQIjor4r2sIjXfT7_GgiUXAZglbBWJqXewVGH7
MLM participants
Direct sellers, distributors, agents, members, consultants
MLM companies
Tupperware, Amway, Primerica, Herbalife, Mary Key, Avon, Zumba
Real numbers and reality of MLM
Article on Fundera https://www.fundera.com/resources/mlm-statistics
They cited these top 10 stats:
About one in 13 adults have participated in multilevel marketing (MLM).
There are about 6.2 million Americans actively involved in “direct selling.”
The MLM industry grossed $35.4 billion in 2018.
As of 2009, 94.2% of Direct Sellers Association (DSA) members use MLM.
Wellness and cosmetics/personal care are the top direct-selling categories.
52% of MLM participants say the company’s representation of making a profit is “not too accurate” or “not at all accurate.”
At least 50% of MLM participants drop out after one year.
It costs an estimated $25,000 to launch an MLM business.
66% of MLM participants invest less than $1,000.
Only 25% of MLM participants turn a profit.
 
ELEMENTS OF AN MLM
https://www.investopedia.com/terms/m/multi-level-marketing.asp
References
Product/Services
Growth opportunities
Emphasis on Independence/Working Independently
System in place
Compensation Structure
WHAT TO READ “Ponzinomics: The Untold Story of Multi-Level Marketing” by Robert L. FitzPatrick 
About the author
Robert L. FitzPatrick
Reference: https://www.amazon.com/stores/author/B08PY935QG/about
How it relates to our topic
Ponzinomics by Robert L. FitzPatrick, author of False Profits, is the first comprehensive account of how "multi-level marketing" was created in America, escaped criminal and civil prosecution, and spread worldwide. It is the first book to investigate the multi-level marketing phenomenon profoundly and to fully explain how the legitimate business of "direct selling" was turned into deceptive pyramid recruiting. Ponzinomics dissects the elements that distinguish "multi-level marketing" from legitimate sales and reveals how a "business" could become a delusional belief and a pyramid scheme, a pseudo-business model. Ponzinomics reveals how multi-level marketing helped to lay a foundation on Main Street for the presidency of Donald Trump with a program of pervasive deception, financial self-destruction, authoritarian leader-worship, and economic make-believe. Ponzinomics is a discomforting look at the threads of American culture, business, and politics that were woven into what has become the largest scam on Main Street.
How to purchase the book
On Amazon: https://www.amazon.com/Ponzinomics-Untold-Story-Multi-Level-Marketing/dp/0578443511
WHAT TO WATCH “Betting on Zero” Written and Directed by TED BRAUN 
About the author
Ted Braun
Reference: https://www.imdb.com/name/nm0105862/bio/?ref_=nm_ov_bio_sm
How it relates to our topic
A critical review of the growth and impact of Herbalife Inc. It investigates the allegation that Herbalife is a pyramid scheme. It follows Bill Ackman's short investment in Herbalife, which is ostensibly a billion-dollar bet that the company will soon collapse. The documentary follows billionaire hedge fund titan Bill Ackman and several former Herbalife distributors after Ackman takes a billion-dollar short position in Herbalife, alleging it is a pyramid scheme destined to collapse. The film also chronicles Ackman's feuds with Herbalife CEO Michael O. Johnson and investor Carl Icahn and the resulting controversy over both the short and Herbalife's business practices.
How to purchase the book
Free on Tubi: https://tubitv.com/movies/100004596/betting-on-zero?start=true&tracking=google-feed&utm_source=google-feed
 
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Business Models: Membership Model | The Ambition Show | Episode 29

Nothing is more powerful than belonging to something greater than yourself. Being a part of a community is a powerful feeling, and people are willing to invest all that they have to be a part of something bigger than themselves This is why the membership business model is so powerful, and if done correctly, you can grow your business from a small operation into something that makes a real impact on people’s lives.
Today, we go over the essentials of building a membership business.
Let’s get it!
 
WHAT IS THE MEMBERSHIP BUSINESS MODEL
HOW TO APPLY THE MEMBERSHIP MODEL TO YOUR BUSINESS
EXAMPLES OF SUCCESSFUL MEMBERSHIP MODELS
 
We have all heard the term, "Membership has its privileges." This was American Express company's classic slogan. All because, back in 1954, the American Express credit card was first issued, and it was an early pioneer in promoting the benefits of paid memberships. The membership model not only provides advantages and perks for its members, but it also offers several significant benefits for brands:
 
WHAT IS THE MEMBERSHIP BUSINESS 
Benefits of the membership model for consumers
Benefits of the membership model for businesses
Lower ongoing business costs by amortizing original content development costs when scaled across thousands of members.
Predictable recurring revenue streams through membership fees and related purchases.
Enhance customer loyalty and retention through a heightened sense of community and connectedness to the brand.
Leverage community influencers to build trust and shape a better consumer experience.
Direct feedback from members who are more likely to share their opinions because they experience an intimate connection with the brand and feel they have privileged access.
Access better data by evaluating member behavior and fine-tuning the membership model through personalization and content refinement to gain more members, reduce costs, and increase retention.
Additional revenue opportunities by offering for-sale merchandise, often through in-app purchases.
 
HOW TO APPLY THE MEMBERSHIP MODEL TO YOUR BUSINESS
Type of membership models
Here are the 10 steps you need to take into account when building your membership model or program:
Step 1: Identify your audience
Step 2: Pick a membership model
Step 3: Choose your membership software
Step 4: Reuse content
Step 5: Create premium content
Step 6: Build the website and your brand
Step 7: Create a member onboarding strategy
Step 8: Decide on a pricing model
Step 9: Promote your membership site
Step 10: Monitor results
 
EXAMPLES OF SUCCESSFUL MEMBERSHIP MODELS
Examples outline in Melissa Diaz's article: Membership Marketing
https://www.linkedin.com/pulse/membership-marketing-5-powerful-case-studies-brands-nailed-diaz/
Amazon Prime
American Express
 
WHAT TO READ “THE MEMBERSHIP ECONOMY” by ROBBIE KELLMAN BAXTER
Robbie Kellman Baxter assists companies in leveraging subscription pricing, digital communities, and freemium models to cultivate stronger customer relationships.
Over the past 21 years, she has worked with over 100 organizations in 20 industries, such as the National Basketball Association, Hagerty, The Wall Street Journal, and Microsoft.
This was her first book, “The Membership Economy: Find Your Superusers, Master the Forever Transaction & Build Recurring Revenue,” she knocked it out of the park because this has defined the massive transformation from ownership to membership and the rise of subscription pricing. It was named one of the top 10 marketing books of all time by BookAuthority.
She hosts the podcast “Subscription Stories,” where she sits down with business leaders to discuss how they use subscription pricing and membership models to redefine the most prominent industries and generate predictable recurring revenue. She also developed and taught nine video courses for LinkedIn Learning on business topics ranging from innovation to customer success and membership.
Before launching her agency, Peninsula Strategies, Robbie was a strategy consultant at Booz-Allen & Hamilton, a New York City Urban Fellow, and a Silicon Valley product marketer. She received her MBA from the Stanford Graduate School of Business and graduated with honors from Harvard College.
How it relates to our topic
This is the non-guide book, guidebook.
Not speaking over your head. Get all the ins and outs of building a membership model into your business from a person who has worked with some of the most successful businesses with membership models.
Learn from their success and their mistakes
 
Three (3) key takeaways from the book and how it helps the listeners
Build an online community your customers will love
Transform freemium users into superusers
Create a self-generating revenue stream
 
How to purchase the book
https://bit.ly/3SlHTWR
 
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How to Make Passive and Residual Income as an Entrepreneur | The Ambition Show | Episode 28

Being a freelancer or contractor can be unpredictable. The same goes for being a full-time employee. You can live from paycheck to paycheck just as quickly as from gig to gig. There isn’t a fundamental difference between the two. Today, we will go through a few of the opportunities you have to leverage technology to generate residual income and get the most from your time. Right here on the Ambition Show.
 
What is Passive and Residual Income exactly
Why is it easier to generate passive income as a full-time employee than as a business owner
Methods to create passive income and residual income as an Entrepreneur 
 
What is Passive and Residual Income exactly
Passive Income defined by the IRS
Passive income is obtained with little or no work and is frequently produced by individuals and businesses, such as through investments or peer-to-peer (P2P) lending. It is distinguished from earned income by the Internal Revenue Service (IRS) as money generated from an entity with which you have no direct involvement.
Residual Income Defined
Residual income refers to the money you have after you've taken care of ongoing expenses like your mortgage, credit card bills, utilities, groceries, and car payments. This extra money can go toward investments, debt payoffs, savings, or a vacation fund.
Examples of each form of income
Passive Income:
Income earned from affiliate marketing on websites that you own
Create a course that requires people to purchase it after you produce it and post it for sale
Residual income:
For example, assume that a worker earns a salary of $5,000 but faces monthly rent payments and car payments that add up to $1000  and $500, respectively. Their Residual Income is $3,500 ($5,000 – ($1000 + $500)). They did nothing additional to earn this income; it is only what is left over after their expenses have been paid.
This is why most people confuse residual income with passive income. They are not the same at all.
Passive income is really what most people work for, which is more challenging for business owners (entrepreneurs, freelancers, and small business owners alike) because they spend more money to start making money.
 
Why is it easier to create Passive Income when you’re an employee:
Easier to prove income
Easier to use residual income to fund passive income sources
Passive income examples
Dividends from stocks
Real Estate investments (easier to acquire funding due to more accessibility to show proof of income)
 
Methods to Create Passive Income as an Entrepreneur
Create a course or tutorials
Create a blog with affiliate marketing, advertising, and sponsors
Income from e-commerce is a form of residual income, NOT passive
Cost for materials
Cost to create, manufacture, and/or produce products (Cost of Goods Sold)
Dropshipping or Print-on-demand is more aligned with Passive Income
 
WHAT TO READ “Entrepreneurs Playbook to Passive Income” by Ehren Muhammad
About the author
I have been an entrepreneur my entire life. And since I was young, my focus has always been earning from my passion and creativity.
How it relates to our topic
I created these processes to help generate income for my team and me between gigs, pay bills, and bring in more revenue to reinvest into the business. These plays are designed for the ambitious working in any industry. 
Three (3) key takeaways from the book and how it helps the listeners
How to create passive income processes
Understanding all the tools available to you no matter how much money you have
Leverage your current skills and knowledge to profit from
 
TAKE-A-WAYS = FREE OFFER(S)
Best websites to learn about the basics of stocks and investing
Bankrate - https://www.bankrate.com/
Investopedia - https://www.investopedia.com/
Stash - https://www.stash.com/
 
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Opportunity Entrepreneurial Vision | The Ambition Show | Episode 27

You see what others don’t. You see the possibilities and what could be. This is what separates the entrepreneurs' mindset and outlook from others. This episode will examine how to make that vision a reality and how some of the best did it.
Henry Ford did not invent the wheel, but what stayed true to his vision was that more cars could be on the road. Henry Ford made mass production possible by introducing the automobile assembly line. With the creation of the assembly line, his successful business practices, and a vision that inspired thousands, Henry Ford cemented himself as a legend in the business.
Your vision should guide your decisions in how you network your education and see the possibilities that others do not.
 
Background and personal commentary on the topic
Be observant of the opportunities that surround you
Opportunities are problems, challenges, and issues that people face
The more often that a large 
“There are various ways in which entrepreneurs can identify or discover entrepreneurial opportunities. These ways include solving a problem, observing trends, and identifying gaps in the market.”
The resources you will need are research, test audiences, 
The tools you will need are Canva or Miro 
 
Learning from experience; what will the listener take away from this episode
Successful entrepreneurs have been doing this for years, and this can be done across any industry.
Sara Blakely: Create a solution
Forced to wear pantyhose in the hot Floridian climate for her sales role, Blakely disliked the appearance of the seamed foot while wearing open-toed shoes but liked how the control-top model eliminated panty lines and made her body appear firmer. For her attendance at a private party, she experimented by cutting off the feet of her pantyhose while wearing them under a new pair of slacks. She found that the pantyhose continuously rolled up her legs, but she also achieved the desired result. At age 27, Blakely relocated to Atlanta, Georgia, and while still working at Danka, spent the next two years and US$5,000 in savings (equivalent to $9,000 in 2022) researching and developing her hosiery idea, which would become nearly half a million-dollar brand, Spanx
Nick Woodman: Focus
GoPro CEO Nick Woodman's idea was born from a personal problem: not being able to take great pictures and videos while surfing. After months of intense focus, a prototype was born. Woodman is now focused on building a bigger platform to allow GoPro users to share videos easily. Founded 12 years ago, GoPro has made Woodman worth $1.3 billion. The company name is almost synonymous with the product category like Xerox once was with copying.
Shantanu Narayen: Adaptability
Businesses that become stagnant usually die. Adobe Systems CEO Shantanu Narayen looked down the road and didn't see a future that included distributing software on physical discs. He decided to change the widely-used Adobe Creative Suite to a subscription-based model. He wasn't the first, as Netflix had added streaming to its DVD rental services. But Adobe's graphic design empire was built on its box sets and annual releases of new versions. Narayen boldly changed his company's distribution model, and the growth in subscription members has proven its success.
WHAT TO READ “Outliers: The Story of Success” by Malcolm Gladwell
About the author
Malcolm Gladwell is the author of five New York Times bestsellers—The Tipping Point, Blink, Outliers, What the Dog Saw, and David and Goliath. He is also the co-founder of Pushkin Industries. This audio content company produces the podcasts Revisionist History, which reconsiders overlooked and misunderstood things, and Broken Record, where Rick Rubin and Bruce Headlam interview musicians across various genres. Gladwell has been included in the TIME 100 Most Influential People list and touted as one of Foreign Policy's Top Global Thinkers.
How it relates to our topic
Three (3) key takeaways from the book and how it helps the listeners
In this stunning new book, Malcolm Gladwell takes us on an intellectual journey through the world of "outliers"--the best and the brightest, the most famous and the most successful. He asks the question: what makes high-achievers different?
He answers that we pay too much attention to what successful people are like and too little attention to where they are from: that is, their culture, their family, their generation, and the idiosyncratic experiences of their upbringing. Along the way, he explains the secrets of software billionaires, what it takes to be a great soccer player, why Asians are good at math, and what made the Beatles the greatest rock band.
Brilliant and entertaining, Outliers is a landmark work that will simultaneously delight and illuminate.
How to purchase the book
Amazon: https://amzn.to/3IbAPWL
 
TAKE-A-WAYS = FREE OFFER(S)
Link to Canva Whiteboard for Brainstorming 
 
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Small Business Websites 101 - Get Customers and Rank High on Google | The Ambition Show | Episode 26

The business standards nowadays are a website and social media presence; without these two business essentials, you will find it challenging to find new customers, more importantly, it will be challenging for people to find your business. Let’s remove those challenges in this episode of the Ambition Show
If your customers cannot find YOU online, they will find someone else who satisfies their needs. Yes, business sounds like dating when I put it like that, and dang, it is. 
Business is all about relationships, and the best relationships have good communication. Listen to your customers; they know what to expect and find value in your products and services. 
Your website and social media pages are tools for this to make your life easier. So, use the technology to make your business run smoothly.
We will cover all the basics your website should have and how they will work with your social media pages 
 
Host,  Domain, Website
Website basics to get more customers
Domain name
Shorter the better
If not .com then brand it
Industry or product specific suffix
SEO
Know your keywords based on search
Regularly check your website’s performance
Local SEO
Claim business listings
Confirm all your information is accurate
 
Social Media basics to get more customers
Accuracy
Consistency
Damage from local SEO errors
Brand name
Missed sells
Bad reviews
 
WHAT TO READ
Three (3) key takeaways from the book and how it helps the listeners
https://www.wpbeginner.com/
https://neilpatel.com/
https://blog.hubspot.com/
 
Should I write this book? Let me know in the comments if you want me to write the book of web design basics that anyone can follow and use. No experience is needed. 
 
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How to Crush Local Marketing and Grow Globally | The Ambition Show Podcast | Episode 25

Your best customer could be right around the corner, down the block, or across the street. You need to know where to find your ideal customer so your ideal customer can see you, too. You must know your customer. The easier this is to define, and the better you understand who wants your products/services, the more straightforward the road to success will be. In today’s episode, we will learn how to master the smaller scale and grow from there.
LOCAL MARKETING
What is local marketing
How to master it and use it
USE LOCAL MARKETING TO GROW
How to find the right markets (audiences and customers)
What is local marketing?
Local marketing refers to the marketing activities a business uses to get its products or services in front of people in its local area and engage new and potential customers within a specified radius to turn them into diehard fans. Typically, the local area will not be greater than the city where the business is located. 
ARTICLE: The Ultimate Guide to Local Marketing
Going outside your city or metropolitan area requires more investments, and typically, the wants and needs of customers outside your city will be very different. This is why local marketing is the best place to start to understand what the wants and needs of your products and services satisfy.
WHAT TO READ
“The Local Marketing Handbook: Five Fundamentals to Increase Business and Impact Community
” by Roberto Torres
How to purchase the book:
https://www.amazon.com/gp/product/B091J8LKG6/ref=dbs_a_def_rwt_hsch_vapi_tkin_p1_i0
 
TAKE-A-WAYS = FREE OFFER(S)
List of the most important local business directories
Link: https://www.emproltd.com/post/the-ultimate-listings-57-online-local-business-directories
Discount on List Local, the Local SEO tool from Ionos
Link: http://aklam.io/sj9yFO
 
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The Truth About Passive Income | The Ambition Show Podcast | Episode 24

Fact - Most ideas of “Passive Income” are not passive at all. The concept and pursuit of passive income is making a lot of people stress out and even GO BROKE. We dive into what passive income truly is and methods to obtain it as an entrepreneur right now - let’s get it!