Outsource Code Brunson.pdf

the outsource code

Interview with Russell Brunson

DR. MIKE:

Okay, guys. Thanks again for joining us. This is The Outsource Code. And

this is our first call with our guest. And we’re happy to have today Russell

Brunson. Russell is the owner of www.thesecondtier.com , which is actually

the largest affiliate training center online. And what’s different between

Russell’s affiliates and others? His tens of thousands of affiliates are actually

making money every month. While most people hope and dream for super

affiliates, Russell decided instead to develop and train his own and his

affiliates are currently earning hundreds of thousands of dollars in sales each

year. Hey, that sounds like something we all want here.

Russell is just an amazing outsourcer. He is actually the people we go to

when we ask advice for outsourcing. He’s just done some tremendous things

that he’s done, starting with his background from a college wrestler and now

into this mega Internet marketing empire. Right, Russell? So he’ll be sharing

with us his tips and tactics on how to better outsource.

So without further ado, Russell, thanks for joining us on the call.

RUSSELL:

Anti-fluff introduction. I appreciate that.

DR. MIKE:

Howie, you’ve got some questions you want to get started and start going

with?

HOWIE:

Sure. First off, Russell, thanks again for calling in. I wanted to see if you can

expand a little bit more on your introduction and talk a little bit more about

how you got into Internet marketing and describe a little bit more about what

your current business and operations look like. You know, number of

employees, offices, things like that so we get sort of a feel for how you’ve

grown and the scale of the current operations.

RUSSELL:

Okay. I started this business probably about four years ago now. And like

Mike said, I was wrestling at my university. I was wrestling here at Boise

State University, actually. And after my first year of wrestling here, I met a

girl and I decided I wanted to marry her, so I went and proposed to her and

we got married. About the time we got married, I realized that I didn’t have

any money. She wasn’t making too much money, and so obviously there

was a problem there. And I wanted to continue wrestling, but the way the

NCAA works is you can’t have any kind of job, and even if I could have a job,

there was no time whatsoever in between wrestling and classes and a new

wife to go and get a job.

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So I was trying to figure out a way to make some money, and actually there

was this local seminar. I got a flyer in the mail or something about it, so I

went to this seminar and they talked about Internet marketing and they sold

me a Web site for $5,000, a merchant account for $6,000 and then hosting

for $80 a month. And I was like $10,000 into this business. I was all excited I

was going to make a bunch of money. I went back home and I searched on

Google and found out that hosting is about $5 a month. You can get people

to design your Web sites for a lot less and that PayPal is free. So I called

them back up and cancelled it all real quick, but that’s how I kind of got into it

and kind of started saying, okay, I’ve got to figure out how to make this whole

business thing work.

I just tried to start playing with it and try to figure it out between wrestling

practice and doing homework during the hour or two a day I had. And

actually, with an hour to two hours a day, I was able to build a business that

was making high six figures a year while I was obviously going to school and

wrestling. Mostly that was because I got good outsourcing because I

obviously didn’t have time to do any of the work myself. So I found other

people who were willing and able to do that for me.

DR. MIKE:

Now Russell, when I was in college, I think I was able to make $100 a week

or something like that. You just said you made hundreds of thousands of

dollars a year?

RUSSELL:

Yeah, it was kind of a funny story, actually. Like I would sit there in my

classes and look at my teachers. And I got a C in my marketing class. I

remember sitting there listening--

DR. MIKE:

A C in marketing?

RUSSELL:

--and I said you just gave me a C. I’m like I made more money this semester

than you’ll probably make in the next five years. And it was just kind of a

funny thing. Actually, by the end of my college -- and don’t ever tell my

teachers this -- but I got to the point where I actually started outsourcing a lot

of my homework and projects, also.

DR. MIKE:

Uh-oh.

HOWIE:

Now that’s the outsourcing class that everyone needs.

RUSSELL:

Yeah. Maybe we should sell this as a college course. No, I’m just joking. I

didn’t really do that.

DR. MIKE:

Now, do people like -- I’m just curious. Did you tell your classmates and stuff

like this, or you just kind of kept it hush-hush.

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RUSSELL:

Some of them knew. Some of them -- I didn’t go out of my way to tell a lot of

them. Actually, it was kind of funny. One of my last weeks in college right

before I graduated, I did a presentation in one of my classes. And no one in

that class had any idea. We were all business majors and computer majors

and stuff, so I just did this little presentation about a Web site I had launched

and I think we made like $16,000 in the first three days. And the presentation

was on day three when I gave that presentation. And everyone was just

blown away. And the funny thing is that the teacher asked if anyone had any

questions, and this one kid raised his hand. He was like that just seems like

too much work. I was like, oh, you have no idea. You’ll be working for the

rest of your life and I had three or four people do this work for me. Anyway,

that’s kind of how college fit in with--.

DR. MIKE:

And you just graduated, right?

RUSSELL:

It’s actually been about a year now.

DR. MIKE:

About a year.

RUSSELL:

So, yeah, it’s been a year.

HOWIE:

And you graduated with -- you know, you probably were able to very easily

pay off all your college bills.

RUSSELL:

Oh, yeah, I didn’t -- they were paid off before we ever got into -- I had

wrestling scholarships, too, which helped, obviously. But the rest of it we

paid off pretty quick just through the business.

But since then, as I said, I graduated a year ago. Since we graduated, I’ve

brought on six employees, full-time employees who are working here for us.

And that’s actually I think what will be different between my call and a lot of

the other calls you’re doing is the fact that I moved a lot of my outsourcing

from finding people in other countries and stuff to actually finding people here

to work in my office and outsourcing things that way. The shift in our

business has been just awesome so far.

But yeah, as I said, we’ve got six employees now. We’re currently in an

office that’s about 1,500 square feet and in a week and a half, we’re moving

into our new office which is about 2,000 square feet. It’s got a whole video

recording studio and all sorts of stuff. So it’s going to be a lot of fun.

HOWIE:

Now can you talk a little bit more maybe going back a few years when you

started with your own Web site? And you put it up online and you realized

that you can refund this course that you mentioned that was $5,000 or $6,000

to get all this basic Web stuff. And you had your own site running, you had

your own merchant account and you started doing some sales. What was

the point where you realized that I need to get some help, I need to get some

outsource relationships?

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And how did you take that first step from not having a lot of Internet

experience, you know, going to college full-time, building a site making a little

money and then saying, okay, I need to hire someone to help me and then

take this to the next level. Because that’s a pretty big leap if, you know, you

kind of glossed over it and you made it sound really easy. But if we focus on

that for a second, that was actually a very big leap.

RUSSELL:

Yeah, definitely. In fact, like you said, it’s a leap of faith a lot of times. Like

when I first got started, my wife was making about $1,100 a month. And so

that was our sole income. That was 100% of everything. That barely

covered our mortgage and we didn’t even have enough to cover groceries.

But with that, my first project I outsourced because I didn’t know how to do

the work. I had tried affiliate marketing and I tried some things like that and I

couldn’t do it at first.

And so finally one day I had this idea for a product. And the product, if you

want to see it now, it’s www.zipbrander.com . What happened is I was sitting

there and I kept buying resell rights to all these people’s products. And I was

like, man, I wish there was a way -- well, first let me step back. The problem

with resell rights is inside all these products is there are links to other

people’s Web sites, right? The more of them I sell, the more free advertising

I’m giving to all these other people. And I remember sitting there one night

saying, man, I wish there was a way I could brand this file with my ad first.

Someone opens it and they see my ad, then they can go read the e-book,

because then they could open the software program.

I thought that and I said, man, that would be a cool product. So the first thing

I did was I tried to figure out how to create a product, and my major is

computer information systems. So you would think I would know how to

program, but anyway, I tried to figure out just the basics and pretty quickly I

realized there was no way I was going to be able to figure out how to program

this thing. It’s going to take forever.

The first thing I did was I went to Google and I typed in hire a programmer

and I found some sites in Google ads on the side. And I went there and I told

them my project. And they came back and they told me it would be $6,000 to

create the brander. And I was like, oh, just devastated. Like, well, there goes

that great idea right there. So I kind of gave up on it for about a month or so.

And then I was in some forum and someone mentioned a couple of just

project Web sites, like www.scriptlance.com and www.guru.com and

www.elance.com and some of these sites and said, hey, this is where I go to

get all my work done for me. I was like, huh, that’s interesting.

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So I think I went to Rent-a-Coder first, actually. I went there and I posted the

exact same project. I said, look, I had this other company who told me it

would be $6,000, I posted it there and some guy came and he said, you

know, for what you’re looking for, it would be really expensive. But if you

would make this one simple change right here, he said I could do that for

about $20. I said you could create the whole program for $20? He was like

yeah. I was like all right. So I gave him the $20.

Obviously it wasn’t much money. He created a program and a week later

sent me back a copy of it and it was awesome. It was better than I had

hoped for. And then he was like, well, can I have a bonus for making it so

good? So I ended up giving him $100 bonus. It cost me $120 and I had Zip

Brander, my first product done. And I sell that product to this day for $67 a

piece. So two sales and I broke even on all my programming costs and

outsourcing and that kind of thing.

DR. MIKE:

I like your margins.

RUSSELL:

Yeah. Yeah, it’s pretty nice. Yeah. So that’s kind of how I got into

outsourcing, that first project. And as soon as I did the first project, I was

hooked. Like I started just going and doing that for everything. I’d get logos

created and Web sites created and everything I could think of I started

outsourcing. Like I was saying, I didn’t have any time. So I would go to

wrestling practice. I would get back and I had to go to study hall. And for like

a half hour I would playing and talking to all these people who were the

programmers and stuff. And I’d go do my homework and I would come back

and check on them again. And it was hard to do my homework, obviously.

But I kept going back and forth and kind of go home at the end of the night

and go back on at night and just keep talking to these different programmers.

At least for me, the way I looked at myself was I was kind of like a contractor

building a house. I didn’t need to go learn how to do plumbing and frame. I

just had to be the guy that kind of pointed to all these people that had the

different parts. So I hired one guy and I said, okay, your job is to build the

graphics. Your job is to do the sales letters. Your job is to do the

programming. I just kind of pointed fingers and they’d give me back all the

stuff each week. I would put it together and there would be a little Web site

there and I would go and make enough money that I could start my next idea.

HOWIE:

And this was multiple projects? You’d hire one graphics guy and you’d give

him X number of projects every week?

RUSSELL:

Yeah. Well, basically I would just -- each time I had an idea, I would post that

project on one of these project boards. Someone would bid on it and I’d hire

them for that one job.

HOWIE:

Okay. So you were always hiring individual people, individual resources for

each job and each task.

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