Here's a quick snippet of the conversation I had with my elite Inner Circle members about 2 moves I'd recommend taking to profit from upcoming recessions. Once a year my Atlas Group meets with me at a private getaway called Pirates Cove. That's where we share not only our big-wins with each other, but the strategies we're taking for the future. During my most recent trip, I spoke to everyone about how we did during the last recession, and the steps we're taking to prepare for and maximize our returns during the next recession.
Before webinars... I remember back then people did tele-seminars. And so I would get the tele-seminar recording. I had this little tape recorder that I got at radio shack and I would go hook it from my phone system. I click record and tape these teleseminars onto cassette tapes, right? So I taped all these cassette tapes and then I'd go on wrestling trips and we'd be in these vans, and we have like 8, 10, 12 hour drives and I get these cassette tapes out of these teleseminars I've recorded of people teaching some of these concepts when I first learned them.
Russell Brunson: Hey, what's up everybody? I hope you guys are all doing amazing today. Hopefully your businesses are growing, they're flourishing, you're having a bunch of fun. I actually had a really cool opportunity to fly out to Atlanta this week to go spend time with Todd looking at ClickFunnels 2.0, building out the roadmap, finalizing some core features. Anyway, some really cool things are happening. I'm super proud of what our team has been building, and I cannot wait to show you guys all the new stuff that's coming down the pipe.
10 years ago when we launched ClickFunnels originally, completely changed the market forever. And what we're about to do, I think is going to do that again. So anyway, there's the tease. That's all you get right now. But hopefully you're using ClickFunnels 2.0. About 33-ish percent of our customers have migrated over, which is amazing. So I know you guys are loving it. Yeah. So I'm super pumped about 2.0. And I just got back late last night and I thought about what could I send you guys as a podcast this week that'd be helpful.
And as you know, there's a lot of talk about an upcoming recession. And about a year ago I had a meeting with my Category Kings, we were at Pirate's Cove, and we're talking about all sorts of things. But I did a little session on the recession, how to prepare for it and what's happening. I think all of us thought it was going to hit harder and faster than it did, but there are a lot of government interference and interaction that are keeping things not seeming so bad. But I do think that there is a recession coming that we do need to be preparing for. And so I wanted to take that conversation from the mastermind group and bring it to you guys here just to help all you guys prepare your businesses.
And again, this was just a clip from a presentation I gave my Atlas, or excuse me, my Category King group at Pirate's Cove. And by the way, if you've won at least Two Comma Club, you should be in one of my mastermind groups. We have, as you guys know, our coaching program with the Two Comma Club X Coaching program for those who are anywhere from startup phase to a million dollars in sales. But as soon as you won your first Two Common Club award, you have the opportunity to apply to be inside my Inner Circle.
And there's three tiers in there. There's Inner Circle for Life, then there's a group called the Category Kings, and there's a group called Atlas. And each tier is based on how much revenue you're making. But it's a really cool spot that we get to go deep on these kind of things. So if this is you and you're someone who wants to mastermind with top level people about these kind of things, if you go to innercircleforlife.com, which is spelled out, I-N-N-E-R circle F-O-R life.com, you can go and apply to be part of that program because it's really cool. But anyway, I digress.
This conversation was from one of our closed door meetings, but I thought it'd be powerful to help you guys. So yeah. Anyway, with that said, here's a presentation to help you learn more about how to prepare yourself for the upcoming recession.
I had a wrestling t-shirt when I was growing up. I used to cut weight in and the wrestling t-shirt said, dominate, don't hesitate. And I remember last time there was a recession, I didn't know what that meant or what it was happening. I was just kind of like doing my thing. And it was interesting because in my business, was it 2008 or 2009 when all everything went crazy and nothing happened in my business. I'm like, "I'm a genius." And then a year and a half, two years later, and then I got hit. And it was like everyone just woke up.
And that was, is that a stage speaking? Yes. Big Tony hands.
But I got hit and I wasn't ready. And then we got through it, but it was brutal during that time. And I had other friends who were more aware of what was happening, and they just did amazing things. And then the back side of it, they just went crazy. And so this time around, as we're going through recession and all the things that are happening, I was just like, been trying to strategically think through a lot more.
It's always been fun because ever since we bought Dan Kennedy's company, I have a two-hour call with him every single month to ask him anything I want. And so we spent two hours just talking about this and going really deep on it, which was really fascinating seeing it from his perspective because he's like a billion years old and he's coached entrepreneurs like 12 different times. And the biggest thing he told me was ... How many of you guys have read Marketing to the Affluent? He's like, that's the Bible for the next three years. You understand that and master that, he's like, you'll just dominate.
But that whole thing right now, he's like, you're going to notice ... In fact, he said, this is the money pyramid and there's the rich, the middle class, and then the poor. And he's like, right now most of all of us are selling to the middle class right here. And he's like, what happens during typical recessions, the middle class moves down to here and the rich move up. And he's like, if you transition your messaging to sell these people, you're going to make way more money. If you stay here, you're going to struggle, because it'll be less and less money here. And so he is like, it's all transitioning.
It's fascinating. We were at ... Well, some of you guys know Bart shops for me once a year. So we were in Vegas shopping. And it's crazy, because if you look at all just at the malls, you look at all of these stores down here, that service, they're all empty. And you walk in Louis Vuitton, packed, there's lines. And the dudes, we were at Hublot or Hublot, however you say the name. The sweet watches I usually wear. And the dude's like, this watch is $185,000 into this. He's like, we can't keep them in stock. They're just flying crazy. And this market is booming right now and everything else is, and it's going to be, I think this will keep happening over the next two years, three years.
And so just thinking about that from us selling premium, that was Dan Kennedy's biggest thing. And marketing the affluent was like, he's like, that's the thing. Cause this is going to shift, this will go up. And he's like, this will pop back in a couple years, but if this is where you're focusing all your money, it's going to be ... That's the scarce thing. So that's like the big takeaway from Dan that was fascinating.
Now the other side of it that I'm, you probably notice that I'm playing in the lot over the last 12 months, is there's a whole bunch of people like us right now who are in business who don't understand things at our level, and they're all just kind of not wanting their businesses. And so we bought, I don't even know, six or seven businesses in the last 12 months. And so that's what I want to talk a little bit about, because it's crazy how basically people will just give you their businesses literally for free. You take them over and then you pay them from the profits. And it's crazy.
So there's the analogy ... Who here has ever heard of the analogy of the Rembrandt in the attic? Couple people. I figured real estate guys would know. So I was in Joe Polish’s room, this guy said that he, as if everyone should know, he's like, oh yeah, it was a Rembrandt in the attic, that's why we paid so much money. I'm like, what are you talking? I'm like the dumb kid. What did you say? So this is the metaphor's, basically. I'll tell you. Here's the metaphor. No, don't ruin it. I'm telling it.
This is the buildup. Okay.
Speaker 2: Welcome to class.
Russell: Yes. Okay, so this is what the analogy is. Basically, it's like there's someone who's got a house for sale. Let's say the house is selling for, I don't know, $250,000. And everyone's coming in to look at the house. They're like, ah, it's maybe worth that, maybe worth that. And some dude comes in and comes back out and I'll give you a million dollars right now. And the guy's like, it's 250,000. I'll give you a million dollars right now for the house, but we got to sign. Signs on it. And the question's like, well, how come everyone who came through was like, it's maybe worth 250. And one dude's like, I'll give you a million dollars right now.
And the reason why is the one dude willing through the house and there was a Rembrandt, original painting, up in the attic worth 40 million bucks. So he wrote the check for a million 'cause he knew that there was a Rembrandt in the attic. And that's what's happening right now. So there's all these businesses that are struggling, they can't figure this out, but because of what we know, there's a Rembrandt in the attic.
So a good example is John Reese. How many of you guys remember John Reese? I think I bought everything he's ever created now at this point. But he had one last thing is this funnel simulation software called Geru.com. He's been selling for the last 10 years and he's kind of just chugging along, can't quite figure it out. Recession's happening, sales are dropping, ad cost went up, he's freaking out. And I was like, hey, people who buy funnel simulation software will probably want to buy funnel software, I would assume. And also his business model's broken. The way he's selling it was not correct. He's like, he was doing it in this traditional way. I'm like, ah.
And so last year we bought Brad Callen's company. You guys remember Brad? He was Inner Circle for a while. But he had Dude Lee and TK and all these things. And Brad had taken a traditional software product and he just shifted the funnel a little bit. And it went from doing a million dollars a year to 40 to 50 million a year just by shifting the model of how the funnel was structured. And I looked at John's Geru.com and he was doing the wrong structure. And this is Rembrandt in the attic. I'm like, if I make these two tweaks to the funnel, I can model what Brad did and I can get the point where it's doing five, 600 buyers a day, who then obviously would want ClickFunnels.
And so there's this Rembrandt in the attic where I'm like, oh my gosh, that's worth a whole crap ton to me versus anyone else he tries to sell to. There's nothing, right?
But literally it's like here's the business, take it over, and then I want you to pay me this much for the next three years to pay it off. And so it didn't cost me any money, it was just like, here's the business, we take it, fix the model, blow it up. And then, yeah. Similar to Dan Kennedy, we bought Dan Kennedy's company. We had to pay for that up front, but the initial launch completely paid for it. And now it's just this revenue stream that's just pure profit force moving forward.
LadyBoss was kind of a similar thing. It was this Rembrandt in the attic where they'd tried earlier this year to sell it to a big company. It kind of fell through, and then Brandon and Kaelin just got tired, so they decided to shut it down. But it's like, because we know what we know, there's like a couple tweaks we can make that all of a sudden this thing becomes insanely profitable or valuable to any of the businesses.
And so I'm curious, have any of you guys in here purchased a business yet? Have you looked at it, or thought about it? Or you guys have a couple? That was the thing I just wanted to kind of stimulate, because right now there are more deals. I would say in the last 24 hours since LadyBoss went live, I'd say probably a dozen people who somehow got through all my gatekeepers that got to me were trying to give me their business. Like that fast.
Most people do not want their businesses right now. They're looking at what's happening and they're freaking out and they don't ... Anyway.
Speaker 2: It’s gotten harder.
Speaker 2: It just got…
Ad cost have gone up, product, everything. And so they're all freaking out.
And what people are also doing is they're just shutting it down. I mean, they're just walking away from it. One thing falls through and it's like, they’re done with it.
That literally, last Inner Circle meeting is when Brandon and Kaelin emailed their entire list like, "Hey, we shut LadyBoss down. Sorry, we're blowing inventory. We're just closing the whole thing down."
I thought it was a joke.
And I'm like sitting there twitching. They have a 1.9 million person email list.
All right, I hope you guys enjoyed the episode. I know the concept seems really simple, but I wanted to share with you guys just because it's really the big secrets, the big a-ha. It's how we prepare and protect ourselves during some of these times might be a little scary.
A lot of you guys know Dan Kennedy has been my number one mentor over the years in marketing business, even today he's still a person I study with. In fact, last week he was in Boise. We had a three-day mastermind with him, which was insanely cool. But he's got a book called Marketing to the Affluent. He goes deep into these principles and concepts. And so I recommend going and getting that if you want to read really good books at the bookstore. I'm sure you can get it on Amazon or whatever. But also if you want to go deeper, he did a whole course on marketing to affluent, and we give it to all of the Magnetic Marketing Diamond members for free.
So if you're not a Diamond member yet, if you go to diamondupgrade.com, you can go in there and basically almost all of Dan's courses over the years are in there for free. You can go and subscribe to them and it'll actually push it to your favorite podcast app so you can listen to it while you're driving or working out or whatever. But if you do, go to diamondupgrade.com, upgrade, and then go get the marketing to the fluent course. Push it to your phone, listen to it over the next couple weeks and I promise you'll help shift your mindset on how to prepare for this recession, how to make sure you're selling to the right people, and a whole bunch of other cool things.
So anyway, that said, I hope you guys enjoyed this episode and I'll talk to you guys all again soon. Bye everybody.