Tyrone Interviews James Schramko from Internet Marketing Speed

Uploaded by tyroneshum on 06.10.2010

Tyrone: Hi everyone, itís Tyrone from Tyroneshum.com. Today Iíve got really special guest on the
call today and his nameís James Schramko. And, I wanted to get James on the call today
because Iíve been speaking to James previously and heís got a really, really interesting
story that I wanted to share with you and with my business here and also his business,
we all like to look at creating a lifestyle and also looking at generating different types
of passive income so I thought why not get James whoís also an Aussie, from Australia
and also I wanted to share with you his story so welcome onto the call James.
James: Yeah, thanks for having me.
Tyrone: I know weíve met previously in the past in a conference and also sort of chatting
over FaceBook and Skype a few times as well, I want to let the audience know for people
who donít know who you are, maybe just give them a background story where you started
from and how you got into Internet Marketing and where you are now?
James: Sure well IíveÖI started part-time like pretty much everyone else and I found
it very, very difficult like everyone else. And, the fact was I was running Mercedes Benz
dealerships in my dayjob. It was lots of stuff and it was quite intense job and I figured
that I should be going to apply my business skills to the Internet Marketing side of things
realizing that the Internet gives you a lot more opportunity for automation and for leverage,
I just found it so hard and I tripped away with it for several years until finally I
could break free for full-time work. My goal was to match my income which since I was on
$300,000 a year which was quite objectiveÖ
Tyrone: Yes.
James: And that was about 2 years ago, I quit my job then. And, ever since then the Internet
business has been growing and sort of led to other opportunities as well. As you know,
hardly any business understand Internet Marketing so Iíve got myself in a position now where
pretty much anyone I want to work with is happy to collaborate or give me equity in
their business, or profit share thatís why I joined forces with them. So thatís a bulk
on my business now, itís getting involved with businesses and turn them into more profitable
business using especially Internet Marketing skills.
Tyrone: Nice, so what led you to create what youíve created right now because obviously
youíre on a pretty good income back in working at Mercedez and I think a lot of people would
probably envious of you because you get to drive nice cars too and show nice cars as
well. So what was the reason for the change?
James: Well, ahh you know if you rate any of these cashflow type youíd realize that
having a job isÖpretty much just stalling your life. You know, I was kept at $300,000
I couldnít make million dollars a year doing that job. I wasÖI had no equity in the business
and it didnít work for me when I was working for the business. The day comes that you stop
working for the company, your income stops and thatís not a good solution for anybody
so I would suggest that the only true freedom comes from having your own business. I wanted
to have more income, I wanted to have more freedom and I wanted to be in control because
youíre not in control when someone else is telling you what to do and when you have to
work for other people and thereís no way can possibly automate it and leverage it unless
you get some form of equity or become a business owner. So that was my driving course.
Tyrone: Absolutely. Well thatís really amazing. I just wanted to ask you maybe make a quick
comparison so as for people out there, how many hours a week were you working inÖor
in your job at Mercedez Benz? How many hours are you currently doing right now?
James: Well towards the end, I was doing aÖprobably about 50-60 hours a week in my full-time job
because I was in the general management role so Iíve managed to widdle it down a bit from
70 and I was doing about 3-4 hours a day on my Internet Marketing business on top of that,
7 days a week.
Tyrone: Wow.
James: So I was probably pulling some pretty hefty hours but I could see the light in the
tunnel. And if you fast forward that to now, when you consider things like sleeping inÖ
Tyrone: We love that.
James: And you know, doing things like writing and biking and non-work activities, Iíll
probably be pulling in about 4 hours a day on my Internet business. So the main change
was I dropped my full-time job and became a lot more productive with my Internet marketing.
Tyrone: And a lot of people will probably go wow, how did you do that? And I know itís
probably going to be more than an hour long to be able to talk about that and get into
details. But I think youíll be really cool just to maybe share with them how briefly
in your story leading up to becoming where you are right now to be able to go from 60
hour a week down to 4 hours a day at most. I mean thatís something that you choose to
do. Can you notÖcan you do after work in your business now?
James: Yeah because of the business model and the strategy that Iím using, I am working
more than I would have to do and it also comes back to what sort of income level you want
to grow your business. So if I was happy just to make 3 or 4, $500,000 a year, I could probably
work for 30 minutes a day because I have about 12 different businesses that Iím operating
at the same time and each one of them is a 6-figure business. So if I wanted to pay it
down to some of the more active ones, then it would reduce my work. For example, I have
a mastermind group, it takes me 2 hours per week and it generates in excess of $150,000
a year. So if I just wanted to do that, I could work no more than 2 hours a week. The
reality is Iím building a 7-figure empire here thatís on its way to 8 figures so Iím
well into the ones now for the million dollar plus turnover, and my goal is to get to $10M
a year. For now, Iím prepared to pour in to 4 hours a day. Ah, how did I get to that
scenario? Iíll give you the very shortest version.
Tyrone: Nice.
James: I became an affiliate, I built websites selling software and I got very good at the
whole affiliate thing offering bonuses, creating free newsletters, getting traffic to it from
forums and blogs and articles, and PayPerClick and search engine optimization. And then I
created products that helped people do those things and then I became I guess an Information
Marketer and built up my customer base slowly and steadily full of buyers. So I just always
focused on buyers and after I got that, you know every step of the way I was able to lock
in that sort of profit and then add extra services and extra pricing levels. So I built
a membership community which is one of the staple businesses I have, and thatís very,
very profitable business. And from there I was able to leverage into masterminds, mentoring
and then finally building a sort of doing business deals where I can assume companies
and do them over and sell them basically. Itís been an escalating hierarchy.
Tyrone: And you said that itís taken you roughlyÖhow long ago? Was that you said since
you left job, itís about 2 years, how long has it taken you to get to where you are now?
James: I think Iím up to about 5Ö5 probably coming up to my 6th year now.
Tyrone: 6th year on this. Thatís great. I just wanted to ask you as well, if we take
a step back, you said you started off with affiliate marketing and you started to also
promote different affiliates something like that for anyone whoís really just looking
to start out and whoís wanting to create like a lifestyle that youíve created for
yourself, what would you say something that you could recommend them start off with this
likeÖobviously because youíve done quite a lot there and thereís quite a lot of things
that youíve got in your business, something just starting out would like to know what
would I do first?
James: I think every single person watching this should learn how to sell. If you look
at all of the most successful marketers and business people, they are able to sell. And
for us weíve called it copywriting but if you can learn how to sell if you can compel
people to take action, regardless whether itís your product or someone elseís you
can make it attractive for people to move forward, then that is skill that is going
to translate in everything you do whether itís on your sales letter or your blogÖexcuse
Tyrone: All right.
James: Never answered the phoneÖand thatís probably a fundamental skill.
Tyrone: Okay, and on top of that obviously you havenít done all this yourself have you?
I mean have you got a team thatís back and behind you to help you do all these stuff
as well?
James: Yep, like most people I started by myself and thereís only so far you can get.
One of the first things I outsourced was article writing because I really donít like writing
articles, Iím a very slow typist and itís not my core skillÖ
Tyrone: Me too.
James: And thatís it so you know as soon as I need that out, I did the numbers in my
head. I thought well if I get, if I pay extra to have them written then I can make more
than that in commission I should be doing that. And thatís where I really started to
grow my business and then from there, I outsourced a help desk which allowed me to provide more
services because service-related businesses require more support but theyíre also more
profitable. Then I started outsourcing design, because Iím not a good artist that canít
use Photoshop and it was ridiculous for me to spend this time trying to learn how to
create banners and stuff when I can just pay someone to do it. Then, I eventually moved
into having other people build my websites and run my PayPerClick and now I have teams
all around the world. Iíve gotÖa whole team in India who do just traffic and search engine
optimization, I have a team in the Philippines who do everything from transcriptions, design,
website construction, content, traffic, backlinks, optimization conversions, analytics, videos,
and account creation, they do everything. And, I have a designer in the UK and I have
an article writer in Australia and I have an event manager as well who helps me prepare
workshops because there are high-profit items right for product creation and also for customer
appreciation. And, thatÖthat into the business, you just need to have support unless you plan
on working 22 hours a day.
Tyrone: Absolutely and no one likes that right?
James: No I thinkÖ I think most. You know even if youíre passionate about it and you
love it and you happened to do the work, you still want to leverage the work that you do.
You wanted to be the highest value activity at all times. I know you write about that,
you talk about the 80/20 rule and Parkinsonís Law and itís always that same thing. Jay
Abraham talks about it too. The best and last purpose for my time is toÖis to be the strategist
and the marketing guy, thinking of how I can leverage all of my resources in better.
Tyrone: Exactly, I totally agree with you on that one because I think we all have the
potential to do it. Itís just the question is, no one really likes to sit back and think
about things at times to be able to get other people do it and once you can leverage that
and take out whatís in your mind because thatís the biggest challenge I think. Itís
getting whatever is in your mind, putting it down on a computer, or mind map whatever
you want to do and finding a team to be able to execute basically to be able to get the
work done for you.
James: Yeah I think thereís two parts to that Tyrone. One is for new people, they say
what would I outsource because they donít actually know what the right things are. Thatís
one of the big challenges, it took me a long time to figure out what the right things are.
And, once you know what youíre supposed to be doing, once you figured out a way to convert
and make profit then you feel like a frustrated artist like how can I get more of this out?
How can I be doing ten times of this you know. Once you know the trick that makes the money
come in, you want toÖyou want to do as much as you can like for example yesterday, I bought
34 domains from somebody that are all around the same product and topic, now I canít wait
to have these developed and up there and getting the traffic design. Now I can make money from
them, thereís no question because I already half a dozen websites in that exact same market
so the big tipping point is knowing how it works. And for some people, they might have
to it themselves originally to get that profit. As soon as you get to a point where you can
make $1 turning to $1 plus something, you know a dollar ten or $2, thatís when you
should outsource like crazy. Because for most people, the big is the chicken and an egg.
You know, Iím not going to outsource so that I make big profit but you want to make big
profit until you outsource.
Tyrone: Exactly.
James: If you want to get into the high, high income bracket, youíre going to have to get
someone else to do some heavy lifting for you especially if you can do some other trials,
if you can get a high income back from a low investment in what it cost to get it done,
you should be doing it as much as you can.
Tyrone: Absolutely, and I totally agree with you on that one. IfÖa lot of people do struggle
with starting to outsource which is what I talk a lot about. And, I think the thing is,
is that I always have it like look, if I start it all over again and I was to run my business
from scratch again, the first thing I do is to find teams around me to get the work done
because I know Iím lazy and I know that I have always wanted just to sit back, and just
look and enjoy. But when you want the work to be done, youíve got these teams around
you where they can allow you to sit back and just all you have to do is thinking and strategizing
everything in mind