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Most of us started a business to get some sort of freedom… whether it’s time, or location, or financial freedom. And the cool thing about a successful launch is that it can help you make a lot of money. But if you’re not thinking ahead to how that money gets spent, your business might be in serious danger. Here’s what I mean…

Video Transcript and Relevant Links

So let's talk about money, because since we're in business, we're in business to make a profit. 

One of my rules of online business success and the way I put it is, “Don't buy that Ferrari.” And where that comes from is when I first really came up with this Product Launch Formula… first started teaching it.  Well, it can lead to some pretty outside success, some pretty rapid success, especially for the people back then who maybe had an email list but hadn't put together a good promotion. And then I taught Product Launch Formula and all of a sudden, people were making a lot of money. 

And I actually know someone, and this is a long time ago this happened, 2005, 2006. I'm going to get the numbers off, but he made somewhere around $200,000 in a launch, top line, those were his sales. That was absolutely this incredible windfall, it was amazing, he was so excited. So this person I know went out and bought a Ferrari for just under $200,000. So he spent almost every penny of this great big windfall, and never mind that there's going to be some taxes, nevermind that he's going to have some expenses in his life, nevermind that you might have some refunds. 

He basically spent the entire huge sum from his launch and bought a fancy car, which of course lost 50% of its value the moment he drove it off the lot and it was just absolutely… it was just insane. I couldn't believe that someone would go and do that and it just felt incredibly irresponsible. And of course, he can go do whatever he wants and whatever his thinking was, “Okay, I did that. I'm going to be able to do it again and again and again. I'm just going to make millions.” And maybe he did, I don't know how that story ends.

But the thing is I see so many people making financial mistakes in their business. A lot of people they say… “I just want to be creative, I just want to be an artist, I just want to help people or I just want to be a marketer or I don't want to worry about the money.” But the reality is you have to worry about the money. I've seen this over and over. People do a great big launch, the launch is over, they've made a lot of sales, but there's no money leftover. I mean, you have to avoid expanding your lifestyle, that's what going and buying a Ferrari, just boom like that, because that's expanding your lifestyle in a big way.

And the reality is a promotion doesn't make a business. Just because you put together a great promotion, doesn't mean you have a business. 

And this might sound strange coming from me because I'm all about launches and having great promotions and teaching people how to do this, and I'm a big fan of launches, but I'm not a big fan of building your life so all of a sudden you're dependent on that next launch. 

And especially once you really start building a business, if you've built a team, if you built some infrastructure, being dependent on your next launch is a recipe for disaster, because launches are great, they're amazing, I love them. I love how I've been able to help people with them, but it's not … you can't be dependent. It can't be where your next mortgage payment is coming from. Hopefully, it's now where your next payroll payment is coming from. You need to build a real business, not just a promotion.

So I actually thought I'd talk about money, it is a big issue. I thought I'd talk about it for the next couple of weeks. So if you're interested in hearing more about money, scroll down, leave a comment for me and let's go get ‘em this week.

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81 Replies to “When Do I Get to Buy a Ferrari?”

  1. I think it’s great that you’re talking about such an important topic! No one ever teaches us what to do when we have a windfall, and that’s why so many mistakes get made…

  2. Soooo true. I do launches for clients who have great products and services. I just had a client gross more than $50,000 in her first year of doing these launches, and she’s just as broke and stressed as she was when I met her. There’s no money left over for advertising, infrasturcture, or development. It all went to paying household bills.

  3. Pavel Vinitsky

    Reply

    Hi Jeff, it is absolute true. When you start to earn, especially when you have a serious lift up in income, the first desire is to grow your life expenses, to make something you couldn’t do before for yourself or your family 🙂

  4. I would love to know more about percentages to save and percentages to spend on the next launch advertising.

  5. Steve Etherington

    Reply

    Hi Jeff, thanks for this warning. Talk, think and plan about money is super important. I’m aware of this and it’s always goods to hear on this subject.

    Steve

  6. Fabulous video – some of the richest people I know are dressed in old coats and driving a battered old car. Some of the most stressed people I know are in the designer clothes with all of the latest things and everything on the credit card. But many don’t ‘see’ the rich in a battered car – but I was working in the community and knew the money they had behind them – there are more of them than you know!!!
    I have lived in fancy houses and been miserable. I have lived in dives with little heating and had the most fabulous time. Happiness, freedom, joy, friendships, uplifting relationships have litte to do with the cost of the your make-up, clothes or the fancy places you live. I want freedom. I want security. And this means keeping my personal spending low, low until there is a proven business machine and I have some really solid savings!!!

  7. Your right about the Money Factor Jeff.

    What could or should be done in situations when big amounts of money comes in to protect ourselves from ourselves to allow (the money) to be protected and preserved, while positioning ourselves to really get and hopefully keep the benefits of removing the money problems from our lives… While enjoying some of the benefits of our efforts along the way?

  8. This is so true Jeff…

    I have seen this scenario play out too many times with clients of mine. It is similar to winning the “Lottery.” If you have had no guidance on what to do with the short term “win”, you will soon be back to where you began, broke.

    Short term success is not the ending point, it is the beginning. When you grow your side hustle into a profitable long term business, make it a goal to eliminate your debt, and retire on your terms…

    Thanks for sharing this powerful message.

  9. Jeff, I’m eager for the next installment. I believe this topic to be an essential understanding that impacts the successful development of all online launches and offerings. I imagine a successful launch assumes a sacred trust between participating parties and how to nurture that beyond financial immediacy, deliver on that trust with life enhancing value and gain respect and support in the launch community for value provided is about as essential as breathing.

  10. Some real practical tips on how to manage your money once you get it – would be really useful!!! BTW – I just did a launch with an affiliate product after watching Launch Masterclass (2 years in a row) & brought in $4k / nose above waterline (grateful). Now working on my stuff. Thanks Jeff & team for all you are doing to help the rest of us get to the finish line!!!

  11. Absolutely. You must live within your means and that goes for your business. I consider that running and looking after my business is a lot like having parental responsibility – in it for the long term, nurture, and put its interests before mine; pray to god it survives and thrives.

    Oh, and that car! I wanted one too. I just love cars. In my case I worked damned hard for ten years before I finally got to afford a TWELVE year-old model of my dream car (and I love it). A small but measured reward for placing my family and my business first before myself. Seeing both thrive has been the greater reward by far.

  12. Jeff, thank you so much for that very sound advice. The decisions that we make with our PLF-induced success could be the difference between our families’ freedom or financial burden. My goal is to become independent of my salary from my 9-5, but still work regardless of my launch success. My job allows me to take my health plan for me and my spouse into retirement with 10+ years of service and I’m right at my 3-year work anniversary.
    I hope that we all heed your guidance and create the type of freedom that lightens our families’ burdens…not increase them.
    Thank you once again for your authenticity, which is one of the very reasons why I admire and respect your teachings,

    • Sir
      You said everything right.
      I am a school student and want to make money to be a little independent.
      Please tell some solution.😊

  13. Candy McCune

    Reply

    Thanks for hitting a very relevant topic of importance no matter if we have not yet launched or have hit big money targets. Your coach Barry suggested reading & implementing “Profit First” which is a gamechanger — he was so right on this. It is excellent!

  14. Dave Clarke

    Reply

    Hi Jeff, I don’t know when I subscribed to your list, it seems like I’m receiving emails from new faces every other day at the moment. Don’t worry, after watching your brief video I’m glad I did. It’s great to hear some common sense and practical advice for once, I still get the ‘laptop lifestyle’ type emails that promise to show me how to make a seven figure income whilst touring the planet and as soon as I open them and read that line they end up in the trash. It would be nice to tour the planet but I’d like to get a real and sustainable business going first, apart from other things I also own a retail outlet and trying to keep that afloat under the current climate is hard work so managing cashflow in any business venture must be a priority. Keep up the good work

  15. Hi Jeff, thank you, money is such a good topic. I’m always struggling between income and expenses, how to find balance. I just tried my first seed launch after following your free training just one month ago, and I got some people signing in !!! I’m very happy and very grateful for all you share. Looking forward in hearing more from you. Beatrice form Italy

  16. Definitely interested in hearing more on this topic Jeff, it’s the thing no-one talks about. I think it can give us a fear of success when we don’t know how to handle money confidently and sensibly. I know an artist who was headed for huge success but sabotaged herself out of a belief that in her family, they just couldn’t handle money and she’d probably waste it or mess it up if she got successful. Nowadays she’s living frugally and she’s given up on her art. I have a different end point in mind, and it would be wonderful to hear advice from someone with experience in this area.

  17. I say “don’t worry”; get concerned…get OVERLY concerned…

    But don’t “Worry”…bad for the blood pressure!

    🙂

  18. This is really generous from you to take time to teach about how important it is to use the money that is coming to plan the future, and use it carefully. It could be appealing to make big changes, but it is more important to make sure we will be able to cotinue to do what we want to do, by planing correctly, then having to find a part time job because we did spend every dollar we made. Again, Thanks for sharing your advice.

  19. Jeff, I’ve followed you online for several years. You are consistently right “on the mark” for publishing things that are so impactful. “A promotion doesn’t make a business” is what I needed to hear today.

  20. Financial Freedom from your business is a process. First, you have to build a strong base and then off that fill the four buckets of financial independence. The four buckets are:

    1. Having enough money for a great lifestyle.
    2. Having an adequate emergency fund when things go sideways (we like to see six months.)
    3. Having enough money for a fully funded growth program. This is not just money for marketing and sale, but receivables, inventory and equipment.
    4. Putting away enough money in a qualified retirement plan because the value of your business will not get you to retirement by itself.

    This is an area I’ve spent a ton of time obsessing about and if you don’t pay attention to this, you could find yourself without a business and without a way to eventually leave your business that has a positive outcome.

    • Darlene Atkinson

      Reply

      Hey Josh, I totally agree with your comment. While I was still employed I begin my lifestyle to pay off everything I needed to pay off, but a side 6 months of the money invested and live on 40%
      of the money that I received, I am in my 60’s us 50’s some people understand what it like to have and have not on both sides, so it wise to keep funds growing. Even if everything paid off, except business always require money to be re-invested over and over again yet see great returns.
      I been receiving Jeff walker’s e-mails or a very long time now.

  21. Hi Jeff,

    I’ve always thought I was the kind of person who could be level-headed following a windfall, but I haven’t had the chance to test this assumption … yet! :o) I love the idea of financial advice over the next few videos. Much appreciated!

    All the best,
    Andrew

  22. Scott Glover

    Reply

    Interesting subject matter. I have had about 5 or 6 mid to low five-figure launches. I am in the middle of a launch right now and while it will be half-way decent, it has not been as successful as some of my previous launches so far. This could be for a few reasons I am trying to sort out. I am hoping that I can establish some predictability in these launches at some point, but will not be buying a Ferrari anytime soon!

  23. Joanne Krok

    Reply

    Thanks, Jeff. This is an important subject, and I’d like to hear more of your thoughts on it – specifically, what to put aside for business operating expenses.

  24. Not only do people not talk about money, we don’t talk about it in the early stages of business. As you’re starting a business there are up front costs. But how do you structure those costs so that you and your business survive long enough to get traction? Then once you do get some traction, how to balance the financial aspects of business growth vs recouping the start-up costs and, oh wait, wasn’t I supposed to get some financial benefit from my business too? If we talk about these things at all, it’s often only in general terms. Putting a real, workable, sustainable plan in place is a whole different thing.

  25. Thanks, Jeff, to start with this important subject! I’m just writing my business plan with cash flow predictions. Having some numbers (%) and rules about how much I could draw from my new business would be very helpful!

  26. Yes very true a money mindset is vital , if you earn $100,000 and your outgoings are $100,001 you are worse off them someone earning $50,000 has the right mindset and is only spending $49,000 being self responsible is the first step in all areas of your life health , wealth ,relationships and mindset

  27. Great to hear you talking about money. As business people it’s definitely an important topic to discuss honestly. Keep it coming. I’ve got to cut it short because I just opened up QuickBooks and have some paperwork to do. Thanks – Casey Demchak

  28. Hi Jeff,
    Good content to think on in this video. Clearly its common sense to put the money back in your business until you have had multiple successful launches so that you know where you truly are financially. However, I would like more information on your comment of ‘promotion’ verses business, how do you explain ‘launch’ verses ‘promotion’? Lots of online business make the bulk of money on a launch, so, would like more info please, launch verses promotion.

    Delaya

  29. Hi Jeff, is always a pleasure listening to you.
    It’s always lock of knowledge, want to buy the world, just not time yet!!!
    Thanks for the tip, blessings!!!
    👊😃

  30. Through psychological research we now know that everyone’s personal approach to handling money is strongly influenced by your ‘rules of life’ imprinted into your subconscious mind between your formative years of one to six. Your life experiences are just frosting on top of your ingrained roadmap,

    This concept is critical to understand if you are on the path of self improvement and optimized use of your God given talents. The proof of the pudding here is to note how few individuals actually make a successful transition from their current state to becoming how they mentally picture themselves in the future.

    I believe the most successful road to achieving your goals is not a straight line, but rather a ring of concentric circles around yourself first. Only after you attend a self-admitted boot camp of making your life as ‘right’ as you possibly can, does the road to success seem to straighten out and you find yourself cruising in the fast lane.

    This topic by itself is deserving of an entire seminar……..but suffice it to say, there likely isn’t a military in the world that doesn’t start training without a bootcamp…………because this period is meant to prepare you for future training and real world challenges that will test your character.

    If your business is based on a clear vision and your personal drivers come from outside yourself, your reaction to instant wealth is not likely to include spending all of your current fortune. To realize that money in the hand gives you options………..and it’s those options that produce the freedom we all innately desire……this understanding will help to temper purchase urges.

    And Josh Patrick’s financial freedom methodology is certainly spot on, as well. In fact, it is inspiring to see so much understanding and support for this topic……..thanks to all for your contributions!

    Preparing yourself and a companion entrepreneurial business plan is the grind that is most alluring to skip over………..after all there must be an easier way, some magic hack, right? Lots of training, yes, but no magic bullet, no instant gratification or entitlement. Just a lot of diligent, focused hard work.

    With thanks to Jeff for showing us the way……..

  31. Good advice. I was a Business Broker for 45 years and saw many people buy a business and immediately started spending everything that came in on “play things.” Their windfall suddenly stopped when they had no inventory to sell . . . because they never replenished their stock. Even if your internet business is small, treat it like a business and businesses have expenses.

  32. Words of wisdom Jeff. One launch does not a business make. You have to be in it for the long haul. So having a passion for what you are selling is important. Not just a desire to make money. Being of service is your best North Star. Then you’ll know what to do with the money.

  33. Thanks Jeff!! Yes:-) would love to hear more about money from you and building a sustainable business that’s not completely dependent on launches. Love your work !

  34. Hi Jeff, As a manufacturer of over a decade, for us it was so important to have a cushion of money in reserve – mostly for machinery breakdowns as these can cost thousands of dollars when you least expect it – oh yes – and pulling in labour to keep the process going by hand. We have now progressed to a spare machine so we have time to fix whatever the breakdown was, but there is still that cost.
    Our process in building a manufacturing business in the eco field has been build a step to stand on and then move to the next step forward. We still have panic moments, but not nearly so bad as it was at the beginning.

  35. YES! Excellent idea! Talk about money management!
    Too many people who start out in business still have that semi-monthly or monthly paycheck mentality. They act like the next check is guaranteed. You cannot do that when you are in business for yourself! You have to think much broader and much farther into the future and P-L-A-N your expenses. Thanks for all our insights!

  36. Darlene Atkinson

    Reply

    Hey, Jeff, first I love you took care of your children you are and awesome dad, Next, I really enjoy your videos you are so you real and share it like it really is in people world. I am in my early 60’s woman here was my freedom moment Dec. 14, 2014 I put in my papers retire on great terms from the business I was employed at for 32 years they were great people I work longer than I should because I love my boss not dating love but this boss was so nice. So I waited and waited to retire knowing I could have sooner freedom to me was not needing to get up one hour 30 minutes earlier to catch the bus and get to work it was always dark going in the city street catching a public bus and going to work, Cars was nice but I never got a really costly car, or home or did I buy name brand clothes all I thought about was not having to get up before the sun rise go out in the street waiting for a city bus to take me to work. So my freedom was not having catch the public bus I arrived to my freedom in money, lifestyle and peace freedom joy grace and the oneness of it all I took on a project helping stray cats I find joy in feeding them they stay outside I really do not like cats in my house but they have a place to rest eat and sleep that my freedom.

  37. Lack of Cash FLow is absolutely the ‘killer’ of small businesses. If you don’t invest back, and save for the unexpected, you’re most likely going to SINK!

  38. Such a timely topic. Can’t wait to see more of your wisdom and thought-provoking ideas you will have to share with us! Thanks for all you do to help us be truly successful!

  39. Let’s keep up this important topic. We all need to hear your perspective – from the mouth of a hugely successful person. Thanks!

  40. Muchas gracias Jeff..me gustaria aprender mas sobre el manejo del dinero..saludos cordiales.

  41. Subaru Outback – the Ferrari for people who love the outdoors (and Canada) … and the state car of Colorado I remember Jeff saying one time

  42. Thanks for another critical message Jeff. I was once told. ‘If your outgo exceeds your income, your upkeep will be your downfall”. We must all keep our expenses in line. But we can only cut so deep before we have gone too far. One year our expenses were 50% of our gross revenue. The next year our expenses were only 23% of gross revenue. We cut our expenses by less than 20%. The difference was we focused on our revenue and increased it by just over 50% in one year. Without revealing any specific numbers, we increased our gross profit by 220% in the second year. I have developed the belief that if our business expenses are less than 25% of our gross revenue, we are stunting our growth. I also believe that if our expenses are over 35% we are crossing the line. Of course every business is different, but sometimes a little formula can help us stay on track. Thanks for bringing this topic up Jeff. I wish I had understood what you are teaching decades ago!

  43. This is what my launch (and lifestyle) is all about…understanding how money works and how to create your own financing system. It takes dedication and many paradigm shifts, yet complete financial freedom if done correctly. Great topic Jeff.

  44. Thank You Jeff. So glad to hear you speak on topics like this. When I got home from Launch Con I told my wife that the event revealed so much more than just marketing strategies. For instance, I really appreciated your Reboot/Quest presentation. Success gives Clues! You’re awesome. I am stoked I found your book, Launch. It’s a Gamechanger and gateway to business and family success.

    P.S. Thanks for the introduction to Eben Pagan.

  45. Debbbie Reid

    Reply

    Jeff, a great topic in these times. I think talking about struggling when things did go wrong. It is different for everyone. How to get something going when one’s world is upside down.. Zig Ziglar said ‘if you help others get what they want you will get what you want’.

  46. Gary Morton

    Reply

    A topic very often over looked, great points made. We all need to reminded that a launch is not a business. Thanks.

  47. As a single mom of a daughter age 13-19, I was near bankruptcy when I went to a debt counselling session and was told by the advisor I should be teaching other single moms how to budget so I now apply that and always will to my launches. Thanks, Jeff and your team. Blessed be.

  48. Jeanne Paglio

    Reply

    I agree with you 100%, Jeff. Putting your eggs in one basket without forward thinking is downright foolish, in my opinion. Making a difference in others’ lives is great, earning money is, too, buy the important thing to remember is the goal of building a solid foundation to keep building off. Thanks for this video, it’s important to remind folks to not buy that Ferrari 🙂

  49. Phyllis Rowan

    Reply

    Jeff. I appreciate your warning to safeguard the bottom-line in business. Also your observation that making money makes business a business. Otherwise. it is a hobby or voluntary service at some level. In theory, I tell myself that money is fair exchange for energy expended. In practice, I find it hard to price my worth. For older women who played secondary roles in life, it is hard to step from the wings into the limelight. This is not a matter of regret or resentment. But it is hard to expect recompense by right rather than by favour. I look forward very much to your videos about money, Thank-you for the invitation. Joyful wishes.

  50. Very timely Jeff – as your videos always seem to be! I’ve got an idea that – if it comes off – could lead to a big windfall. I wouldn’t even think of spending that much on a car though! I get the principle though of not assuming the windfall is going to repeat itself and becoming dependent on getting the same level of results each time – i think that can apply even when it’s a smaller windfall,

    I definitely am interested to hear more of your tips on handling money.

  51. Great one Jeff (as usual)!
    Since you got to know money, please tell us more about them, maybe in that way we could get to know more about money, and of course use more money for our goals.

  52. Thanks, Jeff, for your words of WISDOM.

    By not reinvesting that “windfall” back into
    your business (goose that lays the golden
    egg), you may as well kill and cook the
    goose.

    unfortunately, you only get one, maybe two
    meals. . .and then its over.

    Yes, please. More on money.

  53. David Crabill

    Reply

    I loved this video. Granted, with me you’re preaching to the choir, but you put it in such a way that it reminded me why I’m still following you many years later.

  54. Hmmm that’s pretty irresponsible I think but makes for a great story if this guy repeated his success and had even larger launches. Ha!

  55. I’m following you here from Brazil, I ask you to continue to share valuable information that will help us better manage our earnings. Thanks. JULIO COAST.
    I watch Erico Rocha his former student a lot.

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