Passive Income Class #3: The Paid Patience Strategy

Good morning, everyone. Good to see you.

I had a little bit of a scheduling error here on Streamyard, so I'm just letting the niche know. But if you are letting the list know. So if you are watching live, please say hello in the comments while I fix a couple things.

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Stand by.

Good morning, Wes. Good morning, Keith. Hey, Keith. Good to see you. Morning, Herb. Good morning, David. What's up, Drew? Hey, Salame. Hey, Kristen. Hey, Chantal.

Hey. The rest of the list that is coming in in 19 and a half second.

And we're done. There we go. Good morning, my friends. Good to see you. Hey, Nick. Hey, Mike. Hey, Drew. Hey, Scott. Hey, Matt. Hey, Paulina. Hey, Audrey. What's up, Amanda? Good morning, Wes. Good to see all of you.

Good to see all of you. Thanks for hanging out with me on your Thursday morning. Today we're going to talk about part three of the cash flow investing piece of the strategy that we have been going over together for the last few weeks. And when we put all of these three pieces together, you're going to have a very predictable way to generate the kinds of returns that really excite you and to be able to do it in a way that doesn't risk the farm. So today we're going to talk about kind of the cherry on top to all of this. We've already gone over really the crux of the strategy. The crux of that strategy being long term increasing dividend paying stock, buying them at a discount, which means waiting for bad news and then reinvesting those dividends for a very long time. We also juice up those returns by renting our stock using a strategy called writing covered calls. And together those two things are the wealth and cash flow piece that I bring into a strategy that I recommend for entrepreneurs. I shouldn't say recommend because I'm not an advisor. And I know I joke about that all the time about kind of shielding whatever credibility I have, but I'm not here to recommend anything except for the fact that I've worked with thousands of entrepreneurs and I understand that they have a very different way of viewing their investing strategy than everybody else. And this is a strategy that I find is exciting enough and yet predictable enough for entrepreneurs to build long term wealth and develop passive income. So today we're going to put the cherry on top. And that cherry on top is going to guarantee that we buy stocks at a discount. It means that you'll never overpay for a stock. It means that you'll Never miss out on an opportunity because you were waiting too long. So this is the real cherry on all of this that ties it all together. And I think this is going to give you a really predictable strategy moving forward. Hey, Alexandros. Good to see you. Thanks for hanging out with me. Hey K. Hey Manny. Hey Raul. Hey Justin. Let me go ahead and put the if you are watching inside the Facebook group, I'm gonna drop our our green room link into the group so that you can come hang out with me in the green room if you would like. So give me nine seconds. Stand by.

There we.

Yeah, that's the right link.

All right, cool. So if you want to join me in the green room, there's a link inside of the Facebook thread, inside of the 1% Facebook group. Hey, Justice. Woohoo. Justice is our new product and community manager. We're really excited to have you, Justice. I'm very proud to have you on the team. Okay, so let me go ahead and bring over my fancy slides. You know, it's important if Ryan brought slides.

Oh wait. Oh, hold on. Thank you. Those of you who are freaking out at me while I pull up my slides, we forgot something very important. And we'll get to that.

What is happening?

There we go. There we go. There we go. Streamyard. Couldn't find keynote. But first, I know the real reason why you're here. You don't really care about buying stocks on sale. You're here for the simultaneous sip because that's the thing that makes stocks go on sale anyway. So if you're an entrepreneur, grab a cup or a mug, a glass of chalice this time to thank Tanker to thermos, a vessel of any kind. And join me as you bring your favorite beverage to your lips in something that we call the simultaneous sip. Join me now. Go.

Oh, there we go. Now we are officially live, everybody. So let's talk about the strategy that I call the paid patience strategy. Now the paid patience strategy is very simply a way, kind of an idiot's guide, if you will, to ensuring that you never overpay for stocks. It basically ensures that you always buy on a discount and it puts you in the best position for you to do this in a way that, that is putting you in the best chance to win. So this paid patience strategy is going to guarantee that you buy things at the price that you want to pay. This is just an idiot's guide to a smarter way to buy income producing stocks. Now my fancy disclaimer, you've seen it 100 times. Looks like this, I'm a dude on the Internet. Don't take my advice over the advice of a financial planner because I'm just an entrepreneur who has done this stuff for fun and I like talking about it. So take this as entertainment and education purposes only. Now, quick review of how we got to this point. We've been talking about dividend paying stock up until this point as the foundation of our strategy. And the reason why you may not hear about dividend paying stock a lot in the media is because on the surface they're very boring. The returns look kind of meh. On the surface we're talking 3, 4, 5% per year. So when you have those kinds of returns, it's hard to get excited about. When bitcoin's gone from 10 to 18,000 in nine minutes, it's very difficult to justify putting money into something that's producing a 4% return when you could be making 100% return when you buy the right thing. But we don't play that game. And we don't have to play that game because when you run the numbers on dividend paying stock, they're very exciting. So the foundation of our strategy is buying dividend paying stock at a discount and using what we call double compound interest, which is where the stock is raising its dividend and we're reinvesting those dividends to buy more and more shares. And those two things create this vortex of growth. Those two things together bring compound returns times two. The third part of this, or I have it as really the part two of the strategy is that we rent the stock using covered calls. Covered calls are a way for us to generate an additional 8 to 14% per year. So when we put these things together, we're often looking at a 20% return year one, oftentimes more when we reinvest that cash flow to buy more shares. Now we've got three ways that our portfolio could be growing. Our portfolio is growing because the dividend is growing. The portfolio is growing because we're getting rent on our stock. And the portfolio is growing because we're reinvesting all that cash flow to buy more shares. Important point, all of this growth is assuming that the stock never goes up in price. You see that we don't have to bet on what stock is going to go up in value. When we're getting additional cash flow, the cash flow is going up every year. We're getting cash flow from the rent and we're reinvesting it to buy more shares. It starts to snowball. Regardless of what Happens to the price of the stock. Many of you were surprised when we ran the numbers and you saw that your portfolio could theoretically grow more over time.

If the stock did not go up in price if it stayed flat for a long time. Reason because you would have compound interest compound faster. So if it goes up in the short term, awesome. Do we care? Not really. We care about the long term cash flow that we can get from a stock and we can often get 20% or more.

Over a short period of time and that will grow, grow with with additional time. So this third part of the strategy is that we're going to be guaranteeing that we buy on a discount and we can stack the deck to ensure that we buy on a discount. Now you might remember our criteria for buying dividend paying stock starts at a 3.5% dividend. So that's our minimum. I like four, four is my target for an entry point. But I say 3.5 to 4% yield year one. With the other indicator being that they've raised their dividend every year for at least the last 10 years. For at least 10 years. So that's our entry point. That's when we know that it's something to consider. Now here's the problem that a lot of you have dealt with in your brains after learning this. Sometimes our favorite stocks that we have on the watch list don't go on sale more than once a year or even every two years. So what the heck do we do then? If our favorite stock doesn't go on sale, it doesn't enter our buy territory. What do you do right now when you're all excited to do this strategy? If the stock you want to buy like Procter and Gamble is trading at all time highs, which at the time of right now it is. Well, are you sol? Do you let that money sit on the sidelines? Do you go and buy something speculative? Well, there is something that you can do in the short term before the stock hits your target price point and that is that we can agree to buy the stock now at the price we determine.

So you can agree to buy Procter and Gamble or McDonald's at 50% of the price that it is right now.

You can do that and you can get paid to do it.

You can get payments cash flow for agreeing to buy the stock at a later date at a lower price.

Has this ever happened to you?

You want to buy a stock but you're afraid that it's too highly priced and you're afraid it's going to go down in value. Then it happens. The stock goes down. It declines in value. And you're like, I should buy this. But you're afraid that it's going to go down even further, further.

Remember coronavirus, March 2020, when the stock market cratered? And you were like, I know I should buy. I know I should buy. I know I should buy. But you didn't.

Because you were like, well, what if the world melts and I lose all my money?

Then it goes up again, and you wonder, why didn't I buy it when I should have bought it? I knew I should have bought it. And this goes on year after year after year while you ride this roller coaster. And then you finally buy the stock.

And there's a crash. You waited for the perfect time before a crash. How many times have this. Has this happened to you? Happens to me. It's happened to me. I should have bought way more stock during COVID 19 panic. Should have bought way more stock than I did.

There's a lot going on in the world. It was hard to predict what was happening. So how do you make sure that that never happens again? Is there a way to set yourself up to buy stocks at the perfect price and decide that now and get paid to do it? And the answer is yes.

So I'm going to tell you a way that you can get paid to wait for stocks.

And you only have to buy it once it hits the price that you set. So it looks like this.

What happens is you get paid up front today to agree to buy a stock, but you don't actually buy the stock. You just agree to buy the stock, and you set the price. You set the price of what you want to buy the stock for. What this does is it reduces your downside because you're agreeing to buy the stock, but you're agreeing to buy it at the price that you want.

It also gives you cash flow in the short term while you wait. But the real magic here. This is the real magic right here. This, lino, right here. This is everything. What this really does is it empowers you to make prudent, predictable decisions while everybody else is scared.

So you can agree to make a wise decision right now and get paid to make that wise decision while everybody else is freaking out.

This is technically called naked puts.

So naked means you don't own it. Put is the right to sell something.

So when you sell a naked put, what you're doing is agreeing to buy a stock at a predetermined price.

Now, you might never buy the stock, but you're agreeing to buy it.

At a predetermined price.

Now personally, I can generate between three and five grand a month selling naked puts even if I don't buy a stock. The caveat is I actually want to buy the stock.

I actually want to buy it. But if I don't buy it, I can get paid 3,000 to $5,000 a month using this strategy.

Give me a one in the chat box if you're still with me. Give me a two if you're confused.

Hey. Sup?

How you doing?

Just waiting on the delay to catch up.

Okay, Kristin's confused.

Some of you are with me.

So Kristin, I'd love to hear where you're confused. David, I'd love to hear where you're confused.

Okay, good. So a few of you are a little bit confused.

So let me go through.

Let'S go through a couple examples and I think that will really help you out. I think that will help you really see this. So.

Let me go through this example. I got an example pulled up for you.

If you are watching live or like in front of your computer right now, open up a tab right now in, in Google and type in csco. So CSCO is the ticker symbol for Cisco. Cisco Systems. Cisco Systems is a, you know, multi hundred billion dollar company.

Fantastic company and they're a really good dividend paying stock. Now Cisco currently at the time of this video trades at $41 a share. Let's see if that's at the time we're making this video. Yeah, we're right at $41 a share.

Now in fact, just for fun, let's pop over and look at something.

Let's pop over and look at the long term chart.

Of Cisco. So.

Here is Cisco. Today it's trading at $41. If we look at the year chart, it kind of goes up and down and up and down, as high as 50, as low as mid-30s. If we look at a longer term chart, we can see that it's been as high as 55, 60. Right now it's at 40. Now we can see that compared to where it's been in the past.

It might be on sale, it might be now. I am, I am making gross generalities. You should not make buying decisions just by looking at the chart. But we can see that this company is sort of in discount territory. Perhaps some might say that it's in discount territory. Right. And look at this number here. You see this dividend yield, it might be hard to see on your screen. It's 3.5% right at our minimum target for where we might enter into a stock position based on dividend yield. We're right at that. That very minimum. Now, here's the thing. If you're tracking this stuff, you're looking at going, oh, I should have bought right here at the dip, right? I should have bought at 35 when I could have bought at 35. That's the psychology that most investors have or most entrepreneurs have when they get into this, which is like, I should have bought here at the dip, or I should have bought during COVID here.

So what we can do here is we can agree to say, all right, I like this at three and a half percent dividend. I like this at $41 a share. But I really want to buy this at 38, 39, because around 38 now more in mid range in my target dividend yield. And that's really where I need to be.

So if that's the case.

How do we do that? How do we set that up? How do we make it so we can do something like that? Well, there is indeed a way.

So right now, Cisco trades at $41 a share, pays 3 and 4. 3.4. 3.5% dividend sits right in that minimum target.

So in order to be a little bit juicier, Cisco needs to drop below $40 in order for it to be in our striking distance.

So what you can do right now is you can agree to buy that stock at $39 and you can get paid to make that agreement. Here's what happens. If the stock stays above $40, then nothing happens and you just keep the money. If the Stock drops to $39 or below, then you buy the stock at the agreed upon price and you keep the original payment.

So if we look at.

What that looks like in something like an E Trade account.

It looks like this.

So this is E Trade.

This is Cisco again, trading at $41.

Options.

Excuse me.

Now, options. What we'll do here is let's just take the end of the year. This is December 31, 2020. So the @ the end of the year, that's when this option expires. So we can say, all right, I'll agree to buy Cisco before the end of the year, and I'll agree to buy it at, I think we said $39. 39.

So $39. So we would get paid between 59 and 66 cents per share to agree to buy this share. Cisco Systems for $39. So what does that end up being, percentage wise? So.

Let'S say 65 cents divided by $39 is 1.67%. So you would get a 1.67% return.

On whatever money you were willing to invest in Cisco Systems without buying the stock. So you'd get a 65 cent payment today per share. And then you would. If the stock drops to the target price, then you have to buy it. You have to buy the stock at that point. Now, let's say.

That you were willing to go further out and you said, look, I'm going to be super disciplined about this. I don't need to be doing this every month. I just, Cisco is a company I want to buy. I know I want to buy it. And at some point in the next six months, I know it's going to drop to $39 and I'm just going to agree right now to buy it at that price. So let's go six months out. Six months out would be April of 2021 right now. And if we go that far out, if we're agreeing now to buy this at $39, we would get a premium of $2.11 per share.

For agreeing to buy Cisco Systems. Now go ahead and run those numbers. That's $2 divided by $39 is a 5.1% return today. Today paid into your bank account for agreeing to buy Cisco at a $39 price. Now check this out. Cisco's currently trading at 41 and you're thinking about buying it, but it's just outside a range. So 39. Great price. Let's do it. And you're going to get paid to do that. Now here's a little math and trivia question for you. If you get a $2 payment right now per share, and the price of the stock is $39, what is your actual cost of buying the stock per share?

If you got $2 paid to you up front and you buy it at 39, what is your actual cost to buy the stock per.

Share?

Ted? Got it. $37.

So what has happened here is if you want to buy a stock today that trades at $41, what you are doing is essentially locking in a price of $37 sometime in the next six months. So you just bought the stock at more than a 10% discount, which is the same as buying during a significant market correction.

10% is a huge discount in the market.

That would be a 3,000 point drop in the Dow Jones industrial average. And how many times have you said when there's a big correction in the, in the Stock market. How many times have you said, I know I should buy right now.

And you don't. Happens all the time. So what this does is it gives you that right now without you being emotionally reactive to that time frame. Let's go through a couple other examples.

For fun.

So let's take a look at some of the other stocks that we talked about as examples. So let's do.

AT&T.

Oops, there we go. AT&T trades at $28 per share. One of the reasons that we like it is because AT&T has a.

7.3% dividend. They've always had a really healthy dividend.

Full disclosure, I own quite a bit of ATT.

So 7.3% dividend, and they're trading at $28. Now, $28 is a good, good price compared to where the stock has been over the last several years. You can see here, it comes up, it comes down, it comes up, it comes down. Even over five years, it's up, it's down, it's up, it's down. Now, again, this would be a good price at these values, depending. Again, I'm not making recommendations. I'm just saying, comparatively to where it's been, this would be a good price.

So let's say, however, that you weren't comfortable buying this at $28, so you wanted to lock in a different price. So you said, okay, at any time in the next six months, I will buy this stock for $25.

Six months out is April.

So if we agree to buy.

AT&T for $25, we would get a payment of between 63 and 68 cents per share. So let's run those numbers.

63 cents divided by $25 is a 2.5 return on our money.

Now, that's not bad. It's fine.

But remember, we'd be buying this at a significant discount. We'd be buying this at more than a 10% discount. Our actual cost when we factor in the option payment is $24.35. It's currently trading at $28. So we'd be getting at $4 off, which is almost 20% off. So we're agreeing to buy this at 20% off anytime in the next six months. If we come a little bit closer to this price. Let's say you said, actually, I'm really happy to buy this at $28. So you agree to buy this at $28. Here is your option payment right here, $28.

You'd get paid $1.76 between and $1.83 somewhere in that range. So if it was $1.80 divided by $28 is a 6.5% return on your money. Get paid into your account today.

To agree to buy this at $28 later, which you, you are saying you're willing to do anyway.

So Kevin is bringing up some downsides. I'll go over the downsides in a second.

All right, now let's look at one more example to lock this in. We brought up the example of Unum Unm. Full disclosure, I own a lot of Unum.

I own a lot of. On them. It's one of my biggest holdings.

So on them. If you take a look at this chart here, I know this is going to be hard to see, but three year chart, it was up at $60, up over 50, it dropped all the way to $18, which is where I bought. I think, I think I might have bought it at $16.

And boy, did I buy a lot on them.

So Unum, great dividend paying stock, currently has a dividend yield of 5.3%.

And now you're kicking yourself that you didn't buy at 16 because it's jumped up to $21. So you say, okay, I will buy this stock, but I'm not going to pay $21. I'll pay $20 for this stock and I'll do it sometime before January. So three months from now. So if you are willing to do that, we can see on our screen that between 85 cents and a dollar, that's what we would expect to get paid. Looks like there's not a lot of open interest. In fact, right now there's no open interest on this option. So this might not actually go through. So let's go a little bit further out. Let's go to June. Here we go. Now we've got open interest on this, which means that there's people who are actually willing to make this trade. Wow, these numbers are exciting. Look at this. Oh, I'm glad I picked this example. So if you said, all right, I'm willing to buy Unum at $20 before June 18th of 2021, then your payment would be between 235 and 250. Run those numbers for a second. If it was 250, if that's what you got paid and your price per share is $20, you're getting a 12 and a half percent return today. Today that money is showing up in your bank account right now, ladies and gentlemen. Put that money in the offering plate.

You get, you just got 12 and a half percent paid into your account to agree to buy a stock you already want to buy at a lower price. It's trading at 21 right now. You're saying, I'll buy it at 20 and you get paid 12 and a half percent for that. Isn't this exciting?

Is, isn't this fun?

Ah, you put that 12.5% in the offering plate. Ladies and gentlemen, put your hand on the screen. We'll pray for Unum to go up in price.

Now, what happens if the stock doesn't change in price? If onum stays at $21, what happens? Nothing happens. You keep your 12 and a half percent. 12 and a half percent would be a good year.

You just got paid it up front for not buying a stock. It's pretty hot. That's hot.

Now if it does go down, if it goes down in price, if it drops to $19, you still have to buy it at 20, which you already wanted to do. And since it's a dividend paying stock, you don't care if it goes down in price.

So this is how we always buy, on discount. We always, always, always get the stock on a discount.

This is fun. This is exciting.

Now let's take this baby home.

So one of the things this allows us to do is Cisco is not an example that we've talked about because it's been outside of range, it doesn't meet our criteria, but.

Now it can be on our watch list.

Because we can write puts on this, make money on this, and, and wait for it to drop. So it can still be on our watch list even if it doesn't meet our numbers right now. And so you can literally sit there going, come on, Cisco, drop in price. Come on, Cisco.

And be paid that entire time while you're waiting for it to hit your target numbers. That's exciting. It really opens the menu of potential investments for you.

Now here is the downside. Why is somebody willing.

To pay you to buy their stock at a lower price? They are protecting their downside.

So an example of this is if you own Amazon and you've owned it for five years, you did really well. So now if you're afraid that the market's going to bust, you could buy the put so that your investment is protected in the event of a collapse.

You're basically operating like an insurance company. You're offering to buy it from someone.

They'Re buying the right to sell it.

So that their downside is protected if there's a market correction.

So you want to buy the stock, which is why you are selling the right to sell it. You are basically telling someone else, you have the right to sell this to me. So if the stock market collapses, you still have to buy the stock. But get this, you, you still saved money compared to buying it on the open market.

So you only want to do this on stocks you want to own, and you want to own long term.

So here's how you would use this to your best advantage. Rule number one, only do this on stocks that you want to own.

Only do this on stocks that you actually want to own long term.

So your goal here is not to make money with the option. Your goal is to buy great stocks.

So an example of this is 300 was a price point for me in which I bought a lot of Tesla. And Tesla would go up and down and up and down and up and down. But I always wanted to buy at 300. So I would sell the naked put at 300 in order to generate cash flow, which means that I had to buy it at $300. Here's actually the chart. This is from a couple years ago. I was buying Tesla at 300 consistently. So when it was up above 300, all in this range, I, I was not buying any stock, but I was making money. So I was making like 5% a month.

Getting Tesla. You're selling Tesla options without buying the stock. So it would come down, I'd sell it. I'd sell the right to buy it at 300.

I'd make some money. I never bought the stock. And then boom, right in here. I was still getting my money paid to me, but now I'm actually buying the stock at 300. So in here I'm buying a lot of Tesla. Comes back up over here, I'm not buying any Tesla, but I'm still making money. Now it drops, I'm still selling puts on Tesla, but now I'm actually buying the stock. So throughout this period, this is a year chart, I bought some Tesla when it was low. I bought some Tesla over here when it was low. I didn't buy Tesla when it was high, but I still made money. And so I collected this giant reserve of Tesla stock that then went up like 8x, you know, then it boomed. But now I can't buy Tesla at 300 anymore. So then it boomed.

And I did really well. I did really well. That's how this works.

So the important thing for you to know there is if you get put the stock, which means if you have to buy the stock, don't freak out. That's what you wanted in the first place. And oftentimes it means that you're buying at its best price, at the lowest price.

And your final rule is, if you're earning 1% per month, you're winning.

1% per month. As an average, you've won the game. You're doing really well.

All right, a couple keynotes to this.

You have to do this in contracts of 100 shares. So you can't do this with less than 100 shares. So with the example of Cisco at $39, you'd have to be willing to invest at least $3,900.

Now, note number two. I don't mean to confuse you, but you can buy back an option. So if you no longer want to get that stock sold to you, you can buy out of your contract. And sometimes you can actually lock in gains doing that.

But I don't mean to confuse you. So we won't go too deep into that.

So if you can generate 1% a month, you're winning. And that might seem small, but that's an extra 12% per year or 12 grand on $100,000 portfolio. Pretty darn good for not buying a stock.

All right, now, what's the downside risk to this?

The downside is that if the stock goes down in value, you still have to buy it at its higher price, meaning you have to buy it at the price that you agreed upon. So you want to agree to a price that you're happy with.

So if the stock is one that you want to own anyway, you still got it for less than you would have originally paid. My example here is I wanted to buy Tesla at $300. It was listed at 325. I sold the $300 option at $25.

It dropped to 290.

So I still had to buy it at 300.

But guess what? I still got the $25 per share up 3 front.

So my actual price for the stock was 275.

And I had to buy it.

At a higher price on face value. But I had this giant payment up front that made it cheaper for me.

So that's risk number one. The second risk to this.

That if the stock goes way up in value, you don't get to buy it. So you'll miss some upside. But you still got the premium which gave you a piece of the upside. And you're still being prudent by only buying stocks at your perfect price.

So what do you need to know here? What you really need to know is that if there's a stock you want to buy, selling a put is a great way to get cash flow now and then wait for the stock to hit your ideal price. Your downside is if the stock goes way up and you don't get to buy it, or if it goes way down and you have to buy it but at the price that you agreed upon, those are your risks. But this is just a prudent way to.

Establish a predictable strategy for buying stocks on a discount.

There's one thing I want you to remember here. This point here.

Puts are the most valuable.

When there's a big.

Down downturn in the market. So the best time to.

Write a put option to make money with this is when the stock market has gone down in value. So in this Tesla example.

When Tesla is trading right here at 360 a share, how much do you think people are willing to pay to agree to sell it to you at 300? Not very much.

If it's trading at 360. I want to sell it at 360. I don't want you to agree to agree to buy this at 300.

But what about over here.

When it's gone from 375 all the way down to 255.

And now it's back around 300. What is it worth to this owner to say, I want to lock in a $300 price.

It's worth a lot.

So if you come into this and you say I'll buy this at 300 anytime.

This person is willing to pay a higher premium for this.

So you will get higher premiums after the stock market or a stock has gone way down. That's when this is most valuable, when you will do the best with this. It's a good strategy anytime. But if you had sold puts during coronavirus, you would have made out like a bandit. You would have made out like a frickin bandit because the stock market was cratering. If you had been agreeing to buy during the crash, you would have crushed. You would have done amazingly well.

All right, here's what we need to do with this. Just like our previous lessons, your job is to make a list of stocks that you want to own. And we prioritize dividend aristocrats that have raised their dividend every year. You then decide what's the price that you are willing to pay.

And you might want to consider selling puts at that price right now. That will give you money up front. It'll show up in your account today.

What this does is it forces you to Be disciplined about buying the stocks that you want to own.

And what you can do is you can use the payment to buy more stocks.

If your options get exercised, meaning you have to buy the stock, you rent them, use covered calls to rent them, and you're getting your dividend over and over and over again. And that, my friends, is how you guarantee that you buy a stock at a discount and use it to generate cash flow.

Isn't this exciting? Yeah. Zoltan, you're in the green room. Would you like to come on and ask a question? Let's do.

It.

Good.

Morning. How are.

You? I'm great. How about.

Yourself? Good man. Thanks for being here in the. In the green room. What can I do for.

You? So I think I spoke with you about three months ago.

I'm starting a brand for young men who kind of want to be more confident and feel better about their looks, about themselves. And so I'm actually launching my first product in about two weeks. Three.

Weeks. Good for you.

Congratulations. Thank you. Now, my question to you is my audience is really, really small. At the moment I have maybe 120, 130 email subscribers and maybe 75 followers on Instagram. But I do have a lot of influencer Instagram influencers, like maybe five or six. Like, they're kind of fashion grooming models.

For young men. And they've all agreed to have me send them some samples. So my question to you is, how can I go about launching my product through these influencers if my audience is fairly.

Small?

First of all, 130 people who are engaged is more than enough to do damage. If those 130 people buy on launch day and you come out of the gate with 100 sales, you've done great.

So number one, don't overlook the asset that you're sitting on. Second of all, treat those influencers like they're relationships, like they're real relationships. Love on them, be kind to them, give to them, Ask for small yeses like, can I send you free samples of my product? Can I get your feedback on this product? Can I hop on the phone with you and get some feedback about what you liked and what you didn't like? Ask for easy yeses to build up the relationship. Then on launch day, if you've got good relationships with those people, ask them to post about it and link back to your. Opt in to get more email addresses then you love on those customers. If you've got a really good relationship with one of those influencers, I would either sponsor them or give them points in the company to come on board as the face and the head promoter of that company. And now they're getting paid to be in a partnership with you. I like equity rather than sponsorships because solidifies the relationship, but that's a. That's. That's getting married. So we do that after we've dated for a while. So that's how I'd recommend that you'd approach this moving.

Forward. Okay, perfect. And then would you recommend. Would you have a preference? I know you prefer email over everything, but since my audience is mostly young men, I feel like people my age and young millennials tend to use Instagram more than anything else. Would you recommend that be my main.

Source.

Of. That's an interesting question. So for most people, I recommend that they post, they focus exclusively on email. But since your market is young men, I would recommend that you focus exclusively on.

Email. Okay, perfect. Thank you so.

Much. You see what I did there? Yeah. Always email. Always. Instagram's a traffic source. Email is a conversion source. Zoltan, have you checked your email.

Today? I think I have.

Yes. Will you check it again later.

Today? I.

Will.

Yeah. And you make your buying decisions via email. It's still the number one conversion source and it out pulls everything else. Instagram is not a conversion source. It's a traffic and attention source. So you can focus on Instagram to get traffic and attention, but the conversion always happens via email.

Got.

It. Sounds.

Good. Thank you. You bet.

Ted. Thanks for the kind words.

Tiffany. Thanks for the kind words. The kind words. You make this sound so easy. It kinda is. Kinda is.

So the three part strategy to everything we talked about over the last three weeks is very simple. You write puts, you sell puts at the price that you're willing to pay. Then you buy the stocks that you want using that strategy and you reinvest the dividends. And third, you rent the stock using covered calls. And that three part strategy is how you'll always buy in a discount, buy good stocks that are paying long term, increasing dividends and turn them into rent that becomes passive income. That's the strategy that I give to entrepreneurs that if they do, it can radically change their lives. I hope that this has been extremely meaningful for you because it's really effective and it's just. It's just smart. It's just smart. Reminder, next week is our off week. So I won't see you next week, but we're back with regular scheduled programming the following week. Do I have my book around here? Oh, remember to grab this book, why doctors don't get rich because we're going to be interviewing the author next month after the Thanksgiving break. So grab a copy of this by Tom Burns and we'll chat with him. You can do a We'll do a Q and A with him inside the group, so make sure you grab your copy.

I'm just looking at your comments. Good. Thank you for hanging out with me. You. In the meantime, I'll see you inside the Facebook group. See you guys then. Take care.

Of.