7 Ways to Become a Millionaire – Part One – M&A

7 Ways to Become a Millionaire – Part One  – M&A


Like to thank everyone for their support of
the channel, even the trolls although I had to turn on the profanity filter but I hope
to be able to humbly continue bringing helpful content. Today I will talk about a business you might
find interesting or depending on your background might even consider as a career path. You don’t necessarily need a degree and this
industry literally pays million dollar commissions on a single deal, and very few people know
about it. This might be the highest paying commission
in the world at least its the highest I have ever seen. This will be part one of our “7 ways to Make
a Million series” So everyone is familiar with real Estate and
Real Estate Agents. Understanding the Real Estate model will help
you understand the industry we’ll be discussing shortly. Right now the economy is booming again back
up to where we were before the 2008 crash. Agents are paid a commission on the sale of
a house that can frankly be impressive. This amount will vary from state or province,
but if you sell a million dollar home you receive a percentage of that sale and that
amount varies depending if you are a sales agent or the broker, and if there is a buyers
agent involved. But technically you can earn up to $30-$60,000
on a single sale. Possibly more. For Realtors who are listening I’ll often
discuss learning internet marketing as the single biggest skill in any business because
you can promote and sell houses all day long and not ever need a buyers agent – but that’s
another video. So you can see that showing a house and having
3-4 sales a year can be lucrative, selling 10-20 a year even more so. And yes I know the average median income for
Realtor agents is only about $42,000, thats higher for agents but that’s because there
are millions of Realtors, many do it part time or have it more as a sideline. The brokers and agents that are good, know
how to market, and work really hard make very good income and it’s a pretty good gig showing
houses to buyers. And Realtors yes I know it can be frustrating
too I did it myself many many years ago and have friends still in the business. So a basic business model. Person comes to the broker or agent, asks
them to sell their house, broker pays all the upfront costs to list the house, shows
the house, puts the house on MLS, might give you some tips on how to stage your house or
other ideas, and for that service they’ll get paid that 3-10% commission if and when
the house sells. Some argue that’s a lot of money to sell a
house – it is what it is. Now most states allow people to get their
Real Estate License online and its very inexpensive and you just take a prelicense test, no educational
prerequisites, check your own state for details. And if you come from a background of internet
marketing this can be a great gig. Let’s look at the next model. Business or franchise broker. Exact same idea, seller comes to the broker,
wants to sell their business or franchise. And this is what we do – many people wonder
how we make money with this channel – we are brokers. We sell franchises and businesses. So the commission again will vary but that’s
often a portion of the franchise fee on a new franchise or a percentage of the selling
price on a resale up to about 10%. Because its somewhat harder to find a buyer
for a business than it is for a house we usually see 10% commissions on what is called main
street businesses, these are businesses you see in your city or town often under a million
dollars and less than 3 million in revenue. Mom and Pop shops. So a $400,000 deal might pay a $40,000 commission. Again there are splits in certain circumstances
but we won’t go there. Now why I personally opted to the franchising
industry is we can sell anywhere in the USA or Canada we can promote a gas station in
Phoenix or a sub shop in Idaho and not even have to even be present to close the deal. We also provide value add services such as
research and consulting – help people determine which business is the best fit which we are
happy to do because it’s more value to our clients. We go beyond just selling the franchise. Anyway topic for another video. Keep in mind while many brokers or consultants
may have MBA’s or formal education – it’s not mandatory and you can enter the business
in most states with a GED and general real estate license. So let’s hit the target – we have Realtors
who sell houses and get a commission, we have brokers selling main street businesses that
get a commission but who sells the really big businesses? The type of businesses that sell for 10 million
or 100 million? Well technically they are still brokers but
in what is called Middle Market Businesses the agents are often referred to as intermediaries,
or mergers and acquisition specialists. This is the business where you can literally
earn a million dollar commission from one sale. Now I’m going to reference internet marketing
again and I’ll give you all a peek into a strategy we used when we got started. At the time I was not a broker so I contacted
M&A brokers asking them if they would pay for referrals. And there are legal considerations we wont
cover here but it has to be a very specific relationship. Eventually I found one that agreed and I just
took his inventory and promoted these businesses online. I’ll get into specific detail of high ticket
marketing in a future video….. but you can partner with a lot of big businesses and get
paid a fee. Ironically one of the venues we got decent
traction with was posting free Craigslist ads in the Middle East – we connected wealthy
middle eastern investors with American businesses and made part of that fee. Completely free Free classified ad – pass
over the lead – get paid a percentage of a very nice amount of money. So lets look at what an M&A broker might be
paid on a single deal. Let’s take a 20 million dollar company that
gets sold. And again this number varies but an average
deal might be something like 10% on the first million so $100,000, 8% on the second million,
so $80,000 6% on the third million so $60,000 and 4% for the rest which would be $680,000
making your total commission on a 20 million dollar deal $920,000 or almost 1 million dollars
on a single sale. A 25 million dollar company would put you
over a million. Interestingly there are not necessarily any
educational prerequisites to enter this business but most will have a background of some sort
in finance. But there is nothing to say someone couldn’t
get the Real estate license, move to business broker, and then move into Mergers and Acquisitions. One deal could literally make you a millionaire
(technically) overnight. And yes we cant forget about taxes. Now before you get your suit and tie on to
go and sell 25 million dollar companies for million dollar commissions, let me tell you
the downsides and why we left. The gigantic deals are very, very infrequent. You have no idea how frustrating it is working
18 months on a deal counting on a 6 figure commission and it tanks at the last minute. That happens all the time in that business
and for me it was just too unpredictable. Selling main street businesses is far more
predictable and it doesn’t ruin a whole year if a deal falls through. If you are interested in becoming a broker
and have the background feel free to contact us. If we are actively recruiting for brokers
I’ll post a link right up here on the video. Dont forget to like and subscribe more content
to come in this series – hit the bell if you would like to receive updates whenever new
content goes live. Thanks for watching.

38 thoughts on “7 Ways to Become a Millionaire – Part One – M&A

  1. This channel rocks!!! Way ๐Ÿ˜Ž๐Ÿ˜Ž๐Ÿ˜Ž๐Ÿ˜Ž

  2. Great content!

    can confirm. A friend in South Florida went from bar tending to a rookie real estate agent at one of the large agencies. He didn't make a million but after a year he paid cash for his brand new car. But he's also hungry and hustled hard, he used his bar tending gig after realizing a lot of rich people around him were looking to buy homes and had no agent. He also went after property investors.

  3. I love this channel bro. You are my second favorite Canadian, ave is first.

  4. why don't you ever where a tie in any of your videos?

  5. Love your videos, man.

    Would you ever do a video about your own background and how you got to where you are today? I didn't see one in your videos, but would love to hear your story!

  6. 7 Real Ways to Make A Million Dollars:
    1. Get a high level degree and work for someone wealthy.
    2. Be born into a life where you have the opportunity to make a million dollars.
    3. Con people out of a million dollars.
    4. Set up a drug smuggling/distribution network.
    5. Luck out, and land a sales deal with a million dollar commission.
    6. Start a million dollar business.
    7. Win the lottery.

  7. Thats a cool McMansion in the thumbnail

  8. Nice I gotta look into this

  9. Hey Robert,

    God bless you for the lots of free information. Itโ€™s true help to those of us hungry for more information.

    Thanks,
    Alex

  10. I have about 200k what kind of franchise should I get in too i was thinking supermarket franchise

  11. A way to have a million is simple, just put away $1 a million times, itโ€™s really that simple.

  12. Wow, he says so many things he said are wrong!! As usual he does not discuss the amount of money it costs to do business.

  13. Quick question:
    Does your company recieve, monthly comission from the qsr and frashise fees

  14. What's your opinion on investing in vending machines as a way of supplementing one's income?

    Thanks

  15. or just play powerball lotto boom

  16. Hey there, Iโ€™m a realtor. Iโ€™m 19 and make a quarter mil. Itโ€™s great. Also, just remember itโ€™s not an easy business. People donโ€™t come to us, itโ€™s not easy to find clients.

  17. A great deal of realism,its always hard no matter what you do.Try buying a business with a broker involved,nightmares ensue.No one seems able to come up with a price a real price as for the disasters that await as you delve into the accounts,expect the worse.Reality,be prepared for lies,lies and more lies and that's from your own team,particularly here in the UK,step across borders its just lies in a different language.
    Thanks for precipitating thoughts on how to M&A and who to use.

  18. The referral idea sounds great, Not only do you get a % of the sale, you also don't have to spend time making the deal. You just refer and hopefully it sells and you reap the rewards.

  19. Number 0: Don't buy that house in the thumbnail.

  20. Is there any way to get success as a project manager?

  21. Sounds easy! Trouble is its hard as hell to get any listing let alone a million dollar one. Been there done that for 2 years. Sounds great, but the other side of the coin is "how do i get clients?", frustration, depression, when you do get a listing its endless open houses, playing shrink to your clients and presenting good offers that they stupidly wont accept. You found a buyer?! Plan on endless showings, irritated clients thinking its your fault when they didnt jump on that house they wanted but lost out to another client because they are so damn flaky. I flip homes now. I get to be creative and dont need to deal with idiotic clients except when i go to sell it. But i can do what i want! Money is great but its not passive.

  22. THanKS for Info ๐Ÿ™‚

  23. First, get a million dollars…

  24. The two women in

  25. LOL what is that intro?

  26. So very curious your opinion of LGI homes… My fiancee and I are going through the vetting…. Continue??

  27. Love this topic

  28. I would like to thank you for that intro

  29. Value Bombs!!

  30. Of course, M&A is the purview of a lot of very big Wall Street firms. I don't think trying to compete with this is all that easy.

  31. Fred

  32. Love your channel. Well done and Great valuable information.

  33. Great content..thanks for being so informative

  34. Thanks again. You are so motivational Great work. What do you think about Tropical Smoothie Cafe franchise?

  35. Fiverr is so awesome

  36. That intro makes you look unprofessional.

  37. Your content is high value!

  38. Looks like you quadrupled that – nicely done

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