Jason's How to Build Wealth & Golden Nuggets

[JasonR]

First post.

So, you want to build an internet business? After going through what I did in the past 6-7 months, here's what I've learned.

1. Pick a LARGE market. I don't like super-niche markets.

2. Don't reinvent the wheel. You don't have to.

3. F*ck SEO. See #4

4. Utilize paid traffic to grow your business. Display advertising is how many of the big boys and big hitters grow super FAST. See those banner ads on Facebook and all over the web? Yah, they work.

5. Here's a secret. It took me a long time to learn this. Do you want to be able to infinitely scale a business? With paid traffic, you'll need an Average Order Value OR Lifetime Customer Value of $60-100. If you can squeeze $60+ out of a customer, you should be able to buy traffic ANYWHERE. There are multiple ways of doing this.

5b. Build a funnel, not an e-commerce store. I lost about $2k and 2 months learning this the hard way. Read this article.

6. Money. You may think it's hard to get. It's NOT. It's fine to bootstrap (and what I did to start). Go get some high limit credit cards (Amex Plum, etc.) that you can use for ad spend. DON'T be stupid with this money. It will help you grow and scale. Once you have a system where you can prove that for every $1.00 you put in, you get $1.40 back, getting money is easy.

7. Fail fast. The faster you fail, the faster you can succeed. The key is, go as FAST as you can. I've seen people try for 2 years because they're too afraid to fail.

8. Everything in life worth getting is a process. A great business, a great girlfriend/wife, losing weight, building muscle, building your real estate portfolio. These are ALL processes, and there is no magic pill or secret that will shortcut your PROCESS.

But, you can get rich quick (relatively)...

 

[JasonR]

In the spirit of @zen******* I will be using this thread to dump my thoughts, process, and knowledge into this one thread.

I do this for myself, as much as for you. I don't have time to build a personal blog, plus - why not dump things here where people will get value of out of it.

I was talking to Zen today, and I told him I really appreciated his thread. Go read it, if you haven't already.

I decided to start my own, not only for YOU, but also for me so I can go back and not forget. Maybe one day this will become part of a book, or blog, etc.

A little background on me. I'm 29, from California, and I launched a business in July. I've done well into the six figures in the last 7 months, and am shooting for the multi-million dollar goal.

I moved to Scottsdale, where I quadrupled my sales because I threw my printer off the balcony. Some of you know the story. Our apartment consisted of mattresses and computers. We had 0 distractions. So my little business grew, and we're expanding. Zen said, "Hey, come out to Albuquerque so you can speed up your business."

Well, I didn't want to leave Scottsdale, because I truly loved it. I now know why people stay there.

So I moved to New Mexico, because I couldn't pass up Z's offer. I'm learning how to build real wealth, and a real business.

Learn from my mistakes and my knowledge. Don't listen if you don't want, but I'm going to tell it like it is.

I'm not a millionaire yet, but I'm well on my way...

Let's go.

Edit: NO I won't mentor you. I haven't done my first deal yet, and I'm in no place to mentor anyone. However, I may choose to answer your questions in private if you reply to this thread. I'm going to stick to straight dumping my thoughts and processes throughout my journey.

 

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[JasonR]

Hey Jason, first off I want to thank you for providing value to the forums. I've only been on the forum for a short time, but have come across some of your posts and found them very valuable. I know you're very busy so I won't waste your time here. I have a few questions that I'm hoping you can help answer:

• How did you come up with your product? I know you always say the product doesn't matter, but I'm just curious how you decided to go with what you're selling. I understand your product is in the pet market.
  • Google keyword planner?
  • Reading up on CVO, I'm learning that it's better to focus on a bigger market rather than niche so you can drive more traffic, etc. Is that right?
• How did you source your products?
• Are they your own personal brand, generic or other people's brands?
• If I'm not mistaken, I believe you said you were carrying inventory and packing/shipping your own products while having a day job. How did you manage to do this while working a 9-5?

Thanks for your help, Jason. Keep crushing!

I got this PM today, and figured I would post the answer publicly, here.

I took something that already existed, and selling, and made it BETTER. I put one on my Uncle's Dog and everyone asked him where he got, so I said F*ck it, I have a winner, and built the infrastructure required. However, I could have done more testing online before I invested my time and capital into it. I'm also building a sales funnel around it as it's more of a tripwire product than anything.

Here's the thing. You CAN enter high competition markets with products that sell like crazy. You don't have to reinvent the wheel. Go to OfferVault.com and check out the products on there, and take a look at the payouts. If they're paying $30-40 for a sale, and the product is only $30, well, they have something slick in the back end.

I don't really believe in the Google keyword planner to find "profitable" niches that are underserved.
Yes, I like BIG markets. Sometimes if you can do something different or tweak something that is already selling, (like selling guitar picks for cheap or almost free to sell your high-end customer guitars - as a random example) you can kill it in the market. What I'm doing next, will hopefully kill off my competitors, or at the very least have their offer look very poor compared to mine. That's because when I have a winning sales funnel, I'll be able to sell tripwire products dirt cheap, to get people into the funnel...

My products are manufactured. I'm not sure what you're asking when you say where did I source them. Everything is sourced and made in the US.

They are my OWN brand of products, and are unique to me. Although, some of the stuff I'll sell down the line and in the funnel won't necessarily have to be unique. You just need an EXTRY point, a unique angle or cool product, to get people to make that first purchase from you - I'm speaking in terms of sales funnels.

About the time issue. Here's the thing...

I made time. I slept less. I would sometimes be up until 2-3 AM working, shipping, manufacturing, working on the website, traffic, etc. Whatever I needed to be doing. Then I'd get up at 7-8 am to go to my day job. Come home, rinse and repeat. I didn't party, I seldom dated, I sacrificed SO much. I still do, yet I have some breathing room now. You just have to find a way, and want it BAD enough.

If I took a break, I usually was reading a business book or learning something business related. On occasion I'd hop in the pool for 20 minutes, or take a power nap on the hammock for 20 minutes.

I moved BACK into my parents house, and started the business out of the garage at 28 years old. No, I didn't want to live in my parents house at 28, but I was hungry enough to do anything. The money I saved in rent went straight to the business.

Then, I moved to Scottsdale. I literally, picked up, and move EVERYTHING to go pursue my dreams and goals with @TheTruth and @AndrewNC. We had no TV, no couches, just a cool apartment on the 3rd floor with computer desks and mattresses.

So I ask you, how hard have you tried? What are you willing to do, to achieve your goals?

I've picked up and moved, twice in the last 8 months, to get to the next level. I will hop on a plane and go meet people. I've been flying once a month to Dallas for NLP training. If I have to fly around the world to do it. I flew to Vegas on a moment's notice because @zen******* said get on a plane I have some cool people I want you to meet.

I've shoveled dirt at @zen*******'s house on Labor Day Weekend (albeit with a skid steer, hehe), because he's opened up a cool new world to me and has been the most kickass mentor I could ask for.

I have made many mistakes, and lost a bit of money, and more importantly, time making those mistakes.

But, I'm not afraid to make them, as long as they aren't catastrophic.

If I have to almost go broke to build my funnel (it's been extremely challenging and frustrating to find the right people, and software, to do it) I'll make it happen.

I was just in Phoenix, and met with a new vendor. 7 hour drive? So what?

I'm not trying to say hey, look at me, look what I've done.

Instead, I'm asking you, how far will you go, to achieve your dreams?

 

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[JasonR]

Network. Go network your a$$ off. Businesses aren't built in a vacuum.

People are the fastest way to cut your learning curve.

Go out, get to events. When someone tells you to get your a$$ on a plane to Vegas, RUN don't walk to the airport.

Buy people drinks. If you want to connect with someone, buy them lunch at their place of choice. Go out and do things for people.

Pick up the F*ckING phone and CALL people.

Don't burn bridges, and when you have to fire someone or a vendor, be a man and do it over the phone. I did this, and now I have a back up supplier instead of a burned bridge.

You will start building a blackbook of contacts you will have with you your entire life. Treat these people well, and go out of your way for them.

 

[JasonR]

Be product agnostic.

I don't care what I sell. As long as it sells.

Your passion won't bring you wealth (usually).

Be passionate about business and the process, and you will be successful.

Oh, you like to Snowboard, so you're going to build a snowboard e-commerce business. Your passion is NOT reason to go into business. I lost 8 months and made 0 sales attempting following my "passion" when deep down I didn't how how to add value in this particular market.

 

[JasonR]

Never give up.

Even when you have shitty days.

Some days suck. Some days you wonder why nothing is working, then the next you're on cloud 9 because making money is like shooting fish in a barrel.

The most important part is that you keep pressing forward.

Sometimes you need a little bit of time off.

I was ordered by a mentor of mine to take one day off every 2 weeks.

Ok, fine. I'll do it.

Don't have a backup plan. I used to. I was going to go to law school if I couldn't make it in business.

Well, F*ck that.

Throw out the back up plan.

I'm an entrepreneur. It's in my DNA.

 

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[JasonR]

Figure out what you SUCK at.

Figure out what you're GOOD at.

Don't be an egomaniac. There are is something you suck at (probably more than one thing). I suck at a lot of things. Like customer service.

I'm really good at a FEW things.

Outsource or hire for what you suck at.

Don't ever think you're good at EVERYTHING. You're just lying to yourself.

Hire people who are SMARTER then you are, and hire people who are GOOD at what you suck at.

 

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[JasonR]

Never take a guru, best friend's word, etc. when you ask them if your product will sell.

They AREN'T your market.

In fact, today, I had a friend shoot me an interesting link. They had seen my product on a dog, and asked the owner what they paid for it. He scoffed, and said, you paid $20 for THAT? He then went on a diatribe about how he could set up a business to do what I'm doing, blah blah, but it all wouldn't worth it because the product won't sell.

Well, I've got over 7k customers in the last 7 months (and I'm going to be moving even FASTER).

He's NOT my market.

If you ask me if I think XXX product will sell, and I'm not your target market, should you really be asking me?

Long story short: always test the market with your idea.

You may not know your demographics when you start, but you sure as hell will when you're up and selling.

 

[JasonR]

So - an update.

I just stepped in @zen*******'s office to chat, and throw out some frustrations LOL.

So - we're in business grind mode. We've completely changed our business model and processes up. We're actually building a funnel, and I'm working on testing that and putting all the necessary pieces in place. It's a metric F*ck ton of work.

Of being more than a year into this business, I thought I'd be rolling in it already.

Even though we've done well in the 6 figures of sales, we aren't rich yet.

Building something like this - takes a lot of time and strategy to think.

Not to mention, it's pretty much my first rodeo - so I've made a lot of mistakes in the way.

The most frustrating part, is I'm waiting on people to get sh!t done (programmers, vendors, etc.).

We've also had to switch manufacturers - but I now have an awesome manufacturer.

I guess, what I'm saying is, Rome wasn't built in a day.

Even though I feel like I'm not going fast enough, Zen says I'm on the right track.

Sometimes, there's a storm to get through before you hit the "green" pastures.

See, I poured almost all of the profits back into the business.

I still live in an apartment, and drive a Toyota Truck with 90k on it.

No, I'm not driving a lambo, yet.

I'm pretty much living like the middle class, to get through the tough part.

Mentally, and monetarily.

So, don't think that this is a 6 month or 12 month process.

It usually takes years to build a kickass, super profitable business. And hey - it's my first time.

I fully believe we will be able to rock this at $1m/month, with 30-40% profit margins.

I'll see you on the other side.

 

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[JasonR]

Sales are the life blood of any new business.

Without sales, your business dies.

I made sales before forming an LLC, or doing anything the "right" way. When I had money, I fixed all these.

Having a metric F*ck ton of sales will PAY for your mistakes. Because you're going to make them. Consider them a lesson.

I can't count how many mistakes I made.

Sales & cash are the life blood of any new business.

Without them, you sink.

 

[JasonR]

I want to talk about money.

See, I have learned that money is just a TOOL.

Nothing, nothing less.

And, it's not even real. It's made up.

So, if you come from a scarcity mind set - and you believe that money is scarce, you'll behave that way. You won't be able to take risks. You probably won't ever become rich.

I'm going to look at a foreclosure tomorrow for a quick investment. Last year I would have thought, where will I get the money. I realized, that, today, I didn't even get a second thought, because I know I'll figure it out.

What would have stopped me a year ago will NOT stop me today.

Because I know money ain't that hard to get.

Whenever possible I like using other people's money to start a business, buy property, etc. Hint: It's possible almost all of the time.

 

[JasonR]

One of my favorite quotes from @zen*******

"Do you want to be right, or do you want to be rich?"

You can choose one or the other, but not both.

 

[million$$$smile]

Hey Jason can you delve a bit more into the process of finding a viable market to get into and how to do the research at the beginning if you want to establish a brand? What if you're starting on ebay and are used to just selling anything? But you don't want to open a "we sell anything and everything type of a store" how do you transition to your own ecommerce store?

B-B-B-But @JasonR I need to know the ANSWERS! In school all I had to do was raise my hand, ask the question and THEY gave me the ANSWER!

I NEVER had to get my fingernails dirty myself digging for ANSWERS! They would give them to ME!!!!

Because I am ME!!!

You expect ME to spend hours reading about this stuff on my own???? You expect ME to realize that part of the PROCESS of developing that CHARACTER of never giving up, and UNDERSTANDING that no one said it would be EASY, otherwise WE would all be just like @JasonR and KNOW HOW TO CREATE MONEY?????

I don't want to LEARN the PROCESS, just get me to the EVENT!!!!

That way, I will never need to learn what it really takes to develop my own CHARACTER for my failures and success, because I will never fail, YOU will do it all for ME!!!

And BTW, what were those winning numbers for the lottery???

 

[JasonR]

Bootstrapping.

Some people have this grandiose idea that you have to have a ton of cash to start a business.

Well, that may or may not be true.

See, Rome wasn't built in a day.

You can't build a million dollar business without first building a thousand dollar business.

I started with very little capital, a printer (LOL), and a computer.

I worked a job, came home, and went back to work. Sometimes getting very little sleep.

I was profitable in ONE month.

I netted over 30% margins in 2013, 3-4 months after I started.

You don't need to ask for ton of cash to get going.

Edited to add: We launched in July. I had been working on the idea for much longer.

Remember, this isn't your first deal. Once you have some success under your belt, the next one will BE much faster.

Because people have seen your success.

Because you've done it before.

Because you've grown your ninja network.

 

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[JasonR]

The guy with the higher LTV can afford to spend more to get a client and can buy more traffic than anyone else. THAT'S where the magic is.

Good post. This is really the KEY to understanding online sales funnels.

Let's say you are my competitor.

You sell a product with a LCV of $40. You can pay up to $39 for a customer (paid advertising, aka CPA cost) and still turn a profit (ignoring margins for the moment).

I sell the same product, yet have a "funnel" with upsells on the back end, and my LCV is $80.

Guess who wins the traffic battle?

Here's the key. The more you can afford to pay for a customer, the MORE customers you can actually acquire. So your LCV becomes ESSENTIAL to how big and fast you can grow your business.

If you can afford to pay more fore a customer than anyone else, you become unstoppable.

Most people think of the product and stop. That's where I was a year ago. And now, I realize, that's awesome, I found a winning product, but we can be so much more, and grow so much bigger and faster.

SEO guys don't typically think this way.

When you tell a potential investor you take $35 and turn into $80, you'll have more money thrown at you than you can handle.

All of a sudden, you can grow from 6 figures to 7 figures REALLY fast.

When you run a subscription model (which I love), you'll need to get data on how long your customers stick, and it can become more of a finance model.

Is all of this making sense? I wish someone would have told me this before I started.

Facebook traffic has become more expensive in the last year. So, do you want to play the cheap traffic source game, and hop to the next cheapest traffic source. Or do you want to be able to pay enough so you can SCALE on any traffic source, and go from 10k customers to 300k?

Also, do the math. How many customers do you need to make $1m at a $30 LCV? $50 LCV? $150 LCV?

I think you're starting to get the picture...

 

[JasonR]

So I had to "fire" an old manufacturer - they weren't performing up to the standards I needed, and their communication was bad.

I asked Zen the best way to do it. Email? He laughed and said don't be a pussy, man up and call them.

So I did, and now they are my backup Vendor. I took a bit of balls to call them, BUT it worked out much better. Had I written an email, I would have burned a bridge.

Z had to fire a vendor. I had the pleasure of meeting a rep from this Vendor on multiple occasions. This girl would GUSH about Z's business, because of the way they went about it. Every time I saw her it was OMG you know zen******* and company, they are so awesome. THEY FIRED HER COMPANY!!! She quickly gave me her personal cell in case I needed anything.

Don't burn bridges. The world is smaller than you think.

 

[MJ DeMarco]

Be product agnostic.

I don't care what I sell. As long as it sells.

Your passion won't bring you wealth (usually).

Be passionate about business and the process, and you will be successful.

Oh, you like to Snowboard, so you're going to build a snowboard e-commerce business. Your passion is NOT reason to go into business. I lost 8 months and made 0 sales attempting following my "passion" when deep down I didn't how how to add value in this particular market.

This alone is GOLD. People will never get it. "Do what you love" and "follow your passion" just tastes so much better.

 

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[JasonR]

I'd like to talk about product creation. @zen******* has mentioned this, and Ryan Deiss talks about it as well.

Most people find a product (or create a product), and then try to find a market for it.

What I've learned, is that t his is backward.

Find a market (a BIG market), figure out what they want or what they would buy, and then create a product around it. Again - you don't need to reinvent the wheel (look at the supplement industry).

I recently read an interview with Ryan Deiss. He said something interesting. He won't enter a market unless he can offer some sort of Continuity product in his funnel. He said it's awesome seeing that re-bill hit, and knowing how much money you'll make that month even if you do 0 marketing for the remainder of the month.

Something to think about.

I'm currently integrating continuity into my offer.

@MattCour No - I don't think Lead Magnets are necessary (I'm using a LP with Tripwire with no lead magnet and its working very, very well).

 

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[ddall]

Keep goin dude, did you see the graph/image @IceCreamKid posted in his thread regarding the stages of optimism and pessimism regarding the process to success?

Similarly, you might also be interested in listening to or reading The Dip by Seth Godin, he discusses a similar concept about pushing through barren desert stage it sounds you are in. It is a very brief brook.

some quotes from the book:
“The essential thing to know about the Dip is that it’s there. Knowing that you’re facing a Dip is the first step in getting through it.”

“A woodpecker can tap twenty times on a thousand trees and get nowhere, but stay busy. Or he can tap twenty-thousand times on one tree and get dinner.”

“In a competitive world, adversity is your ally. The harder it gets, the better chance you have of insulating yourself.”

“People who make it through the Dip are scarce indeed, so they generate more value.”

“Countless entrepreneurs have perfected the starting part, but give up long before they finish paying their dues.”

“When the pressure is greatest to compromise, to drop out, or to settle, your desire to quit should be at its lowest.”

 

[JasonR]

In the spirit of giving value, I believe its in the overall best interest to keep this post up.

The copycat has been banned, and again, my attorney is drafting up documents to send to these guys.

I'm not sure how much I'll post here, any more, if at all.

However, I do want what value I have provided to stay up.

Funny thing is, when you ride on someone's coat tails, it's usually short lived.

It's been a pleasure being here, but it's time for me to take a long hiatus.

Thanks for all of the wonderful people I've met on and through this forum.

Thanks @MJ DeMarco for taking care of the issue promptly.

 

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[DeletedUser2]

Tell us the story of the fired vendor again Uncle Jason!

Z

 

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[JasonR]

Here's a funnel Webinar I signed up for from Digital Marketer. Here's the replay - it was useful to me, and hopefully some of you will find it useful.

http://funnelblueprint.com/webinar-replay/

http://funnelblueprint.com/whiteboard/

Obviously, I'm not associated with these guys in any way, but I figure the best way to learn is to learn from the best in the busines.

 

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[MJ DeMarco]

3. F*ck SEO. See #4

Amen, hallelujah!

 

[JasonR]

It seems like based on your advice, you would recommend sticking membership sites, rebills, SaaS and against selling an item unless you can also upsell something as well?

Physical products are awesome! I sell physical products. What I'm saying is, once you have a customer, figure out what else that customer would want. Not against physical products AT all.

Free Bonus: How to hypnotize a chicken:

Yes, this is me. Yes, the chicken is alive!

 

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[MJ DeMarco]

Don't need to read anymore. It's GOLD already!

 

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[Y.B.]

http://nichehacks.com/survival-life-1-million/
http://www.digitalmarketer.com/6-million/
http://swiped.co/file/landing-page-from-survival-life-ryan-deiss/
http://preparedcopy.com/why-free-offers-arent-free/

 

[JasonR]

Just put together a deal to launch another product in the pet vertical, something that already exists and is selling on the market, but with a little bit of a different spin and secret ingredient.

This one will go on Amazon, has great margins, and we will also build a direct response funnel out of it.

Haven't been this excited in a long time.

Investing pretty much every cent of profit back in to infrastructure, so we can turn $1 into $3 or $4 in the near future.

This short of shit makes me super F*ckin' excited.

Learn to leverage your networks to find mutual partnerships and JVs.

All I have to do is oversee this project, I'm not in the day to day grind of the work. All Amazon listings will be handled.

I can probably even borrow the money I need to start this, although I don't have to.

F*ck yah!

Edit to say: Think outside the box a little. Don't let money or lack of that "billion dollar idea" get in your way.

 

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[JasonR]

Awesome story. Too bad there is no real way to filter the idea stealing douchbags out of this place. Would love to hear how things are going. The website looks great! Thanks for all your time and info Jason. Much appreciated.

Things are going well. Constantly pivoting and changing, because you have to.

I won't be updating this thread with my business info or anything of the sort, because of obviousl copycats. My fault, my bad - I won't ever disclose what I'm making again (bonehead) lol

I did order from my copycat, and never received my stuff.

Whatever, it happens, it's business.

I do know, that whatever I do, I won't NEED a job any more.

My life has changed, and I see opportunity EVERYWHERE.

Even if I shut down my business today, I wouldn't need a job.

ForeverJobless as @snowbank says.

 

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[JasonR]

So - in business, I'm learning to realize that while most days are GOOD, some days will suck.

Sometimes, sales will be slow. There will be dips. There will be "oh shit" what do we do moments.

It can bit a bit of an emotional roller coaster at times, so I'm learning to take my emotions out of the process.

Like I was saying, some days (very few days) sales will suck. It is what it is.

I've learned to not be scared and pull my advertising money out.

Sometimes, you have to pay to play.

 

[MJ DeMarco]

I think Jason will be back when I start bragging about beating him in Fantasy Football. I'll make sure to gloat here.

In all seriousness, guys read the SECRECY thread. Contribute to the forum in a manner which doesn't jeopardize your own meat and potatoes. There are plenty of things you can share without handing out the keys to your castle.

I think Jason became too visible and open for his own good, the Reddit thread, this thread + the INSIDERS thread, and then the ForeverJobless podcast ... all of this accumulated into something a few individuals (I'm sure there might be others as @IceCreamKid mentioned) found all too easy to copy, and I mean COPY. The real danger is linking your business to actual sales/profit figures as this sets you up to be a target. I hope that doesn't sound like I'm excusing this slime-bucket because I'm not. It just really makes me sick and proves once again, the 1% f*ck it up for the other 99%.

As for the offender, I contacted him seeking explanation and then I removed him. And if anyone else wants to repeat the same type of thievery, you will be removed as well.

Hopefully Jason will recover from this and find it just a nuisance to his business and not a threat.

Ohh yea, and YOU CANNOT HIDE. Steal and you will be outed. Both times the person thought they could covertly copy and slither away unnoticed. Nope.