Fastlane AMA: James Altucher; Startups, Publishing, Bloggin More...

[J. Altucher]

Would the balance change if you were in the above scenario?

First, I would really examine what I do during the job that I could change:

- do you go out to lunch with co-workers every day? Change it to 2 days a week and work on your own stuff the other 3.
- do you go on cigarette breaks twice a day? Stop and do your own stuff.
- do you find yourself in waste-of-time meetings? Avoid those.

I'm not 100% sure, but 90% sure you can probably find jusst an extra 5 hours a week you can spare.

Second, I'd start looking for a new job. This doesn't mean quit today. It means start writing down ideas of other you can do for money. Start today (writing ideas) and see where it takes you

 

[Vigilante]

JA - your latest blog post was not only the best of your writing I have ever seen, but maybe the best blog post I have ever read. It is MUST READ for any Fastlane entrepreneur.

"THE ULTIMATE CHEAT SHEET FOR STARTING AND RUNNING A BUSINESS"

Reposted to https://www.facebook.com/BlazeYourOwnPath

 

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[J. Altucher]

2. you talk a lot about investing etc....what are the best resources to learn about all this investing/stocks etc?

Read everything you can about Warren Buffett. Investing is not about trading or making money or charts or whatever. investing is about understanding business.

 

[J. Altucher]

A small commercial break. Joe DiMaggio's family asked me to do a blog post commemorating the anniversary of his 56 game hitting streak. They just posted it. Proud to be part of that:

Create Your Own 56-Day Hitting Streak by

 

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[InMotion]

One thing I would like to point out. James has an section of his blog titled "Ask James" in the far right hand corner. Lots of previous Q & A posted there...great information.

Ask James Altucher Confidential




Found a great article there titled "What You Can Do If You Are a Nobody":

http://www.jamesaltucher.com/2012/10/what-you-can-do-if-you-are-a-nobody/

Found a new favorite quote of mine in that article:



"There are no gatekeepers in life, preventing you from doing what you want to do. You are your only gatekeeper. You are your only prison warden." ~James Altucher

 

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[J. Altucher]

- Can we hope to see you around here again on the forum from time to time?

Definitely, for one thing: ask me questions all this week and next if you want. But I've been checking out other threads and they are very interesting.

 

[J. Altucher]

How do you control your ego?

I think ego kills writing and I like to write. I also meditate, read inspirational books, and know every day that I can lose everything, including the people I love if ego gets out of control. I've already been through losing so much I don't want to do it again.

 

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[J. Altucher]

N= Need, your product or service must be of value or benefit to others to warrant the transfer of money between parties.
E= Entry, there must be barriers to entry.
C= Control, you must control vital variables that influence your business.
S= Scale, it must be a scalable business, instead of just being able to sell 10 units, you need to be able to sell 100,000.
T= Time, the business must be able to become a self existing organism on its own to free you of time bondage.

This is a great checklist for starting a business.

Note, though, that the business will change drastically after you start it. Almost every business does. Some recent examples:

Yammer (an enterprise messaging app) started as Genii (a genealogy app)
Buddy Media (an enterprise software product company to set up facebook pages) started as a faux facebook co and gaming company
Groupon started as a way to raise money for charities
Twitter started as a podcasting platform and the SMS stuff was just started as an afterthought
Microsoft started as a compiler company and ended up as an OS company
Google started a search engine and ended up as an advertising platform (first revs were about 5 years after launch)

and so on.

The interesting thing about business is that the most important thing to start one is you need someone who is GREAT at starting a business. By that I mean:
- someone who is very good at selling
- someone good at vision
- someone good at execution
- someone good at all of the above in your checklist
- and then, perhaps most importantly, someone who can switch everything on a dime without causing too much disruption in the business.

Those are the best leaders. And I've only done well in companies that have good leaders (as an investor or as an entrepreneur myself. When I was a poor leader I created a poor business, even if I had demand).

 

[J. Altucher]

Do you have an intent on selling rights to any of your books for international translation? If so, what's your opinion on a literary agent for this purpose? Or would you do it yourself?

MJ, yeah, you should totally not be writing, running a business, and negotiating the fine print on Taiwanese and Brazilian rights for your book.

I use About Us | 2 SEAS AGENCY | Foreign Rights & More2 SEAS AGENCY | Foreign Rights & More , Marleen Seegers. She has contacts in every country. Goes to every international book conference, and gets deals done quickly. 10% commission, which I don't mind (less than my literary agent was before I fired him).

 

[1step]

James, what is the core message of your book so I'd have an idea of what's in it.

Hate to be that guy but this is an extremely lazy question and is disrespectful of his time (in my opinion).

Go to amazon.com search for "choose yourself" and go to its amazon details page. Click the image of the book and scroll down, you can see the table of contents as well as the introduction. If you choose you can also read the "book description" and check out user reviews.

 

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[J. Altucher]

In your opinion, what industries or segments will produce the most entrepreneurial opportunities, for non-rocket scientists, over the next 5-10 years in North America?

What are the promising new/young industries on the horizon entrepreneurs should have a look at?

Honestly, I am seeing people every day make millions of dollars through internet marketing. Get really good at how to build, rent, use email lists. Write an info product that people will want to buy. And sell it.

 

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[J. Altucher]

Thanks a lot for doing this James.



Don't feel the need to respond if one of the questions above is too personal. Thank you.

Don't worry about that. I don't give a shit about personal.

 

[J. Altucher]

Who are the three "best" investors you have met, and what impressed you the most about them?

#1 - The Best Trader In the World Worked for Bernie Madoff Altucher Confidential - the best trader I ever met worked for Bernie Madoff

- Another guy I know that just trades microcaps

- And finally, Warren Buffett.

The common thread between all of them: humility. They know they can make mistakes. They don't argue with the markets. They don't argue politics. THey don't argue with the machine. They don't have psychological hangups about whether they are right or wrong. They look for MASSIVE deals, they place their bets, they take their bets off quickly if they are losing.

Assume that when you put money in the markets that you are the fish at the poker table.

The other guys at the poker table are Bernanke, Putin, China, and Buffett. Don't argue with them if they all have aces and you have 2s.

Make sure you find a table where you can very clearly see your quantifiable edge. And if you are wrong, get up quickly and find another table.

 

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[DeletedUser394]

Just placed my order. Thanks for your time here James, and thanks MJ for everything you do. I think this is the 4th time I'm buying tmfl

 

[Vigilante]

As a side bar James, you will never see the full number of lives you have impacted and the amount of people you have set free. The book sales above are not just "book sales." To me they represent a potential of lives changed. And then... the book and precepts are passed on. And on. And down a generation. And on.

Your legacy... is bigger... than you. The ripple effect from your words, your transparency, and your real life example... casts impact well beyond what you can see.

And this, for me, is life itself. Well done, sir.

 

[J. Altucher]

do you think that 19 y.o from Europe (Poland) can be entrepreneur too? If yes do you know any examples of people from developing countries who gone from nothing to living a good life?

Yes and yes. Basically, take a model that has worked here in the US and then build it in Poland. There are two German brothers that keep doing it over and over again in Germany. Do it in Poland or Eastern Europe. Example: make 4sq for Poland. Or zappos for poland. Anything.

 

[J. Altucher]

Care to share your latest thoughts on Bitcoin? I remember reading a post of yours somewhere on bitcoin being utilized to do other things. What needs do you think can or will be solved by utilizing the blockchain?

Thanks!

For reasons I describe below: Bitcoin is a “choose yourself” currency.

Why is it “a Choose Yourself” currency?

It is not dependent on any one person (for instance, a Federal Reserve Chairman).
It is not dependent on a government (for instance, a government that relies on a fiat currency).
It is not dependent on complicated central bank operations to have the money transfer from one wallet to another (every wire or transfer from one human to another in US currency involves the central bank at some level unless it is in small amounts like a cash transaction).

Nor is it dependent on “In God We Trust”, a phrase that was invented in 1862 so Lincoln could take us off the gold standard, print money to fund the civil war, and rely on God and a little prayer that the fiat currency would work which, thank God, it did.

Here's the other important thing for bitcoin. It's not really a currency, it's actually a replacement for contract law in a way that paper money can never be. The cryptography baked into any cryptocurrency has actual value. Someone should set up a business with bitcoin as a replacement for:
- escrow agreements
- wills
- trade finance agreements
etc

There's various sites that go into this in greater detail but I'd recommend looking into these. Every startup in the bitcoin space focuses on brokering.

But
-merchant tools
- contract law

is a wide open gaping hole for a bitcoin startup and the money is there.

Finally, the US will never adopt bitcoin as a currency so I would not daytrade it. BUT, here's what will happen.

Some country will go "offline" due to corruption, bad economy, black market, etc. Argentina is my pick for this but could be Cyprus, Spain, etc.

Because the currency of that country won't be trusted, the black market will switch entirely to bitcoin. Bitcoin will then spread throughout the country.

When the country comes "online" again, the citizens will not trust the government currency and opt to go bitcoin. This will be a huge boost for that economy as it fits back into the global economy because the currency will be trusted.

And that's how bitcoin will gain in value and become accepted.

 

[J. Altucher]

What's your biggest challenge in your life right now?

Every day i draw two imaginary circles: where I can deliver value & what gives me the most pleasure. Then I try to focus my day around the intersection.

For instance, I like to help people and write. So this forum works for me. It's great, in fact.

My challenge is in eliminating the things that are not in that intersection. There's always other things to do but I am learning more and more how to focus on the intersection.

Ways to do it:
- ignore things not in the intersection. this turns out to be more possible than I had oriignally thought
- understand the psychological roots of why I do certain things (for love, for more money than I need, for "safety", etc)
- delegation
- analyzing the areas that do not provide a lot of benefit but seem to scratch an itch (an example might be getting in an email argument with someone)
- avoiding going to events I dont want to go to (I hate weddings and theater for instance)

 

[J. Altucher]

1. If you had to start all over again from scratch, what you'd do to create a mutli million dollar business (which niche/business?)

I love service businesses because they are profitable from the start. Because I'm fascinated by publishing, I'd open a publishing services business to help authors get edited, marketed, designed, published, rights sold, etc.

I also think there's huge opportunity for selling information products via email marketing.

And there's still opportunity opening up a service business that can turn into a product business on social media marketing and SMS marketing.

I also want to do "the smart toilet". You pee, then urinalysis happens to tell you every day how healthy or sick you are.

 

[J. Altucher]

Great tips, thank you.

A follow up question. I like to write about trading/investing/finance, self help (probably the area where I can give the most value) and raw/vegan foods (I healed myself of a pretty serious illness by changing my diet).

The problem is the diversity, should I write under three pen names. I have a personal blog but I stopped writing on it because it seems like every post I alienate 2/3 of my readers.

Any advice on how to build an audience in this situation?

Don't worry about alienating readers. Your readers are like you - real people with diverse interests. They don't want to read just about stocks. They want to read your personal story and how you get through day by day just like you do.

To be a successful trader, as all your readers know, requires more than just good stock picks. It requires health and focus and enthusiasm and love for what they do.

So don't be afraid to show your real voice. The voice with enthusiasm and passion. The voice that gets you through the day, whether its with stocks or food or whatever. Write about it all and don't hold back anything. It's only through authenticity that you get to be a better writer, build a better brand, an audience, a book, and whatever else you want.

 

[J. Altucher]

2.How do you go about making important decisions? Do you contemplate for hours or are you a full on yes-man?

3.If I put too much importance on a goal it will hurt the process of achieving that goal. I will hesitate and become afraid of failing. How do you balance wanting something and yet not caring enough so you'll take the risk?

If I feel too badly like I want something, then it's probably not good for me. If I'm worried someone won't "choose" me for something, then it's probably not good for me. I have a lot of ways of knowing if something is not good for me.

I'm in the middle of making a decision now about something. I listen to what is being offered. I talk to the two or three people I trust the most, and if it feels right I do it.

Right now my most important thing to me is balancing my business interests with writing. So if it fits in or contributes to that model without risking financial safety, then I am good with it.

By the way, rather than being a yes-man, the most important thing is to be able to say "No".

When someone first asks me to do something, I say "No" (saying, "It's not quite right for me but I'm willing to listen" is a way of saying no)
Then I say "No" again, (saying, "I'll listen but I have to talk to people and think about it)
And saying "No" a third time is important (e.g. I get paid X to do something like this is a way of saying No)

Then if they get through those hurdles and I've listened and gotten advice and its something I want to do and the money is right, then I say yes.

And yes, if you put too much importance on a goal, you kill the goal.

So I diversify my goals as much as possible. Make sure that multiple outcomes are all equally good for me, and then I don't get too emotionally attached to any one goal.

For instance, I'm on the board of a private tech company that is having some troubles. I am doing my best to help it. If it doesn't work out I have 20 other investments.

Or, I'm writing a novel. But I've never done that before (out of my comfort zone by a long shot). If it doesn't work out, I also write non-fiction every day.

I don't stress myself out with goals. Life is too short and I want to be happy and make money. So, in a weird way, I keep expectations low for any one goal and then I know I will always exceed them.

 

[J. Altucher]

I wanted to share a post i put on my blog this morning:

How to Self-Publish a Bestseller:

How to Self-Publish a Bestseller: Publishing 3.0 Altucher Confidential

 

[J. Altucher]

How long did it take you to develop a thick skin as to not care what others say/think about you?

I do and I don't have a thick skin.

Some things you just get used to. There's only so many times different people who have no idea who you are call you a douchebag before you realize that there's probably something wrong with them.

It bothers me more when my friends suddenly decide they hate me based on something I wrote.

BUt even then, although it bothers me, I can't control how they think. I listen, I try to learn, but then I move on.

If someone says something on a message board I don't even look at it.

Think about it: when was the last time you wrote a comment on a youtube video. Probably never.

Me neither.

So I just assume these people have other issues.

Now, some people present reasonable constructive arguments. I pay attention to those but I still won't let my feelings get hurt.

We'll all be dead in a hundred years and as I wrote in a recent post (quoting someone else), we will either die smiling or crying and I choose to go out smiling.

 

[J. Altucher]

Hi James, thanks for doing this.



2. What resources would you recommend for someone wanting to learn more about investments if your knowledge is about intermediate?

Read re-read "The Essays of Warren Buffett" by Lawrence Cunningham. The reason is: an investment really is about buying a piece of a business. So if you haven't run a business, you want to make sure you have the feel of someone who does so you know the subtleties of what to look for.

There's a way to skip this: which is that if people smarter than you are investing and have done all the due diligence, and if you are staying diversified, then by all means invest alongside smart people.

If Buffett buys common stock, of say Coca-Cola, and then KO goes down, it's like Buffett is managing money and I'm getting in at a discount ot him. Which is pretty good. Then do that across all super-investors, across all industries. A good strategy.

 

[J. Altucher]

As a reader of books, I'm always on a hunt for more to read.

If you had to name only 2, 3 or 5 books that mentally had the biggest impact on you, what would they be?

Thank you very much for your time.

I read over 200 books a year so I would say MANY books have had a great impact on me. Books have an impact on me if they have one of three criteria:

A) they are incredibly well written, because this makes me a better writer.
"Ham on Rye" by Bukowski, "Another Country" by James Baldwin, "Jesus Son (stories)" by Denis Johnson fall in that category but there are over 100 more.
B) they increase my knowledge of an area. There is a category of books that I feel like my IQ goes up
"The Rational Optimist", "Abundance", "Regenesis"
C) they are inspirational to me.
"The Power of Now"

 

[J. Altucher]

How would you approach business owners with companies of 1 to 5 million dollars in annual turnover cold in an email or on the phone?
To establish trust, show you can deliver the results etc. The only thing I'm selling them on the phone and in the email is a free marketing audit that will give them the plan of how to increase their revenue - they don't even need me to implement it.

What I would do is find at least one business that you can work with where you know the owner. Every successful business I've ever worked with or started had someone thebusiness knew personally as a first client. Then you can really start to explore what the customer needs and wants.

You only think you know what the customer wants. I don't say this in a denigrating way. Every business thinks they know what the customer wants. But it's rare that a business actually knows deep down what the customer wants. So you need to work with many customers over a good period of time before you know what they want.

And during that time you will switch services, products, offerings, approach, etc several times before you settle on the approach that works.

But it all starts with working with a client(s) that you know personally first. Don't cold call unless you already have a track record and something you can show that has worked before.

 

[J. Altucher]

My wife and wife's family think I'm retarded because I like to rent

Owning causes the biggest "commitment bias". Because so much is invested into it (its probably the biggest investment of one's life) people refuse to admit that it might not be the right solution.

So it's impossible to argue with people about it. In every way, if you look at the math, the math on renting is better. But I've given up on arguing. I just present the math and people can do what they want with it.

But I will never own again (I've owned twice).

 

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[J. Altucher]

I know you don't recommend buying a home so what then should I do with my money as a secure investment while I rent a condo. At my age I was thinking I would just buy a condo for 150k and use the 70k as a down payment for security but would love to hear an alternative plan

Either way you are going to be draining money with mortgage interest and maintenance or rent. 70k is not a lot to retire on unfortunately.

I am sorry for what happened with you and your husband. I hope he is being financially supportive.

50 is no so old. My best recommendation is you invest in yourself. This is where the highest returns are. Keep building teh webbusiness and seo business, but expand your services even more - build FB pages, do Pinterest content, manage twitter presences and blogs for your clients, and even set up SMS campaigns for your clients (have them put QR codes on their products and people scan them to get coupons, etc).

Build out your services and charge more. You will make more andmore money over time and have a good list of clients and maybe you will even be able to sell your business.

 

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[J. Altucher]

You can't just distance yourself from them the same way you could from a coworker or an occasional drinking buddy. What would you do if you woke up tomorrow and Claudia was just consistently negative about everything?

Two things:

A) Don't engage with the negativity. Just because someone says "the world's going to end" doesn't mean you have to say "no, it's not" which will lead to an argument. Or if its a boss or a co-worker, its ok to nod hi in the hallways but you dont need to engage or kiss a$$.

B) Listen when you can. Try to suppress the urge to "fix" things or solve the negativity. Remember, it's THEIR negativity and not yours. So don't inherit it.

C) Finally, having someone to talk to about it (since I don't know the specifics) is good. I'm suggesting therapy but more for tactical purposes than long-term "who is your mother" type purposes. You have a very specific issue. A therapist has seen that issue a 1000 times and will know how to best respond.

But again, the key with someone who is negative but is forced to be around you, you still don't have to engage.

 

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[J. Altucher]

I was kind of intrigued to see your comment below, could you expand a little? Aren't folks just sick to death of email marketing?

Yes and no.

Lets take a quick example. There's a trillion dollars in student loan debt. Let's say you really research this and find 100 loopholes. I wouldn't be surprised if there were 200.

Now you write a $200 book, "100 ways to reduce your student loan debt".

You rent an email list of young people who have recently purchased financial products.

Who knows? You provide value , make money, and build a list that way. It's not a bad thing and it's an easier way than most to make money.

 

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