Real 4-Hour Workweek Case Studies — Allen Walton and SpyGuy, The Path to Seven Figures (#351)
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“And then I wake up at 7:00 a.m., and I roll over and look at my phone. And I have a notification from Shopify saying that I made my first sale for $149. And I let out this huge, orgasmic noise of relief. I was like, ‘Wow. Everything’s going to be okay.’” — Allen Walton
This episode is by popular request!
In detail, we uncover a real-world case study of someone who built a seven-figure business after reading The 4-Hour Workweek (and other resources, of course).
Two important people joined me for this jam session.
First is Allen Walton (@allenthird), founder of SpyGuy, an online security store based in the Dallas, Texas area. Walton struggled in high school and spent a few years playing video games before his mom made him apply for a job at a local surveillance chain, where he worked from 2009-2011. He became interested in starting his own business after being exposed to The 4-Hour Workweek. In 2014, he went out on his own and started SpyGuy, his current business. He built the business to $1 million in revenue on his own, relying on what he learned in books and podcasts, and it now brings in seven-figure revenue with five employees.
The second person joining me is journalist Elaine Pofeldt (@elainepofeldt), an independent journalist and speaker who specializes in careers and entrepreneurship. She is the author of The Million-Dollar, One-Person Business: Make Great Money. Work the Way You Like. Have the Life You Want, in which she looks at how entrepreneurs are scaling to $1 million in revenue prior to hiring employees.
In this episode we explore the specifics of key decisions, helpful tools, early mistakes, and much more, all leading to a business that has exceeded all expectations. I had a blast doing this one, and I hope you have a blast listening!
Listen to the episode on Apple Podcasts, Spotify, Stitcher, Overcast, or on your favorite podcast platform.
[image error] [image error] [image error] #351: Real 4-Hour Workweek Case Studies — Allen Walton and SpyGuy, The Path to Seven Figures
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Want to hear a conversation with an entrepreneur who sold his company for $800 million? — Listen to Braintree and OS Fund founder Bryan Johnson’s rag to riches to philanthropy story (stream below or right-click here to download):
#81: The Rags to Riches Philosopher: Bryan Johnson's Path to $800 Millionhttps://rss.art19.com/episodes/985659ec-7f7e-4373-b2bb-3d64dc1a7c74.mp3Download
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Right now you can get a free month of complete and unrestricted use. You do not need a credit card for the trial. To claim your free month and see how the brand new Freshbooks can change your business, go to FreshBooks.com/Tim and enter “Tim Ferriss” in the “how did you hear about us” section.
QUESTION(S) OF THE DAY: What was your favorite quote or lesson from this episode? Please let me know in the comments.
Scroll below for links and show notes…
SELECTED LINKS FROM THE EPISODE
Connect with Allen Walton:
SpyGuy | Personal Website | Twitter
Connect with Elaine Pofeldt:
The Million-Dollar, One-Person Business: Make Great Money. Work the Way You Like. Have the Life You Want. by Elaine Pofeldt
The 4-Hour Workweek by Timothy Ferriss
Fortune Small Business
Cheaters
The 4-Hour Body: An Uncommon Guide to Rapid Fat-Loss, Incredible Sex, and Becoming Superhuman by Timothy Ferriss
Instapundit
Fear-Setting: The Most Valuable Exercise I Do Every Month by Tim Ferriss
DEAL: Define, Eliminate, Automate, Liberate
Shopify
Google Ads
Google Shopping
1,000 True Fans by Kevin Kelly
Choose Yourself! by James Altucher
Braintree
The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime by M.J. DeMarco
I Will Teach You to Be Rich by Ramit Sethi
How to Be a Successful Copywriter: From a Man Who’s Written Million Dollar Emails by Ramit Sethi
The 22 Immutable Laws of Marketing by Al Ries and Jack Trout
The 22 Immutable Laws of Branding: How to Build a Product or Service into a World-Class Brand by Al Ries and Laura Ries
Positioning: The Battle for Your Mind by Al Ries and Jack Trout
Good to Great: Why Some Companies Make the Leap…And Others Don’t by Jim Collins
Table Top Photo Photography Studio Lighting Tent Kit in a Box
The Masterplan by Oasis
Welcome Interstate Managers by Fountains of Wayne
How to Write Seductive Web Copy: An Easy Guide to Picking Up More Customers by Henneke Duistermaat
In-N-Out Burger
Dynamite Jobs
Remotive
We Work Remotely
The New One Minute Manage by Ken Blanchard and Spencer Johnson M.D.
IRCE: Internet Retailer Conference
Dynamite Circle
South by Southwest (SXSW)
Ideal Lifestyle Costing (And Dreamlining) by Tim Ferriss
Yahoo! Store
Help Scout
ShippingEasy
ShipStation
Stamps.com
Endicia
Third-Party Logistics (3PL): Everything You Need to Find the Right Shipping Provider, Shopify
Stock Keeping Unit (SKU), Investopedia
Traction: Get a Grip on Your Business by Gino Wickman
Scaling Up: How a Few Companies Make It…and Why the Rest Don’t by Verne Harnish
Rocks, Pebbles, and Sand Story, Litmos Heroes
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results by Gary Keller and Jay Papasan
Request for Quote (RFQ), Investopedia
Slack
Priest at Center of Hidden Camera Scandal Refuses Church Order to Return by Emily E. Smith, The Oregonian
Trust Me, I’m Lying: Confessions of a Media Manipulator by Ryan Holiday
Rossen Reports: How to Spot Hidden Cameras in Hotels, Vacation Rentals, The Today Show
eCommerceFuel
EcomCrew
Adult Coloring Books
The Tropical MBA Podcast
How the Coffee Cup Sleeve Was Invented by Colleen Connolly, Smithsonian Magazine
This Month in NASA History: Winglets Helped Save an Industry, APPEL News
SHOW NOTES
How Elaine Pofeldt and I first met. [05:10]
Who is Allen Walton? [06:35]
Why did Allen make the switch from overworked and under-appreciated employee to entrepreneur? [07:33]
How did Allen come across The 4-Hour Workweek? [11:51]
What were Allen’s first steps toward building his own business? He shares early notes about fear-setting and the DEAL framework. [13:18]
Did Allen keep his full-time job while working on his own business as a side hustle, or did he go all in? [17:32]
What were Allen’s next steps toward getting his brand and products in front of people in a competitive market? [20:32]
What books and resources does Allen recommend to people who are trying to carve out their own business niche and be seen by potential customers? [21:57]
While pulling all-nighters and taking product images for his first website, what albums did Allen listen to on repeat? [27:50]
What it was like for Allen to finalize his website and make his first sale. [29:02]
As a married man, how did the conversation with his wife go when he decided to start his own business? [32:12]
Allen describes his chaotic inventory storage situation in those days and the process between a customer placing an order to having it delivered. [34:55]
What are ePackets and FBA sellers? [43:22]
How did Allen select the products that would comprise the majority of his initial inventory, and what human edge did he have over the competition thanks to his retail experience? [45:32]
What led to Allen hiring his first employee, and where did he look for the ideal candidate? [49:35]
What Allen learned about managing a team not long after he hired a second employee. [54:59]
Given retrospective advice from his future self, how would Allen’s hiring process for that second employee have gone differently? [57:42]
Job boards Allen recommends for finding quality remote workers. [58:42]
A books Allen recommends to anyone on the path to become a better manager. [1:00:17]
Aside from hiring an unqualified friend, what other early mistakes did Allen make? How might hiring the right employees help alleviate these mistakes, and where would he find them? [1:01:13]
Conferences recommended for e-commerce networking that are actually worth a damn, and tips we have for maximizing their effectiveness. [1:04:17]
How did Allen handle targeted monthly income, dreamlining, and lifestyle goals when he first got his business going? [1:09:28]
A lot of Internet retailers operate on Amazon; SpyGuy does not. What is Allen’s reasoning behind this decision? [1:12:51]
Allen wants to begin manufacturing his own products under the SpyGuy brand. What does that process look like right now? [1:15:20]
Tools Allen has found helpful for automation and greater efficiency. [1:16:45]
Dire third-party logistics (3PL) problems Allen and I have both faced. [1:20:36]
How does Allen most efficiently manage his time? [1:23:07]
What is the criteria for products Allen wants to start manufacturing first, and what kind of customers does SpyGuy primarily serve? [1:26:33]
Allen tells us about the time his company assisted in a child predator case and the media attention surrounding the event. [1:28:23]
The mixed blessing of product demand spurred by The Today Show and regrets about SpyGuy’s biggest day of sales. [1:34:12]
Highlights of Allen’s journey so far he would never have predicted at its start. [1:36:52]
Podcasts Allen recommends. [1:39:15]
What does Allen hope to accomplish over the year ahead on business and personal fronts? [1:44:27]
Final thoughts. [1:47:15]
PEOPLE MENTIONED
Lady Gaga
Kevin Kelly
James Altucher
Bryan Johnson
M.J. DeMarco
Ramit Sethi
Verne Harnish
Ysrael Bien
Paul Maloney
Emily E. Smith
Jared Fogle
Antonin Scalia
Oprah Winfrey
Naval Ravikant
Kevin Rose
Mike Jackness
Richard Whitcomb
