Welcome to the Content Supply Show. This is the show where bring together entrepreneurs and experts all across the internet especially those who were bringing tons of value to the world, from behind the computer to front of stage. We break down their creative ideas, strategies and stories that guided them along the journey of entrepreneurship so that we can all learn and be inspired together. Today I have on someone pretty incredible he is a really cool guy. His name is Mike Arce, he is a business owner and entrepreneur, speaker coach, advertising professional and he owns Loud Rumor which is a 7-figure advertising agency for fitness studios and independent gyms. He also host a top fitness video podcast called the GSD Show. So Mike has a pretty interesting story. It goes back obviously many years, as for many of us, to around 2010 where he was formerly a personal trainers and seen some hard time with his business, the market was low, starting a new family, both he and his wife find it hard to have a job, to get job and to pay rent really. And so they started Loud Rumor back then for the purpose of just being able to get by to begin with, to provide for his family, and to simply pay rent. And for the past 7 years it’s really evolved to what it is now which is a 7-figure business. For a while there they had about 40 solid clients which was great, it kept him in business, and being able to pay rent, like his initial goal was, but of the many things that helped define and helped him grow his brand even quicker, one of many aspects was the ability to niche down and into focus and what they focused on was servicing fitness studios and independent gym. So by doing that and listening to the direction of business coaches they focused and after 18 month, thew grew from around 40 clients to over 500 clients. So you could learn so much more about Mike on his website www.mikearce-- M I K E A R C E.live. Or his agency website, loudrumor.com and also his coaching website youragencycoach.com. So before we get into the interview, let’s chat Content Supply. Content Supply is a creative content as service business where online brands and entrepreneurs can subscribe to a monthly supply of custom content to grow their business. So content like video, podcast, image and blogs. This content is custom built to fit into three phases of your marketing experience. So one, free content on social media, two, paid ads, and three, content used for paid programs, membership or funnels. We’re all limited on time and resources to produce all the content we want and need to support our customer’s journey from point A to point Z. Content Supply help supplied the filing of that gap. It’s like the PBJ between your bread of your product or service and the bread of your funnel or your conversion tool. Go on over to contentsupply.com to learn more. So now let’s get to the interview.Dallin Nead : Mike, thanks for being in the content podcast today, I appreciate it.Mike Arce : Thank you. Dallin Nead : So let’s step back how many years from A B to why you started Loud Rumor to begin with? You and your wife had a conversation, you have all these things leading up to it, why create Loud Rumor?Mike Arce : We started for a year before we actually did anything with it. We started in November 1st, there was a cousin of mine that is a web designer and we thought it would be cool if you know maybe she can do the work, she doesn’t like to sell or market and I don’t want to do the work I just like to sell and market, and so we work together on it kind of a lot of hiccups along the way because you know none of us really have business experience at the time, I had personal training company before but other than that not really in this space. So we were making okay money, we were doing good. And I think because we were doing good, we didn’t actually take severe action on growing the business then my wife got fired twice during the same pregnancy and the economy fall all the time low in 2010 and so she wasn’t gonna get another job because she was like very much showing, and I personally, my commision was going down because everybody was cancelling because the economy was at it worst, so we decided you know, we are not gonna be able to find a job, businesses are closing, so the only thing we can do something is if we open one. So that’s kind of how it start.Dallin Nead : Crazy. Crazy. So you were a personal trainer, was sales always a part of your personal training business? Like sales and marketing do you know much experience there or was it all just like, you threw yourself into like jump in, went all in and learn--Mike Arce : Well I always knew sales was important because everything I’ve done before that, I had a really great manager and coaches in the past when I was an employee, but all of them really coaching me on how important is sales to a business and if you get really great at sales, everything gets easier and sales solves all problem. Obviously that’s in the right context, if you have customer services obviously sales is gonna solve that problem but the real problem is if we don’t have money, if we can’t hire a great people or find a great coaches to help you evolve that, obviously if you don’t have sales coming in then you’re going to be screwed. But if you can make sales, with us, we’ve made so many great sales and a lot of sales were the last couple of years, that allows us to have the margin to pay people to be better than what, you know if we don’t have that money. And also we have to hire coaches, go to courses, go to training, go to conferences, so in a way sales does cure all. So yeah I always value it and I love doing it and I see how important it is. Dallin Nead : Solid. So then in this process, so the market was at the all time low, you’re losing, you’re losing clients in personal training, your wife was having a hard time keeping a job as you guys are starting a family, with starting Loud Rumor, what was, are you gonna narrow it down to one thing, what was one thing you want to accomplish? What was you big desire? Was it to provide--Mike Arce : No, not be broke. No I didn’t have a vision. I was really broke so I didn’t have-- like we have baby on the way, we had $500 in savings and we were losing $1500 a month after this month. So I didn’t have like a vision why I want to build this big thing. I just wanted to pay our bills and be able to feed the baby. That was it. Then once we realize that this could become something, we started setting bigger goals. “If I could just make 5 grand a month if we could get 10 grand a month, if we could just get 15 grand a month.” And next thing you know, it’s just kind of mushed and now our goals are much much bigger. So yeah that’s how it kind of got started. It wasn’t like this big vision at all, wasn’t like that. I just needed to not die basically. Dallin Nead : Well it’s just like simple livelihood really. I mean it always went back to the family. Sounds like--Mike Arce : Yeah.Dallin Nead : How-- so what, that was in 2010? And so what 7 years later I imagine families grown, your businesses grown. What do you do contribute the growth to? Like what were the strategies, what were the steps that you thought that really defining for you guys?Mike Arce : So I’ve been answering this questions wrong for the last year and a half, I feel a little bad about it, I thought it was the right answer because for me it was that one thing, but it’s not the one thing for everyone when I started realise that, people started to ask me to coach them, so I coach you know like these four guys one on one that-- well, one girl three guys that they want to build like me. And I say look, “This is the one thing you have to do because it’s what I did.” Because for me it was that one thing and we pushed them into direction of niche in, finding one specific focus on who are you serving for and what you’re gonna do for them and that’s it. But out of the four people, three of them weren’t getting anywhere and one of them was-- three of them were not getting anywhere, so I started to look out what is it that these three have but this guy doesn’t have or vise versa, what are they missing that this guy has, and I realise that this person over here the one that’s doing well, he actually has businesses, he’s pretty educated in, at least he’s pretty educated, he doesn’t have MBA, I don’t think he even has a college degree, neither do I, but he reads and he understands the different pillars of the business, between not just sales and marketing part but the culture and developing people and finances and creating processes and systems so they will run more efficiently. Whereas these three people they just starting their business and they niche, so for me, I was actually getting a lot of coaching and I was spending a lot of money in business education to learn how to run my business and I was reading tons of books but the problem is I don’t have that one thing that tipping point, that’s what people called tipping point that allows me to unlock it. So once we focused then it was like everything got to play. All those things that I learned, got to play, and that open my doors up and same thing with this one coaching client. But if I would, let’s say focused in 2011 or 2012 when I didn’t have all that, I would’ve hit the wall the same way. I would probably gotten a few more clients that I did because you know that attracts when you niche you get more client, but I would have the same issue where I wouldn’t have been profitable because I wouldn’t have grades and classes in place to be able to do more with less, I wouldn’t have known how to manage my money, I wouldn’t even had budgets and caps on things you know to keep me focus, I wouldn’t have strategic partnership so I can leverage my existing audience to create other additional income for me. I wouldn’t have great people and know I would be able to learn how to develop those people into greater people. There are so many things that I didn’t really realize I picked along the way from really great people, mentors, and coaches that I thought just didn’t work for me but they did work, I just need that one thing to unlock it. And so there wasn’t one thing, there is never gonna be one thing, like, “What’s the one thing that makes you a great football player?” There’s no one thing that makes you a good football player, there maybe one thing that you do that makes you stand out amongst other people but the fundamental 90% has gotta be there. Dallin Nead : So it’s not narrow it down to one thing but I guess one aspect of your growth was niching down. Mike Arce : For me that was the one thing. You taught to another person that’s already niche, and they struggle, well that person, it could be knowing how to find, hire and develop great people. So, I can get out of the business and work more on it and not in it. So that’s the questions I want everyone to be very careful, because you may not have the same one thing that I may need. Zach didn’t need to be great at three. Zach-- here is one or two things, he needs to be able to rebalance and stop people from scoring on the inside. Stephen Curry doesn't have that one thing. Stephen Curry just needs to hit three’s you know. He doesn’t need a blocker to stay even. Everyone’s one thing is gonna be different.Dallin Nead : Right.Mike Arce : Out of whole, both Zach and Curry know the game of basketball, which is if you’re an entrepreneur you have to know the game of business, but then you’re one thing is going to be different. Dallin Nead : Totally, totally. And I love that answer too because it caters to how each person or each agencies businesses different and that what gets me interested. You mention how you got your coaching, you have your clients, and-- I’ve got my little one year old and my wife is taking after him, hopefully, he didn’t scream doing it. How many kids do you have right now?Mike Arce : I have four kids.Dallin Nead : Four that’s great. So you mention coaching, and one thing JT mention to me too is that your agency coach is-- is it, that’s the title of a new, or evolving the things that you’re doing right?Mike Arce : Yeah. Dallin Nead : Tell me more about that. Mike Arce : So like I told you, we had people randomly came up to me asking me for coaching and-- I think four because I saw the potential in the four. But we had a lot of people like I get on podcast like yours and people and your audience will say like, “Hey can you show me how to do that? I’m stuck on my business.” But it’s not, coaching one on one is not scalable, it’s very-- it is if you want to make 5 to 15 grand a month or something like that or if you want to charge a lot of money but you’re gonna have to get less clients. So for me, it wasn’t really a scalable thing to where we can do like 20, 30 million dollars. So what we decided to start doing was creating the course and several courses supporting the course to help agencies. And so I can do this almost like an online lecturer setting, you see people like Harbour, Harbour does it, yeah, or somebody called to have online courses now it would teach people how to do things from point A to point B and then point B to point C right. Like there’s English 101 and there’s English 102. There gonna be the same thing that we did. So our programs aren’t designed to help people start an agency, there’s plenty of people out there that have that, they’re great titles Billy Jeans all those guys got a really great program. What we want to be is the next step. So now you want to start the program and you get a client or two and you get them results, how do you build a scalable marvel and what are the things you need to focus on as a general sense of business, so that you can bring on the right people so that you can have great system and processes, so that you can have consistent marketing that brings in sales for you, so you can increase potential and get more referrals, get testimonials, and so that you can manage your money the right way, so you’re building your business like a business, and not like a hobby you talked about like your business. Dallin Nead : With that being said and you’re talking about businesses not necessarily having one thing, how do you help through the coaching program for these new or evolving agencies who not necessarily find the one thing but to kind of, to niche down or to find the tools and strategies that work for them that are custom to them? Is it that you provide kind of a whole blanket of resources to use or do you kind of let them kind of pick and choose? Mike Arce : So in the basketball, in the basketball analogy, we talked about you know, Zach and Stephen Curry so obviously they have different natural abilities, because they have natural abilities it’s different and in the business world it doesn’t mean that you will be more of a shotwalker or you gonna be three-point-shooter right, but what it means is you as a CEO, you may have different strings. So for example, “I like marketing, I like coming up with new ideas.” So for me, that’s the type of CEO’s that I am. But I have people on my team, the leaders on my team, if you look at them, they’re very organized and systematics, and you love that you processes and making things work better. So that’s my thing right. Shot walking for me is sales and marketing. But for some other CEO’s out there, they don’t like being in front of the camera. They don’t like sales, they don’t like even learning about it. They like creating great products and things that deliver tons of value, and so for them, they need to hire people that can do the sales and marketing. So you set to find out what you’re strength are and build a team around it. As far as like, “Do I help somebody find their one thing?” everybody knows what that is, it’s more of, it’s a recipe. Starting doing what I’m doing. I’m not a genius, by any means. I’m not actually even that creative. What my goal is, every time I have a new coach, which I have coaches all the time, I’ve had two days that I’ve worked with right now, up to four at once, but I get specialty coaches. I don’t get like a business coach. I get like a Facebook Ads coach, I get a Youtube Ads coach, I get a branding coach, so I get different coaches. But I worked with those coaches every single one I talked to I say the same thing, “I’m gonna be the best student, and you’re gonna make me the first testimonials you show people the prospects so you can get them to wanna sign up with you because they know what’s possible.” That’s my goal. So in that, I guarantee you’re not gonna find in any of the coaches except for Russell Bronson because I just started with him, anyone of my coaches, they’ll tell you that I’m their best student, and the one they use in testimonials. So for people coming into my program, the deals are the same. This is a recipe. If you cook-- I give 10 people the recipe for Thanksgiving of how to make this turkey and this stuffing and you follow the recipe to a tee, you will all end up with virtually the same turkey and stuffing and everything taste virtually the same. However, if you all strain, “I’m not gonna adding the salt, I’m gonna adding this in, I’m gonna focus more on adding pepper and less garlic.” Well if you do that, you’re not gonna come up with the same turkey. Another thing it may come up a little better, probably it will turn up more worse, but the point is there’s a recipe that works, and all I’m doing is following recipes. That’s all I’m doing and now what I’m doing in return, is giving people the recipe that I have gotten and it works for me and all they have to do is follow the recipe. And if they do, it works, and if they don’t, it doesn’t you know.Dallin Nead : Well I like that too and I found getting deeper into the world of masterminds or coaching and having those business connections to grow, it’s all about putting it, I mean formulas is a tubby words because I think sometimes people can assume that A+B=C and it won’t work for every single niche, every single brand. But there are, it’s true though there are specific formula and recipes that are proven. I think Clickfunnels, for example, is one of those processes that is proven, it’s proven making people money with the right kind of funnel. And so, in fact, I have recently joined mastermind too through Julie Stoian who is also an the inner circle with Russell Bronson, and so I think there’s a lot of growth and potential that come through mastermind. And it’s-- I’m really interested to see your agency coach and how that evolves and it’s all about, as you mention too, tapping into things that are scalable because I think, as I’m sure you’ve experienced with who you interact with I think that are business owners who reach a wall of not being able to scale anymore. It’s whether you’re tapped out as building agency to sell your products or coaching programs or maybe it’s the inability to--Mike Arce : No there’s no one reason you hit a wall. There are several reasons you hit a wall. You don’t hit a wall because of one thing or two things. You hit a wall because of many things. Because I have so much still to learn in business. There are people out there making billions of dollars, Apple is about to be the first trillion dollar company and you’ve got people like Elon Musk who has like several billion dollars companies. I’m like not close to that right? So I have so much to learn. There’s so much I’m doing wrong compared to Elon Musk. There’s so much I’m doing wrong compared to all these great entrepreneurs. So it’s not one thing. What I’m doing oddly 80% of things correctly. So you just need to do a few things right. I guarantee you in 3 years from now, 5 years from now, after I’ve had all these coaching sessions with other people that would be great because I constantly getting coaching, I constantly stepping up with who I coach with, I’m going to look back in today and I will say, “I can’t believe I did it like that. I can’t believe I thought like that. I can’t believe that was my main way of getting client. I can’t believe that’s how I spent my money.” I’m gonna say that in 10 years, 5 years, 3 years. So there’s not a few things that you might be doing wrong that’s stopping you. That means you probably not even doing one or two things really really well. That’s really what it comes down to. Because you could be messing up 80% and 20% could do really well for you. I don’t know if that makes sense or not but I mean--Dallin Nead : Well it does, and the way you said that to especially the end with the 80 to 20%, it goes into-- yeah you should be investing in only 20% of your time and resources into the creation content and 80%+ into the promotion and the business otherwise there’s no return on content value or effectiveness of it. Yeah I know it does definitely make sense and I agree and I think either whether you’re being coach or be coached, there’s a full circle I think learning opportunity there where through coaching and teaching, you’re relearning or reaffirming things you already know or need to reteach yourselves or you realising that you have, you know you’re deep in knowledge of certain materials. And same thing on the receiving side there’s never a cap to what to be learned and applied and it’s-- I think the pace of business especially now I think with what the internet is providing, is that you constantly have to be adapting and learning for you to keep up. Yeah I think it’s super interesting, I think with Loud Rumor and the fact that you guys have niche out to what specific to like fitness pros and gyms, that is I feel like a big indicator to the growth and success you have had--Mike Arce : No, no, the more you can focus, the more you great at it. If you’re just focus on playing guitar with a pick, that’s super niche plain. You can say, “I want to be a musician, I want to play guitar, I want to play acoustic guitar, I want to play acoustic guitar with a pick.” If you do that, you probably won’t even have to play with finger pick you know I know how to play with a pick at play guitar. But you get great at that, much much faster than anybody said also wants to play the piano and also want to learn this at the same time, because you’re focusing. So anything that you worked on, if you just worked on free-throws, you will be good at free-throws. If you’re just worked on in helping fitness industries in marketing, you’re gonna get great at that. So anything you worked at, you get better at, we all know that because we told our kids when we want them to get better at something, but we just don’t do it ourselves, we tried to do everything. And so niching is definitely something a lot of successful people do, and I’m taking a page from that book from coaches and mentors and I’ve had enough coaches and mentors tell me I needed to do it so again I want to be the best student I did it and for the first 6 years of our business we only got 42 clients and then the next 18 month after that we got over 500. So 6 years 42 clients, 18 months over 500 literally eleven axing your business in a fifth at a time. So there’s definitely value and a great book on that is built to sell. It’s a great book. Dallin Nead : Solid. If you could sum up this 7 years plus journey, building Loud Rumor into how do you define success, what is success for you? Personally as a business owner. Mike Arce : Okay so okay a lot of people don’t-- okay so I’m gonna say the cliche thing--Dallin Nead : Yeah and then tell me the real--Mike Arce : And then tell you I’ll you the real thing. And the cliche thing I tell you right now, it’s not the truth as A, it’s the truth as B. So here’s what I mean. Everybody will say, “I just want to help people, or I want to help a thousand people, I want to help 10.000 people” and then that’s really cool. Of course you want to help people. Most people don’t want to make money feeling like they’re ripping people off. Everyone wants to make money knowing they can help people. But at the end of the day, you need a score and so for me I want our company to make as much money as possible by helping people. I don’t making helping people first. I know that what everyone says to do, help people first and the money will follow. Of course everything we’re doing for that is, for defining success is how much money we’re making, is that mean we’re helping people, people are telling other people, people are staying our customers, people are buying more stuff, so that’s the real results. You don’t-- takes fourth, you don’t go, “Man I judge success in the MBA, as a basketball player I judge success by how many fans we make happy.” NO. We judge success by how many wings you have and if you won championship. And if you didn’t, you probably didn’t make any clients happy, not as much. The further you are from that goal, the less fans you’ve made happy. You probably lost a lot of fans. But the more championship you win, you probably re-cut another fans from another teams. So the goal is to, for me, get your company in highest revenue possible, with the best margin possible, while helping people, right. Doing it ethically. Your helping people and an extra scoreboard for that. And that’s how you should play. Every year you should make higher and higher and higher, if you’re not doing it, then you’re not successful. I know what I’m capable of, you know what you’re capable of, everyone’s watching listening this know what they’re capable of. So you should do everything you can to height capacity. And if you’re not you’re being selfish because you could be helping more people. You could be creating more jobs, and you could be donating more to charity. I tell you right now, I don’t give to charity this year then I may in 2010. So in 2009, 2008, when I wasn’t doing my best that’s selfish because I choose to sit on the couch and watch TV over doing something that can donate as much money as I did today. It’s so funny people think that, what do you call it, rich people they think that they’re greedy right, “Why you need that much money? This guy making 2 to 3 million a year why do you need to make that much? What do you do with all that money?” That’s what people said. What do you do with that money, I think for a lot of things. Donate a ton of money, help a lot of people, create a lot of jobs, start new ideas, there’s a lot of things you can do. How about this, what can you do with $30.000 your income? Nothing. Pay your bills and that’s it. And you know you could do more. Almost everyone out there make more than $30.000- $40.000 a year. But you choose to do what, that’s right, you wanted to sit on the couch so you did it. You want to watch TV so you did it. You didn’t feel like reading a book so you did it, so who’s greedy? Sounds like you got everything you want. You know what I’m saying? Whereas the other guys are making sacrifices, the other guys up all night, the other guys working deals, losing all his money two times a year, going bankrupt twice a year, in order to make something come to life. And he is giving a lot of it away. So I think there’s a bad perception out there and what’s real. So success for me, making as much as I can, doing good for people, and then giving a lot back. Dallin Nead : Well, and I like how you qualified that answer to be like there’s a cliche and there’s realistic answer because I think people focus on the cliche which is more than--Mike Arce : Because they think of themselves. Because it’s more marketing.Dallin Nead : Yeah it’s totally marketing. Mike Arce : Here’s the thing, my business is to help businesses and so while I’m marketing to get customers, I’m also hurting them, and that I’m not actually getting good services because I’m getting to believe that how they should do. And so I can’t ethically deliver good service because I don’t believe that we do this because we want to save the dolphins. Here’s the truth, if you truly want to save the dolphins, then great. But most people are saying the want to save the dolphins but they can’t give a shit about save the dolphin if it doesn’t make the money and they really want to make it. So I think there’s ought to be more honesty. Hey man I’ll talk to you soon, thanks a lot , I appreciate it. Dallin Nead : Got it. Take care. See you. So that about wraps it up for the show today. Thank you so much for listening. The fact that you’re able to drop into this conversation hopefully be inspired through the stories and ideas shared here is pretty awesome. So I’m huge fans of relationships and getting to know more people. So if you have thoughts about the show, want to leave a review even, have questions about Content Supply, or just want to connect anyway, you can find me across the socials @DallinNead and of course go on over to contentsupply.com and check it out. Thanks again, I’m so glad you’re here and I can’t wait to share more here at Content Supply. See ya!