Andrew Reynolds Cash On Demand (part five)
Description:
To help the film crew fully understand how a Cash On Demand business works — Andrew Reynolds shows the sort of products he sells and discusses the high margin yet low cost products which are used in the type of business he teaches his Cash On Demand students. (Some Cash On Demand students can be seen in a TV interview with Andrew Reynolds recently filmed by the Entrepreneur Channel at http://www.ec.tv/cod )
Transcription:
Andrew Reynolds discusses Cash On Demand with the TV reporter
Andrew Reynolds: There you go -- that’ll get you sorted.
Reporter: Ah, thank you Andrew. Lovely. Lovely stuff. Now then. I read through this information you gave me yesterday, had a look at the system instructions. Indeed, looked at the two DVDs that you gave me. I’m intrigued. Does this Cash on Demand system really work? I mean, it all seems so easy. Too good to be true even.
Andrew Reynolds: It almost does, doesn’t it? I mean, we said yesterday, when we were looking at the school this isn’t the type of thing that they teach you at business school. I did a business course when I left school and they didn’t teach you anything like this stuff. Primarily because they don’t know. It’s taken me about two years now to develop this and fine-tune it to the point now where I’ve really got it down to a fine art.
In that, if you imagine my year. There’s this year. We break that up into three or four segments. And literally, in one segment, like in the last couple of days for example, we put out a project. The cash comes in within a few days. And then you’ve got a couple of months of nothing happening. It’s literally…you get like a peak. If you were drawing a graph, you’d have various peaks through the year as the money comes in. That’s what Cash on Demand does. It allows me to go out and say, “Look, I don’t want to sit here in a shop all day waiting for you to decide to come in and buy a packet of screws off the shelf.” When I’m ready to get some cash, I go out to the market and I ask for it.
Reporter: What sort of products are we talking about, Andrew Reynolds? You’ve got a few things here.
Andrew Reynolds: Yeah. I bought you just a few samples in. Just a couple of bits and pieces here. We have maybe three or four specific product types that we sell. We sell into different little niche hungry markets of people. But there’s a common theme running through in the types of ways that we deliver the information that we publish.
So we’re publishers of information. We sell training products primarily. For example, let’s show you this. This is a simple training manual. This is actually designed for the small business community. The information in here is extremely valuable to a small business owner because it can actually help to increase his bottom line profits.
Reporter: There’s a lot of stuff in here, isn’t there?
Andrew Reynolds: There’s a huge amount of stuff in here. That’s why we sell this for £97, this manual. Because that’s the value of the information in the manual. Now, looking at the business model of it, if you and I are just sort of looking undercover at the sort of business system behind this, from my point of view the margins on this are extremely high. The beauty of the business model I run is that a customer sends me in some money, then I go down to the print shop and run off a copy. And I put it in a binder and I stick it in a jiffy bag and send it off.
Reporter: So this lot’s not sitting on a shelf ready to go then? You’ve actually got to wait for the orders to come in and then produce it.
Andrew Reynolds: That’s the beauty of it. Again, if you’re comparing to the shop model all the time, in the shop, you’ve stocked the shop full of stuff first and then you hope you’ve got the right stuff. Imagine if you’re…I don’t know, you open maybe a gents outfitters or something. You put a load of stuff into stock and it’s all the wrong colours or it’s last season’s colours or it’s not the right sizes. And then you’ve also got to hope that people wander by. Here I’m going out saying, “I’ve got this thing. If you want it, go to this particular website, have a look at it and buy it straight away.” When the money comes in, I go down and I produce this thing. It’s called print-on-demand.
Reporter: So that’s just one item. That’s your paper item. What else have you got?
Andrew Reynolds: There’s a pack of three DVDs here. This package here, again selling to a specific niche market offering training products which they can’t get anywhere else. The value of the product is in the information on the DVD. So it’s the best few quid the guy’s ever spent. That would sell for maybe £67. My cost is three DVDs at maybe a quid apiece. It’s just a different way of looking at business.
Reporter: Is it sort of looking for that niche market, if you like, and plugging into it?
Andrew Reynolds: It is. I mean, this is a product, for example, you can see here this is this product. But that’s how it comes in to me from the DVD duplication house. That’s ready to go out in the post. This is a –
Reporter: What would that cost then?
Andrew Reynolds: Well, this sells for £997. This is, I think, 13 DVDs and a CD-ROM. We already know that’s about 13, 14 quid’s worth of cost. Sells for nearly a thousand pounds.
This particular product is actually designed for professional writers. Now that’s a niche market of hungry people that are already writers and they want to learn how to do specific things with their writing. This DVD set is one of the top five copywriters on the planet. Literally. He’s one of the best guys on the planet, training people through the use of DVD on how to do the particular types of copywriting he does. So to the guy buying it for £1000, it’s the best grand he’s ever spent. From my point of view, less than 20 quid all up to get it in the post to him.
When I set this business up and I’ve been running a business for the last six, seven years, and I decided that I wanted to get rid of all the overheads. I wanted to fine tune the thing so I could literally work one hour a day, three or four days a week from home. So I had a wish list which was things like I wanted to not have to have office premises. I wanted to be able to run this from my spare room. I wanted to be in a situation where I could run the whole thing just from my laptop computer. So I can be over in New York, as I was a couple months ago. I can be set in my hotel room in New York. As you’ll see today, the orders’ll come in online, I send them off to the fulfilment house and I’m finished with it
Reporter: Job done.
Andrew Reynolds: Job done. Absolutely. I wanted niche market products where I could identify a hungry market of people and satisfy that hunger by offering some very niche market products. And I wanted something where you have exceptionally high mark-ups, like these things here. Twenty quid or whatever in the post, a thousand pound selling price.
I get loads of opportunities when I go to America to do joint ventures with guys over there. This was one particular example. This is a set of CDs. Hypnotherapy CDs. I mean, there are a number of titles in here: Losing Weight, How to Stop Smoking, that type of thing. I didn’t have time to do this project because my wish list was I only want to do three or four projects a year. The rest of the…I get loads and loads of this type of project that I just, in the past, have just passed up and said, “Can’t do it.”
Now if I can get people through the Cash on Demand course to actually learn how to do what I do, once somebody’s actually gone out there and proved themselves and got themselves up and running, got their business structure in place, I can then pass one of these projects onto them and we do some sort of joint venture split on the profits or something.
So I get some extra money that I wouldn’t have otherwise had because I wouldn’t have done the deal. You, as a student, would get additional money by me actually giving you the product and saying, “You go out and sell as many copies as you can. Just give me a little finder’s fee or something.” It’s a sort of win-win situation. It’s a cracking business model. You’ll see today, hopefully, as some orders come in.
The above programme excerpt features Cash On Demand’s Andrew Reynolds showing his system for making money, during a TV interview