Episode Transcript
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(00:01):
Jim Klauck here on the Beach Money Podcast. I love what I do.
I get to talk to great people like Al Thomas, a good friend of Jordan Adler.
We're going to talk about network marketing.
We're going to talk about your business, about your life. Al, how are you?
Good, Jim. And yourself? I am living the dream. Thank you so much.
(00:21):
I know that you've just come off of a bunch of different trips because your
businesses have allowed you to live this type of beach money lifestyle.
Why don't you tell me a little bit about your travels recently to get this interview started?
Well, after working hard for 35 plus years in network marketing and other businesses,
I decided to last 65 days to take some time.
(00:44):
I went to Turks and Caicos for a week, leaving there,
coming back to Vegas for a week where I'll live and leaving here and then heading
down to Miami because our son just graduated from high school so I
went down there spent a week with him and bought him a car and I
got tired of the dealership so I decided to fill my credit card pay it that
way that way I get the brownie points came back home for a few days and I went
(01:07):
down to my place in Mexico we have a home in Tulum spent a week there and then
came back and got my sweetheart and we took off to Paris for a week to surprise
her for early birthday present,
and uh we got back from there about about 10 days ago we decided to go back
to Mexico we just got I got back two days ago from our place there.
So it's just a lifestyle that I just want to live because that's what you work hard for.
(01:29):
Yeah. So I've heard that you've never had a real job. Is that true?
So true. I have been blessed, Jim, at a young age.
God gave me not one, not two, but three billionaires. Let me say that again
slowly. Three billionaires.
And they took me under their wings. And one of them sat me down and said,
(01:49):
let me see if you're worth my time.
He said, what did your mom and dad teach you about money? I said,
well, like most Americans and most people in the world go to school,
get a good education, find a good job. And he had this big old belly laugh.
He says, young man, you're training like 99.9% of the American and people in
the world to work for either wealthy people or some corporation.
(02:11):
You were never trained to get wealthy.
And I was a little disappointed. I said, what do you mean by that?
He says, let me ask you a few questions. I go, yes, sir.
Are your parents wealthy? I go, no, sir. He said, do you work a job? I says, yes, sir.
He says, you want to see your future? future. And I got so excited when he said
that, Jim, I says, yes, I want to see my future.
He says, just look at your parents. I said, you're going down that same road.
Now, if you want to learn differently, like the fiber centers, I'll teach you.
(02:35):
And he gave me my first journal, Jim, and this would change my life.
He says, young man, I'm going to give you two words that'll change your life
if you're coachable, but you got to be coachable.
And I said, what is that, sir? He goes, I'll teach you. He says,
the first word, wealthy people have leverage.
And I wrote the word leverage down. He said, let me explain it to you.
And he explained how leverage worked. He says, how many Starbucks you're here?
(02:57):
One or Ziggins? I go, Ziggins.
What if you got paid on all those coffees? I said, that's a lot of money.
The next word he taught me was called residual income. Some of you do want to
get paid over and over again like a movie star.
And he said, you sound like you're worth my time. And he gave me a ride on his
jet, Jim, before I bought my first Gulfstream. And I tell you what, it changed my life.
(03:18):
Yeah. Um, the wealthy think different than the average American.
We are taught in our society to become educated and get a job.
And then we're told to live the American dream.
And that is to get a mortgage because you need the house and to get credit at
(03:44):
home Depot, because you're going to have to keep the house going,
right? And to get credit at the furniture store.
And I really believe, okay, I really, really believe there's this conspiracy
to keep the economy going.
And the ones that work the hardest, that make the least, that pay the most taxes.
(04:04):
Are the W-2 income earners that work for a company, right, they're employed.
The wealthy, you're talking about billionaires, Many billionaires don't pay
the same taxes that the W-2 income earner works.
People are like, wait a second, how can a guy who makes $5 million a year in
(04:25):
an income not pay the same tax rate I pay and I make $150 a year?
It's because they're not earning
earned income. It might be capital gains or some other ways, right?
So the system is really designed to help the people with the money.
And you're smart to have taken the time to find mentors who do things differently
(04:46):
because you went against the grain.
You weren't doing what you were told to do. You weren't a good minion.
You were supposed to go get an education and get a job, retire at 65 and collect
your social security, but you're smart.
Thank you for that. Well, understand, we were all programmed.
I teach the word, and I totally agree with your philosophy.
(05:08):
We were all, all, A-L-L, we're all programmed because who taught us?
Our mom, our dad, our sister, brother, cousin, sister, pastor,
preacher, deacons, reverends, and rabbis, and everything else.
We're trained that way. You know, since 1905, the Rockefeller Foundation took
out financial education out of the school system deliberately.
We'll let you be a good worker. We'll give you a supervisor job. We'll give you a title.
(05:30):
But we won't teach you how to make money or run a company. If you know this
in school, they never taught us how money works.
So 95% of the people were trained at W. Look at the word W. That stands for
work for money. That's why they're called W-tours.
Now, the other side, you take the W and flip it upside down. It's an M.
The 5% is we, you know, what does that mean? We make money while the other people work for money.
(05:54):
And because we are entrepreneurs, we have more write-off than the average person has.
They can't write off anything because they're not into a business.
So therefore, they're taxed. In other words, they are taxed and they get what's left over on Friday.
And I told people, look at the top of the paycheck. The top says gross.
And mom goes, where's the rest of my money? Your good old uncle Sam gets his
(06:16):
and you get the leftovers. On our side of the track, the people that make money,
we write everything off and we pay taxes.
Keyword, if there's anything left over, because we can write it all off. It's just smart.
And anybody can really do it. Yeah. And you know, it's so true.
Um, and I'm not suggesting anyone do anything illegal.
(06:41):
All right. Cause some people do take advantage of expensing things that they
should not, but one advantage to being a business owner.
And now, you know, this we just talked about it here is that any legitimate
expense that comes into the business is deducted from the top and you don't
(07:01):
have to pay a percentage on the bottom and.
Even the smallest business owners, self-employed people can take advantage of that.
And then people say, wait a second. I heard you got to pay both sides of social security.
Technically you do, but even so, um, that's only a small piece of things.
(07:23):
And of course, when you hit that threshold, you don't have to pay social security
more. And also another thing, cause I was thinking about this recently.
I was on a vacation in Mexico. I do a lot of thinking on the beach,
and I was thinking about lifestyle businesses, which is something you talk about
a lot. You really have a lifestyle business, right?
And when you own a lifestyle business, you can do things that other people can't do.
(07:50):
And so instead of working for the W-2 income, and if you have residual income,
like you said, you have the money coming in. You've got legitimate expenses going out.
You get to keep more of the money.
And it's just a better way of living overall.
(08:13):
Unlike you, I had a job. I had many jobs. I worked in the corporate world.
I felt like I was in prison. I broke out when I was around 36.
And since then, I've been doing my own thing. And it's an interesting perspective
because I've done everything from being employed as a W-2 employee.
I have been an employer where I've employed people, and I have been self-employed or a solopreneur.
(08:38):
And as a solopreneur, you can save money in a retirement account that you can't do as an employee.
You know, 401k, for instance, you can save a lot more money than the government
would allow you if you just work for a large company.
So there are all these advantages and I would never go back.
(09:01):
What what you're free it's hard to go back to slavery you
know i uh you know if you look at it one of
the things is people think because you're an entrepreneur you got to be doing
something slick or under on the table no that's why the smart ones like myself
and jordan we have cpas because they understand the tax ramifications what we
can write up we can't the gray areas and we stay away from them we also have
(09:23):
good tax attorney we have so wealthy people have systems system set up that keeps them wealthy.
Actually, if you look at the tax structure, it's in favor of entrepreneurs,
not the 95% of people, but they don't realize that because they throw that fear in.
So you hear people say, I only got 10 more years to go before I retire.
Well, gosh, is that going to be there in 10 years? Matter of fact,
(09:44):
social security, I call it social insecurity, it may be gone by that time.
So some people, their whole hope is to retire on that social security check,
which by that time, you might be able to get a Big Mac and going to supersize your prize.
So because inflation, it's not that our things are going up in price.
It's just that inflation is eroding
the US dollars and you're paying more because that's what it takes.
(10:06):
So a smart person would... And the thing about network marketing,
you could start it part-time around your schedule, start off with a couple hundred bucks.
That's the beautiful thing. And you can make that into millions of dollars.
I mean, my third year, I was doing over 60,000 a month and 100 grand my fourth year,
160,000 my fifth year, but a couple hundred
dollars the key is are you willing to go to work for yourself
(10:27):
put an hour to a day and get your mindset right
and didn't go to work and work at it every day as if it was your second part-time
job that's how i'd like to describe it yeah um you know the only place go ahead
i'm sorry i was gonna say every day over and over and over again work the model the way it was designed.
(10:50):
And do it every day and it will grow. It's true of almost any business.
I think, Al, it's very difficult for some people to get out of the employee
mindset and to have to self-motivate.
Because if you aren't a self-starter and if you don't have a sales bone in your
(11:10):
body, it's very difficult, isn't it?
Well, you know, people can retrain themselves to do anything.
Look, we were all born with no skills.
We had to learn everything. thing where I'd learn to walk, I'd learn to talk, I'd learn how to learn.
And a person can learn if they want it bad enough. It goes down to how bad do you really want it?
If you notice, most entrepreneurs never graduated from college or high school.
(11:31):
They got out, they thought it was cool for crazy, but they're the ones who turned the world around.
Jim, the only place that success comes before work is in a dictionary.
It's going to take working on oneself.
And Jim Rohn is one One of the idols I have as far as, you know, you work on yourself.
See, a job is there to help you make money while you work on yourself on your
(11:55):
second part-time income.
And it depends how bad you want to succeed.
And that's the beautiful thing of it. Most people are just happy-go-lucky-go,
but they got to want more, sir.
That's what, that's what it's all about, Jim. They got to want more and then
go to work to make it real.
Yeah. Most people aren't willing to do it.
They dream about it. They talk about it. They're like, I've got this idea or
(12:17):
I'd love to tell my boss goodbye and I want to do my own thing.
And I say, why don't you do that? They're like, well, wait a second.
I have a mortgage, two car payments, three kids, a wife and a dog.
Oh, and a swimming pool we're putting in.
I'm like, so get rid of all that. I'll tell you a quick story about my life.
Back when I decided in 2003 to get out of the rat race.
(12:41):
Quick story. Zig Ziglar used to talk to me every day in my car.
And he basically told me without telling me because it was a cassette tape.
He really wasn't there, but it seemed like Zig was sitting next to me.
He said, Jim, you need to do your own thing and quit your job.
I came home one day in my BMW, driving up to my six bedroom home with a pool
(13:02):
and a tennis court in the most affluent neighborhood in Rhode Island.
I'm in my mid thirties, beautiful young wife, a two year old, and she's pregnant.
I walk into the kitchen while she's holding my two-year-old son on her pregnant
bell and I say, I want to quit my job cold turkey to start a business.
Crazy. People would throw up just hearing that.
(13:24):
And I'm telling a hormonal pregnant woman that I'm going to,
you know, the primary income or she's not working, that I'm going to throw out
my perfectly good six-figure income job.
And by the way, back then six figures was a lot.
Throw the job out to start over. You know what she said?
What did she say, Jim? Let's do it. So she's a great partner and that's important
(13:45):
too, I think, to have a great partner who supports you.
Unlike what a lot of people do where they dabble in something and keep their
job. I said, I'm not going to do that. I am burning the ships.
I am quitting cold Turkey. We moved from Rhode Island to Texas where we currently reside.
That was over 20 years ago. And I haven't looked back since.
(14:08):
Were there some rough times?
Absolutely. But I've got control over my life.
Residual income. As soon as I figured that out, I taught my kids that.
The first words out of their mouth was residual income.
Leverage, big word. You use that word as well.
Leverage, residual income, subscription services, all these different things.
(14:32):
So you have leverage when you build a business.
You don't want to sell the same thing every day to earn what you earned yesterday.
You want to sell every day, but have it build, right? And that's how it works in network marketing.
Well, I call it MGM.
Here's the three categories of getting wealthy. M, GM, no, it's not a casino in Vegas.
(14:55):
You either manufacture something. Well, look, I'm not like Apple.
I can't manufacture. I'm not like Google. I can't do that.
I can't be like Sony. Okay, G, grow. I can't grow anything. If I had to grow
it, I'd die. I'm not a farmer.
That's not my cup of tea. The third M is the The second M is market something.
So what we do is market services.
(15:16):
So we're the wholesalers between the major companies and the average person
so we can help save money. So that's an area we all go into, marketing.
There's financial freedom there. See, most people don't realize that...
Now, residual, and here again, I've been taught residual is something we do
once, and I explain to people, I say, think about your favorite music artists.
(15:36):
They cut the song one time, and anytime it's played anywhere in the world,
they get paid. You could be in the same boat.
However, here's the key. Here's my key. If you're coachable,
and I say, if you can put one to three hours part-time in your own business
once you get off work, then we can make this work.
A dear friend of mine, Dr. Miles Merle always said that your work is what they pay you to do.
(15:58):
Your job is what they pay you to do, but your work is what God gave you to do.
And a lot of times we just don't find our work. For me, Jim,
I found mine at an early age and that's why I never had a job because I found
out my gifts and that's what has blessed me.
Yeah. It's interesting you say gifts um skills can be taught some of us actually
(16:20):
are born with certain type of gifts,
um or we're more prone to be able to do something but i've seen all types of
different personalities,
in network marketing some people get up on stage and they literally jump up
and down and get everyone crazy.
(16:40):
And other people just get up there and say, I'm just a regular person.
This is how I made $2 million last year.
And so anyone can do it.
Can you tell me what advice you would give someone who says,
hey, look, Al, I really want to leave my job.
(17:01):
I'm 40 years old.
When I'm older, I want to be able to make money until the day I die.
What do I need to do? How do they need to be deprogrammed and reprogrammed?
Good question, Jim. That's a real good question, actually.
The first thing I ask people, I always tell people, first question, are you coaching?
You are you coaching see a lot of people say
(17:24):
they are but they're not and like i'll give an example the karate kid
he wanted mr miyagi to teach him karate and he
thought he was out there washing his cars waxing cars why because he was thinking
he was going to get taught the traditional way in a classroom when mr miyagi
was doing on the job training and he got in the ring and i don't know if you've
seen but he said mr miyagi you never taught me anything he got in the ring and
(17:46):
And he said, Daniel's on, wax on,
woof, his hand went that way, wax off, woof.
In other words, he taught, he goes, oh my God, I know karate.
See, most of us think we have to learn to the traditional way,
network marketing and owning businesses opposite. It's on the job training.
Yes. And they have to be coachable. The next skill, first of all,
they got to be coachable. And the second thing is I'm here to help you improve your skill.
(18:08):
And the number one skill is listening.
We got, see, listening is such important skill to learn.
And so many times you get around people that really talk when they should be
listening to somebody who's more successful and taking notes.
God gave us three inputs and one output. One of the inputs is our eyes, our ears, and our nose.
(18:29):
And that's how we get things. And we speak through our mouths when most of us
use that more than the other three things we should have.
I just did, matter of fact, it's so random if you're saying this,
here's the front cover of my book.
It's called God's Gifts. And I'm a firm believer. I'm still working. I've got to finish.
I'm a firm believer that each and every human being has three gifts inside of us.
Most of us die with gifts that we never brought through because we were so ashamed,
(18:54):
scared, frightened, like you said, or just shot down by somebody we love that
told us we can't have it. Be quiet, shut up, and sit down.
So actually, this book, I'm giving away free on my channel. I'm going to be
releasing it, I don't know, a couple of months from now when I got this ready.
But it's in my channel. If I can give that out, I'll give it away for free.
(19:15):
I'm more interested in my channel teaching people for free because I have a
calling on my life to teach people and help them.
Because if I don't, I think that's one of my other gifts is being a blessing to people.
You are so correct. Incorrect. You're like me and a lot of other people who
have gotten to a point in our lives where we are willing to spend more time
(19:40):
now to help others live their dream because we don't need to necessarily make more money.
That sounds a bit much, but it's kind of true.
And we have these secrets that really shouldn't be secrets.
And we want to tell people. um i
tell people all the time about residual income
(20:04):
using leverage not having to trade
time for dollars sometimes we do that but you
shouldn't always do that how about at 65 or
67 when you retire besides just
getting that small social security check wouldn't it be nice also to
be earning an income until the day you die al
will i know you will jordan will um
(20:27):
you'll make money after you die won't do you any good but it'll do other people
good and that's just not something people understand so to be able to educate
them i think it's important for me i'm on a big health kick and the more you
get into something the more you understand proper sleep and nutrition,
(20:48):
and exercise, the more you see other people not doing it and you want to shake them, right?
And you're like, yeah, eat better, sleep more, uh, have less stress,
uh, use leverage, you know, whatever that is.
So it's, it's kind of challenging for us.
Isn't it now where we, we know the path, but we see people all over the place.
(21:08):
We just want to like slap them into place.
Yeah, we have sick days. We have dead days in residual income.
There's an old saying, though, you can only help people, Jim,
who want help and above all else want to help themselves.
Can you and I truly help them? And I've been asked for years to do this.
I'm an old guy. Nah, nah, nah, nah, channel.
Nah, nah, nah, nah, nah. And all of a sudden I said, okay. And all of a sudden
(21:29):
it's blowing up because I've got 30 pounds. I know you've been at this longer than I have.
I got 35 years under my belt and I appreciate you. You've got more years under
your belt. and I decided, okay, guys, I'm going to do this and I'm going to
do it for free because I want to help people.
And my channel is Al Thomas Official.
And I do, and all my stuff on there is like five or six minutes long.
It's a little stuff, real easy stuff, but it's giving people's mindset to change here first.
(21:53):
Before you can do anything, they got to, they have to accept where they're at
and if they really wanted to roll their sleeves up and go to work.
And what I mean by that, if a person is willing to put an hour to two hours
a day after they get off their job, they can do this if they stick with it.
Look, I'm nobody special. My dad was a sergeant in the army and I just decided, made a decision.
(22:14):
I didn't want that lifestyle. I wanted more. And I made a decision.
You yourself, Jim, you made a decision that day. You just told your story and
went inside and took it before you talked to your wife and she went with you
and you're like, yeah, baby.
And another good thing you said, which is very valuable, but you said, Jim, is having a good.
Spouse, a good partner to, because a lot of times people, one is excited and
(22:36):
the other one's not so excited, but that's probably helped you a lot along the
way as well, having a good helpmate.
It's critical. If you have a partner, a spouse who isn't in your court,
it's difficult enough with that person on your side.
You don't need someone to say, oh no, you're not quitting your job.
(22:58):
You've got a responsibility to take care of me and the kids.
She's doing that or he's doing that out of fear.
When I decided to quit my job in my mid thirties with a two-year-old and a pregnant
wife, which when I look back seems crazy, but I'd do it again if I was in my thirties.
(23:19):
I don't know if I'd do it again today, but anyway, when I told people I was doing that.
They took me aside and said, are you crazy? You can't do that.
It's so dangerous out there. You need the security of a job.
And I'm thinking, really?
Companies aren't loyal. I saw my father at 50 lose his career and have to start over again.
(23:43):
And that's pretty typical in the corporate world. Yeah, very much.
I find it very, very interesting how people and even financial institutions
think it's less risky to have a job. I'll tell you a quick story.
Shortly after I started my first business, I wanted some capital.
(24:03):
I'm in a service business, so I don't have any collateral.
Go to the bank. The bank says, Mr. Clowk, you've got great credit personally,
but we can't give you a loan because we don't have to attach it to.
And you don't have a job.
I'm like, yeah, but I'm building my job. They're like, no, it doesn't work that way.
(24:25):
Here's the interesting thing. So here I am young entrepreneur.
I have people working for me. Those people are getting a W-2 income check from my company.
They have a better chance of going into that same bank to get a loan that I
was denied for, but their income depends upon me.
(24:46):
That's right. Is that nuts?
I know. I actually, I'm on a bank board here in Vegas, the bank.
And the only reason I'm on the bank board is because I have enough coming in
that they wanted me on the bank board. Otherwise it's all about dollars and
cents, but that's so true.
You know, you said something about security. The only security that most people
have, they don't realize it's when your left ear and the right ear is called a brain.
(25:09):
And most people use it for a hat rack. I'm going to tell you a quick story.
I love the stories you tell.
About a guy who had a wife and she was a non-believer in the business of network
marketing. I'll tell you a quick story.
He came home and got started, told his wife, he sat down at dinner,
honey, I just got started. When I started making my first big money,
I'm going to buy you a Jaguar.
And every night he came in, he came and gave her a kiss and they went to bed.
(25:33):
And he got up the next morning, put a picture in the bathroom,
a picture of a Jaguar and he would shave and buy buy my wife a Jaguar.
So, and as soon as he walked out the door, Jim, she would take it down and the
next day he'd come home and, you know, in the evening, kiss her, had dinner, went to bed.
He got up next morning, put the picture back up. I'm going to buy my wife a Jaguar.
(25:53):
So this went on for about 60 days. And guess what? On the 61st day,
he drives up to the house, he toots the horn, she looks out and guess what he was driving, Jim?
A Jaguar. And she had no facial expression.
She was like, he came in and gave her a kiss. They sat down,
had dinner. She didn't say a word. They went to bed that night. She didn't say a word.
(26:16):
Jim, the next morning, he went into the bathroom and flipped the light switch
on. It was a picture of a fur coat.
In other words, he made a believer out of her because he had to keep on going
despite her not seeing the vision that he had for her and his family.
So that's a big thing. You got to have a vision. Yeah. Stick with it.
(26:38):
And that's a great story because it's hard enough.
Like I said earlier, Al is hard enough when you have a partner on your side,
but to, to really drag them along until they see the light.
Yeah. Yeah, it's it's challenging in in entrepreneurship, in small business.
There are a lot of divorces because of stress and money and money is one of
(27:03):
the biggest causes of divorces.
And if you aren't aligned with your life partner, you're going to have trouble.
And I'll tell you, I've actually argued with people who said,
Jim, I want to do what you're saying I should do, because I believe I should be an entrepreneur.
I should have a business, but my wife won't let me. So I'm going to give up my dream.
(27:25):
And I say, you know, that's a very difficult position to be in because you're
going to resent her at some point, if not now at some point,
and it's going to cause trouble in your marriage. And really they're, they're.
You know, they're stuck either way. Right? Because they don't have the support
today, but they're going to resent their spouse tomorrow.
(27:46):
One of the key things in a situation like that, I teach people is sit down with
your wife or spouse, husband or wife, whoever.
Hey, look, honey, let's hit some milestones here. We get X amount of dollars come in or whatever.
We're going to go out for a lover's weekend or something. You got to have these along the way.
You know, I just took my wife out to Paris and I couldn't wait for her 50th
(28:07):
birthday. I could not wait. That's five years away.
I want to do it now. I'm younger. My health is, you know, why wait?
And a lot of times we don't give them a vision of where the milestone is along
the way. We're going to hit this milestone.
We're going to get that Jaguar for you. We're going to hit this milestone.
We're going to go to Europe. We'll get this milestone. We're going to do a cruise.
I mean, we have to give them something to look forward to.
(28:28):
And then that gives us something to go to work on to provide for our families
because that's our motivation.
Yeah, no, I totally agree You gotta have those little incentives along the way
To get to the bigger picture,
Absolutely And I see a lot of people don't do that Or the other half doesn't
know the goal Or where the goal post is Or things we can do along the way As
(28:52):
we start becoming successful.
Yeah, absolutely Very important to do Al, we could talk all day I really appreciate
your time This has been awesome I want to thank Jordan Adler for connecting
us here on his podcast, the Beach Money Podcast.
Feel free to ring me up sometime. We'll do it again. Okay, buddy?
All right, my friend. Thank you. All right. Thank you. And like I said,
(29:15):
if they want to, they go to the channel and watch a couple of videos. They're all free.
Yes, we will have that link in the show notes.
Al, once again, thank you so much for joining me. Jim, thank you.
It was a pleasure. Take care. Have a good day. Bye-bye.