HOW TO BUILD A MILLION DOLLAR BUSINESS PART 1– REAL SOCIAL DYNAMICS
In today’s episode I am going to break down a particular business video that inspired me to build StartupStrong.
For me, this video by RSD (Real Social Dynamics) co-founder and CEO Nick Kho (Also known as RSD Papa) was a crucial inspiration to hustle.
The video goes at a fast pace and hence you will not be able to extract too much knowledge out of it by just watching it, so this article will be very handy for you.
I am going to break down the video into three highly-detailed articles, starting with this one. Check out the other parts below:
You will learn the work ethic required to build a million dollar business, strategies that RSD used to get a massive cult-type following and how they overcame the recession and actually got stronger because of it.
So without further ado, let’s jump right into it.
Table of Contents
- HOW TO BUILD A MILLION DOLLAR BUSINESS PART 1– REAL SOCIAL DYNAMICS
- IN-DEPTH KNOWLEDGE
- 1 WHO IS REAL SOCIAL DYNAMICS ?
- 2 WHAT WILL I LEARN FROM THIS ARTICLE ?
- 3 WHO IS NICK KHO AND TELL ME HIS STORY 🙂
- 3.1 SECTION 1 – EARLY LIFE
- 3.2 SECTION 2 – BEGINNING OF RSD
- 3.3 SECTION 3 – HOW RECESSION TRIED TO KILL RSD BUT INSTEAD MADE IT STRONGER
- WHAT NEXT ?
I am super excited to share this article with you guys because I am not aware of any other free or paid source that explains how a million dollar business was built from scratch.
The knowledge and actionable tactics that are given to us by Real Social Dynamics co-founder Nick Kho in this video is extremely powerful and you will soon know why 🙂
I am going to write this article in a question and answer format.
1 WHO IS REAL SOCIAL DYNAMICS ?
RSD (Real Social Dynamics) is the world’s largest dating coaching company. They conduct live seminars around the world since 2002 and are established in 270 cities across 70 countries. They conduct over 1000 seminars a year and over a 1000 people are working for RSD around the world. It is the 860th fastest growing company in the world (at the time video was created).
RSDs main product is that they give bootcamps where an Instructor will teach students how to socialize with girls in bars and clubs. These instructors are highly skilled in getting girls interested in guys. These bootcamps are extremely focused with a maximum instructor to student ratio of 1:3
They also sell books, DVDs, memberships .etc.
2 WHAT WILL I LEARN FROM THIS ARTICLE ?
RSD is a legendary business in its niche. If you apply the knowledge used in this video in your business you will get legendary results. Remember that RSD was formed in 2002 and the internet had changed since then, but 95% information that you will learn through this article are applicable even today.
We will cover publishing, internet marketing, sales, hiring, work ethics, hustle and several other elements of business development that will help you to start and build a business on your passion. Just like how going out to bars and clubs was one of the passions of RSD co-founder Nick Kho.
Interestingly the business was mostly built through Word of Mouth. They spend less than $50 a month on advertising and that too for re-targeting ads. The business was also built without any startup capital. Which makes this business truly unique and worth studying deeply.
3 WHO IS NICK KHO AND TELL ME HIS STORY 🙂
The person who is giving the presentation in the video is Nick Kho also known as RSD Papa. A few of you might know him from the book “The Game” by Neil Strauss. He is the person who approached Paris Hilton and got her number. He is the mastermind behind the business administration of RSD.
I will write the story of Nick Kho and RSD in 3 SECTIONS
3.1 SECTION 1 – EARLY LIFE
Nick Kho was born in an Asian background, his father was from the Philippines.
He used to go to bars and clubs since he was 12 years old. And he threw a lot of parties from the time he went to boarding school. And he threw more elaborate parties in college, some of which were so crazy that it had celebrities and came in national magazines. But these girls were interested in going for his parties but were not interested in dating him.
In summer time Nick used to go for internships. He was working in finance at Wall Street, did computer programming .etc. His father thought he will be an investment banker.
But Nick was not interested to be an investment banker. One day one of his friends saw a website which explained how to pick up girls using some tactics and Nick got so intrigued by it that he decided to do that instead. He stopped going to class and only went for tests and started travelling the world to meet people who picks up girls.
He said to his parents once he was about to graduate that he will take guys out to bars and clubs and pickup girls with them as a wing-man and tell them exactly what to say and what to do and then at the end of the day he will have a debrief session where he will tell them what they did right and wrong. Parents thought that’s the funniest thing that he ever said.
3.2 SECTION 2 – BEGINNING OF RSD
He started developing his pickup skills and started writing articles the internet. Thousands of people were reading those articles at the time.
He spent so much money at that time that he ended up with $60,000 credit card debt. He had no job and no way to get out of that necessarily.
But one day a person who read his articles invited him to come and see him in San Diego, he paid for the flight tickets. Nick went with his friend Owen (Also known as RSD Tyler and is the second RSD cofounder) to San Diego for his first pickup coaching experiment. The coaching was successful and his student was able to get some results. This guy posted his results online which got other potential clients interested.
Soon he setup a meeting for everyone in Starbucks, NY to share some of the things they did. 40 people showed up and he organized a seminar right there in Starbucks. After the seminar he invited them for a bootcamp for $600 each. Out of 40, 18 people showed up.
Next week he did the same thing in San Francisco and another 18 people showed up for $600. He did the same thing next weekend in San Diego, next weekend in LA, next weekend in Miami, next weekend in London and the sales started ramping up.
Remember that if you figure out one customer on-boarding process you should use the same process repeatedly to close more sales! And that is exactly what RSD did.
4 months later he rented a 6 million dollar mansion in Hollywood hills with several other people and named it Project Hollywood. His parents got extremely furious and said they will disown him and cut him out and that they won’t pay cost or tuition. Everything went downhill from there at that time although now his parents are super supportive of his business.
RSD also developed an amazing fanbase by then just because they offered so much content. For first few months after releasing the website RSDNation he spent maybe 4-8 hours a day for a few months just posting on it.
He decided to make Project Hollywood into a training facility and office for his business. He got students trained in this mansion for $1500 to $2000 every single weekend.
After a few years of teaching this program he decided to hire instructors, stop teaching and focus just on the business administration. He also organized huge parties. At the same time he got 2 MBA’s and started focusing more on education.
3.3 SECTION 3 – HOW RECESSION TRIED TO KILL RSD BUT INSTEAD MADE IT STRONGER
But then the recession hit and his revenues got demolished temporarily.
He ended up living behind his 1997 Toyota Avalon and had over half a million dollar of credit card debt along with going $6000 a day negative in cash flow.
How Nick Kho managed to get out of that difficult situation and actually increased the profitability of RSD during that period will be explained clearly as we progress through this article series.
No, the process was not romantic. It was true hustle.
I know we ran through the story of Nick Kho and RSD quite quickly in the article so far, but we will get into some extreme details as we go forward.
WHAT NEXT ?
The next two parts of this article will be extremely actionable.
Part 2 of this article will cover the entire tactics and knowledge that helped RSD achieve the feat explained in SECTION 2 above.
Part 3 of this article will cover the tactics and knowledge that helped RSD come out stronger after it was nearly killed during the 2008 recession as mentioned in SECTION 3.
So check them out 🙂
And do let me know your thoughts on this article in the comments below.