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Patrick McGinnis. He\u2019s the author of The 10% Entrepreneur which focuses on living your startup dream without leaving your day job, which was just published by Penguin Portfolio. He\u2019s also credited for coining up with the term \u201cfear of missing out\u201d. He\u2019s a graduate of Harvard business school and is living in New York City.

Famous Five:

• Favorite Book? \u2013 The Lean Startup
• What CEO do you follow? \u2013\xa0 Sheryl Sandberg
• Favorite online tool? \u2014 Quip
• Do you get 8 hours of sleep?\u2014 6-12
• If you could let your 20-year old self, know one thing, what would it be? \u2013 Patrick wished he had more confidence in his abilities and more open to trying new things

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Time Stamped Show Notes:

• 01:30 \u2013 Nathan introduces Patrick to the show
• 02:10 \u2013 Patrick is a Wall Street refugee
• 02:21 \u2013 Patrick has his own advisory firm
• • 02:29 \u2013 Patrick built up his portfolio of over 20 investments
• 03:04 \u2013 Patrick worked with his friend in Real Influence for free
• • 03:14 \u2013 They sold $300K-$400K
  • 03:19 \u2013 The business didn\u2019t push through and Patrick sold his shares
  • 03:35 \u2013 Patrick was 33
• 03:46 \u2013 After a year, Patrick\u2019s friend asked him if he was interested in investing in a startup
• • 03:51 \u2013 Ipsy has raised $100M
  • 04:08 \u2013 Patrick is one of the first investors of Ipsy
  • 04:32 \u2013 Ipsy\u2019s co-founder is Michelle Phan
  • 04:49 \u2013 Patrick\u2019s friend who is the CEO of Ipsy met Michelle through Funny or Die
  • 05:46 \u2013 Michelle\u2019s huge fan base made Ipsy spend zero on CAC
• 06:00 \u2013 How Patrick decided to invest in Ipsy
• • 06:03 \u2013 Patrick\u2019s friend was already raising a round
  • 06:33 \u2013 Patrick\u2019s friend already had a lead
• 06:38 \u2013 Patrick started his venture capitalist path in 2000
• • 06:48 \u2013 Most of the deals Patrick looks at are simple deals
  • 06:53 \u2013 Patrick invested in Ipsy in 2012
• 07:50 \u2013 Ipsy is one of Patrick\u2019s most successful investments
• • 08:00 \u2013 Another one of his investments was Bluesmart
  • 08:24 \u2013 He also invested in Affinity which is a big data company
• 09:04 \u2013 How many deals do you have to make to ensure there\u2019s a big exit in the portfolio?
• • 09:12 \u2013 When Patrick started investing, he thought of the possible mistakes he could make as an investor
  • 10:03 \u2013 As an investor, you have to invest in your area of expertise
  • 10:08 \u2013 Second, think of the deal as a commercial deal, even with friends
  • 10:21 \u2013 Third, don\u2019t follow other people
  • 10:39 \u2013 Stay away from \u201cwill-to-be\u201d syndrome
• 11:09 \u2013 Patrick was working with AIG\u2019s private equity fund
• 11:41 \u2013 Patrick shares why he wrote a book
• • 11:48 \u2013 Patrick always talks to people about what he does as an investor
  • 12:12 \u2013 As Patrick met with more and more people, he realized that he could actually help people believe in what he does
  • 12:25 \u2013 \u201cIt\u2019s been a blast actually and I love writing, anyway\u201d
• 12:56 \u2013 Patrick shares why he decided to have a publisher rather than self-publish his book
• • 13:02 \u2013 Patrick wasn\u2019t a well-known media figure and a publisher would help his credibility
  • 13:12 \u2013 Patrick got a great editor
  • 13:24 \u2013 Patrick wanted to go global
• 13:34 \u2013 Patrick has sold an average of 50K copies
• • 13:40 \u2013 A book update is given every 6 months
  • 14:00 \u2013 Patrick gets around 10% royalties on sales
  • 14:26 \u2013 Patrick\u2019s book is a bestseller in South Korea
• 14:48 \u2013 Patrick had an advance of around $100K prior to his book launch
• • 14:58 \u2013 Patrick has an agent who is with UTA
  • 15:38 \u2013 Patrick met his agent through his friend
• 16:02 \u2013 If you are generous to the world, it comes back to you in so many different ways
• 16:25 \u2013 \u201cIf you want to publish a book, you should know how hard it is\u201d
• • 16:40 \u2013 Publishing a book is like running a startup
  • 16:54 \u2013 Patrick shared on a couple of podcasts which boosted his sales
  • 17:03 \u2013 Patrick\u2019s book is in physical bookstores, too
  • 17:20 \u2013 Patrick was also live in CNN Espanol in South America
  • 17:37 \u2013 Amazon\u2019s ranking is always updated
  • 17:44 \u2013 Patrick also has a group who does social media for him
  • 18:22 \u2013 Launching a book is a process
• 18:56 \u2013 Patrick has a day job that covers the bills
• 19:12 \u2013 \u201cFreelancing is great in terms of flexibility, but you build zero wealth\u201d
• 19:48 \u2013 Patrick also invests in commercial real estate
• • 20:04 \u2013 Patrick shares how he and his friend get dividends from real estate
• 23:25 \u2013 The Famous Five

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3 Key Points:

• Investing in your friend\u2019s business is a commercial deal, so invest wisely.
• Be prepared\u2014publishing a book is not a walk in the park and involves several processes.
• Freelancing is great in terms of flexibility, but you build zero wealth.

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Resources Mentioned:

• The Top Inbox\xa0 \u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Organifi \u2013 The juice was Nathan\u2019s life saver during his trip in Southeast Asia
• Klipfolio \u2013 Track your business performance across all departments for FREE
• Acuity Scheduling \u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\xa0\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\xa0\u2013 Nathan uses Audible when he\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
• Freshbooks \u2013 Nathan doesn\u2019t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
• Show Notes provided by Mallard Creatives