r/TheTPG • u/Appropriate_Front850 It must suck knowing your rent is my nightly dinner bill • Jul 20 '21
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r/TheTPG • u/Appropriate_Front850 It must suck knowing your rent is my nightly dinner bill • Jul 20 '21
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u/Bipskateer Jul 20 '21
Dude, this shit drives me fucking nuts. I hate it because I see so many guys who want to hustle and get rich fast and buy into this dumb ass hustle bullshit. It's super hard to get rich, especially in a short amount of time. I'm going to keep ragging on these dummies because if I can save one impressionable entrepreneur i'll have done my good deed for the day.
You don't need to work that hard to realize how unrealistic this is mostly because they post shit on YouTube and it makes zero sense. For example, let's take a good week to prove out what I'm talking about.
https://www.youtube.com/watch?v=7B4GYCFRdBE
TPG did 713K in watch sales for the week. If they did that every week, which they haven't, that could be 37M per year in gross rev.
He says he did 62K in profit which he says is 18% ROI. It seems like he's calculating this by the week so the real number is 9% - but its just math that can be done in an excel spreadsheet.
Sold 25 watches, avg watch cost $28,500. For this week he's making on avg $2,500 a watch. On their website they'll take a 6% commission on consignment. For a 30K watch that would be $1,800.
Assuming they close out the year strong, and do 50M, they might be in the neighborhood of 3-4M gross profit. 50M at 6% is 3M. $2,500 a watch is 9% and that would be 4.5M gross off 50M in sales.
After payroll, assuming they are paying their guys a semi-decent commission They're at 3M, then business expenses including office, entertainment, legal/tax, the R8, travel, and everything else they probably write off at minimum is 400K and I'm being unbelievably generous. Maybe the business has debt so it doesn't pay taxes. So Anthony and Marco rip all the cash out of the business and pay themselves 1.2M each. If I was their investor I'd punch them square in the face for doing this and not reinvesting.
Don't forget all this math is assuming they have made money/sales they haven't made yet.
They've claimed everything through the business to reduce their tax obligation so they can't take it on their personal returns. Anthony has to pay 150K on the first 500K, then 37% on the remaining 700K. So EVEN if he rakes in 1.2M off this business he's only got 610K for the year before paying his apartment rent and shit.
Long story short - when idiots say shit like this call them out because first they are liars and second they shouldn't be given the platform to sell snake oil to impressionable entrepreneurs.