hey what's going on it's Doug Huntington
here and welcome to the Doug show in
this episode I talked to Brian Brewer of
human proof designs brian is a very
interesting guy for a few reasons so
number one he bought human proof designs
which is cool all on its own right so if
you're not aware Tom Wells friend of
mine he sold human proof designs he
created and he's the founder of human
proof Brian's a new you know sheriff in
town here the cool thing one of the many
cool things is Brian and I have a very
similar background in like consulting
and just IT and the whole corporate
world that we escaped in very different
ways so this discussion was pretty
awesome
we talked about like Brian's history in
IT we talked about how he figured out
that you like maybe wanted to buy an
online business like human proof designs
and kind of new things that are coming
up for HPD so it's a great discussion
I'm gonna probably have Brian on and
other folks from the crew at HPD on a
few more times
great great folks over there and they do
good work if you're unfamiliar you
should check out the site in general
there's a lot of good information they
have a podcast and they have a bunch of
services and stuff so we talk about
those sort of things and I'm gonna pause
for a second because I want to let you
know if you're new to the channel you
should have a look at some of the other
videos if you like what you see please
do subscribe without further adieu we're
gonna get to the interview with Brian
brewer of human proof designs hey what's
going on it's Doug Pennington here and
I'm with Brian Brewer of human proof
designs how are you today Brian I'm
doing great and you and I met probably
like a month or so ago and it was a
little unexpected I was you know pinging
designs and then I found out there was
this guy Brian doing some stuff and I
didn't know yeah so can you just give a
little intro on what you're doing a
human proof and just a high level of
your background a little bit yeah sure
so so yes I started with human proof
Nine's back in April this year so I am
the new owner of human print designs I
started talking with Dom whales that
many of your viewers I'm sure know or
I've heard of back last year and became
very interested in the business so I
said took that on a big project kind of
started an april's have been there right
at three months now so a little bit
about me so I live outside of Dallas
Texas and I have four kids so stay
pretty busy with them but four kids and
wife and then we spend a lot of time
here in Dallas soon and all kinds of
activities with the kids there in swim
team right now and then we spend most of
our summers up at Lake Texoma which is
right around the Oklahoma border we have
a lake house up there so we tend to stay
up there in the summers and then back
down in Dallas for the winners and let's
say a couple of things about me I went
to school at LSU and graduated from
there and then went and got my master's
degree at the University of Texas and
have been involved in kind of technology
field consulting development online
marketing for about 20 years now very
cool very cool and I I worked in Dallas
for maybe like six months on a project
back when I was consulting as well great
town really good barbecue of course
under the state to be honest with you
but yeah yeah I really like Dallas it
was similar in a lot of ways to Atlanta
just you know better barbecue I would
say well it's a busy down here and the
spring winter time so you come down here
and summer you're gonna bake quite a bit
yeah funny thing well two funny things I
talk about the weather all the time
people make me aware of that but I was
there in like the summer of 2006 which
you may not remember
it's been 13 years ago but it was very
warned that summer and it didn't rain
much and I know you guys have you know
it's like droughts or flooding kind of
yeah thing going on like up and down so
I was there during a very hot hot summer
and I was like as it rained in like the
whole time I've been here it's crazy so
anyway I found it very interesting that
you and I have a pretty similar
background so you you were doing like IT
kind of stuff and some consulting can
you talk a little bit about that
obviously some of its confidential and
you know that's how it works but can you
give us like a background like how your
trajectory took you to where you are now
yeah sure so when I graduated college I
started out just as a developer writing
applications and several different
technologies
back then we were writing in something
called cold fusion for a while and
originally jobs that I started with was
up in Virginia and you may have heard
like autotrader.com and truck trader
comm RV trader comm ATV trader comm all
of those so they had magazines out there
at the 711s everywhere but they needed
an online presence and that's really
when the internet you know 20 years ago
I was really everybody's getting
websites and starting to do online
commerce so so we built those sites from
the ground up and got those up and
running which was really exciting back
then it was a little scary because we
would have different parts of the year
when those sites would get lots of
traffic and they would be six o'clock in
the evening and the sites would just
crash because of the load and so we were
frantic we would work and work and work
trying to figure out how do we reduce
the loads on that database how do we
cache pages all these techniques that we
then really figured out very well back
then but that's how I got started really
was kind of developing software and
developing online applications for
companies mostly
hands-on programming back then and then
I kind of moved into project management
I know you have your PMP I kind of
started running and managing software
development teams and helping companies
you know build out big projects like
back on my PMP certification and did
that for quite a number of years which I
love doing is that a lot of the
challenge but I decided I was I had
gotten into consulting at that time
working for Accenture and several of the
big consulting firms here in the United
States and decided you know what the
bill rate they billed me out I know I
make a little sliver of that I could go
off and do that on my own and so that's
what I did I started up my own company
called project consults this was about
twelve years ago that I did that and
it's really interesting because my work
now with human print designs a lot of
where we see success is when people
focus on really specific niches that
they can target and gained a lot of
traction with and that's a very similar
approach that I took when I started that
project consults because I could have
tried to go out there and be an
Accenture and like focus on any kind of
general consulting business IT
consulting you want but what I did was I
had a lot of expertise in a tool called
TFS team foundation server which is a
Microsoft application lifecycle
management tool and so I put Google
AdWords out there running for a unique
TFS consulting because there's not very
many people that do it at all as well as
ColdFusion so by the end eight nine
years later ColdFusion had kind of died
out like people were it didn't get
adopted as much but there was a lot of
companies who jumped on it when it was
popular and now they couldn't find
anybody to do it and so that was a niche
as well so I put Google AdWords out
there
and I started getting calls and I start
getting emails on my contact form on my
website where people are like I can't
find anybody is this something you do
you know I saw your clicked on your ad
on Google and sorry and you know with
with that the consulting gigs like that
I mean I was talking about you know
might go and work for somebody for a
month and that might be a ten thousand
dollar project and I just spent $100
that month on Google AdWords so the
return was huge on that and I got I got
way more work than I could handle
just by targeting real carefully a
couple of technologies that I knew well
and and really got my start on my own
twelve years ago doing that wow that's
pretty cool yeah I was wondering about
that because I know a lot of other
people that are either that are
consultants and worked at one of the big
five or whatever like hover men are
there are now and it's like we know like
we're being billed out at like some
crazy amount but and we imagine hey we
can do that but I I'm like I couldn't
connect the dots to like start my own
consulting company and then I have I
mean honestly I didn't have a strong
enough network or reputation to do it
but I have some friends that maybe
they've been working at Accenture or
some other company for like a decade or
more and I'm like you toad like they
could totally go somewhere else they
have enough people that they know and
they can like get like one-on-one gigs
cut all the fat all the waste the big
companies so were there any like
portions or any times where you were
like oh I'm not sure if this is gonna
work or was it pretty quick with AdWords
model there well it's a funny story
because the the kind of the week that I
decided that I was gonna start up my
company and I was gonna leave is I got a
called just through a contact I got a
call from a colleague who said hey
there's somebody need some TFS work I
don't know if you're available I was
like well actually I was thinking about
quitting my job and so yeah maybe I
could do that as an independent you know
freelancer and so they offered me this
position to help them up in Indianapolis
or for like six months you know doing
TFS work I thought that was great this
would get me on my start of starting my
own company I could get my goood bad
words out there and do all that well I I
put in my notice and quit my job and
then like a day later the guy who gave
me that gift he called and said we
changed our mind so now I had no job and
nothing lined up so I really doubted my
decision to go out on my own at that
moment it was pretty frantic moment
there and so I said you know what I'll
just live with it I can I can find
something you know over the next couple
of months and and I'll make it but
luckily they didn't call me back with
like another day later and said hello
actually we do want you to come and so
that's what started started my my
independent career basically was was
that but it was a it was scary it was
you know jumping out on your own and
it's you know you never know what's
gonna happen and you're kind of afraid
if business is gonna come and so you
don't do it but I'm glad I did it
because it's the best thing I ever did
you know I have you know just it's
financially like what I was making as a
consultant and what I can do today
especially once I started to get more
business and I was able to hire some
contractors to help me on projects and
then I'm making the bill rate that
Accenture was making on those guys and
I'm doing nothing then it really started
to snowball and really started to get
great for me so so really you know I'm
glad I did it I have a twin brother and
he he's been working at a company for
many many years and he just left his
company about three months ago and
started on his own and he is doing
custom woodwork furniture he's like
builds you know these
innocent pieces of wood work and for
hotels and individuals residents all
over Dallas and he has got more work
than he can handle
and he was so nervous he been for ten
years singing me on my own was so
nervous about doing that he did it and
three months in he's got more work than
he can even handle so Wow and he's
probably making it all by hands like
there's no mass production right in this
situation oh yeah and it's all handmade
he's got a big workshop and yeah it does
all that that he basically custom very
highly custom wood furniture interesting
it's very interesting and do you
remember like how it felt I know it's
going back 12 years but like when you
realize like this is working and it's so
much better than what I was doing before
how did that feel oh yeah it's you know
you just number one you get to choose
what you're gonna do right so you don't
like a project or you don't want to do
that type of work and then you don't
have to you know and so it gives you a
lot of freedom and that's that's one
thing that I really liked just from the
very start is I got to kind of choose
what I was gonna do one thing that I
always liked doing was doing training
and helping people learn and so so I
kind of built kind of that niche around
training and and so what I did there was
I start advertising classes you know and
course it takes a lot of time to write
curriculum and build what you know how
long it takes to write good curriculum
in classes and so I decided to partner
with a training company several training
companies actually that had curriculum
and I said I'll go teach it and I'll
I'll sell it
I'm just need the curriculum and that's
what I did for a while and then I kind
of got smart and I realized that I can
go teach the classes and do all this
work but I can also I worked out a deal
with them kind of an affiliate model
mission model where I said I can go out
there and I can sell the classes which
I'm doing anyway but I'll have somebody
else teach it are all that my training
partner find an instructor for it I'll
just sell it and so then I got online
and started doing a lot of email
marketing so I would find like
conferences that have happened in Dallas
or in Philadelphia or just wherever
around the country of people like in the
industry like an industry-related
conference and I would go grab like
their speaker list and their attendee
list and everything I could get all
these emails and all that that industry
and then I'd start emailing these folks
and advertising my classes and before
you know it I would get ten people in a
class you have to keep in mind IT
classes tend to be expensive so these
would be like you know $1,800 classes
and I would make a 40% Commission for
every student I sold into those so I'd
sell 10 people 15 people into a class
and and really I would build up a list
of say in the Dallas Market 20 thousand
emails and I'd blast that out and I only
needed like 1/10 of 1% of 20,000 people
to get 10 or 15 people as all I needed
to into a class and I would make a good
fifteen thousand dollars in a week
and I didn't even have to teach the
class I just sat at home and did it and
and so I did that you know I did my
consulting for quite a number of years
and then I kind of got into the training
world and started doing that and was
selling basically selling classes and
then I found that what I did in Dallas
how many more markets are there like
that where I could do that all across
the country so I I just basically
replicated what I was doing in Dallas
and got a you know an Austin email list
going and a Houston email list go and
ana denver email list going and then I
would start selling classes that were
offered in those markets and I would
build out a like a I have a training
website and then I would build out a
like a local sub domain you know Denver
dot project consults comm Houston so
forth and I offer the classes there have
to sign up I'd market the email a little
bit of AdWords but it's real competitive
you know it's really tricky like doing
consulting and I could do AdWords and
make money out of it and those are big
ticket things you know but then when I
got into training it was a lot more
competitive and and so I couldn't
couldn't make us couldn't really make a
lot of profit there so the email
marketing was a really key thing that I
was able to do there and then replicate
that around the country into all the
different markets and be able to sell
those classes so so lots of different
ways you know I kind of was able to kind
of own what I did and what I decided to
do interesting and sounds like similar
to me you you didn't really have much of
a marketing or business background from
your university years is that accurate
yeah I have a finance degree and then an
MBA so I have kind of the business side
technology and development program you
think about computer science but no I
was I always did programming and
technology work but I really had a
business background okay okay so you got
you got a big leg up okay got it now
that said did you when did you get your
MBA and the finance specialization and
stuff was at all but actually I'll just
leave it open-ended when did that happen
yeah so I graduated
originally from Ella's shoe in 1999 and
then and then I I spent a couple of
years out there working started doing
consulting for a local consulting firm
and then went and got my MBA so it you
know probably about five years six years
after
my bachelor's I got into getting then
that took several years to do but I
think it's good to have a couple of
years of experience out there in the
field out there in the industry you know
so then I went back and got the NBA but
that was way before I started my own
company and working on my own ok cool
and that is 100% my observation too
because I remember when I graduated and
got a job there were a handful of like
wow yeah people that got MBAs and they
were right out of undergrad got their
MBA and then they showed up with us and
basically they were the same as everyone
else right they had no additional
experience they were just like they took
some more classes and paid whatever 150
thousand more dollars or something like
that so yeah interesting so ok and then
when you got your MBA were you thinking
alright this is just what people do like
after you do some consulting a lot of
other people or doing that or did you
were you thinking entrepreneurship in
the long run we ought oh I don't know if
I was thinking about it then I felt
probably like a lot of folks do that an
MBA is kind of your ticket to higher pay
especially in consulting because when
you're on the bench and a company you
know your consulting firm wants to
present you to a potential client
it's great to have titles and
certifications and degrees behind your
name and so so that's probably one of
the big drivers at least in the
consulting industry is one of the
reasons I went back and got my MBA and
in the University of Texas is great but
they do have kind of a specialty degrees
in like entrepreneurship which if I had
to do it over again that would have been
more practical probably save me a lot of
headache over the years and things that
I learned on my own but I didn't think
about it then but it certainly I think
those entrepreneur related
business degrees or NBA's have a lot of
value sure for sure now shifting gears a
little bit I'm interested why you were
transitioning to two different business
models as you go and you're continuing
to do that I have some theories you know
like why I would do it but I'm curious
because it sounded like you had a pretty
successful consulting gig and then your
own consulting gig and then successful
training and now you have you know human
proof design so right it's going on yes
so it's a good question I think it's a
mixture of a couple of things one is you
know consulting is great for a lot of
people it's challenging in every few
months you get to go work on a new
project so you're not kind of stuck
working on the same thing over and over
so I've always thrived on having new
challenges and so consulting was great
for me I did never really like kind of
the politics that go on inside of
company said as a consultant you didn't
get involved in politics you were jarred
there to do a job and and so you didn't
have to worry about that but you also
only get paid when you're working you
know it's an hourly type thing and so if
you're not cannot working with the
client and you're not getting paid so so
there is kind of a limit to your income
potential there I mean certainly you
know you may look at hiring contractors
and things but you know then it gets
then you you know what happens is your
margins start getting heat up when you
have someone sit on the bench for two
months while you're transitioning to
another project or whatever so even even
that can be a challenge and so there's
you know it's a it's a hard business to
necessarily run so I really wanted to
get into something that had you know
more you know more potential as well as
maybe less work hopefully and so that's
why I got into you know transitioned
more into the marketing of training
classes
I likes to do the training but training
to me was was even more difficult than
consulting because at least in
consulting like you know you can sit and
study a problem or work on your software
or something on your own when you're
teaching you're a hundred percent on
that whole day is standing in front of a
class and working with those students
and so it's it you know you feel drained
at the end of the day and so but when
you're marketing you're selling the
classes like I was doing I could make
quite a bit of money and I you know I
mean it's it's nothing is free in this
world it still required a lot of work
but there was a lot of income potential
I didn't have to travel as much doing
consulting or training and so that was
good especially you know starting a
family and having kids that was a big
plus to me so that's that's why I got
into into that the other part of
probably the other reason is I just like
something different and I'm always you
know looking for another challenge
what's what's next and so that's that's
another reason I did that got it yep and
I think probably a lot of people in the
audience can appreciate the fact of like
you know starting something new it's
very exciting to learn like a whole new
set of skills and like being that
beginners sort of mindset where you're
making some mistakes and you don't know
like how naive you are
like when you're getting into something
new and then you learn more and then
things are good again so that's very
very cool now did you have any specific
like challenges as you were
transitioning from one to the other or
it was like pretty easy you like jump
off points well yeah it's it's not easy
when you start something new you know
when you move when I moved from
consulting into doing training you know
one thing that helped it was of course
licensing content from from other
companies but but eventually I you know
started to develop my
content and then there's a huge amount
of investment of time to do that and
there's just there's just a lot to
figure out as far as you know how like
in that industry you know how many days
do you sell something for do you do a
two-day class or a three-day class you
know back then we were kind of you know
everything was in classroom and then we
started doing virtual classes and so
then that's a whole other challenge of
how to do virtual classes and keep
people engaged and so there's a lot
there's a learning curve to try anything
new and then when you get into online
marketing especially email marketing
that's a whole nother challenge you know
this was you know eight eight eight nine
years ago or so and so it was a little
bit easier at the end but still you had
to be careful about your email
reputation you had to be careful about
how many bounce backs you got how many
spam reports you got you know what your
open rates were all of those things
cinder score is a real popular site to
go out and check your your reputation
and so just learning everything about
that because I mean I I started out I
didn't I got kicked off more than one
email email company trying to learn this
process and so and so you feel like I
you defeated and you're not gonna figure
this out but you know you slowly get
better at it and I mean it turns into
like a machine you just you've got it
down to a science and that's where you
eventually gets easier gotcha and what
you do if you remember to get kicked off
that like email provider there yeah so
you know today we try to build lists
organically just by having great content
that people are signing up for an e-book
or some type of lead magnet that we do
generally just buying email lists is not
a good idea
scraping emails
is probably not a good idea either but
and certainly now I mean the industry
changes what we could do an email
marketing eight or nine years ago we
can't do today but back then I would I
would scrape sites and I would you know
find email lists all over the place and
of course when you email those lists
initially you have a huge bounce rate
you may be a 40% bounce rate on an email
list of a hundred thousand people and
when your email provider sees that there
they're gonna probably be in you but you
know the cool thing is you know once you
figure out how it works you know I could
say okay now I have the email that's
clean I've got those forty percent
bounces out of here I've got all valid
accounts now I just have to nurture it
in a way that I get the interested folks
out of this list and down into a
manageable point you know so so yeah you
know I think starting out with some of
that scraping and email list purchasing
got me kicked off more than once okay
that totally makes sense yeah it was a
different time back then and just
thinking of like how I do how I run my
email list where it's like you know
double opt-in you know a person has to
confirm and then I'm cleaning the list
like every month basically so yeah it's
it's much more precise these days I mean
marketers abused everything that's just
what we do so yeah yeah it's it's funny
because human proof designs and we do
the same thing we have you know opt-ins
and if we don't hear from you after a
certain amount of time we clean you off
you off the list and we just want to
keep people who are relevant and
interested and so our list may be
relatively small compared to when I was
blasting out huge volumes to a city to
sell training classes you know now that
you know it doesn't work it doesn't work
because this technology has gotten too
good you know the filtering is out there
now to filter out those types of emails
I mean I probably look
I spam and you know 90% of the email
ball you might get is sitting in spam so
it's really hard to get in someone's
inbox you've got to have a relationship
with them then you have a lot better
chance nowadays for sure so take us to
like how you met DOM and we're
introduced to human proof designs and
that sort of process very interesting
I've known Dom for a few years we
started around the same time so yeah I'm
just curious how all this took place yes
I've been looking for another
opportunity I'm always looking for an
opportunity I was looking for an
opportunity for probably a year and a
half and so I had contacted Effie
International which is real popular
online business broker and let them know
what I was looking for and so they
started to send me leads on you know
businesses that were up for sale
different opportunities that would come
up and they you know gone like their
early bird list I know about some of
these things before the general public
did and that was great but you know you
really have to wait for the right
opportunity so it took me a year and a
half of every week probably looking at
two or three opportunities and and you
know some of them I knew right away this
was not for me and others you know did a
little bit of research and work into it
before you know decided wasn't for me so
you know it takes it takes time but I
didn't want to just jump on the first
thing and I've seen that happen with
with some folks who have gone out to FBI
or Empire some of the other and snatched
up a business because they you know
they're looking for something but I
would just tell people way take your
time the right opportunity will come up
and so it took me about a year and a
half there were a couple that came up
that I was really interested in during
that year and a half and I you know kind
of took my time you know I'm gonna think
about it I spent a week or two by the
time I got back to Fe and said I want
this business
I said sorry it's already gone it's
already sold so you've got to take your
time in and find the right business
which is what I did I spent a lot of
time but you also have to be ready to
move if you find the right opportunity
for you so so yeah human proof designs
was actually listed with the brokerage F
international that's how I came to know
Dom and human proof designs and so that
was last year a latter part of last year
and so I spent some time learning about
the business and working with DOM and
just kind of understanding what was
going on with the company and then you
know we took it from there okay cool and
I'm pretty sure you can't answer me much
of this so I'll ask it in a general way
so you can bow out very gracefully so
for people that are interested because I
know there's some folks there like how
much was the selling price I won't ask
you that by the way and just in general
I'm not gonna ask anything around that
but can you talk about some of the the
general aspects of like a deal like that
so like what were some of the things you
were concerned about and then I know you
worked with Dom like what do you think
some of the things maybe that he was
concerned about so that you can make the
transaction happen yeah yeah and so
something like this is you know when
we're looking at especially with human
first designs we're buying and selling
businesses and working with folks every
day and mostly in the affiliate
marketing model there it's a little bit
easier because you you usually don't
have a large expense recurring expenses
staff and overhead and all of those
things that need to be accounted for as
well as income verification is typically
easier and some of those types of
businesses so if there's a due diligence
period that you go through to kind of
understand what the business is doing
from a revenue standpoint how the
operations are being run you know every
aspect of the company really and so we
we spent quite a depth
honestly it took I think five months
from the time I submitted an offer for a
company to when we closed so it was a
lot of work and I'm you know I'm sure
Dom was glad to reach that that closing
day and I was too but you know you
really have to spend a lot of time in
due diligence going through everything
and you know there's some lessons
learned I think for both Dom and eyes we
went through that process and you know I
think one of those is and if if you know
people know Dom he started I believe in
2013 and then kind of grew the company
over a number of years and you know he
didn't come from a background of running
big company so it was a learning
experience for him as well
but if you're out there looking to sell
business one thing that makes it much
easier I would have you know doesn't
take five months to get through good
diligence is make sure your
record-keeping is really really good
because a lot of entrepreneurs and folks
like me we just a lot like I love
technology
but I hate the accounting part you know
but if you've got a business today
you're thinking about selling it a year
or two from now like you you've got to
have your accounting in place you've got
to have documentation of your processes
operationally all those things you need
to start thinking about today because
that's what it was a real challenge with
human birth designs really was it was a
great company and a great people but we
you know when you're buying a company
you know of course you're you're you're
buying that revenue and so you've got to
document it you've got to have good
documentation of it and so that was
certainly a big challenge in that
process um but but yeah it's it took
probably five months and I've learned a
lot through that process very
interesting yeah it's a big I imagine a
big transaction to say the least so
congratulations on the acquisition of
course and as we're we're starting to
wrap up here
funny thing quick digression right I
told you or
you're Brian that we go in tangent
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