Howto Double Your Business Profitsin97 Days

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Howto Double Your Business Profitsin97 Days

  1. 1. 1 $ 1
  2. 2. 2 “Whatever the mind of man can believe and conceive, it can achieve” ~ Napoleon Hill www.DollarMakers.com $ 2 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  3. 3. 3 How to Double Your Business Profits in 97 Days with no money and no risk By Robin J. Elliott www.DollarMakers.com 3
  4. 4. 4 How to Double Your Business Profits in 97 Days with no money and no risk By Robin J Elliott Copyright 2008 by Robin J. Elliott Published by Robin J. Elliott Suite 104, The Burlington, 2968 Burlington Drive, Coquitlam, British Columbia, Canada V3B 7N4 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, scanning and recording, or by any information storage and retrieval system, without permission in writing by the author. Printed in the United States of America Book cover by Winston Bromley www.artbox.ca 4 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  5. 5. 5 This Book is Presented to ……………………………………………… In Grateful Recognition of ……………………………………………. With Compliments ……………………………………………… Date………… 5
  6. 6. 6 $ 6 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  7. 7. 7 Dedication This book is dedicated to my amazing Wife, Rika Elliott, who has stood by me through thick and thin as we built our business over 21 years. Solid as a rock, my raison d’etre. Thanks My special thanks for their invaluable contribution to my business, (in alphabetical order): David Dubeau, Enver Omar, Jay Abraham, Justine Robson, Linda and Lorna Rasmussen, Marnus Roothman, Navtaj Chandhoke, Patrick Giesbrecht, Rika Elliott, Shawn Christenson, Steve Friedland, and Winston Bromley. Note Don’t contact me about spelling mistakes or grammar in this book. The purpose here is increasing your profit; nothing else is important. This book was cut down from 134 pages to 72 pages – it’s ALL MEAT. Disclaimer The advice contained in this material might not be suitable for everyone. Depending on your personal choices and commitment, you might not double your profits in 97 days. The author designed the information to present his opinion on the subject matter, based on his experience with thousands of businesses over 21 years. The reader must carefully investigate all aspects of any business decision before committing him - or herself. The author obtained the information contained herein from his own personal experience, but he neither implies nor intends any guarantee of accuracy in every application. The author is not in the business of giving legal, accounting, investment, or any type of professional service. Should the reader need such advice, he or she must seek the services of a professional and do due diligence. The author particularly disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. The author believes the advice presented herein is sound, but readers cannot hold him responsible for either the actions they take or the result of those actions. Some of the information in this book may become out of date. 7
  8. 8. 8 TESTIMONIALS – Or, “Does this stuff really work? And will it work in my business, for me?” I saved over $125,000 on one year with Joint Ventures! “Dear Robin, I would like to tell you of one circumstance whereby the information you provided saved my family up front costs of $125,000, provided us with an income of $50,000 per year, and a passive income from the business of $30,000 per year. More importantly, the income from this medical facility has allowed me to stop being on-call on nights and weekends, and to spend more time with my family, other businesses, and our passion for helping parents help their own children... I am a Respiratory Specialist Physician and I was going to set up a medical laboratory in my field. My wife attended one of your Joint Venture Bootcamps. I read the material that very night and decided to make some big changes to my proposal. In exchange for profit which I was going to share anyway, I negotiated that since I had the intellectual capital, qualifications, and a track record of being able to set up this facility, that other partners should put up the money, and that I should be paid a consultation fee. In return, the patients of the partners would have first access, and the partners would have equity share. They agreed and this led to the current agreement and the results listed above. The power of a different way of thinking, information, and action are incredible. Thank you very much, Robin.” Kumar Ramlall, MD. It changed the way I do business! “Robin Elliott's teaching has changed the way I do business. I used to think building a business was risky and expensive. Robin showed me how to build my business using no money and no risk; just some time. Not only did I get to meet some winners by going to his Bootcamp, Robin has continued to take an interest in my success, often taking time to respond to my queries. By adding just one of his strategies to my experience, IN MY EXISTING BUSINESS, I make an additional $5000 per month. It's not completely work-free; I still put in about 8 hours per month maintaining it. Not everything I have tried has worked, and a couple have outright failed; but in spite of that, within 7 months of attending his Bootcamp, I was financially free. I highly recommend anyone looking to take the risk out of business and increase your profits attend this next boot camp. I'll be there!” Patrick Giesbrecht, Abbotsford, BC. 8 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  9. 9. 9 It Works! “Back in 2005 I personally paid $1000.00 and drove for over 10 hours to attend this Joint Venture Bootcamp in Vancouver. This event sowed the idea in my mind to start an ambitious JV plan of my own - to work directly with Darren Weeks and create the Fast Track Inner Circle for his event attendees. Now, with over 2,273 active members and over $70,000.00 in gross monthly income, I can tell you that this is the most profitable JV I've ever done. I got the idea from Robin J. Elliott, at this very Bootcamp. So, you see, I know first hand how powerful JV's can be. And I also know that there is no-one like Robin J. Elliott who as the experience and the know-how and who is willing to teach it so well. So don't wait, register now while it's on your mind. Due to the interactivity and hands-on nature of these events, the seating is limited to a maximum number of participants per event. The seats will fill up quickly.” Sincerely, David R. Dubeau Publisher, Fast Track Inner Circle Over $640,000 in One Year with Joint Ventures! "Within this circle I have given liberally of my time where I could help and have enjoyed great reward. Since handing over my $247 USD membership last year to Robin I have seen $470,000 in cash coming to my company, $100,000 in new business flowing to another member company, and an additional $80,000 in contracts issued by my company to members. Joint venturing works. I’ve found that being interested in people rather then trying to be interesting myself opens doors to business and opportunity that otherwise wouldn’t be there. I’ve had fun with Robin J. Elliott and made money – lot’s of it. He has demonstrated time and time again the ability to make something out of nothing – and that is the definition of Create!" Tas Morfopoulos Sterling Water Systems - Vancouver, Canada "A colleague whom I have come to know as a capable businessman - As an innovative business development specialist and trainer, I am confident that you will find your collaboration with him a productive undertaking." Earl W. Yates, Country Director, U.S. Peace Corps, Southern Africa 9
  10. 10. 10 To Whom It May Concern: It is with pleasure that I provide this reference commendation of Mr. Robin J. Elliott. I do this without any hesitation or equivocation. Mr. Robin Elliott is honest, a man of integrity and an advisor “par excellence.” He is a superb man of integrity and a most innovative entrepreneur. I have spoken with others about Mr. Elliott and they share this assessment of Mr. Elliott. If you wish to contact me for further information, please do so. Dr. Sam Sussman, PhD, Fellow Royal Academy of Medicine in Ireland Assistant Professor of Psychiatry, The University of Western Ontario World Association of Medical Editors (WAME) President and CEO Physicians Canada Good Friend I have known Robin Elliott for 15 years. Robin made me aware of the potential to turn an in-house, high-tech print shop that I had put together into a national, structured business opportunity. Robin assisted me throughout the development stage of the project with invaluable advice and inputs and, when it was ready to launch, personally canvassed the buyers of the first two PrintAffords. These two sales alone were worth in excess of $120 000 to me. PrintAfford now boast 29 business owners established in 6 provinces of South Africa. It would be hard to over estimate Robin’s share in my success, and impossible to put a realistic monetary value on his input. Enough said that PrintAfford has to date generated in excess of $2 million over the past 4 years. If it was not for Robin J. Elliott's vision and encouragement, PrintAfford would never have come into existence." Marnus Roothman Managing Member PrintAfford SA Transformed "In just one morning, Robin Elliott totally transformed my view of how business should and could operate. He opened my eyes to how existing business operations could be energized to create greater value for customers, increase revenue and explore unseen opportunities that had existed all along. He gave greater meaning to the mantra: Together We Can Do Amazing Things!" Don Fitts, President Fitts Communications, Inc. Bellevue, WA (Ex Vice President, Internal and External Communications, The Boeing Company.) 10 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  11. 11. 11 Dental Practice November 28th, 2004 My husband and I opened up a new dental practice just over five years ago. He had already been a dentists for ten years; however, due to a medical condition, he had to sell his former practice and leave dentistry entirely for just over two years. When we started "ProActive Dental Studio" in 1999, we had no patients. We found a good, central location for our clinic, but were trying to find ways to build... In 2001, I joined the Surrey Chamber of Commerce where I met Robin J. Elliott. I attended one of his marketing presentations, and was very impressed by his content and delivery of the information. I signed up for a complimentary consultation, and decided to hire Robin to help us with our image, service, and advertising models. He gave us innumerable ideas to help lift the profile of our dental studio, as well as very practical advice on how to keep patients happy. He helped us implement a great referral program, and encouraged many points of "positive contact" with our patients. He challenged us to become the "premiere" dental facility in the region - a goal which I believe we have achieved! Robin has great depth of experience and knowledge in a number of fields. He knows what works and what doesn't. He knows where it is worthwhile to spend money, and where it is not to. Although the success of the dental studio is based on many factors, I believe that Robin was the stimulus to get us all going. In five short years,. we are one of the top performing practices in the Lower Mainland. I would have no hesitation in recommending Robin to others in the dental profession. He is a man of utmost integrity, and delivers everything he promises. Sincerely, Cheri L. Guze, BA, MBA Manager - Proactive Dental Studio. “Never take advice from anyone who doesn’t already have what you want” – Jim Stoval 11
  12. 12. 12 CONTENTS Who Is This Book For? Page 15 Why This Book? Page 15 Prepare for Success Page 16 The Purpose of Business (profit) Page 18 The Problems of Business Page 20 The Perspective of Business (ego, focus, territorial) Page 21 The Joint Venture Mindset Page 22 Your Philosophy Page 23 The Bucket Analogy – Income and Outgo Page 24 The Big Picture Page 25 Your People Page 27 Your Profit Page 31 Your Partners Page 33 Your Problems Page 33 Your Potential Page 34 Your Time Page 35 Your Money Page 36 Your Risk Page 40 Your Database Page 42 Cash Flow and Residual Income Page 44 Getting More Customers Page 48 Getting More Distribution Page 54 Increasing Closing Ratios Page 54 Getting Them to Spend More Page 55 Getting Them to Refer More Business to You Page 56 Getting them to Buy more Frequently Page 57 Removing Barriers Page 57 Retaining Customers Longer Page 58 Affiliate Programs Page 58 Websites, Internet, Ezines Page 59 12 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  13. 13. 13 Real Life Examples of How People Doubled Their Business Profits Using These Systems Page 60 House Cleaning Business PAGE 60 Restaurant PAGE 60 Network Marketing PAGE 62 Auto Lube and Tire Business PAGE 62 Gift Basket Business PAGE 63 Dentist PAGE 64 Realtor (Real Estate Agent) PAGE 64 Me PAGE 64 Two Exiting Opportunities Page 65 Your Action Steps Page 67 Recommended Reading Page 70 Recommended Websites Page 71 About Robin J. Elliott Page 71 Support Information: Page 71 Contact Information Page 72 13
  14. 14. 14 “Whatever you vividly imagine, ardently desire, sincerely believe, and enthusiastically act upon, must inevitably come to pass” – Paul J. Meyer 14 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  15. 15. 15 Who Is This Book For? Anyone who has any kind of business, regardless of your circumstances, industry, products, services, or profitability. Whether you are a one-man-show-shoestring-start-up, or an established, fifteen-million-dollar-a- year, brick and mortar business, anyone will benefit by applying these simple principles that we have learned over 21 years. Whether you are in Network Marketing, a coach, a consultant, a salesman for a large company, a landscape gardener, a sales manager, a CEO, a dentist, or the owner of a restaurant or dry cleaning business, you can benefit from this book. As long as you want to make more money, and you’re motivated to apply these principles, you’re the right reader. I am sincerely interested in your success, because Zig Ziglar teaches that “You can get anything you want out of life, if you’re prepared o help enough other people to get what they want.” I know you’re probably very busy, so I won’t pad this book with meaningless stuff and nonsense to bulk it up; I don’t have anyone to impress. I want every page to be worth a lot of money to you. This is my tenth book, and I have found that what works in my training sessions, talks, books and articles is straight talk – to the point, lean and mean, bottom line-oriented, easy-to- implement, no money, no risk, no brainer, practical, politically incorrect, real world, proven tools that can start producing real money real fast. Why This Book? This is my tenth book, and, I like to think, the most useful, since readers have access to a lot more material and support via DollarMakers than ever before. My previous books were “How to Kill Elvis Presley” (overcoming past, negative conditioning), “Muscle, Mind, and Motivation” (co-authored with Lionel Kearns, the South African Body Building Champion), “The Sales Wizard”, “Black Pride” (black role models and success stories to inspire South Africa blacks, who generally had never been exposed to successful, positive role models – South Africa only got television in 1976 and media was severely controlled and censored), “The Marketing Wizard”, “How to Start Your Own Business with No Money and No Risk”, (none of these book is available anymore, so don’t ask) and then “Joint Adventures” and “Life is a Joint Venture”, both available as free downloads from www.DollarMakers.com, the former in five languages and downloaded over 18,000 times, “How to Retire in One Year” available for sale on www.DollarMakers.com, and now this book. 15
  16. 16. 16 The purpose of this particular book is to show you how to double your net profit in 97 days, using proven systems, without cost or risk. Depending on your input, work, understanding, level of motivation, open- mindedness and teachability, you could accomplish a lot more in less time, or you might not accomplish anything at all; it’s up to you. The average business operates at about 10% of it’s potential profit. I once took a profit center in my business from $4,000 per month to $20,000 per month in a mere four days. Once, a home study course doubled my profit in one month. A three day seminar once quadrupled my profit. A Joint Venture that I set up in 45 minutes made me $27,000 net profit. This stuff WORKS. Applying the information in this book can dramatically increase your cash flow, and perhaps cause you to change your entire way of doing business, maybe even start a brand new one, close down the one you have, or add new ventures. It can also remove anxiety, pressure, problems, stress, and worry, and make you a plenty of money. It is the culmination of a lot of learning over a long time with many businesses in many different industries across North America, the UK, and South Africa. I continue to learn, make mistakes, and grow, and I have a long way to go yet, but you hold in your hands the solution to most of your business issues, and a strong bridge to your goals and desires. Read the Real Life Examples of How People Doubled Their Business Profits Using These Systems later in this book Prepare for Success This book prepares you for serious success. It shows you how to look at business from an objective, synergistic perspective. Builders all know that the foundation of a building is very important if you want to build a tall building that will last. Success occurs when preparation meets opportunity. We never know what the future holds, and the better prepared we are, the better we can take advantage of the situation and turn life’s lemons into lemonade. Tim Larkin, says, “You never know how many people you’re fighting until you’re fighting them all.” Heavyweight Boxing Champion Joe Frazier said, “You can have a life plan or a fight plan, but when the action starts, you’re down to your reflexes – your training. If you’ve cheated on your training in the dark of the morning, you’ll be found out under the bright lights.” You can only wing it for so long. I see this in business all the time. People get up to introduce me as the speaker or seminar leader all the time, and it’s amazing how many of them haven’t prepared. As they wing it, they make the most 16 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  17. 17. 17 atrocious mistakes. They get their numbers and facts confused, and it reflects badly on me and the person introducing me. Being well prepared allows you to get the edge on all those who try to do things at the last minute, by the seat of their pants, show up late, forget things, and don’t deliver on time, if at all. They over-promise, under-deliver, and sabotage their own credibility and success. Worst of all, they deny themselves future opportunities because they develop a reputation for being unreliable, so they get the scraps. Take the time to prepare well, to train more, to know more than your competition, to be better conditioned, locked and loaded, mean and lean, fit, focused, and fierce. Do your homework, show up early, and look the part. Build on trust, integrity, and solid relationships. Build with solid material and solid JV partners. The hype and flash lasts about as long as a bubble on a muddy river. Build your house on a rock. J.B. Matthews said, “Unless a man has trained himself for his chance, the chance will only make him look ridiculous.” I tell DollarMakers Club Members to prepare strong fishing nets and learn to fish before venturing out. I see people in the middle of huge shoals of hungry fish, and they’re falling around in the water trying to buy a fishing pole and asking what bait to use, while the smart ones are pulling the fish out by the bucket-load. Abe Lincoln said, “If I had six hours to chop down a tree, I’d spend the first hour sharpening the axe.” Confidence and courage come through preparation and practice. Success is by design, not by chance. Gary Player said, “The harder I practice, the luckier I get.” Spend an extra hour preparing and save months of wasted time. Professionals expect to succeed, plan to succeed, prepare to succeed, then succeed. 17
  18. 18. 18 The Purpose of Business I stand in front of groups of business owners on a very regular basis. I talk to them on conference calls, and they e mail and call me. I ask them, “What is the purpose of your business?” Their responses are usually pretty much the same: To get more customers To give great service To help people To make sales To pay the bills To make money To get market share To provide jobs To be the best in our industry… The real purpose of business is to make the maximum amount of after tax, net profit, with the least amount of time, cost, risk, or effort. This is why it is relatively simple to double your profit – not your sales, your PROFIT, because, when you factor in all the costs and time, the average business does not make a huge net profit. I will show you how we can build your bottom line profit, using proven techniques and the Joint Venture mindset. You are not a social worker, a rescuer, or a socialist – you’re an entrepreneur, and your business is a money machine, an income source, a DollarMaker. It is not an extension of your ego. It has nothing to do with your ego. Your biggest enemy in business is self-importance, pride, and an egotistical approach. By focusing on net profit, you can sublimate your mighty ego and become objective enough to make some very profitable adjustments to your business. You are not in business to be popular. Three percent of people are successful, and the 97% attack those more successful than they are in some way, shape or form. It’s just the way things are. The tall trees catch the wind. It’s the price of success. The more successful you are, the more the losers will 18 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  19. 19. 19 attack you – get used to it. They smash the mirror and shoot the messenger. Look at Wal-Mart, Microsoft, and other true successes, and see how they are attacked by the socialists, collectivists, mystics, environmentalists, and multiculturalists, the enemies of capitalism and free enterprise. I am a student of Churchill’s life and philosophy, and he was attacked for most of his life, and was very unpopular with his own government and even the Royal Family, even when he was Prime Minister, yet that did not defeat him or get him off course. You are not in business to be popular; you are in business to get rich, and you do that by making a profit. Oscar Wilde said, “Whenever you find yourself on the side of the majority, it is time to pause and reflect.” 19
  20. 20. 20 The Problems of Business These are some of the problems that business owners experience that can be overcome or severely diminished using the information in this book: Hard to get and keep good / skilled / honest / capable people Busy times and quiet times (feast or famine, chicken or feathers) Competition Offshore competition Price cutting Diminishing profit margins Lack of cash flow, money, credit, or other resources shortages Increasing overheads and costs of sales Higher customer attrition Lack of customer loyalty Lower transaction values Limited infrastructure Currencies being devalued All your eggs in one basket High risk Being “owned” or controlled by a few big clients on whom you depend Events beyond your control, like weather, laws, town planning, trends, politics, crime, changing demographics, and new technologies. Can’t sell the business, but getting too old / tired to keep running it Lots of money but not enough time Plenty of time but not enough money Changing laws and regulations Changing industries and climate Employee sabotage and theft, shoplifting Age, illness, frailty, exhaustion, stress, pressure Problems with partners, customers, vendors, employees, and local government officials. Your problem is not new or unique, and there is a solution for you. The good news is that you can use Joint Ventures, leverage, and duplication to overcome these common problems. 20 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  21. 21. 21 The Perspective of Business Most owners of small and medium-size businesses have bought into the following myths: You have to work hard for a long time to make money You have to risk a lot You have to spend money to make money The bigger your risk and investment, the more secure you are You have to focus on one product, service or industry You have to jealously guard your territory and regard your competition like an enemy You must pay the lowest possible commissions and salaries to your employees and staff Dog eats dog Cut costs and focus on new customers (to the exclusion of existing customers) Buyers are liars Customers come first (before employees and reason) Maintain control at all costs Don’t trust anyone This may have been true in years gone by, but today the world is a more sophisticated, connected place. The synergies and partnerships available today in the connected global village make strategic alliances, Joint Ventures, and partnering a very viable option. Work smart, share resources, use leverage and duplication, and strive for value and win/win deals, and you will be light years ahead of the dinosaurs around you. Your competition is your best friend. You can get rich fast, with no cost, risk, or the sacrifice of your family, and you can have fun in the process. You can be selective and you can choose with whom you work. Multiple streams of residual income at 100% margin is a reality. Timothy Ferriss’ “The 4-Hour-Workweek” is a reality. I run my own business with no employees, no overhead, minimal risk, and no inventory, and apart from the Membership and training Bootcamps which I conduct around the world, and which account for a mere 8% of my income, I can run my business in sixty minutes per day from anywhere. 21
  22. 22. 22 When I say, along with Don Fitts, “Together, we can do amazing things”, I really mean it. Every resource you need is readily available to you through Joint Ventures, whether it’s credit, reputation, time, money, employees, skills, lists, or whatever else you need! Doubling your sales won’t necessarily double your profits, as you know. In fact, you might not have the capacity to double your sales without capital investment or increasing your overhead, staffing, or inventory, so we need to be analytical about the best way to increase PROFIT. That’s where Joint Venture Income becomes very lucrative. The Joint Venture Mindset Dale Carnegie taught us to “speak in the interests of the other person”. Business is about finding a need and filling it, connecting supply and demand, creating value, solving problems, enriching the lives of others, and getting paid for it. Bill Gates created value for billions of people through Microsoft, so he got quite rich. Nobody cares about Mr. Gates; they care about themselves and what he can do for them. If they like what he has to offer, they will pay for it. It’s that simple. It’s not about what you want. We make money by helping people live better lives, not by talking about ourselves. Entrepreneurs who focus on creating value for others are on the right track. Joint Venture Brokers are middlemen or catalysts, connectors. They seek synergies and they are strategists. Like chess players, they look ahead, plan carefully, find links, and remain objective. This approach advances better choices, more profit, less ego and emotion, and better business all round. A good concierge in a hotel makes more than the General Manager, because he is like a JV Broker. He directs the guests to restaurants, shows, limo services, clubs, hookers, and tours, and he gets a commission from all those service providers, plus his salary, while the GM slaves away, carrying a large burden and pleasing his superiors. I know, because I was a hotel manager for seven years. At Hotel School I learned to work, but I didn’t learn how to make money. I should have been tutored by a concierge instead. Who else makes money in the hotel? The Executive Chef. He’ll never admit it, but he gets kick- backs from every supplier, every week, plus his salary. 22 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  23. 23. 23 We will now start to think about what others want, and we will start to make real money. Nobody wants to hear about you, how smart you are, or your resume. Resumes are for has-beens. You need to be an architect of the future, not an archeologist, dealing with the past. People care about themselves and their needs and wants. Your mindset needs to be, “Who currently owns, controls, impresses, communicates with, does business with, and is known and respected by the kind of customers I want? What do I have to do to get that person to actively, consistently, and enthusiastically recommend me to those people? What will it take? What does that person want?” Your Philosophy Mark Da Cunha said, “Capitalism is a political system that if based upon the wrong philosophical base, is like a towering skyscraper, built on a foundation of quicksand. That is what philosophy has to do with capitalism.” One’s philosophical premises shape and determine one’s perceptions, beliefs, and choices. We are the result of our input and conditioning, and our philosophy controls our future. The results you are currently experiencing in your business are the product of your philosophy, your weltanschauung or world view, and unless you change your philosophy, your circumstances won’t change. This book is meant to help you change your business philosophy. We don’t have money problems; we have THINKING problems. The fastest way to change your income is to change your philosophy and beliefs, so I recommend you immediately start reading the writings of Objectivist Ayn Rand. Atlas Shrugged is a book I highly recommend. If you have misconceptions about money, the right to earn it, or the nature of wealth, or hang-ups about guilt, altruism, socialism, or entitlement, Atlas Shrugged will help put everything into perspective for you. Get the book and start reading it right away. Also, your self-esteem can inhibit your success, and the quickest way to improve your self-esteem is through self-discipline. So discipline yourself to apply the lessons in the book diligently to your business. And remember that you will earn within ten percent of the people you spend the most time with, so 23
  24. 24. 24 make sure you’re hanging around with people who are richer, smarter, and more ambitious and positive than you are. “Money is the physical symbol of man’s successful use of his mind in the area of production. It is a tool of exchange that allows men to trade goods and services that they have produced in a market economy. Money is important and money is good.” That is a philosophy that will empower you. The Bucket Analogy – Income and Outgo “There’s a hole in my bucket, dear Lisa, dear Lisa… Well fix it, dear Henry…” See your business as a money machine, or a DollarMaker. It works to create money. It can be represented by a bucket: The tap or faucet above the bucket is the income, or money being earned. The bucket has holes in the bottom, and these are the expenses. When the money bucket is not filling up, there is more money flowing out than there is coming in. It’s called cash flow. Our job is to create more income, and less outgo. That simple. By remaining objective and level-headed, we can quickly stop those holes and get more money coming in. An investment is different from an expense. Any money that we invest must bring us a greater return, and that goes for salaries, advertising and marketing costs, and every other expenditure. We need to be accountable for every expense. If we are careful to monitor everything in the business, we will be on top of things and able to control what is going on. Like good debt and bad debt, there are good expenditures and bad expenditures. Similarly, there are people who produce and create value, and there are other people who are parasites and leeches, and who are undermining your business. You need to know which is which. A salary or wage requires a good return on investment. We will strategically and methodically create many new faucets for your business, so that your money bucket fills up and overflows. Sales are not net profit. There are businesses with great sales that go bankrupt, because the money coming in (sales) was less than the expenses and overhead. That is why we focus on profit, represented by the rising water in your money bucket. $ 24 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  25. 25. 25 The Big Picture Take a good look at your business. This morning, I was casually looking at a map of London while I had a cup of tea. I love looking at maps. I realized, looking at the map, that recently, I missed an opportunity. On one of my regular trips to England to present a Joint Venture Bootcamp a few weeks back, I had a day off and decided to take a walk along Oxford Street and down Regent Street for some exercise. What I didn’t realize was that it was closer to walk to the British Museum which would have been far better, yet I was too jet lagged to even look at the map. Sometimes, we’re so “jetlagged” in our businesses, so tired and stressed and busy, that we don’t take time to stand back and look at the map – the big picture – so we miss out on some great opportunities. I won’t miss the opportunity to visit the British Museum next time I’m in England! If some of these questions don’t apply to your business, or if you can’t answer them all, that’s fine. This is simply meant to make you think about your present situation. ASK YOURSELF: Why did you start your business? Why do you still run it? Is it making money? What is the income and expenditure? Where does the money go? What makes the most money? Who makes the most money? Do you have a database? What takes the most time? WHO takes the most time? How regularly do you communicate with your customers? What is the average transaction value (sale size)? How often does the average customer buy from you? How much money do you make from one customer per week / month / year? What risks and threats do you face? What is your net profit? Gross profit? 25
  26. 26. 26 What are your fixed costs and variable costs? What is your attrition rate (customers you lose per year)? What is your biggest fear? Your greatest frustration? Have you ever surveyed your customers for their opinions? What differentiates you from your competition? Do you have competition? How effective are they, and why? How do you add value and go the extra mile for your clients? How do you build customer loyalty? How do you get your clients to refer new business to you? Do you reward people for referring business to you? Can you leave your business for three months? What would happen? What do you love about your business? What do you hate about it? What are your goals? How are your business problems affecting you? What is the impact on your family? If things continue the way they’re going now, what will your business look like in two years? If you had a magic wand, what four things would you change about your business? What keeps you awake at night? How do you see the potential of your business? Who are your key employees? Who are your worst employees? Why? When you take a good, hard, objective look at your business, you will find you see a lot more. A reality check is always a good thing. It is important to take stock of your present situation before you start a journey – you have to know where you’re starting from. 26 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  27. 27. 27 Your People Pearls before swine? Your time is your most valuable asset, and it is like priceless pearls to you. They are limited, as your days on earth are limited. Your time is that important. Hilton Johnson has been in direct sales for over 40 years. He has been coaching and training salespeople, managers, professionals and business owners for over 30 years. He knows what he's talking about. He says, "One thing that will burn you right out of this business, folks, is spending your time with the wrong people." I cannot stress this strongly enough. There is an idiomatic Japanese saying, "Gold coins to a cat." Not only will you waste time that could have been put to better use with good people, but there is a serious danger attached. Read the following: "Give not that which is holy unto the dogs, neither cast ye your pearls before swine, lest they trample them under their feet, and turn again and rend you." - Christian Bible. Note the scary last part: "And turn and render you" - that means rip you apart! Yes, they will turn on you when they can't understand your opportunity and message! They will punish you for their own lack of understanding and discipline. By casting your pearls before swine, you bring them into your business, your circle, your family, where they can become dangerous traitors. Now here's another shocking reality: “A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague.” ~ Marcus Tullius Cicero It's not just dumb to spend time with the wrong people, it's dangerous. Make people qualify for your time. Protect it carefully. Business is all about people. One of the biggest mistakes I have made in business is to feel sorry for people, try to rehabilitate them, rescue them, make excuses for them, overlook their bad choices, change them, or want success for them more than they want it for themselves. Recently, I got rid of 27
  28. 28. 28 one of the biggest snakes I have ever dealt with, yet everyone thought he was a loving, hugging, caring, honest fellow who wouldn’t hurt a fly. He was, in fact, just the opposite: a thieving, passive-aggressive, hypocritical parasite. It’s a great relief to get rid of those types. Don’t just burn those bridges; BOMB them, then bulldoze them. We are not social workers – we are in business to make money and we get to choose whom we work with, whether they are on a commission or a fixed salary. The key to successful business is to select the right people to work with, whether they are your advisors, mentors, bankers, accountants, lawyers, printers, partners, vendors, employees, commission-only salespeople, admin staff, management, or team members. It is essential to be very selective and to get rid of the bad ones and replace them as soon as you discover that they don’t fit. You want people who are aligned with your philosophy, values, beliefs, goals, and work ethic. If you hire socialists, know that they will sabotage your business, because their philosophy demands that they do. So find out what they read, whom they vote for, whom they mix with, before you hire them. An environmentalist who reads Noam Chomsky, smokes weed, and votes Green is probably not going to help your business double profits. I seek out motivated, ambitious, professional, honest, hungry people who have a success track record. Realistically, most people don’t change, and you’re not going to change someone who has been a loser all his life. So do your due diligence, and even get a private detective onto people if their effect on your business warrants it. Make sure you have contracts and agreements in place, and always run them by a good lawyer – “hell hath no fury like a woman scorned” applies to men, too. People either have a positive or a negative effect on you. Remove negative people. Look for people who are reliable, trustworthy, creative, loyal, professional, proud of their work, and motivated. Everyone that works for you needs to make you money, not just occupy space. Take the time to find out exactly what they do, how many hours they work, and if they are even necessary. There are people who are experts at deceiving one in terms of the actual work they do and the contribution they make. I had one who told me he received many e mails every day, but when he left and I took over his e mail address I found hardly anyone ever emailed him. Send them on leave for a week, and see if you can cope without them. If you can, fire them. You’re not a charity. Treat the good ones like gold. 28 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  29. 29. 29 Ideally, every employee should be on a pure commission based income. When workers share the ups and downs of your business success, they become committed. Give them a vested interest in your success. Demand production, make them accountable, and lead by example. Your employees are there to make the business more money than they cost. It’s your business and you make the rules. Democracy in business doesn’t work. If your employees were capable of running your business, they would have a business. You should pay your people in direct proportion to their measured, provable contribution and the value they create - no more, no less. Do not “carry” people are allow parasite and leeches to suck you dry. Be strict and consistent, and make sure your people understand that they are either totally committed or no longer working for you. Measure their production and decide if they can stay with you, and, if so, how much money they actually earn. Do not pay them one cent more or less than that. I once had a personal assistant who was in debt. I told her that I would pay her the same commissions that my salespeople earned, in addition to her salary, if her husband brought me people who bought my business opportunities. She earned an additional $35,000 within the next two months. She was a truly wonderful secretary, but when she heard I was immigrating to Canada, she lost interest in her work, so I fired her. It’s not personal; it’s business. Demand the best, do not compromise, and insist on regular, effective communication. Your people will never exceed your level of competency, ambition, vision, optimism, and integrity. Every one of your people should be aligned with you business goals and objectives, values and expectations, and they should all have a specific incentive to help you succeed in achieving those goals. While they are committed, loyal, productive, positive, and professional, look after them. When they are not, fire them. In our semi-socialist, politically correct world, be very careful whom you bring on board and have a good lawyer on retainer. When I interviewed the secretary I mentioned previously, her husband asked me for her job description. He was an officer in the army, and I’m an entrepreneur, so this is how the conversation went: “Francesca, how much money do you want?” “$1,500 per month.” “OK, here’s your job description: Whatever it takes, 24/7/365, absolute commitment. And your salary will be $2,500. Take it or leave it.” She took it. Worked perfectly until she heard I was leaving the country. 29
  30. 30. 30 The kind of people you associate with and work with will determine what you achieve in your business. You can’t do it alone, but together, we can do amazing things – ask Bill Gates. Clean out the junk and replace them, if they even need replacing, with quality. Only hire the best. Fire the worst salesman in the team every month, and you’ll see how much people can really produce. I would never hire a smoker – they stink, leave the office to smoke while you’re paying them to work, and demonstrate by their continued addiction that they have little self discipline and self respect. Don’t accept employee excuses – late is late is late. If they had a million dollar check waiting for them at work, would they be late? I think not. Try this one: “You’re late again because of your kids? That wasn’t part of our agreement. I am not interested in hearing about your kids. You get paid to do your job, so you have two choices: work on a commission only basis from now on, or leave.” Sounds nasty, doesn’t it? You decide if you want to sacrifice your success for someone else’s kids or not. How about YOUR kids? The same applies to your Network Marketing downline. Don’t recruit losers. Go for Centers of Influence and winners only. Finally, most employees report on activities instead of results. I was a new Food and Beverage Manager at the Bulawayo Holiday Inn in Rhodesia in 1979, the year before the terrorist dictator Mugabe took over. When I arrived at the hotel, I was immediately called into a meeting in which the Innkeeper and the Front Office Manager tried to persuade me to fire the Conventions Manager, whose name was Oral. They said he was a lazy SOB. I said I would make my decision within a week, and watched him working. He would do very little work, it was true, but he was a fantastic manager and delegator. I called him into my office and said, “OK, Oral, everyone tells me I should fire you because you’re lazy and you sit outside smoking while your staff work. I am now ripping up your old Job Description, and you are fired. Now I am rehiring you with my new Job Description – here it is: You don’t even have to come to work! You can sit and smoke all day and all night, as long as the work is done to my standards. If not, I’ll fire you again. Yes or no?” He agreed, we shook hands, and nearly a year later when I was about to be viciously attacked by four people in the hotel’s disco, he literally saved my life. He was a great guy. I hope he has survived Mugabe. People want to be challenged and they want to achieve things at work. I had a problem with the beer delivery at a hotel once – the two fellows who had to unpack the truck every Wednesday took ages and I had to watch them, which wasted a lot of time. One day I took off my tie, jacket and shirt, and said, “Let me show you how fast I can work – how many cases can I unload in 30 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  31. 31. 31 ten minutes?” I worked hard and challenged them to beat my record, which they did, easily. The off duty kitchen staff saw what was going on, and asked if they could also compete. The truck was unloaded in half the normal time it took. This became a regular Wednesday event and eventually we cut the time down to one quarter of what it used to take. Set goals for EVERY aspect of your business, POST the goals, celebrate successes, make everything a fun competition, and reward people generously for the things they do right. Tell people it’s OK to make mistakes. Fear inhibits creativity. Encourage them to be creative and use their initiative. Reward them financially and proportionately for innovations that make money; share the love, but punish dishonesty, excuses, and laziness. Compare the fantastic service at the WestJet airline, where every employee has shares in the company, with airlines with unionized employees – there is no comparison. Capitalism works. Your Profit Are you proud, or are you profitable? When entrepreneurs get emotionally involved in their businesses, they start seeing their business as an extension of their ego, and that's when pride clashes with profitability. Men, especially, sabotage their own success when they become territorial, competitive, and pig-headed. My very good friend and mentor, Marnus Roothman, the DollarMakers Director for South Africa, used to ask me, "Do you want to be right, or do you want to be rich?" I'm not talking in the context of values - I'm talking about egotistical stubbornness. We're in business to make a profit, and as long as you don't step on your values, you can benefit a lot from being somewhat flexible and overlooking certain things in the interest of the big picture; losing a battle to win the war. As a "black or white", right or wrong, politically incorrect, A-Type personality myself, I know whereof I speak. There is a time to compromise and a time to insist, and there is also a time to understand and forgive. Again, as long as your values remain intact, you will find yourself skirting detours and getting to your destination, while your old self is still attacking the detour with a battering ram and a small cannon. There's a difference between being smart and being soft. If someone gets it right 98% of the time and messes up 2% of the time, perhaps it's wise to focus on the 98% and reward good 31
  32. 32. 32 choices, instead of hammering on the bad ones. Maturity doesn't have to mean passivity. You don't have to compromise your own standards. You do have to give in order to get, and when you are prepared to overlook a flaw in your business partner's performance, the reciprocal favor can mean a lot to your bottom line. And it's all about your bottom line, not your bottom lip. You're in business to make a profit, not to look good at your local Chamber of Commerce meeting. Seasoned entrepreneurs understand that they should keep their egos on a tight leash, spend good time on objective, strategic planning, and maintain an eye on the big picture. They also know the value of giving people enough rope to hang themselves - that's the chess player at work. Hissy fits, tantrums, and throwing babies out with bathwater has it's place - Indian organ grinders are said to discipline their pet monkeys by periodically killing a chicken in front of the monkey - but that should be the exception rather than the rule, and used only when entirely appropriate for the optimal results. You're in business to make a profit, not to make a statement - remember that. This book is about showing you how to double your profits and then to keep on doing so. It’s not about how long you’ve been in business or how smart you think you are. It requires putting your emotions and ego on hold for a while and taking off the judge’s robes. If you hear yourself responding, “Yeah but…” or “But I tried that…” or anything else that contains a “But”, check yourself. Don’t deny yourself success because of past experiences, conditioning, and false pride. If you fear failure, ask yourself this: Would you fear failure if there was nobody else in the world? No, you wouldn’t, because you don’t fear failure; you fear the opinions of other people who don’t give a damn about you, anyway. This book is about doubling your profits with no cost and no risk, so how can you fail? If you try something and it doesn’t work, so what? You learned something which you can use in the future. You succeed by taking action, succeeding and failing on your way to the top. We will focus specifically on increasing your business profits in this book. Everything you earn from the efforts and resources of other people through Joint Ventures is 100% profit. What is your current net profit in your business? Isn’t 100% profit the best kind of income? 32 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  33. 33. 33 Your Partners We will be discussing partnering and Joint Ventures in this book. Make sure you choose the right partners, and communicate regularly with them. Do not expect someone who has no money to pay you the handsome commissions he is promising – get real. Desperate people do desperate things, and situational ethics will kick in when cash flow is their problem. The DollarMakers Joint Venture Club has hundreds of Members around the world who have all agreed to abide by our Code of Business Ethics. When we find that one of them is dishonest, I fire them. I have fired many Members and refused Membership to many, as well. Be selective. Your Problems As you start implementing these ideas, you have to be careful not to let your existing problems distract you. It takes a bit of time to set up new systems, so you need to be patient, and some things simply won’t work, that’s why we remove the risk and cost. Don’t give up because something doesn’t immediately work. When I was in high school I got it into my head that I wanted to play in a band. There was no money for a set of drums, but I won a floor polisher at a game show (in spite of being under age) and swapped it for a used set of drums. My family was not wealthy: we lived in two rooms and two balconies in a residential hotel, and I practiced playing the drums in that place. I must have driven many to suicide. Being unconsciously incompetent, I advertised my services as a drummer at a local music shop, and got a call from a real band to join them for a gig at a restaurant one night. They didn’t know that I was self taught and a rather pathetic drummer! One of the band members fetched me, loaded up my drums, and took me to the Pinocchio Restaurant. Well, I simply couldn’t do the job, so someone in the audience kindly took over and played my drums for me. How humiliating! I was ashamed, but my dream was bigger than any embarrassment, so I promptly advertised my services again, met up with some great guys who taught me, humored me, mentored me, and endured me, until I played better and we made good money and had great fun. The word “QUIT” is not part of my life, and it should not be part of yours, either. Failure is a temporary state, so don’t overreact to problems – keep on keeping on. Your existing business problems will begin to fade as the profits in your business increase and you transition to this new mindset. 33
  34. 34. 34 Your Potential Using Joint Ventures in your business effectively opens new doors and removes all limitations from your earning potential, in many cases dwarfing the business the way it is right now. The past is not equal to the future, and we are going to follow the money, not the ego, the history, or the current beliefs and expectations. With Joint Ventures, your business has unlimited potential. Winston Churchill said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. The most important factor in doubling your business profits is your attitude. The only thing that limits us is our beliefs, and when you realize that these systems can work to double and quadruple your income, you become unstoppable. In his book, The Art of War, Sun Tzu said, “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” That is why it is so important to maintain an optimistic, strong attitude, and surround yourself with a team of equally motivated people. Winners go all the way. They insist on high standards, they do their very best, and they expect the very best from their team. Ayn Rand said, “I can accept anything, except what seems to be the easiest for most people: the half- way, the almost, the just-about, the in-between.” A mediocre, lack-luster approach will kill your endeavor before you even start. A good example is immigrants. When you immigrate to a new country, you literally have to start your life all over, and your attitude at the outset will determine what you achieve. Those who “keep the back door open”, who use words like, “Well, if it doesn’t work out, we can always go home” are guaranteed to fail. It’s not WHERE you are, but WHO you are. A winner can be dropped anywhere in the world and he or she will rise to the top. Cream always rises to the top. Believe the dream. Be the cream. $ 34 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  35. 35. 35 Your Time Your time is by far your most valuable resource. It should be very carefully used. It is irreplaceable. Ideally, you should only do what only you can do. The rest should be delegated, subcontracted, or given to people whom you pay to do it. Leverage other peoples’ time. Wasting time is a great sin. You should not be doing minimum wage jobs, like washing you car, licking stamps, standing in a line at a Post Office, or doing ANYTHING that you can pay someone else to do. Your time should be used to set up deals that make you rich. Don’t let emotions, feelings of obligation, or guilt dictate the way you invest your time. Be reasonable. Imagine each hour costs you $1,000 and that you would have to write a thousand dollar check every time you allocate one hour. When we complain that we don’t have time, we’re lying. We all have 24 hours a day, and we have allocated that time to certain priorities and activities. When someone says, “I don’t have the time”, they simply mean that it is not a priority for them. You have to give up one activity to make time for another. The question is, what is the best use of your time? What is the highest possible return on the investment? You have 24 hours a day to carefully invest, just as you invest money, except that once time is spent, it is spent forever! If for you sleep 8 hours, eat, do toiletries and dress for another 3 hours, and allocate one hour for other unavoidable essentials, you have TWELVE HOURS A DAY. One hour a day = 365 hours a year, or 15.2 full, 24-hour days! Yes, it adds up, and there is a cumulative effect. Read Jeff Olson’s book, the Slight Edge, and you will never see time in the same way again. Success is the result of consistent, good activities over time. I was a Work Study Officer, so I learned about work flow, flow charts, PERT diagrams, and how to save time and money by designing the right systems, forms, and work processes. I was amazed at how much time we waste. At any given time during the day, you should stop and ask yourself these important questions: “Is what I am doing now essential? Should someone else be doing it? Is it the best possible use of my time? What would happen if I didn’t do it? Is it taking me towards, or away from my objective? Is it important, or simply urgent?” 35
  36. 36. 36 Your Money How you regard money, how you manage it, how you invest and allocate and spend it, makes a huge difference to your profits. Wisely cutting unnecessary costs and overhead, while understanding the difference between good debt and bad debt and leveraging all the money you can, is what smart people do. Let’s look at a few examples. Can you use existing resources instead of buying or renting resources? For example, the average boat owner in British Columbia (best boating waters in the world) only uses his boat 30 days in the year. When you examine the numbers, it’s cheaper to charter or rent a boat rather than buy one. Ego makes you buy the boat. Reason allows you to rent one. Every year I am tempted to buy a ski pass. Every year for the past nine years I have saved money by not buying one. THINK. Analyze. Evaluate before you spend. I drive a ten year old car. I can afford the best, but I have nobody to impress. Did you know that Wal-Mart founder Sam Walton, one of the richest men in the world, drove an old pick-up truck? A cost is different from an investment. Too many entrepreneurs buy things they don’t need and can’t afford with money they don’t have to impress people they don’t like and who don’t even notice what they bought. Money has to make you money. When I say I do things with no money and no risk, I really do. I have NO overhead or fixed costs apart from Internet access and a telephone bill. I seldom use a cell phone, and I get everything paid for by other people most of the time. I set things up like that. I can show you a way to get 12% on your money. That means you can get a line of credit at say, 6%, and then lend it out at 12%. So you’re making 6% on the bank’s money. On $100,000 per month, that $500 per month profit, every month, for doing nothing. How many products do you have to sell to net $500? When you get that special introductory offer from a credit card company offering you $100,000 for one year at 2% interest and no card charge, why not take it and lend it out at 12%? That makes you 10% profit = $833.33 per month. Why pay down your 6% mortgage when you can earn 12% on that money? Use the equity in your home to put money in your pocket. Make the bank work for you. Push your bank manager to lend you more money, or move to another bank, then lend that cheap money out at 12%. 36 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  37. 37. 37 If you want more information on this excellent 12% return on investment, e mail me robin@dollarmakers.com – I use the source all the time, as do many of our Members. Available worldwide. ADVERTISING: Ask yourself, is this expenditure making me money or serving a good cause, or am I just spending this money out of habit? I knew a businessman who spent money buying T shirts for a baseball team. He hates baseball, but he was convinced he would get great advertising. Wisely, he monitors all new business, so he knows the origin of all his business. He has never got any business out of this sponsorship, but he is embarrassed to stop wasting his money in this way. EGO. You will more embarrassed when you go bankrupt. Get over yourself. Don’t be a collectivist. You don’t owe those kids anything. This is business. It’s OK if you just want to help or donate, but don’t confuse advertising with altruism, ego, or the inability to say, “NO.” My wife and I get to the supermarket checkout and the kid at the cash register asks if we would like to donate a dollar to athletes. No! What did they do for me? Be strong and clear. I give money to people I love and care about, not unknown characters. And I make sure I control how the money is used, too. And I NEVER give to charities like the Salvation Army, where a large portion of my donation is used to pay lazy bureaucrats. It’s your money, you earned it, and you are not obliged to give it away to anyone. When advertisers try to entice you to gamble with them and believe their tall stories, here’s what you do: Let’s assume the advert costs $2,000 and you normally pay out $100 commission on the average sale. You tell the advertising company (not the sales rep, but the owner), “Let me ask you this, you know your advertising medium, reach, and demographic, and you obviously researched my business in depth (yeah, right!) before approaching me to spend my money with you, because I know you care about my business and I can see you’re a professional. Knowing your advertising and knowing my business the way you do, would you expect me, reasonably, to make at least 40 sales as a result of this $2,000 advert?” They will usually answer “yes”. So you respond, “OK, this is what we’ll do. You go ahead and advertise my products and have all the responses routed through your office to me, so that you have a control and you can do a spot check. For every lead I convert, I will pay you $100. If I make the 40 sales you promise, you’ll get $4,000 instead of the $2,000 you’re asking for. And if we only get HALF of those sales, you will still earn the $2,000, so you can’t lose!” That’s called Contingency Advertising. Pay for results, not promises. Don’t fall for their lies. I NEVER pay for advertising. I 37
  38. 38. 38 always pay for results. Commission only, that’ the way to go. Risk free. Let the advertiser lie awake at night, while you sleep like a baby pig with a full tummy. Put your employees on commission only. When people want a meeting with you, let them come to YOU. Don’t use time and gas and travel to them. A good friend of mine is very wealthy, and when he invites me to a meeting at his boardroom, he means his swimming pool. Actually, it’s the apartment complex swimming pool. Use technology, save time and money, and stop trying to impress people. When you buy an expensive bottle of wine, I just think you’re wasteful, because I know that you probably couldn’t tell the difference between a $20 bottle and a $100 bottle. That doesn’t mean we shouldn’t enjoy the best things in life, it just means we should spend money for the right reasons and stop fooling ourselves. Did you know Warren Buffet owns a fleet of jets but he flies with the same airline you and I use? The worst show-offs are the Network Marketing new rich – the mailman that did well and now drips with diamonds, the lawnmower salesman with the expensive Rolex. My multi-millionaire friend brag about his ten dollar watch bought at an airport. I love Network Marketing, but I wish the top producers would get a little class. Close those holes in the bottom of the bucket. Take a good look at your expenses. Don’t cut the cost of the flowers you send your customers, because they might bring a great ROI, but perhaps carefully reconsider that Starbucks grande latte. Rika and I use petrol points, Air Miles, supermarket points, and coupons. And we use the local library a LOT. Do I still buy books? Of course! I spend a lot on new books, too, but I also save a lot by using the library. As we move a long, you will see how we use Joint Ventures to save money in our businesses, but at this point I must mention Barter and Trade. We joined a Trade company. They marketed our $1,000 per person Bootcamp at their cost and we earned 8000 Trade Dollars. Our cost on that to the Trade Company was 12% and our direct cost was only 3%, so when we spent those Trade Dollars to buy things from other Trade company Members at their regular retail prices, we were getting an 85% discount! When you understand cash conversion, and the leverage of perishable resources through the use of Trade, you will find many ways to make money, increase sales, and leverage resources. 38 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  39. 39. 39 Trade Dollars are deemed taxable Income by Revenue Canada, probably by the IRS as well, so you can sell excess inventory and time, space and services, and earn trade dollars, (the trade company does the marketing for you at no cost, so they can earn their ten or twelve percent), against which you can borrow money from the bank. So you earn $40,000 trade dollars selling excess inventory at a cost of sales of $4,000, plus the company’s 12%, and when you spend that money you get 78% discount on regular purchases. Will that push up your profits? Of course it will. BUT, you could also borrow money from the bank against that $40,000 at 6% and lend it to my contact at 12%! That earns you an additional $200 net per month, pure profit that goes straight to your bottom line. Lovely! I would go so far as to say, “Delicious!” There was a smart fellow, years back, who wanted to buy a hotel in California for $1.5m. So he met with the hotel owner, his lawyer, and a scrip broker, issued $3m worth of scrip (coupons and gift certificates for rooms and food to be used over the next five years) and sold the scrip to the broker for $1.5m, which he used to buy the hotel. Then he borrowed a million dollars from the bank at 6%, using the hotel as security, which he loaned out at 12%. That earned him $5,000 per month net profit. There is a 40% breakage on the scrip, which means 40% will never be used, plus it goes down in value against the rising prices over five years, and with a food cost of 32% and a room cost of 18%, he couldn’t help but get rich. People who used the scrip stayed longer, ate in the restaurants, and brought their friends… In Australia, you can get a cab or go to movies using trade dollars. In the US, you can buy Trade Dollars for 15c on the dollar. You can trade cars for television advertising, as was done with a thousand Imperials in the 1970’s, and anything is possible when you understand value, cost, retail, and leverage. For more information on the power of Barter and Trade Dollars, visit www.BarterBootcamp.com 39
  40. 40. 40 Your Risk Business is only risky when you set it up that way. I am risk averse, so I don’t risk. 87% of new businesses fail in the first five years, and 87% of the remaining businesses will fail in the next five years. That leaves you a success rate of 1.69% in ten years. You’re better off going to gamble in Vegas. So why buy a business or a franchise? You think you’re paying $100,000 for the business, but what about the leases, employees, law suits, overhead, fixed costs, and worst of all, your TIME? Enormous risk. A clever fellow I know, like, and respect, recently bought a bindery business. He’s working hard and long hours, so I wish him every success. I was on a plane from Edmonton, Alberta, to Vancouver, and chatted with the fellow next to me whose friend owns and is buying up printing businesses. I connected the bindery guy with the printing guy, and if they do business, I get paid a commission, with virtually no time and no risk to me, and any commissions I earn will be on an ongoing basis and 100% profit. I am making money from a bindery business without buying the bindery business. If they don’t do business, I haven’t lost a cent, have I? I’m going hiking with the bindery guy on Sunday. I must tell him he’s going to be in this book. How does this apply to your dry cleaning business or dentist practice? How does this apply to a chiropractor, I hear you ask. (Yes, I can actually hear your thoughts! But don’t be scared – I won’t tell anyone what you’re thinking.) It applies to your bottom line. It’s a principle. You’re already introducing Tom, Dick and Harry, referring Jan to Susan, and recommending good services, but you’re not getting paid for it. You hope people will remember and reciprocate, but usually they don’t. It’s a bit silly, actually, like having people come into your store and take stuff and hope they’ll be good enough to remember to mail you a check sometime…. Not going to happen, I’m afraid. You should be paid for all the value you create. On an ongoing basis. It’s business they wouldn’t have had without you. You deserve it. What if you have been sending someone free business referrals for years, and never got paid, because you didn’t ask to be paid? First, stick yourself in the eye with a sharp stick. Then, even if he never sent you any referrals, (but you did send him referrals), call your friend and say, “Hey, Billy Bob, I have to apologize to you. I’ve been reading this book by this bald character, Robin J. Elliott, who tells me I’m cheap, because I don’t pay commissions on referred business, so I’m sorry, because I foolishly never offered to pay you a commission, on an ongoing basis, on any business that results from your referrals. I’m sending you a signed contract to that effect. From now on, I pay 15% of the retail price. And I will pay you every time your 40 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  41. 41. 41 referral buys from me, because it’s business I would never have had, and this way I give you a vested interest in my success. Now tell me, Billy Bob, would you mind doing the same for me?” If he says, “No”, don’t fight, just never refer any business to him again – instead, start referring it to his competitor, but make sure you get paid for it. Valuable Information: If you’re in the United Kingdom and you want to dramatically improve your personal financial situation, regardless of what business you’re in, with no cost or risk, I discovered a great service there that costs you nothing and will free up money and cash flow, build wealth for you, leverage what you have, and even show you a way to earn additional income. I personally would be first in line to use this financial service if I lived in the UK, believe me. For more information, e-mail me at robin@dollarmakers.com and put “UK Financial Services” in the Subject Box of your e-mail. I will need your telephone number and full name, and I will refer you to the appropriate person. 41
  42. 42. 42 Your Database Your database is your most valuable business asset. You should have your database in an electronic, accessible file, backed up, and secure. It should be updated on a regular basis. The more up to date, detailed and specific your database, the better and the more valuable it is. You should communicate with your database via hard copy and electronic newsletters regularly, as well. Once a month with a hard copy, paper newsletter, and once a week with an e- newsletter. Every person you deal with, be it a paying customer or a contact, or a vendor, supplier, or friend, should be in your database. And they should all opt in so that they can’t report you for spam and have your websites closed down. Give every person you do business with an attractive incentive to opt in to your database, and maintain your database diligently. It’s never too late to build your database. Make sure your newsletters are professional and interesting, with compelling reading, and that they all offer real value in the form of incentives, gifts, coupons, and useful information. If you need content, you can use the articles on my Blog, www.RobinJElliott.com, as long as you do not edit them (they are copyright) and you add my name and website at the beginning of each article. There are over 850 articles on that Blog. How do you get people into your database? Offer them an online incentive to opt in from your website, where they can download a free e book (you can use my Joint Adventures e book if you wish), a report, a Gift Certificate, or a Coupon. If they’re coming into your place of business or your salespeople are calling on them, have them enter their information on a form or give you their business card in return for a special discount or printed Gift Certificate or gift. How do you get other people to offer you valuable, free consultations, services, samples, reports, and even print beautiful Gift Certificates for you to distribute at their own expense? Simple. You approach your favorite jeweler, (do not cold call or ask unknown people), and ask him if he would like more business. If he says he would, ask him if he would be prepared to pay you a reasonable commission on any business you send to him, say 20% off the top. If he agrees, you tell him, “OK, Cecil, this is how it’s going to work. You print one thousand full color Gift Certificates on nice card stock for me, with envelopes, stating that the holder of the Gift Certificate is entitled to a complimentary jewelry cleaning or jewelry evaluation, valued at $50. These Gift Certificates must bear a tracking number, so that you know you must pay me, 42 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  43. 43. 43 on an ongoing basis, 20% of all and any purchases made by that person at any time in the future, and so that I can track which Gift Certificate distributors are bringing in the best results. Here is an agreement that I have created that you must sign. I assure you that these Gift Certificates will only be distributed to the kind of people you would like to have as customers, not to homeless people, drunks, terrorists, or your hated mother-in-law.” When people make contact with you business, you offer them a Gift Certificate in return for entering your database and enjoying your wonderful, regular newsletters that are jam packed with great information and valuable deals. You can have Gift Certificates offering complimentary consultations with lawyers accountants, and chiropractors, Gift Certificates offering a free Home Theater demonstration, interior design estimate, plumbing evaluation, spa treatment, haircut, Kung Fu or Yoga class, or two month gym membership, whichever businesses agree that they want more customers and are prepared to pay commission on them. No cost or risk to you, and each Gift Certificate has the potential of driving net profit income into your business. Guard your database closely, never give it out, and be very careful whom you expose your database to. 43
  44. 44. 44 Cash Flow and Residual Income You want to work once and get paid many times. The best way to illustrate this important point is to talk about a carpet cleaning business. Most carpet cleaners do a good job, and when they’re done they get a check, and Elvis has left the building. No loyalty, no follow-up, no added value, nothing. That’s what I call a “Vending Machine Business” – you put in your money and you get your candy, but you don’t get loyal to the vending machine, send your friends to use it, carry a photo of the vending machine in your wallet, or travel out of your way to purchase from it. Most businesses are like that. Let’s see what a smart carpet cleaning business owner could do to create cash-flow, repeat business, and more profit. Could the carpet cleaner approach you after doing a great job, in this way? “Thank you for using our services, Mr. Elliott. (What a change if we started calling people Mr. and Mrs., Sir and Ma’am, like they do in England? ‘Good morning, Suh!’ Don’t you feel better when you’re called Mr. Smith, especially if your last name is Smith?) I am going to add you to our database so that we can send you regular Gift Certificates and useful information on keeping your carpets looking like new, removing stains, etc. Now, Mr. Elliott, we have a special opportunity for good clients like yourself. To make your life easy and lock us in so that we are always available for emergencies 24/7, you can join our Clean Carpet Club, which is only $35 per month. That entitles you, as a Member, to a complete carpet cleaning every six months, so your carpets will always be immaculate. In addition, we are available 24/7 for emergency cleanup at a reduced fee, and of course you will receive our regular newsletters. Plus, as a Thank You Gesture for signing up, I have Gift Certificates for you valued at $300 right here, and our Home Directory, which includes introductions to Home Service Providers that we personally use, including discounts, special deals, free consultations, and more. Now, I need you to choose which of the Gift Certificates you want for signing up…” He then offers you a choice between six Gift Certificates: Evaluations, samples, freebies, etc., for electrical services, landscaping, plumbing, Home Theater, interior design… and the Directory he spoke about? Advertisers pay to appear in that Directory. And any business resulting from any of the Gift Certificates or the Directory will generate ongoing commissions to the Carpet Cleaner at 100% profit. When you sign up for the monthly deduction, the carpet cleaner has essentially established a regular cash flow situation, and the additional income from his Joint Ventures with all the other suppliers also creates cash flow, of course. 44 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  45. 45. 45 “Oh, Mr. Elliott, I almost forgot! Here are ten Gift Certificates for you give to your friends and associates, offering them a free cleaning of a 10 by 10 foot room in their house. If any of these people sign up for our monthly membership, you will receive a choice of new Gift Certificates valued at $200!” This generates more customers for the carpet cleaner. He can also have the customer complete a check list of services he is looking for, which can them be referred for a commission to the carpet cleaner. The carpet cleaner is looking for ways to sell other services, provided by other people, to the customer, be it furniture, tiling, painting services, window coverings, or flooring. As the carpet cleaner’s list / database grows, he can leverage it by introducing other products and services to his list, and earning commissions (ongoing) on all those resulting sales. Naturally, he will have a website, too, but we will discuss that further on in this book. The way to understand cash flow is to realize that once-off sales are not as good as repeat sales and a back end (a Back End is additional sales by other people to your list, which earn you commissions). Once the carpet cleaner has a regular income from these memberships, he can sell the business for a lot more. To avoid quiet and busy times creating cash flow problems, the carpet cleaner is receiving income from other suppliers that are busy during his quiet times. And those Gift Certificates don’t cost you a cent, because you don’t pay for the printing – that is paid for by the people providing the products and services. Imagine if you sell someone a product or service that you know they are going to buy on a regular monthly basis, having once used it satisfactorily. Why not GIVE them the initial product or service, or make it available at a steep discount, to get them on board? If your cost is $20, but you make a profit of $20 per month every time they buy, why not make a loss by giving then the initial product or service? You recover your loss in two months and then you have regular cash flow! That’s called losing money on the front end and making it back on the back end. Or you might break even on the front end. This is not taking into account all the additional income streams from your Joint Venture partners – the additional products and services you will sell to your customers. The Carpet Cleaner who does this will instantly differentiate himself from his competition, and if he leaves gifts with you, like a brush or a carpet cleaning widget, he will definitely be different and get attention – people love getting free stuff! Your purpose in business is to create multiple, growing 45
  46. 46. 46 income streams @ 100% profit. If he is really smart, he will, as Michael Gerber suggests in the “E Myth”, start working ON his business instead of IN it, and subcontract the carpet cleaning, while expanding on the back end, marketing, and leverage discussed here, so that he spends his time on productive things and not on minimum wage activity. As Paul Getty said, “I would rather earn 1% of the efforts of 100 men, than 100% from my own efforts.” By cutting overhead and increasing income, your bucket fills up. By now you realize that the carpet cleaner makes a lot more money from other service providers and other peoples’ products than he does from cleaning carpets. His carpet cleaning business is merely a “Feeder”. Why is it good for Joint Venture Partners to pay an ONGOING commission? Many people have a problem with this because they don’t understand the value. Think about it: If I send you business that you would never have had, and you pay me every time that person does business with you, perhaps for years, I think of you and your business every time I receive a check from you. I start to rely on the income, budget for it, expect it. If that person that I referred to you stops buying from you, and the check shrinks, what is it that I will probably do? Find more business for you! You have me locked in with a vested interest in your business success. You have me thinking about how I can get you to send me more money, since there is no time, risk or work involved, and it’ all 100% profit to me – easy money! I might call you and ask you what I can do to send you more business, so that you can send me more commissions – what new marketing materials do you have? Do you have a Gift Certificate that I can send out to my database? Can you speak to my people on a conference call? See? I am now helping you expand your business! If I have ten JV income streams at 100% profit, and I only increased each one by 10%, I would DOUBLE my JV income. Makes sense to me! ALL my income is 100% profit, it is all JV income, so I know this works. What if people stop paying you? You call them up and tell them to start paying according to your agreement with them, so that you can send them more business. If they refuse, hand them over to your lawyer. Now you might know that in my previous books and seminars, I suggested that if people stop paying you, or play games with payment, you simply walk away because you’re really not losing anything. I said that because running to a $400 per hour lawyer simply wasn’t worth it, however I now have a top legal firm on retainer for $36 per month! They check all my contact and agreements, I can call them any time, they write letters or make phone calls on my behalf if they deem it necessary, all for $36 per month, and if I am in another province or state 46 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  47. 47. 47 anywhere in North America, they will refer me to a local, top law firm. I am covered – for $36 per month. This service saves me thousands of dollars an makes me thousands of dollars, because I even get paid for referring them - JV! I strongly suggest you use this legal insurance / retainer service – for more information, e mail me robin@dollarmakers.com with your e mail address, name, and telephone number, and “Legal Retainer Service” in the Subject Box of your e mail. Cash flow is essential to all businesses, and 100% profit cash flow is best, that’s why we use Joint Ventures. More information as we go on. This information applies to Network Marketers as well - any business. Here’s the KEY: Think about your customers, care about the people you serve, listen to them. What other products or services do they need? How can you solve their problems and help them live a happier life? How can you be of value to them? What value can you give them (that other people pay for)? And when you help them, get paid by the suppliers of that help. Now, you may be asking, “But tell me, old Bald Boy, what if people have such slim margins in their business that any commissions they offer to pay me are so meager that it’s not worth my while?” Good question! There are MANY ways to reciprocate – they can give out YOUR Gift Certificates, e mail their database about you, refer you, advertise you on their websites and in their ezines… we’re not limited to financial remuneration. In fact, you often make a lot more from a solid referral that becomes a client, because of all your back ends, than a mere commission check. “Your big opportunity may be right where you are now.” ~ Napoleon Hill 47
  48. 48. 48 Getting More Customers Most realtors would love more customers, I’m sure you’d agree. Rika and I went on a whale watching expedition off Northern Vancouver Island, and we saw whales, porpoises, dolphins, eagles – a wonderful trip. In San Francisco, New York, and Victoria, we took city tours and marveled at the scenes. What do you think tourists ask? “What does property cost here? What would a little apartment cost in this beautiful place?” In Hawaii, Cancun, Mauritius, the Florida Keys, Las Vegas, Los Angeles, in the Caribbean, England, wherever we traveled, we always wondered, “What does property cost here?” We can’t be alone. A realtor (real estate agent) should be on every tour bus possible. Why would the tour company not charge realtors to be on all their tours, and even demand a commission on any resulting sales? There are many fish out there, and there are many ways to catch them You can print Gift Certificates offering free consultations, evaluations, books, reports, seminars, conference calls, samples, classes, and other ways to sample or taste your products or services. I’m not talking about discounts, two-for-one deals, or special prices – these should be real value, no obligation, compelling value, enticing offers. What would happen if an expensive restaurant in your area used your Gift Vouchers to differentiate them from the competition? At the end of the meal, the Maitre D’ swoops up to the table, asks you if you enjoyed the meal, then says, “Madame, I have been authorized by the management to present you with a Gift Certificate (which he proudly presents on a silver platter at this time) valued at $100 for a facial at Paul’s Beauty Palace on the High street, with our compliments.” Wow! The restaurant guests tell all their friends, and the lady pops down to your spa for her facial and then becomes a regular client because of the exceptional service and ambiance you provide. And you pay the restaurant a commission on all the business she ever does with you, to motivate them to continue to distribute your Gift Certificates. Could you have ten restaurants, upmarket hairdressers, and clothing boutiques issuing your Gift Certificates? You could also join a Trade / Barter company and have them market your excess capacity, excess inventory, underutilized time and resources for trade dollars that you could use to buy printing, etc., at a massive discount (www.BarterBootcamp.com). The marketing they do costs you nothing at all. You can pay people a commission for staying at home and calling business owners on the telephone to attend your free seminars – only pay for resulting sales. 48 For Free JV podcasts, ebooks and more, visit http://www.DollarMakers.com/
  49. 49. 49 You can arrange for someone with a large database to promote your products and services to their list, via their websites, ezines, e-mail, newsletters, sales force, seminars, or stores, and pay them a commission on resulting sales. This is very effective – no cost or risk – pay only for results. When I trained hairdressing salons to double their profits in two months using Joint Ventures, it took me nine months to get four clients @ $1,000 per month each = $4,000 per month. The owner of the Redken hairdressing product franchise approached me and suggested that if I was to exclusively represent Redken and only train salons that used his product, he would promote me through his sales force. I agreed, and in four days I went from $4,000 per month to $20,000 per month in that profit center. Four days! (Sounds like Woodstock: “Three days, man!”) Redken got their product into 16 new salons, I got to train 16 new salons win/win. The salons trusted Redken, and they didn’t know me, so they followed Redken’s advice and bought my service. A triangulation of trust. That is the power of being endorsed and marketed by a centre of influence to his database. I write an article every month for someone else’s newsletter. It is read by over 2,000 people in hard copy every, single month – great advertising! Doesn’t cost me a cent. Good for me, good for them; win/win, no money, no risk. Why not saunter down to a Trade Show? As you waddle down the isles, you will find that some of those expensive booths have nobody paying them any interest. I’m sure you’ve seen that. The booth is a flop. So you offer to share the booth and pay the miserable, dejected owner a commission on any sales you make. If you find the booth owner drowning his sorrows in the bar, offer to run his booth for him while he gets inebriated, on condition that you can also display your own stuff there. This stuff works; I have done this many times. Share the booth and share your profits. Or just buy the booth from him for a few hundred bucks, and send the owner home to his mama. You can also wait for the day on which the trade show starts, when the commission-only salesperson has close the books, and offer to buy one of the unsold booths for $500 – works every time. I love piggybacking on mailings. There are people sending out thousands of statements, invoices, flyers, and adverts every week and month. Suggest to them that they include your flyer or offer or Gift Certificate in their mailing and offer them a commission on all resulting sales. They can include a letter in which they endorse your service. Use Contingency Advertising as previously discussed. It is very effective, and every advertiser has excess space. 49

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