The Power of Leverage in Business

January 20th, 2009

We all know there are only 24 hours in a day. We all get those same 24 hours to do as we please with. Now we know that 7-8 of those hours are already spoken for by sleep. So really, for traditional type businesses, you only have around 16 hours a day. Well, this is only true for business opportunities that require your time.

For example, as a chiropractor, you now that you can get through 4 patients in a one hour period. At $50 each, that is about $200/hr. Now, assuming that a chiropractor has his schedule packed, he can make around $1400 a day with an 8 hour day and a lunch break. That sounds like a great income for most people right? But can the chiropractor make any more than $1400 in an 8 hour day of work? No! Not unless he applies a little more leverage into his business, which, requires hiring more chiropractors to work for him. Pay these other chiropractors $30/hr of the $50 and pocket the $20 for the extra hours. Pack the entire day with enough patients for two chiropractors and instead of making only $200/hr he is now making $280/hr. If the supply is there, this would be ideal leverage.

Now, let’s look at a different business model in Direct Sales. Know that Direct Sales pays you directly. When you make a sale, you make the profit right up front. So initially you make money. Let’s say you have a product with a $1000 commission connected to it. Make ten sales in a month and you have yourself a $10,000 monthly income and a 6 figure annual income. But in order for you to do that, you must give 60 sales pitches a week that are approximately 30 minutes in length, market your product and make trips to the bank. All of this takes time right? So you are looking at a 50+ hour work week!

So let’s add leverage to this business model. There are a few ways to do this and you will see that it will significantly increase your profits far beyond that of the chiropractors and most doctors with the same amount of sales volume. Create a system around your product so that others can market it as well. By doing so, you will mentor them and teach them to duplicate your results. In the process, you get their first two sales. So by making 10  sales a month, in a perfect scenario, you would get a minimum of 20 additional sales. This would keep duplicating as those 20 turned over to you their first two sales as well. This is endless! Leverage!

Also, throw in a few higher end products in the mix that end up being add-on sales. By saying add-on sales I mean products that add to your first product! Make these higher ticket items. So let’s say you have a $5,000 and $8,000 commission on these other two products and at minimum, 30% of your customers who purchased your first product end up purchasing your second and third products.

Let’s do the math.

  • Ten sales a month at $1000 equals $120,000 a year. Let’s say this 10 include a few turn-over sales.
  • 30% of those 120 sales will purchase the second product at $5,000 each equaling $180,000.
  • Also, 30% of the 120 will purchase the third product at $8,000 each equaling $288,000.
  • Total = $588,000!

To save on your time, have someone else do the sales pitch for you on one call a day and schedule all of your potential customers to that one call to cut your work hours down to around 20-30 hours a week, maximum! Imagine what your income would be if your conversion from the first product to the second and third increased to just 50%. That is a significant multiple 6 figure increase!

Now if you were wondering how you could make a multiple 6 figure to a 7 figure income working just 20 hours a week, you now know! But how many of you, even though this is all laid out for you, will shrug your shoulders and stay with what is comfortable to you? How many of you will settle for a paycheck or an 80 hour work week?

The answer: Almost all of you!

A Mobile Home Based Business

December 12th, 2008

When speaking of a Home Based Business, the words “Home Based” are a little misleading. Sure, just having the privilege of working from home over having to go to a job in some other location is enough for most people. I mean, when you work from home you are only so many steps from your refrigerator, so many steps from your bathroom and at home with your family! You will never miss out on anything right?

Well what happens when you have a family event in the middle of the week? What if your family wants to go visit the grandparents for the weekend or maybe even the entire week? What then? You are “home based” right?

I guess it really depends on what kind of Home Based Business you are involved in. Let’s do some reviews of  home based businesses that are more “mobile” than others.

Ebay – Now I am not an Ebay power seller nor will I ever be. Ebay can definitely be a home based business but requires handling and shipping of products, unless of course you do some kind of wholesale distribution. You can set it up to have the manufacturers ship the products for you. All you do is take the orders and collect the profits. But for the most part, an ebay business is “home based.”

Day Care – I only have a few words for this one…..50 kids that are not your own! Definitely “home based!”

Avon, Arbonne, etc – I don’t know much about these businesses and don’t pretend to know, but my mother used to be involved in both of these and she spent most of her time having “make-up” parties at her home, hitting up family and friends, making local visits and hand delivering the product to her customers. So from my experience, “home based.”

MLM/Network Marketing – When you think of a Home Based Business, this is usually the category to search in. These are primarily marketing businesses connected to a wholesale company. Now most MLM companies that I have known require you to pre-purchase your product. Thus, you have a garage full of stuff. On the other hand, there are some MLM opportunities where the wholesale company ships the product direct to your customer. Most of your marketing is done on the internet or over the phone and can be done Internationally. So depending on the opportunity, “mobile!”

Direct Sales – Most direct sales home based businesses have a wholesale company that ships the product for you. You are never required to pre-purchase or warehouse any product. My pick is definitely with Direct Sales mainly because I get paid first. The customer pays me directly, I then pay the wholesale amount to the wholesale company, then they deal with the shipping and customer service. In direct sales, most of your marketing is done online, in newspapers, magazines, etc and can all be done with a phone and a laptop! Direct Sales in brilliant, much more lucrative and definitely “mobile!”

There you have it. Finding a Home Based Business that is mobile is fairly simple and will allow you to experience true freedom to come and go as you please. Take your business with you on vacation, a work trip, while attending a conference, attending family events or where ever it is you decide to go. It’s a beautiful thing when you can take your cash machine with you!

Direct Sales Association

November 1st, 2008

At times I get asked if we are a member of the Direct Sales Association.  I’m sure there are good reasons
for some companies to join….and some companies NOT to join. A colleague of mine sent this to me in an email.

But, right now, I’m glad we’re not a member.

Check out this quote from CNN/Money.com:

About 15 million Americans work in direct marketing, doing such things as
going door to door or hosting product “parties,” according to the Direct Selling
Association (DSA), an industry trade group. DSA spokeswoman Amy Robinson said industry hiring, which declined
1.3% in 2007 and was weak in the first half of the year, has picked up in recent
months – just as the full impact of the financial crisis started to be felt. “This is
what we’re hearing from several of our members,” she said. Direct selling has a low start-up costs, typically between $100 to $200 for a
starter kit. According to DSA, the average yearly income from a direct selling
job is $2,400, or about $200 a month.

“Direct selling isn’t a full-time job,” Robinson said. “It gives you extra money
to go on vacation, get the refrigerator fixed or buy Christmas gifts. It’s about
getting some extra money in the pocket.”

====

Amazing.

CNN/Money decides to do a feature on the direct sales industry and the
best they can say is that this industry is designed to help people fix their
appliances?

Sheesh.  How embarrassing.  It’s the best evidence that the DSA is completely
disconnected from what people are looking for from a home business.

Because, I don’t know about you guys….but most of my prospects want $100k+.
They’re not looking for $200 a month to “fix their refrigerator”.

How to create Cash on Demand

February 11th, 2008

We live in a time in which there has never been a greater opportunity to create wealth! I hear people speak about how the economy is slow right now and that things just aren’t going good for them. That is because they believe that. They believe the economy is bad and thus, their results will never be as good as they would have been. There are so many people, in this business opportunity and many many other opportunities that are making a ton of money.

How to create cash on demand

Every morning I have the privilege of listening to a leader in the Direct Sales industry in a 15 minute “wake-up” call. Today, he brought the term up called “Cash on Demand.” Now when I think of cash on demand I think of going to the ATM and getting cash from my bank account. But what if you didn’t have to take that out of your bank account? You could just decide to make $1,000, $5,000, or even $14,000 just by decided to work your business and deposit what you don’t use into your account! That is the kind of cash on demand that I am speaking of. Money that just comes as a result of your decision to play big in your own business.

This income opportunity works just like that. When you make a sale today, you make the money today. Whether it’s the front row tickets at the Suns games you desire, or a week to Miami or Cancun, a diamond ring for your wife on Valentines day, or just a little extra cash, then just work your business another hour today. I mean, a 4 hour work day working from home has got to be pretty rough.

OR, you could always go get another JOB! I sure trust that your level of thinking is beyond trading time for money. The best thing you could do for you and your family, is to stop going to work! Start a profitable business opportunity that can create the kind of cash on demand you know you deserve. Don’t wait around for the crumbs to fall from the table when you can have the whole cake!

How to make money in a Home Based Business!

February 8th, 2008

The first bit of advice that I can give when starting a home based business is to choose a business opportunity in Direct Sales. Stay away from the MLM’s of Network Marketing if it is true wealth that you seek. I know plenty of people that have worked their tails off in an MLM, become a top ranking earner but yet still have to have two or three other businesses or jobs to make their bills. They still struggle. Many people that I work along side with in this home based business have come directly from an MLM because they weren’t seeing the results they were looking for. Is it possible to make money with them? Yes it is, but it will take you a heck of a lot longer to do it.

The reason I suggest Direct Sales is due to the compensation plan. Now there are many different Direct Sales business opportunities out there with many different compensation plans, choose the one that supports your financial goals. The compensation plan I am accustomed to pays me first, and then the wholesale company. I collect payment for the product and then forward the company their share. My keep is about 60% of the total cost of the product. I don’t know of any business, retail or wholesale, that has those kind of profits. That is huge!

Most of the time, with a Direct Sales Home based business, your commissions are going to be fairly large. I know with most MLM companies you get $20 here and $30 there for the sale of a product. Try $1,000 here and $14,000 there for a change. If you are looking to create some true wealth then I don’t know of any other Home Based Business that can provide the level of income this one can.

Do your due diligence when choosing a Home Based Business. Make sure it has a track history of success and talk with someone who is doing it. Jump in with them as a student. Follow the system they have prepared for you and whatever you do, do not try to re-invent the wheel, so to speak. The system is there for a reason….for your success. If it just so happens that you are looking into my Home Based Business, I look forward working with you. With just a little bit of capitol at start-up, you can blow your bank account through the roof.

How to Make Money working Part-time from home!

January 25th, 2008

There are literally thousands of ways for anyone, with little or no experience, to make money from home. The only difference between all these different opportunities is of course, the business model, products, and most important, how much money you make. So depending on what your financial goals are, there are all types and kinds of businesses to fit your bugdet and desired income. There are some that work better than others and others that just don’t work very well at all. It is imperative that you choose a business that has a proven track history of success, testimonials from individuals who have succeeded and continue to succeed, and a stand-alone product. If the product cannot hold it’s value in the marketplace, then the opportunity won’t be around for long. For example, I have seen opportunities that are marketing a product that anyone can buy at Walmart, and for less!

When choosing an income opportunity, decide how much you would like to make. There are certain business opportunities that are only looking for very ambitious entrepreneurs. That is what I look for in someone when taking them on as a student. They have to have a strong desire to succeed, lofty financial goals, and the ability to be coachable and trainable. Other opportunities may take anyone who wants to get started.

If you would like to make a few hundred a month, you may want to look into typing from home, data entry or an MLM company. Most of those opportunities have very little start-up and can make you a few extra bucks. On the other hand, if you are looking for real wealth generation, creating time freedom, retiring yourself from your job, or starting a business to replace your current 6 figure income, direct sales is what you are looking for.

Now, I don’t have any recommendations for anyone who is looking to make an extra couple hundred a month. I do have a suggestion for someone who is looking to become wealthy. I am very successful at what I do, which is teaching entrepreneur minded people a very simple and lucrative system. I assist those who are capable of making quick and intelligent decisions to dupicate my results, or in other words, follow the system. It’s a lot like a franchise, plug and play! I am one of the top income earners in this business opportunity and also in all of direct sales and am more than qualified to lead you to success.

So there you have it! Find what you are looking for, don’t hesitate to get started, and make it happen. Your goals are only one decision away.

Next Page »