Monday, March 9, 2020

Old-School Cash Leverage Programs

Every business has to have a product or service to be legal.  Simply trading and leveraging money for the purpose of trading and leveraging money is considered a scheme, typically preceded by the adjectives of Ponzi or pyramid.

That said, one does not have to be in love with the associated product or service.  This gets a bit dicey to explain philosophically.  However, let me start here.  The goal of business is profitability.  Not every trinket trader is in love with all of the trinkets he imports from China.  He trades trinkets to make money.  It is a basis for commerce.  Anyone can think of 1000 examples.

I know an Electrical Engineer who sits at his computer all day in a small office at a large corporation.  He does not like what he does.  However, he is paid well for what he does.  He derives income.  That is his only goal in spending eight hours of his life a day doing what he does.

Frankly, at the end of the day, to me (ultimately) what we "sell", or the product or service that legitimizes the businesses we represent are secondary.  Mandatory, but secondary.  If the product or service is "lovable", all the better, but secondary.

The real issue is how money works:  the structure and leverage components.  Primarily, we use subscription and powerline programs (powerlines are characterized by one-up/two-up components).  Both of these structures are Old-School Cash Leverage Programs.  These are simple to understand and explain.

We start with one business.  We grow it.  Then we build and create a portfolio of income streams.  It is smart and strategic.  Things happen in time with strategic benchmarks based on growth.  Nothing is left to chance.  Everything has to make sense on a spreadsheet.

After all, that is how businesses are run and grown.  It minimizes risk and risk-taking.  You need to do your part and a road map will be tailored specifically to your situation.  Ultimately, you need to execute a plan and the Old School Cash Leverage Programs will work for you.

Your Network and Your Net Worth

We build organizations.  The more people in your organization agreeing to financially participate in what we do... the more money you make.  This is your network.  You build a network, by networking... reaching out to people, exposing them to an idea and inviting them to evaluate and participate.

Said differently, business size (in most cases) is directly correlated to the number of people in addition to the value each of these people represents.  Lower numbers mean lower income.  Higher numbers mean higher income.  As such, a $50 program has less yield than a $500 with the same number of people.

However, our model starts people in low ticket programs ($100 and under) and then strategically "upgrade" to higher-level programs (or higher tiers within the same program).

In any case, your net worth is ultimately your network of people who are fully competent and fully committed to a long-term business relationship with you. 

Treat everyone like a lifelong business partner.  Teach this.  Implore this from those you work with.  Establish a grand vision of where life is headed.  Extol possibility and couple it with cheerful accountability.  It is all possible.

Sunday, March 8, 2020

Money Mechanics Matter

The topic of money mechanics deals with how different compensation systems are structured (and) how you get paid for your participation and effort.  I deal with this subject in other posts, however, the important point to recognize is that not all compensation systems are created equal.

In the Social Commerce/Networking space, some make sense and some don't.

Obviously, one of the first variables to consider is how quickly you can get your money back on your initial investment.  Said differently, how soon can you break even?  How many customers or business partners will it take to recoup your money?

Second, what is/are the investment levels?  Is there just one way to get started with just one amount of money?  Or, can you choose the level of investment based on your current means and risk tolerance?  I would submit that multiple options within the same program are preferable to a "my way or the highway" approach.

Third, is it (reasonably) easy to understand?  Is it easily explainable?  Or, how quickly can you wrap your head around how you will be paid?  Here is the deal:  the more straightforward and transparent, the better.  There are some real doozies out there.  Feel confident that we don't associate with them.

The compensation systems of the programs we associate with are straightforward and easily understood.  The Money Mechanics have to make sense.  It has to be a situation for most people that turns a total mystery into the statement "I get it!" very quickly.

If Money Mechanics are dense and obtuse, it simply works against the process and will inhibit your success.

Simple is better.