[ Pobierz całość w formacie PDF ]

might say, "And if it works out, you can expect a check similar to that every six months forever." Then you say, "What
could you do, Mr.
Mover, with a $47,000 check twice a year for life?" And you don't ask them to think, you tell them. "Well, I suppose
you could pay off some of the debt your moving company has. Or you could run ads every month in every newspaper
in town. Or you could hire two new salespeople. Or you could expand your facilities. Or you could ...
It's important that you instill in the mind of the prospective host or endorser the fact that he or she is going to get most
of the benefit from the proposition. Tell them this is a wonderful way for them to perform a market test to see how
much lever-age they really have with their clients. If you're right, they can do this with other companies, and you'll
even assist them if it works out. If it doesn't, the loss will be yours because you'll be the one who will have funded the
program and extended all the effort. They will benefit either way. And then you give them indemnification. You give
them a written warranty that you will only do great work, and that if there is any problem, you'll make it right.
Remember I said you could use this concept to virtually eliminate the exorbitant costs of "prospecting" and only spend
your time and money on people who are ready to buy. For example, assume you're spending $12,000 to bring in one
hundred clients, and you gross $20,000 in sales from those one hundred clients. Your profit is $8,000. What if
somebody were to give you one hundred new clients from whom you would gross $20,000? These clients wouldn't cost
you any more. Would you be willing to pay that person $10,000 for those clients? Why not? That person just saved
you $12,000 in marketing expenses. You're still $2,000 ahead.
That's what I mean by eliminating your marketing expenses. No, you're not going to get your clients for free. But you
can significantly reduce your marketing expense if you negotiate this type of deal. Furthermore, this kind of
relationship is usually not a one-time deal. The host will be constantly bringing in new clients for you to play off, so
you both benefit from a perpetual stream of income.
What both of you are leveraging takes on significant value. The beneficiary company leverages off what the host
company has built up-the years of existence . . . the hundreds of thou-sands or millions of dollars worth of advertising .
. . the scores of salespeople and employees . . . the hundreds of thousands or millions of dollars worth of capital
invested in equipment, offices, furnishings, and inventory . . . all that the host company has invested in over the years.
You get the benefit of all of this investment for no more than a share of the profits. That's why I always encourage
people who are contemplating being the beneficiary to offer the host the maximum front-end revenue and residual
profits because it's worth a tremendous amount of money to play off all the beneficiary's previous investments.
However, when there are residual sales, you, as the host, want to get the largest percentage of the profit. For example,
you could go to a company and tell them that you'll allow them to market their product or service to your clients. You'll
give them an endorsement and pay all or half of the up-front marketing costs, and you won't take any percentage of the
profits on the first sale. All you want is 25 or 50 percent of the profit from all the residual sales that company makes to
your clients.
This is an enticing offer to the beneficiary company because it allows them to access a whole new group of clients with
little or no up-front marketing expenses. They'll acquire clients they probably wouldn't have been able to get, and all it
costs them is a certain percentage of the profits from future sales.
Benefits to the Host
- 67 -
What are some of the benefits to you as the host? You are making money you otherwise wouldn't have made. You're
generating outside streams of cash flow without any cost of sales or overhead. And you're able to recoup the
investment you've already made in your clients and prospects and all the other assets you've built up in your company
over the years.
These new profit centers will allow you to revalue the marginal net worth of your clients and prospects, thereby
enabling you to allocate more money for advertising and marketing. You'll know that every time you bring in a new
client, you're not only going to make $100 from your own product or service, but you're also going to make $1,000 [ Pobierz całość w formacie PDF ]