Which are you right now?

I worked with a real estate company to help them increase sales and saw the “tortoise and the hare” fable come to life right before my eyes. One of the salespeople (the tortoise) was slow, not highly skilled, not a great communicator and she had a long commute to work, which cut into her flexibility. But she was steady, consistent, reliable, very enthusiastic and totally focused and committed to reaching her goals. Some of the other “hare” salespeople tended to be highly skilled and polished, but they were often erratic and unfocused. They worked in fits and starts. They got side-tracked. The tortoise beat them every single month. The results I see a salesperson accomplishing are in direct proportion to his or her consistency and focus.

The “Magic” Formula

The formula for Momentum is p=mv where p is momentum, m is mass and v is velocity. If we were to translate that into sales, momentum would be branding and results, m would be the amount of effort, action and focus and v would be enthusiasm and belief or:

Your Brand’s Momentum = Your effort, action and focus + Your enthusiasm and belief

It’s the Accumulation of Great Action

Branding and momentum is not achieved overnight. It takes consistent sowing and nurturing to build a brand, whether that brand is you, your website, your product or your business. Imagine someone pushing a car up a hill. As they push, they gain momentum and it gets easier. If they stop and let go of the car, it starts rolling back down the hill! Momentum is a vector. That simply means that momentum is a quantity that has a magnitude, or size, and a direction.

Are you headed in the best direction?

Some businesses have momentum in the wrong direction, and they require a turn-around expert to deal with them. We need to be sure that our efforts are taking us in the right direction and we need to know why we want to move in that direction.

Use this Reality Check

• It’s good to stand back and take along, hard look at your business.
• Re-evaluate your goals.
• Look at your activity.  Is it building momentum and the branding you want?
• Are your sure you’re creating the right image?
• Most of all, focus and consistency should be built into all your systems.

As Michael Gerber tells us in the E Myth, work ON your business, not IN it. And continually adjust and improve upon every aspect of it. Concentrated effort and persistence is the mark of a winner. Once you gain positive momentum in the right direction, make sure you continue to feed the fire, and the sky’s the limit.

How much should you make from a Joint Venture?

• 10%? 20%? 50%?
• Should it be of the net or gross profit or off the top?
• How do you decide?

This is an important consideration, especially for people who are used to paying peanuts and those who are used to accepting a few crumbs. Entrepreneurs who understand business and profit are more likely to pay and demand reasonable commissions.

Look at the Profit Margin & Be Generous

For example, when people attend a DollarMakers Joint Venture Broker Bootcamp, I pay the referring Members up to 50% in commissions! My cost of putting an extra chair into a Bootcamp and a few extra cups of coffee and donuts, plus a workbook, is negligible. I can afford to be generous. My DollarMakers Joint Venture Forum Members earn thousands in commissions every month. But if I was selling computer hardware, with a profit of around 6%, I could not afford to pay such a generous commission. Large profit margins demand high commissions; real business people understand that. And there are other ways to reciprocate, other than financially – but that’s a subject for another blog or the Bootcamp.

Avoid Ridiculous Offers Like This

A realtor approached me with the typical offer: “Send me a buyer or a seller and I will pay you $75 for a completed sale.” So you get $7,000 and you expect me to accept $75? Are you kidding me? I’ll take 50% of the realtor’s commission or no deal. Am I being greedy? No – I pay 50% and so can they. If you don’t ask, you won’t get. Desperate realtors will not agree to this, but the smart realtor who has built in multiple Joint Venture back end sales into every transaction will jump at the opportunity.

50% of something is better than 100% of nothing. It’s business they would never have had. When you show them how much business that one deal can generate over the years and the Marginal Net Worth of a customer, they might see the light.

A Smart Business Owner Knows

Most entrepreneurs don’t understand their acquisition cost, attrition rate, profit margins, back end value or Joint Ventures. That’s why they feel they have to grab every up front cent they can. When they understand the big picture and they want to create increasing, multiple streams of passive income, they will become generous in their referral fees and commissions.

My Standard

I personally don’t accept anything less than 20%, but it all depends on the big picture, margins, reciprocal consideration and value. Remember the big picture and demand to be paid a fair amount or walk away. There are many opportunities out there but very few people who understand Joint Ventures, so you can call the shots.

A client of mine who owned a chain of restaurants radically improved his business when we tested his employees for the personality styles and re-organized the business. We all have characteristics of all the four major personality styles, however one is normally dominant. In business, it’s important to acknowledge our strengths and leverage them, and to find others to supplement our weaknesses. There’s no right or wrong character type. Here’s a quick overview.

The High D - Dominant style

Dominant style (minority of people, hardest to find) is bottom-line andresults oriented, impatient, sometimes tactless, driven and extroverted, with weaknesses in details. Major fear: being taken advantage of / ripped off. Good closers, great pioneers. Need the numbers and systems guys.

The High I - Influencing style

Influencing style is an extrovert, “party animal”, great at meeting people and starting relationships, popular, good opener, weakness is details and time management. Major fear: being embarrassed in public. Needs closers and numbers guys.

The High C - Cautious style

Cautious style is introverted, loves details, numbers and systems more than people, excellent numbers guys and accountants, computer experts, analyzers. Weakness is over analysis; fear is criticism of their work. Needs the extravert’s and the drivers.

The High S - Steady style

Steady style (majority of people) is an introvert, loyal, team player, family type, great systems and support person, needs security and long term relationships, fears risk, conflict and change. Needs others to make things happen and to create change and to take unpopular action when necessary.

Optimizing the Strengths of the Styles

This is a simplistic approach, but understanding our strengths and weaknesses and allowing people to do what they’re good at, while avoiding tasks that they’re weak at, is simply smart business sense. For technical sales we use High C’s and S’s. Ideal salespeople are normally High D’s with secondary I’s. One wouldn’t an accountant who is a High D, or a High S to launch a new business. You don’t want a High C to be the host at a cocktail party and we don’t want two High I’s behind a reception desk because they’ll talk all day!

Using personality style analysis has helped many of my clients to be better entrepreneurs and hire the appropriate people. Self knowledge is essential to success. I use the DISC style analysis – there are many others available, including the excellent Myers-Briggs Type Indicator.

Sales Tip

When selling to:

• High D’s - Talk results and ROI and close early and hard.
• High I’s - Build relationship, have fun and close early.
• High C’s - Provide copious details and proof and take time to close.
• High S’s - Prove that the support and relationships will be in place long after the sale is made and close slowly.

Management Tip

When Managing:

• High D’s - Give them lots of control and clear objectives and do what you say you will do.
  High I’s - Reward them publicly, make them look good and watch their time allocation.
• High C’s - Be specific, don’t rush them, and compliment their work (catch them doing something right), set time goals.
• High S’s - Make changes slowly, provide lots of security, share long-term plans.

When you have a service or a product that is bought many times over, it makes sense to pay to get a new customer. For example:

• I showed a hair salon owner client of mine how to invite high-end potential clients for a hair free cut and blow wave. His cost was negligible; however 82% of them were so impressed with the quality of his work that they became regular customers.
• A Tree Surgeon may offer a free service in order to obtain long-term customers.
• An accountant or lawyer may offer a free initial consultation.

Try These Excellent Money Making JVs

Combine the above with a Joint Venture and you can create the opportunity to access a large base of potential customers, especially if you have a consumable product.

• If your research and experience shows that most people who try your product go on to consume it on a regular basis over a period of time, why not ask JV partners to advertise your product and keep 100% of the first sale income for their trouble?
• Or they might want to give it away to their clients as a gesture of thanks for loyal patronage.

The clients who like it can be directed to make all future purchases from you.

A Little Upfront Profits You Greatly in the Long Run

Smart coffee shop owners can target business people who work in the area with an offer of three free cups of coffee. The prospects will get used to coming in to the shop and probably buy muffins or sandwiches anyway, and if the food and service is really good they could very well become regulars. Three cups of coffee costs about 60 cents. What is your profit on a sandwich?

The Law of Reciprocity works.

When most people get something for nothing, accompanied by excellent packaging, friendly service and a good product, they feel obliged to reciprocate. What is the marginal net worth or lifetime value of a customer to you? Being generous and allowing them to taste and experience your products and services at no cost is a smart marketing strategy. People whom you would never have met will have a reason to try your products and services.

I was approached by a man who had unsuccessfully been trying to sell his franchises for four years. We looked at what the market really, really wanted and then doubled the price of the franchise and added a free trip for two to Disneyworld. I sold all the franchises in four months. When we added a free television set for anyone who bought a house from us, my wife, Rika, and I sold more houses.

People Want to Play

Why do they have conventions in Las Vegas instead of some unknown, small town? Because people want to play. They want an excuse to buy toys and have fun. Instead of thinking about what YOU want all the time, think about what your prospects want. Instead of hidden costs, try obvious perks. Trips, toys and trinkets are proven to work, especially when there’s a choice. People don’t want points or money or discounts as much as they want toys.

Justify Fun & They’ll Buy It

A man wants to buy a PDA. His wife says he should rather pay down some debt or buy a new refrigerator. He is then offered the opportunity to attend one of two seminars – one is for $800 and the other one costs $1500 but includes a “free” PDA. Guess which seminar he will attend. Some people need to justify toys and fun and when you give them the opportunity to do so, they’ll grab it.

Try This

Try adding a digital camera to your product or service and increase the cost of the product or service by the price of the camera, and see what happens. Give your customers an excuse to have fun.

• “Belinda, I know sales are down and I need to clean the garage out, but you know I have to attend that sales convention in Vegas and the river rafting “team building” will really help our sales.”
• “Bob, I know the kids are sick and you’re busy, but you’re just going to have to play Mom for a week while I take my sales team down to Hawaii for our convention. I need to train them up to increase sales and the spa treatments will help us bond.”

“Free” Gift

Free gifts also work really well. My friend buys a Mercedes from the same dealership every time because they always send his wife a huge bunch of yellow roses. Get creative and think about giving people a great excuse to buy from you.

As a business owner, you’re probably inundated with advertising offers and salespeople who want your money to advertise on billboards , radio and television, in newspapers and magazines. These salespeople promise massive exposure and hint at lucrative results and return on your investment. But you’re concerned about the risk… and as well you should be. A lot of advertising simply won’t work for you.

The good news is that there is an alternative.

The advertisers have space available and it costs them very little. That’s why they’re trying to sell it. I was approached by a well-known national business magazine to advertise my marketing seminars.

Here’s what I did. (I always talk with the Decision Maker, not the salesperson, who only wants a commission):

Robin: “Tell me honestly: for me to advertise in your magazine, I will need to sign up at least 50 people per seminar, per city. Then I will make a profit and be able to pay for your adverts. I know you can’t guarantee anything, but, if you were me, would you go ahead with this advertising?”

Magazine: “Oh, yes, no question about it, Robin – I would write out a check right now.”

Robin: “What I’d like to do is to pay you DOUBLE for this advertisement. You’re being
honest with me, right?”

Magazine: “Of course, but why pay me double what I’m asking?”

Robin: “You place the adverts, people respond to you (so you have full control) and you send me the replies. When they pay and sign up for the seminars, I will pay you $X per sign-up. That way, if I reach the target which you have assured me is a very reasonable expectation, you get paid double. When can we start?”

You will have worked out the numbers and calculated how much you could comfortably afford to pay them per sale.

This is called Contingency Advertising.

They assured you that they would take the advertising investment risk if they were you, so it is logical that they should take the risk themselves. After all, they do mean what they say, don’t they?

Pay for results, not promises. Remove the risk – let the advertiser take the risk.

Naturally, not every advertiser will do this, but it’s a numbers game. Ask enough advertisers and you’ll get a few takers. I have done this numerous times. When the ads didn’t work, I walked away with free exposure. When they did work, we all did well.

“Successful people ask better questions, and as a result, they get better answers.”
- Anthony Robbins

There are only two types of questions: Those that get negative or negligible results, and those that get great results. What questions are you asking yourself and your associates, employees and customers that can result in a better bottom line? What questions will reduce customer attrition, improve loyalty and profits and motivate the people you work with?

Design the Right Questions

• The answers to the questions we ask should result in answers that inspire, motivate and initiate innovation and positive action.
• They should encourage, cheer, challenge, energize and drive.
• The more specific the question, the more specific the answers… And the more specific the answers, the better. Specific is terrific.

By designing the right questions to ask those involved in our business, we direct the business to greater success and focus everyone on the goals and objectives for which we have taken responsibility. When you ask the right question, you create an answer that begets a success strategy.

Try Asking These for a Self Check:

1. “Which three things can we do to increase the amount of people coming into the store by 5% without any cost or risk to us?”
2. “How can I pay for results instead of promises when it comes to advertising?”
3. “Who do we need to work with in a Joint Venture to double the amount of prospects we are currently exposed to?”
4. “How can we create three new streams of increasing, passive income?”
5. “How can we benefit from someone else’s advertising and marketing activities?”
6. “What can we do to double the value we offer our clients, without increasing our cost of sales?”
7. “How can we get customers to increase the amount of times they visit our business by 30%?”
8. “How can we reactivate 40% of our inactive customers?”
9. “How can we create back end sales without increasing our overhead or the time it takes to sell the back end?”

Sales Tip

Learn to ask questions that result in a buy. “O.K., Bill, I’m going to charge you card now for the basic Widget. Now shall I add the Blue Squink for $100 as well as the Rutten for another $800, or shall I just add the Blue Squink?” The answer should be, “Sure, add both”, or, at worst, he says, “Oh, just the Blue Squink for now.” Either way, you have upsold him.

Management Tip

Management questions can help or hurt. Ask, “What could I have done to help you achieve even more sales?” “You’re really at the rock face, Candy. What do you suggest we do to improve customer service even more?” “Bobby, I want to pay you a higher commission. What can we do to ensure a higher transaction amount per sale?”

We are all leaders; in our families, churches, temples, lodges, clubs, businesses and fraternal organizations.

Manager vs. Leader

Have you ever heard of a Cult Manager? What about a Religious Manager. Of course not!  Yet, where have we ever seen more loyalty, commitment and blind obedience? They’re leaders and there’s a huge difference between management and leadership. “Semantics”, you say. Well, when I went to Hotel School and was taught how to be a Hotel Manager I found that I had to become a Leader in order to gain the loyalty and commitment of my staff.

How I Created Loyalty as My Staff Tested Me

When I first arrived to work as a manager in a hotel in Rhodesia, now Zimbabwe, the staff did the usual hotel staff things to test me. The cashier would mix up the cash register, and see if I could sort out the problem. The night chefs would stay home, and see if I could handle the kitchen at night and prepare the breakfast. I had to prove myself. How does a manager cope with that, as opposed to a leader?

I was called in to a meeting of my management peers and they told me to fire a certain Functions Manager. He was a rebel and no good, they said. Lazy. Obstinate. Get rid of him!

His name was Oral and as I watched him at work I saw his staff of waiters set up the conferences and do all the work perfectly while he sat outside, smoking.

I called Oral into my office and fired him. Then I said, “Oral, I’ve done what everyone here wanted me to do. I fired you. Now, I’m rehiring you on my terms. Here are my terms: You can sit outside and smoke all day. You never have to enter the hotel. As long as the job gets done to my satisfaction, I’m happy. If not, we will talk.   How’s that?”  Oral beamed.

He thanked me profusely. He was happy. He did a great job. I was happy. And one day he saved me from being badly beaten up. Oral, you see, was a natural leader. He understood leadership.  Suffice is to say that after a while I had a loyal following instead of an obedient staff.

A Leader Understands

A leader understands that she is leading personalities with value systems, goals, fears, hopes and dreams. She knows that she can get people to work 24/7/365 when she pushes the right buttons. Never run, raise his voice or panic.

Creating Real Motivation

When I was 17 I was drafted into the army. I saw what leadership was and I saw what psychopaths did. The psychopathic, racist South African army officers got people to do things by force. They achieved very little. The true leaders in the army got a lot more done, without fear, manipulation or force. They got soldiers volunteering for things. When your people are motivated and have a vision and a goal, they will achieve their goals and your goals together. Without pay, if necessary. Financial rewards and incentives are not the most powerful there are.

Questions You Should Ask the People You Intend to Lead:

1. What is your greatest fear and your greatest dream? Why is that your fear? Why is that your dream?
2. If you had a million dollars and lots of time and energy, what would you be doing right now?
3. What feelings do you want to experience, and what feelings do you want to avoid in your life?
4. What’s the best book/movie you ever read/saw?
5. What are you most proud of about yourself? What is you greatest skill? What do you do best?
6. What are you weakest at?
7. If you could have any job, what would it be, and why?
8. What is your greatest worry?
9. How do you feel about…?
10. What would you change about this business/organization?

Ask open ended questions; draw them out. “Tell me more? What do you mean by that, exactly? Why do you say that? And? Yes?”

Characteristic of a Phenomenal Leader

The true leader knows that she has to know a lot about the people she wants to lead.

• Empathize and care.
• Show them how to measure their progress.
• Treat them fairly and be consistent in how you lead.  Regularity, honesty and consistency is important.
• And there must be clear guidelines, consequences and reasons for what happens. Everyone must understand why they are to do what they do, what the outcome is supposed to be, the consequences for failing to do the right thing and the BIG PICTURE. The vision, the overall strategy, should be understood by everyone concerned.
• Most of all, each team member should know that, by reaching the company or organization’s goals, they will reach their personal goals as well. They should have a vested interest in the success of the venture. This is vitally important.

Mortimer Adler was quoted in Time Magazine in 1974 as saying, “In Aristotelian terms, the good leader must have ethos, pathos and logos. The ethos is his moral character, the source of his ability to persuade. The pathos is his ability to touch feelings, to move people emotionally. The logos is his ability to give reasons for an action, to move people intellectually.”

Very few managers know how to lead. It’s never too late to change. Leaders are firm, flexible, value-driven and honest. They have Magnificent Obsessions, driving goals and clear action plans. Their followers feel loved, secure, cared for and lucky. Together, we can do amazing things.