12.30.07
Perishable Resources
Smart Joint Venture Brokers understand how lucrative it is to leverage perishable resources. An airplane seat that isn’t sold is wasted. An empty hotel room costs maybe $20. The average visitor to Las Vegas loses $500, so guess what? There are seldom empty hotel rooms! It pays the hotel to give them away! If the back end is properly constructed, it pays you to lose money or break even on the front end. Employees that are not fully productive is a perishable resource, because time is passing. What does it cost to put an extra person into a seminar? Very little. Think about it.
When you’re dealing with intelligent entrepreneurs who understand that they’re in business to make a profit and not sales, it’s a lot easier to Joint Venture with them, so I suggest you work with Members of the DollarMakers Club to save time, money, and frustration. $10 is better than nothing. And if that ten dollars can lead to sales of $200, even better! Here’s what you want to look for: Anything that is wasted if it is not used. That’s a perishable resource. Seats at a concert that are not sold. Booths at a trade show. Underutilized resources. Income from correctly constructed Joint Ventures is 100% margin.
The approach to use is common sense to real business owners. Note: Only approach people on whom you have done due diligence. Don’t go cold calling. Get referred or work with known people. “If I can show you a way to drive more profit to your bottom line, using existing resources, with no cost, risk, or extra time, and I make it all happen, will you share some of that found money with me?” If they agree, put a written agreement in place before you do anything else.
On the day the trade show starts, there are unsold booths. Offer the salesperson a tenth of the price and you might well get them. If someone has a hotel that is not fully booked, show them how to add back end incomes by selling tours, T shirts, shows, limos, all the things the concierge does - he’s an experienced JV broker and usually understands business and money better than the hotel’s General Manager. Really - I was a hotel manager and attended three years of hotel school, and I couldn’t believe how much money the average hotel manager leaves on the table. But then a manager is not an entrepreneur, is he?
Teach restaurants that additional guests earn them 68% if their food cost is 32%. Show them how to build a lucrative database and add JV’s, and share the profit with them. Get paid 20% on additional guests (usually in groups, like Rotary Club meetings or singles club meetings) by the restaurant, and then add back ends, like selling advertising space in the backs of the menus and giving Gift Certificates from other businesses to the restaurant guests, and you get paid a commission on all the resulting sales.
Most businesses don’t create or maintain databases of their clients, seldom communicate with them, and lose all the potential business. A name in a well utilized and leveraged database is worth a complimentary meal, seat, show, seminar, or haircut, especially if there’s no cost involved, wouldn’t you agree? You are surrounded by a multitude of opportunities to leverage perishable resources and make an unlimited amount of money.
Robin J. Elliott www.DollarMakers.com
