A Great Business Philosophy
Solve, Don’t Sell!
When I meet someone, I listen carefully to establish what pain he or she is suffering. It’s usually in one or all of three areas: Finances, Time, and Freedom. I then get the prospective customer to elaborate on his pain, using open-ended questions. I turn the knife in the wound, as it were. How does this situation affect him, personally? What impact does it have on his family? How will it affect his future? In fact, if he doesn’t solve the problem, what will his life look like in two years? What are the consequences of NOT solving his problem?
Now that he realizes he has a problem, and having dwelt on it, is acutely aware of his need to solve it, I have him tell me what his life could be like should he be able to solve his problem: How will he personally feel once this problem has been resolved? What effect will it have on his family and profits? How will it change his future? Give him a glimpse of the rewards he will reap by solving the problem.
Next, I become the solution, or the bridge to his better life, by connecting him with whatever product or service is necessary to solve his problem. When I connect him with the business that solves his problem, I receive an on-going (yes, I said on-going) commission from that business. That income is 100% margin to me, if it is not my own product or service, so I can’t lose. I create value and get paid for it, and I have a happy customer. Whether he buys from me or not doesn’t matter – he is happy and I made money. I solved his problem and was paid for the service.
Link supply and demand and get paid. It’s not about you or your business – it’s about value. Be a good listener, help people to get what they want, and you get rich. Stop telling people about your products and services – they don’t care. They care about their problems and goals, and you need to shut up and listen to them so that you can solve their problems and make money. Selling is old hat, as out of date as a Commodore 64 computer, boring, childish, and naĂŻve. Solving is the way things work these days, and the ideal vehicle is Joint Ventures.
Reciprocate in Many Ways
Most people believe that the only Joint Ventures that will work are those in which the partners reciprocate financially: “I bring you business, and you pay me an on-going commission on all transactions” – however there are multiple other options. Let me share some real-life examples with you.
I set up a successful, year-long Joint Venture with someone who preferred to reciprocate with business referrals. We tracked them all meticulously, and made sure both parties were equally rewarded in terms of qualified referrals. I went a step further, and tracked the accumulated profits from the referrals he sent me. This is what I found: had he paid me the regular commissions, I would have made about $14,000, however by selling my own products and services and adding my back-ends, I made $86,000.
I was approached by a fellow who used to sell expensive, high-quality waterless cookware, which I call pots and pans. He wanted to attend our Bootcamp and offered to pay with a $3,500 set of his “cookware”. IÂ accepted, and Rika and I still use his amazing cookware. And his sales increased dramatically by trading dead inventory for the skills required to create unlimited wealth using Joint Ventures. Win /win.
A dentist client of mine, Kevin, offered a Seattle radio talk-show host complimentary dental services, and suggested, “Don’t pay us, but if you like the service we provide you, please let your listening audience know about it.” Well, Kevin told me that the resulting business they got was worth hundreds of times what the radio personality would have paid them for his dental work.
Trade and Barter companies, like Trade Exchange Canada and Barter Card, enable trade among their members, and if you e mail me I will be happy to send you a Trade Manual with my compliments: robin@dollarmakers.com.
Finally, DollarMakers Joint Venture Club Member hosted a Bocamp in Winnipeg. He told me, “I swapped a Bootcamp ticket for beef!” He had approached a butcher, who said he wanted more cash flow, and the butcher traded beef worth $500 at retail for a seat at the Bootcamp! I love that! This inclusive, win/win, solutions-based approach is what JV’s is all about, and DollarMakers is at the forefront of sharing this wonderful message with people around the world who aspire to prosperity in every area of their lives.
Getting “Buy In” From Your Employees
“I find it difficult to find, motivate, and keep good employees. If only I could find people who are as motivated as I am!”
When you pay people the same amount of money, regardless of their quality of work or level of productivity, you’re trying to run a capitalist business on socialist principles. When you overlook slovenliness, negativity, and bad service instead of punishing it, you are encouraging it.
When you see people creating additional value for your organization without rewarding them in direct proportion to that value, you’re discouraging them.
When you employ anything that breathes because you’re so desperate for workers, you’re setting yourself up for failure and lowering your standards.
When you establish ceilings and limitations on earning potential, you lose the cream of the crop.
Successful, profitable businesses prosper by design, not by default. They create a climate of attraction, motivation, stimulation, and reciprocation. This is so unique and hard to find that it will bring you some fantastic people.
Before you tell me how hard it is to find people because you live in a booming economy like that of Alberta or British Columbia, let me suggest that, if you pay more than your competition, that fails as an excuse. And before you tell me that you can’t afford to pay significantly more than the competition does, let me assure you that you can accomplish that through the use of Joint Ventures. That’s what my company, DollarMakers, does. But this is not about creating more profit through JV’s; it’s about employees.
I once provided some Joint Venture training for an award-winning restaurant. At this restaurant, all the servers had shares in the business and enjoyed a simple profit sharing process as well. Servers were hired and fired by the Servers Committee, and everything was results based. Uniforms, serving times, and menus were determined by the Servers Committee. This was a true capitalist operation, using effective delegation, profit sharing, and common sense. The owner told me, “Robin, I manage by Consequence.” They never had a shortage of job applicants.
Pay people in direct proportion to the value they create – measurable, bottom-line profits should determine individual earnings. No automatic raises. No unions. There should be no cap on the earning potential of anyone. There should be immediate consequences for overstepping the mark. People should be allowed to focus only on their strengths. (Generally, allowing an accountant or a chef into a management position is suicide.) Use personality type testing and give everyone a vested interest in the success of the business, while at the same time tying their income and security to the fortunes, good AND bad, of the business. When business goes down, salaries should decrease in direct proportion, depending on individual input and production, which means simply that an employee who produces exceptional profits can experience an income increase while everyone else’s wages decrease. That’s called capitalism.
Here’s my standard “Job Description: “Whatever it takes, 24/7/365, and we share the fortunes, good and bad.” My entire business is made up of multiple, interlinked Joint Ventures. I actually practice what I preach, and it works.
Putting Your Time Where it Matters
A wise man once said, “If you had a hundred lazy, ineffective, needy, and unprofessional people working for you, you might realize that you would send your time more wisely if you had ten good men who were driven, disciplined, and determined to accomplish their goals.”
Your time is your most valuable resource, and it should be treated as such. Only do what only ypu can do. Delegate, buy the time of others, avoid duplication and other unnecessary tasks, and demand a fair return on your investment. When your working partners regularly do not produce that which they agreed to produce, replace them. Use the technology available, make people come to you for meetings, and avoid a physical meeting unless it is absolutely necessary. Travel less, think more, and insist on results. Hold others accountable or withdraw your time.
Time vampires abound. Those with the biggest mouths usually produce the least. Look at your time investments carefully before committing, and learn that most important word, “NO.” You don’t need to provide explanations. Limit meetings to thirty minutes and train your staff to intervene when necessary. Put a sign above your desk: “My Time Is Worth More than $1,000 per Hour. Waste It At Your Own Peril.” End phone calls as soon as possible; scarcity is valued. “You have exactly ten minutes.” At the end of ten minutes, end the call.
“We had a meeting. I spent my irreplaceable time on you. You didn’t deliver what you promised. Why should I waste more time with you?” Get serious, get tough, and you’ll get rich. The losers that you feel sorry for won’t thank you or help you when you’re losing money. Time IS money. It’s YOUR time; you own it, and you’re not obliged to give it away anymore than you are obliged to give away thousands of dollars. People have to EARN your time by producing results – on time.
Finally, time with your family, a good book, at a lake or beach, or on the ski slopes, is time well spent, and never wasted. When you look back on your life, you will remember how fast it went, how much you missed, and how impossible it is to get back. Spend it wisely – you only have one life. Time IS life.
Small Things Get Big Results
The waitress called me “Mr. Elliott” and “Sir” instead of “Robin”. In place if the usual plebeian, vulgar “you guys” we were referred to as “Mr. and Mrs. Elliott.” And she crumbed the table down and removed the cruet set and utensils before serving the dessert. How refreshing! Walt Disney said, “Do what you do so well that they will want to see it again and bring their friends.”
We tend to think that huge discounts or flamboyant packaging will add value and differentiate us from our competition, whereas small things that usually don’t cost anything can make a huge difference. The drivers of the shuttle service buses to and from the Long Term Parking at Vancouver International Airport used to be the most obnoxious, sullen swine I ever met, certainly not a reflection of what I consider the best airport in the world. Last week, Rika and I were very pleasantly surprised when we received cheerful greetings and sincere smiles from the new drivers, along with help with our bags. It costs nothing to train your employees and get rid of the scumbags, and the return on investment is most attractive.
WestJet crew members tell jokes, sing songs, smile, help, and obviously receive excellent training. They thank us for choosing WestJet; to me, there is no alternative, unless you want obese, unionized flight attendants who treat you like a smelly interruption. When I left my laptop on the plane recently, the WestJet flight attendant came running after me with it right into the Abbotsford terminal. Great attitude. A Thank You note in the mail, the Sears appliance salesman who shows up at my house the night before delivery, on his own time, to make sure all the pipes are properly prepared. Nelson Boswell said, “Here is a simple but powerful rule – always give people more than what they expect to get.”
We went to movies last week. Every employee was friendly and said, “Enjoy the show, folks!” Here’s the thing: when you give great srvice, you feel good about yourself, you attract more business, you sleep better, and leave your competition choking in the dust. People notice the small things, the compliments, the helping hand, the kind gestures, the extra mile, the sincere smiles and eye contact, a little extra care. What goes around comes around. Macy’s motto is, “Be everywhere, do everything, and never fail to astonish the customer.” The world hasn’t change that much.
Prioritising Your Profits
Sometimes, ego, laziness, and fear will interrupt and skew our reasoning when prioritizing our profits. The reason we’re in business is to create the maximum amount of after tax profit in the shortest amount of time, with the least cost and risk. While we all want to do what we enjoy and avoid conflict and work, we can use Joint Ventures, subcontracting, effective delegation, and leverage to create the results we want, if we set things up correctly.
Remaining objective and rational when prioritising and planning our progress is essential. Clearly defining what will create the greatest return on investment, where the optimal back-end is to be found, and the real marginal net value of a customer or Joint Venture demands careful analysis and communication with your team and mentors. Like a jigsaw puzzle, we want all the pieces to fit seamlessly, so that the flow of business is smooth and natural, not forced and stop-start.
Diversifying incomes streams and creating additional back ends with long-term potential is the result of Planning, not Panic. Compromise and quick fixes will undermine your progress, your reputation, and your balance sheet. Remember the 80/20 rules and fearlessly remove the 80% while conscientiously building the 20%. Getting rid of one rat in your organization guarantees that he will takes his rat friends with him.
Reevaluate, change your mind, terminate non-productive activities, JV’s, and people, and constantly adjust. You’re in business to make a profit, not to accommodate parasites and create protected employment for losers. Play the “What If?” game, build in Plan B’s, and have contingency plans in place, including Key Man Insurance and alternative suppliers. Things change. See the Big Picture.
Invest heavily in training and education, but only if you use it. Look for the return on investment. The greatest ROI I ever get is when I invest in training and education, but then I always apply what I learn. If you only have 24 hours a day, it’s because you’re not leveraged or you’re not delegating. Paying someone $100 to make $1,000 is good business. Don’t do minimum wage tasks and only deal with winners who have a proven track record.
Finally, stand back and take a good, hard look at your business, your time, your profits, and the future of your business. If this was someone else’s business, what advice would you give them?
A REAL Win / Win?
Joint Venture Brokers are not glorified salespeople; they’re middlemen, or catalysts. Recently, we endured the usual frustration when approached by a character in Ireland who wished to “JV” with DollarMakers. Before I got onto the conference call, I did due diligence on him, Googled him and his company, and had a good look at his websites. He had a large, successful business.
When he got on the call, he admitted that he had “briefly scanned” our website. Big red flag waving wildly, right there. As the call continued (I hesitate to say, “progressed”), it became obvious that this rascal wanted us to promote his services to all the world, and he even grudgingly agreed to pay us a commission, however when it came to promoting DollarMakers, he got stuck. He was unfamiliar with the proverbial “two-way street”. He was not convinced that “reciprocity” was a good thing. Why in the world would I promote, introduce, or even acknowledge another business service, even though they could undoubtably contribute value to our database, without his reciprocal promotion of my business? The call ended fast.
This is where it actually gets dangerous to play this one-sided and arrogant game: this man in fact insulted me and my business, and I will never, under any circumstances, do business any with him in future, or in any way endorse his business. Instead of creating an ally and a JV partner, he succeed only in creating an enemy. As DollarMakers continues to grow and flourish, we become more and more attractive to potential JV partners. This weasel has effectively excluded us from his selfish an limited little world.
Every JV has to be win/win, not win/lose, and remember that it’s not about what you do now, or how big you are now, but WHO you are, because that determines how big you WILL be. Pride come before the fall. Seek to reciprocate fairly and honorably in your JV’s, and be very selective when choosing your JV partners, and your success is ensured.
How Long Will You Wait?
Someone says, “I’ll get back to you.” You should immediately ask, “When, exactly, will you get back to me?” If they don’t get back to you on that day, follow up right away. Don’t sit around waiting for people.
Someone shows up late for an appointment. If they don’t call to say they’ll be late, LEAVE after 15 minutes. If they do call, and they’re going to be more than twenty minutes late, cancel the appointment.
Someone doesn’t return your e mails or phone calls promptly, but you have established that they did receive the voice mail, message or e mail. The longer you wait, the less control and respect you have.
Someone refuses to make a decision, makes you wait, puts you off. They are controlling and manipulating you, or they are simply too gutless and politically correct to say “No.” Walk away. If they do come back, renegotiate, increase your fee, and punish them for making you wait, in order to re-establish your authority and positioning.
Someone doesn’t produce on time, on a regular basis. You find that you’re always waiting and listening to their lies an excuses. Find a replacement for them, or suffer as they repeat the pattern. Meanwhile, reduce contact, remove as much business and control from them as possible, and create negative consequences for non-performance.
Control your time, business, relationships, and choices carefully. Be in control, and spread your risk.
Robin J. Elliott www.DollarMakers.com
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