Leveraged Income

DO THE WORK YOURSELF OR HIRE OTHERS?

After you’ve chosen a good product and are in front of large, growing trends, the next important decision to make in owning your own business is whether you plan to do it all yourself or hire others.

Every business owner runs into the trap of trying to do it all. If you do this, you will eventually run out of the time and/or knowledge to do it all.

The first thought is normally to hire an employee. This is certainly better than trying to do it all yourself. But hiring employees can itself cause business failure. First, you don’t know that the employee you hire will actually work. Second, you don’t know if the employee will earn the company more money than they cost.

In the early stages of a business, the owner very often pays an employee the money needed to advertise and grow the business. The solution is to hire Representatives instead of employees. With Representatives, you only pay them when they actually produce something.

Let’s look at how the real estate industry uses agents instead of employees.

THE ADVANTAGE OF HIRING INDEPENDENT REPRESENTATIVES

A real estate broker hires an agent (not an employee).

The agent sells a home and earns a percentage of the sales price of the home and so does the broker.

Shouldn’t it be that way? The broker trains the agents and provides a place for them to do business.

The critical difference between agents and employees is that agents only get paid when they actually sell something, while employees get paid whether they sell something or not.

If you hire an employee, you pay them whether they sell something or not.

ariix advantage of hiring reps Leveraged Income

THE DISADVANTAGE OF HIRING INDEPENDENT REPRESENTATIVES

	The problem with both employees and agents is, when they want to become brokers (or own their own business), they leave the company and become competitors to the original broker (or business owner) who trained them.
The problem of agents breaking away to become brokers (competitors) is compounded as more and more agents do the same. This is why there are so many different real estate companies today.

THE SOLUTION TO HIRING & TRAINING YOUR COMPETITORS

There is a solution to this problem.

Since the real estate broker trained all his agents, why not allow them to become brokers – in your company?

Instead of continuing to receive a 3% commission, agree to receive less. Teach the agents how to hire other agents and train them.

This would encourage the agents to remain with your company.

You would keep all of your satisfied customers and have a constant source of new business.

IN THIS SCENARIO EVERYONE WINS

LONG-TERM RULE: If you employ others (either as employees or as agents), the only way to retain a great employee (or agent) is to offer them the same amount to gain as you have. If you don’t do this, very soon they will strip you of your knowledge and become your competition!

BEST BUSINESS MODEL STEP ONE

The best business model would “copy” the good parts of the broker/agent arrangement:

FIRST, a sales rep/agent would acquire customers. Obviously, having customers is what creates a consistent income.

BEST BUSINESS MODEL STEP TWO

SECOND, get one agent and teach him or her how to get customers. By doing this, You’re not trying to do it all yourself.

BEST BUSINESS MODEL STEP THREE

THIRD, once your agent can get customers, teach him how to get one new agent and ensure he can train his new agent to get customers.

If you got 20 customers and taught your agent to get 20 customers, you’d now have 40 customers buying your product.

The MAIN issue to understand is that you train another agent how to get customers as well as how to get additional agents that get customers.

They are now building “their own business” within your business. And they have as much to gain as you do.

Training agents to get customers is truly investing your time, instead of spending your time.

A BUSINESS THAT WORKS

What has your in-depth research on network marketing revealed?

Dr. King: It is currently a $30.8 billion industry in the United States, $110 billion world-wide. We have over 15 million independent business agents in the U.S. and more than 57 million around the globe as companies are expanding into Asia, South America and Europe.

What would you say is the current trend in network marketing?

Dr. King: The industry is moving into a wave of professionalism. We are seeing more and more professionals – physicians, dentists, attorneys, CEOs, college professors – going into network marketing.

As a professor of marketing, why do you like network marketing?

Dr. King: There’s no question, based on all of my research, that network marketing is one of the most cost efficient channels in all of the marketing discipline – whether you’re talking about network marketing versus transmission of direct catalogs, or direct mail, or telemarketing or whatever – network marketing continues to be the most effective distribution channel.