Starting from very humble beginnings, they created one simple product to sell.
A 481 page binder, filled with examples, transcripts, resources…and “a lot of lines for notes.”
They sold it for $1500 via advertising in trade magazines. The ads offered a free, 32 page lead-generating report. The report talked about the virtues of their one product and included a simple fax-back form to order.
Selling about thirty of these binders a month, they were generating about $45,000 in income each month…enough income that it was truly transformational to their life.
But there was a problem…each month they had to start over from scratch.
A typical cycle many businesses can relate to – each month having to find new customers – with no guarantee of income coming in.
Even though they were making good money, without an income guarantee they couldn’t help but feel “uncomfortable.”
What would happen if they were unable to work one month?
Flash forward just a few years later and their company, Rich Dealers, has money they can depend on each and every month. Not only that, it’s one of the largest retail automotive ad agencies in the industry…in the top 500 on the INC. 5000 list… and was just named the fourth fastest growing company in Florida.
Today I’ll share how Rich Dealers, Jimmy Vee and Travis Miller, eliminated their “guaranteed income problem” and the stress that came with it…and how you can too.
This isn’t theory or information they read in a book. It comes from working in the trenches and learning the hard way… by doing things that didn’t work, doing things that worked mildly well, and doing things that worked wildly well. Below are tips that have helped them win “wildly” in their business.
Create a “Hero to Hero” business model. Jimmy and Travis were working in what’s often called the “Zero to Hero” business model. Each month they started at zero income, attracted new customers, sold them their product and ended the month as a hero when they sold their quota.
They switched from that model to provide a continuity program that would guarantee income each month. They began offering a coaching program at $500 a month which included their binder. This way if they sold thirty new customers each month, their income would build as the second month meant they had sixty customers paying $500, and the third month they had 45 customers paying $500 and so on. They continued selling the binder separately as well.
Become an Info-Marketing CEO. They needed to have a business that could run, even if they decided not to show up for a month. If you have to show up each month in order to maintain your income, then you are not yet the CEO of your company – you are still a worker bee.
One of the things they did was to set up systems and hire people that could run those systems with Jimmy and Travis there as “quality control” without having to do all the work themselves.
Determine what steps you need to take so that your company can continue to run and produce, even if you don’t show up for a month.
Get out of your own way. Jimmy and Travis said they had to stop making excuses for why they couldn’t do things and shift to pushing themselves to try things outside their comfort zone. Today they say they work hard to never get complacent with what they are doing.
Don’t make yourself the only critical component. One way they fight complacency is by surrounding themselves with people better than them in certain areas of their company. By doing this, they aren’t the only critical part of the business, which means they have to strive to improve themselves in order to keep up.
Don’t be afraid to be controversial. One of the most controversial things Jimmy and Travis do is to not require a contract for their coaching program. In their early days, the average length members would stay was 4-5 months. Today, their average is 21.5 months…and climbing. This controversial business decision helped them figure out the very thing that has made their business such a huge success.
On Tuesday, Dave Dee talked about building your life, not just living it. Building consistent income you can depend on is an important step in that process. It allows you to focus on creating what you want your life to be like instead of constantly focusing on where to find your next client, customer or patient.
For Jimmy and Travis, part of building their life came from reviewing the vision they had for their business. They asked themselves, “Are we going to be two guys in a room doing business? Or are we going to grow a business that really has a major impact in the world that provides income we can depend on?”
What do you do to ensure you have income you can depend on each month? Will you do anything different going forward to create consistent income? Share your answers in the comments below.
P.S. – Get “The 10 Rules to Transforming Your Small Business into an Infinitely More Powerful Direct Response Marketing Business” for FREE. Click here to claim your customer-getting, sales-boosting tactics.