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An Irresistible Offer

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In the middle of the night I decided to read a little of Secrets of the Millionaire Mind by T. Harv Eker. I picked up the NY Times best-selling book and absently turned to page 123 – “Wealth Principle #11: Rich people choose to get paid based on results. Poor people choose to get paid based on time.”

Now there’s a prescription for a unique positioning of my coaching business! Wouldn’t that be wonderful to be paid for results of the people I coach? This concept will revolutionize coaching. Most people are reluctant to pay money when they have nothing to show for it. And that’s a wonderful guarantee.

Let’s look at numbers of a real-life example: Say I start coaching someone who has zero income in month #1 and I charge her nothing. Then after 4 months she has a gross income of $1,500 per week and a business expense bill of $1,500 per month. Her net income is $4,500 per month. She should be able to afford to pay me $500 per month. That would be 11% of her net or 8% of her gross. For me to earn $1,295/month (my going rate) I would need to help her net $11,800, sustained for 3 months.

Thus the compensation plan would state that if you have no business I will be paid nothing at the outset. Then I’m to be paid 10% of the incremental (since I started coaching her) net earnings averaged over 3 months. The assumption is that we have a QB P&L, B/S, and C/F statement in effect after the gross income reaches $2,500 per month.

Now a naysayer might say that what if the business owner never did her homework and had no financial results? I’d say I need to “fire” her and move on to clients who want to do the work and get the results. After all, what’s a better way to ensure that I’m always working with “raving fans?” And what if they fire me after they start earning the really big money? I’m always only 3 months behind their earnings so it’s not like my pay-for-performance has major lag-time built into it.

Bottom-line, I’d say this concept of pay-for-performance has the potential to be a very powerful “Irresistible Offer.” Thanks, Harv.