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.

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