There are many streams of potential earnings
The essential element is you get paid for doing Work and for those operating at Management Level – Overides on the Consultants for whom you have responsibilities – which could include provision of:
- Office Services
- Technical Assistance
- Tax Planning & Asset Protection
Where there are more than one person involved in generating Revenue Partners share the revenue according to agreements reached between themselves
General Business Model Percentages
Each Partner is Responsible for their own expenses – unless otherwise negotiated with other Partners
From a Revenue Receipts Base of 100 – the following distributions are made:
- Managers – 50%
- Associates – 40% (Paid by Managers – who retain an Overide of 10%)
- Consultants – 30% (Paid by Managers – who retain an Overide of 20%)
- The Organization – 29%
- Provision for Corporation Tax – 21%
Potential Gross Earnings of our Organization from Cash Flow Management & Marketing
1. Helping Business Owners grow revenue – our share might might be 10% to 30% of the results we produce – which as a minimum expectation is at least $100,000 – yielding us $30,000
Qualifying Clients to take on can significantly improve results for clients and produce more substantial earnings for ourselves:
While in most instances we can help clients increase their Revenue by $100,000 there is no need to stop there. After taking our share – usually 30%, there would $70,000 for the client – which should be reinvested back in to more marketing. With a multiplier of 3 to 5 (say 4).
The second round of marketing could produce $280,000 of extra revenue. Deduct our 30% ($84,000) the Client retains close to $200,000 (which we would happily round up for them to leave us with $80,000).
It should not take Einstein to recognize the value for the client (& ourselves) of ploughing that $200,000 back in to more marketing in order to increase revenue further by $800,000; In which case we should receive $240,000
If you add the 3 rounds of marketing expenditures the overall Revenue increase amounts to over a Million Dollars – rewarding us handsomely.
As there is a time lag from when a new marketing campaign begins and when the full force is reflected in Revenue increase accept the possibility that the third round of marketing and its results take place in the year subsequent to the first round in year one.
Thus our expected earnings share in the first year might be $30,000 + $84,000 totalling $114,000. Calculate what your personal share would be from each of your clients (30% or 50% of that) if you elect to start with us as?
- A Consultant – $34,200
- A Manager – $57,000
Each Partner is expected to take on 20 clients a year (less than 2 a month); with the possibility of earnings for the Organization exceeding $2,280,000 – generated by you in your first year.
Determine year 1 earnings of a Consultant and a Manager from a total of 20 clients?
Year 2 earnings from New Clients that year could be expected to be roughly the same as year 1. However, now comes an exciting aspect.
Our earnings year 2 from Clients originated the year before should be far greater as you helped clients build a mountain of Cash to put in to their marketing programs. Assume each of your 20 clients has the additional $200,000 going towards their second year’s marketing – and anticipating similar results for each of the 20 clients – Client Revenue increases by $800,000 – Our share should be $240,000 times 20 clients; our Group’s own gross earnings just from those clients might be close to the $4,800,000 as calculated above from the third round of additional marketing.
Calculate your personal earnings *(as a Consultant & Manager – for comparison) from continuing clients and what you expect to derive from New Clients in year 2. What are the numbers you came up with? Add the 2 figures to see your Gross Personal Earnings for year 2?
Clearly the greater personally generated earnings achievable by Managers exceeds what a Consultant might enjoy – simply because their share of our receipts is much higher (50% versus 30%).
A Managers’ gross earnings can further eclipse that of a Consultant because in addition to what they make from their own clients they are eligible to receive overides on Consultants they manage.
It is expected that a Manager recruits, trains, assists and manages 5 new Consultants each year – building a substantial business with a large team over 5 years. (What aggregated gross earnings might result within 5 years of business development?)
Before reading further – Be prepared to tell our interviewer: At what level would you like to start out with us – Consultant or Manager? (Consultants can grade up to Associate status once they take on team building responsibiltes – no one starts as an Associate).
Relevant as an adliunct to helping Clients with Revenue Growth is our Remuneration & Retirement Planning Program – referred to as 401KLEVER
When Partners follow our guidelines not only will it produce its own earnings but it also filters in to our Business Growth Program to add supplementary cash flow to a Client’s marketing programs (which enhances earnings potential for us).
Note: With the Organization Provision for Tax it is possible to distribute a share of earnings to Partners After Tax.
Which significantly improves your financial position above what you would otherwise net if you shouldered the tax burden
Apart from when you recruit a Consultant on whom you receive Overides – Partners are entitled to negotiate directly for a share of the new Partner’s earnings, up to a maximum of 10% of their actual receipts
Payment of the 10% is made directly by the Partner, not by the Organization
A Consultant who introduces another Consultant can get 10% of their total earnings – relatively easy to calculate.
However if you introduce a Manager 10% of their Earnings should include their Personally generated receipts plus overrides on all the consultants they manage, the 10% they might be receiving from other Managers whom they introduced and any Consultants whom they introduced but do not receive a management overide .
How much can be earned?
That depends on a Multitude of Factors:
- The Clients – including their Employees and Associates
- The Services & Products We Provide to Clients – ranging from Management Consulting, Remuneration and Tax Planning, 401k Retirement Plans, Marketing & Profit Sharing of Revenue Generation, Wealth Creation, Asset Protection, Mergers & Aquisitions,
- Your Role and Status in our Organization
- your academic training, qualifications, experience, professionalism, technical knowledge, sales skills
- work rate
- business development
- management capability