It was Saturday morning and I was sitting on a park bench. My youngest kids were playing at on the equipment at the park near to me, as we waited for my older child’s sporting game to commence. I checked my business turnover for my international distribution division using the web based online business manager software provided by my partner company, using my cell phone. Then I called a business partner in my country and talked shop for about five minutes. When I got off that call I checked my business management software again – my income had risen $300. A transaction in another country, by someone else.
Now that to some may be a little bit of money, to others a lot. To me it was appreciated money. That’s an annualized $15,000 – while sitting on a park bench on a Saturday morning involved in family activities.
Sure, I did work in the past to generate this leverage. That’s the whole idea of leverage. Do some work, get paid for it multiples times into the future.
That kind of income would take most people in my physical preparation industry a few hours to generate and they would be locked in with clients. I was sitting on a park bench with engaged in family activities. That’s the difference.
Reminds me of the saying – ‘If you are willing to do what most aren’t you can receive what most won’t!’
Sunday, July 29, 2012
Friday, November 11, 2011
11.11.11 and what this might mean to you
As the US moves into the date of the 11th day of the 11th month in the year, 2011, and most other countries are now in that date, you may find value in relfecting on what this date means to you.
Accoring to our 'in-house' shaman, it is the beginning of a period of time that spans through to 21 Dec 2012, and this significant November 11th date is the commencement of this period fo preparing for the Age of Aquarius and departing from the Age of Pisces.
However you perceive this date, we believe it will be great for you and your business!
Accoring to our 'in-house' shaman, it is the beginning of a period of time that spans through to 21 Dec 2012, and this significant November 11th date is the commencement of this period fo preparing for the Age of Aquarius and departing from the Age of Pisces.
However you perceive this date, we believe it will be great for you and your business!
Don't you love it when they suggest it's a pyramid with the top people getting paid all the money
I was speaking with a friend and colleague recently and I was taken back by their inference that direct selling involved the people 'at the top' getting paid all the money and the people 'at the bottom' getting very little of the money. Now this was a well-educated person, however they felt the industry needed to change to 'fix this'. I didn't debate or challenge this person, because I respect their interpretation. Their inference, like many, is that conventional main-stream business models are better because apparently, the people at the top don't make all the money, and the people at the bottom share more equally in the distribution of wealth. Now that's something I don't see the rationale of...considering the below:
Average Compensation of CEOs of 367 US Firms
2004 - $11.8 million*
2003 - $8.1 million
1990 - $2.0 million
The 590% increase in CEO compensation from 1990 to 2004 far outstripped the increase in performance in the stock market, inflation, employee wages or the minimum wage.
*This average rises considerably when then number of top corporations is reduced to say the top 100 corporations.
According to United for a Fair Economy and Institute for Policy Studies (2007): "If the minimum wage had risen as fast as CEO pay since 1990, the lowest paid workers in the US would be earning $23.03 an hour today (2006), not $5.15 an hour."
The Ratio of Average CEO compensation and Minimum Wage Worker in the US 1965-2005
2005 - 821:1 (Worker- Minimum wage $5.15/hr plus benefits)
2004 - 725:1
2003 - 540:1
2002 - 416:1
2001 - 668:1
2000 - 815:1
1992 - 319:1
1989 - 207:1
1978 - 78:1
1965 - 51:1
Source: Mercer Survey of 350 large industrial and service firms conducted for the Wall Street Journal
Examples of Large Executive Compensation in the US
On January 3, 2007, chairman and CEO of Home Depot Inc. Bob Nardelli's severance package was $210 million.
InterActive Corporation (IAC) chairman and CEO Barry Diller's 2006 compensation was $295 million. (Also see our article CEO calls Corporate Governance Researchers Birdbrains!)
David H. Brooks, chairman and CEO of DHB Industries made over $250 million as DHB profited from supplying bullet-proof vests to US Marines in Iraq despite 5,000 vests being returned as ineffective in May 2005. His base salary of $70 million in 2004 was 13,000% more than his 2001 compensation of $525,000. In 2004, Brooks sold company stock worth about $186 million, initiating a drop in DHB’s share price from more than $22 to $6.50, after which he was put on "administrative leave".
Exxon Mobil's chairman and CEO, Lee Raymond's 2006 retirement package was about $400 million.
The CEOs in the examples above also held the position of chairman of the board of directors, a board which must according to fundamental corporate governance principles - and often by law - fulfill their fiduciary duties, monitor the performance of the CEO, hold the CEO accountable, represent the interests of the shareholders in the boardroom, and act in the best interests of the corporation's shareholders.
Lucian Bebchuk and Yaniv Grinstein of the Harvard Law School write in their paper The Growth of Executive Pay that during the period 1993-2003, executive pay "has grown much beyond the increase that could be explained by changes in firm size, performance and industry classification."
Who's the 'pyramid' now?
Average Compensation of CEOs of 367 US Firms
2004 - $11.8 million*
2003 - $8.1 million
1990 - $2.0 million
The 590% increase in CEO compensation from 1990 to 2004 far outstripped the increase in performance in the stock market, inflation, employee wages or the minimum wage.
*This average rises considerably when then number of top corporations is reduced to say the top 100 corporations.
According to United for a Fair Economy and Institute for Policy Studies (2007): "If the minimum wage had risen as fast as CEO pay since 1990, the lowest paid workers in the US would be earning $23.03 an hour today (2006), not $5.15 an hour."
The Ratio of Average CEO compensation and Minimum Wage Worker in the US 1965-2005
2005 - 821:1 (Worker- Minimum wage $5.15/hr plus benefits)
2004 - 725:1
2003 - 540:1
2002 - 416:1
2001 - 668:1
2000 - 815:1
1992 - 319:1
1989 - 207:1
1978 - 78:1
1965 - 51:1
Source: Mercer Survey of 350 large industrial and service firms conducted for the Wall Street Journal
Examples of Large Executive Compensation in the US
On January 3, 2007, chairman and CEO of Home Depot Inc. Bob Nardelli's severance package was $210 million.
InterActive Corporation (IAC) chairman and CEO Barry Diller's 2006 compensation was $295 million. (Also see our article CEO calls Corporate Governance Researchers Birdbrains!)
David H. Brooks, chairman and CEO of DHB Industries made over $250 million as DHB profited from supplying bullet-proof vests to US Marines in Iraq despite 5,000 vests being returned as ineffective in May 2005. His base salary of $70 million in 2004 was 13,000% more than his 2001 compensation of $525,000. In 2004, Brooks sold company stock worth about $186 million, initiating a drop in DHB’s share price from more than $22 to $6.50, after which he was put on "administrative leave".
Exxon Mobil's chairman and CEO, Lee Raymond's 2006 retirement package was about $400 million.
The CEOs in the examples above also held the position of chairman of the board of directors, a board which must according to fundamental corporate governance principles - and often by law - fulfill their fiduciary duties, monitor the performance of the CEO, hold the CEO accountable, represent the interests of the shareholders in the boardroom, and act in the best interests of the corporation's shareholders.
Lucian Bebchuk and Yaniv Grinstein of the Harvard Law School write in their paper The Growth of Executive Pay that during the period 1993-2003, executive pay "has grown much beyond the increase that could be explained by changes in firm size, performance and industry classification."
Who's the 'pyramid' now?
Monday, August 8, 2011
Monday, July 18, 2011
Historical insights and other insights into the direct selling industry
I stumbled upon this article whilst researching the quote:
'All truths go through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.'
--Arthur Schopenhauer
I found it an excellent historical summary and insight into one of the newer distribution of product and profit models in our economy. I am confident you will find some revelations in this document that you were not previously aware of.
http://www.kingsports.net/Download/Articles/sellyourself.pdf
'All truths go through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.'
--Arthur Schopenhauer
I found it an excellent historical summary and insight into one of the newer distribution of product and profit models in our economy. I am confident you will find some revelations in this document that you were not previously aware of.
http://www.kingsports.net/Download/Articles/sellyourself.pdf
Tuesday, October 26, 2010
The benefit of being in the pathway of product & profit distribution!
We just seen a great story unfold in our sales team. A few years ago we recommended the company’s health science products to a client who trusted our recommendation and became a regular product user. When the time came to move him to Preferred Customer status, we explained the benefits of being a distributor rather than a PC for the potential of gaining a small financial return from referrals to his contacts, additional product use for himself, and any downline placements that occurred from his upline. In essence, he could potentially get discounts on his vitamins, and as he was going to buy the vitamins anyway, this was a no-lose situation.
Over the last few years this has panned out as expected. He would get a check every month or so, and this resulted in basically giving him a discount on his personal use vitamins. Now since he chose to get in the distribution pathway simply by joining as a distributor, and through no further effort on his part, one of his legs grew substantially. He was sitting on a half-built income stream than simply needed a second leg to allow him to take the money off the table.
Fast-forward to now. His wife decides, after years of using the products herself, and finding the timing was right for her, to start up her own business. With the relaxation of the company’s regulations in relation to husband/wife having separate The company businesses, and after consultation with the soon-to-be upline, she commenced her own The company business on the weak side of her husbands. All of sudden his checks become so much more regular. In fact between them they received about seven checks in the first five weeks of the wife’s new business, and covered her set up costs and more.
That’s the power of this business! So many distributors in our team, by virtue of the unique distribution model and compensation plan, are sitting on a goal mine of cash flow that just needs one more leg to full exploit. This has been an excellent example of the benefits of getting involved as soon as one can by placing yourself and your The company business in the pathway of product and profit distribution!
Over the last few years this has panned out as expected. He would get a check every month or so, and this resulted in basically giving him a discount on his personal use vitamins. Now since he chose to get in the distribution pathway simply by joining as a distributor, and through no further effort on his part, one of his legs grew substantially. He was sitting on a half-built income stream than simply needed a second leg to allow him to take the money off the table.
Fast-forward to now. His wife decides, after years of using the products herself, and finding the timing was right for her, to start up her own business. With the relaxation of the company’s regulations in relation to husband/wife having separate The company businesses, and after consultation with the soon-to-be upline, she commenced her own The company business on the weak side of her husbands. All of sudden his checks become so much more regular. In fact between them they received about seven checks in the first five weeks of the wife’s new business, and covered her set up costs and more.
That’s the power of this business! So many distributors in our team, by virtue of the unique distribution model and compensation plan, are sitting on a goal mine of cash flow that just needs one more leg to full exploit. This has been an excellent example of the benefits of getting involved as soon as one can by placing yourself and your The company business in the pathway of product and profit distribution!
Sunday, September 12, 2010
The New 'Solution'
The new health and freedom 'Solution' DVD really is a solution for anyone in growing their business!
Why?
1.The Solution offers SO MUCH LEVERAGE! Anyone can put a DVD in a DVD player and press play...
2. We can put as much or as little of our own personality into each 'viewing'...
3. The skills required to present our business have just dropped big time...
4. The online tools have just improved big time...
5. Now we can offer 'viewings' instead of 'presentations'...
Get the Solution, get everyone you know to watch it, get those keen going, get paid, get busy building your business and get busy doing the same with your new team members!
Why?
1.The Solution offers SO MUCH LEVERAGE! Anyone can put a DVD in a DVD player and press play...
2. We can put as much or as little of our own personality into each 'viewing'...
3. The skills required to present our business have just dropped big time...
4. The online tools have just improved big time...
5. Now we can offer 'viewings' instead of 'presentations'...
Get the Solution, get everyone you know to watch it, get those keen going, get paid, get busy building your business and get busy doing the same with your new team members!
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