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7 Greatest Money Mistakes

 

Mistake # 1: Paying Too Much Tax.

 

One third to one half of your personal wealth is going to come from tax planning. If you do not believe that you are a fool. Look at your existing expenses. The number one expense for everyone is either tax or housing. It is your right under the law to pay the least amount of tax possible (under the law). That means you can structure your life, structure your finances to pay the least amount of tax possible. And there are simple and powerful techniques that can make a major difference in your tax life (not to mention improve your financial position).

 

Take a look at these simple examples:

 

  • If you rent you are missing out on the interest deduction, which could lower your tax bill by $5,000-15,000 each year. Most people who do not own a house say they can’t afford it. Truth is you cannot afford to be without one. If money, credit or down payment is stopping you check out our Real Estate materials.
  • If you take vacations and could turn those vacations in to “tax deductible” trips, you could take more of them or get money back from the government for taking

those trips. There are a half dozen ways to make trips tax deductible.

  • If you took money out of your brokerage account and paid tax you could have reduced that to 15% tax rate (or less).

Tax strategies make the difference between the poor and wealthy. And it seems

on the wealthy know them or can afford them. Not any longer, through our tax defense program you can learn 44 ways to cut your tax bill in less than 30 days.

A simple effective and proven plan to cut your taxes in half and at the same time

improve the quality of your living.

 

Mistake # 2: Paying Too Much for Insurance.

 

We are taught about insurance from “insurance professionals”. Interesting that they are paid commission to teach us. There are some good insurance agents out there in the market place. They are interested in providing you with good quality insurance at low prices. However, there are some agents out there that are more concerned about their pay check than yours.

 

Life Insurance. Generally we want to buy Term life insurance. It is pure insurance. Meaning there is no savings or investment associated with the insurance. You pay just for the insurance. Premiums (cost) is lower than Universal or Whole life policies. To get the best at the lowest rates visit our Quote Service. Get instant insurance quotes from over 300 insurance companies. No obligation. It will quote a variety of rates and choices. Another choice may be Variable Universal Life, because it allows you to control

the investment portion of your life insurance. By the way if you currently have Universal or Whole life polices you can covert them to Universal Life.

 

Car Insurance. When it comes to the typical automobile insurance policy, there are four major areas of coverage:

 

  • Bodily injury liability (including personal injury protection in “no-fault” states), in case you injure someone with your car.
  • Property damage liability, in case you run into someone else’s property.
  • Comprehensive, in case your car is vandalized, stolen, or in some other way damaged by someone else.
  • Collision, in case you damage your own car.

 

Each of these four areas has its own deductible. Cost cutting here is a three step process:

 

  • Contact your auto loan lender to determine the maximum allowable deductible for each area.
  • Apply for a credit card that has no annual fee and a reasonably low interest rate with a limit equal to your total deductible. Once obtained, place this credit card in your file with your insurance policy and forget you have it.
  • Raise your insurance deductibles to the maximum limits.

 

If you raise your deductible from $500 to $1000, that extra $500 you might some day be responsible for will be saved in reduced premiums over a period of a few months. In the event you ever have a need for your insurance, use the credit card to pay your deductible and pay off the balance over a period of time that is comfortable for you. By doing so, you have avoided a financial strain on yourself, and “self-insured” a portion of your automobile.

 

If your car is an older model, avoid collision insurance.   Collision insurance is normally a more expensive coverage than a coverage that may be substituted such as comprehensive.

Avoid incidental coverage’s such as auto medical coverage.      If you are in a no-fault state, use medical insurance instead of personal injury protection if your state allows you to do so.       Substitute transportation, which covers rental cars, towing, and

insurance auto club memberships are very overpriced and should also be avoided

(especially if you are already a member of AAA).

 

Some states require car owners to maintain “no-fault” coverage. If your state is one that does require it, of course you must maintain the coverage. But, if your state does not require the coverage, get rid of it because it only duplicates other coverage you will have.

 

Mistake # 3: Not having a Financial Blueprint for Life and Retirement.

 

It is estimate that the typical North American will make 2 million dollars in their life time. Most will retire with a few pennies and perhaps a less than adequate pension. If fact the static’s at age 65 are scary. At age 65 this is what most people retire to:

 

  • 22% Must Continue to Work past age 65
  • 28% Rely on Welfare or Social Security

 

  • 45% Depend on their family to live and exist
  • 4% Meet the basic needs of life (food and shelter)
  • 1% Truly Financially Independent

 

Of the people who are financially independent the most common reason they expressed that help them “make it” was: starting early and having a plan. A blueprint for success. Your blueprint must have the following:

 

  • Tax reduction plan.
  • Compounding of investments to maximized funds at retirement.
  • A return of 15% or greater over time.
  • Asset Protection. One 4 people will be sued this year!
  • Investment in Real Estate. Your own property and investment property. Using leverage to

build wealth.

  • A business for tax deductions and building wealth.
  • Product discounts and savings plans. Coupons. Shopping cards. Wholesale relationships.

 

We provide a benefits package to our members that can save $1000 to $5000 EVERY YEAR. If you are interested in placing your self on the path to savings and wealth building join our program to day. One of the first steps in our programs is to do a complete Financial Review for you and then build a wealth building plan for success.

 

Mistake # 4: Not Receiving a 15% or Greater Return on Your Investment

 

A lot of people have money in CD’s earning 3-4%. You know what CD stands for “Certificate of Death”. It is death to your long term wealth. There are many better choices out there than Certificates of Deposit (CD).

A simple choice would be to put your money in no-load mutual funds. The “no-load” means there is not the typical 5-7% commission (the load) paid to the broker (sales

rep). Who is usually broker than you, by the way.

 

IRA’s, Keogh’s and 401K’s are great investment vehicles because of there tax

deferment too. If you start or own a small business you can create your own retirement program (in addition the one you have at work). What most people do not understand

is the power of investing in these financial instruments. When you put money in to

these you automatically make 30% (your tax bracket) on your money. That is awesome! We make 30% before we even begin to make money in the stock market or

mutual fund or what ever your IRA invests in. You must max these out every year!

 

Individual stock investing and day trading can make a big difference. The skill is getting the big returns with out much risk. And there dozens of investment strategies. Check out our investments section for some recommendations and winning strategies.

 

Tax lien certificates can be another great choice. You can earn up to 22% in less than 6 months. Guaranteed by the government.

 

Mistake # 5: Not Owning Your Home!

 

A major mistake. There are 3 important reasons you should own your own home. First, it is one of the best tax breaks possible. The interest on the borrowed money is tax deductible. That means you can shelter some of your existing income. For a new home in that first few years almost all of the monthly payments is interest. If you have a

$1000 per month payment almost all of it is tax deductible. So at the end of the year you can right off almost $12,000 against your income. That can mean a $3000 or more

tax savings. Second, owning a home and paying it off over 15 or 30 years gives you an

appreciating asset. The house will appreciate about 4% per year (national average). In addition you are paying of the principal every month, creating equity. At the end of 15

or 30 years the home is yours and it has grown substantially in value. The third reason

you want to own a home is leverage. Leverage in real estate means we use a little bit of money to control a large asset. An example, if I buy a home with $5000 down and it

is worth $100,000, I now control asset of 100k. Interesting that each year the asset will

increase in value of 4%. Which means after the first year the asset is worth $104,000. So in essence I spent $5000 to get a $4000. Are you with me? Each year the asset is

going to grow another 4% (another $4000–actually more but I am keeping the number

simple). $4000 each year times 15 years is $60,000 (in appreciation–increased value). When I sell the house I will make this money. And all I did was put up $5000 initially. A

good return on investment and a great example of leverage.

 

Houses are great investments. In fact we must buy a home for our family and we should strongly consider investing in housing. The power of leverage, appreciation and equity build up can make you wealthy. Not to mention the outstanding opportunity around buy and selling foreclosures, distressed (run down) properties, or renting homes out and making monthly cash flow.

 

Mistake # 6: Not having A Small Business

 

There are thousands of success stories about a small business that started in a back bedroom or garage that are now worth Millions, some even Billions. Microsoft, Sony, Hewlett-Packard, Apple just to name a few. Perhaps you have the next brilliant idea, product or service that can make millions. May be the idea can just generate enough money for you to quite your existing job. You know what job stands for don’t you? Just Over Broke. Or may be the you can just use the small business to reduce your taxes this year? Did you know through your small business you can take the following deductions:

 

  • Convert the allowance you pay your children to a wage they earn in your small business.
  • Write off $20,000 in business equipment each year. I know in my business I need to use a

VCR, a TV, a camcorder. Do you see any possibilities?

  • Vehicle expenses related to business.
  • Health insurance.
  • Vacations. Now business trips. Find out the rules and use them.

 

Small business gives us immediate tangible tax deductions we write off against our current income. We can in a few minutes show you how to write off 10, 20 even

$30,000 in tax deductions this year. That could mean a refund or tax reduction of

$3,000 to $10,000 this year from the tax man. In fact our staff specialize in helping people find those missing deductions. We developed a very cool program that does not cost much but has big rewards. It is our Tax Deduction Review Program and it is Free!

 

Make money. Save money. Perhaps find that special business that is personally rewarding and financially prosperous. Every one should have a small business.

 

Mistake # 7: Not having Asset Protection

 

Did you know when you die, if you have not planned the event properly, up to 73% of all your money, and assets could be lost? Check out the following chart of famous people and the loss of their estates.

 

 

Name

 

Gross Estate

 

Total Settlement

 

Net Estate

 

Shrinkage

William E. Boeing 22,388,158 10,589,748 11,796,410 47%
Marilyn Monroe 819,178 448,750 370,426 55%
Elvis Presley 10,185,434 7,374,635 2,790,799 73%
J.P. Morgan 17,121,482 11,893,691 5,227,791 69%
John D. Rockefeller, Sr. 26,905,182 17,124,988 9,780,194 64%

 

I know what you are saying. Well I do not have nearly that amount of money. Well let me tell you something surprising. If you own a home, a car, some life insurance, and or have a retirement account (401k, IRA)…..You need an asset protection plan. There is a good chance not all of the value will be passed on to your heirs and or it will be taxed at higher rates than you want. Or your heirs want.

 

In addition right now we are a litigious nation. Everyone is getting sued. Studies indicate that one out of four people in our nation will get sued. Easily it could be you. How would you feel if you had to sell your house to settle a law suite or lost everything because you were not prepared.&

45/45/10 Investing

Strategy: 45/45/10 Plan—A balanced approach to investing.

 

45% Cash Flow. Focus on cash flow strategies first. This builds multiple sources of cash flow. If we have more than just job income it keeps us safer. And or allows extra money to build wealth, or leverage. Strategies to consider are:

  • Get a job. A good start, but not the only solution.
  • Credit Spreads. Monthly income from the stock market.
  • Covered Calls. Rent your stocks out and get paid.
  • Rental Real Estate. Single residence, duplex or triplex.
  • Commercial Real Estate. Mobile Home Park. Bill Boards. Storage.
  • Small Business Income. Web sites, services, retail, & professional
  • Intellectual property. Write it once, get paid forever.
  • Referral fees. Match products and databases; take a small percentage each and every month. 2% can make you rich.

45% Growth. Once we have multiple sources of income working. We can turn our attention to longer term growth. Long term growth makes us rich. One strategy I heard early in my real estate investing career was “buy one rental property a year, for 10 years and in year 15 you will be a millionaire. Run the numbers, it is true if the appreciate rate is about 6 percent or great. Simple growth strategies can make us rich. But it all about the ROI. See growth section on time, roi and compounding and further explaination of tactics. We may consider strategies such as:

  • Real estate appreciation. Long term growth.
  • CANSLIM. An uptrend growth strategy.
  • Buffet Approach. Key fundamentals.
  • Dogs of the Dow. A simple Dividend Strategy.
  • Bi weekly mortgage payments. A interest cutting program.

10% Speculation. We can speculate and get a better pay day. But we must understand the relationship between, risk and reward. Only a small part of our investing should be speculation. Unfortunately, many investors speculate too much. They gamble on the long shot, when they should be making small amounts of money consistently over time. A few examples of speculation maybe:

  • Land options.
  • Buying homes on Speculation.
  • Development(s).
  • Naked options. High risk.
  • Forex (high leverage positions).

Now if you have the right education, and experience these “speculative” strategies can be safer. As experience, can give you higher probability of success. A forex investor has a distinct advantage, if they know support, resistance, world economy, an Elliott Wave, or Gartley pattern. He will tell you a hundred to one leverage (or more), is not risky, but profitable. The key here being EDUCATION, STRATEGY and EXPERIENCE.

Take a S.T.E.P.

Many folks are frozen by fear. Fear of success. Fear of failure. Fear of the Unknown. One of my mentors, had a simple solution for fear.

 

Strategy: When FEAR raises its ugly head, take STEP forward any way. 

 

By the way STEP, stands for:

 

Strategy. you have a plan to deal with the fear. For example if u are afraid of losing money, you have a wealth plan. A system to succeed.

Time. You must dedicate the time to succeed. Give the strategy or idea, time to grow.

Experience and Effort. You need to have a mentor show u the way, but u have to put up and effort too.

Persistent. Don’t give up.

 

 

Dreams are held hostage by FEAR

Dreams are the prisoner of doubt and fear

 

Many folks do not live their dreams, because they are held hostage by their own limitations. And I mean self limiting beliefs. NOT real. If fear or doubt holds you back you must have a few strategies for killing the fear. To eliminate doubt. To live your dreams.

 

Strategy: Take a step anyway.

 

John Wayne said “Courage is being afraid and saddling up anyway”. Successful people realize that on the other side of fear are your dreams. Just take a step. I have done a lot of fire walking in my life. Actually taught fire walking too. Do you know there is a trick to fire walking? See if I can get you moved to do the first step, you are very motivated to take the rest. J It is true. If I can get you to take that first step you are on the path. The hardest step is the first one. The rest are easy.

 

Strategy: Get a mentor

 

When you do not know, you often create issues and doubt that are not real. You create issues, you create problems, you look for excuses not to try. Well, that would never work. I can’t do that. Mentors squash that thought process right away. Because when you say, you can’t figure it out, they often know away to success. Mentors are worth their weight in gold. You can spend years looking and panning for gold. Or they can show you were to find it right away. I know the value of time. While other are trying to figure it out themselves, I have a mentors show me the quick way to success.

 

Strategy: Push Past Your Self-Imposed Limitations

 

Ok. My high school guidance councilor said base on my aptitude test, I would be a good electrician or cable service repair guy. Than god I did not listen to them. Or create limitations about what I can do in my life. Too many people fall into a BOX. This is whom I am. Or worst come up with limitations. “I am not smart”, “I am too old”, “I could not do that”. What ever you believe you achieve. Start with breaking out of the box. Start with a better self concept. Start by believing you are capable of great things.

 

Dare to be Rich as well as do much more with your life. Travel the world. Send your kids to the college of their choice not the college down the street. Build a business. Write a book. Make 5 million or more. Have the house at the beach. The hot car. You deserve more in life.

 

Believe, and Achieve.

TEA Principle

One of my mentors said, “Jim. Do you cut your grass?”. I answered “yes.” He then said, “That is the reason you are not rich.” What on earth was he talking about?

The answer was simple. Either you invest time, or you spend time. I was spending time. Spending time on the wrong activities and efforts. Therefore getting the wrong result. If I had spent that time working on revenue generation, rather than saving 5 bucks an hour (you can always find some one to cut your grass for 5 bucks an hour), I could get a greater result in my life. Life results are about how you spend your time.

As I looked at how I spent my time, and effort, I realized there was a direct relationship, between time, effort and achievement. That in many cases, I wasting time, spending it, not investing in the future. Later in life, I labeled this the TEA principle.

Time + Effort = Achievement

If you want any result, any achievement, you must schedule the time, and effort. Most folks do not schedule their success. They fall in to bad habits, like: eating, watching TV, lying on the couch, unproductive driving, personal errands, lunch, and getting lazy.

Recently, I saw Mark Wahlberg on a TV show. He was talking about his faith, and focus. He had an interesting comment. Every day he goes to church to “stay focused”. Every day he commits the time, and effort.

And he gets results. He has great achievements, but I imagine his relationship with GOD is doing well too.

As I got older, I started to put on weight. Recently, I lost 30 pounds in the last 90 days. The only difference was exercise for 40 minutes EVERY day. NO matter what. Time and effort equals achievement. No matter what. I got home at mid night last night after a long day, and flight. But I am committed (effort, so did my 40 minutes).

My son let his grades slip recently (hockey, work, and girlfriends can get in the way sometimes). So we applied the TEA principle. Every day for 1 hour, he must study….. Period. The Time and Effort will get achievement.

I asked Charles J Givens how he wrote 4 best sellers. He said “Simple from 7am to 10am every day I write”. There is no question I will have more books. Shame he passed away. Bet there were dozens more great books on the way.

Take the time each day. Make the effort each day. And achievement is on the way.Tea

9 Best Sales OFFERS!

When writing powerful copy, in newsletters, direct email, brochures, ads, or any kind of marketing, it is important to keep in mind a compelling offer! Offers make copy and sales script work. Copy writers and direct marketers have known for years what offers work. You will see “similar” offers in all direct mail, newspaper ads, emails, because they work. If they work use them.

 

Strategy: Use the top 9 offers on your site and in your email (think about using them in telemarketing, direct mail, brochures and display ads too)

 

OFFER #1: Cash. Any time you can tie a campaign to cash back or cash now you pull a great percentage of the general population. Soup companies do it. Grocery companies do it. Car companies do it. You must do it too! Give a rebate. Give cash back. Give a check back to people at the end of the year.

OFFER #2: Free trials. Free trials work. A free trial of a newsletter. 30 days of free service. The cable company knows this don’t they? Showtime, HBO FREE this weekend or for the next 30 days. They know that about 50% of us will keep the free service. We get use to it. We begin to the value. We begin to feel it is part of our normal routine. Find ways to give individuals a sample of your product. A free trial of your service. A sample of the way you do business.

OFFER #3: Discounts. They cause clients to want to take advantage of the deal to day. Make sure the discount has a timed element. A dead line. People hate to miss out on a good deal. Give them a break for being a first time client. Give people a break if they respond in 72 hours. Give people a break if they do now while they are on line or receive you newsletter. Make it special. Do it only once in a while. If you give discounts on a regular bases, customer start wait for the discount days (usually at Christmas, or other holiday).

OFFER #4: Penny More. This kind of like a 2 for 1 deal. For one cent more you get another product. Individuals respond to this offer in droves. For some reason we “psychologically” we think we are getting a great deal. Buy one and for one cent more you can have two. We believe we are getting products at a 50% rate. Even if the cost of the second product has been “priced” in to the original price (so they can afford to give you the second one). Try it you will be pleasantly surprised.

OFFER #5: Two for the price of one. Kind of like a penny more. We get two for the price of one. Therefore we got the product a great value. OFFER #6. Add on Product (BONUS) We all like something for nothing. An add on product or bonus is any thing we give a way for free if they act right now. Always make it an incentive to buy now. Take it a way if they do not buy. The best bonus is one that is in limited supply. “Only the first 10 people will get this bonus”. Only those that do it today will be entitled to this rare gift from our company. By the way, the bonus does not have to relate to the original product. For example, Sports Illustrated had ads for years where if you bought a subscription to their magazine you received a FREE bonus of a clock. What does a clock have to do with a Sports Illustrated magazine? It was just a good reason to do now. Get the bonus. Our gift to you.

OFFER #7: Related Product (BONUS) Very similar to a bonus. The only real difference is that the bonus is directly related to the to the product being sold. If you buy the toothbrush you get free toothpaste. If you buy the razor you get the shaving cream for free. Nice complimentary product to the one being sold.

OFFER #8: Perceived Value. Unique. Creative. A great campaign. And in expensive if you do it right. Perceived value is something the public believes is of great value but in fact does not cost you a dime to add to the product or offer. Here is an example. I am in the tax preparation business. I make the claim, statement, and guarantee “If you are audited for any reason, when I do your taxes, I will represent you in the audit for FREE”. The perception is that this certificate or guarantee is worth Hundreds of dollars. Because if in fact we were audited we would have to pay a professional to represent us. The cost Hundreds of dollars. Yet the Tax Pro knows less than 1% of the population is audited. Therefore, the actual cost is minor. Great value no cost. Another example. I have a web site that sells vitamins, herb products and health products. On average I sell about $35 per sale to my customers. I want a campaign to drive up my average sale from $35 to $50 per sale. So, I go to a national gym (something like Ballys). Most gyms have a free 2-week membership. So I ask them for 1000 of these 2-week free memberships, because I am going to help them get clients in to their gyms. On my site I do a special limited time offer, while supplies last. If you buy $50 worth of stuff from my site, I will give you a 2-week free membership to a health club in your area (remember I said a national gym). End result my sales go up by 37%. The gym is happy because they received good traffic during my promotion. The customer is happy cause they got a good deal. And it did not cost me a dime! Look for other companies that are giving stuff away. Cut a deal. Tie your product to their stuff. Look inside your own company. What could you give away for free, that really does not cost you much, but has a huge perceived value?

OFFER #9: Contests. We all like to win. We all like something for nothing. We all think we could be the lucky one. Buy toothpaste fill out the form and win a vacation to Hawaii. Buy from my site to day you are put in the lucky monthly drawing to win $10,000 worth of FREE products. Scratch and win a trip. Scratch and win cash. Scratch and get a discount from 5% to 50%. That is all for now.

10 Percent Solution

A10% plan can build your wealth.

 

Do you think a person earning $20,000 per year can become a millionaire? Absolutely! Anyone can do anything they set their mind to it and if they develop a realistic plan and stick to it. Let’s take a look how.

John is a hard working man earning $20,000 per year in his job. Through the lessons he has learned in this course, he has learned to reduce the money he is spending on taxes, life and health insurance, health care, food, and cars. He has also learned the importance of planning for retirement and purchasing his own home. He is 35 years old, and has set a goal of having $1,000,000 when he retires at 65. What must he do?

 

First, by reducing many of his living costs, John has worked into his budget a 10% savings plan. This means he will be able to invest $2000 per year into a tax sheltered Retirement Account (which by the way, further reduces his taxes). John has selected a no-load mutual fund as his investment vehicle using the strategies discussed in volume 2 of this course. His fund gains an average of just 15% per year over the course of 30 years. How much do you think this has earned him?

$2,000/year x 15% return on investment (compounded) x 30 years = $739,066.

 

Well, John has not quite reached his goal yet. But remember, he is also investing in a new home. He knows that real estate will appreciate on average at 5% per year (national average). John finds a nice home that suits his taste at 10% below fair market value using the rules of this course for $80,000. The house is actually worth $88,000.

Starting value of $88,000 x 5% annual appreciation x 30 years = $393,161.

 

So, at age 65, John has $393,161 in equity + $739,066 in his mutual fund, which equals $1,132,227. You see, John has surpassed his goal.

 

Your objective is to make available for savings, 10% of your income. If you cannot achieve this simply by reducing your expenses, you must increase your income. Hopefully, you will follow all the rules in this course and do both.

 

17 Keys to Success

Every generation should be better than the previous; passing on tips, tools, strategies and philosophy. My grandfather was a dock worker, my dad a professor, my mum an accounts payable supervisor, and I am an entrepreneur. Here are some for consideration for Success:

  1. Enjoy the ride it is over before you know. Make time for: health, family, self, bucket list activities as well as success.
  2. Faith leads the way. Faith in god. Faith in self. Faith tomorrow is a brighter day.
  3. Dreaming belongs to everyone. Not just the young. In fact it keeps you young.
  4. Success requires a time commitment. Commit 2 hours a week.
  5. Break the work bondage cycle. Make your money make money.
  6. Mentors are worth their weight in Gold. Buy them. Work for them. Surround yourself with them. Be the dumbest person in the group….. But not for long.
  7. When you learn you earn. Earning does not happen without the “L”.
  8. Put only good gas in the engine. A positive attitude keeps the engine strong.
  9. Anger is your worst enemy. It steals your energy and ruins the engine.
  10. Desire, determination, and persistence are more important than talent.
  11. Let the little things slide. Who cares if they leave the socks on the floor, or drive a different route than you would have taken?
  12. Relationships require interest, time, respect, and forgiveness. Invest in the people you care about, even if they do not reciprocate.
  13. Winning is important. Yes, congratulate the losers. But life is not about being even.
  14. Take responsibility for your life. You are the creator. Success and failures.
  15. Have a grateful and generous heart. Every day, every event, and every person is a blessing. Even if you cannot see it yet.
  16. Use the 10 percent solution. 10% (or more) of every dollar needs to go to your future (self, or investment).
  17. Take a step forward even if you are afraid. Courage makes champions.

Luck happens with preparation meets opportunity!

13 Commandments for Selling from Stage

 

  1. Environment (Planning the process). You must be prepared to manage the emotion, state, behavior and actions of your client (and yourself). That means you have to have objectives for each section, a plan in terms of outcome, and a plan for selling. Never try and just wing it.
  2. Build rapport at a conscious and subconscious level in a short period of time. Students, clients, or attendees must like and respect you. Therefore, you must relate to them personally.
  3. Permission Frame. Ask permission to be direct, open, and make suggestions for change in their business, life or product selection. Gain permission to guide them through the process.
  4. Agreement Frame. Get the client to agree with you and your process at a conscious and subconscious level, often done by use of questions. Get folks to comply.
  5. Conditioned response. Get your client or prospect to respond in a certain way. This requires a conditioning of thought and mind. Yes, that can be manipulative. It’s OK.
  6. Plan specific directions or actions to take during the presentation.
  7. Body Language. Ensure your verbal message matches your body language message. Be strong and confident. Also, use non-verbal behavior to influence the group or audience.
  8. Future Pace the process. There are two parts to “future” pacing actions and behaviors. The first is to preview the sales process; the second is to preview the post-sales process. You reduce buyer’s remorse, cancellations and refunds.
  9. Society Pressures. There are societal pressures that influence a decision or process. It is the law of reciprocation, or legitimacy. We must use them in our presentations to bring us closer to YES.
  10. Manage Behaviors. Establish what are acceptable behaviors and actions and what are not, with rewards and punishments.
  11. Repetition of themes. Repetition of major themes, benefits, and messages ensure the communication was received.
  12. Story messages. The use of stories can be effective sales techniques – just ask Zig Ziglar.
  13. Nothing beats direct closing techniques for results. You must know 15 closes.

The majority of this material applies to a group sales process; however, it is easily applied to personal one-on-one sales presentation. Learn and Earn.

Leverage Makes You RICH!

Strategy: Leverage—tool of the rich.

I talk about the Wealth Wheel: Education, Cash Flow, Growth, Big Hits, Leverage, Taxes and Asset Protection. A key element to the Wealth Wheel is Leverage. The ability to take something small (capital, opportunity, energy or intellect) and leverage the item, into a huge result.

Leverage is an important element to wealth, and even success. Taking limited resources and using them to capacity. Whether in business, real estate, the stock market or life, this is a philosophy and strategy you should master. Let me give you some real life examples, of how to apply this tool to various areas in building wealth.

 

Strategy: Stock Market Leverage

Options can be great leverage in the stock market. If you know, what you are doing. Otherwise they can just be a waste of money. Ensure you get a strong education on options, before investing.

If the price of XYZ stock is $ 50 a share, we might be able to buy the option for $ 5 a share. Options are usually sold a “contract” which represents 100 share of stock. We buy a 100 share at a time (1 contract). Obviously, I can buy a lot more for $ 5 bucks vs. $ 50 dollars per share. Therefore, return on investment is larger (leverage). Plus I can start with a small investment.

Now many new option investors will buy options that expire in less than 30 days. What they do not realize is the value of the option will decay fast. In fact the greatest decay (loss of value), is in the last 30 days. What that means, is if you are buying options they should be 60 to 90 days minimum. So, we see changes in value based on the market place, not the decay.

There are other examples of leverage in the stock market such as: credit spreads, naked position, and margin (loans).

 

Strategy: Real Estate Leverage

Five major leverage areas for real estate are creative financing, forced appreciation, negotiation, buying right, and loans.

Any time you borrow money to buy an asset, you can end up with great leverage, provided the asset appreciation is solid. Example: I buy a 100k house, put 10k down, and borrow 90k. It appreciated 5% per year (or 5k a year). Well, my growth is based on the 100k or 5% (5k). But I only invested 10k down. So my cash on cash return is 50%. Borrowing money (at a reasonable rate) with a solid return can be awesome leverage. Might be the reason more millionaires are made in real estate than any other vehicle.

 

Creative finance is another area in real estate to increase leverage. If you can use a strategy to buy a house with less than $ 1000, you have great leverage. Perhaps use: seller financing, lease with option to buy, or a contract for deed strategy. Each can have a low down payment or investment.

There are other ways to increase real estate leverage like: negotiation of equity or price, balloon payments or deferral of payments, OPM (Other People’s Money) such as PPO (Private Placement Offer).

 

Strategy: Business Leverage

The quickest and cheapest form of business leverage now-a-days is the Internet. For a few hundred dollars, you can have a store front earning you thousands of dollars every year. The internet can often better than a franchise, or distributorship investment. In many cases, you do not need a product, as you can readily find them as an Amazon affiliate or one of a dozen other programs.

Other forms of business leverage can include:

MLM. Building a down line of individuals, where you get a residual income can be considered leverage.

Building a Business. A standalone business, which you build and don’t manage, is great leverage. Build it and walk away.

Going Public. I took a small company; reverse merged into a reporting shell, and then went public. The shares came out at $ 3.25 a share, and had over a million shares. Major leverage of time, and resources.

Perceived Value. Getting or creating value for limited cost. I sold a tax product for years. We gave a way “audit” protection, when we did taxes for folks. The perceived value was hundreds if not thousands of dollars in value, if you got audited. We also, knew that less than 1% of the population was audited. We received great perceived value, for a very low cost or liability.

Brand. The goodwill associated with a brand, can be millions. I recall having coffee with George Ross (Trumps right hand man at the time), and him saying if the trump name is attached the minimum value was 5 Million dollars in “brand value”.

 

Strategy: Intellectual Leverage

Intellectual leverage is one of my favorite types of leverage. Using “smarts” to make the most of a situation or opportunity and cashing in on the process. There are dozens of strategies, but number one on my list would be joint ventures.

Joint Venture. Find a database then find a product that the database needs, match up the two and take a percentage of the deal. Example: I found a group of ex-IRS agents that offered services and a product. I knew a financial group that had over 200k members. The end result, we sold over 14 million dollars of tax products to the financial database over 3 plus years. I had a 2.5% royalty on the deal. All parties were happy. I love Intellectual leverage!

Information Products. Decades ago, Ken Blanchard taught me a strategy: make money while you sleep. Write a book, record an audio, or video. And sell it on line or off line. I have sold over 30,000 self-study manuals. The sales were done through 3rd party individuals or companies. I received a small royalty on the sale of each product. Now I sell informational product on line. Great leverage.

 

Leverage is a key to success in life, business, and wealth building.