On February 23rd 2019 we had the pleasure of joining Host Elder Michael Davis on his Radio Show ” Ministry in the Marketplace” on Praise 106.1 FM in Baltimore. We spoke about how any business can obtain access to capital through business credit.
If you want to understand how simple and effective a process it is to build business credit listen to this live recording below. And if you would like to understand the process completely and how it can help your business call our Business Credit hotline and give us your name, email address and phone number and we will send you a Free 90 minute webinar that explains our 7 Step process to obtaining complete business credit, linked to your EIN and not your Social Security Number.
Listen Now: https://bit.ly/2EtiWCH
Call The Business Credit Hotline at 1-833-429-2733 (833-4BZ-CRED)
The name of the game is Income. It will always be Income. And for those who really understand living the life you dream of it will always be income.
These silly commercials on TV have people thinking all I need to be is a millionaire and their retirement issues are solved. Try retiring with 1 million dollars after leaving a six figure job. If you want to retain the principal and not get crushed by inflation you can’t draw down more than $40,000.00 a year in Income. That’s $40,000.00 before taxes.
The object of the game is to have the same or better income after you retire, and as close to tax-free as possible. Even the excellent savers are going to have a hard time meeting those goals because the mindset, education, and financial instruments being used can’t get you there.
That’s the not so good news but not to worry. I have nothing to sell you. Right now you need to stop and think about what I’m about to share.
What you need is Income. Stable, abundant, consistent Income.
How do you know that you have enough Income? It will meet all of your needs, most of your wants, and allows you to leave a tax-free financial legacy for your heirs.
How do you create this income?
You develop a system through testing that allows you to turn 1 dollar into 10 and then 10 into 100, and then scale up.
Let me give you an example. When I first started as a mortgage broker in 2001 I used to cold call everyday and hate it. It was not just the only type mortgage marketing I knew but it was the only type of marketing I could afford. Did I mention I hated it?
Luckily I discovered a better system called direct mail that allowed me to target the right customers with the right marketing piece and best of all I only had to talk to people who were interested.
I tested a mailing campaign with a $1000.00 in direct mail. I closed three loans that generated a net $5000.00 return. I scaled up and started sending out $4,000.00 in direct mail monthly and then $8000.00. That $4,000.00 averaged over $25,000 in revenue and that 8k returned over $60,000.00 per month. In the first 9 years as a mortgage banker we averaged 1 closing every 3 days. This was a system and the system was easy to scale.
Financial advisers are incredible if they can get you a 10 percent return of capital. I can’t give an adviser a thousand dollars and expect a five thousand dollar return consistently. Only business and marketing pays that type of return. The hard part is it requires you to put in whatever time, effort, and money needed to find the right business opportunity to turn into a system.
Everyday people operate in and around systems that can be scaled if only that mindset was present. Once you have the system and you begin to scale it, you should keep your extra capital in tax-free instruments that stay liquid. Don’t play games in the market with your capital.
Many people think not having enough money is their issue. The truth is not having a solid system to invest and scale their money is the real issue. investing $1000.00 in a great system allowed me to flourish. I have friends with hundreds of thousands who feel stuck on well-paying jobs because they don’t know how to turn those thousands into millions.
I see business owners everyday who suffer because they can’t make a business that does 2 million in sales grow to 5 million in sales because they haven’t invested their capital in marketing and customer acquisition, instead they repeat the same performance year after year. At the end of the year they gather their profits and run to their brokers who promptly gets them pitiful profits or losses.
Three Questions to ask:
1. What business do I have insight into that can yield a 5 to 1 or 10 to 1 return?
2. If I don’t have a business and don’t want one , who has a business that yields these types of returns and can I partner with them.
3. Can this system once successful be scaled to be 5 or 10 times greater?
4. What is the amount of Residual Income I need to have in place to be wealthy?
Wishing you Wealth, Wellness and Wisdom
Every day at least one social media friend post about a person under the age of 50 dying unexpectedly. It seems that most of the time that person has a spouse and or children. It also seems that within days of the untimely death there are people asking for donations to help the family handle the funeral cost.
If you are reading this chances are you have a family. I am also going to assume that you love your family, and are making big plans for your children. Some of these plans may include a great primary and secondary education. Others may include making opportunities and experiences available to your kids in arts and culture. Some even plan to make sure their children get a solid financial start once they reach adulthood.
I applaud your plans for your children. Your kids will have opportunities that you never even dreamed about when you were their age. Your hard work and sacrifice is paying for all of these opportunities as well as the basics, food, clothing, shelter, video games, etc. Congrats because you have a plan and the work ethic to get it done for your family.
The sad news is that you most likely have no real plan in place to fully provide the INCOME it will take to carry out those plans if you were to pass away prematurely. Thirty Seven percent of parents with children under the age of 18 have no life insurance. Fifty percent of the parents that are insured have less than 100,000.00 in life insurance.
People are dying every day on Facebook, Instagram, and Twitter and leaving their families broke. Even people who have six figure incomes are leaving their families in horrible financial shape.
The uninsured risk of being a parent is hitting more and more families every day. Many 30 and 40-year-old parents are being stricken with breast cancer, diabetes, stokes, heart attack and sleep apnea. Not to mention simple work and non-work related accidents and car crashes. The ranks of the six figure earners are exploding with women and minorities like never before in the history of the U.S.. The numbers for Blacks owning life insurance are 3% higher than the percentage of whites who own life insurance but the amounts are inadequately low.
The ranks of the properly insured grow smaller every day. Why? Because the idea of what being properly insured is has not advanced in the last two generations and the wealthy are the only ones truly taking advantage of the opportunity to advance their family legacy through the proper use of insurance.
Being properly insured means being able to totally replace your yearly income for the full time your family will need it. How long do your children and/or your spouse NEED your income? How long does your family need your spouse’s income? Depending on the commitments you have made that could mean 25 to 50 years. 30 year plans for houses, 5 year plans for cars and 20 year plans for credit cards. Do you have a plan that will pay for that long? Do you have total income replacement insurance that you personally own? If not, you are leaving your entire family in peril every day because you refuse to totally cover the risk.
A recent survey was done of six figure earning parents and they were asked how much life insurance protection they had. The number than had over $500,000.00 was less than 5%. The number the that had none was over 20%.The number that would have none if they loss or changed their job was over 40%. This is an epidemic problem. Can your family lose over $100,000.00 of yearly income and still operate at the same level?
Life insurance is about replacing your income to protect your legacy and not leaving things to chance. Houses, cars, and other obligations are all gambling if you do not protect your downside risk. Let’s truly be honest about where we are financially because the risk is easily covered if we are determined to do so.
How to replace Income
$500,000.00 can only replace about $20,000.00 in income long term because you can’t really get more than a 4% guaranteed return in any stable financial instrument. That means to replace $100,000.00 you need about $2.5 million in life insurance. Put in the proper instrument it will pay $100,000.00 per year forever. It will pay your spouse, your children, and your childrens’ children, etc.. Learning how to do this properly and for as little cost as possible is an art.
BTW, If you have coverage on your job you need to purchase proper coverage that you own. Having insurance on a job is like having no coverage at all. If you lose or leave your job that is exactly what you will have only you will be older than you are now and the coverage will cost much more. Don’t fall into the trap that gets so many Americans. There are so many Americans looking for proper coverage that they are simply to old or too sick to qualify for. Insurance favors the young and the healthy and time is not on your side.
The structure of a proper income replacement plan is key. If you don’t have a plan that will replace your income for the next 50 years minimum then call me so I can help refer to an awesome advisor and teacher.
Having no plan is a plan to fail, and today’s parents are failing their children everyday by only considering the possibilities if everything remains perfect. Nothing ever goes perfectly. Plan for the worst and hope for the best and you will never have any regrets. You need a plan that covers you and your family if everything goes wrong. By law you cannot drive a car or own a home without proper coverage. Why can you be a parents without proper coverage. So much is riding on YOU!
If you need more information and a referral to a great professional, email me at email@example.com
Wishing you Wealth Wellness and Wisdom
Manager of Wealth
The CEO of your MLM/Direct Sales Company is running the company like a regular business, why aren’t YOU?
There is a disturbing trend growing around the country. It has been growing for the last 30 years but it is positioned to explode over the next decade. If not put in check, it will destroy or waste millions of man hours and dollars that belong to people who can ill afford to waste either.
The trend I am speaking of is people who are in Direct Marketing/Multilevel marketing sales who do not keep good account of the time or resources invested in their businesses that pay temporary residual income. Now before anyone jumps all over me for speaking negatively about their precious MLM, I want you to go back and read the last sentence about keeping accurate track of the time and money invested for the return. This piece is not about how good or bad any direct sales business is. It’s about how good a business person you are.
Over the last few years the world has been overrun with people who are trading huge blocks of time at meetings, conventions, promotional events and sales seminars for their direct sales companies. These same people are investing almost as much time in their part time businesses as they are at their full time job but earning less than 10k from their business and investing twice that in travel, hotel cost, merchandise cost, rental cars etc. Their approach to business spits in the face of common business practices and is an abomination to the common sense they show everyday outside of their MLM business.
The facts are that less than 2% of reps who have ever joined a direct sales business ever made any real money and built a profitable and sustainable business. Can it be done, yes. Can you do it without adhering to sound business principles, probably not? http://abt.cm/1BiGvZF
In full disclosure I have operated in several MLM businesses but found them way to limiting for the creative way I love to do business and frankly it was always too much work for too little money. Over the years I’ve been blessed to generate millions of dollars in non MLM businesses that required me to be focused on the top and bottom lines. I never spent more time for less money that in recruiting and selling in an MLM because the business simply wasn’t designed to make me rich but to make the company rich through the use of labor and financial resources of many people who would never enjoy the spoils of the company.
In the business world important things like expenses, cost of goods sold, profit margins, return on investment and time invested are direct measures of how strong a business you have built. In MLM these things are rarely talked about nor calculated. In fact, the interest where these things are concerned are directly opposite of the interest of the sales rep.
Let me explain. The company that starts the MLM is a regular business like any other in the United States. They start with a certain amount of money and a business plan; they rent office space or warehouse space and hire hourly employees. They calculate the cost of the product they are selling and stock it. They have warehouse employees that handle distributions and they have a limited time to become profitable or they shut the business and declare bankruptcy.
The thing that makes these firms different is that their business model is based on telling people who are employed to make the change to become self-employed and embrace their limitless options. They build a virtually free labor force with no payroll taxes and workman’s comp. They tell people to stop being a slave to their 9 to 5 and invest their time, energy and money into the pursuit of financial freedom. To do this they can sell their products and earn a fixed commission which is tied to cost of goods sold and profitability, but is never disclosed. Sales Reps attend conventions and meetings in hotels where the company has room rental rate deals, but that’s not disclosed. They can recruit others to do the same and earn more fixed commission known as overrides, which again is tied to undisclosed profitability and cost of goods sold.
At the end of the year that MLM business is either profitable or not and if not it won’t be around for much longer. The residual income people speak about will not pay forever because people will switch or cancel services over time. At the end of the year the company files taxes and pays payroll tax on all the corporate office and warehouse employees just like any other business. At the end of the year the principals reward themselves with big fat bonuses for how profitable the company was that year. The only real difference from other companies is their cost of labor because they do not pay for the countless man hours the salespeople put in to make it to certain promotional levels and win prizes. Most fail to ever make a profit, but the profitability for the company is actually higher on the majority that fails than it is on the minority that succeeds.
This is a very profitable business model if you own the MLM/Direct sales business.
Conversely, for the common rep they do not evaluate how many hours they spent on their business per week, how much product they purchased, how many conventions they attended, hotels and rentals cars paid for etc. They do not subtract that from the amount of capital earned to determine their profitability. If they did they would see that they were upside down and need a plan to get right side up. They do not have an opportunity to lower the cost of goods sold or increase the profitably on the items they are marketing by getting better pricing at the manufacture, in fact they have no idea what COGS actually is.
The MLM/direct sales rep has no idea when the others they recruited will look at what time and money they invested and finally hit the wall and quit as happens with most. It’s a style of business with a 98% failure rate for the marketer and a very high success rate for the company.
They only way to change this paradigm is to run the direct sales/ MLM business like a real business and track all of those metrics that your parent company is tracking. Put together a plan and capital and build a profitable business before you burn through your budget and teach your recruits to do the same. Have monthly meetings that discuss and share hours and dollars invested versus dollars earned. Don’t be afraid of the hard truth.
Be realistic about the residual aspect of these businesses. People do and will continue to switch phone companies, utilities carriers, makeup providers etc., so the residual is temporary unless you invest your profits into truly residual financial products that pay life time income.
Have fun, do your best and leave a legacy and pathway to success but please run your business like a business.
Wishing you Wealth, Wellness and Wisdom
Manager of Wealth
Blacks who attended predominantly white universities can use their Power, Influence and Money to help today’s Students
I am taking this entire week to recover from all the hanging out I did with my fellow alums at the University of Maryland Homecoming this past week. I sit in a café writing and reflecting on all that has changed at my alma mater since 1989. More to the point, I am reflecting on all that has happened to change Black life at the university since the first Black undergrad (Hiram Whittle) was admitted in 1951, the first Black grad student (Parren J. Mitchell) in 1952, and the first Black Women (Elaine Johnson) in 1955.
For the Blacks who attended UM before the early 1980s, it was a largely racist and unwelcoming step toward a better life in America. The majority of the administration, faculty, staff and students called and treated those students as if they did not belong. So much so that the federal government had to step in and insist the University change its treatment. One item on that list was use of the word “Nigger,” which, if you talk to anyone who came through UM between 1951 and 1979, was the first word they heard when the stepped on the campus. As a result of their treatment, it is difficult to find Black graduates for the 1950 and 1960s, because almost all transferred to more progressive and welcoming institutions of higher learning.
By the 1980s and 1990s, UM had been transformed into a mini-HBCU, with a Black student body that numbered close to 1,500. Those students enjoyed total access to university resources and a prospering and successful Black student body. When I arrived at UM in 1989, I was overwhelmed by the large campus and the 35,000 predominantly white students. But within weeks I was enveloped in the arms of the Black Terps and have remained so for the past 25 years. I can’t tell you the hundreds of incredible benefits that have sprung from my time at UM, but can attest to the fact those benefits arose out of the great relationships forged during my time at UM, and nurtured ever since.
And here are some of the facts to bear witness to the facts that the benefits of UM are not mine alone:
- The University of Maryland has the largest group of Black Alumni of any predominantly white institution in the United States of America.
- The University of Maryland produces more Black Lawyers than any institution including HBCUs in the country.
- The University of Maryland instituted a rule that all athletes will be allowed to stay at the university and complete their degrees.
- The University of Maryland graduates 86% of its matriculating Black males and 89% of its matriculating Black females, more than any other similar school.
It is now time for the Black alum of the University of Maryland to take their rightful place in shaping the next 100 years of Black life at our wonderful institution. Black Alums have amassed power, influence and money both nationally and internationally, and it is time that those resources are put to great use for the next generation of leaders, lawyers, engineers, scientist, businesspeople, artists and others seeking a top-notch education.
Because many alums identify more closely with their classmates, fraternities and sororities and organizations than they the university itself, it can be difficult to determine how best to make a contribution to serve the next generation of Black students. Below are a few rules for giving that will help ensure your contributions can reach, and more importantly affect, the future wellbeing of Black students at UM:
Target your giving. If you want to help provide money scholarships for Black students, make sure your money is earmarked specifically for that purpose. Unless your money is earmarked, it can end up anywhere the university sees fit. Neither Bill Gates nor Warren Buffet give money unconditionally, so why should you?
Find a UM organization you care about and give through them. Give through a group focused on the community you seek to help. Such donations give that group more power and influence, and help them achieve their mission. In addition, those donations send a message to the university that this group is a force to be reckoned with. Giving through a specific organization also provides you with more opportunities to observe how your money is being spent, and allows you to play a greater role (if you want to) in helping that organization meet its goals.
If you had a bad experience with racism and bigotry while at the University, you are just as responsible to give to the current student population if you have the resources to do so. America has been a largely challenging experience for Blacks, but the Black students of 1951 – 1979 are as needed as the grads from 1980 to the present. You need to come see that your sacrifice was worth it. In 1951 if someone called you a nigger you took it; by 1989 the person who used such words was not tolerated by the University or the Black students. Now that’s progress!
Today’s students have a different perspective of race relations that we did, and our perspective was far different than those first UM pioneers in the 50s and 60s. But we stood on the shoulders of those that came before us, because their influence paved the way for the seats we took. We must use our influence to pave the way for today’s students, though our commitment to them in time, service, and money.
Don’t just give money. Be visible. Go to alum functions; go to football and basketball games. Volunteer to mentor a student. Provide internship opportunities at your job or business. The ability to help another person’s life turn out better is real power. Call your friends who went to school with you and encourage them to make their power and influence felt at your alma mater. Your network is your net worth.
Give out of love, not obligation. I appreciate UM for the opportunities and relationships it provided me. I choose to give to the university because I love the young people I may never meet, and relish the opportunity to positively influence the outcome of their lives. I encourage you, as fellow alums, to do the same. It is a blessing to be able to help others, and UM has helped me provide that blessing. Being a contributing member of UM alumni community has also has provided numerous financial opportunities and unforgettable memories.
But if you are reading this and weren’t lucky enough to have gone to the University of Maryland, I am sure that there is an educational institution that helped you (or could have), and the students there could use your help. These rules still apply.
The easiest way to get involved and implement these rules is to reach out to fellow alum that you see working hard for the university and ask how you can be of service. Other than that go to homecoming next year and experience what you helped to create.
Wishing you Wealth, Wellness and Wisdom