Today’s caller on The Money Gym “£10k In 90 Days” Challenge on our BlogTalkRadio show was Karen Jones, an award winning Dance Instructor and Choreographer, who has developed a unique style of teaching latin american dance, for fitness.  Check out her website at Live2Dance.co.uk.

Karen has developed fun, unique routines for people wishing to get fit by dancing, ensuring that you can dance alone, rather than with a partner.  Think latin american line dancing!  She not only runs successful dance classes locally, but regularly gets corporate business nationwide, where companies wish to put on fun fitness events for employees.  Corportate business can be worth around £600 for six one-hour sessions.

Karen’s plan is to license exclusive areas to dance instructors so that they can build businesses, with Karen’s help and support. She had sold two licenses so far, at £279 for the license for the area (is that per year Karen or a one off fee?) and then you can buy the Business Support Package for a further £279, and then you pay between £35-50 per month, for access to a membership site that offers further support.

Luckily for Karen, Judith has a wealth of experience, being a partner in www.TheCleaningBiz.com, a successful cleaning company that Judith perfected in Fulham, then licensed on to over 20 different areas so far, supporting each licensee to build their business locally.

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• October 19, 2009 -- £10k In 90 Days Challenge | Day 1 | Champagne

Today’s caller on The Money Gym “£10k In 90 Days” Challenge on our BlogTalkRadio show was our Really Useful Internet Day’s lucky winner of a Boardroom place for 2009/2010, Suzanne Barnett.

Suzanne is an experienced trainer and owner of a training company, previously selling all kinds of software and computer training into the corporate market, which, in spite of an excellent reputation, for obvious reasons has found the going pretty tough recently.

On one of her first Money Gym weekends, Judith and I were able to encourage Suzanne to think about moving away from the corporate market and aiming her company services at small business owners who are faster at making their minds up, in charge of their own budgets and generally in some sort of pain around learning to use computers more efficiently to make more money.

Suzanne has subsequently teamed up with fellow Money Gym member, Eileen Bowley (who came joint second in our “Gold For Christmas” competion you may remember) to deliver high quality, on demand, virtual computer & software training.

At the recent “Really Useful Internet Day” the girls entered the Gary Vaynerchuk challenge, and after some rigorous coaching by Nicola on their brand, ended up buying on the spot the domain name http://www.KeepItSimpleSoftwareTraining.com (or KISST for short).

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Bit of Background: This is because Karen (and her partner Rich) own http://www.TimebombTShirts.com in Croydon, an established retail fashion shop and online store. Timebomb has been trading for 6 years selling emo, punk rock, gothic and metal clothing, footwear and accessories. Classic brands such as Alchemy, Darkside Clothing and Living Dead Souls sit alongside the new breed of emo-punk clothes like Iron Fist (Check out their killer heels!), Poizen Industries , Hell Bunny and Rock Addict.

Punk Rock fashion has been in the headlines since 1977 and still the goth accessory trends create a stir in national news.  The intriguingly named Shag Bands have been featured this week (mid-October 2009) in The Sun and The Daily Mail and have doubled Timebomb’s unique visitor traffic in September as their tightly targeted product review site ShagBands.co.uk ranks No 1 in Google for the term and links to their main site for Shag Bands and custom printed T-sHirts.

Bloomin’ nice nifty footwork on the internet marketing front guys!

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Quick bit of background: MudHutTravel.com is all about unique, boutique holidays in South Africa;  the website is gorgeous with lots of lovely pictures, and it’s getting about 1200 unique visitors a month, with 400 of those being returning visitors, or 33% – a very good return rate.  Some, but we are not sure how many, are coming from a Facebook ads campaign Rob’s been running, spending £200 over the last month.

(Rob can you remind me how many clicks Facebook are reporting for that spend in the last month?)

From 1200 visitors, they are converting 5 into enquiries, a 0.41% visitor/enquiry conversion, which is good and I think it could be improved if they are willing to take phone enquiries, which means making the phone number more obvious.  From 5 enquiries, they have converted an impressive 3-4 (or 70%) to sales with the average profit per sale running at around £450.

This means their front-end sale turnover was worth £1575, not counting any extra services or experiences they offer their customers, they are converting 0.29% of their unique visitors to sales, and each unique visitor is worth £1.31.

If their adspend was £200 for x number of clicks from Facebook, they can work out what it cost them to get X number of visitors to the website.

If you know what each unique visitor is worth on the front end, and what it costs you to get each unique visitor there, you can ramp up your adspend, providing you keep a check on conversions holding up at each stage of the process.

This is the first holy grail of most small, start up businesses – to know what your basic statistics are.

However, when I looked at Rob’s website, earlier in the year, drawn by the great domain name, I found it…..

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Today’s caller on The Money Gym “£10k In 90 Days” Challenge on our BlogTalkRadio show was Yvonne Halling with her champagne related business http://www.MadAboutBubbly.com

Quick bit of background: Yvonne’s husband Jiles is an expert on Champagne and among other parts of the business, like corporate champagne tastings, they own a beautiful house in the Champagne region of France which is available for holidays, sleeps 12 and rents for £1500 a week or £125 pp if you have 12, or £250 for the week if you only have 6 of you.  Very reasonable and it IS lovely, having been Yvonne & Jiles’ home previously.

Their website is currently being overhauled by Marion Ryan, Money Gym coach and blog/web expert so that’s coming along and looks great.  This will give them the flexibility to add / change the site whenever they like and will be very search engined friendly (search engines love blog sites!)

Jiles has written an ebook which is garnering rave reviews, and they are working on a follow up DVD right now.  They already have a number of videos on YouTube which I found by searching “mad about bubbly” although their channel is called http://www.youtube.com/user/jileshalling (see below for my comments on improving their branding).

We established on the 15 minute radio show that their fastest route to making “£10k In 90 Days” was to get let their house in Champagne for 7 weeks out of the 12 of the challenge period, and we came up with the idea of an virally marketed, online competition, using Social Networking via Twitter, a Facebook page and ideally joint venture mailings, where people can win a week in the house as a prize.

I also worked out that, if they sold 5-10 ebooks a day, they would make an extra “£10k In 90 Days” especially if they pre-sold the DVD bundled with the ebook, and that I would be looking at a Google Adwords campaign to drive extra traffic to the ebook sales page…….more on this below.

As time was extremely limited on the radio show, we have decided to take the follow up onto the blog here, where I will outline our suggestions, and my proposed plan of action, Judith can contribute, Yvonnne can add her thoughts, and get coached over the next 90 days to make the challenge actually happen!

What fun!

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Every instinctive entrepreneur or property investor knows in their bones that 2009 presents a once-in-a-lifetime opportunity to make more money in property than you ever dreamed possible. That’s if you are well informed and have the brass neck to go against the tide! Come and meet us; we are doing just that. It’s our way. Who makes money following the herd?

And, mindful of the current credit crunch “crisis”, these property professionals and investment advisers have found ways in which we can invest for little or no money down, or learn to buy property like that ourselves, whether you have £1, £1,000 or £10,000.

Just ONE of our speakers is the dynamic Rick Otton from Australia, who taught David Lee, who taught us, how to buy UK property for just £1.  Yes it is possible and we are all doing it all over the country.

Rick Otton of We Buy Houses. Along with David Lee, the Cashflow Investor, Rick is the guy who taught us how to buy houses for £1. Several of our clients have already made it work and I work alongside those people together with my lawyer at our Property Boardroom. Rick’s a straight-talking Australian and we have invited him to give our Keynote speech just after lunch on the day. Rick & Dave will be offering an opportunity to go to their upcoming Bootcamp on 4/5th April in London and making a special offer to our clients on the day only. Keep that weekend free, you will want to go.

Here is a recording of a recent webinar where we introduced some experienced UK property investors to the concept…..hope you enjoy it!

[podcast]http://www.themoneygym.com/audio/2009rent2own.mp3[/podcast]

If you want to come next weekend to our Property Extravaganza to hear Rick speak live, and meet us all, book one of the remaining few seats here

http://www.themoneygym.com/events/property

If you want to learn this system from Rick and Dave, like we all did, but can’t make our day, you can attend his UK April Bootcamp here:

https://wbhuk.infusionsoft.com/go/londonlive/moneygym/

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• April 20, 2009 -- Board Meetings, Blog Disasters & Brilliant Reports

Time to listen 6:44 or read the written version here >>>

[podcast]http://www.themoneygym.com/audio/2008aashowerstory.mp3[/podcast]

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• March 13, 2009 -- 37 Reasons | The Good News About Property Part #2
• March 11, 2009 -- Money Gym Property Investors Hope to Raise £4,500 for The Big Issue!

[podcast]http://www.themoneygym.com/audio/2008aareturnoninvestment.mp3[/podcast]

Written Version:

When you first get interested in Wealth Creation one of the first questions is ‘So how do I find these investment, property or business opportunities’?  A little bit later, you will find that you are overwhelmed with all the possibilities and opportunities are jumping out at you from every corner.

So how can you tell which ones to pursue?

If you have read Rich Dad, Poor Dad by Robert Kiyosaki, you will know about the ‘Does it Eat Me, or does it Feed Me’ question and it’s a really useful first yardstick of how good a deal may be.

Does it put money in your pocket or take money out of your pocket?

How long will it tie my money up for?

If you have to invest some money to get to the opportunity, how much, for how long, and what will your return on that investment be by the end of the first year?  This is known as your Return On Investment or ROI.

We are often asked, by potential clients, what their ROI will be, on our membership fees, and how fast will they recoup them.  Before I tell you our answer to that, let me go into “return on investment” a bit further as it’s important that you understand this fully.

The useful thing about the ROI model is that it can be used to compare any potential wealth creation activity, to compare a property deal with a business deal, a stock market investment with an internet opportunity.

If you can see that something will be putting money into your pocket within a year, and there is another deal that won’t, which one will you go for?

If you can see that one deal will return you 10% within a year, and one will return 30% , which deal is the more attractive?

What about one deal where the return will be 30% but will take you longer than one year, and be harder work, against a deal that will return 20% but start returning in six months and is safer?

This is where many new investors and entrepreneurs come unstuck.

The first way they come unstuck is because they don’t set a value on their time.  Because they have a lot of it, but not much money, they don’t tot up how many man hours they will be putting into a new business.  They don’t work out what else they could be doing with those hours (earning some cash!) and so they discount their real investment into the business and value it at zero.  Bad move!

They don’t work out their strategy and stick to it;  so they alternate between fear and greed, much like the stockmarket shows signs of occasionally, and go for the riskier, harder deal for a bigger return, instead of the safer, easier deal with a slightly lower return.

Think about how many of the second kind of deal could you do, with less effort, less stress and the faster returns?

The other thing they do is try to ‘bend’ a deal to work for them, rather than just going to look for another deal that does, effortlessly.

My ex-business partner, inspirational speaker Gill Fielding, says that she would always rather have the easier deal, leaving her time to get her nails done, rather that one big difficult deal where she would have to really work for her money.

And as someone who has ‘bent deals to fit’ on many occasions, I now have to agree 100%.

CREATE YOUR ROI YARDSTICK

The first thing to do is create a yardstick for any deal you are considering.  The ROI figure can be applied to anything and you can compare like for like, even if the deals are very different.

How much profit will a deal make in the first year, multiplied by 100, divided by the amount of money you are going to have to invest (or the value of the time you will be spending), to acquire that profit.

That, roughly speaking, is your return on investment expressed as a percentage.  A house that costs £50,000 and will generate £2400k per annum of rental income profit, after expenses, roughly generates a  4.8 % return on investment.  (Not to be confused with rental yield, which is different again).

If you think that the property may grow in value by 10% that year, then add £5,000 to the £2400 rental profit, to find that your ROI is now 14.8%.

Compare that with a similar deal, where you can buy a business card printing machine franchise generating £25,000 per year profit and you have to put in £75,000 to acquire the business.  33.3 % ROI and you have to go round emptying the money.  Worth it for those returns, you say?

But what if you had an 80% mortgage on the property, and the interest repayments were covered by the rent, still leaving you with the same rental profit per annum?

You have spent £10k to acquire that profit, you have a profit including capital appreciation of £7400k so your ROI is now 74%.

And no work for you, in the form of the money collection.

But whichever way, both returns are a bit better than the building society returns and both are “Feed Me’s”.

Use your yardstick, don’t change the goalposts and choose opportunities to fit your strategy or plan.

IN BUSINESS ALREADY?

If you already have a business, think about the startup costs and how much time you spent setting it up.

Are you getting a 35% return on your investment, year on year?
Will you get a 35% return on your investment in ten years even?

What is your exit strategy?  Are you going to work in your business till you drop, or will you eventually sell it?

Would anyone invest in your business right now?  Would you?

Would it sell today and if not, why not?  Would YOU buy it?    If not, why not?

These could be some of the most important questions you ever ask yourself about your business.

We have a visual “Return On Investment” model in the property module at The Money Gym Club – you can adapt it for using to evaluate business opportunities.  In fact, you can use it to compare any opportunity – like with like.

If you are thinking of setting up a new business, think about the projected return on your investment and what your exit strategy will be – how will you get your money out again?

Most entrepreneurs think that they have to sink everything into their business in terms of time and money; this shows commitment after all. A serious businessperson, however, would be planning to get their money out again as soon as possible, with a good ROI, while leaving the business to thrive healthily and continue to pay them dividends based on profits.

Buy “E-Myth Revisited” and “Rich Dad’s Guide to Investment” and devour them.  Make notes, underline, and take on board their wisdom.

Your business will never be the same.

THE MONEY GYM ANSWER

So, what is our answer to the Money Gym ROI question?

Judith says “By the time they ask this, I usually know quite a lot about them, and the things I am looking for are

1.   Are they bright enough to understand what we teach

2.   What is their preparedness to take action (motivation) for
whatever reasons

3.   Do they have any time – to do the work and take the action – are they willing to read some books and turn the television off?

4. Do they have any equity – so can afford to get into property
investment – which depending on how much they’ve got can ensure their financial security and ROI overnight often

5.   Could they develop maybe, an enthusiasm for learning how to trade the stockmarket, which could soon match their take-home pay if they are in a job, or

6.   Are they self employed  or do they already have an
under-performing business which we can teach them to run much, much more profitably

So my short answer is “how long is a piece of string” and I tell them that, and why.

Then I go on to give them examples of the girl who made her boyfriend over £18,000 in pure profit in under a week after learning what we know about the internet, the chap who made over £80,000 in one lunchtime by just chatting to another member.

I tell them about the woman who is making in one week more than she used to earn in one month from her old business, and she’s doing it in under half an hour a day, rather than a 12 hour day, the dentist who had enough equity to become a multi-millionaire almost overnight – he actually did it in under six months – and who still asks us when he sees us “Am I a millionaire yet?” laughing as he does so!

What about the chap who recouped his entire Money Gym membership fees for a year, within 12 days of learning something at his first workshop, that he immediately applied to his business?

Most people get thousands of per cent ROI on their membership fees!  Judith says she’s STILL getting a return on her investment in Money Gym membership from 2003.

And a lot of the time we can show them how to pay for their Money Gym fee from OPM “other people’s money” so their ROI is infinity!!

An infinity return on investment!  That’s what the property investors get, when they are able to force up the appreciation of a property, re-finance it and get their cash out again.

O yes, that’s still possible, even in this difficult market.

The only people who don’t’ get an ROI, are the ones that don’t come to the calls, don’t do the homework or who take no action.  The one’s who don’t listen, who hang onto their limiting and negative beliefs or allow others to influence them accordingly.

The one’s who don’t show up, in fact.  But Judith’s getting tougher at weeding those clients out at the beginning!

If you think you would show up, we would love to work with you in 2009.

http://www.TheMoneyGym.com/gold

Warm regards
Nicola

why not secure your Money Gym Gold place for 2009, at 2008’s membership fees, and be one of the 20 people to get the special bonus “Membership Site Bootcamp” worth £1750.

Join people like Shaun and Jody who are creating their very own membership sites right now at

http://www.WiiHealthZone.com
http://www.TheBlazingBBQ.com

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Check out the lively 1-hour preview webinar call we hosted with Peter here

[podcast]http://www.themoneygym.com/audio/2008peterwoodhead.mp3[/podcast]

And then you can watch the full video set of this workshop at no charge, by registering here >>>

This post was sponsored by the acclaimed Money Gym Gold one-to-one coaching programme -
now enrolling bright energetic people (for January 2009) who want to change their financial lives for ever
http://www.themoneygym.com/gold

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