So we’ve come to a few conclusions thus far


After a few days of seeing how our sales reps have been doing in the field, we were able to come to a few conclusions on what we should expect from this type of business and what needs to be done.

  1. The thought/idea of being able to make good money with 5 or 7 reps out in the field is completely out of touch with reality.  Right now we have 6 employee’s, 3 of which are working, 1 who is working but is only part-time, 1 who is part-time and not working, and 1 who just hasn’t done shit since day 1.  It’s pretty safe to assume that this is most likely going to be the case with future hires and I should have known this from the beginning.  In every single sales job I have worked it was always the same situation.  10 people would get hired, maybe 4 would last and out of those 4, 1 would be a rock star (top producer) while the others did barely enough to get by.  It seems like we will have a similar scenario with our company.  Ultimately, we are probably going to need a team of 15-20 people to make any real money.
  2. We both pretty much agree that there is no 7 figure a year earnings potential with this business.  Like I’ve mentioned earlier, 250k seems to be an estimate on the high end if everything goes well but I don’t see us individually making more than that.  There is just no way that the numbers can get us to 750k – 1 million a year each as our current contract stands; which brings me to the next point.
  3. We WILL have to renegotiate our current contract somewhere down the road.  Right now both my business partner and I want to have a large/strong sales force, and really blow the doors off of this thing so that we have some negotiating power in 2011.  But the bottom line is we are going to have to renegotiate our agreement in the beginning of next year.  Something as little as a 5% increase in our split could make a world of difference.  Instead of only making 250k a year, now we’re making a half million a year, which to me sounds about right considering the amount of sales and amount of money we’d be making the other parties involved with this contract.
  4. Even if I’m making 250-500k a year, I still won’t be content with those earnings and the reason being is that it will still take me several years to save over a million dollars.  Once you factor in taxes and living expenses, I’m looking at 4-7 years before I’m able to save up my first million.  Remember, my goal is to have a million dollars liquid in the bank by the time I’m 30, not just earn a million dollars.  I don’t think I’ll hit that goal by 30 the way things are going, but if it takes me until I turn 31 or 32 I won’t bitch.  As of right now, 4-7 years is way too long of a time period and my goals are set higher than that.
  5. If we want to make the big bucks, 7+ figures a year, we are going to have to branch out and get involved in other things.  My business partner keeps saying real estate is what we need to get into once this gig starts generating some income and I agree with him, but we have no idea of the specifics of how we plan on doing this.

 

All in all things are going great, although I’m kind of upset at the fact that the first business venture I’ve started, which has actually taken off with little to no speed bumps, turned out to be one which isn’t that lucrative.  That’s just my fucking luck I suppose, but good things happen when you have some cash to play with and hopefully this business will give us the cash to invest in opportunities that have very large income potential.

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