Tag Archives: money

The Trap of Small

Don’t cut pennies. Grow dollars.  –LYnn Selwa

It’s important to know what the income and expenses are in a business. As Teresa Romain of Access Abundance describes, clarity may not feel good but ultimately it is empowering.

When the expenses are larger than the revenues, don’t spend hours trying to shave pennies off the price of one-time or rare purchases.

Saving that type of money is costly in time to research or comparison-shop the alternative choices.

It reminds me of watching my next door neighbor drive across town (about an hour round trip) to save 10 cents on $2 worth of sliced ham. Percentage wise, that’s a savings of 5%, but a time drain, not to mention the gasoline involved in driving the car. I figured it was a net loss, financially… she surely burned up more than 10 cents of gas doing it.

Respect your budget, and take the time you would have spent on researching (or driving) to send a few more prospecting texts or make a few more calls.

One extra sale can pay you a lot more than 10 cents. If you develop that relationship with your client or team member, it can lead to repeat sales worth hundreds of dollars.

I’ve noticed women seem to brag about how little they paid for something, while men seem to brag about how much they paid— the bigger, the better. Of course that’s based on the people I have observed and might depend on culture, and is not meant to pigeonhole people. In any case, it generates a question to consider… how do you and your friends compete (in a friendly way) about money?

Don’t feel obligated to participate in a contest proving how little you can be.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #trsc #thetrapofsmall #leveragedsales #partyplan #networkmarketing #mlm #directsales #money #savingmoney #ham

The METI ™ test vs. The gift-giving scheme

A secret-gift-giving scenario with a Christmas theme has resurrected itself on the internet this week. My goal is to show you how to decide if it’s legitimate.

The description: (how do I write this without triggering a fr@ud alert?) In the scenario, women are asked to send 1 gift of $X to a name they will be given, and there are promises of Y or more gifts in response.

Beyond the US Postal Inspection Service naming it as gambling and mail fraud, physical safety questions, and identification-privacy issues, I wonder why people fall for it (and why some still defend it, even after learning the police warn against it).

I learned from Mariah Nemeth PhD (author of “The Energy of Money”) that the #1 reason for such a decision is…. We humans look for shortcuts, a fast way to create the desired outcome. Our very human drive to “make my life simpler, better, as fast as possible” trips us up, especially when we encounter the subject of money.

But even if we set Dr. Nemeth’s idea aside, how can an ordinary person with no business-analysis experience tell the difference between legitimate requests and Ponzi schemes?

Before launching my first business in my 20’s, I had the same question.

Let’s look at three major sections of launching a business or a Commerce Structure ™ (which I define as a method of giving value, typically financial-based, and receiving some value of any type in response).

I call this the METI ™ Test:

  • YOUR Money
  • YOUR Effort
  • YOUR Time (preparation and after launching) until receiving desired result(s)

All creating a wanted result: Income of money (or other financial value)

I used capital letters to emphasize what you, as an investor or business owner, have to do from conception through reaching the financial break-even point, regardless of the size of your employee staff or distributor team.

Let’s take a look at three Commerce Structures ™ .

Franchise: Your Big: Money, Initial Effort, and Time Commitment. Product Sales Generate the Income.
Lots of time researching and interviewing before signing, lots of money before signup for legal paperwork, lots of money at signup (around a quarter of a million dollars is average), and lots of time and effort to staff and run in its first 3-5 years. You will be lucky to financially break even in the first 3-5 years. Product sales generate the wanted income.

Solo Professional (product or professional service paid via invoice): Your Low-to-medium Money Commitment. Your Big: Effort & Time. Product Sales Generate the Income.
Nearly the same time commitment as franchising, lots of money in education for the proper credentials and/or marketing. You ARE the business, so when you stop working, the money stops coming in. Product sales generate the wanted income.

Mom-and-Pop Retail: Your Low-to-medium Money Commitment. Your Big: Effort & Time. Product Sales Generate the Income.
Nearly the same time commitment as franchising, money at startup will vary, and creating ongoing profitability may be something that you’re continually juggling. Product sales generate the wanted income.

Here’s the pattern.

You must contribute heavily in at least one area, likely 2 or all 3, to successfully launch a business and get it self-sustaining.

Leveraged sales or independent personal distributorships typically require the highest contributions in the Time and Effort categories.

Now consider: How long would each require to cumulatively earn 6 times their initial financial investment?

I’m guessing in terms of years– not months  — for Franchises, Solo Professionals, and Mom-and-Pop Retail.

Let’s return to the secret-gift-giving scenario. The METI ™ test shows:

  • The commitment:  Low Money, Low Effort, Low Time.
  • The claim: Receive 6 times (or more ) your initial investment in two months.

If I described a business that way, would it sound realistic?

Probably not. (Because you’d be asking me, “What’s the catch?”)

For this secret-gift-giving situation, the only way I see money (or money-related value) enter this network of participants is through their initial investment (buying the gift then shipping it; it’s truly “input” when it is received by the other participant). There is a highly imbalanced input of 1 gift into the participant network generating an “income” of 6 or more from that network. Combined, these should signal caution about the stability and fairness-to-latecomers of the model. Adding the Postal Service’s and police’s warnings to the mix, I personally agree this secret-gift-giving scenario is illegal. If it was a “send x number of gifts and receive that same number in response” situation, that is much less questionable.

in summary:

When there is no “Big” commitment in any 3 of “YOUR” areas and your promised returns are significantly higher than your initial investments … and/or your income comes solely from other people’s initial investment, in my personal opinion it signals an illegitimate or illegal situation. In such a case, don’t realistically expect a fast, leveraged, high-quality return. (I am not an attorney and this blog does not constitute legal advice.)

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #trsc #METItm #METItm #greed #secretgiftexchange #secretgiftgiving #networkmarketing #mlm #leveragedsales #partyplan #directsales #marianemethphd #energyofmoney #commercestructure #commercestructuretm #ponzi #christmas

 

P.S. This METI ™ analysis also applies in other areas:

Earning a college degree: Big Money, Effort, and Time. Years to recoup 6 times the initial investment.

Bench pressing twice your weight: Big Effort and Time. I’m guessing years instead of months.

Investing in the stock market: Big Money or Effort or Time. Again, I’m guessing years (the less financial education, the more money and time are required)

P.P.S. I receive no compensation for mentioning Maria Nemeth PhD or her work, nor for any sales generated.

Don’t Throw Up.

One of my Facebook friends posted a link to an article regarding people who have large wealth and issues they face, with a comment of “Try not to throw up when you read this.”

I chose to respond in public, from my experiences & research, on his Timeline.

Here is my point of view, with a few corrections of grammar:

(It’s long and worth the read.)
(Pay attention to your emotions as you read… you’ll see why at the end.)

The issues raised in this article are relevant. I have been friends with several wealthy families over my lifetime. Two families in particular made it clear to their children they would be severely punished if said children taunted less fortunate ones or bragged about their wealth. (Those children attended my grade schools and were some of the kindest people I have ever known.)

Being judged for one uncontrollable aspect of their lives (being born to wealthy parents) is as damaging as being judged for other uncontrollable things: height, eye color, skin color, genealogy.

Some who have inherited large sums struggle with the ethics of how that money was created, and how one might invest or donate it to create the best improvement in the world. Some are wondering who likes them for themselves… or who simply likes them for their money.

Some struggle with addiction to alcohol, other drugs, gambling, or purchased intercourse because of huge pressure to behave a certain way combined with the easy access to the funds to buy the stuff in the first place. (Drug abuse happens more often with people who can easily afford to purchase it!)

Some struggle with a life purpose because they don’t have a built-in financial incentive to work for a living. Or they are stressed because of an abundance of choices of what field or work they want to pursue.

Some struggle with guilt because they know money can solve many problems and they know they cannot singlehandedly solve a large-scale problem. Some know they can easily afford to replace a “lemon” car, and they don’t want to insult others at work or in social gatherings by saying, “That’s easy.”

Some struggle with guilt or debilitating anger because the trust fund’s existence was not discussed and so the recipient feels overwhelmed and paralyzed when said moneys are revealed or received. In the case of inheritances, the money itself can trigger guilt, depression, or anger because it came in exchange for the life of a loved one.

Some are working to change the economic laws so inheritances are taxed more heavily and/or more economic opportunities are provided to the ordinary citizen.

A day after posting those comments on Facebook, I add these topics that popped into my head early this morning: the challenges regarding picking a spouse and hurt feelings that might arise over the signing of a prenuptial agreement. If one inherits a business, making financial decisions for that entity affects not only one’s immediate family but also hundreds if not thousands of employees and THEIR families.

And now…

A founder of a INC 500 company taught me an important lesson about money:

“If you judge other people negatively about the way they use their money, you chase away your own prosperity.”

So reflect on what you felt (emotions, any judgments) as you were reading my comments.

What can you learn from your own reactions?

I encourage you … don’t throw up.

–LYnn Selwa, “The Rocket Science Coach” ™

P.S. Silent & calm discernment such as “I would have used the money for _____________” is constructive because it helps you refine your personal money goals. It is a world apart in intention and mindset from a harsh judgment such as “You shouldn’t have bought that!”

#lynnselwa #lynnselwaTRSC #TheRocketScienceCoach #mlm #money #dontthrowup #prosperity #discernment #prosperityconsciousness #prenup #prenuptialagreement #inherit #intention