Secrets of Relationship Income

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Secrets of Relationship Income

Episode Summary

Most businesses sell one product or service to their client and then they move on to the next client to sell the next product or service. These businesses are missing a huge opportunity.

Relationships are the key to long term sustainable success for any business.

In this episode of the Valtimax Podcast you will discover the true value of your relationships with your clients.

This information is critical for doctors, lawyers and all business leaders because there is hidden money right in front of your eyes. Listen today and immediately begin unlocking the value in your client list.

Transcript

Click the link below for the transcript of this episode.

Valtimax Podcast: Secrets of Relationship Income

Secrets of Relationship Income

Each and every single day you start at zero. Each and every single day you have to go out and find clients, new patients, new customers and you have to sell them new products, new services and new experiences.

No matter how hard you worked today, you know you’ve got to do it all over again tomorrow in order to feed your family. You’re wondering why you work so hard, yet at the end of the week you know it starts all over again on Monday morning.

How do you cope with starting at zero each and every day, each and every week, each and every month? It doesn’t have to be that way.

Today we’re going to discuss the secrets of relationship income and this will unlock the door to a whole new world for you.

If you’re ready to make a great living and make a great life you need to be focused on the next 15 minutes because the Valtimax Podcast starts right now.

This is Dave Lorenzo, back with another addition of the Valtimax Podcast. That’s right, we’re coming at you today to deliver the secrets of relationship income. Each and every single one of the relationships you’ve built over your business career has value and I guarantee right now you’re not taking advantage of the value of these relationships.

We’re going to show you how you can, today, in one fell swoop, learn to take advantage of the value of those relationships.

Before we get to that I want to encourage you to go to iTunes and subscribe to the Valtimax Podcast. I want you to do that today. Go to iTunes, download the podcast app, and put in V-A- L-T-I-M-A-X in the search bar. If you do this from your iPhone or your iPod and you’re connected to the internet you’ll notice that a little window pops up and it says “Do you want to subscribe to the Valtimax Podcast?” You click OK and you’re off to the races.

You can subscribe from iTunes on your desktop as well. That means you will never miss an episode of the Valtimax Podcast which is downloaded each and every single Monday morning.

You can also go to valtimax.com, V-A-L-T-I-M-A-X, for all of the past episodes of our podcast. You can go there for all the past episodes of our videos which are released on Fridays and all of the past articles that we’ve developed which come out every Wednesday.

In addition, our videos and audio programs have transcripts available at valtimax.com. You can use these transcripts, print them out, use them as checklists in your business. All these resources are available 100% free for you at valtimax.com, V-A-L-T-I-M-A-X.

All right, let’s get into this, “Secrets of Relationship Income”, and this concept, when I discovered it, transformed my business. Why? I was doing what every lawyer I know does, what every doctor I know does, what most corner store owners I know do, and that is I was

going out looking for a new client each and every single day. Every day, every week, every month every year I started from zero.

I had to go out and find new clients all over again, do the work, collect the check and move on. That’s what so many people do, and they don’t realize that there’s a whole world out there that allows you to start with a foundation of income each and every single day, each and every single week, each and every single month, each and every single year, and we’re going to unlock the door to that world for you right now with the secret s of relationship income.

All right, we’re going to start with the premise that there are two things that you need to focus on in your business, two things to focus on when it comes to delivering income, delivering a bottom line profit to your business. Those two things, if you’re a professional services firm, or even if you’re a corner store owner, those two things are labor intensity, how hard is it to deliver your product or your service, and the second thing is relationship value, do you have relationships with your clients, with your patients with your customers?.

Those two things are the key to unlocking the secrets of relationship income. Labor intensity means how hard is it for you personally, the owner of your business, the owner of your professional practice, the doctor in your medical practice, how hard is it for you each and every single day to drag some money to the bottom line?

Is it difficult? If it is, you have high labor intensity and most likely you have very low relationship value. If it’s effortless for you to drag money to the bottom line then you are probably working in a position of high relationship value and low labor intensity.

Now, if you’re working in a medium state. if your labor intensity is at a medium level or your relationship value is at a medium level, some days are probably easier than others. Some weeks are probably easier than others, some years are probably easier than others when it comes to delivering profit to the bottom line.

I want you to think about that for a minute. Ask yourself the question, how easy is it for me to produce profit? How easy can my business produce profit? How easy can my professional services firm produce profit? If the answer is “Some days it’s easy, some days it isn’t” then you’re probably at a medium level of relationship value and labor intensity.

If the answer is “Really, really hard” you’re probably at low levels of both. Here’s what we’re going to do. We’re going to talk about how you can lower the labor intensity in your business and raise the relationship value to make it easy for your to consistently bring profit to the bottom line, make more money than you spend, and take more money home. How do we do that? OK. There’s four types, four types of income that you can derive from your business. Four types.

The first I call “Ad hoc income” and that’s what everybody’s used to. That’s what I used to do. That’s what I did when I first started my consulting practice. That’s what just about every lawyer out there does, every doctor out there does, every corner store owner does. That ad hoc income is income that comes from selling one product or service to one client, patient or

customer and then moving on. Sell one product to one customer, sell one service to one client, sell one medical procedure to one patient and move on.

Guess what? That patient goes his merry way, you never hear from him again, you’ve got to find another patient. You’ve got to find another client. You’ve got to find another customer. That’s very, very hard work, high labor intensity, low relationship value. High labor intensity, low relationship value, terrible way to make a living. Why? Each and every single day you start at zero.

Each and every single day you start at zero, you’ve got to go out and find new clients. You’ve got to go out and find new patients. You’ve got to go out and find new customers. No way you want to do that all the time. What do you do? You move on to the second type of income, and that second type of income is Repeat income”.

You develop a product that you can sell over and over and over again. You only have to make that product one time or you know how to make that product in a replicable way so that it’s easy for you to make. Your labor intensity’s lower. You develop a service that you can deliver in your sleep. You develop a service that you can deliver over and over and over again.

Different clients come in. You deliver that service but you know how to do it. It’s very easy to do over and over and over again. With lawyers, one of the ways we teach transactional lawyers to do this is company formations. A good transactional lawyer can form a company in his sleep, does the paperwork, boom, pushes it out, it’s over, but he needs to go find a new client then to form another company for. That is repeat income, OK? Repeat income.

You’re a corner store owner. You sell a widget. You stock 1,000 widgets, you know there’s demand for the widgets, you advertise, the people come in the door. Each and every single day you sell a different customer these widgets and it’s great. You don’t have to reinvent the wheel because you know what people want. That’s repeat income. What is the problem with repeat income?

Well, first and foremost the labor intensity’s medium because you’re still doing the work, OK? You’re still doing the work but you know how to do it. You’ve developed a formulaic system so it’s not high but it’s not low because you’re still doing the work, so it’s medium. The problem is the relationship value is really low because you’re selling this product, this service to one client, one customer at a time. You need to find a way to sell things to the same customer so you can take advantage of the relationship value, and that’s what we get when we move on to the next type of income.

The next type of income is “Recurring income”. Recurring income, it’s kind of like subscription income, and what that means is you have the ability to sell things to the same client. Your relationship value is slightly higher. It’s in the medium state and your labor intensity is slightly lower. It’s in the medium state as well.

Recurring income is medium labor intensity and medium relationship value. What that means is you get to sell something over and over and over again to the same client. Think of a magazine

subscription. Somebody subscribes to your magazine. You deliver great content. They continue to subscribe to your magazine year after year after year so you don’t have to sell them over and over and over again each and every single month.

Maybe you only have to sell them once a year. That is recurring income. It’s just like a magazine subscription, and if you can figure out a way to develop recurring income in your business, in your professional practice, in your medical practice you will have unlocked the door to developing fantastic relationship income.

All right, the fourth type of income is the holy grail of income, and that’s what we call “Passive Income”. This is income that comes to you without having to do any work on your own to develop the relationship and without you having to do any work to deliver the value to the client or the patient. What does that mean? How do you develop passive income?

Here’s how you do it.

If you’re a business owner and you’ve created processes and systems that work really well and you’ve developed and experience that really resonates with your customers then you get a sales force. You have a sales team go out and your salesperson sells your experience to your customers.

Then you have a delivery team delivering the experience to the customers and you the business owner take the income to the bottom line without selling or delivering. That’s low labor intensity, high relationship value. You deliver products and services over and over and over again even while you sleep.

Now, this is not infomercial even while you sleep. This is true business owner while you sleep. Think of Mr. Marriott, with 4,000, 5,000 hotels out there. People are checking in, checking out of his hotels each and every single day. The man reaps the reward of over a billion dollars, a billion dollars in personal net worth.

The reward comes to him and he’s not out pounding the pavement bringing people into his hotels. He’s not at the front desk checking people into his hotels. He’s hired teams to do that. You can do it on a smaller scale. You can do it in a business. You can do it in a professional practice. You can do it in a medical practice. So how do you do it?

We teach lawyers to do it in this way. Number one, we teach lawyers that you are the point of the pyramid. You’re the absolute tip of the pyramid. You’re the pinnacle. You only work on the best cases, you charge premium prices, but you have baby lawyers working on other cases each and every single day. The baby lawyers are deepening those relationships. They’ve got repeat business going in their relationships. They’ve got recurring business going in their relationships and that business is coming in each and every single day and you are working on one or two cases a year or three or four or a dozen, however many you choose to.

How do you do it in a medical practice? In a medical practice you’re the doctor. You own the practice. You have three or four other doctors that work with you. They get a percentage of the profits of the practice, based on how many patients they see, how many patients they bring in,

you get the bulk of the income, they get a salary and a percentage of the people that come in as a result of them and their relationships.

Now, I understand that doctors work differently with insurance companies and the insurance companies play into this a little bit. That’s a deeper conversation and we work with doctors to break free of insurance companies so that they don’t have to deal with that. Different conversation for a different time, but the example still holds true.

How do you do it in another type of professional practice? As a CPA how would you do it? You provide bookkeeping services let’s say. You have a dozen bookkeepers. The bookkeepers are out there doing the work. You have people who are out selling the bookkeeping work. They bring the work into the bookkeepers. The work gets done. The bookkeepers get a salary, the salespeople get a commission, you get the profit. That’s how you can do it.

This applies, this passive income concept, applies to any type of business. How can you make a great living and live a great life? How can you use this information to your benefit? You focus on developing services, products and experiences that lend themselves well to repeat recurring and passive income. You focus your sales efforts, your marketing efforts on developing deep relationships so that the relationship value is high and then you have low labor intensity because your products and services are designed for repeat, recurring and passive income.

That’s the secret to building a long term profitable business that you can sell for high value because the business can operate without the business owner and that is the golden nugget in our time together today. The business operates without the business owner so the business itself has value. Think about that for a moment.

If you’re a lawyer and you work on every case, the business has no value without you. If you’re a doctor and you have to see every patient, the practice has no value without you. If you’re a store owner and you have to work on every customer case that comes in you have to sell every product to every customer the business has little to no value without you. It’s the repeat, recurring and passive income ultimately passive income is the key that develops all the value in your business for the long term.

This literally, my friends, is the key to making a great living and living a great life. Go back and listen to this episode of the Valtimax Podcast over and over and over again and figure out how to make it work for your business. Regardless of who you are and what you do, you can develop this type of business, figure out how to make it work for you, that’s your challenge.

That will do it for this week’s episode of the Valimax Podcast. My name is Dave Lorenzo and I’d like your feedback and comments on this week’s episode.

You can call me at 888-692-5531 or email me at [email protected] Here’s hoping you make a great living and live a great life®.

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