How to Work a Lot Less and Make a Lot More Doing Coaching/Consulting Work

(LONG POST WARNING!!)

If you're a coach, consultant or course creator, and you are getting paid on an hour or monthly basis, this post is a mandatory read! IMH

I use Skool for the paid members of my community. BUT, I have a very different approach.

I've been using a model over the past 12 years that I think can work for anyone. IF they take the time to understand and implement it.

I call it Dynamic Equity Integration. Here's an idea of what it is and how to implement it. First off, it's NOT revenue sharing. Revenue sharing is a deal where you get a piece of the action for a specified period of time. Equity is where you OWN a piece of a business forever. In my case, I have deals structured with my partners (formerly clients) so that even if I get "hit by a bus" (our family euphemism for DYING), my kids continue to get paid.

If you don't have at least a few of your contracts with your clients/partners set up this way, you need to grab a pen and paper and take notes!

Here's how this all started.

For many years I ran around the country and around the world doing speeches and seminars. Mostly my own self promoted events. At the end of each presentation I'd make a pitch for a package of information ranging from $1-$5k.

I made good money, but I was frustrated. Very few of the people who bought my materials implemented what I showed them how to do.

About 18 years back, I switched up my model. I started doing week-long bootcamps at my house in Las Vegas. I would bunk up to 6 people at my house. I'd feed them and teach them my model. They left my place with everything in place to launch their own info product business. Much to my chagrin, this still didn't work. Even giving them a detailed and specific roadmap, virtually NO ONE implemented what I taught.

Again, super frustrating. I was charging them $3-$5k each, but I felt like crap. People were giving me good money but not getting real value.

So . . . I switched it up again.

Starting in December of 2009, I started doing equity deals with subject matter experts. It started with someone who attended one of my bootcamps. This time it worked . . . for both of us.

Why is this important for you?

The system I'm about to show you can and will dramatically change your business. You'll work less and make more. Most importantly, if you want to build a legacy for yourself and your family, I'm telling you, this may be your ticket~

Here are the 7 steps to make it happen. I'm laying it all out. I'm not holding anything back. This way, nothing will be left to chance!

Step 1 - Understand what Equity Is

In a nutshell, you find someone to set up an equity deal with where you get paid for the exact same help and advice you are doing right now. BUT, for a lot more money . . . long term.

This last point is critical. If you're not currently generating a decent amount of monthly revenue, this probably won't work. Why not? My mastermind coach,

@Oli Billson

, (the same guy who recently posted an amazing piece about masterminds), calls it the "traunch". That's the time it takes you to start generating positive cash flow from a given business venture where money is flowing out.

My system will take some time. But, if you have the cash flow to defer a portion of your income, this will pay huge dividends for you and your family long term.

Two important points here. First, you don't have to change your existing business model. You can "bolt this on" to what you're already doing. All it takes is some simple modifications which I'll explain shortly.

Second, you don't have to do this with everyone you work with. You can selectively pick and choose whom you decide to offer this deal to. In fact, you should be kinda picky. Again, I'll explain later in this post.

If you feel as if you're working too much and not making enough, this may be exactly what you're looking for. It was for me.

The contract and business model I'll share with you later is the exact same one I've been using for the last 12 years with amazing results.

Step 2 - Choose the Right Equity Business Model

Every equity deal you do doesn't have to be exactly alike. Mine are fairly similar because I've done these deals almost exclusively with start up clients.

Virtually all of my deals are a 50-50 split of net profits.

If you have an existing "stable" of clients, many of them are probably not start ups. It therefore might not be fair to ask for a 50-50 split of net revenue. You never want to have your partner (I used to call them clients as well) feel as if this deal isn't fair and equitable.

Before I finalize a deal with someone I usually say something to them like: "Imagine if 9 months from now and you have to write me a check for $20,000. If I've helped you double or triple your business, will you be OK with that?" I want to make sure that I'm providing sufficient value that my partners are not just pleased, but delighted to write me big checks on a monthly basis. BUT, I also want to mentally prepare them for this eventuality.

What's the "correct" percentage to do use for these deals? Without knowledge of your specific situation, I can't give you a precise answer. But, I can you give you a range and you can figure it out from there. Never accept less than 10% of the net. On the flip side, never demand more than 50%.

When working with a start up, shoot for 50%. Any others, somewhere between 10-50%.

Step 3 - Finding Equity Deals for Your to Do

Where do you find these deals?

From a variety of sources.

Your quickest and easiest way to find them is amongst your existing clients. I've seen many people be able to transition clients from monthly or hourly coaching/consulting clients to equity partners.

Why would they be willing to do this?

First, you have now just made your compensation a variable, rather than a fixed cost in their business. Intelligent business people will want to listen to a potential deal that's structured this way. If they pay you a percentage of the dollars you make them, your compensation is tied to results.

Might they pay you more over time. Absolutely. BUT, you have a vested stake in their business. You're also adopting a fair amount of risk on your part. More about this later.

Where else can you find equity deals? Your existing social media friends. I'm certain that if you're in this group you could find 2 or 3 people fairly easily to do a deal like this with. Take a careful look through your Facebook and LinkedIn friends. Who would be a good fit to work with you on this basis? Talk to them first.

If you do generate leads through advertising of any sort, keep the equity deal in your "back pocket" to offer to certain select people who fit the right criteria. For me, this would be people just getting started (or thinking of getting started), who I feel have excellent upside potential and I feel are worth the risk.

For every 10 equity deals I do, 1 is a homerun, 2 are bases hits and the rest are strikeouts. This is not a guaranteed, make millions kinda deal!

Step 4 - Splitting up the Responsibilities

If you do an equity deal like I'm suggesting, you'll need to decide WHO does WHAT. Without a clear delineation of roles and responsibilities, you'll end up with a mess. Let's be honest, you'll still end up with a mess every once in a while . . . but that's business!

To start, always try to partner with people who have complimentary skills to your own. Partnering with someone who has a similar set of skills is a bad idea. It's a prescription to arguments and conflict. You don't have to be completely different, but you should be different enough to capitalize on both of your strengths.

Think Apple. Wozniak and Jobs were very different people. One was much more the front man and the other was behind the scenes. Each took on the role that matched who they were.

If you don't know your potential partner very well, you may want to consider taking a personality profile test to see who would be better at doing what. I like the Myers Briggs test and have used it myself with potential partners.

Both your and your partner should be analyzing each other in two categories. Skills and personality. What they can and can't do is as important as who they are. You may be a great match with someone in the skills area, but unless you have a personality and values match, you shouldn't do the deal.

Before putting anything in writing, you want to have both you and your potential partner create a list of the things you do very well and the things you suck at. This will help to create the eventual list of the responsibilities each of you have before you sign on the dotted line. As far as the personality side of this equation, that's more a of a "feel" thing.

Always be prepared to walk away if you don't think or feel there's a good fit. I hate to be vague about this element, but it's true. Listen to your gut on this one.

Step 5 - Pitching the Deal

After you've put together the items in step 4, you'll need to set up an in person or virtual meeting to "close" the deal with your potential partner.

Even writing the words above feels kinda weird and a bit "off". You really don't want to work with anyone you need to hard sell on this concept.

Instead, go into this meeting with an attitude of "if it's a good fit, let's do it. If not, let's not". Any deal in which you have to do a sales job on a potential equity partner is probably not going to work out.

By the end of that conversation, be it in person or over a Zoom call, it should feel both natural and comfortable to agree to work together.

Step 6 - Getting the Agreement Signed

You should not start working with an equity partner without a signed agreement in place. Early on, I blew this one. I can give you at least 3 instances where this happened. In all of them I got to work on things before a contract had been signed. I regretted it each time.

After the 1st episode, I swore I would never start working until the agreement was signed and in place. I'm a slow learner. It took me at least 3 times to not do it again. Don't follow my lead here. Do NOT start work until a signed agreement is in place.

As far as the agreement itself, here are a few key things to remember:

1. Keep it simple and NON legalize

2. Make it just 1 page - anything more will cause someone to want to call a lawyer.

3. Clearly lay out who has which responsibilities and who does what

4. Make sure you have a provision for what happens if you get "hit by a bus"

5. Set it up so that if you're not around your heirs/kids continue to collect a regular check

In my case, I have it set up so that 10% goes into a trust that my kids will eventually control.

Step 7 - Set, Track and Optimize the Target

Your final step is to come up with a target amount that you are your partner are aiming for. To come up with this number is fairly speculative. I always refer to it as the R.E. Method. The method of rectal extraction. Yup! This number is pretty much a guess, but you should set a number, even if it has to be revised later.

Next you have to put the systems in place to track your numbers that you and your partner generate. One of the only signs I had up in my office for many years read: "Measurement Eliminates Argument". I strongly believe this is still true!

I recently interviewed Chris Mercer (MeasurementMarketing.io) on this topic. This is his primary domain, not mine. I'd contact "Mercer" (what he prefers being called) to set up any of your tracking systems. He's da man!

Once you're generating revenue, and tracking the numbers, you'll be able to look at them and make adjustments to improve them.

Without good data, you're shooting in the dark!

Conclusion:

Seriously consider doing equity deals. They will help you make more money with less stress. You need not try and do these with everyone you work with, but have it as one of your options. As a result of doing what I've showed you here I'm often embarrassed as to how little work I do every week compared to money I generate. I hope you find yourself in the same "predicament"!

If you have any questions, feel free to ask away. I'm happy to answer them!

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