Did You Know That YOUR Business Is EXACTLY Like AT&T?
How can that be, you asked? AT&T did $146 BILLION in revenue in 2015, and you did…much less!
I learned a valuable lesson many years ago when I was transitioning from my weekly newspaper in my hometown in Indiana to a major metro newspaper in New York.
Having just arrived at the newspaper with a little bit of fanfare because I had done such a nice job as the publisher of the weekly newspaper, I was expecting a little hazing and maybe even some resentment from the older editors at the paper.
After all I was just 29 years old.
So, at one of our first news meetings with a dozen of editors in the room, the city editor glared at me and asked, “What’s the biggest difference that you see coming from your tiny paper to this big paper?”
He meant to intimidate me, but instead I said, “Zeros. That’s all. The process is the same: We gather news. We meet deadlines. We sell advertising. And we do it with a lot more zeros.”
Of course, I was being a smartass, and expected to be chastised as an arrogant little jerk who pushed back against the established authority.
But as I glanced at the managing editor sitting at the end of table, his smile confirmed that I had spoken some truth to the crusty city editor.
I always like that managing editor.
Business is all about the zeros.
More zeros on the revenue than you have in expenses equals positive profit.
That’s our goal no matter what business you are in. More zeros equals more money!
After nearly 20 successful years in the newspaper business, I stumbled into a new world as a consultant. And I became fairly accomplished there as well.
As an independent consultant with AT&T in its various incarnations for 17 years, I was successful because I can break down large processes into simple concepts.
While I was there, I started NAMS which quickly became the next phase of my life.
Something I recognized right away was that recurring income would be the difference between success and failure of my business.
I looked at AT&T as my model.
I was a middle-aged consultant with no additional business of my own yet I was modeling my business after one of the top five companies in the world. When I told people that, they said that I had lost my mind. I would never have a business as big as AT&T.
They were right. I didn’t want a business as big as AT&T. But I understood the concepts behind that business and how they could be applied to my business.
Think about it.
There is one essential element of every successful business, even businesses that become huge institutions and touch the lives of every person in America.
That is recurring revenue.
One day, I was sitting in a strategy meeting at AT&T when I realized that I was participating both as a consultant and a customer in the world’s largest membership site.
What is a membership site?
It’s a recurring income machine that delivers consistent revenue in a timely fashion, and if done correctly, with consistent growth.
Think about AT&T. Or Verizon. Or your cable company like Comcast. Or your satellite radio like Sirius XM. Or your pest control company that shows up every month to prevent insects from taking over your house. Or your security company like ADT.
All of those companies charge monthly recurring fees, and are sometimes bound by one, two, three or five year contracts.
As a consumer, we like to purchase services with a one time fee.
As a producer, you want to sell services with a recurring fee.
Why is that important?
Not only does recurring fee memberships give you the option of creating regular base income, but it also funds support and further development of additional products.
If you’ve got a business doing $150,000 a year, what’s the difference between your business and AT&T’s.
Its six zeros. That’s all.
The processes are the same. You create an offer, sell the service using a recurring revenue model, and provide the value and support.
In 2015, AT&T took in over $146 billion in revenue.
That’s one heck of a membership site. Of that $146 billion in revenue, about $131 billion of it was in the form of services – or think recurring monthly income.
The reason I’m bringing up AT&T and other companies like it which live at the top of the Fortune 10 companies is that all of the processes and all of the revenue generation activities are the same as yours.
Study the large companies that are rolling in cash because you can build that kind of cash in your business as well if you focus on the successful recurring income models that day have employed.
Do not be intimidated by numbers.
What does it take to create $100,000 in recurring revenue?
That still seems like a lot of money each month to go from scratch to $8,333.33 a month. So let’s break it down further.
To hit the monthly revenue goal, the two most important numbers become the price and number of units (or members).
If your price is $37 a month, you want 225 paying members per month.
That’s a lot of members. And if you have zero right now, it seems impossible. But of course it’s not.
Or you can look at it differently and realized that it is just numbers.
If you’re focused on building your recurring income, with recurring members, then you have to focus on your prospect pipeline.
And that’s why at MyNAMS Insiders Club, we’re always focused on teaching tasks that help you fill your pipeline.
When you learn to fill the pipeline consistently, and on autopilot, then you are scaling the business.
Scaling the business is the very definition of adding zeros.
The NAMS business vision is to increase our paid membership to more than 15,000 members. Doing that means that we’re adding zeros to our revenue, profit, expenses, and research and development.
Like AT&T, you and I have businesses that require continuous growth in revenue and a healthy pipeline of fresh prospects. If recurring revenue is not on your business plan, finding new customers every day to put food on the table is the most important thing you can do, and the most stressful.
You’ll be loaded with stress, always focused on the urgent rather than the important, and probably serving your members poorly, which, of course, reduces the number of members that you keep.
Recurring income in the form of memberships and other streams of income is the absolute key to growing your business and adding additional zeros.
On Tuesday October 18th join us for a free training called “12 Steps to a Better Business” and let’s make sure your business is set up for success!