The below is a post from FBA Member, Andy Lamedman. Andy joined the FBA in June of 2010 and has stood out as a true professional who upholds the integrity of the industry. Thank you Andy for your insight and for sharing your experience.
Networking Pays… Big Commissions!
I have always believed in and heavily touted the power of networking. And still do… even more so now as you’re about to find out. For anyone that has ever wondered what the value of networking can mean to them, please continue reading.
Whether you go to a networking breakfast at 7:00 AM, or attend an evening cocktail mixer that starts at 6:30 PM, you’re investing extra time into your work day. So why do it? Here’s why:
A few months ago I attended an evening mixer and met a woman networking her business. We engaged in the obligatory chatter and exchanging of business cards. As is my custom, I followed up with a “nice to meet you email”, and my personal offer to learn more about her business in an effort to pass some referrals her way (I always start by giving). I then put her name on my monthly “drip system” distribution list to begin sending her my newsletters and other e-blasts.
One day, out of the blue, I received a call from her saying; “Hi, remember me?” Well, of course I do. She indicated she would like to learn more about what I do, and how I could possibly help her find the business of her dreams. Unfortunately, she hastened to say, that she did not have the requisite finances to invest in such a venture. However, she did say; she has a friend who might be interested in partnering with her as a financial investor to her “sweat equity” investment. And so we began the process…
Fast forward now to the close. We ultimately inked a deal where they are partnered in a Junk King franchise in Los Angeles, CA. And, I received a commission approaching $30,000 at first blush, with much more to come on the back end based on the structure of the deal.
Junk King had wide open territory in Los Angeles County. They sell their territories in blocks of 500,000 population sectors. My clients purchased four-blocks totaling Two Million population. We also negotiated the Right of First Refusal for the balance of Los Angeles County and the neighboring community Southeast of L.A. County known as the Inland Empire. As they exercise that right and purchase additional territories, the Franchisor will continue to pay me my broker fee referral commissions (yes, we have this in writing).
Additionally, my networking pal (now client and friend) subsequently referred me to her neighbor who is about to be laid off from corporate America and receive a sizable severance package. He too, is now looking to secure his future and we are taking him down the path to freedom, et cetera.
So, the moral to my story: Networking Pays… Big Commissions! I met someone that had interest but no money. She introduced me to someone with money. They formed a partnership and closed a deal that paid me a sizable commission, with additional commissions yet to come as they develop their business. Additionally, she introduced me to yet another lead that has potential to earn me more money yet again. All of this from someone that I did not pay a nickel for in terms of “lead cost”. This was a free lead… just from attending a networking event.
Further appreciation for closing this Junk King deal goes out to:
- Dennis Mulgannon, Franchise Development Director / Jung King: Dennis is the consummate professional and was extremely easy to work with. He’s efficient and very accommodating to both the client and broker requests. Simply a joy to do business with.
- Tom Mc Donald, President / IRA Rollover Solutions: Within 45-minutes of the initial introductory call with my clients, Tom outlined his services and fees, took the application and credit card number from my client and was on his way to expediting the filing of Articles of Incorporation with the State of California. He also set up a 401(k) plan in the name of the new corporation for the client’s new business, secured a third party administrator for the 401(k) plan, and obtained the Federal Tax I.D. numbers, for both the Corporation as well as the new 401(k) plan. Additionally, he handled all paperwork related to rollover funds making it easy and seamless for my client to gain access to his funds required to wire transfer to the Franchisor in a timely fashion. Not only was Tom knowledgeable, efficient and effective, he pays a broker referral fee of $1,500, which is 50% higher than his competitors.
- Eric Riess, Legal Expert Extraordinaire / Greesnfelder, Hemker, & Gale, P.C.: Talk about a Master Class. Eric provided the one-hour of free legal counsel we offer and within the first 30-minutes alone had fully educated my clients. He answered their FDD questions, reviewed their Addendums to the FDD that had already been verbally negotiated with the Franchisor, and guided them on how best to structure their Joint Venture Partnership Agreement between the two of them.
At the end of the day, all parties worked exceptionally well and in concert for the good of the ultimate result… putting a client in business!
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