*** Offline Gold - How a small $350 job lead to a million dollar partnership! ***

[rlnorthcutt]

Greetings fellow warriors!

2008 was an incredible year for me - I started a simple side business doing web development that has mushroomed into my main source of income, I had a new baby and had many other adventures.

But, I thought I would share a particularly interesting story of how I was invited to become a partner in a growing company that is poised to do over $500k in sales this year.

Last December, I started doing some web development on the side. I was a bit burnt out on Real Estate (I am a broker, and have 9 agents), and wanted to go back to my roots doing web dev and let my real estate biz coast a bit.

One of my first side jobs was building a small 5 page website for $350. I got the job on RAC and only took it so I could build my reputation. With some good reviews and ratings, its pretty easy to climb the ranks and be able to get $10k+ jobs (that can be outsourced!). This is one of the things I teach in my "cash cow" training.

So, I built the site for a small company that provides services for water supply companies. They were pleased, and then came back and wanted me to take their software engine and put it on a website. So, I outsourced the hard part for $400 and then proceeded to charge several thousand over a few months while I put it together.

By this summer, they had me put up a few more small sites, and at this point I was simply charging $50/hour for my time.

By the end of summer, the owners approached me and asked me if I would like to join the company as a Partner for a percentage of the profits. Their goal is to build things up over the next 2-3 years and then sell the company for several million (they have been through this twice before).

So, they flew me to Vegas and put me up in the Luxor. There was a Water Conservation convention going on and they wanted to let me get to know the industry... as well as meet me face to face! All this time, we worked together by email and phone... and they offered me a piece of the company without ever meeting me!

The trip went well, I learned alot, and we hammered out the details of the arrangement. In a nutshell, I get:
- 25% of all net profits paid out annually
- $60-75 per hour for work billable to clients
- Up to 25% of the final sale of the company
- The opportunity to take over management when the company is sold

These are great folks to work with, and we have a ton of new clients coming on board... one sale can range from $20-80k and we are working on long range subscription pricing.

The point is this:

You never know how things will go, so you should always do your best and take care of your clients. That one little "throw-away" job of $350 could have just been a footnote in my life... now its a full chapter!

If you are an internet marketer, you should seriously consider getting into "offline" consulting. There is a huge need and enormous potential. Thats precisely why I have put together a program for training/supporting IM developers.

I see many newbie/fledgling IM folks that try to make a go of it strictly online, and its tough! But offline there is very little true competition... its because there is so much work available.

So - take heart from my tale, and keep your eyes open. Do your best and soon opportunity will knock on your door. I have no idea where this partnerhsip will lead, but I am currently only working 2 days a week on it while I continue my other business... Its a great setup!

best regards
Ron

[xDennis]

Wow, that's a great story! And that's also the beauty of meeting people and doing business offline. You never know who you're going to meet.

I recently got free NBA tickets through a real estate deal. (I'm also a short sale negotiator / deal finder) I love the offline business model, and I want to take it more seriously.

Good job and that and the best of luck to you and your business!

Dennis

[AndrewCavanagh]

I've turned down a lot of deals like this because I simply don't want the hassles of being so closely tied to the responsibilities of one business.

But you are so right.

There are so many opportunities for anyone who understands internet marketing in the brick and mortar business world because you're in a class of you're own.

You're a rainmaker who can create sales and profits with minimal budget...that is unbelievably valuable to regular business owners.

Kindest regards,
Andrew Cavanagh

[rlnorthcutt]

Thanks Dennis!

Be sure to read the original "Cash Cow" thread for TONS of info on the offline business stuff... Also, if you can make it to the free webinar tomorrow, there will be lots of info and ideas for you.

[jan roos]

Great story and congrats on the deal. A kind of similar thing happened to me as well. I met this guy through my consulting services a few weeks ago who is an inventor. He invented a killer product that will sell millions "i'm sure of it" Anyways we became good friends and he is offering me a slice of the pie. My duties will extend beyond internet marketing and thats fine.

Obviously I dont know how this will turn out but I have to agree with the OP this offline consulting thing is so much fun and people think we are geniuses (lol)

It's great.

Just my 2 cents

Cheers

[chrisnegro]

Congrats Ron ...the offline niche is the best niche to be in if your serious about your marketing -- you can have the best of both worlds...working offline and online plus get to meet people face to face outside of the solitude the online model "lends" itself.

Congrats Again !!

Chris Negro

[rlnorthcutt]

Thanks Guys!

A really good point to make is in choosing the right deals to jump on. Truly, opportunity is everywhere, and the real challenge when you start to see it is to be selective in which ones to grab.

Thats kind of the "traditional" newbie problem with IM - too many good opportunities and they either freeze or try to do it all!

[intratec10]

Congratulations Ron! This has to be one of the most inspiring offline successes I've read about. Please keep us updated, is able, on your successes to come. Thanks again!!

[reliance77]

Thanks for sharing...that is a great story and very encourghing on how things work out.

[Adesoji_O]

Thanks for the wonderful story.
Congratulation and keep up the
good work.

[globalpro]

Ron,

Excellent stuff.

I know this probably goes without saying, but you are getting all this in writing?

Thanks,

John

[david-forer]

Good Job Ron

Are you having another teleseminar?

[JohnSpangler]

Hi Ron,

I agree 100%, that is a great story and congrats.

I was working with a local company that I didn't even realize was a
franchise and the next thing you know this franchise owner is introducing
me to the owner of their franchise.

We had a 90minute phone conversation and I put together a proposal for
over $65,000 which I had never even done before, I found out how much
they were charging a similar company( which they didn't know I did) and
charged roughly 80% less.

I haven't won anything yet but I spoke to them yesterday I am very
much still in the running-fingers and toes crossed.

You really honestly never know what can happen when you get off your
backend and try to make things happen because you can be just one client
away from your million dollar deal.

Great story,

John

[rlnorthcutt]

Originally Posted by globalpro

Ron,

Excellent stuff.

I know this probably goes without saying, but you are getting all this in writing?

Thanks,

John

Oh yes... I reviewed the contract, had my counsel review it, and then made a few small revisions (some tiny legal things).

But, the whole time I was working and moving forward while we hammered out the details. One of the main reasons that I decided to partner with these guys is that we have a very similar ethic.

The main partner is an older guy who has given me some helpful advice, and watched out for me. Really, its a great partnership.

Actually - when we first started working together he "scolded" me for not billing him for our phone meetings! HEhehe... I started tracking my phone time more closely with him and all my clients after that...

[rlnorthcutt]

David,

Some folks wanted one in the evening so the day-jobbers could make it. Check the WSO thread (my sig) later tonight or tomorrow for details.

It will be at 8pm central time tomorrow (thursday)

regards,
Ron

Originally Posted by david-forer

Good Job Ron

Are you having another teleseminar?

[rlnorthcutt]

John,

Thats fantastic! I hope you will post your own tale of encouragement soon!

Be sure to PM me when you do

Ron

[AndrewCavanagh]

Here's one guideline that should help you work out which deals are worth considering.

Be VERY wary of doing any pay per profit deal with anyone who hasn't already paid you a substantial sum of money in the past or at the very least paid a substantial sum of money in some way for your advice.

(Paying to fly you to a seminar etc etc is a good sign).

Deals with business owners who haven't put any money in are a red flag that the business owner doesn't value your service.

If they're trying to get you to do work without any financial risk on their part then chances are you'll find them a pain in the arse to deal with because they haven't committed to working with you mentally by going through the process of deciding to pay you.

Also in many of these pay per profit deals you'll find it exceptionally difficult to get paid at all.

People who've paid you in the past are a far better bet.

Kindest regards,
Andrew Cavanagh

[BrashImpact]

Andrew,
Well said, could not have put it better myself. No skin in the game, no game to play, thats my motto. I do a lotta JV deals supplying product, however i always pay for time and consultation along with % of profits. It must be a win win for all.

No skin in the game= MONSTER RED FLAG !!!!!!

Regards,
Robert

Originally Posted by AndrewCavanagh

Here's one guideline that should help you work out which deals are worth considering.

Be VERY wary of doing any pay per profit deal with anyone who hasn't already paid you a substantial sum of money in the past or at the very least paid a substantial sum of money in some way for your advice.

(Paying to fly you to a seminar etc etc is a good sign).

Deals with business owners who haven't put any money in are a red flag that the business owner doesn't value your service.

If they're trying to get you to do work without any financial risk on their part then chances are you'll find them a pain in the arse to deal with because they haven't committed to working with you mentally by going through the process of deciding to pay you.

Also in many of these pay per profit deals you'll find it exceptionally difficult to get paid at all.

People who've paid you in the past are a far better bet.

Kindest regards,
Andrew Cavanagh

[rlnorthcutt]

Excellent point Andrew - thanks for making this so clear.

I have had partnerships in the past that fizzled or were not very well balanced, which is how I learned.

Alot of people out there are serial users, and will use you up and then move on and use up someone else.

[JohnSpangler]

Great point Andrew,

I had gotten burned very early on by that very point.

Now that isn't to say doing something pretty easy to add value
is out of the question but nothing to time intensive.

Thanks Ron, I definitely will keep you posted.

I am supposed to touch base with them the beginning of the month.

I wish you continued success!!!

Thanks,

John

[rlnorthcutt]

FYI - I just had a call with my partners in this company today.

They volunteered to provide a monthly payment to me to be applied to future invoices (I get profit sharing and payment for my billable time). I did not ask for this, but I accepted it as its about 20% of my current monthly income!

Just another reason why it pays to :

1) Provide quality service

2) Go above and beyond

3) Be careful and get involved with good people

This just makes it easier for me to do what I was going to do anyway, and it helps to even out my income. The great thing is that I still have the opportunity to bring in more income AND profit sharing... so long as I keep things rolling.

I should note that one of my duties is in sales and support, so I have an active role in getting contracts and the direction of the company. Plus, the more I can do to drive things, the more indispensable I become.

Seriously - this is a great deal, and I am really excited! Thanks for listening and for the kind words.

We are all in this together!

Ron