With the great potential for creating wealth through a National Agents Alliance business no one should have cash-flow problems. But we know some agents do. Some have not yet learned to manage their money and are always living on the edge, waiting for commission checks so they can pay the rent.
Regarding increasing your profits, CEO, Andy Albright teaches a great lesson with a chart he calls “The Magical Movement of Lines.” The chart shows how gross revenue can grow without net profits growing too. Sometimes agents increase their gross income but their gross expenses rise as well, leaving no more net profit for them to enjoy. The sooner agents learn to control expenses, the sooner they’ll enjoy earning more profits.
One problem many people face has to do with what we call the “Latte Factor.” Stopping at Starbucks every day, or in some cases more than once a day, to spend $4 or $5 on a coffee drink adds up, little by little, to eat away at an agent’s budget. And it’s not just Starbucks…there are other little things, usually unnecessary, that people tend to waste money on, when, if they really thought about it, they could easily avoid.
At National Agents Alliance, our agents are encouraged to manage time by making calls while they drive, rather than stopping at the coffee shop for a refreshment and spending their time between appointments reading the newspaper or checking emails on their smart-phone. If you add up the latte, the newspaper and a fast-food lunch, you can be spending $12 to $15 every day. That could be as much as $300 a month ($3,600 a year).
When you pay for the latte, or the newspaper it doesn’t seem like much. Throw in the lunch, add it up at the end of the day, figure out the monthly cost…now that’s a different story.
Andy Albright teaches agents to invest in their business. Take that $3,600 and buy leads or spend the money on recruiting ads and spend a year building your business, watch it grow, and watch your income and profits grow, then you’ll have the time and money to enjoy a stop at Starbucks!