Hello to all of you in our Million Dollar and Broker Communities! As always, I hope this message finds you all doing well, that business is booming!
I had a great conversation with one of our Active Licensees over the weekend discussing certain dynamics in our broker businesses. I explained how if I had more time and wasn't so involved with other businesses I could literally triple my business because, in many markets, we've haven't even begun to scratch the surface!
I encourage you, pay close attention to what I'm about to share and follow me in detail as follows:
In 2018, our total revenue was $2,847,988 with just over 29% margin. Of that amount, $1,204,699, or 42.3% of our revenue, was comprised of deliveries. So let's just focus on deliveries as I explain the following points:
Our 2018 delivery average was $99.52, or 12,105 total deliveries. Now, here is where things get really interesting.
Even though this broker business is a 7 day per week business minus major holidays, for demonstration purposes, let's play it even more conservatively. Let's say we only averaged 6 days per week year round.
This means that, of the 12,105 deliveries, we averaged ONLY 232.8 deliveries per week, or 38.7 deliveries per day. But let's get even crazier and dig a little deeper (This is why I always love numbers!).
As of 12/31/18 we had 50 delivery contractors. This number fluctuated throughout the year. I believe at our July seminar we were at 48. But we've lost a couple, added more, etc. It always fluctuates. But for simplicity, let's say we averaged 50 delivery contractors.
This means each contractor averaged ONLY 242.1 deliveries per year, ONLY 4.65 deliveries per week, and ONLY 0.77 delivery work orders per day. That's less than 1 delivery per day! Do you think there is growth potential there?!
What does all of this mean? It means I'm NOT even scratching the surface in most of my markets!
Yes, I made a lot of money this past year and am very pleased to be experiencing compounding annual growth. But let's not get it twisted, my numbers clearly underscore I'm not even scratching the surface!
Oh, these numbers don't blow your mind and scream growth potential? Ok, let me share a little more.
My top 7 contractors earned 6 figures this past year. Yes, they obviously performed a great number of work orders outside deliveries. But this means of the volume of the bottom 43 delivery contractors is even more diluted.
I know some of you are scratching your head asking "Joel, what the heck are you talking about?!"
What I'm stressing is the earning potential in our markets and in this industry in general is HUGE!
To be clear, we provide a host of other services to keep our contractors busy making money. But in being honest, the vast majority of our contractors, to date, remain part-time. If we cultivate more relationships and new business we will keep our contractors even busier which leads me to my next bit of news.
As I was explaining to this Licensee, we (YouAreTheBroker) are in discussions with a national retailer to explore the possibilities of integrating our entire network into their supply chain management. Trust me, if I said they're name you would know it because I guarantee you've seen their television commercials.
What does all of this mean? We currently have Active Licensees in 26 states, soon to be 28. This means more growth and earning potential for ALL of our collective broker businesses!
As I've always said, everything starts with one. Leverage your first customer to get your second. Leverage your first contractor to get your second. Leverage your first account to get your second, etc., etc., etc.
If we're able to convince this national retailer we have the collective national capacity to become an integral part of their national supply chain management, it will be HUGE for all of us! And once we do get this first account, we're going to leverage them to get out second.
As I was explaining much of this to our Licensee, he kept asking "How are people not seeing the opportunity?" Exactly!
Here's where I'm I going with all of this. If you're already an Active Licensee, build and grow! We invest in one on one coaching because we want you to be successful. Your success is our success - the success of our collective network. Understand, there's a reason why we're selective and have an Enrollment Investment - we need legitimate business owners! People only value what they invest in and have equity. If anyone could become a Licensee they could be fly-by-night and flake out on a whim.
We need business owners who put their money where their mouth is and are seriously committed to growing their investment. Having lukewarm Licensees with the potential to flake out at any time is not good for anyone, especially if when we're working to create national relationships!
So again, if you're already an Active Licensee, please continue to work diligently to grow because I'm confident we're going to have good news in 2019 and even more thereafter.
Stay connected. Let us know how you're doing so we can better assess your capacity and how we can help you.
Keep reaching out to your assigned Regional Director. Hey, you have a full year of one on one coaching from one of my own guys. They're assets - leverage them!
For those of you who are still sitting on the side lines, I'm sure your excuse is unique, but it's still just that, an excuse! We're at the start of a new year. What are you going to make of it? I'm sure you've seen Emilia's emails, take advantage!
See you at the Top!
Joel E. Davis
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