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So I've been reading a lot of Jay Abraham recently. Particularly his book on joint ventures. You can read the whole thing for free here if you want.
(http://grumomedia.com/files/Jay_Abraham-From_Mediocrity_to_Millions.pdf)
Anyways, I had a business idea that he doesn't mention explicitly in the book and I'm curious to hear what people think of it. I'm not saying it's guaranteed to be profitable or anything, but I do think it has the potential to generate 10K a month or more....if executed properly.
So Jay's basic premise is that most businesses spend an enormous amount of time, effort, and capital to build assets that they don't really take advantage of. He essentially acts as a consultant and shows these businesses all the ways they can make more money and utilize their assets fully.
One example he uses is a high end software company selling their programs for 25K-250K. They made good money, but didn't do anything with the leads that didn't convert. So Jay had them sell the unconverted leads to a company with more affordable software in exchange for 50% of the profit and they ended up making millions in additional profit.... Shit like that. You get the point.
So another example that struck me.... One of Jay's first joint venture deals. He found an 8 track wholesaler that had an excess supply and no way to get rid of them. Jay struck a deal with a chain of mini marts and told them if they put them in their stores, he'd give them 25% for every sale. No risk for the store if they don't sell. Just additional income. Makes total sense for them, right?
So he basically found a business...the mini marts...the had spent millions of dollars and countless hours to build a business over the years. Their untapped asset was all the foot traffic that went through their stores every day. Thousands of people shopped there daily. And Jay used that untapped asset to sell the 8 track players and create a new income stream for himself without spending a dime of his own money.
That led me to my own a-ha moment.
What if I paid large retail stores in my city....not to sell physical products like 8 track players....but to hand out flyers advertising the services of other non competitive companies.
So essentially I would talk to owners/managers of supermarkets, Home Depots, Nordstrom, Dunkin Donuts, Starbucks, Best Buy, etc....stores that routinely have tens of thousands of customers a month...and see if they would hand out a flyer promoting a non-competitive business to their customers when they leave the store. Just put it in the bag when they leave. That's it. In return they could make an additional 1k-5K a month.
They key would be to show these companies that they have an untapped asset that they're not using that could net them a few more thousand in profit a month.
The question then becomes....what companies would pay the most for the right to advertise directly to, say, 30 thousand Whole Food customers a month? A few ideas I had:
-A Laser Eye surgery business that advertises on local radio all the time costs up to 5K per customer.
-Luxury Car dealerships.
-Storage facilities.... Say you get 10 new customers a month. Average customer spends $200/month for 5 months. Thats 10K in additional profit.
-High priced gyms like Equinox that charge $200/month. 10 new customers a month is $2,000 in additional income per month.
-Real estate companies. If you find a buyer for a 500K home, you're talking about a potential 7K profit for the agent + brokerage.
-Lawyers.... One client can be worth 10K.
-Dentists.
So I guess my question for the forum members would be:
1) What are your thoughts? Is this doable? Does it make sense? Why/why not?
2) What companies do you think would spend the most to advertise to 30K customers a month?
I think, for example, the Laser procedure clinic and lawyer would be willing to pay 3-5K a month. Put one ad on each side. That could be 10K in revenue per location.
Alright. I don't want to get too ahead of myself. Let me know what everyone thinks. Looking forward to hearing the feedback.
(http://grumomedia.com/files/Jay_Abraham-From_Mediocrity_to_Millions.pdf)
Anyways, I had a business idea that he doesn't mention explicitly in the book and I'm curious to hear what people think of it. I'm not saying it's guaranteed to be profitable or anything, but I do think it has the potential to generate 10K a month or more....if executed properly.
So Jay's basic premise is that most businesses spend an enormous amount of time, effort, and capital to build assets that they don't really take advantage of. He essentially acts as a consultant and shows these businesses all the ways they can make more money and utilize their assets fully.
One example he uses is a high end software company selling their programs for 25K-250K. They made good money, but didn't do anything with the leads that didn't convert. So Jay had them sell the unconverted leads to a company with more affordable software in exchange for 50% of the profit and they ended up making millions in additional profit.... Shit like that. You get the point.
So another example that struck me.... One of Jay's first joint venture deals. He found an 8 track wholesaler that had an excess supply and no way to get rid of them. Jay struck a deal with a chain of mini marts and told them if they put them in their stores, he'd give them 25% for every sale. No risk for the store if they don't sell. Just additional income. Makes total sense for them, right?
So he basically found a business...the mini marts...the had spent millions of dollars and countless hours to build a business over the years. Their untapped asset was all the foot traffic that went through their stores every day. Thousands of people shopped there daily. And Jay used that untapped asset to sell the 8 track players and create a new income stream for himself without spending a dime of his own money.
That led me to my own a-ha moment.
What if I paid large retail stores in my city....not to sell physical products like 8 track players....but to hand out flyers advertising the services of other non competitive companies.
So essentially I would talk to owners/managers of supermarkets, Home Depots, Nordstrom, Dunkin Donuts, Starbucks, Best Buy, etc....stores that routinely have tens of thousands of customers a month...and see if they would hand out a flyer promoting a non-competitive business to their customers when they leave the store. Just put it in the bag when they leave. That's it. In return they could make an additional 1k-5K a month.
They key would be to show these companies that they have an untapped asset that they're not using that could net them a few more thousand in profit a month.
The question then becomes....what companies would pay the most for the right to advertise directly to, say, 30 thousand Whole Food customers a month? A few ideas I had:
-A Laser Eye surgery business that advertises on local radio all the time costs up to 5K per customer.
-Luxury Car dealerships.
-Storage facilities.... Say you get 10 new customers a month. Average customer spends $200/month for 5 months. Thats 10K in additional profit.
-High priced gyms like Equinox that charge $200/month. 10 new customers a month is $2,000 in additional income per month.
-Real estate companies. If you find a buyer for a 500K home, you're talking about a potential 7K profit for the agent + brokerage.
-Lawyers.... One client can be worth 10K.
-Dentists.
So I guess my question for the forum members would be:
1) What are your thoughts? Is this doable? Does it make sense? Why/why not?
2) What companies do you think would spend the most to advertise to 30K customers a month?
I think, for example, the Laser procedure clinic and lawyer would be willing to pay 3-5K a month. Put one ad on each side. That could be 10K in revenue per location.
Alright. I don't want to get too ahead of myself. Let me know what everyone thinks. Looking forward to hearing the feedback.
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