Instructions

The Agency Principle

This is where you finally learn one of the core secrets of The IFGC Freedom Project. We call it "The First Principle".

The First Principle is a refinement of the Agency Principle and is the use of one layer of Managers and one layer of Agents to bring your products to market. Or the market to your products as the case may be. Read on to see how Popular this concept is:

Old Style Marketing

Attracting customers, Marketing, has always had a cost. As a percentage of product price this cost varies tremendously according to the type of product or service but very often it is between 20% and 60% of the retail price!

Even if you can produce and deliver a product for almost nothing, as you can by combining software with the internet, you will not make money if your marketing costs more than the sale price! Let me give you an overview of marketing costs:

In some forms of business such as being a carpenter the costs of attracting business are minimal with the emphasis being on carrying out the task contracted for - supplying the Product.

An established carpenter may not need to advertise as he gets all his work by "word of mouth" recommendation.

The volume performance of Labor is the effective limit on his business turnover. 

Unless he employs staff with the Labor problems that brings.

There are other limits to his turnover created by the distance from which the artisan's reputation brings in work and the distance he is prepared to travel to carry it out.

A different form of business is the store, or "shop" in the UK. Many local stores don't advertise at all. They rely on repeat business from a local clientele who know, trust and find them convenient.

Theoretically, the store could service huge numbers of customers but in reality the customers, while coming freely and of their own volition, normally come from only a limited area and therefore in limited numbers. 

Because one of the Unique Selling Points of a local store is its convenience. This is why it can charge higher prices than a more distant Mall or Superstore.

In some areas it is even called a "Convenience Store".

The only way to get huge sales of any product is to make huge numbers of people aware of what you have to offer by employing mass marketing techniques. TV, radio, billboards, newspaper advertising or direct mail for example.

Even then, many businesses, such as the store above, would still only attract local custom because the benefit of convenience or local appeal is lost on a wider audience. 

Do you want to travel 500 miles to Buy a bath? And if you did, could the shop supply and deliver it at the same price as a local vendor? 

On the other hand a national chain of electrical stores, with a branch in every town, can advertise on national TV and bring in customers nationwide - each to their local store. 

The high cost of TV advertising is set off here against the immense numbers of customers drawn each to their local branch by the impression of "solidity" given by the TV presence. 

So you can see that marketing can be very expensive and even then only work with certain kinds of business to certain limits set by the distance from which a customer will travel or to which the goods can be delivered.

Marketing - letting people know you are there and convincing them to Buy from you - normally costs a great deal of money. Even for products with low production and distribution costs the advertising for customers can eat into the profits in an alarming fashion.

Very often, 60% or more of the retail price of a "hard" product is eaten up by the cost of its promotion.

This often occurs through a retail outlet acting as a "middle-man" to display, say, washing machines or cookers and handling their own advertising and sales force.

For this service they want half the retail price.

So hard and heavy products have to be manufactured cheaply - and even then a large part of the retail price is down to advertising.

But you are not selling beans or washing machines - you have an attractive software product available for download from the internet at a price which won't make people think twice.

No, you don't have the problem of shipping  heavy metal or getting people to come and look but you do have to let them know where your web site is don't you?

And your potential customers live all over the world.

What you need is just for people to know about the product.

How are you going to tell the world? 

Do you want to risk $200,000 for a block of TV advertisements?

What about all those people in China, do they watch your TV channels?

How about renting space on billboards or in newspapers?

What about Europe and India or South America?

There are only two ways to tell people all over the world about anything and one of those is to write them a letter. Snail Mail.

A good example of old style mass marketing, to get this point across, is a direct mail shot. 

Direct mail has always (Before the Internet) been the most efficient form of sales to a mass market.

It generates the most income/profit per Dollar spent in promotion.

The Problem

To have 1,000 letters printed, "stuffed" into envelopes and mailed to "hot" prospects, which lists have to be rented, will cost at least $1,500 and maybe $2,500. 

The more the product costs the less will be sold so a median price is usually selected. If the product retails at $80.00 it will sell around 5% with a good letter to a good list of prospects. This is a gross income of $4,000.00.

If the product costs $4.00 to produce and mail there is another $200.00 to take from that leaving a gross profit of $1,300.00.  "Very good," you might think, and in itself it is OK if you have a reliable list of prospects running into the hundreds of thousands.

But what about when you have geared up to be mailing 30,000 letters per week - as the author has done - and the names are suddenly no good?

You are suddenly down $150,000 for two weeks mailing before you find out. With no recourse. Tough hey?

And how do you mail a hundred million prospects?

So the problems with direct mail are getting a big enough list to be worthwhile and being assured that the list maintains its quality. 

List brokers are not the most reliable people in the world and few can be trusted not to get you going with a good "test" purchase and then rent you a bulk list of rubbish.

Of course the secondary problem is producing and mailing all that product. Some might say "A nice problem to have", but there is a much easier, surer, less stressful way to make a lot more money.

THERE IS ANOTHER WAY:

You can advertise on the internet itself!

But you probably know already that the internet is home to many rogues and advertising costs money here too. 

As marketing on the internet has matured the advertising costs have risen to balance their effectiveness by and large - though there are still cheap and even free ways of attracting people if you know how to do it. 

The cheap and free ways just take an investment of effort instead of money.

The problem you still have is how to do enough advertising to bring in those millions of customers without breaking the bank.

The Agency Principle Explained

So what is the best way to get your sales pitch - your web site - in front of a huge number of potential Buyers?

Answer - The Agency Principle: Get a lot of people to attract the visitors for you and pay them only on results.

This is what the life insurance industry does and look how big the insurance companies are.

There are many other examples of the agency principle ranging from real estate agents and gasoline stations to carpet fitters selling carpet for the manufacturers before they fit them. 

Did you know that auto-mechanics sell all the parts they fit as agents for the manufacturers/distributors and make a large mark-up on them? (This makes the mechanics' Labor prices look cheaper)

The problem with selling through the normal agency principle is that the product cost has to be high enough to carry the commission to the agent. 

Enough commission to make it worth his or her while in making the sale. (If the sale is not an "add-on" to a service such as with carpet fitting) This either makes your product uncompetitive or loses most of the profit to pay commissions. 

Not so much with a situation like a mechanic selling auto-parts as an "add on" - which situation we cannot use - but certainly in a situation like a real estate agent putting effort into, and getting all their income from, the sale. They can only make so many pitches a day and convert so many of them so the individual commission on each successful sale has to be high.

So the product price has to be higher to cover the commission.

And you have all the Labor problems that go with No Support, training and managing a huge sales force.

You will understand already that you can't sell products by machine at prices running into the thousands of dollars. The Buyer is taking a chance on the effectiveness of the product and will not risk so much without talking to a live person.

So how do we arrange for our people to be able to sell huge volumes of low-cost product without massive advertising costs?

We arrange things so that our people make a lot of money by selling only a relatively few, low-cost, products to the customer through an automatic Internet system.

And that this selling of a few products also recruits  further agents to make huge volumes of further sales for our people's benefit.

The Perfect Solution

(And there is a perfect solution)

We set up our people in two tiers or levels so that by selling only a few, low cost, products each, through their own automated web site system, our people make a great deal of money.

First, our people use our automated system to sell their small share of Product (The First Year Subscription) automatically via the internet and, at the same time, recruit sub-agents under them. 

They don't have to re-invent the wheel because this same system, provided by the organization, works for everyone.

At least it works for everyone who follows the instructions rather than doing something else.

This modest initial sale of Product (The First Year Subscription) brings in both income for our people to make a profit and cover their advertising AND, more importantly, it recruits a team of sub-agents (IFGCs) for them so they can become a senior manager - a Support Manager. 

Standardization of techniques also makes it easier for them to recruit further agents as "untrained" people can perform these tasks efficiently simply by following the instructions. Providing they have the Freedom, courage and determination to take action.

So, when each of our people has made some money (A few thousand dollars) selling a few products themselves as an IFGC they move on to managing their own network and make some really serious money for organizing their team.

Again it is simple for them to do because they just have to follow the straightforward instructions which we supply.

This way, each and every agent can make more than enough money to be able to consider themselves rich from a tiny investment of time and effort.

And all this from a little advertising of an automated site and following simple instructions.

How?

The answer to this question it will be more plain to you if we use this actual system, The IFGC Freedom Project, to illustrate by a true to life, functioning example:

To read this page click HERE