Should You Buy (Gift) People Into Your Business?
Tuesday, December 29, 2009 at 8:59PM Well this exchange ought to get some comments at least...
Feel free to disagree with me, just try to be rational in your posts. Labeling me a "Conservative Fascist" (as one Facebooker did already) will not only get your comment deleted but also betray you as completely ignorant about conservatism AND fascism (and their ideological incompatibility).
Let me paint the background... this is an applicant to the business (who only applied because I sent out a free app coupon) who had already told my assistant, Melissa, hastily on the phone that she would not get involved in anything where you had to "pay anything upfront".
I had already advised Melissa not to spend any more time with this lady when the lady (let's call her Jane) found me on Facebook me and the following dialogue ensued.
Jane: I would love to get started with your program if I do not have to pay anything to get started and if you deduct the original fee from future commission! Can that be deal?
Me: The answer is no but rather than give you a long explanation I'm just going to turn this into a blog post. Be watching my blog jefflearner.com over the next few days if you care to know my full reasons.
For now I'll give you a summary:
Charity is charity and business is business and while the business community generates most of the charity in this country we should never perform charity and call it business or we will no longer be in the business that supports the charity.
You could also equate this to calling Subway and asking them if they'll give you a store to sell sandwiches out of so you can pay them back if you're able to actually sell any sandwiches.
Come to think of it... that's what financing is. I guess I would do it if you would pay me back with interest and submit to a credit check and post collateral and sign a contract. Basically you are asking for a loan.
Jeff
Jane: I was expecting a better answer from you! This is very disappointing It was a test! You have lost you Xmas spirit and you should be much more given. Never forget where you came from and how you got there.
I will also turn this into a blog. If you can open your hands to help others you should do it. Life is a circle, you should give in order to receive. I'm so glad that I have never forgotten this basis principle of life everyday and always try to help others when I'm able to.
If you have made so much money you shouldn't have had a problem to help someone! But I guess this is all blalalalalal that I get bombarded with everyday!
Me: Again - I (like most successful business people) do help people and often. But charity should never be labeled as business or vice versa. To succeed at charity one must first succeed at business... you cannot help the poor by being one of them. Believe me I know where I came from but I also know the principles of good business that got me out of my financial predicament. Once a person has achieved success is not the time to abandon the principles of good business.
Now I suggest you try calling Subway (back) and telling them that this time you want a free store because they should be generous since they already have so many stores. Or try calling Chase Bank and tell them that because they already have so many loans they should give you one interest free. Or try calling the federal government and saying that because you promised every new hire at your company 30 years of pension when they retired early at 55 you are facing bankruptcy (wait that one would work!)
So often successful businesses are attacked as being uncharitable because they are "by the book" when it comes to business. It never occurs to people looking for special treatment that this approach is what supports the charity. Did you know that over 50% of all charitable giving in the world comes from the 1% of people and corporations who are most successful in business? Did you read the Christmas Miracle post on my blog (http://jefflearner.com/home/2009/12/24/a-real-christmas-miracle.html)? It's a case in point.
Perhaps a better way to illustrate this is to mention that it was when the government started forcing the mortgage industry to treat their lending practices (their business) like charitable giving (by lending equally in all neighborhoods and eliminating so-called "redlining") we ended up in the mess we're all in when (surprise!) people that shouldn't have qualified for mortgages in the first place couldn't pay their mortgages.
The sad irony is that this recession hurts the poor much more than the rich (as mismanaged economics always does) even though it was created partly by efforts to ennoble them (enable them) with the "American Dream" of home ownership.
Which is exactly my point... never do charity and call it business or both will suffer, charity moreso (charitable giving is down over 50% this year, much more than corporate profits).
Please respond again so we can keep this going. At this rate I won't have to write a blog post I'll just copy and paste our conversation.
(I was a little disappointed to never receive a reply but I felt there was enough here to go with...)
In summary: Here's raising a glass to a profitable (and charitable) 2010, the year when authentic capitalism reemerges and shows that the profit motive (not government intervention or overly-regulated pseudo-capitalism) is the only thing that has ever consistently raised standards of living for the population as a whole.
Oh yeah, and in case you're still wondering if you should buy (gift) people into your business... No!!!!!!!
Happy New Year
Jeff
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Reader Comments (6)
Jeff, you couldn't be more accurate with your take on the situation. I am getting so tired of all the "victim" type mindset within in our society. It started with the media 30 years ago, and now is being jammed down our kids throats through the public school system. I bet "Jane" thinks that everyone should get trophies in T-ball as well. Thats a great idea, lets reward our kids for mediocre performance and start teaching them early on to under achieve.
I hate to break it to you "Jane" no one owes you anything in life, and if that is your mindset stop wasting time typing emails to Jeff and go get back in line at the soup kitchen before the government runs out of soup!
Even though I have no affiliation with Jeff Learner (I just watched his videos, etc.) I have to comment on this blog!!! I have run my own business (bricks and mortar and employees) since 2002. My husband and I both came from corporate america and believed that we were going to do it differently.... we "GAVE" our employees every benefit we could think of - bonuses, company trucks, cell phones, paid vacations (undheard of in our industry).... we even took on partners and let them into our company for "free"........... well, when it came right down to it, they didn't work any harder, or make any more profits for our company.......... they just wanted more. They thought that because we were "giving" them these things that they were "owed" these things... and that we had more to give....and when times got tuff (both because of the economy and because our labor costs were so high) and we had to start cutting back......... they employees turned on us.......... so our lesson here was 'FREE HAS NO VALUE!!!" If Jane REALLY wanted to join Jeff, she would have coughed up the cash and grew her own company.... I am so tired of people thinking that just because I have money (very hard earned might I add) that I owe the people who don't!!!
Jeff,
Excellent article! It explains the root cause of why so many people in this country think the government is "Daddy" as if they owed are something & someone else should pay for it. Knowing your own story, if you took "Jane's" advice you could have looked for a government bailout instead of working your butt off to get where you are. Enabling the people who think they should get things for free would have been the wrong thing to do. Business & charity are 2 different things. First you have to receive & have something before you can give. I wonder if "Jane" would lend money to someone else to start a business...NOT!
Hey Jeff, I get were you are coming from. You give they take and look for more. I really don't know were that state or frame of mind comes from. There up bringing I suppose.
Still don't you wonder how many of those people would be super performers if given a little charity.
I know that in the past I have given people a shot and it worked out well.
I have been looking at your material for a while and I think that you seem like a very forth right person.
I would like to give you program a try but, in the real world living paycheck to paycheck is really that.
There is no money to steal from one place to put to another. There are no credit cards to max out , and no loans to be had. furthermore they couldn't bear a monthly membership bill.
With that said,- For those people your system is out of reach, which is very unfortunate.
I am one of those people. I know if what you have said is true, then there are people like myself
That could grab hold of this and run with it.
Instead we are left with Avon,Amway, and SMC. to try to make something for our selves.
Don't miss understand. I Wish you all the good tidings in the world . And I think that you earned what you have . You woke up be for you had no credit to work with or you wouldn't have what you have I am sure.
So in closing, I wish you and your family the best.
Still watching you, Perry Edmunds
Denmark Me.
Good post Jeff
You have to learn to be able to give and receive - I come from a back ground in therapies and we call it an 'energy exchange' .
Receiving without having given in return often means you do not value it the same as you had to make no sacrifices for it. You will work far harder at your business by making those sacrifices to make it happen as the losses are truly yours.
Brigitte M
This is quite an interesting post, Jeff. I think that, for the most part, I agree with you; however, there is a small percentage in the world who would actually work if given a chance. I am a married woman, and my husband is verbally abusive and I have no control over any of our finances. I do not have an income. Last week, I was scouring the internet to see if there is any way that I can build my own income that is separate from my husband and that will allow me to have some choices in life. I came across a woman who had built an amazing business in network marketing, and, on a whim, called her.
To make a long story short, she and I clicked instantly on the phone. She not only sponsored me into the business, but she paid for me to get product and bought product under the first person I brought into the business as well....just to help me get started. she earned over a million dollars last year and did not feel she was losing anything by spending $250 on me.
In one week, I have sponsored 3 people and I will be signing up a business this afternoon.
If she had not sponsored me and helped me get up and running, I would not have the ability to work the business quickly and start turning a profit. By month's end, I am on track to earn at least $1K, at which time I will start giving back into the business to keep myself in a position to continue earning. I can only grow from here...all because someone gifted me into the business.
So, I guess the bottom line is that one size does not fit all. You have to be intuitive and to discern whether or not gifting will be profitable for you. You cannot just lump everyone into the same category because not all of us are alike. I have no credit and no cash, and I cannot go out and just get a job. My husband...well...my life is just not that free.
Good luck to you. I do pray that you are sensitive to the lives of a diverse population because if I had joined your team through gifting, I would have been a tremendous salesperson in your organization in a short period of time.
Not everyone fits your rule of laziness simply because they have been gifted.
Thanks,
C.