Beware of Greeks bearing gifts!

Make what you will of it, but I’m going to speak my mind about this.

Let’s take a guy who makes, say, $10 million a year. If he works 40 hours a week, with 5 weeks off every year, he’s making a bit over $5,000 per hour. (If he’s smart and has systems working his business, that figure is higher)

Guy gets the urge to coach. He conducts a 3-day program and charges 100 people $7,500 to attend. The promise is to teach EVERYTHING attendees need to run their own million dollar business.

Assume the program preparation took the new coach two work weeks. Event organization takes 3 more working days out of his life. That’s 100 hours. He’s making $750,000 - or $7,500 per hour.

Sweet, right?

Let’s look at the flip side. If he invested the 100 hours into growing his own business and grew it by just 10% … he’d be making $1,000,000.

So, why does he decide to coach others instead?

Because he wants to help them build multi-million dollar businesses, right?

Sure. So what if, instead of a multi-thousand dollar course fee, he charges a royalty on the increased profits his students get from his coaching… say a mere 5 percent.

If 100 students each build a $1 million business, 5% royalty works out to $5 million.

So, why does he not make his compensation ‘performance based’?

There are 2 ways to explain this situation:

#1 - You learn from the new ‘guru’ - and pay $7,500 to learn how to build a million dollar business. You make the million. You win. ‘Guru’ is the sucker.

#2 - You pay the $7,500 to learn how to… but you do NOT make the million - or get anywhere close to it. You are the sucker.

Considering that ‘guru’ has more business experience, knows about covering risk and leveraging resources better than you (hey, isn’t that why you’re learning from him?!), tell me… which scenario is more likely true?

Who is the sucker?