The Continuity Factor

The Continuity Factor
The best new ideas are often old ideas brought back to
life. Sometimes the ideas are altered to fit particular
circumstances but, many times, the application is altered
to fit current circumstances.

Over twenty years ago, when I was in the financial services
industry, I decided to alter our business from
commission-based to charging a monthly fee based on a
percentage of assets. This was a radical thought at the
time because the brokerage business was based on
commissions. The change was also difficult to execute
because it took some time for monthly income (based on a
lower rate) to catch up to handle current overhead. The
change required confidence that the new monthly fees would
last and we had to temporarily cut overhead at the same
time.

Fortunately, it proved to be the best decision I ever made
in business. Since that pivotal moment, I have never had a
business that did not have a continuity component attached
to it. Additionally, every business we consult with is
taught the value of continuity and has it structured into
their business plan.

Continuity income is simply income that is based on a
monthly plan or membership program. If you have a
continuity program, you can count on a certain income
stream coming in each month whether you find a new client
or not. This is not to say that you do not need to keep
looking for new clients, because you do. Instead, it is a
mechanism that produces income so that, should you have a
bad month in finding new business, or should the economy
falter, you still have money coming in regularly, allowing
for time to make adjustments. If you do not have a
continuity program in your business or profession at this
time you have to get a certain amount of new customers or
you are going to have serious problems in a short amount of
time.

The ideal goal in a continuity program is for the
continuity to first cover your monthly overhead. When you
do that, all new business goes to profit and expansion. The
next goal is to make money just on your continuity.

When we present the continuity factor to clients, some have
an immediate "ahhh" experience. Others struggle with how
the application could possibly be structured into their
business. These clients frequently say the same thing: "But
my business is different." Trust us. It's not. Let me give
you some examples so you can see the applications of
continuity in different businesses. Our goal is for you to
consider how continuity can be applied to your business so
you can enjoy its benefits.

A real estate broker in Iowa works exclusively with
investors. He has a successful track record of finding good
income-producing properties. He offers a tiered continuity
program where investors pay different amounts each month
for the opportunity to be higher up on his investor list in
order to see new properties first. For $1,000 per month,
you get to see them immediately. In addition, he must agree
to work with you exclusively and give you a fee as a
buyers' broker when you buy the property. He also
represents you when you sell the property. The continuity
factor in his business takes the pressure off having to
find something new in a particular month.

Frequently, continuity is designed around a marketing
service or an ad campaign that a company has developed to
consistently produce new clients. For example, a client we
are working with has a commercial cleaning company. They
have developed a very successful lead generation system. We
are developing a monthly payment program based on providing
leads to other cleaning companies in non-competitive areas
that pay a fee for the exclusive rights to those proven
marketing methods.

Our latest client is a pizza business, which our law firm
is franchising. The pizza delivery company sells a monthly
membership service that gives discounts and higher priority
for phone orders based on membership levels.

And to blow your mind even more: We actually know of a
funeral director that guarantees recovery for the family of
a lost one and charges a continuity fee for counseling and
grief services.

Continuity in your business will improve your income and
your stress level. We encourage you to think about how
continuity can be used in your business. If you want help,
let us know.

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