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NOTABLE! Sales Thread With Actionable Material, Contract Language

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Ubermensch

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The actionable material is below - highlighted in green - and is real legal language that I have used - and am currently using - in business transactions.

This is actionable material for anyone hiring sales reps, bringing in help for operational or technical work, signing with new strategic partners or clients, etc.

Of course, I am not an attorney.

However, my attorneys review all of my agreements, and the exact wording in these agreements has been used to consummate transactions that led to payment.

In other words, this stuff has worked for me in the past. Use at your own risk (you're welcome, I've saved you hundreds - if not thousands - of dollars in legal fees to have one of these drafted on your own).

I wanted to create a new type of sales thread. A thread without references to Jordan Belfort, Boiler Room, Wall Street, or any of the other stylized Hollwood depictions of real-life superheros.

Some of the lunacy in sales advice these days borders on zealotry. The “sales” section at the book store is often the most daunting.

Where would you begin, if you wanted to research the right “way” to sell?

Obviously, this has left at least a few of us bewildered... so confused, in fact, that I recently recall seeing a thread created asking about a way to “practice” sales.

Since my only response to said thread would have been - “ROFL LMFAO WTF” - I chose to remain silent.

Also, @Vigilante has already answered this question, and did so a long time ago.

The best way to practice selling is by selling.

If you're smart and good enough, you can be a “free agent.” This means that YOU choose which company you partner with. YOU negotiate your percentage of the “NET PROFITS” (don't let them tempt you with taking a piece of the “top line” or “revenue”), and you should take no less than 20% - and as much as 90% - of the net profits generated by your efforts, depending on what you're doing, the uniqueness of your skills, and – most importantly – your overall ability to bring in revenue and profit.

Plenty of guys have made millions doing this, especially the sellers of high-value ticket items (Wall Street stuff, anything involving commercial real estate, finance, construction, development, etc).

To do business, you need agreements. Simple as that.

Agreements cost money. Simple as that.

I have a collection agreements – with non-disclosure, non-circumvention, non-compete etc language – that cost me thousands of dollars for my law firm to write it up.

Below is an excerpt that I hope will help some members.

This is for the potential "free agents" out there, the ones with "potential." The ones who can "sell anything," and just need a little direction.

If you're taking any kind of real action, you are either solidifying “something to sell” (something that offers value to residential consumers or commercial clients), or you are already attempting to sell that solution in the marketplace.

If you're smart, you're selling a "high value" item, which means you are doing b2b sales.

If you're in the right industry, you should be able to hunt clients with six, seven, eight, or even nine-figure annual spend.

Commissions in such businesses are proportionate to the size of the transaction.

Want to make $5,000,000 on a deal? Do $5,000,000 deal type stuff. Hedge funds. Commercial real estate.

To build the right strategic partnerships – for business development, for technical and operational support, and other essentials – you'll need the right agreement language.

You will need agreements A) to keep your a$$ covered, when it is time to GET PAID and B) to not look like a clown that isn't really doing business, because only a clown attempts to do business without agreements.

The language below covers “non-circumvent,” which is the clause that keeps your new strategic partner from going around you, cutting you out of the picture with your own contacts, and doing business with your contacts behind your back (without property compensating you). You may or may not recognize the importance of this clause. Yet, if you hold anything of real value – and are bringing this to the tablekeeping it probably lends you negotiating power. It would be wise to protect that asset, whether it is a piece of technology, software, or specific individual(s).


The rest of the clauses essentially deal with mutual protections on both sides.

Rights and Confidential Information; Non-Circumvention.


A. Nothing contained herein shall give either Party any ownership rights in or to, or license to use any materials, trademarks, or information of the other Party. Further, unless specifically set forth in writing, neither Party grants the other any right, title, or interest in or to any software, scripts, customizations, integrations, or other work product produced during the course of performance of this Agreement.


B. “Confidential Information” means all business and technical information of either Party whether disclosed in writing, orally, or in any other form, tangible or intangible, including but not limited to: (i) information concerning inventions, discoveries, concepts, brainstorming, ideas, techniques, processes, designs, specifications, drawings, diagrams, models, samples, flow charts, computer programs, algorithms, data, finances and financial plans, customer lists, business plans, contracts, marketing plans, production plans, distribution plans, system implementation plans, scripts, business concepts, supplier information, business procedures, business processes, business operations, all know-how and intellectual property, and any and all materials related thereto; and (ii) any information or materials that either Party obtains from any third party that the obtaining Party treats as proprietary or designates as Confidential, whether or not owned by the obtaining Party.


C. Both Parties agree that the following information shall not be considered Confidential if it: (i) is already known by the receiving Party prior to signing this Agreement; (ii) is or becomes publicly known through no wrongful act of the receiving Party; or (iii) is rightfully received by the receiving Party from a third party without restriction and without breach of this Agreement.


D. The Parties agree not to disclose, reveal, or otherwise release any Confidential Information obtained, developed, or disclosed in the performance this Agreement, whether oral or written, to any third party, or directly or indirectly use such Confidential Information, other than in performance of this Agreement, except as previously authorized in writing by the other Party.


E. Company and Agency will be providing information and/or lead opportunities relating to their confidential customer base for purposes of providing material and service(s) on behalf of Company. Agency may be in the business of providing the same or similar product(s) and service(s) as Company; as such, Agency and Company agree to remain in the roles in which they are initially introduced with each client contact.


Company, Agency, and appointed agents shall remain the primary contact and facilitator between Agency and Company’s customer(s). Company shall not discuss product(s), product alternative(s), or pricing directly or indirectly with customer(s) generated or solicited by Agency unless directed by Agency. It is furthermore agreed to that all billing and invoicing for the product(s)/service(s) will be prepared by Company as the vendor and distributed by Company or with Company approval. Company shall bill clients directly for time and materials unless otherwise agreed to in writing. Company shall honor its price quotes for Products that it has provided to Agency for thirty (30) calendar days.


In the event a customer that Agency solicited or generated directly contacts the Company or its affiliates for a current or future project, the Company shall refer the customer to the Agency, and Agency shall make all communications with said customer. Both Company and Agency shall make no attempts to solicit business from existing, generated, and solicited customers of the other Party. The monthly reports generated shall include a comprehensive list that will reflect the Parties’ existing, solicited, and generated customers for the purposes of determining the Parties’ customers. Furthermore, Company agrees not to sell directly to representatives of Agency without express written permission of Agency.


Company shall not solicit Agency’s employees or its representatives, including its Agents. For a period of two years from the date of a former employee’s or Agent’s termination, Company is prohibited from hiring and soliciting Agency’s former employee(s). Company shall be prohibited from soliciting or utilizing for a period of two years after termination of this Agreement any of Agency’s industry contacts, including but not limited to: (1) financiers; (2) wholesalers; (3) vendors; (4) suppliers; (5) contractors; and (6) sub-contractors.




7. Auditing.Agent shall possess the right to audit Company’s financial records that are relevant to this Agreement one (1) time a fiscal calendar year. If Agent elects to utilize this right, it must notify the Company as such, and the Company shall provide Agent access not more than fifteen (15) calendar days after receipt of the written notice. Company shall also provide Agent a monthly report on the first of each month that shall contain a list of Clients that it has procured agreements with as a result of Agent’s solicitation and introduction efforts under this Agreement.


Company shall possess the right to audit Agent’s records that are relevant to this Agreement one (1) time a fiscal calendar year. If Company elects to utilize this right, it must notify Agent as such, and Agent shall provide Company access not more than fifteen (15) calendar days after receipt of the written notice. Agent shall also provide Company a monthly report on the first of the month that shall contain a list of potential Clients it has solicited on the behalf of the Company.


8. Expenses. Each Party shall bear their own expenses that are incurred by them during the term of this Agreement. Accordingly, the Company shall not be responsible for any costs or expenses of Agent whatsoever, nor shall Agent be responsible for any costs or expenses of the Company.


9. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, representatives, successors, and assigns, but shall not be assignable by any Party hereto without prior written consent.


10. Amendments and Waiver. No amendment or modification hereto or waiver of the terms hereof shall be valid unless in writing executed by each of the Parties. No waiver of any term, provision, or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a further waiver of any such term, provision, or condition or as a waiver of any other term, provision, or condition.


11. Entire Agreement. This Agreement contains all of the agreements of the Parties hereto with respect to any matter covered or mentioned in this Agreement, and no prior agreements or understandings pertaining to any such matters shall be effective for any purpose. No provisions of this Agreement may be amended or added to except by a subsequent agreement in writing signed by the Parties or their respective successors in interest. This Agreement shall not be effective with respect to, or binding on any Party until fully executed by both Parties hereto.


  1. Indemnification. Agent agrees to indemnify, defend, and hold harmless Company, and its affiliates, directors/governors, officers, members, employees, and agents, from and against any and all liability, claims, losses, damages, injuries, or expenses (including reasonable attorneys’ fees) incurred as a result of a claim or action brought by a third party, and arising out of the actions of the Agent that is related to this Agreement.

I'll update this thread periodically with new language, for specific contexts.

An example for the future is the "non-disclosure" part of the agreement. That's the part that keeps both sides from talking to anyone outside of the deal about the deal. AKA the "loose lips
sink ships" clause.
 

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Vigilante

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I have seen a true transformation in @Ubermensch over a few years. Anyone that wrote him off in the early days and/or blocked him from some high energy, profanity laced rants missed what I saw early on, and what he is bringing out now.

I have no doubt that his personal life mirrors his public life --- that he has found a rhythm that is working.

Threads like this (where he is talking LESS and adding MORE) are evidence. You know the people who need to drive a new Mercedes the most? The people that can afford it the least (some times).

Even though I have been to the rodeo before, I will be able to use some of the specific, actionable content in this original post. Even if you don't need it now, there would be no reason that everyone that reads it would learn from it, book mark it, and be able to reference it later. If you never come across a deal in which you need some of the above information, I propose you will never have worked in a fast lane transaction.

Thanks for an excellent post, and excellent transformation, and the willingness to give back here to bring other people along. Law is one of the love languages of business.

Speed+.
 

OVOvince

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ROTFL LMAO WTF

just kidding bro ;)

This is amazing. Thanks a ton man seriously
 
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I have seen a true transformation in @Ubermensch over a few years...

Thanks for an excellent post, and excellent transformation, and the willingness to give back here to bring other people along. Law is one of the love languages of business.

Speed+.
As you often remind everyone here, action beats words. Walking the walk > talking the talk.

As promised, below is text that can be used for "confidentiality," and "non-disclosure."

This time, I highlighted the legalese in blue, instead of green (blue seems easier on the eyes).

Also, I included language you might consider using to consummate "intellectual property rights" (important if you have any abstract - or concrete - data that you consider proprietary), and "non-solicitation." The non-solicitation is even more specific than the "non-circumvent" in the original post.

In business, a negotiation is all about what you and the other guy bring to the table. An agreement should mutually protect both parties - and the stuff they're bringing to the table.

With just the non-circumvention text in the OP, and the passages covering "confidentiality/"non-disclosure","non-solicitation," and "intellectual property rights," you should be able to create a fair and professional agreement.

Time to close deals, and get agreements signed.

CONFIDENTIALITY: Except for matters of public record, information already within the other Party's possession prior to entering into this Agreement, and except to the extent required (through deposition, interrogatory, request for production, subpoena, civil investigative demand or similar process) by a court order, both parties agree to keep confidential all information, including pricing and any data collected hereunder, unless expressly agreed to in writing by Representative and Consultant. Both parties specifically agree to keep confidential and agree not to disclose to any third party any terms and conditions or waiver of the same which deviate from the standard terms and conditions provided to both parties, which either party may agree to with any individual solicited customer(s). In the event that either party becomes required, in the manner specified above, to disclose any confidential information, either party shall provide prompt written notice to the other party so that the other party may timely seek a protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained, both parties agree (i) to furnish only that portion of the confidential information that is required to be furnished and (ii) to exercise reasonable commercial efforts to obtain assurance that confidential treatment will be accorded such confidential treatment.

Notwithstanding the foregoing, confidential information shall not include: (i) information which was, at the time of disclosure, in the public domain; (ii) information which subsequently becomes, after disclosure, part of the public domain through no act or omission of either party; (iii) information which was, prior to disclosure, already in either party's possession and was not acquired, directly or indirectly, from a third party who, to either party's knowledge, is under a contractual or fiduciary obligation of confidentiality to either party; and (iv) information whichis, subsequent to disclosure, lawfully and independently obtained by either party, to its knowledge, from a third party who is lawfully in possession of such information and who is not under a contractual or fiduciary obligation of confidentiality to either party with respect to such information.


INTELLECTUAL PROPERTY RIGHTS: All information, reports, designs, drawings, specifications, and calculations and the like associated with the data Representative and Representatives relationships and connections provide to Consultant is the property of Representative and Representative shall own all intellectual property rights therein (includingthe rights to any patent, trademark or service mark, trade secret, and copyright therein). All information, reports, designs, drawings, specifications, documents and the like associated with the data Consultant and Consultant's suppliers provide to Representative, is the property of Consultant and Consultant shall own all intellectual property rights therein (including the rights to any patent, trademark or service mark, trade secret, and copyright therein).

All manufacturing contacts, sales representatives, third-party financing resources, third-party sources and strategies, including, but not limited to manufacturers, leasing companies, third-party finance companies, energy brokers, marketers, marketing companies, business development professionals, lenders and lending strategies is the property of Consultant and Consultant shall own all intellectual property rights therein.

NON-SOLICITATION: Consultant and Representative both agree for the term of this Agreement and for three years subsequent to the termination of this Agreement, that neither party will employ, or enter into business relationships with the other party's employees, sales representatives, strategic partners, manufacturers, third-party finance companies and contacts, and software companies, without the prior written consent of the other party and will not solicit or attempt to induce the other party's employee, sales representative or strategic partner to become its employee.
 
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Thank you for this @Ubermensch ! I'm using a Confidentiality Agreement now and I will compare mine with this.
Since all law is 100% based on precedent, this is the smartest approach. All contracts are just blends of previously drawn contracts. There is no new "art" in business contracts, and if you have someone that is writing contracts from scratch, it is either a newbie or a charlatan. @Bigguns50's approach is smart. You take all drafts of you can get your hands on, and meld them into a useful document.

Attorneys charge $500 an hour to take someone else's work, cut and paste it into a new document, and bill you for it. The smarter you are about legal matters, and the more familiar you are with the basics of contract law, the more you can save yourself in the drafting phase of any agreement by simply knowing what you want included.

I have a client that paid for my courses to get a paralegal certificate from a Minnesota university. He knew if I knew the basics of legal drafting, the $20k he paid would be paid back within a few contract drafts. As an entrepreneur, you can get a lot of free or cheap education in business law which will be useful in 100% of future business dealings. There is no company / no entrepreneur that is immune to this. The less you know, the more you pay.
 
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There is no new "art" in business contracts, and if you have someone that is writing contracts from scratch, it is either a newbie or a charlatan.
The only time I had an agreement written from scratch, it was written by my law firm. By far, this was the most expensive task I've ever had them perform.

You can save yourself a lot of money by coming to an attorney AFTER your have a solid draft in place.

@Bigguns50's approach is smart. You take all drafts of you can get your hands on, and meld them into a useful document.
Yep, that's exactly what I've done over the years.

Below are several more standard clauses that almost everyone should at least have at their disposal.

Perhaps the most important clauses below are "commissions" and "obligation of company to pay commissions." What's the point in all of the work getting done, if you ensure that you will GET PAID?

Depending on the context, you might want to opt for a synonym of "commission," such as "fee," or "profit share." I would consider using the latter two terms if you are developing a strategic partnership with a senior business professional, like a retired Fortune 500 executive who has agreed to work on a project with you.

Term. The term of this Agreement shall commence on the Effective Date and continue until terminated in writing by either Party, which either Party may do at any time, with or without cause.

Scope of Engagement.
Agent hereby agrees to provide to Company marketing and client solicitation services within North America (hereinafter the “Territory”). Agent acknowledges that it is an independent contractor for the purposes of this Agreement. Agent acknowledges that it does not possess the authority to make any commitment or representation, express or implied, on the behalf of Company, unless authorized to do so in writing. Except to the extent specified herein, Company shall not direct the mode or manner of Agent, or otherwise control or supervise the actions of Agent with respect to Agent’s performance under this Agreement. Agent shall be responsible for all taxes arising from compensation, commissions, or other amounts paid under this Agreement. Additionally, Agent shall be responsible for all payroll taxes and benefits of its employees.

Expenses. Company has no obligation to reimburse Agent for any expenses incurred by Agent in connection with its performance of this Agreement.

Non-Assignability & Binding Effect.
Except as otherwise provided for herein this Agreement, neither Party may assign any of its rights or delegate any of its obligations under this Agreement to any third party without the express written consent of the other Party.

Client Relationship. Agent’s primary duty under this Agreement is to introduce and assist Company in establishing relationships with Clients in the call center or energy related industries. Agent shall provide Company a written report on the first of every month indicating the Clients it has solicited on the behalf of Company. This report shall provide Company the following information: (1) solicited prospective Clients’ names; (2) method and means of solicitation; and (3) date of last contact with the prospective Client.

Cooperation. Each Party will use its best efforts to take all actions and do all things necessary, proper, or advisable in order to consummate, make effective, and comply with all of the terms of this Agreement.

Commissions.
If Company enters into a written agreement with a Client where the Client will solicit new potential customers for Company’s services, Agent will be entitled to a Commission. The Commission due from Company to Agent shall be fifty percent (50%) of the net profits collected from the direct sales that are generated by the solicited Client. Provided however, Agent and the Company may mutually agree to adjust the Commission based upon certain situations, such as higher or lower priced prospects, or larger call volumes requiring more competitive rates. In such event, the adjusted Commission rate must be evidenced in writing by a signed addendum executed by both Parties.

Agent acknowledges that the pricing is based on the Company’s policies and that the terms of the agreement executed between the Company and Client shall be negotiated solely between the Company and the Client. The Company agrees to provide a copy of the solicitation agreement between the Company and Client (if in writing) to Agent, and if said agreement is not in writing, the Company shall provide Agent with a summary of the terms of the agreement.

The Company shall pay Commissions to Agent at least fifteen (15) calendar days after receipt of payment received by the Company from the customers. Commissions will be paid for the duration of the Company’s engagement with the Client. Commissions will begin to accrue immediately upon the first day that services are provided, and shall continue thereafter for the entire term of the Client engagement.

Notwithstanding the foregoing, Company shall not be obligated to pay Agent any Commission with respect to any accounts that are in arrears, or when a customer cancels their request for services. Additionally, Company is not obligated to pay Commissions to Agent if at the time Agent solicited the Client, Agent was in breach of this Agreement. Company shall not pay Agent any such payment that would constitute a violation of state, federal, or international law. Agent shall not be entitled to any Commissions for any Clients that Company has directly procured without the assistance of Agent.

Termination. This Agreement may be terminated by either Party for cause or without cause, so long as thirty (30) calendar day written notice is provided by the terminating Party.

Effect of Termination & Survival. Upon termination of this Agreement, Agent shall discontinue promotion of Company’s services. Without limiting the generality of the foregoing, Company and Agent shall cease all display, advertising, and use of all of the other Party’s names, trademarks, logos, and designations. The Parties shall be obligated to pay all outstanding invoices within thirty (30) calendar days of the termination date. Agent shall be entitled to Commissions for one month after the cancellation of this Agreement. Agent shall not be entitled to receive any further compensation thereafter. After termination of this Agreement, Agent shall not be entitled to Commissions for any agreements entered into between Company and new, existing, or former Clients or customers.

Obligation of the Company to pay Commissions. The Company will be obligated to pay Commissions to Agent only if all of the following criteria are met:

A. Agent has introduced the Client to Company;


B. The introduction by Agent results in a written solicitation or marketing agreement between Company and introduced Client within one (1) year of said introduction.

C. Agent will use commercially reasonable efforts to locate and introduce potential Clients to the Company, provided that the Company acknowledges that this is a non-exclusive arrangement and that Agent is not obligated to introduce every opportunity to the Company. Once a Client has been introduced to the Company, Agent, upon the Company’s reasonable request, agrees to provide support, including but not limited to, arranging meetings, teleconferences, and workshops for the negotiation, consummation, and performance of an agreement between the Company and Client. Notwithstanding the foregoing, Agent agrees that a lead given to and accepted by the Company will be an exclusive lead and not shared with others.
 

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Hello @Ubermensch, nice to see your genius side shining :) .....( i always knew too :)

Regarding number 07 ...Auditing ...Have you done it before ? ...it seems a bit gutsy for an independant agent to make the actual request of auditing a company ?
 

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Also...i dont see anything as an '' exit strategy '' in case you dont /cant perform as expected ...Or did i miss it ?
 

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@Ubermensch FYI....Your Nondisclosure was very useful to me. I have 2 different ND's so I took from all three and it seems I have a better ND than before. One of my best friends is a great attorney so of course I will run this through him. Thanks again !
 
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Also...i dont see anything as an '' exit strategy '' in case you dont /cant perform as expected ...Or did i miss it ?
Hello @Ubermensch, nice to see your genius side shining :) .....( i always knew too :)

Regarding number 07 ...Auditing ...Have you done it before ? ...it seems a bit gutsy for an independant agent to make the actual request of auditing a company ?
The best validation in life comes from your peers.

@Ubermensch unleashed. lol

Quick note on "exit strategy."

The closest this language gets to covering that would be the "termination" clause.

Law 29 in the 48 Laws of Power commands us to "plan all the way to the end."

In a business arrangement, "the end" to which you should "plan all the way to" is the signature on the dotted line, the stroke of the chief executive's pen.

In Jordan Belfort's "straight line" system, he mentions Sun-Tzu, and focusing on the ultimate strategic goal, making sure that the conversation progresses in a "straight line," from beginning to "the end."

In the sale, planning all the way to the end means preparing the client for the content of the agreement, starting early in the process.

In other words, you don't want the content of the agreement to "surprise" the client in any way.

"Auditing." Yikes. Such a harsh word. So jarring, almost like a swear word.

And yet, some words must be said.

@Vigilante has correctly pointed out that a focus on the overall picture - by collecting agreements, adding and subtracting to them - you can piece together proper legal language, language that will make you look professional (which you are, if you are actually executing serious agreements in real life), language which will actually allow you to consummate agreements.

$igned agreements are a per-requisite to money flow. Almost every serious business man knows this. I say "almost," because somewhere in the heart of America, there exists the true "old-school" type of businessman. This "old-school" type of business man does "hand-shake" agreements, agreements bonded and held together only by the strength of his word, his street cred. How do you know when you meet this type? How do you know if you ARE this type?

If you know, you just know.

They say that selling is like seducing or "picking up" a woman. This is true (and women will agree with me on this), in the sense that selling is all about "leading."

To sell a client, you have to lead the client.

If I am selling a client, it is my responsibility to have an agreement in place.

If I am approaching a large company about a strategic partnership, it is my responsibility to have an agreement in place, just as it is my responsibility to demonstrate - at the very least - theoretical evidence as to why an engagement with me will be profitable.

There exist models of business that - when properly executed in the marketplace - produce a guaranteed positive business result.

Due to inefficiencies in the marketplace, there are "needs" that can be met, and can be exploited for profit.

The bigger the industry, the more immense the profits get.

These models of business - in all of their fathomable forms - all involve educating the customer, in essence.

A client can't buy from you until he knows what he's buying.

Selling, marketing, copywriting - at all leads to one ultimate strategic goal.

Planning all the way to the end means telling the client what they will get.

To tell them what they will get, you have to tell them how they will get it.

You have to point the client to a positive destination that you can help him or her get to - and then show them how you will get them there.

If you have a case study, the "showing them how" part gets a lot easier.

As you are "showing them how," you should walk them through the process, and be 100% transparent about what they're getting themselves into.

Look at how MJ sells his book, and this forum.

Look at how Morpheus sold Neo.

Do you want the red pill?

Or do you wan the blue pill?

Do you want to live in ignorant bliss until you die an uneventful death, ending a life that will be forgotten as quickly as you've exhaled your last breath?

Or do you want the truth, and choose to act on that truth, no matter how bad it hurts - no matter how much power you need to create, find, generate, and conjure up - and remember that life is just a dance, and all of the dots connect.

You just have to let yourself see them.

I have an auditing clause in my agreements, because I do not work on transactions of small sizes (unless I can aggregate small transactions in large sizes).

If I am speaking to a client - or a strategic partner - that is at the upper end of the middle market (middle market defined as $50M - $500M in annual revenue), then I am only speaking to them about revenue and profit.

Period.

The middle market in the United States (and I presume globally), lack a lot of the intellectual fire-power wielded by Fortune 500 companeis.

Fortune 500 companies have all the money in the world, so they can hire anyone in the world, to make them as insanely efficient as possible (and yet, the sharpest entrepreneurs in America have the capability to spot - and exploit - inefficiencies even in organizations of this size).

$50M+ companies are doing such numbers for a reason.

They are winning, and doing so in a relatively big industry.

A profitable engagement with a client - depending on the depth and size of the inefficiency you discover - can easily yield six, seven and even eight-figure paydays.

Such paydays occur, simply due to the high margin nature of certain industries.

The LED Lighting industry has insane margins.

The window film industry has insane margins.

Both industries taking home 30% - 50% of gross.

If you land a large enough commercial property - or, better yet, a portfolio - then you're swimming in the money.

A business partner of mine told me about a guy in Maryland (who is apparently so dumb that he can't even spell "LED") - who makes $1,000,000+ a year selling lights to his dad's clients.

And yet, he gets paid.

I assure you, he is no dummy.

He has his agreements - most importantly - with his suppliers in place (hint: preferably, you don't even have fee agreements directly with your "clients." Just get paid by suppliers on the back end, and make sure your "back end" is covered with an iron-clad agreement).

You don't want your suppliers going around you, talking to your clients, negotiating and signing new and additional deals without involving you. Better have non-circumvent to cover that.

Going to a supplier and talking about the non-circumvent shows them that you're not playing. You'll talk to any supplier with the proper credentials. They should bend over backwards to meet your expectations.

There are lots of them. Only one of you.

I don't care if my clients want to audit me. My partners either.

And they shouldn't mind if I do the same.

Some of the things in this agreement are there, even though you don't even need them if you're doing business with the right people.

If you get a whiff of sleaziness from someone, bounce. Run.

Some people have companies that will never grow to their full potential, because they aren't willing to plan for the long-term.

If you're 100% all in - like I am - that means you feel the pain of hunger immensely, and you feel the glory of victory with equal intensity.

If you strike a deal that yields $12,500,000 in net profits, and - after paying all of your partners - you walk away with $3,700,000 liquid... and if you don't close the deal, you get zero, zilch, nothin'... then you're going to really give a $HIT about having the right legal language in place to make sure some jerk isn't playing with the numbers.

Besides, if you're playing with meaningful numbers - and those numbers can make you live like a god forever - you've got to be working with either Class A old-school business man types, or (and more likely), you are working with partners and clients that use legal agreements as a customary and natural method to clarify the roles of the relationship.

Serious business requires serious input of time, energy, focus and real intensity, performing actions to move the business along the process to the grand ("grand" in terms of the "Grand Strategy" referred to in the 12th Strategy of War in Greene's 33 Strategies of War) strategic goal (i.e. market conquest).

If you reflect long and hard enough on any particular process - and this is true for business processes as well - you will learn and internalize the steps. You will know it backward and forward, and you will be able to precisely and clearly discuss these steps with anyone in an agreeable fashion.

You can "teach" them the way.

In the sale, it means establishing yourself as a trustworthy person, one who values fairness and rightness in business above all things.

Naturally, such a person would have a "non-disclosure" in place. Loose lips sink ships. $ilence is golden. $ush. The whole world doesn't have to know.

Naturally, that person would state - in writing - that he will be discrete, and that he will not cut you out of the deal in an unfair way ("non-circumvention").

Of course, such a person needs - in writing - the precise amount he is to be paid, and he needs you to know precisely why you're paying him!

And it shouldn't be a surprise that such a person is all about the numbers, and needs the numbers to be checked.

Before the private jets.

Before the mansions on islands.

Before the glory.

Before all of that, there is a hustler grinding, climbing (and sometimes cursing
@Vigilante :tiphat:) his way to the point when agreements are signed.

Signatures leads to figures.

Signatures = figures. lol

Figures = commas.

Commas = those little poop lookin' things hiding between the numbers on my checks and deposits.

Sometimes, I begin a sentence with the word "sometimes," and put a comma after the word both times the word "sometimes" appears in the sentence.

:upyours:

@Bigguns50

Glad to help.

Real recognize real. lol :pompus:
 

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Last edited:

Vigilante

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The best validation in life comes from your peers.

@Ubermensch unleashed. lol

Law 29 in the 48 Laws of Power commands us to "plan all the way to the end."

In a business arrangement, "the end" to which you should "plan all the way to" is the signature on the dotted line, the stroke of the chief executive's pen.

In Jordan Belfort's "straight line" system, he mentions Sun-Tzu, and focusing on the ultimate strategic goal, making sure that the conversation progresses in a "straight line," from beginning to "the end."

In the sale, planning all the way to the end means preparing the client for the content of the agreement, starting early in the process.

In other words, you don't want the content of the agreement to "surprise" the client in any way.

"Auditing." Yikes. Such a harsh word. So jarring, almost like a swear word.

And yet, some words must be said.

@Vigilante has correctly pointed out that a focus on the overall picture - by collecting agreements, adding and subtracting to them - you can piece together proper legal language, language that will make you look professional (which you are, if you are actually executing serious agreements in real life), language which will actually allow you to consummate agreements.

$igned agreements are a per-requisite to money flow. Almost every serious business man knows this. I say "almost," because somewhere in the heart of America, there exists the true "old-school" type of businessman. This "old-school" type of business man does "hand-shake" agreements, agreements bonded and held together only by the strength of his word, his street cred. How do you know when you meet this type? How do you know if you ARE this type?

If you know, you just know.

They say that selling is like seducing or "picking up" a woman. This is true (and women will agree with me on this), in the sense that selling is all about "leading."

To sell a client, you have to lead the client.

If I am selling a client, it is my responsibility to have an agreement in place.

If I am approaching a large company about a strategic partnership, it is my responsibility to have an agreement in place, just as it is my responsibility to demonstrate - at the very least - theoretical evidence as to why an engagement with me will be profitable.

There exist models of business that - when properly executed in the marketplace - produce a guaranteed positive business result.

Due to inefficiencies in the marketplace, there are "needs" that can be met, and can be exploited for profit.

The bigger the industry, the more immense the profits get.

These models of business - in all of their fathomable forms - all involve educating the customer, in essence.

A client can't buy from you until he knows what he's buying.

Selling, marketing, copywriting - at all leads to one ultimate strategic goal.

Planning all the way to the end means telling the client what they will get.

To tell them what they will get, you have to tell them how they will get it.

You have to point the client to a positive destination that you can help him or her get to - and then show them how you will get them there.

If you have a case study, the "showing them how" part gets a lot easier.

As you are "showing them how," you should walk them through the process, and be 100% transparent about what they're getting themselves into.

Look at how MJ sells his book, and this forum.

Look at how Morpheus sold Neo.

Do you want the red pill?

Or do you wan the blue pill?

Do you want to live in ignorant bliss until you die an uneventful death, ending a life that will be forgotten as quickly as you've exhaled your last breath?

Or do you want the truth, and choose to act on that truth, no matter how bad it hurts - no matter how much power you need to create, find, generate, and conjure up - and remember that life is just a dance, and all of the dots connect.

You just have to let yourself see them.

I have an auditing clause in my agreements, because I do not work on transactions of small sizes (unless I can aggregate small transactions in large sizes).

If I am speaking to a client - or a strategic partner - that is at the upper end of the middle market (middle market defined as $50M - $500M in annual revenue), then I am only speaking to them about revenue and profit.

Period.

The middle market in the United States (and I presume globally), lack a lot of the intellectual fire-power wielded by Fortune 500 companeis.

Fortune 500 companies have all the money in the world, so they can hire anyone in the world, to make them as insanely efficient as possible (and yet, the sharpest entrepreneurs in America have the capability to spot - and exploit - inefficiencies even in organizations of this size).

$50M+ companies are doing such numbers for a reason.

They are winning, and doing so in a relatively big industry.

A profitable engagement with a client - depending on the depth and size of the inefficiency you discover - can easily yield six, seven and even eight-figure paydays.

Such paydays occur, simply due to the high margin nature of certain industries.

The LED Lighting industry has insane margins.

The window film industry has insane margins.

Both industries taking home 30% - 50% of gross.

If you land a large enough commercial property - or, better yet, a portfolio - then you're swimming in the money.

A business partner of mine told me about a guy in Maryland (who is apparently so dumb that he can't even spell "LED") - who makes $1,000,000+ a year selling lights to his dad's clients.

And yet, he gets paid.

I assure you, he is no dummy.

He has his agreements - most importantly - with his suppliers in place (hint: preferably, you don't even have fee agreements directly with your "clients." Just get paid by suppliers on the back end, and make sure your "back end" is covered with an iron-clad agreement).

You don't want your suppliers going around you, talking to your clients, negotiating and signing new and additional deals without involving you. Better have non-circumvent to cover that.

Going to a supplier and talking about the non-circumvent shows them that you're not playing. You'll talk to any supplier with the proper credentials. They should bend over backwards to meet your expectations.

There are lots of them. Only one of you.

I don't care if my clients want to audit me. My partners either.

And they shouldn't mind if I do the same.

Some of the things in this agreement are there, even though you don't even need them if you're doing business with the right people.

If you get a whiff of sleaziness from someone, bounce. Run.

Some people have companies that will never grow to their full potential, because they aren't willing to plan for the long-term.

If you're 100% all in - like I am - that means you feel the pain of hunger immensely, and you feel the glory of victory with equal intensity.

If you strike a deal that yields $12,500,000 in net profits, and - after paying all of your partners - you walk away with $3,700,000 liquid... and if you don't close the deal, you get zero, zilch, nothin'... then you're going to really give a $HIT about having the right legal language in place to make sure some jerk isn't playing with the numbers.

Besides, if you're playing with meaningful numbers - and those numbers can make you live like a god forever - you've got to be working with either Class A old-school business man types, or (and more likely), you are working with partners and clients that use legal agreements as a customary and natural method to clarify the roles of the relationship.

Serious business requires serious input of time, energy, focus and real intensity, performing actions to move the business along the process to the grand ("grand" in terms of the "Grand Strategy" referred to in the 12th Strategy of War in Greene's 33 Strategies of War) strategic goal (i.e. market conquest).

If you reflect long and hard enough on any particular process - and this is true for business processes as well - you will learn and internalize the steps. You will know it backward and forward, and you will be able to precisely and clearly discuss these steps with anyone in an agreeable fashion.

You can "teach" them the way.

In the sale, it means establishing yourself as a trustworthy person, one who values fairness and rightness in business above all things.

Naturally, such a person would have a "non-disclosure" in place. Loose lips sink ships. $ilence is golden. $ush. The whole world doesn't have to know.

Naturally, that person would state - in writing - that he will be discrete, and that he will not cut you out of the deal in an unfair way ("non-circumvention").

Of course, such a person needs - in writing - the precise amount he is to be paid, and he needs you to know precisely why you're paying him!

And it shouldn't be a surprise that such a person is all about the numbers, and needs the numbers to be checked.

Before the private jets.

Before the mansions on islands.

Before the glory.

Before all of that, there is a hustler grinding, climbing (and sometimes cursing
@Vigilante :tiphat:) his way to the point when agreements are signed.

Signatures leads to figures.

Signatures = figures. lol

Figures = commas.

Commas = those little poop lookin' things hiding between the numbers on my checks and deposits.

:upyours:

@Bigguns50

Glad to help.

Real recognize real. lol :pompus:
Two quick thoughts :

1. want to disarm a client completely? Offer first to insert a provision to let THEM audit YOU. (hint : they'll never audit you). Then, ask for reciprocity

2. We've been talking offline lately about having the prospect/client/customer feel like they are part of your "design" team in everything from product, SAAS, all the way down to contract provisions. The more the buyer feels like it is his idea, his concept, his language, the more he owns the deal. The more he feels like he is the boss, the more he feels like he is the creator, the more likely he will be to press over any obstacles. Facilitate the buyer feeling like he "wins." Like he "creates." Like he's the driver.
 

axiom

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I hope you guys realize the thousands of $$ @Ubermensch has poured into developing the legal language for these contracts.

Huge thanks are in order.
 
OP
OP
U

Ubermensch

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I hope you guys realize the thousands of $$ @Ubermensch has poured into developing the legal language for these contracts.

Huge thanks are in order.
Thanks, brother.

A wise man accepts the help of others.

The fool rejects it and doesn't want to get "spoon fed."

@Thiago Machado
@Cyriex

smh
 
OP
OP
U

Ubermensch

Contributor
Speedway Pass
Jul 7, 2008
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893
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I hope you guys realize the thousands of $$ @Ubermensch has poured into developing the legal language for these contracts.

Huge thanks are in order.
I'm glad that I keep detailed records of communications, kind of how this forum keeps words spoken in history frozen in text.

Numbers and contracts don't lie; people do.
 
OP
OP
U

Ubermensch

Contributor
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Humpty Bumpty sat on a wall,
Humpty Bumpty had a great fall,
Everyone wondered what held Humpty together,
Humpty knew that only his attorneys protected him forever.

@ironman150 :devil:
 

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