The question: "How much should the Affiliate owner make every year?" comes up regularly on the Affiliate-owner discussion Board. Usually, the advice given is to pick a number ("How much do you WANT to earn?") and work backward when setting up your fee structure ("How many members, paying X, will I need to pay myself Y?")
I don't disagree with this method, but I don't fully agree either. While the test will help the new Affiliate draw up a framework for her business and pricing, and helps with goal-setting and revenue objectives, most people undervalue what they're worth. They think, "what SHOULD I make?" instead of, "what do I WANT?"
Since most are coming from a Personal Training background, where top earners average around $40-50,000 per year, they lop another $10,000 on top for their bank risk and shoot for that number. These folks are, in the words of Michael Gerber, "buying themselves a job."
On the other hand:
Last weekend, I was sitting on my back deck, which I built with rough cedar that had been discarded by a local mill. I'd been working extra hours all week (a 5am start, instead of my normal 6am) to paint the new space we've added to our Box. My kids were towelling off after dipping in our new pool (a T-frame, it's inexpensive, but big, level, and I work hard to keep it crystal clear for them.) I was drinking beer and barbecuing. In the field next to our yard, the kids' grandpa was cutting hay, and I could smell it when the wind changed direction. My wife had just finished her run through the Valley where we live; I had done the day's workout with a few friends before I left work; my kids had ripped up their Rumble/Tumble group at the Box that morning.
I was thinking, "My God, we're billionaires." Your pay is more than your cheque.
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