My $2500 Plan
A few weeks ago I was discussing a testy problem with a RCO and I explained that he just needed a manager because he didn't have enough time to manage his RCO. Sound familiar? Well I knew the RCO and I knew he wasn't broke, so I said something like, "Hey, what do you have to lose? It only takes $2500!" To that he said, "What do you mean? Only $2500?" As I explained to him, here's My $2500 Plan.
What I explained to the RCO is that, I am just like him. I have an RCO. I am required to develop it. I am subject to perform as per the Charter. And I simply don't have enough time! Sound familiar? What changed for me was that a few weeks earlier, I had stopped and considered what it really cost to launch a RCO. Like many, I had never really considered the cost and had defaulted to think, 'it was expensive'. When in reality, it was only $2500! Once I realized that, I quickly agreed to put up the money and immediately started looking for a manager. In fact, the next day while I was talking to a very bright young man in my region, I told him that I needed a manager. He quickly picked up on the perceived hint and told me as much as he loved the Liberty Dollar, he was locked into a great job and couldn't do it. I whole-heartedly agreed, and when I asked him for a candidate he suggested, Scott Boyd, a friend who was currently unemployed.
Just a few days later, I called Scott Boyd. He sounded like a good prospect although he had no person-to-person sales experience. But he was interested and asked some probing questions. I replied that I had the info and emailed it to him. A few days later, we talked again. And again I emailed some info to him. We did this several times and after a few weeks we discussed the financial aspects and I offered to formalize our discussions with a contract. Within a week, we signed the contract and I have every prospect that Scott will do just fine. Total time: about a month.
The two biggest parts of this process, was my desire to make my RCO successful and the reality that I could do it for only $2500. Here is the budget I penciled out and the list of documents I send to Scott during our discussions:
Like most of us, rent is not an issue so I didn't include it in the budget. I used the program QuickBooks and had my accountant set it up and give some quick instructions for Scott. Est. cost $100. I valued $1000 in Liberty Dollars (ten $20 currency packs and eighty $10 Silver Libertys) that I had on hand at the current RCO quote of $8.00 (6.50 + 1.50). Ten re-priced Merchant Displays for $80 and budgeted $80 for ten new Merchant Placemats. 100 brochures for $7, 50 small Merchant Labels and 50 large Merchant Labels. There was no allotment for car or gas, as Evansville is small and the Contract did not include it. But I was on the hook for $20 for every Merchant that Scott enrolled into the Liberty Merchant program as specified by the terms of the Contract. Additional $92 for invoice book, business cards and other misc. items.
Cost: $1200 (excluding the $20 referral per new Liberty Merchant.)
As specified by the terms of the Contract, Scott gets the $20 Referral from the first 10 Merchants regardless if they get any Liberty Dollar or not. Assuming the worst, my cost is $200 and no profit from any exchanges, which is unlikely, as we all know. For Scott to get the $20 Referral, a Merchant must get a minimum of five Silver Libertys in the second set of 10 Merchants. Regardless of how many Merchants don't get the five Silver Libertys, the next ten Merchants who get the minimum costs me $200. But wait, to keep it simple, we distributed the $10 SL at an introductory price of only $9.00, so our RCO business just made $50 (10 LM x 5 SL x $1). We now have twenty merchants in our new Merchant Directory and we are starting to roll. All additional Merchants must get at least ten Silver Libertys for Scott to qualify for the $20 Referral. Setting a goal of 50 Merchants who quality for the $20 Referral, and keeping the introductory special at $9 per Silver Liberty, my cost is $1000 and the business made $150 (30x5x1). With 50 Merchants enrolled and without any additional currency exchanges, very unlikely,
Throw in another misc. $100 and you have launched the Liberty Economy of at least 50 Merchants with silver in their hands.
Total Cost only $2500.
Worth it? I think so because with 50 merchants the currency begins to take on a life of its own. Repeat and additional exchanges begin to happen. People start ordering 100 or 1000 Silver Libertys. People start referring other businesses and consumers become Liberty Associates to get their money at a discount. Pretty soon, it is a business with a positive cash flow, which I have agreed to share with Scott.
For only $2500 you too can start a thriving, profitable RCO. My RCO really started when I stopped to consider the actual costs and the rewards. $2500 is nothing to start a business! It is everything you need to succeed.
List of Documents I sent to Scott (not necessarily in order):
Most of these documents are available or on our site.