[Atlantic]

I have the opportunity to get business mentorship from a business man who is near retirement.

He is a self made millionaire and has very smart social and analytical skills,
He also has a large business network and still owns several successful business. Plus his game is pretty sharp and he is redpill/alpha (hate using those words haha).

We have already successfully done business once and I have major respect for how well he can negotiate a deal in his favor.

Now the deal is 2-3% of my income for the next few years for guidance and advice. I present him problems, he shows me solutions. He doesn't front me money and he doesn't actually help me follow through. I might have access to his network if I need it.

All it takes is for a small percentage increase in my earnings to make the deal worth my time. Or so It seems...

Has anyone with actual business experience have any advice on this?

I have full reason to trust this man and have seen a good record of honesty in his dealings. He is an aggressive business man though who is quite ruthless in getting what he wants. All the traits that make him a good mentor also seem to make him a dangerous competitor if things turned sour.

I have always read that mentorship is huge in getting to the next level of business but I am trying to safegaurd my ideas and effort.

Whats the best way of going about this?
How do I sum up the risks/rewards of such a deal?

[AntiTrace]

Mentorship is only as good as the expertise and willingness of the mentor. If you say hes legit and you know he is going be there when you need him, I would do it.

For 2-3% your risk is dependent on how much money your currently bringing in, and if 2-3% is a good price for what he will offer.

If your bringing in 10 mil, this guy needs to be worth greater than 2-300 thousand to you.

If your bringing in 100k, he needs to worth greater than 2-3k

[Atlantic]

I am thinking I will be going ahead with it.

It does work out at 3k per every 100k but I believe the knowledge gained will at least have a 10% positive impact on my finances for next year alone.

My thoughts are that at this stage of the game (learning stages of project investment) the more guidance and advice I get from someone who has real experience the better.

I don't think business has to be a zero sums game and that a win-win approach should be the preferable method.

If I do go ahead with it I will be sure to drop a datasheet around Winter detailing the pros and cons.

[WestIndianArchie]

If dude is legit, say a retired Donald Trump giving you Real Estate Investment advice - jump all over it.

Most mentors don't charge, but they also aren't accountable.

WIA

[AntiTrace]

Hopefully it works out, Ill be looking forward to the data sheet.

I'm working on a new pretty big time biz project. 10s of billions of dollars in market value for something I'm passionate about. There's a lot of big players in the field already but I couldn't live with myself if I didnt go for it.

Ill be dropping some data if it works out as well

[MikeCF]

If the guy is legit and he's going to help, it's a no-brainer.

Do the math like this:

You earn 100,000. 3% = $3,000.

$3,000 / 12 months is $250.

If you talk to him once a month, for an hour each session, then you're only paying him $250 an hour.

Most consultants will charge much more than that.

If he helps you double your income, well, it's better to keep 97% of $200,000 than 100% of $100,000...ya know?

[Tigre]

Yeah, it may be a good opportunity.

It's a strangely structured deal, though. Be sure to talk through some of the contingencies to be certain that your expectations match up.

For example, say he agrees to be your mentor and then becomes really flaky and hard to contact. When it comes to giving advice, he just phones it in.

Say he introduces you to a business contact, you don't get on well with the person. Then he refuses to connect you with anyone else.

In both those scenarios, you have to pay him the fixed amount regardless of his performance and value delivered.

From your side, you may want to leave Canada early for personal reasons. Will he still receive value from the deal for the effort he puts in up front?

This deal has the potential to be profitable for both. But it also has the potential to create bitterness in your relationship with this guy if either side feels that expectations haven't been met.

[Atlantic]

Thanks for the info guys.

Ill put up soon what happens.

[gsinplaya]

I've mentored people ....and also have had mentors for my own businesses for many years.

I go after mentors who have the specific skills I am trying to acquire to shortcut the process to expertise.

I think if this guy fits that criteria then do whatever is necessary to get him on board.

[paninaro]

I've never heard of mentors that charge before. Is this so he can be sure you'll be dedicated to it?

One of my mentors was the European CEO of a billion-dollar consumer products company. I met him via my university's alumni network. He never charged me a dime, and even offered to pay my travel costs when I'd come to meet him (we lived in different cities).

I've mentored a few people in my time, and my only "charge" was they buy me a coffee/beer when we meet. I also had a rule that we could only meet once a month at most -- my goal was to provide high-level advice and not day-to-day stuff.

[Bolthouse]

This sounds great on paper, but doesn't quite add up.

As MikeCF said, if you make 100K he gets $3000, and at 200K he get $6000.

But you say he's a retired multi-millionaire?

Someone in those shoes would value the satisfaction of helping a young guy get off the ground far more than a measly few thousand in a year. Which is why mentors are generally free.

[Atlantic]

(08-16-2013 02:23 AM)Bolthouse Wrote:  

This sounds great on paper, but doesn't quite add up.

As MikeCF said, if you make 100K he gets $3000, and at 200K he get $6000.

But you say he's a retired multi-millionaire?

Someone in those shoes would value the satisfaction of helping a young guy get off the ground far more than a measly few thousand in a year. Which is why mentors are generally free.

Paying for mentorship was my idea. The guy is a sought after businessman and paying a couple of thousand a year is a small price if it means increasing my income by several 100k's over the next few years.

I am going to have to pull out the 48 laws on this one:

Quote:

Law 40: Despise the Free Lunch

What is offered for free is dangerous—it usually involves either a trick or a hidden obligation. What has worth is worth paying for. By paying your own way you stay clear of gratitude, guilt, and deceit. It is also often wise to pay the full price—there are no cutting corners with excellence. Be lavish with your money and keep it circulating, for generosity is a sign and a magnet for power.

Being open and flexible with money also teaches the value of strategic generosity, a variation on the old trick of "giving when you are about to take." By giving the appropriate gift, you put the recipient under obligation. Generosity softens people up—to be deceived. By gaining a reputation for liberality, you win people's admiration while distracting them from your power plays. By strategically spreading your wealth, you charm the others, creating pleasure and making valuable allies.

If I go ahead with it I have no problem paying the money. I am more concerned with the actual business risks involved and evaluating the benefits of mentorship versus doing it yourself.

As it stands at the moment is it looking very likely that I will be going ahead with this. I have another two weeks to decide though so I am still weighing up both sides though.

Thanks for the input everyone.

[Lufty]

The information you gave certainly makes it sound like a great deal. If you have access to his network which I assume is pretty good if he is closing in on retirement after a great career then it seems like a no brainier. As an honest person myself if someone was giving me money for my advice I would make damn sure that what I was telling you would be both accurate and useful. If you think you are going to increase your income by as much as 100k then you absolutely have to jump on it.