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Let us suppose our Rhino friend builds a crew and finishes being an
assistant manager. Now it is off to a new location. Ideally, an owner
would like to have his own place. But, especially in a city like LA or New
York, rent is expensive, and more often than not it makes sense to rent
space from an existing owner. The new business will get his new
corporation, some merchandise and move in. The 10 grand he has been saving
goes to his first and last months rent. The ads get put out. An
administrator that makes about 7 dollars an hour is hired. Her job is to
answer the phone all day for the many ads that will be place -- and reps will
call from the field from time to time. The new manager will now run his
office exactly like his promoting manager.
If the new owner is with an existing one, it can go very well or very bad. Right off the bat, recruiting gets affected. Some of the new days of observation that come in have to go to the new owner and that has to be worked out. Several disputes have erupted where one owner feels that he has been given all the poor quality recruits while another owner gets the smart ones. Rent is an issue. Some existing owners are fair about it; some gouge the new guy. The reality is a lot of new businessās fail. So, if a roses owner lets a communications owner rent part of his office space and he fails, he still might owe phone bills or paychecks to his guys. It is the Roses owner whose name is on the lease and he will be held accountable for all unpaid ads and utility bills. He will not be responsible for paying the communications guys, but it will be frustrating for him because especially if they are new, they may not believe he is in fact a separate business from the communications guy. The unpaid guys might try to cause problems for his office. On the other hand, there are several stories of great friendships that exist between people that partner up in locations. Partnering up is good if the owners have different types of campaigns.
Starting an office will depend a lot on the personality of the owner. If the owner has a magnetic personality, then many people will want to go with him - even people that are not on his crew. If the owner has become a prick while being an assistant manager, or just has never had a great rapport with others, no one will want to follow him into his deal. Another thing is if the new owner has several people that have kids and/or strong family ties in the area. They will not uproot all that on a whim and a prayer. On the other hand you can have a greedy promoting manager that does not want to give a new owner too many people to start out with. I have seen cases where only one or two guys are allowed to go with a new owner in his new location.
How is a new owner supposed to pay for ads and rent with just two distributors? This will translate into the new owner going out in the field to help pay bills and hire people. Some promoting managerās let a new owner start with many people and will also cover housing costs for the guys for one month. When it comes down to it, the new owner will take some of the reps from the office to his new office. Some will be from his crew and some will not be. That is one benefit to retraining people off of your crew. You can bond with them and they might want to follow you to your place.