Paul and I knew that all our event planning competitors would claim they cared the most about their people. So we had to ask ourselves: Is it possible to actually care more than the others? Can we put our money where our mouth is?
The reality is that businesses exist to make money. So it’s no surprise that increasing profits is a major driving force for a lot of business owners. But we wanted to build a culture of energetic, dedicated, and passionate individuals who loved what they did for a living. We knew we truly wanted to create something bigger than ourselves.
And we realized right away we had to throw out the 50/50 split model that our competitors covet and build an even better compensation model.
If you’re not familiar with the 50/50 model, here’s how it works: Companies basically hire anyone and everyone who has an inkling of sales ability as 1099 subcontractors, they throw some business cards in their hands, then tell them to sell, sell, sell, with 50 percent of the profits going back to the company. As subcontractors, they receive no benefits of any kind, and lack the cohesive environment that is traditionally associated with a winning culture.
We wanted to build an event planning company that actually put our franchisees and W-2 employees first, taking exceptional care of them, and not being greedy. And that philosophy became a cornerstone in creating EventPrep.
When nearly everyone else in the industry is splitting revenues 50/50 with their sales representatives for every dollar that comes in, we decided on 70/30. That’s right! Franchisees get 70 percent, while our team gets 30 percent. Why would we take a smaller cut than the rest of the industry? Because we realized that our job as a franchisor is to help people start a business and grow a business. Our job is to make our franchisees successful, because when they succeed, we succeed. And allowing them the larger share of the pie ensures that kind of success.
But to be a true disruptor in the industry, we knew we had to get even more radical. To that end, the second a franchisee signs on with EventPrep, they start working and building something for themselves. And we are right there beside them, helping those franchisees build it. Whether the franchisee puts in six years or sixteen years, at the end of the day they have something that they’ve built, something that has actual value, and something they can sell to monetize their exit. They are building a nest egg. They have a retirement. And they have something to show for all the hard work.
With EventPrep, franchisees are in business for themselves. They own the business. The clients that franchisees bring to the table remain their clients. For me and Paul, franchisees aren’t numbers. They aren’t an opportunity to make money from. Our franchisees are hard-working people who deserve the very best opportunities and support in life to enjoy success, reduce stress, and realize their potential.