Congratulations
again! Now that you've participated in
the live follow-up webinar, you've gained an excellent foundation of knowledge of
what Renatus is all about.
It
always pays to be absolutely certain before making a major life decision, so
let's recap what you've learned in the follow-up about the Renatus business
model, and perhaps may still have questions about in more detail. This valuable information will also be vital
to convey to prospects who may have doubts themselves, or others who are
cynical to the extreme. But whatever
reaction you encounter when you talk to others about Renatus, remember that solid
facts trump assumptions and cynicism every time.
·
Is
Renatus a pyramid scheme?
In
a nutshell, no. A lot of people don't
realize what a pyramid scheme is. The
Federal Trade Commission has set specific guidelines to distinguish legitimate business
models from illegal ones.
A
pyramid scheme recruits members with promises of payments or services for
enrolling others into the scheme.
Perpetrators could go about this in two ways:
o
they promise recruiters payment,
services or goods to sell for enrolling others into the scheme, but they never
deliver on what they promise because it doesn't exist.
o
the services and goods they advertise
are worthless and unsellable, some of which are marked up in value by as much
as 300%, picked for the allure of getting rich by selling them instead of
purchasers actually using them.
o
in a variation called a matrix scheme,
members pay to join a waiting list for a product, which only a fraction ever
receive.
Whatever
way you look at it, it's an unsustainable business model. Whether they sell any products or not, all
participants have to pay a membership fee to join. As recruiting grows, the vast majority of members
are unable to profit. For example, if a
person at every level is obliged to recruit at least six people, all members at
the 13th level are obliged to solicit and recruit 13,060,694,016
others—which is impossible. That number
is twice as many people as the population of the entire planet.
So
on the basis of simple mathematics, the conclusion is inescapable. They can never make good on their promise of
profit for every new member they recruit because the population of Earth is
finite. For everyone to profit, it would
have to expand indefinitely. But the
scheme couldn't possibly include the entire world anyway—a tiny portion joins these
hoaxes because so many others recognize it as the scam that it is. Inevitably the scheme runs out of new
recruits, and lacking other sources of revenue, it simply collapses. That leaves the perpetrators and people
nearest to the top with all the money that those at the bottom have irrevocably
lost. In other words, it's just trickled
upwards.
In
the case where there is no product, service or any value of exchange, it's
worse. Based solely on the promise of a
nonexistent product, the group has no other purpose except to recruit people. That's it.
Nothing else.
This
gives a pretty clear distinction from other business models and shows why pyramid
schemes are illegal and unethical. For
the perpetrators—whether they do any work or not—the scheme is extremely
lucrative. In the end, product or not, the
enterprise accomplishes absolutely nothing beyond funneling money to the people
at the top.
Let's
compare this to MLMs, or multi-level marketing enterprises. These are legal per se. In 1979, the Federal Trade Commission issued
a decision regarding Amway Corporation as legal, but it was guilty on the
grounds that plague many MLMs—price fixing.
That's
where participants on the same side of a market agree to buy or sell a product,
service or commodity only at a fixed price, or maintain market conditions so
that the price is maintained at a certain level by controlling supply and
demand.
What
makes this shady is that they tend to push the price of what they sell—and do
so as high as possible—amounting to a conspiracy between buyers and sellers.
Price
fixing is also inefficient. The anti-competitive agreement by producers to fix
prices above the market price transfers some of the consumer surplus to those
producers and also results in a deadweight loss. MLMs are permitted in some markets, but not
others. To be ethical, they should generally
be avoided.
So
how does Renatus do things?
Totally
different.
It
may come as a relief to both you and anyone else you bring into Renatus, no one
gets paid for enrolling anyone into the program. They are paid for selling a product—the
education.
And
you don't even have to market the education to be part of the Renatus
community. That option is entirely up to
you. No one is going to force you to
give you give him your credit card number.
Or you might feel confident, after reviewing it further, to purchase the
education, pursue an investment career, and not market the education at
all. And that's okay, too. No one's going to twist your arm.
Renatus
just provides this opportunity of these multiple streams of income, and the
ones you choose are totally at your discretion.
Now
that we have that settled, let's press further.
Instead of a pyramid scheme or MLM, Renatus has a direct sales business
model. Only contracted marketers, called
IMAs or Independent Marketing Affiliates, can market those educational
products, which again for quality and content sake are taught only by qualified
real estate practitioners. And to become
an IMA, there's a yearly fee of $125.
There's also a matter of learning marketing guidelines and completing a brief
entrance exam so can make sure to market it honestly and ethically.
But
think about it.
If
you really believe in the benefit of Renatus education...
...if
you are convinced that it this product doesn't depreciate in value over time
but instead appreciates to make people money...
$125
for the privilege of marketing it is a pretty tiny price to pay.
Especially
when the compensation plan enables IMAs to earn between $1000 to $10,000 commission
on a single sale.
That varies depending on the type of education someone purchases. But with a generous return like this, how
could you not recoup your original sign-up fee many times over on your very first
sale?
Although
you're not required to purchase the education yourself—even when after a few
sales you'd earn enough money for it—owning it just helps to know even more
about what the education entails. That
way, you become a more experienced and more successful marketer. This is the case for any salesperson who truly
believes in his or her product.
Furthermore,
the conference calls or webinars for in-depth marketing training are available
to you have no cost whatsoever.
There
are two other enormous differences between Renatus and the other business
models: 1) the prices of each of the three educational products remain the
same, and 2) while upper-level IMA's earn a smaller percentage of commission
from a marketer's sale, the commission percentage for the marketer who actually
sold it never decreases. The
compensation plan provides a level playing field, in which each participant—no
matter their status in Renatus—has an equal opportunity.
Renatus
offers three different educational products:
o
Essentials,
which, as the name implies, teaches essential topics of real estate investing
and business education.
o
AIT
(Accelerated Investor Training) Advanced Package,
suited to the purchaser's investing goals, from which he or she can choose from
two to five vocational tracks and up to 24 months of online access.
o
AIT
Xtream Plus Package, which includes Essentials and all
other tracks, comprising the entire scope of the education Renatus offers.
And
it doesn't end there. Renatus provides a
variety of levels of certification to enable you to earn the maximum incomes
based on the number of sales of each of the three packages. The details are far beyond the scope of this
letter. Contact the IMA who introduced
you Renatus to learn more.
So
as you can see, on the marketing side of the business, Renatus is no pyramid
scheme. Quite the contrary—the rewards
the Renatus compensation plan offers are without parallel in the industry.
·
How
is the investor education any different from what all the real estate gurus
peddle?
Way
different. We can all agree that
education is the key to inspiring desire and developing a strategy for wealth. The gurus play on that desire to toy with
potential customers' enthusiasm—an emphasis on a luxurious lifestyle,
subjective self-descriptions, universally
applicable techniques when in reality only specific investment
strategies apply, depending on a particular real estate market.
If
you've ever attended one of their seminars, courses or boot camps, you can see
how full-blown emotionalism can interfere with people's ability to make logical
decisions based on the information they're presented with. Everyone can benefit from motivational
material like The Power of Positive
Thinking, and every new entrepreneur needs motivation to make that big leap
from the life he was never meant to live into another with boundless options
and opportunities. But it's just plain
disingenuous for gurus to promise detailed how-to information and deliver
nothing but a near-worthless plethora of you-can-do-it platitudes instead. It's a crime.
Granted,
no one ever got ahead by underestimating themselves, or assuming they can't do
something because they're not good enough.
But the sensible individual also recognizes the importance of being
realistic about goals that require both knowledge and initiative. You would have never reached this point in
the qualification process if you didn't inherently know this yourself.
For
businesses led by such names as Carleton Sheets, Robert Allen and Robert
Kiyosaki, the completeness and cost of the content, coach quality and success
rate rank dismally low. Some do better
than others. But for many the material
is just too vague and superficial to be of much use to anyone. Or the scheme is an upsell that empties the
bank accounts of overeager, unthinking people who ultimately wind up with the
very same thing.
The Federal Trade Commission is shy to name the
names of these outfits, but to their credit they do identify red flags on their
website. State Attorneys General, the
Better Business Bureau, customer reports, reviews and complaints provide more solid
material for anyone to exercise the same kind of due diligence Bob Tierney
performed.
Here
again Renatus distinguishes itself. To be
qualified to teach a course in the curriculum, an instructor must earn at least
$1 million in the particular profession or strategy they teach. Each one is monitored by both a curriculum
advisory board as well as the students themselves.
Renatus
founder Bob Snyder has even gone to the effort of consulting a Ph.D. in
Education to have the curriculum conform to Instruction Systems Design—a method
employed in every college and university in the nation. The outcome of ISD, directly observable and
scientifically measured, ensures that the acquisition of knowledge and skills is
made more efficient, effective and appealing.
Much
can be explained about all three educational packages Renatus offers. For now, let's focus on Essentials.
In
addition to corporate tax strategies, credit management and funding, Essentials
teaches the most basic but necessary concepts and mechanics of real estate
investment transactions—from acquisition to exit— in a self-paced, online
learning environment, offering the flexibility to learn in several ways. In this course you will discover:
• How to acquire properties at massive
discounts
• How to gain access to massive amounts of
private money to fund any deal you want
• How to save thousands of dollars on your
taxes every single year
• How to build a team to leverage your time
so you can do deals 24/7
• How to create legal structures to protect
your portfolio and make you judgment-proof
• How to acquire property without using any
of your own money
• How to do deals and fix houses without even
owning a hammer or fixing a toilet
• How to find the hottest deals on houses
before anyone knows they exist
The
Essentials Course enables you to learn through video classrooms available 24
hours a day or downloadable MP3s from their Audio Library. You can also
participate in our live-class filming as a part of the studio audience when we
update our Essentials Course classes. The curriculum is made up of eleven
classes:
1. Creative Acquisitions
2. Real Estate Essentials
3. Real Estate Marketing
4. Real Estate Red Flags
5. Self-Directed IRA
6. Tax and Legal Strategies I
7. Tax and Legal Strategies II
8. Deal of the Decade
9. Fast Track Review
10. Credit Management
11. Mortgage Acceleration
The
cost of the Essentials course is $2000 and will remain active for the life of
the company. Someone with little money and no credit can be accepted into a
third-party financing program for as little as $500 and $150 per month payment
plan for an entire year.
Even
then, none of the three packages is the limit to the education you can gain. Rather, it's the solid foundation upon which
you can further it, by sharing your experiences with others on webinars,
intensives, workshops, walk-throughs of purchased properties under rehab, as
well as group coaching calls. Renatus' coaching staff—again consisting of
actual real estate practitioners—draw from a range of useful topics every week,
including but not limited to:
• Introductory Goal-Setting
• Understanding Your Marketplace
• Pre-Foreclosures/Foreclosures and REO’s
• Wholesaling
• Buy and Hold
• Short Sales
• Fix and Flip/Rehab
• Lease Options
• Subject to
• Tax Liens and Deeds
You
now have a choice: do you continue to do what you have been doing—or worse, do
nothing at all? Or do you accept the
challenge of becoming a real investor, or a marketer, or both, which in any
combination enables you to become an invaluable asset to your community? Will you relinquish control of your destiny
to the whims of rich and powerful, or will you yourself take control?
The
path of least resistance may likely result in decades more of working in a
thankless, unrewarding, mediocre work force, if you're lucky to get and hold a
job with at least meager earnings—and continue to struggle. Yet the road less traveled offers the vast
potential of changing your life, that of your family, and of the community at
large.
Should
you decide to become an IMA and market the education, be sure to contact the
IMA who introduced you to Renatus for information about how to register.
Should
you decide to obtain any one of the three educational packages, again, contact
the IMA you introduced you.
A very interesting article. The insights are really helpful and informative. Thanks for posting.
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