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If you want to become rich
overnight, go play the
lottery …
However, if you don’t
believe in fairy tales,
continue reading…
Prepared by
Sphiwe Dube ( SA)
083 820 20 95
Introduction

• Do you know these brands?

These companies are internet “search engines”. (This means people use it
to find information about businesses and services on the internet. “Information”
is currently the world’s biggest industry.)

• We assist people to make more money by being on the internet.
A website needs to be structured correctly before it will be found.

• Even if a customer has an existing website, we can drastically
increase the exposure that they get on the internet.
• We give them tools to make the internet work for them.
Prepar
Sphiweed by (SA)
Dube
083 820 20 95

All at a price no-one can afford to ignore!
What

• We have a Web based program that creates websites (which
is then shown on 2 different platforms).
• “Ease of use” was key when we designed it. Anybody that has
worked on a computer for more than 2 months will be able to
create a website in a few easy steps (it takes only 1-3 hours to create
fully functional website)

• The price is unbeatable, no-one can say “no” to
R59pm! Similar products cost R10,000+

a

R2,500 and

• It has many features included that impress the socks off
anybody that sees them, even IT professionals.
•
We want the agents to make money because if they are
successful, we are successful. The revenue share is totally in
favour of the agents so that they are motivated and equipped
to make money.
Prepared by
Sphiwe Dube (SA)
083 820 20 95
What (Cont)

• The Websites look like this on the 2 different platforms :

Prepared by
Sphiwe Dube (SA)
083 820 20 95

You will be able to create this in 60 minutes!
What (Cont)

• Our business is built on the following principles:
- An extremely saleable product (with no equal
anywhere in the world)
- With a massive market
- An innovative and unique delivery method A
- comprehensive Management system,
- Recurring and passive income
- Exponential growth
- Not having all your eggs in one basket
- Low overheads
- No salaried staff
- Great incentives which are easily achievable
Prepared by
Sphiwe Dube (SA)
083 820 20 95
Kwikwap
Head
Office

Licensees /
Franc isees

Agents

Clients

Agents

Clients

Agents

Clients

Clients

Prepared by
Sphiwe Dube (SA)
083 820 20 95

Licensees /
Franc isees

Agents

Clients

Clients

Clients

Clients

Licen ees /
Franc isees

Agents

Clients

Clients

Agents

Clients

Clients

Agents

Clients

Clients
Split of
once off
set-up
fees

Agent
0%

Agent charges R2,500 to setup a website and he earns
100% of this
0%

Client

Prepared by
Sphiwe Dube (SA)
083 820 20 95

Licensees/
Franchisees

Kwikwap
Head
Office
Split of
Recurring
Subscription
revenue from
clients

Licensees/
Franchisees

Agent

34% - 50%

44% - 59%
Client

Prepared by
Sphiwe Dube (SA)
083 820 20 95

Kwikwap
Head
Office

6,5%
Split of
Support /
Maintenance
Revenue
from clients

Kwikwap
Head
Office

Licensees/
Franchisees

Agent

0%

100%
Client

Note: The VAT on the maintenance
contract is paid over to SARS by the
Licensee
Prepared by
Sphiwe Dube (SA)
083 820 20 95

0%
How
How does an Agent make money?
• The Agent sets up websites for clients, either by visiting the clients’ premises, via
email, telephonically or by giving their Agent code to people and sending them to
www.kwikwap.co.za (where the client will join using your Code). The agent earns R2,500.

• The Agent can harvest sales leads from the existing system or find interested
people by direct marketing (start with friends and family and referrals soon come).
• It is actually quite easy to find interested clients or new agents because it is a cool
• and affordable product (with no equal, not even close) and a good opportunity.
The Agent decides what to charge for the set-up, usually R2,500 (once off). The
Agent keeps all this money. (an agent may not charge more except for additional services such as

•

photography, graphic designing, scriptwriting, extra travelling or maintenance )

The client pays R59+VAT per month for the level 1 system. The Agent gets R40 per
month of this! The Agent gets 50% per month of the level 2 and 3 products which
cost R99 and R150 pm (+VAT) respectively. The Agent gets 100% of the monthly
•
Support & Maintenance contract (R199pm)
Agents appoints and trains sub-agents and receive 100% of their R2,500 joining
fee
+ R100 per month from their agency fees, (agents can also make revenue share arrangements

You have to be share not to see that we want you revenue etc] and train
with other agents/people [e.g.. blind50% of set-up fees and 0% of recurringto make money! new agents
in groups)

Prepared by
Sphiwe Dube (SA)
083 820 20 95
How much $$$

How much money can I make?

• Let’s say you decide to charge an average set-up

fee

of R2,500 per site.

• And you do a website every 2nd day
• You will make R25,000 in the first month (10 x
R2,500=R25,000). [assuming you work 10 days per month]

• And you will also earn recurring income after one
month of R495pm and after 12 months this will be
R5,940pm. After 2 years it will be R11,880pm.
I am not promising you instant wealth, but I can promise you an opportunity
that will enable you to make a good living with a fun product as well as
chance to build a decent recurring revenue!
Prepared by the
Sphiwe Dube (SA)
083 820 20 95
Why?

Why does the Kwikwap system sell like hot cakes?
Market totally under serviced – Between 50%-60% of all businesses don’t have a

• website or need a new one. 100% of businesses need a mobi & normal website that they
•
•
•

can change themselves and has been optimized for Google. The market is huge!
Broadband Explosion – everyone is talking about the internet and no-one can ignore
the internet any longer.

Where does one start if you want a website? – The industry is intimidating and

webmasters charge like wounded buffaloes and hold clients hostage. We are pro-active, we
go to the people and we talk their language!
Pricing – our price puts us in reach of everybody and it is way cheaper than anybody else in
the business (and Kwikwap has MANY more features than any other system)!
Real tangible benefits - they will be found on Google & their docs available on phone

•
• Added features (SMS system, docs, forms, videos, specials, newsletters etc etc)
• Cell phone compatibility – everyone loves to see their business on a mobi site because
they know cell phones are the future. They see it, they want it. I promise you!
• FREE goodies - Start with a free demo and convert them to paying client once you can
• show them on Google (within few weeks).
Quick & Easy – the Kwikwap system is fast and easy to operate. The system even
impresses seasoned IT professionals!
Prepared by
Sphiwe Dube (SA)
6 out of 10 people say YES immediately!
083 820 20 95
What do you
need?

What do you need to start?

Internet access, preferably with a fast connection such as 3G, ADSL

• If you don’t have that, you can start by doing it on the clients’ own
• computers or at an internet café.
•
•
•
•
•
•

If you have your own computer it will help but it is not essential. A Laptop
with a 3G card will be first prize.
We have lots of marketing material such as pamphlets, business cards,
posters, folders, banners & car stickers which you can download from the
Agents portal.
We also get sales leads from the internet which we pass on to the agents in
the area on a first-come-first-serve basis.
You get access to the Agents portal that contains all the manuals.
You pay a R2,500 joining / training fee upfront and R150+VAT per month for
access and you can stop at any time. R100pm of this goes to the agent that
trained you.
Pay your joining fee, fill in the Agency agreement and fax it back. You will
then get your Agent code and a training session will be arranged.

Prepared by
Sphiwe Dube (SA)
083 820 20 95

You can start making money after a few hours of training!
• Incentive Schemes

Prepared by
Sphiwe Dube (SA)
083 820 20 95
The new 2013 (and beyond) incentive scheme we give all agents/consultants a brand new car to the value
of R100,000 if the agent signs up 150 new clients in a rolling 12 month period (that's about 3 new clients
per week) starting from 1 January 2013:
1.

we may decide to brand the vehicle with Kwikwap/Kwikweb at our cost

2.
3.
4.
5.
6.

the agent is obliged to insure the vehicle at his own cost
the 150 clients must to be on Level 3 or 4 (or see point d below)
clients on Level 1 and 2 can also count as follows: 4xLevel1 counts as one and 2xLevel2 counts as one
new sub agents also count for the 150 clients
this scheme cannot be combined with any other incentive scheme or promotion (you can't get the car
& TV's & trips etc on top of the car)

if one of the 150 clients cancels the agent is obliged to get a new client in its place
8. clients whose debit orders don't regularly go through or who don't pay their invoices regularly within
7.

30 days will not count towards the 150.

The agent must still be eligible for commission as per the standard terms and conditions of the agency
agreement (e.g. one new client per month and "willing and able" to support clients)
10. If any of the terms and conditions of this scheme is not adhered to the car must be returned to
9.

Kwikwap
11. Kwikwap reserves the right to amend this fineprint but Kwikwap undertakes not to change the

essence/spirit of the incentive scheme (e.g. change it to 200 clients or so). Only the fine details may
be changed.

Prepared by
Sphiwe Dube (SA)
083 820 20 95
2012 winner of incentive scheme

Prepared by
Sphiwe Dube (SA)
083 820 20 95
THANKS

THANK YOU FOR YOUR TIME!
Further reading / info
1. Read the next page in this presentation, it explains the problem that exists
with traditional webmasters.
1. Go to www.google.co.za and search for “Mobile Website Design”,
“Cheap Website Design” or “Website Development” (be sure to choose
pages from SA). You will see that we are on the first page out of many
results which demonstrates that we know how to get onto Google. We do
the same for our clients. For More Info Visit us at
http://www.kwikwebdesign.co.za.

Prepared by
Sphiwe Dube (SA)
083 820 20 95
Google and Webmasters, a very interesting read:

From Search Engine Optimization for Dummies, 2nd edition, by Peter Kent (p 340)
Myth: Web designers and Developers understand Search Engines

I am a geek. I’ve worked in software development for over 20 years; I
still work closely with software developers (these days mostly Websoftware developers); I build web sites for my clients (so I work with
developers and designers on these sites); my friends are developers
and designers … and I am telling you now that most developers and
designers do NOT understand the search engines to any great degree.
Most web-development companies these days tell their clients that
they know how to handle the search engines, and even that they are
experts. In most cases, that is simply not true, any more that it’s true
that I am an expert in neurosurgery. This makes it very hard for
business owners when they hire a web-development team, of course,
though perhaps this book will help. It will give you an idea of the sorts
of questions you should ask your developers to figure out if they really
do understand search engine requirements.
Prepared by
Sphiwe Dube (SA)
083 820 20 95
Split of
Recurring
revenue
on
Product
Level 1

Licensees/
Franchisees

R4,37pm
(6,5%)

R40pm
(59,5%)

Licensee gets R22,89 pm
= 34%

Agent

R59+VAT = R67,26 pm

Client
Prepared by
Sphiwe Dube (SA)
083 820 20 95

Kwikwap
Head
Office
Split of
Recurring
revenue
on
Product
Level 2

Kwikwap
Head
Office

Licensees/
Franchisees

R49,50pm
(44%)

R7,34pm
(6,5%)
Licensee gets R56,02 pm
= 50%

Agent

R99+VAT = R112,86pm

Client
Prepared by
Sphiwe Dube (SA)
083 820 20 95
Split of
Recurring
revenue
on
Product
Level 3

Kwikwap
Head
Office

Licensees/
Franchisees

R75pm
(44%)

R11,12pm
(6,5%)
Licensee gets R84,88 pm
= 50%

Agent

R150+VAT = R171 pm

Client
Prepared by
Sphiwe Dube (SA)
083 820 20 95
Split of
Monthly
revenue on
The Support
&

Licensees/
Franchisees

R199pm

Mainte
nance
contrac
t Agent

R27,86pm
The VAT
portion is
paid over to
SARS

R199+VAT = R226.86 pm

Client
Prepared by
Sphiwe Dube (SA)
083 820 20 95
• Building a Kwikwap business is building your Net Worth
I

was reading a document from a business broker. This document shows the return

that an investor gets for his money when he buys a business. I noted that a Spur will
give you a 35% return; if you turn this sum around, it mean a Spur is sold at a P/E
ratio of 2,8. That means you will get your investment back after 2,8 years – you will
have to work night and day as well …. Which brings me to my next point: a "recurring
revenue stream" on a "passive basis" is also a saleable commodity (notably a
BUSINESS). In other words your Kwikwap agency is a "business". However, because
it's income is passive (i.e. you don't have to work to continue getting it), the P/E ratio
is better than the case of the Spur, let us say 3,5 years. This means that say your
Kwikwap business earns R100,000 per annum in passive income, your Kwikwap
business will be worth R350,000 (R100000x3,5) (in fact, it will be worth more
because there are also the once-off set-up fees, but that is another calculation in
itself). So how do you earn R100,000 p.a. passively from Kwikwap? Let us say that
you sell 1 site every 2nd day, then after a month your recurring revenue is R495 pm
and growing with that same amount every month. To
earn R100,000 per annum, you need to earn ±R8,333 per month. That means
Prepared aedfbty
17 months you will reach this point (17 x R495 ≈ R8400).
Sphiwe Dube (SA)
er
083 820 20 95
• That means your business will be worth R350,000 after only 17 months if you
sign up one new client every second day.

• Add to all these calculations your once-off set-up fees and you can easily earn
the equivalent of an annual salary of R750,000. See here:
R350,000
• Growth in the value of your business after 17 mnths
•

Set-up fees (10 days pm x12mnths xR2,500 per site)

R300,000

•

Recurring revenue after a year and a half

R100,000

• Total annual income

R750,000

• I dare anybody to explain to me why

the above
be true. Even if it is slightly off, it is still a substantial amount of
calculations
money! Please see $ on the next page for another way of looking
at this.

Prepared by
Sphiwe Dube (SA)
083 820 20 95

can't
• $ Another way of looking at the growth in the value of your
business is as follows:

• If you now were to earn R8,400 per month more, what can you do
with it? You can then afford to go and make a loan at the bank of
say R750,000 (which is paid off with the extra R8,400pm) and make
alterations to you house with that money. So your house has
become worth more, OK you do have debt against it but the debt is
getting less every month. Your extra monthly income now pays off
the debt and your house grows in value. Very soon that extra R8,400
per month will have generated a substantial asset for you. This
principle explains how a monthly (recurring and passive) income can
build wealth!
• And another way: I recently offered a Kwikwap Agent R75,000 for
his revenue stream of R4,000pm and he just laughed at me! He said
Prepared by
if I double my offer he might consider it!
Sphiwe Dube (SA)
083 820 20 95

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Make Money Kwikweb agents presentation

  • 1. If you want to become rich overnight, go play the lottery … However, if you don’t believe in fairy tales, continue reading… Prepared by Sphiwe Dube ( SA) 083 820 20 95
  • 2. Introduction • Do you know these brands? These companies are internet “search engines”. (This means people use it to find information about businesses and services on the internet. “Information” is currently the world’s biggest industry.) • We assist people to make more money by being on the internet. A website needs to be structured correctly before it will be found. • Even if a customer has an existing website, we can drastically increase the exposure that they get on the internet. • We give them tools to make the internet work for them. Prepar Sphiweed by (SA) Dube 083 820 20 95 All at a price no-one can afford to ignore!
  • 3. What • We have a Web based program that creates websites (which is then shown on 2 different platforms). • “Ease of use” was key when we designed it. Anybody that has worked on a computer for more than 2 months will be able to create a website in a few easy steps (it takes only 1-3 hours to create fully functional website) • The price is unbeatable, no-one can say “no” to R59pm! Similar products cost R10,000+ a R2,500 and • It has many features included that impress the socks off anybody that sees them, even IT professionals. • We want the agents to make money because if they are successful, we are successful. The revenue share is totally in favour of the agents so that they are motivated and equipped to make money. Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 4. What (Cont) • The Websites look like this on the 2 different platforms : Prepared by Sphiwe Dube (SA) 083 820 20 95 You will be able to create this in 60 minutes!
  • 5. What (Cont) • Our business is built on the following principles: - An extremely saleable product (with no equal anywhere in the world) - With a massive market - An innovative and unique delivery method A - comprehensive Management system, - Recurring and passive income - Exponential growth - Not having all your eggs in one basket - Low overheads - No salaried staff - Great incentives which are easily achievable Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 6. Kwikwap Head Office Licensees / Franc isees Agents Clients Agents Clients Agents Clients Clients Prepared by Sphiwe Dube (SA) 083 820 20 95 Licensees / Franc isees Agents Clients Clients Clients Clients Licen ees / Franc isees Agents Clients Clients Agents Clients Clients Agents Clients Clients
  • 7. Split of once off set-up fees Agent 0% Agent charges R2,500 to setup a website and he earns 100% of this 0% Client Prepared by Sphiwe Dube (SA) 083 820 20 95 Licensees/ Franchisees Kwikwap Head Office
  • 8. Split of Recurring Subscription revenue from clients Licensees/ Franchisees Agent 34% - 50% 44% - 59% Client Prepared by Sphiwe Dube (SA) 083 820 20 95 Kwikwap Head Office 6,5%
  • 9. Split of Support / Maintenance Revenue from clients Kwikwap Head Office Licensees/ Franchisees Agent 0% 100% Client Note: The VAT on the maintenance contract is paid over to SARS by the Licensee Prepared by Sphiwe Dube (SA) 083 820 20 95 0%
  • 10. How How does an Agent make money? • The Agent sets up websites for clients, either by visiting the clients’ premises, via email, telephonically or by giving their Agent code to people and sending them to www.kwikwap.co.za (where the client will join using your Code). The agent earns R2,500. • The Agent can harvest sales leads from the existing system or find interested people by direct marketing (start with friends and family and referrals soon come). • It is actually quite easy to find interested clients or new agents because it is a cool • and affordable product (with no equal, not even close) and a good opportunity. The Agent decides what to charge for the set-up, usually R2,500 (once off). The Agent keeps all this money. (an agent may not charge more except for additional services such as • photography, graphic designing, scriptwriting, extra travelling or maintenance ) The client pays R59+VAT per month for the level 1 system. The Agent gets R40 per month of this! The Agent gets 50% per month of the level 2 and 3 products which cost R99 and R150 pm (+VAT) respectively. The Agent gets 100% of the monthly • Support & Maintenance contract (R199pm) Agents appoints and trains sub-agents and receive 100% of their R2,500 joining fee + R100 per month from their agency fees, (agents can also make revenue share arrangements You have to be share not to see that we want you revenue etc] and train with other agents/people [e.g.. blind50% of set-up fees and 0% of recurringto make money! new agents in groups) Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 11. How much $$$ How much money can I make? • Let’s say you decide to charge an average set-up fee of R2,500 per site. • And you do a website every 2nd day • You will make R25,000 in the first month (10 x R2,500=R25,000). [assuming you work 10 days per month] • And you will also earn recurring income after one month of R495pm and after 12 months this will be R5,940pm. After 2 years it will be R11,880pm. I am not promising you instant wealth, but I can promise you an opportunity that will enable you to make a good living with a fun product as well as chance to build a decent recurring revenue! Prepared by the Sphiwe Dube (SA) 083 820 20 95
  • 12. Why? Why does the Kwikwap system sell like hot cakes? Market totally under serviced – Between 50%-60% of all businesses don’t have a • website or need a new one. 100% of businesses need a mobi & normal website that they • • • can change themselves and has been optimized for Google. The market is huge! Broadband Explosion – everyone is talking about the internet and no-one can ignore the internet any longer. Where does one start if you want a website? – The industry is intimidating and webmasters charge like wounded buffaloes and hold clients hostage. We are pro-active, we go to the people and we talk their language! Pricing – our price puts us in reach of everybody and it is way cheaper than anybody else in the business (and Kwikwap has MANY more features than any other system)! Real tangible benefits - they will be found on Google & their docs available on phone • • Added features (SMS system, docs, forms, videos, specials, newsletters etc etc) • Cell phone compatibility – everyone loves to see their business on a mobi site because they know cell phones are the future. They see it, they want it. I promise you! • FREE goodies - Start with a free demo and convert them to paying client once you can • show them on Google (within few weeks). Quick & Easy – the Kwikwap system is fast and easy to operate. The system even impresses seasoned IT professionals! Prepared by Sphiwe Dube (SA) 6 out of 10 people say YES immediately! 083 820 20 95
  • 13. What do you need? What do you need to start? Internet access, preferably with a fast connection such as 3G, ADSL • If you don’t have that, you can start by doing it on the clients’ own • computers or at an internet café. • • • • • • If you have your own computer it will help but it is not essential. A Laptop with a 3G card will be first prize. We have lots of marketing material such as pamphlets, business cards, posters, folders, banners & car stickers which you can download from the Agents portal. We also get sales leads from the internet which we pass on to the agents in the area on a first-come-first-serve basis. You get access to the Agents portal that contains all the manuals. You pay a R2,500 joining / training fee upfront and R150+VAT per month for access and you can stop at any time. R100pm of this goes to the agent that trained you. Pay your joining fee, fill in the Agency agreement and fax it back. You will then get your Agent code and a training session will be arranged. Prepared by Sphiwe Dube (SA) 083 820 20 95 You can start making money after a few hours of training!
  • 14. • Incentive Schemes Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 15. The new 2013 (and beyond) incentive scheme we give all agents/consultants a brand new car to the value of R100,000 if the agent signs up 150 new clients in a rolling 12 month period (that's about 3 new clients per week) starting from 1 January 2013: 1. we may decide to brand the vehicle with Kwikwap/Kwikweb at our cost 2. 3. 4. 5. 6. the agent is obliged to insure the vehicle at his own cost the 150 clients must to be on Level 3 or 4 (or see point d below) clients on Level 1 and 2 can also count as follows: 4xLevel1 counts as one and 2xLevel2 counts as one new sub agents also count for the 150 clients this scheme cannot be combined with any other incentive scheme or promotion (you can't get the car & TV's & trips etc on top of the car) if one of the 150 clients cancels the agent is obliged to get a new client in its place 8. clients whose debit orders don't regularly go through or who don't pay their invoices regularly within 7. 30 days will not count towards the 150. The agent must still be eligible for commission as per the standard terms and conditions of the agency agreement (e.g. one new client per month and "willing and able" to support clients) 10. If any of the terms and conditions of this scheme is not adhered to the car must be returned to 9. Kwikwap 11. Kwikwap reserves the right to amend this fineprint but Kwikwap undertakes not to change the essence/spirit of the incentive scheme (e.g. change it to 200 clients or so). Only the fine details may be changed. Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 16. 2012 winner of incentive scheme Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 17. THANKS THANK YOU FOR YOUR TIME! Further reading / info 1. Read the next page in this presentation, it explains the problem that exists with traditional webmasters. 1. Go to www.google.co.za and search for “Mobile Website Design”, “Cheap Website Design” or “Website Development” (be sure to choose pages from SA). You will see that we are on the first page out of many results which demonstrates that we know how to get onto Google. We do the same for our clients. For More Info Visit us at http://www.kwikwebdesign.co.za. Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 18. Google and Webmasters, a very interesting read: From Search Engine Optimization for Dummies, 2nd edition, by Peter Kent (p 340) Myth: Web designers and Developers understand Search Engines I am a geek. I’ve worked in software development for over 20 years; I still work closely with software developers (these days mostly Websoftware developers); I build web sites for my clients (so I work with developers and designers on these sites); my friends are developers and designers … and I am telling you now that most developers and designers do NOT understand the search engines to any great degree. Most web-development companies these days tell their clients that they know how to handle the search engines, and even that they are experts. In most cases, that is simply not true, any more that it’s true that I am an expert in neurosurgery. This makes it very hard for business owners when they hire a web-development team, of course, though perhaps this book will help. It will give you an idea of the sorts of questions you should ask your developers to figure out if they really do understand search engine requirements. Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 19. Split of Recurring revenue on Product Level 1 Licensees/ Franchisees R4,37pm (6,5%) R40pm (59,5%) Licensee gets R22,89 pm = 34% Agent R59+VAT = R67,26 pm Client Prepared by Sphiwe Dube (SA) 083 820 20 95 Kwikwap Head Office
  • 20. Split of Recurring revenue on Product Level 2 Kwikwap Head Office Licensees/ Franchisees R49,50pm (44%) R7,34pm (6,5%) Licensee gets R56,02 pm = 50% Agent R99+VAT = R112,86pm Client Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 21. Split of Recurring revenue on Product Level 3 Kwikwap Head Office Licensees/ Franchisees R75pm (44%) R11,12pm (6,5%) Licensee gets R84,88 pm = 50% Agent R150+VAT = R171 pm Client Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 22. Split of Monthly revenue on The Support & Licensees/ Franchisees R199pm Mainte nance contrac t Agent R27,86pm The VAT portion is paid over to SARS R199+VAT = R226.86 pm Client Prepared by Sphiwe Dube (SA) 083 820 20 95
  • 23. • Building a Kwikwap business is building your Net Worth I was reading a document from a business broker. This document shows the return that an investor gets for his money when he buys a business. I noted that a Spur will give you a 35% return; if you turn this sum around, it mean a Spur is sold at a P/E ratio of 2,8. That means you will get your investment back after 2,8 years – you will have to work night and day as well …. Which brings me to my next point: a "recurring revenue stream" on a "passive basis" is also a saleable commodity (notably a BUSINESS). In other words your Kwikwap agency is a "business". However, because it's income is passive (i.e. you don't have to work to continue getting it), the P/E ratio is better than the case of the Spur, let us say 3,5 years. This means that say your Kwikwap business earns R100,000 per annum in passive income, your Kwikwap business will be worth R350,000 (R100000x3,5) (in fact, it will be worth more because there are also the once-off set-up fees, but that is another calculation in itself). So how do you earn R100,000 p.a. passively from Kwikwap? Let us say that you sell 1 site every 2nd day, then after a month your recurring revenue is R495 pm and growing with that same amount every month. To earn R100,000 per annum, you need to earn ±R8,333 per month. That means Prepared aedfbty 17 months you will reach this point (17 x R495 ≈ R8400). Sphiwe Dube (SA) er 083 820 20 95
  • 24. • That means your business will be worth R350,000 after only 17 months if you sign up one new client every second day. • Add to all these calculations your once-off set-up fees and you can easily earn the equivalent of an annual salary of R750,000. See here: R350,000 • Growth in the value of your business after 17 mnths • Set-up fees (10 days pm x12mnths xR2,500 per site) R300,000 • Recurring revenue after a year and a half R100,000 • Total annual income R750,000 • I dare anybody to explain to me why the above be true. Even if it is slightly off, it is still a substantial amount of calculations money! Please see $ on the next page for another way of looking at this. Prepared by Sphiwe Dube (SA) 083 820 20 95 can't
  • 25. • $ Another way of looking at the growth in the value of your business is as follows: • If you now were to earn R8,400 per month more, what can you do with it? You can then afford to go and make a loan at the bank of say R750,000 (which is paid off with the extra R8,400pm) and make alterations to you house with that money. So your house has become worth more, OK you do have debt against it but the debt is getting less every month. Your extra monthly income now pays off the debt and your house grows in value. Very soon that extra R8,400 per month will have generated a substantial asset for you. This principle explains how a monthly (recurring and passive) income can build wealth! • And another way: I recently offered a Kwikwap Agent R75,000 for his revenue stream of R4,000pm and he just laughed at me! He said Prepared by if I double my offer he might consider it! Sphiwe Dube (SA) 083 820 20 95