My partner in The Money Gym, Judith Morgan has been holding many calls with potential Gold Express members this week, keen to get in before the midnight tonight (31 July) deadline, to secure their bonuses, and interestingly, one question is coming up again and again.

"If I invest £XXXX with the Money Gym, what will be my ROI and how fast will it happen"

Before I tell you Judith's answer to this, I would like to go into ROI or "Return On Investment" in a bit more detail, as not many people understand it properly. I cover it quite a bit in my book "The Money Gym: Ultimate Wealth Workout" because it's very important to know what it is and how it can change, especially if you are thinking of going self employed or starting a business.

WHAT IS ROI?

The useful thing about the ROI model is that it can be used to compare any potential wealth creation activity, to compare a property deal with a business deal, a stock market investment with an internet opportunity.

When you first get interested in Wealth Creation one of the first questions is 'so how do I find these investment, property or business opportunities'?

A little bit later, you will find that you are overwhelmed with all the possibilities and opportunities are jumping out at you from every corner. So how can you tell which ones to pursue?

If you have read Rich Dad, Poor Dad by Robert Kiyosaki, you will know about the 'Does it Eat Me, or does it Feed Me' question and it's a really useful first yardstick of how good a deal may be.

This is where many new investors and entrepreneurs come unstuck.

They don't work out their strategy and stick to it; so they alternate between fear and greed, much like the stockmarket has been recently, and go for the riskier, harder deal for a bigger return, instead of the safer, easier deal with a slightly lower return.

Think about how many of the second kind of deal could you do, with less effort, less stress and the faster returns?

The other thing they do is try to 'bend' a deal to work for them, rather than just going to look for another deal that does, effortlessly.

My ex-business partner, the much quoted Gill Fielding, says that she would always rather have the easier deal, leaving her time to get her nails done, rather than one big difficult deal where she would have to really work for her money.

And as someone who has 'bent deals to fit' on many occasions, I now have to agree 100%.

CREATE YOUR ROI YARDSTICK

The first thing to do is create a yardstick for any deal you are considering. The ROI figure can be applied to anything and you can compare like for like, even if the deals are very different.

How much profit will a deal make in the first year, multiplied by 100, divided by the amount of money you are going to have to invest, to acquire that profit.

That, roughly speaking, is your return on investment expressed as a percentage. A house that costs £50,000 and will generate £2400k per annum of rental income profit, after expenses, roughly generates a 4.8 % return on investment. (Not to be confused with rental yield, which is different again).

If you think that the property may grow in value by 10% that year, then add £5,000 to the £2400 rental profit, to find that your ROI is now 14.8%.

Compare that with a similar deal, where you can buy a business card printing machine franchise generating £25,000 per year profit and you have to put in £75,000 to acquire the business. 33.3 % ROI and you have to go round emptying the money. Worth it for those returns, you say?

But what if you had an 80% mortgage on the property, and the interest repayments were covered by the rent, still leaving you with the same rental profit per annum?

You have spent £10k to acquire that profit, you have a profit including capital appreciation of £7400k so your ROI is now 74%.

And no work for you, in the form of the money collection.

But whichever way, both returns are a bit better than the building society returns and both are "Feed Me's".

Use your yardstick, don't change the goalposts and choose opportunities to fit your strategy or plan.

JUDITH'S ANSWER

So, what is Judith's answer to the Money Gym ROI question?

Judith says "By the time they ask this, I usually know quite a lot about them, and the things I am looking for are

1. Are they bright enough to understand what we teach

2. What is their preparedness to take action (motivation) for whatever reasons

3. Do they have any equity - so can afford to get into property investment - which depending on how much they've got can ensure their financial security and ROI overnight often

4. Do they have any time - to do the work and take the action

5. Could they develop maybe, an enthusiasm for the stockmarket which could soon match their take-home pay if they are in a job, or

6. Are they self employed or do they already have an under-performing business which we can teach them to run much, much more profitably

So my short answer is "how long is a piece of string" and I tell them that, and why.

Then I go on to give them examples of the girl who made her boyfriend over £18,000 in pure profit in under a week after learning what we know about the internet, the chap who made over £80,000 in one lunchtime by just chatting to another member, the girl who is making in one week more than she used to earn in one month from her old business, and she's doing it in under half an hour a day, rather than a 12 hour day, the dentist who had enough equity to become a multi-millionaire almost overnight - he actually did it in under six months - and who still asks us when he sees us "Am I a millionaire yet?" laughing as he does so!

That's a thousands of per cent ROI on their membership fees! And a lot of the time we can show them how to pay for their Money Gym fee from OPM "other people's money" so their ROI is infinity!!

I tell them many of the other things they COULD do once they understand what we know.

This is why we are able to offer a 100% guarantee. If people do the homework, attend their calls, take the action, then they will make back many hundreds of thousand of pounds in ROI.

The only people who don't' get an ROI, are the ones that don't come to the calls, don't do the homework or who take no action. The one's who don't listen, who hang onto their limiting and negative beliefs or allow others to influence them accordingly.

The speed with which they get an ROI depends on their preparedness to take action, but in my screening calls I am unlikely to let in anyone with a full-time job and a family who are terrified, as that's three strikes against them, they would be better off reading the book, just joining Silver or maybe Gold, which takes a year.

The Gold Express people these days have already been in our community long enough to know what they need to do and have often started on their wealth creation journey - so what we teach is just going to accelerate that.

Dramatically sometimes!

I hope you found this interesting and if you want to take action then just email Judith@TheMoneyGym.com to set up your call.

Be ready for her, though!

Warm regards

Nicola

p.s. FYI, the membership fee of the Gold & Gold Express programme is going up on 1st September 2007 to £4554 because we are still massively confident that the return on investment will continue to be in the many thousands of per cent! Email Judith now.....