Beautiful Model

Imagine the most beautiful model who can sell anything based on appearance. People are inclined to buy things associated with beautiful people. There are a couple of options. They can be sent out on jobs or placed under contract to represent a company product.

There are issues associated to each method. Agents represent the model to make a percentage of what they make. The asset, in being, markets their product as the agent locates contacts through advertizing. Their goal is to make a percentage of contracts by booking models. Similar to a real-estate agent who obtains a list of homes for lease or sale by advertising the listing, contacting potential buyers and making a percentage of the sale.

A company specializing in leased properties takes on the responsibility of maintaining property. They accrue steady cash flow over an unlimited amount of time by collecting rent. They also have expenses such as: maintenance, security, taxes and mortgages. This is a long term investment. Overtime expenses, like a mortgage or yard equipment, are paid in full. The operational costs remain; however, they collect the same amount in rent and the investment becomes a money maker with a higher profit ratio.

Selecting a method of making money depends on the asset, investment capital and outsourcing options. In the case of the model, a human being, there is a trade off for agents. Attractive models promote the agency; however, they are free to find another agent. The model goes on jobs, makes money and pays personal expenses.

Retaining a model with a contract offers more control over their well-being and establishes reoccurring costs. It costs more money to retain a model over several years, because this prevents them from finding other work. They also want benefits. Protecting the asset is also a priority. They need bodyguards and personal trainers to remain effective. The company generates a profit and the value of the model is proven.

There are risks to obtaining long term contracts. When purchasing a rental property a person must be able charge enough rent to cover costs. Otherwise, they continually lose money and risk losing the property. If able to breakeven for the length of the mortgage they achieve a goal of steady income for retirement. During this time additional income is required to pay for living expenses.

After the model's contract is over, it is time to find another model. This marketing system is never paid off. Therefore, a portion of the profit is saved in order to cover paying a new model. This is the same with machinery. As soon as it is paid for, it is time to upgrade and remain attractive in a competitive market.

If everything goes up price, a business has to match inflation. Generally, inflation goes up around three to five percent annually. People delay upgrades because they want the price to go down. This is okay for a home computer. By the time the price goes down, technology is obsolete. Similar to the model, after their prime years are over they may accept less money on the contract. They are not as stunning. There is no reason to wait. Get what you can for the going rate. Save a portion of profits and invest to make money from money.

U.S. Treasury bonds offer about three percent compounded annually. Corporate bonds offer around eight percent annually; however, they only pay when the bond matures. In the regular bond market there is no guarantee of selling a bond before it matures. Therefore, it is important to make sure bonds matures before the next investment must be made.

Monopolies are illegal in the United States. A company has to decide whether to seek an agent or gain exclusive rights to assets. Even agents need to lease or own their office and office equipment. The agent makes a percentage on sales; however, long term investments create profit. Sales are volatile because they rely on the market. Long term investments are less volatile, allowing for more control. Agents have a lower initial investment, while expending more time. Contracts require a larger initial investment, while freeing time. Keeping assets in balance optimizes results.

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