Sunday, December 17, 2006

Larry get's a "bright" idea... the "Javelin Gambit"

What you see here is a copy of the start of it all...

Larry details to his two accomplices (staff) what those of us following his "escapades" have come to call "Larry's Best Idea EVER!"

Yup, this is the big one folks!

Here is the actual memo from Larry and can someone PLEASE explain to me how in the world he manages to stay out of jail? (I used to ask myself how he could stay in business and out of jail... now that NF Communications is dead... well you get my point!


Barry—pls set a meeting with Jason and I to review this

It’s possible for us to continue selling booklets and books and this make some sense

1. let’s total up booklets books sold last 6 months
2. let’s find an outside service that can produce these and their requirements (note that we have always had books produced outside—don’t know if we can do same with booklets at affordable price)
3. If so, we can conceivably continue to produce booklets and books but not produce them—i.e. Ashley would merely transmit pdf files to outside printers
4. we need to locate and outside printer to handle—note that our current printer for books, Deharts, will be burned when NF closes as we owe them probably $10,000 so we need to find a new printer. Do a search on “short run printers” and also consult with Jason. Currently, we have the books printed and shipped to us for inspection before we send to the client. This is a stupid system necessitated by the fact that we have had too many orders that were not right. With any new printer, we need to make the arrangement that they ship directly to the client and if client refuses to pay for quality reason, the printer will reprint. Our client should deal directly wit the printer for proofing and we should do nothing other than sell the item, typeset and email the pdf to the printer.
5. If we can do $400,000 of business in books and booklets and the margin to us is at least $100,000, then we could keep Ashley at $48,000. Any less margin than that makes no sense and even $100,000 of margin may be too little to bother. We would d no printing—the only work would be computer work and client contact.
6. Note that we need plan to continue to submit the booklets to the NASD as we need to use them for SeniorLeads.
7. we had created a system to make electronic booklets (our client would create their own booklet n the Internet and print themselves). I don’t believe the volume has ever taken off. The hope was that we would no longer need to have booklet printed but the advisors seem to still want booklets printed. Need to talks with Jason and see if he agrees—we might want to eliminate the personalized electronic booklets and only offer the printed personalized booklets (this would increase the printed booklet volume).


My involvement with Javelin will be zero as far as the outside world sees. Therefore, the webinars in their current form will not work as
1. the company sends a postcard to get attendance featuring me as the presenter
2. I present
3. the sales people follow up to close

The webinars will work if the following change is made

1. the postcards are sent by an outside printer not naming Javelin—the postcard comes from me
2. I present (we use an Internet based system that would not show Javelin in any way)
3. I call and close the sale after
4. I have the materials shipped from an outside printer
Therefore, this system would not involve Javelin at all. It would be a product of Larry Klein.
5. This necessitates filing of items with NASD as has been done. If these filings are problematic, we still do business with about 50% of the potential buyers who don’t care about NASD review.
6. To facilitate NASD review, neither Javelin or Larry Klein should be the submitter of items to NASD but rather a company that does nothing else. That company could then also promote these items directly to BDs. In other words, a company would exist that does nothing but create materials (I create them), files them for NASD review and then licenses them for use (to Javelin, to me and to other parties). I would have no visible relationship with that company.

My activities

1. provide Javelin all services for which no one else can readily supply (invisible to anyone)
2. continue webinars and sell TPS (no involvement of Javelin)
3. start a firm that provides a service to help reps convert to RIAs
4. distribute insurance products
5. other coaching
6. conduct items 2-5 under the name Denovo

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