Jay Abraham – Mastermind Marketing 1 Man 1: And in this corner, weighing in at over $6 billion in revenue generated for his clients and associates, hailing from Los Angeles, California, and pound for pound generates more profitable break through marketing ideas than any man alive, give it up for Jay L. Abraham. (Applause and cheering) Jay: Okay, wow. Hello. We'll start with a quote. It's not an original one, but it's an appropriate one. It's from a colleague named Bob Proctor. Bob Proctor says, and I agree, that almost every business owner, and aspiring entrepreneur out there in the world, struggles silently with a nonverbalized question that is decimating their capability for greatness. They don't even know they're struggling with it. The essence of the question is, 'Am I worthy of this goal?' 'Can I really build a competitive business, and stay around, in light of all these big companies trying to marginalize and turn me into a com [unclear 2:00]? Can I really reach my vision? Can I really compete in this very, very, very, very global world, with the internet and all kinds of different solutions to the same problems? Can I really make half a million, a million dollars? Can I really build a business that will endure, that has value?' Bob says, and I agree, "That is absolutely, positively, and totally an erroneous question to even consider." The right question to always ask yourself is, 'Is the goal worthy of me and my company?' Why? you ask. Because once you learn how much more is possible, from [unclear 2:55], fill in the blank; the same opportunity, the same time, the same investment, the same activity, the same people, the same relationships, the same distribution channels; you will see that you have been unintentionally restricting, limiting and accepting a fraction of the number of clients you could be generating, the size of the transactions you could be creating, the number of products and services you could be nobly and officially helping your market place acquire and benefit from. Please turn the phones off because I'm attention-deficit, and if you do, then everyone will hate you because I'll have to look at you and stop, and start again and repeat from the very beginning because I'm very programmed; and then everyone will be like, assail you, and it'll be terrible, and I don't want to have that on my conscience. What was I talking about? Should I start over again? Play the music again Dave, I'll go to the back.
(Laughter) Tony, how you doing man? What was I talking about? I really am, I'm opposed to [unclear 04:07] Jay: ...is the goal worthy of you? Because when you understand how much more leverage you have in your marketing, in strategy, competitive and [unclear 4:25] as you can in your mindset, it will blow your mind. It will rock your world. It will transform you. But that's what we're going to get to. Got a couple of things I want to say right now, and then we've got a very rigorous speaker list. I only work from notes, I do free form; I know exactly what I want to talk about, but I have to look at notes occasionally, because I want to make sure I don't forget a critical point. Okay, first of all, all of you, we're here for a reason. Different reasons for different ones of you, but you're here basically to learn how to grow your business geometrically, from a profit stand point, not just top like revenue. You're here to learn how to be masterfully more strategic in your marketing process. You're here to learn how to compete at a level of formidability and prowess, and acuity that will just basically topple, decimate and dominate everybody else you're trying to address. You're here to learn a strategy of business that will so liberate and animate your spirit; it's called Strategy Nemetics, and you may not know that. You're here to learn the meaning of business life. You're here to learn how to make the power of geometry harness it's amazingly potent self to your every beck and call. How many people in this room have a historic basis or background with me; you bought my stuff in the past? Raise your hand. Okay. Down. How many have attended a program of mine in the past? Okay, so about 15% of you. Okay, this is a cool program. I've done 50 programs in my professional life; they range from 5,000 to 50,000 dollars. This program, the Mastermind Marketing Program, has spawned more success stories that are documented, about 11,400. It has transformed more people's businesses by giving them a fundamental understanding of how strategic marketing is the bed rock of all things great for their business. It is giving them the focus, the understanding and the power to compete successfully, to get their businesses growing and growing; and this is going to be the first time in seven years, that I have reconstituted and delivered it, and the crowd is wonderful, that the people here will get a lot out of it, but you have to understand how we do business. Because if you don't; if you're new to it or you've forgotten, less than a stellar experience.
If you embrace what we're all about, it will be just euphoric times two; it'll be the most - it'll actually - orgasmic endeavour you've ever had. First of all, I'm not going to give you a program, you're going to give it to yourself. And I have every confidence in your ability to give yourself the greatest program of your own life. You're not here for Jay Abraham to dole out theoretical wisdom in a very static manner; you're here to get transformed; you're here to learn how to put into action strategies, tactics, and implement them on a sustaining systematic basis. I will do it many ways; I will teach you what I know. I will teach you what I have experienced, but to really demonstrably evidence it, I will pluck from the audience, all kinds of people, continuously, who have done that in their real life, who have seen the power, who understand it intellectually and conceptually, and from a construction stand point, foundationally - how it works; I will make them go to the mike, and I'll make them share case study after case study, because I want it to be real. I do not have any need or desire to be your intellectual entertainment. I have enormous capacity to be a catalyst. I have enormous desire to be basically your advisor. I have enormous commitment to move you to action, but you've got to commit to yourself. This is all about collaboration. It's all about everyone for each other. We're like the 650 Musketeers. And we've got to basically make this the greatest contribution, the greatest collaboration; we have 16 or 18 experts, not one of which is here to really purposefully sell you anything; they’re here to basically give from the depths of their heart, expertise that is critical to the foundation we're after; and number 2...to work on their own business at the tables with you. They're going to be here for the duration with the exception of two or three, and it's going to be killer. I don't like anyone worrying or concerning themselves with what in the world is going to happen, so let me give you a quick advance, and I'm going to have to stop in three minutes because we promised Brian we would get him on and off fast, because he's got to catch a plane. We orchestrate our programs very, very strategically. But we change them at will. It's not about me being this great, on the podium, theatrical presenter. I'm relatively good, but I'm really a shirt-sleeve entrepreneur who has worked my whole life on the front-lines of capitalism. I understand business from an intimacy, and a reality, at an empirical level, that very few of you probably will ever achieve; and I'm going to try and
summarize and distil it down into such elegant simplicity, it'll be impossible for you not to engineer breakthroughs. However, as we go through our intended format, I might change it at will. We have no shame about making the event and the experience and the result the best we can for you, and I am a continuous work in process. So, here's what we're trying to do. On Day 1, we're trying to open up your paradigm, evidence to you how much more is possible, get you grounded in foundational Jay Abraham stuff, introduce you to perspectives that will raise your own bar, get you to see that you can do anything, but only if you realize what you're trying to do and work backwards from it; then we're going to teach you the next day, the power and the integral importance of being strategic instead of tactical. Then on the next day, once we understand all is possible, and reduce down what the hell you want for yourself, what your optimal goals are, and we engineer it backwards; and then we're going to show you that the key to getting it all instantly and sustainably is changing your strategy, we're going to then build for you tactics; the elements of delivery that can do it for you. Then finally, we're going to spend hours and hours building an action plan that will really achieve the goals, so you don't go home just feeling good, and go right back to the status quo; and then you're going to present it to each and everybody around the table, because they're going to decide whether you really got it, or whether you need help. And we're going to help you, so before you leave, you've got it all down. That's pretty much what we're going to do, isn't it Rick? I didn't follow one note, so I probably screwed up. Did I forget something? What did I forget? (Man inaudible in the background) I drive everybody crazy, because they spent the last three weeks working on this, and I forgot to look at it. Okay, I am so flattered that when we decided to do this, we called upon a lot of chips that were owed me, or hopefully, we hope people would invest forward in, and one of the most appreciative responses to my call was a very good friend, and a remarkable seminal thinker, in about 27 disparate elements of high business and personal performance. Brian Tracy has written so many books I can't name them all. He's done so much research, and he's such an amazing man, because he constantly grows and pulses, analyzes researches, and always is ahead of the curve on what basically makes people, businesses, organizations and individuals grow, thrive, achieve, succeed, masterfully lead; and he's one of the brightest minds I have
ever, ever met, and he's one of the most interesting people, because he's not static. He's the epitome and the personification of 'grow or die.' He's going to basically set the stage for you and explain to you what he thinks are the most critical elements you need to grasp about the business arena, about yourselves, and about how to reconcile the two. Rather than say anything else, I'm just so flattered, and he came here just to do this for you; he's got to catch a plane at 10:30; we're privileged to have Brian set the pace for the game we're going to have follow, and there's one last thing I want to say. I want you to understand; I see life as the ultimate 3D movie, and us; myself and all my accomplishes in merry, merciless money making, having the only pair of glasses in the whole theatre; and we have the ability to make the rules, to change them, to play whatever game we want as long as it's highly ethical, highly equitable, and gloriously fulfilling for all involved. That stated, I didn't follow any of my notes. Brian, wherever you are, thank you and God bless you for doing this for us. (Applause) Brian: Thank you Jay, I am delighted to be here with you. When Jay called me, he said would I come and speak on a Saturday morning; I made an agreement with my family and my children; I would not speak on weekends, and so I said, 'You know, I don't speak on weekends,' and he said, 'You know what, - ' Could we - how are we doing with that sound there? As the philosopher said, 'life is just one damn thing after another.' (Laughter) Anyway, I don't normally speak on weekends, but he said, 'You know, but this is going to be 700 millionaires. You're going to be talking to millionaires. You can't get an audience like this.' And so what I found is that everybody here is either a millionaire, or you intend to be, is that correct? (Cheering) Right. Very interesting point, Napoleon Hill, when he started writing his books on success, you know Andrew Carnegie opened the door for him to 500 of the richest men and women in America, and he interviewed them for 22 years; and the first person he started with was Andrew Carnegie and Andrew Carnegie had a reputation. He was called the 'Millionaire Maker,' because more executives who went to work with him from humble beginnings, became millionaires, than had ever been created by any
single executive in history. And Napoleon Hill's goal; because he wanted to be a millionaire maker as well, with, by sharing this research, but I will tell you, Jay Abraham is the true Millionaire Maker. He is the one who makes millionaires. (Applause) He is our Millionaire Maker for the 21st Century, so I said, 'Alright, if I’m going to be able to speak in a whole room full of millionaires, then I'll come.' Then he said, 'But you must understand,' he said, 'I can't pay you anything.' I said, 'Well, that's okay, because if you ask, I'll come.' Because I owe Jay a lot of favours, he's been a very good friend, he's given me good advice, great input; I consider him to be the guru of successful marketing in business. So I said, 'Okay, well, I'll come, and I won't charge.' And he said, 'But you have to be good, it has to be a good talk.' (Laughter) So I said, 'Jay, I promise I'll come, and I'll be good for nothing.' (Laughter) So here I am. Question: who's the most important person here? (Audience replies 'Me') Very important question by the way, because the answer is you are the most important person here. And how important do you think you are, is the critical determinant of everything that happens to you in life. People who consider themselves to be important and valuable are totally different from people who don't like themselves, or who feel inferior or inadequate. One of the most important battles we fight in life is over all the different influences that tend to pull us down and tear us down. The fact is that you are important. You are some of the most important people in the world. In your own world, all the stars and billions of planets revolve around you anyway. But you're important to your family, you're important to your children, you're important to your employees, you’re important and you're important in a special. I am a student of entrepreneurship; I spent 25 years studying the economics of entrepreneurship as well as the practice, and I have been very successful as an entrepreneur, I'm happy to say. What I learned is this; is that 1% of people in our society can create jobs. 99% of people can work at a job once it's been created. Only the entrepreneurs create jobs. And it is the entrepreneurs - all the jobs in America; 80-90% percent of all the jobs in America, are being created by
entrepreneurial businesses. You are the engines that literally drive our society. You are the ones that create the jobs, that create the opportunities, that pay all the taxes; if that doesn't make you mad, nothing else will. You are the ones that provide opportunities, provide jobs; you are the future. In fact, I just came back from Russia; I was in Russia last week working with - on an entrepreneurship project that I've been working on now for 12 years. Sometimes things take a lot of time to come to fruition; but my goal - and I was at the Kremlin, meeting with the assistant to Vladimir Putin on this; and I’ve got complete support all the way down, and it is to do a crash course on entrepreneurship for the Soviet Union, or for Russia - it's no longer the Soviet Union. Because they don't understand economics, and they don't understand free markets, and they don't understand profitability. They were taught for years that these were all evil things, and now they realise; and Vladimir Putin in conjunction with George W. Bush, has said 'We have got to turn Russia into an entrepreneurial democracy. And we've got to do this quickly.' So what I've designed is a really neat program, and it's a crash course; because what I've found is this. That a country is successful to the degree to which it's entrepreneurs are respected, cared for, tended, nurtured, fertilized, and encouraged. And a country is unsuccessful to the degree to which entrepreneurs have a hard time. So the most successful countries in the world; the freest, the most prosperous, the most wonderful countries in the world are the ones that have the greatest number of entrepreneurs. And the United States, if there’s a sweepstakes, and United States won the sweepstakes this year, worldwide is the most entrepreneurial country in the world. Which means that it's more possible to start here or to come here, and to build a business and become wealthy, than any other country in the world, ever in the history of man on Earth. So you are at the front of the line. You're at the front of the line in terms of becoming successful, here, right now. If you can't do it here, it's not possible to do it. Now you'll have to learn how to do it, but the fact is that you can do it. And our job today; my job in the little bit of time that I have; is to give you some ideas, and then Jay's job and the jobs of the other wonderful people here, is going to build on that. But let me ask you a second question. What's the most important part of today? And this entire conference? (Audience replies - unclear) Well the answer is; and it's very important, the answer is what you do afterwards. Hi John. It's not the fact that you're here, it's what you do
afterwards; it's the actions that you take. And I'm going to give you a very simple principle. First of all, you are very important. Second of all, what you do afterwards is the critical determinant. Action orientation is the one identifiable quality of really successful people. Successful people are in action, they're in motion, they are moving, they are doing things, they are trying things. I cannot tell you how important this is; is that the faster you take action; Rich DeVos told me this, long before he was one of the richest men in the world. He said, 'Brian, we have found in our research,' he said, 'that there is a direct relationship between how fast a person takes action on a new idea or opportunity when they hear it, and how likely it is that they will ever take action on anything.' Now, if you do something repeatedly over and over again, what do you develop? You develop a habit. Now, 95% of everything we do in life is our habits. Successful people have good habits. Successful people have done certain things over and over again, until they become automatic. They get up early, they get going, they prepare, they plan their days, they make calls, they get out there, they pay their taxes, they do their job properly. In other words, they do the things that lead to success, alright? Unsuccessful people have bad habits. Let's just say unsuccessful people don't have good habits yet, alright? So the development of habits is the key to success. All successful people have good habits. Now, if you hear a good idea and you take action on it quickly, and every time you hear a good idea, you try it out, what kind of a habit are you going to develop? You're going to develop the habit of action orientation, you're going to become the kind of person who's a moving target. I know people who are worth millions and hundreds of millions of dollars; entrepreneurs that have never had a day in business school; tenth-grade dropouts; but they have one quality is they're action oriented. So if you hear something good today; and you're going to hear so many good things in the next couple of days; if you hear these things, the most important thing is, imagine an archer pulling the bow back; your job is to take action as quickly as you can. Now, if you take action, only two things can happen; what are they? (Audience replies) You can either succeed or you fail. Now, if you succeed, good; you do more of that, wonderful. If you fail, what happens? (Audience replies) You learn something, which makes you smarter, makes you wiser, makes you tougher, and pushes you forward. Now, here's the interesting thing.
We only learn to succeed by failing. It is impossible to succeed without failing, and the most successful people are the biggest failures. The people who succeed the most, fail the most. I've had this argument with people, they say,' Oh no, successful people are just lucky people. They just kind of lucked into the right opportunity.' No, that’s not the case. Successful people fail over and over and over again, but they keep picking themselves up, and trying, and they keep getting smarter and smarter and smarter. They had four millionaires, selfmade entrepreneurial millionaires, interviewed on television recently, and they asked them during the interview; they were sort of around the couch like this, 'How many different businesses have you tried before you found the one where you made a million dollars?' And they hadn't even thought about that, so they had a commercial break, and these guys sat down and calculated up, and it came back on again. The average was 17. They had given 17 shots on average; some had given 30, some had given 12; but there was 17 on average. Now, question, okay, did they fail 16 times and then succeed the 17th? Or did they get smarter and smarter and smarter until they were impossible, impossible to stop. And that's exactly what happens with you. So therefore whenever you get knocked down, whenever you fall on your face, say 'This is part of the process; this is the price that you pay. This is the price that you pay to be in the top 1%. This is the price that you pay to be a millionaire.' Can you become a millionaire on the cheap? Can you become a millionaire quick and easy? Only idiots buy lottery tickets, and they say, 'Oh, I'm going to become a millionaire by buying a lottery ticket.' No. I'm here by the way, to tell you I've got some bad news for you. Two things: one, you're not going to win the lottery. So don't buy any more tickets. The lottery ticket is a stupidity tax, it's the only tax people pay voluntarily (Laughter) Number two; I hate to tell you this; there is no long-lost relative who's going to die somewhere and leave you a pile of dough. So the only way that you're going to become healthy is all by yourself, and you're going to become wealthy by applying what we learn here. Now, I have studied success all my life, and I'm going to try to give you just, in the time that we have, some really good ideas, the best ideas I know. So, what I have found; and I started off my life so far behind I thought I was first. (Laughter)
I do not graduate from high school, I finished in the half of the class that makes the top half possible. (Laughter) And I worked at laboring jobs for years and years, until, when I can no longer get a labouring job, I, like you, got into sales. You know how we get into sales in entrepreneurship? We back up and we hit something; we get out to see what it was, and it's a sales job. There we are, and then we flounder around; and then after spinning my wheels for about 6 months, I finally went and asked somebody, 'What are you doing differently from me?' And he told me, and I did it. I asked the top person in my company, who was selling five or ten times as much as me; 'Hey, what are you doing differently?' And he said, 'Well, this is how I sell,' and I won't go into the details of it, but he had been trained by a Fortune 500 company, he had twelve, 18, 24 months of intensive training. He knew how to sell in a logical and orderly way. So I begin to sell in a logical and orderly way, and my sales went up. Then I began to come to conferences like this, and take notes, and practice what I've learned; and my sales went up. And I began to read books and listen to audio programs, and my sales went up until they made me a sale mangler. And eventually they said, 'Whatever you're smoking, share it with other people,' because it worked. So now I've trained more than half a million sales people worldwide, and many of them, countless of them, are millionaires today. By the way, in America today, we have five million self-made millions. Five million. That is greater - and there's seven million in the world; five million are in the US. Think about that, okay? Now, if you have five million self-made millionaires, where do they all come from. Do you know where 79% of self-made millionaires come from? 74% come from entrepreneurship. 74% come from the people in this room. And 5% come from sales. And what do you think the most important single skill for entrepreneurship is? Sales; the ability to sell what you have. It's a complete idiot who say, 'I've got a great product, I'll just find somebody to sell it.' You must be out of your mind. If they can sell it, they won't work for you. They'll sell their own stuff, they'll make money elsewhere. So therefore, 79%, or almost 80% of your possibilities of becoming a selfmade millionaire contain within yourself and what you're doing right now. And so your job is just to figure out how you're going to do it. Well, what I found was; and this is - where are they? Excuse me. There we go, got it. (Laughter)
If you want it done, you've got to do it yourself. Okay. What I found was that the law of cause and effect is what predicts everything. The law of cause and effect is the reason for everything that happens. Now if you only had one or two self-made millionaires in America, you could say that was a remarkable coincidence. But if you have hundreds, and thousands, and millions of self-made millionaires, then you have to assume something's going on here. So what we say is, 'Success leaves tracks;' find out what successful people do, and do the same thing. The law of cause and effect says, ‘if you do what other successful people do, you get the same results’. Now, here's the great application of the law of cause and effect; it is that thoughts are causes and conditions are effects. Your entire outer world is a reflection of your inner world. This is the great discovery in all of human history; to me it is the greatest of all discoveries. I read it every day, and every single time I read it, I'm just flabbergasted. Here is the great equation, are you ready? The great equation is just this. It says that your outer world is just simply a reflection of your inner world. If you want to change anything on the outside, you have to change something on the inside. This is why Peter Drucker says that 'Knowledge and know-how are the keys to the 21st century.' Knowledge plus know-how, or knowledge and skill, are the keys to the 21st century. It's because what happens when you learn new things? You change the person you are on the inside. As you change the person you are on the inside, your outer world begins to change to reflect it. So here is the great discovery, and I'll write it in red. You’ve heard this many times, but again, it is the basis of all religions, and all philosophy, and all metaphysics, and all psychology, and all success; it is that you become what you think about, most of the time. You become what you think about, most of the time. You become what you, think about, most of the time. Now, here's the question - by the way, this is always true, except there are - there are some exceptions, because if there weren't some exceptions, then every young man would turn into a young woman by the age of 20. (Laughter) And all fat people would turn into pizzas. Okay. So, you become what you think about most of the time. So the good news has been done. And by the way, this is the rule; all the research has been done, we don't have to reinvent the wheel. All the good ideas have all been found, we just have to learn them and apply them; we have to take action on them. Action orientation. Okay, so then the question is; and they've interviewed over 350,000 entrepreneurs and we sliced and diced them up by how
successful they are, and they've looked at the top 10% of entrepreneurs. And by the way, everybody here in this room is in the top 10%, or you intend to be. Is that correct? Say yes. (Audience shouts 'Yes.') Okay, so what they did is they asked these people what do you think about most of the time? What do you think about most of the time? And can you guess what successful people think about most of the time? (Audience replies - inaudible) Well, it's a little bit more than that, but I will tell you, there is a particular mindset that leads to success, it's absolutely slam-dunk guaranteed, that if you have the proper mind set, you will be a great success in life. But not only that, you'll be happy all the time. Which is as important as anything else; you'll be a happy success, alright. Well, here's what they find; they find that happy successful people think about what they want, and how to get it, most of the time. You think, 'That can't be that simple.' Yes, successful people think about what they what and how to get it. Successful people have very clear goal, they know who they are, and what they want, they know what their priorities are; but they think about what they want and how to get it all the time. So I'm going to teach you your operative word, which will guarantee your success in life, and the word is simple, "How." Say 'How.' (Audience shouts 'How.') From now on, whenever you have a goal, you say, 'How do I achieve it?' Whenever you have a bill; 'How do I pay it?' Whenever you have a problem, 'How do you solve it?' Whenever you have an obstacle, 'How do you overcome it?' But from now on, the only question that you ask is 'How?' And it's very interesting; I was speaking to a self-made multimillionaire a couple of weeks ago, I went in to speak to him; he has 29 companies. He bought in an entire roomful of all of his executives, and said 'Brian,' he said, 'Just talk to them for three hours and tell them anything you want.' And so I did, and at the end of it, he came up to me and he said, 'Brian, you started with nothing, and you started as a new immigrant to this country;' he said, 'Brian, that word 'How,' he said, 'Geez, I've known that in the past and I've forgotten in, it's the most important thing I learned,' he said; 'That's going to become our operating word throughout all of our companies.' We've got lots of challenges, and the markets are up and down, and the stock market is up, and the customer's come and go, and so on; but the
critical question, how? And here's what happened, when you ask the question 'How?' it's like stepping on the accelerator of your own car, sitting in neutral. (Mimics a car). And it throws off sparks of ideas. Remember, ideas are the keys to wealth in the 21st Century, so when you keep asking 'How?' and then 'How else?' and then 'How else can we do it?' and 'How else?' and 'What's another way to do it?' And you keep asking 'How,' and you get everybody thinking in terms of 'How,' what you do is you become intensely solution oriented. Now, here's an important point. You have two types of people in the world, the bottom; the 80 or 90% who are problem oriented, and talk about their problems all the time; and then you have the top people like yourself who think and talk about the solutions all the time. So one of the most important orientations that I learned, is successful people are solution oriented. Now, from now on, remember, the natural tendency of human nature; it's almost like gravity, okay. In that our natural gravity is to talk about what we're worried about, what we're anxious about, who we're mad at, what our problems are and everything else, but the top people don't do that. They discipline themselves, so they wait, stop; there’s no future talking about things that have already happened that can't be changed. We can only talk about the things that we can do something about, so the only question we ask is 'How?' You have a problem, how do you solve it? And you become intensely solution oriented, and your question is 'What is the solution?' 'Okay, I know we have a problem, what's the solution? Yes, I know that happened, but what's the solution? Yes, I know we have a difficulty there, but what do we do now? What's the next step?' Because what we find, is that solution oriented people are future oriented people. Now, does anybody here - quick question - does anybody here have a light bulb - light at home with a dimmer switch on it? Okay, I see some of you are too tired to raise your hands. Yeah, those are the people that like to go through the revolving door of life on somebody else's push, you know? 'I won't raise my hand, I'll let the person next to me raise their hand.' (Laughter) Lazy buggers. (Raises voice) How many people have dimmer switches at home, for Christ's sake? (Audience shouts) Thank you so much, geez. We've got to put more juice in that coffee, Jay. Anyway, so a dimmer switch can be controlled mechanically by either
turning it or pushing it up and down. Okay, that's a dimmer switch. Now, when a dimmer switch is on full, it's fully bright, okay? When a dimmer switch is down, it's low and dark. You have a dimmer switch on your brain, and this is critically important. You have a dimmer switch on your brain, and it's the critical determinant of your success and happiness in life; it's so simple. You have tremendous mental abilities, but it's like a light bulb; it's turned down, then it just gets very, very little light. But if it's turned up, it gives you tremendous life. When you dimmer switch is on full, and it's full bright; you are creative, you are positive, you are confident, you are happy, you are powerful, you have high energy, you're immune system is strong, you need less sleep, you're more effective in your interactions with other people; it's everything good when your dimmer switch is on full. When you dimmer switch is down low, because of problems, difficulties; you get worried, you get anxious, you get nervous, you're frustrated, you're irritable, you snap at people, you don't sleep well at night, and so on. Does anybody know what I’m talking about? And our dimmers switches, by the way, are going up and down all the time. Now, a physical dimmer switch you control with your physical - mechanically, with your hand. And a mental dimmer switch, you control with your thoughts. And there are certain thoughts that you think that keep your dimmer switch on full. One of the things that's going to happen is a result of this conference, is not just at the end of the conference, but throughout the conference, you're dimmer switch is going to go 'Wham, wham, wham,' you're going to - 'Boom, boom;' you're going to have ideas and sparks, because whenever you hear a good idea, that you think can help you, your dimmer switch goes on full. It makes you happy. Human beings are naturally creative, and whenever we have a good idea we feel happy, it just kind of 'Whoo;' even if we haven't done anything with the idea yet, we feel happy. I mean, if we sit there and think about what we're going to do afterwards or go - well, never mind, I won't go into that. It makes us happy. Anyway, the very anticipation of an event. They say 85% of all of our emotions are determined by our anticipation of what will happen. If we think, 'If we use this, we're going to be more successful,' it makes us happy just to learn the idea. So there's certain thoughts that you're thinking; I could spend all day on this, but when you think about solutions, your dimmer switch goes on full. When you ask the question 'How?' your dimmer switch goes on full. When you think about the future and where you're going; and Jay was talking earlier about having a clear reason, mission, vision, which we'll talk about in a second; for you future, whenever you think about an exciting future,
your dimmer switch goes on full. And the interesting thing is, if you keep thinking about the things that you want, and how to get it, and you think about your problems and how to solve them, you think about your goals and how to achieve them; eventually it becomes a what? (Audience murmurs) It becomes a habit and you develop the entrepreneurial mindset. The entrepreneurial mind set is a person who's always positive, forward orientated, thinking about where they're going, thinking about how to remove the obstacles, The non-entrepreneurial mind set is a person who's passive, waiting for things to happen, complaining about life, wahh wahh, bitch, bitch, moan, moan. 'My mother didn't love me, my father was this, my childhood sucked.' Did anybody here have a lousy childhood, say yes. (Audience shouts 'Yes.') Good. Get over it. (Laughter) We don't want to hear about it anymore. I don't ever want you to talk about your lousy childhood ever again. Because do you know how many years are consumed, and what I found in meta-physics was this, the more you think about subjects that make you unhappy, the more unhappy they make you. And eventually you get to the point - quick aside, sidebar no extra charge, Jay. (Laughter) What's the most popular prescription drug in America? Prozac, and it replaced Valium, which replaced something else; and Prozac is an antiwhat? It's an anti-depressant. Now, today we have 1000% increase in the last 100 years, a thousand percent increase in depression in America. 'I'm depressed, they're depressed, they're just depressed, they're so depressed, they've got to have pills, I'm so depressed.' Why are so many people depressed? Well, they did a 22 year study at the University of Pennsylvania, and they figured out why. People are depressed because they sit and think about their problems all the time. They sit there and - have you ever made tea; you put hot water, boiling water into tea, and you forget about it, and the hot water works on the leaves, and they steep. You know what steeping is? They steep, and tea becomes darker and darker and darker. Well, the word that they came up with at the University of Pennsylvania - this is in a psychological study was the word 'mull’. Unsuccessful people, unhappy people mull over their
problems, they think about their problems all the time, they steep the tea leaves of their problem, they mull; and their minds become blacker and blacker. And pretty soon they actually change - their thoughts actually change the chemical construction of your body, and they actually make themselves physically ill. It's called psycho-somatic medicine. Psycho; the mind, make soma; the body, sick. 85-95% of our health problems today are psychosomatic, as people are just thinking over their problems, and the more you think about your problems, the more depressed you become. So they say, 'I'm depressed.' Now, people say, 'Well, this person has a bio-chemical problem that's leading to depression. Yes, it's called stinkin' thinkin'. (Laughter) That's what it is. It's what they're doing. You know, if I said, 'You become what you eat,' you would say, 'Well, everybody knows that.' I mean, if you eat really good healthy foods, fruits, vegetables; everybody knows the proper foods to eat; if you eat these foods they eventually affect the chemistry of your body, cell structure and everything else. Everybody knows that, don't waste time with that. We've heard that a million times, okay? We don't eat any better, but we heard it, okay? Now, it's the same thing; you become what you think about; whatever you feed into your mind. That's why coming to a place like this - do you know how many lives have been changed by coming to a conference like this? There's something about being in a room full of incredible people, all of who have great ideas, ambitions, hopes, aspirations and so on; that creates a force field of energy in the room, and you will have ideas. Here's my promise. You'll have an idea, Jay will be talking, or someone else will be talking; you'll have an idea, and it'll spring into your mind like one of those little lightning things in the cartoons, and it'll have nothing to do with what the person is saying. And it'll just, 'Boom,' this idea - just 'Boom,' like that. And what you do, here's the rule, catch the idea and write it down. When you get an idea, don't wait. Just write it down quickly, because that idea might be worth the whole conference, and nothing in the conference was about that idea. Because the room; there's an atmosphere of intelligence in this room that everybody can tap into. It's almost like an electrical force field that you can tap into. So your job is to keep your mind on what you want. And the reason why people are depressed is that they're going to talk about what they don't want all the time. So when a person starts talking about something they don't want, say, 'Is that what we really want? If we don't want it, let's stop talking about it.'
Now, a friend of mine who is a psychiatrist, said, 'In 25 years of psychiatric counselling,' he said he most common two words he ever heard; when he met with a client for the first time, or even later; were these two words. And the words are 'If only.' 'If only, if only, if only I'd done this, if only I'd done that, if only he or she hadn't done this, done that; if only my parents, if only my spouse, if only my kids, if only I hadn't hired that SOB that robbed me blind; if only, if only, if only.' Well, you can take all your 'if only' and your 'could haves' and your 'should haves,' and add 50 cents and buy yourself a cup of coffee at a cheap place, okay? The fact of the matter is, that all if onlys refer to the past. I'm going to give you a piece of advice, is let the past go. The past has only one value for us; it teaches us to be successful in the future. So what you do is you sort the wheat from the chafe, and you take out the things from the past that were helpful, and let the rest go. And don't ever say 'if only' again. 'If only I invested in real estate in this area 10 years ago, I mean...' Well you were broke then and you're broke now, so shut up. (Laughter) In other words, get your head out from wherever it is stuck, and get on with the future. And don't worry about the past. The past, you can't control the past. 80, 90% of people's energies are immersed in worrying and talking about the past. Your job is to be future-oriented. Your job is to be solution oriented. Your job is to think about and talk about what you want and where you're going; that's the key to successful entrepreneurship. Entrepreneurs are in motion, in a forward motion, all the time. Now, there's an incredible thing; I'll come back to this in a minute, but when I was in China recently, I found that the Chinese - I was speaking in Shanghai, we've got 20 million people in Shanghai. Woo. I'll tell you, thank God those entrepreneurs don't come over here, they'd eat us alive, I mean, these people eat raw meat. I mean, they're hungry, I'll tell you what. 16 hours a day, that's slacking, you know. So anyway, but the Chinese believe in luck. The Chinese believe a lot in luck, okay? And the reason is because throughout all the history of China, there have been wars and revolutions, and famines, and plagues, and mass murders, and one tribe massacres another; so life has been extraordinarily unpredictable, right up until recently, by the way; the way the Communists come over, kill tens of millions of people and so on; you never know what's going to happen. So, the Chinese believe that a lot of everything that happens in life is luck. Well, I have studies this subject for many years, and what I've found is that there's a difference between what we call luck, and what is called chance.
Now, chance is what takes place in casinos. You draw cards, you roll the dice, you put your money down on the roulette table; none of which you know anything about, but - ah, but this is chance; you have no control over it, you have no control. What we find, by the way, is that entrepreneurs do not like games of chance. Entrepreneurs do not gamble, they don't go to Las Vegas, they don't buy lottery tickets, they do not believe in gambling. And by the way, if you believe in gambling, get it out of your head, because what it does, it's a defect in your computer. It's a bug that eventually poisons the whole program, because the gambling is always an attempt to get something for nothing. An attempt to get something for nothing starts off with a little tiny thing, and it actually grows, and it gets worse and worse, and then we have Enron, and all of these scandals that people go to jail for years and years. So, what I found is that luck is really a matter of probabilities. Now, there's a probability that everything will happen. There's a probability that if you flip a coin, it'll come down heads or tails. What's the probability? Can we turn on these light full please? Who turned the lights down? Please turn up the lights, okay. Don't touch those lights, I'll smack your hand. This is not a nightclub, this is a seminar, right? Ah, so, what is the probability that a coin will come down heads or tails? 50%. You could flip a coin all day long, what's the probability next time? Always 50%. Now, there's a chance in America, that the people will become millionaires. What is the probability of you becoming a millionaire if you're in America. I mean, just basically if you're born in America, grew up in America. Or you could move to America. What's your probability? It's 5%. 5% of American families have a net worth of more than a million dollars. By the way, please understand this, everybody in America starts of broke. America was started by brilliant, brilliant people who decided to create a country where people could start off with nothing, and become successful. It's the only country in the history of the world that has a Constitution, Bill of Rights, Declaration of Independence, and legal structure that is designed for the common man. No other country, in human history, has ever had it. Now, you've got a lot of left wing, pinko, limp-wristed people in government, who think that America should be a great Communist society, and so on, and so these people are always trying to raise taxes and increase regulations, and diddle with the law. They have tried to fight Supreme Court Justices who want to interpret the law the way the founding fathers wrote it, and all these other people want to game the law. And there's people on the left who are always trying to game the law. They believe the law is there to be broken if you can get away with it.
We've had them in office for 8 years, okay? And that's why we have so much trouble today; everybody thought that the law was there to be gamed. So you've got so many people trying to cut corners, the fact of the matter is, society is not ruled by law; it's a society ruled by chaos. We must have law and order. If you don't like the laws, we work to change them, but we obey the laws. One of the most important things about being an entrepreneur, is always pay your taxes, always obey the law. Never do anything that is dishonest. If ever you do anything that's dishonest, it's like putting your hand into a bear's mouth, and the bear closes their jaws; getting out of the legal system is a nightmare. Don't ever get into it. Are you with me so far? Don't ever - they say that entrepreneurs are always trying to cheat on their taxes; don't ever cheat on your taxes. We don't like taxes, we all fight for people like Bush, who wants to lower taxes, but don't ever mess around with your taxes. Once they catch you, they're the most terrible human beings that ever lived, those people in government. Awful. Okay, well, so. (Applause) So, it's really important. It's better to be poor and honest, than be rich and dishonest, because remember, as Satchel Page once said, 'You better keep moving, because something might be gaining on you.' Okay, they're gaining on you and you always get caught. People think, 'Well, I'll game the system;' you'll always get caught. Something about the legal system; you always get caught. So don't get caught. So anyway, probabilities. There's 5% probabilities. Now, that's pretty good probabilities; highest probabilities in the world; 5% will become millionaires. And as I was saying before, by the way, about being broke, well some people complain, 'Well, I don't have any money, how can I become rich?' Well I got news for you; nobody has any money to start off with. American's like being broke so much, they keep going to it throughout their lifetime. (Laughter) Being broke is the normal thing, all self - self-made millionaires on average have been broke, or nearly broke, 3.2 times. So if ever you've come to the edge, you've come almost - gotten broke or you got deeply in debt and so on, join the crowd. When you get deeply in debt, and you get under the gun, and the pressure is high, and you're in an emotional pressure cooker, and you are scrambling; you know what's happening? You are learning at an incredible rate, like a fusion reaction. One really tough business experience that almost destroys you, if you don't - as [unclear] said, 'What
doesn't kill me makes me stronger;' one really tough business decision will teach you more lessons that will enable you to be successful than anything you can imagine. As a matter of fact, when you are going through hell, you say, 'Thank God, oh boy, this is really helping.' (Laughter) 'Boy, am I learning a lot.' Okay. So, the fact is, if you're playing with the gun; well, if you've got 5% chances, it's like playing Russian Roulette with a gun that has 19 chambers loaded, and one empty. There's (imitates a barrel of a gun spinning), and push the - [unclear] the bullet, and not good odds, okay? So what is your job throughout life, in terms of becoming wealthy and happy? Your job is to increase the...? (Audience replies) Probabilities. And everything that you learn that helps you to become better, like here, increases the probabilities. When you think about the solutions, you increase the probabilities. When you know exactly what you want, you increase the probabilities. When you treat other people well, you increase the probabilities. When you take good care of your physical health, you increase the probabilities. And you'll find that financial success is rare, but it's a result of a whole series of probabilities. The person who is successful has done a whole lot of little things. One thing they didn't do, they didn't step on their own windpipe by doing things that were dishonest. Okay. So, what we find is that the most important single quality for success as an entrepreneur - number one quality is the quality of optimism. Entrepreneurs, in studies of tens of thousands of successful entrepreneurs, we find that entrepreneurs are optimistic. They're positive about themselves. Now does this mean that they're positive all the time? No, it just means that in general, they tend to be positive and constructive about their life and their work. And that's why Napoleon Hill, in the middle of the depression, wrote his book and said that the key to success is a positive mental attitude. Everybody goes, 'Wow, that's a remarkable thing.' It's a positive mental attitude. PMA. Now, optimism is what they discovered at the University of Pennsylvania as being the predominant quality of the highest paid, most successful and highest paid people and happiest people in our society. So optimism; and what the conclusion was that optimism was learned. People learn to be optimists or they learn to be pessimists. They learn to be optimists by thinking about things that they want, and they learn to be pessimists by thinking about the things
that they don't want. And they learn to be optimist by thinking about their future and their possibilities. and they learn to be pessimists by thinking about what happened in the past that they can't change. Are you with me so far? Now, here's the rule from Gary Zukav. He says, positive thoughts empower. Whenever you think a positive thought, you feel more powerful. When you think a negative thought, it disempowers, it weakens you, makes you angry, turns your dimmer switch down. So there are three ways that you become an optimist. Number one is you think and talk about what you want. Think and talk about what you want, and how to get it. This is - if you just did this, by the way, go home now. Because I promise you this, the more you think of talking about what you want, and the more you focus on how to get it, which is why we're here today, the faster you'll move ahead. The greater the probabilities will be that you'll be successful. Number two is, they look for the good. Imagine that everything that happens, happens for a good reason, so look for the good in every situation. Look for the good in every person. Your business went broke; well that's okay, it was a lousy business anyway. Your house burned down; well, that's okay, we needed a new house closer to the office. Your car got stolen; well, the ashtray's were full, who cares. You know. In other words, you become - you always look for the good. Now, here's an interesting thing. It's like a dog looking for a bone; 'sniff, sniff, sniff, sniff, sniff.' If you keep looking for the good, you will find it. In the Bible it says, 'Seek and you shall find; for all who seek, find it.' It means that if you look for the good, you will find something. And the interesting thing is your mind can only hold one thing at a time, positive or negative. It's called the law of substitution. So therefore, if you look for the good, you knock out. You block out, by substitution, all negative thoughts. So if your life is going to hell in a hand basket, you say, 'Oh, that's good. That's good, that's great.' So these are your words; 'That's good.' W. Clement Stone would say 'That's good,' all his life; he started off selling newspapers on the streets of Chicago, and died worth $800 million. And he taught people to always be optimistic, always look for the good. And the wonderful thing is, if you look for something good in any situation, you will always find something good. Now, here's the second key to - third key - to becoming an optimist; you seek the valuable lesson. And this is so important; you make it a habit to always look for the good, and seek the valuable, valuable lesson in
every situation. And if you seek the valuable lesson, surprisingly enough you'll always find it. In studies of hundreds and hundreds of self-made millionaires, multimillionaires and billionaires, you find that every one of them have developed a habit, a habit of looking into every single setback or difficulty, for the lesson. And they always find it. There's always a lesson that is actually worth more than the problem. And sometimes it is the lesson that turns your life around. Sometimes a setback, when it occurs, in retrospect, you say, 'Thank God that happened, because if hadn't happened, I'd have kept on that course of action, instead of going on this course of action, where I achieved my great success.' Now, here's something that was discovered, by the way, by Buckminster Fuller, and it's very important. It's called the theory of procession. And it's not discussed anywhere, but it's something that I have learned, and it was rediscovered in a 12 year study and Babson College, amongst successful entrepreneurs. And they called it the corridor principle. They said that when you set off to achieve your success, usually your target is here, okay. It's a certain amount of sales, a certain amount of profitability, and you start of down a corridor, like you're walking down the corridor of this hotel. And as you walk down this corridor, towards your target, because that's where you think it is, something happens and your path is blocked. Okay? The market changes, collapses, run out of money; a thousand things happen. However, at this point, another door over here opens. And there's another corridor, so you start down this other corridor. And your target seems to be down here. It seems that the target has shifted, and you start down there, and, as you start down this here, you hit another block. But each time you hit a block, another door opens and you start down another block. And you start down here, and you hit a block, and another door opens. And this is the way life is. And eventually what happens; another door opens, and you eventually, by the way, find another door opens, and eventually, you find yourself at your target, which was financially independence; you find yourself there in a totally different way to than you expected. Almost every single person who succeeds, succeeds in a different way, a different area, a different product, different service, different market, different customer base, different business model; than they started off with. But they said, 'Now, here was the key to success.' The difference between successes and failures is successful people wanted to have everything just right before they started down the corridor.
I mean, unsuccessful people. Successful people just started. And so the most important word that you'll learn is the word 'launch.' Is 'launch' towards your goals, just throw yourself, as we say, leap, and the net will appear. So what you do, is you get a good idea, you just launch. You project into action, you take action on it with no guarantees of success. And I'll tell you, this is what they found at Babson College in 12 years, in the entrepreneurial faculty. They found the difference between successes and failures is that successes are willing to try with no guarantee of success. Failures are always wanting a guarantee. Always want to be sure; 'I want some kind of guarantee that I will be successful if I invest my time or money.' But successful people sort of say - they think it through, they take a chance, they get an idea here from Jay or someone else, they say, 'It sounds good,' and they just try it. Now, as soon as you try it, what happens is you get feedback, instantly. And the feedback, gives you feedback that enables you to self-correct, and change course, and often, you will self correct and you'll get feedback; 'Whoosh,' and you'll change course; 'Whoosh,' you'll change course; 'Whoosh,' you'll change course; keep changing course; be like a long-tailed cat in a room full of rocking chairs. I mean, you're moving all the time. And the interesting thing is, the more you move, the more you change direction, and the more you'll take in new information and ideas, the more you increase the what? Probabilities that you'll be successful. And when you finally achieve your success, people will say, 'You know, you're just lucky.' (Laughter) 'Well, I got up every morning early, I worked hard all day, I planned my time, I worked on high priorities, I attended every conference, I listened to tapes, I read books, I did all of these things for 15 years, and finally broke through and made a million dollars, and that was just luck? While you stayed at home watching television, scratching your belling and bitching about your childhood?' (Laughter and applause) I love you guys, I'm so happy to be with you, because we are all the same. I mean, I feel like you're my brothers and sisters, because we're all going through this. I'm running my own businesses right now; I'm one of the few people who's built a million dollar Internet business. You know anybody? I make more money than Amazon. (Laughter and applause)
Their volume is greater but they still don't make any money. And I cannot tell you all the heartaches that I've been through. How many times do you get lied, deceived, cheated, swindled? I mean, this goes with the territory. Small business people seem to be either victims of our society; everybody wants to tear a piece out of them, until you become big enough to tear a piece back. Alright. Okay. So launch with no guarantee of success, and that's the key thing. Successful people think it through and then launch with no guarantee of success. The most important single quality for success is courage. Just have courage and its sister quality; self-confidence. Courage and selfconfidence. Now, courage and self-confidence are learned qualities. How do you learn courage and self-confidence? Going right back to Aristotle; how do you learn it? You practice it whenever it's required. And even if you don't feel courageous, you take a deep breath and you do it anyway. You just whistle through the graveyard. I remember this story of motivation. This fellow is on his way home one night and he's running quickly, and the sun is setting, and he's in a real hurry, and he should probably be home for dinner, and he lives way on the other side of this city cemetery. And he things, 'Well, I could really save some time if I just cut through the cemetery.' So he says, 'I'll cut through the cemetery.' So he's hurrying through the cemetery as fast as can; he doesn't want to be in the cemetery, and it's just nightfall, and he comes racing around this hedge and he drops right into an open grave, that had just been dug, for use for the next day. And it's about 10 feet deep and about 4 feet wide, and about 8 feet long, for a large casket, and he drops. And he falls in the - the earth is soft, so he doesn't hurt himself, and he lands in this grave. And he says, 'Geez, whoo.' And he looks up, and it's night, and he starts shouting, 'Help, help, help!' There's nobody there. 'Help, help,' nobody's there. And he thinks, 'I've got to get out of here.' So he started jumping up and he starts to brace himself against the wall, and he jumps up, and it's just too high, it's just too wide, and he can't get out. He keeps pulling the edge down and he thinks, 'Damn, this is stupid, what a stupid thing to do, why didn't I watch where I'm going,' and he tries, and finally - he's exhausted, and he's tired and dirty; he's sitting there and he thinks, 'Well, the worst that can happen is that I'm stuck here all night long, and they'll find me tomorrow morning. My family will be upset.' Jesus, he's dumb. And he sits down there in the bottom of the grave and it gets completely dark, and he's sitting there just sulking, okay? 'Damn, damn, damn.' Then he hears this (knocks on something)
and then 'Boom, boom,' and then somebody comes and drops - falls in the other end of the grave. (Laughter) Just the way he did. And he's sitting there like this is the pitch black - 'Isn't that funny, that's exactly what I did.' And he the guy picked himself up and he swore, and he started to jump up and he tried to get out and everything. And he says,' That's just what I did.' And he sits there watching in the dark, his eyes have just adjusted to the dark; he sits and watches this guy swearing and getting all dirty and everything else. And he thinks, 'Well, I might as well let him give it his best shot. That's what I did.' So he sits there quietly, then he finally says - the guy is going (breathes heavily), and he says, 'Well, I should probably, you know, tell him I'm here.' So he gets up and he puts his hands on his shoulder and he says, 'Sir, you can't get out of here.' But he did! (Laughter) It's amazing what you can do with motivation. Okay. Now, I just want to ask you a quick question.. Does anybody here have any problems? (Laughter) Well, here's the rule. Life is a continuous succession of problems, and when you enter onto the entrepreneurial seas, they will be storm-tossed. And there will be nothing but problems up and down. Problem after problem after problem. As a matter of fact, problems are inevitable, they're unavoidable, they're continuous, like the waves of the ocean. They just keep coming. Now, unfortunately or fortunately, there will be a break in your problems, and it's called a ‘crisis’. (Laughter) So you will have - and I believe that problems and crises are very much like the waves of the ocean. You have the surfers' waves that come in every seventh wave. So you have problem, problem, problem, problem, problem, problem, CRISIS! (Repeats) And so on. So your life is like a person whose heart is defibrillating, (mimics heartbeat), Boom. So - and by the way, if you're an entrepreneur, you're going to have a crisis every two to three months. One of the rules is; running an entrepreneurial business; every two to three months you'll have a crisis that can sink the business if you do not respond to it effectively. That's just the way the world works. These are the probabilities.
And so what that means, by the way, and this can be a personal crisis, a health crisis, a family crisis, a financial crisis, a customer crisis; who knows what it is. In fact, your ability to deal well with problems and crises is really the test. It's the mark of whether or not you've got what it takes to be successful. So what that means is that everybody in this room is either in a crisis right now, has just gotten out of a crisis, or is just about to have a crisis. (Laughter) Now, if you go to a doctor and you take a stress test, okay, and the doctor gives you a stress test and they put you on the exercise machine and you get your heart - first of all they take your pulse, get your heart rate as high as they can, then they take your pulse again; then 5 minutes and 10 minutes later, they take your pulse; what are they testing for? Your recovery rate, that's right. Now, please understand this, it's a very important point. Is that if you have a crisis, a setback, a problem; the only way that you cannot be upset when you have a setback, a reversal, a problem of any kind is if you just don't care. Now, it's not possible to live only sociopaths and people who get elected to public office - you know the problem with politics, and I won't talk about politics anymore, because it just makes us mad. The problem with politics is the world politics. It's the root. It comes from the Greek. 'Poly' means many and 'tics' means voracious bloodsuckers. (Laughter) Anyway what they do is they test, and what they do is they test to see how quickly you recover. So you will have problems and crises, and you will respond to them. Every time you have a setback, according to the psychologists, you - it feels like an emotional punch in the solar plexus. It feels like a shock, it actually stuns you when you have a setback. It's like (mimics getting punched), and you're disappointed, and it kind of stops you for a while. And sometimes you'll get angry, and sometimes you'll lash out. This is normal and natural, it's okay. Only if you don't care about the result, can you not respond. However, in medicine, we call this your recovery rate, but in psychology we call this your response ability. What is your response ability? How quickly do you respond to difficulties? Now, nothing wrong with being set back, but how fast you respond. The key is not getting your heart rate up, but how fast do you recover? That's the mark of health. And physical health, if you have a very fast recovery rate, five or ten minutes; your heartbeat's back down to normal, what that means is pretty much your whole system is pretty good. That's one of the
very best tests of your overall health, is a stress test. That's why anybody over 40 who applies for an insurance policy has to have one; it's a real good test, okay. Well, your stress test; it comes all the day. Almost every day, you'll have a stress test, and you'll be a little bit taken aback when things go contrary to your expectations, but the question is how quickly do you respond? How well do you respond, and then your responsibility is the key. So here's the three words that you want to learn to use for the rest of your life, and they are the words, 'I am responsible.' I am responsible. I am responsible. I don't blame anybody else, I am responsible. I take responsibility. Say it, say I am responsible. (Audience says 'I am responsible) What that means; I'm in charge of my own life. I have chosen this life. I have chosen to be an entrepreneur. It's going to have ups and downs and turbulence and everything else; I'm going to have setbacks and reversals on the way to becoming smart enough to become rich and to hold on to it. Okay, so I'm not going to complain or bitch or whine or moan about it, I'm only going to do the third things, which is seek the valuable lesson. Seek the valuable lesson. So we look for the - we think and talk about what we want, we look for the good and we seek the valuable lesson. And here's the wonderful point, as I said before, you will find the lesson if you look for it. So here's a critical thing I want to teach you with regard to problems. I want you to take your biggest problem in life right now, whether it's a personal problem, health problem, financial problem. Take your biggest problem in life, which is the problem that causes you the most concern or worry or aggravation. Just think about what it is. Now we all have problems stacked up like dinner plates. And the top dinner plate is our biggest problem, and the next dinner plate; we all lots of them, okay. But there always tends to be one that's kind of bothering us the most. What I want you to do for the rest of your career is to imagine that your biggest problem of the moment has been sent to you by a great power that loves you, and wants you to be successful and happy. And this great power knows that the only way you can be successful and happy, is if you learn critical lessons on the way through. And these lessons - you only seem to learn lessons - this power knows you well; you only learn lessons when it hurts. Have you noticed that? We don't get free lessons. Every lesson costs us money, costs us time, costs us emotion. And so when we have paid the price for a lesson, that is
the time when we're the most open to learn. So your job is to look into your biggest problem, and say, 'What is the lesson contained in this problem? What I am I meant to learn that will help me in the future to be better?'
Jay Abraham Mastermind Marketing 2 And if you look into it, my promise is you'll find it. But don't just settle for the first lesson. Because lesson often are in several levels. And so what you do is you say, 'What else could be the lesson? And what else is the lesson I could learn here? And what else might be the lesson that I'm meant to learn?' Because this problem has been sent to you to help you. This power loves you and wants you to be successful. And so this power is structured this intricate lesson for you, so that you can learn it, and if you learn it, it's almost like a trophy; you can take it and go to the next level. It's almost like an examination certificate that you pass; you can now graduate to an ever bigger set of problems and crises. (Laughter) But you cannot move ahead. People in life move up to the degree to which they solve the problems at their level. But you only solve problems by looking for the solution and looking for the lesson in each problem. My friend, Dr. - Norman Vincent Peel, used to say 'When God wants to send you a gift, he wraps it up in a problem.' And the bigger the gift that God wants to send you, the bigger the problem he wraps it up in. Now, I know many of you feel like its Christmas morning at your house. But every single problem you have contains a gift. And if you're looking for the gift, your dimmer switch goes on full. If you're looking for the gift, you're more creative and positive. If you're looking for the gift, you're more optimistic; you feel more in control. If you're looking for the gift, you have more energy, you feel better about yourself. You feel powerful. Are you with me so far? Now, they sound like mind tricks, but these are the things that have been discovered throughout all of human history as being the key ways of thinking of the most successful and happy people. And at certain points, you'll reach a point where you are, by habit, a positive, constructive, optimistic person; you still have reversals but you'll just bounce back from those reversals. And leadership - my friend Colin Powell; I worked with him many times, said, 'Leadership is the ability to solve problems. Success is the ability to solve problems. And the way we solve problems is we search for the solution and we look within each one for the valuable lesson. And my promise is, you'll always find it. I have four children, okay. I was, like a philosopher said, 'Before I had any children, I had four philosophies about raising children, and now I have four children and no philosophies.' (Laughter)
And I learned something from my family, and my parents were critical, destructive, not great parents; had no experience, alright. Plus they went through the Depression, plus World War 2, plus my mother was raised in the Roman Catholic Church; and so I say 'I come by my feelings of guilt and unworthiness honestly.' (Laughter) And so, however and I used to complain about that. I remember with a young woman I was going out with some years ago, and I just started complaining about my father; 'Wahh, wahh, wahh, wahh,' which we all do; and she said, 'Brian,' she said; 'Stop for a second. Are you happy to be alive?' I said, 'Yes.' 'Are you happy to be the person you are?' I said, 'Yes.' Then she said, 'Shut up.' (Laughter) 'Because at least you're parents got you here and gave you a ticket to [unclear 2:46], okay? They gave you an opportunity to be the person you are, so don't complain about them anymore; I don't want to hear it.' And I never did. That was the end of it. I said, 'Well, yeah, they got me here. They dropped me off here, and I'm happy to be here. They may have screwed up on everything else but they did that alright.' So I made a decision, though; but the great thing for my kids - when my kids came along, I said, 'By gum, my kids are not going to be destructively criticised, they are not going to be physically punished, they are not going to be made to feel like they're bad kids, I'm not going to shout at them and tell them how terrible they are; I'm not going to do any of the things that my parents did to me.' So what I did is, I did a reverse. And I was conscious - and my wife and I are very, very in tune to this our kids have never been criticized and never been punished; physically punished, and you know what? Our kids are great kids. They are stand up kids; they are confident, they are positive, they are happy, I mean, they are just wonderful children. And whenever they have a problem, my mother was one of those gunnysuckers. You'd made a mistake when you were 7, she would still rub it in your face like a piece of poop when you were 17. (Laughter) (Laughter) And so, how I - and I used to complain about that. I remember with a young woman I was going out with some years ago, and I just started complaining about my father; 'Wahh, wahh, wahh, wahh,' which we all do; and she said, 'Brian,' she said; 'Stop for a second. Are you
happy to be alive?' I said, 'Yes.' 'Are you happy to be the person you are?' I said, 'Yes.' Then she said, 'Shut up.' (Laughter) 'Because at least you're parents got you here and gave you a ticket to [unclear 2:46], okay? They gave you an opportunity to be the person you are, so don't complain about them anymore; I don't want to hear it.' And I never did. That was the end of it. I said, 'Well, yeah, they got me here. They dropped me off here, and I'm happy to be here. They may have screwed up on everything else but they did that alright.' So I made a decision, though; but the great thing for my kids - when my kids came along, I said, 'By gum, my kids are not going to be destructively criticised, they are not going to be physically punished, they are not going to be made to feel like they're bad kids, I'm not going to shout at them and tell them how terrible they are; I'm not going to do any of the things that my parents did to me.' So what I did is, I did a reverse. And I was conscious and my wife and I are very, very in tune to this our kids have never been criticized and never been punished; physically punished, and you know what? Our kids are great kids. They are stand up kids; they are confident, they are positive, they are happy, I mean, they are just wonderful children. And whenever they have a problem, my mother was one of those gunnysuckers. You'd made a mistake when you were 7, she would still rub it in your face like a piece of poop when you were 17. (Laughter) You know what I'm talking about? We all had parents like that. Well - so what I would do, is, my kids make a mistake; they get into trouble with the law, they get in trouble at school, something like that. I'd bring them in, I'd sit them down and I would say, 'Alright, what happened?' And they tell me what happened. I say, 'Wow, well geez.' But I got into a lot of stuff when I was young. By the way, if you have good kids, good kids get into stuff. Don't be so prissy. Good kids get into stuff. Crummy kids sit at home and look at a stick, okay? (Laughter) Great kids get into stuff. Because why? Because they've got energy, they've got ideas. They get into stuff and they make mistakes. Human beings make mistake. You and I are adults and we make mistakes every day. They're kids, they have no experience, they make mistakes. So when my kids make a mistake I say,' Alright, alright, I did the same sort of things. Alright. What did you learn? What did you learn from this?' First of
all I say, 'Do you accept responsibility?' 'Yes I am responsible.' 'What did you learn?' And they say, 'Well, I learned about this, and I learned that, and I learned this and I learned that.' And I said, 'That's great.' So what we do is we take the problem or challenge they have, we put it in the middle of the desk, and we talk about it as though it happened to someone else. And we say,' Well, what should we do now? What are you going to do, what's your next step?' and so on. And we just talk about it like it's just a neutral thing. And we talk - and my kids come up with great solutions; what they’re going to do, what they're not going to do next time, and so on. I said, 'Boy, that sounds pretty smart. You might want to think about this as well,' and I maybe put in a little bit, and so on. My son's walk away, my daughters walk away, and they don't feel guilty and they don't feel their parents don't love them or anything else; they feel their problems are normal. It rains, you have problems, you make mistakes, life goes on. Right? And that's what I do with my staff as well. You had a problem, I say, 'Okay, well, everybody does the best they can. What do we do next time to make sure this doesn't happen?' And here's one of the most wonderful expressions you can use for people that you work with for the rest of your life; it's the expression 'next time.' Alright? The rule is, never beat up somebody for something that is already happened that can't be changed. Never criticise a person for something they can't do anything about; they can't change. A person comes in: 'You're late.' They can't go out and come in early. You know? You smashed up the car? I come home, my wife has smashed up my car. She's - it's a Mercedes, new Mercedes. (Mimics crying). 'It doesn't bother me, doesn't bother me.' Anyway, she got into the car, she was in a hurry, and one of my kids got into the backseat, left the door open. She backed out of the garage with the door open. (Laughter and groaning) Has anybody ever had this happen? Twice? (Laughter) And I call home - I remember, I called home, and she said, 'Brian, I-I-I'm so sorry, I drove your car, blah blah.' I said, 'Honey, the car can be fixed. Don't worry about it, it's a done issue, it's okay. Cars can be fixed. Forget about it, don't feel bad about it.' Because she's got this whole Catholic stuff too. I said, 'Forget about it.' She said, 'Really?' I said, 'Absolutely. You know, what's done is done. You didn't do it on purpose, did you?' 'No, of course not.' So it's over. People don't do it on purpose. My son - I was away in - I gave my son my car to drive when I went off to England. The second day I was there, I called home and Barbara said, 'Are
you sitting down?' I said, 'Yes.' 'Michael drove your car off the road into a ditch. $8,000 damage. And he feels terrible, he feels absolutely dreadful. He is just so upset, he's walking around like a person sentenced to death, knowing that you're going to call anytime. And he's just terrified.' Well, I call him late at night in England, so it's early in the morning here. So I said, 'Is he there?' She said, 'Yes, he's there.' I said, 'Get him so I can talk to him.' So she went and she called him, 'Michael, your father's on the phone. I know. You come and talk to him. Michael, come here.' I could this - (Laughs). So Michael comes on the phone; he's not a really outspoken guy, he's very cool. And he says, 'Hello.' I said, 'Michael, I understand you wrecked my car.' He said, 'Yes I did.' I said, 'What happened?' He said, 'Well, I lost control going around...' I know what happened. Kids don't understand power; stomp on the gas, car goes. I said, 'So what happened, and where did it happen?' He said, [unclear 7:45]. 'Well, are you okay?' 'I'm okay, I was wearing a seatbelt.' 'What happened to the car?' He said, 'It was about $8,000 damaged, it's wrecked, the whole front.' I said, 'Boy, you must have wrecked it bad.' He said, 'Yeah, oh it's a real wreck. I went right over the edge of the ditch,' and everything else. I said, 'Michael, I want to tell you something. Listen to me.' He said, 'Yes?' I said, 'I'm not mad at you. I'm not mad at you. It's okay. These things happen. Life goes on, it'll be okay. We'll fix the car, life will get back to normal - I'm not mad at you.' He said, 'You're not mad at me?' 'I'm not mad at you.' 'Are you sure?' I said, 'Yes, absolutely. Kids are more important than cars, and I love you, and I'm happy; I'm proud that you're my son.' (Applause) And he said, 'Really?' I said, 'Yes,' I said, 'Now, you have a good day and don't worry about it, we'll get past this and life will go on.' And he said, 'Really?' and he hung up the phone and I spoke to my wife. She said, 'You transformed him. He just transformed he's just happy again. It's like he just had a blessing of some kind.' Well, do that with every member of your family, whenever they make a mistake. Say, 'Hey, you're more important than the mistake, you're more important than the money.' Do it with the members of your staff, do it with the people you work with. Never beat anybody up for making a mistake, because nobody does it on purpose. They've given it their best shot, they did what they thought was the right thing at the time. Right? Now there's a dual value here, right? Number one is, you - frees you; you don't have any anger, no blame, no recrimination, no criticism - it's frees you completely, and it frees them completely. It makes you powerful, it
makes them powerful. It builds loyalty with them, and you, you feel stronger, it makes better relationships. Okay, so from now on, whenever somebody has a problem, say ,'Well, next time this occurs, why don't you have both hands on the wheel, you know?' There's always next time. Okay, well that brings us to some the most successful principles that we have - what have we got here? Geez, I've got about 15 minutes; I want to just cover two or three critical things with regard to business, that are not going to steal anybody's thunder. What I've learned in business is that there's a series of C's that are key to your success in business. And 'C' number one is the C of clarity. And here's the interesting thing; the more clear you are about who you are and what you want, the more positive and optimistic and focused you are. The more energy you have, the more powerful you feel. And you heard Jay's opening comments; one of the most important things you think about is your vision for your business. What would you want your business to look like sometime in the future? The biggest mistake we make is we become preoccupied with operating our business on a day-to-day basis, and we lose sight of the vision; we're climbing the mountain but we're looking at where we're placing each foot, rather than keeping an eye every so often up on the top of the mountain where we're going. So what is your vision? And the way you do this, is you always idealize. And an idealization; what you do is you ask yourself, 'If my business was perfect in every way, what would it look like? If my future home was perfect, my health was perfect, my finances were perfect?' One of the most important things you want to do in business is say, 'If my reputation amongst my customers was perfect in every way, how would people talk about my business?' That's your vision. They want to talk about your business like you have a wonderful business, wonderful people, fine products, fine services, great back up, tremendous responsiveness, a joy to work with. You see, if you will focus on making your business something that people talk about in the highest of terms, you'll be amazed. Your customers will sell for you, your customers will tell other people to come. And the key to success in business is for your customers to be selling for you. For your customers to become your advocates. So what is your vision? Now, the other thing that you want to be concerned with, is you want to be concerned with your purpose. And Bob Proctor's quote there was talking about the 'Why' of your business. Why are you in business, and 'why' is always defined in terms of how your business serves other people. And the question is this, is - always is, 'What do I do? What does my product or service do? What is the 'does' versus the ‘is?'
Most people in business start off with the 'is.' This is what I sell and this is why it's good, but all successful people eventually start talking about what my product or service does for you. What this seminar does for you, is it gives you a series of absolutely, incredibly valuable tools, that you can use week after week , month after month, year after year, to become millionaires. That's what it does. It's not just a place where you sit and you have workbooks and things like that. That's what it is, but what it does is what counts. In selling, by the way; we talked recently about this; the most important single skill you can develop is the ability to sell. And the ability to sell is a business skill. And I want to tell you something, all business skills are learnable. What are all business skills? All business skills are learnable. Now, here's a rule. You're weakest key skill sets the height of your income. That's very important to understand, this. There's a series of skills that you need to do your business; your weakest key skill sets the height of your income. Your weakest key area sets the size of your business. And all business skills are what? They are...learnable. So you can learn any skill that you need to learn to achieve any goal that you want to achieve for yourself. If you want to become a millionaire, you have to stand back and you have to ask yourself this great question. 'What one skill would help me the most? What one skill would help me the most? What one skill would help me the most?' And throughout this conference, by the way, you keep asking yourself, 'If I was really good at what one key skill, which one skill would help me the most?' And whatever that skill is, set it as a goal and make a plan, and work on it every day. Have you ever said, 'Well, I'm not very good at copywriting.' Well, copywriting is a learnable skill; it's a business skill. By the way, can anybody here drive a car? Just a question here. (Audience responds] That's a rhetorical question, but do you know what it takes to drive a car? First of all, it take a series of lessons, and then you have to memorize a hundred different codes, you have to read all of the drivers manual, you have to take a test under controlled circumstances. You have to learn to coordinate both hands, both feet, eyes, motion, depth, something like 16 different senses, and it's very nerve-wracking, especially for the person teaching you when you're learning. But if you can drive a car with all that's involved in driving a car, it means that you can learn any business skill that you need to become a millionaire. Now, please understand this; the greatest single obstacle to
your success is not in the external world, it lies within our own self-doubts. We doubt that we can master a skill. But all business skills are...? (Audience replies, 'Learnable.') Learnable. And there is no business skill you cannot learn. You can become excellent at writing copy, excellent at selling, excellent at marketing, excellent at negotiating, excellent at interacting with clients, excellent at getting bank loans; you can become excellent at anything that you feel is necessary for you. So keep asking yourself, what one skill, if I was really excellent at it would help me the most? And you know what the answer is? It's almost always 'selling.' Please understand this, that 80% of all of your efforts as an entrepreneur must be focused on selling. They must be focused on selling, selling, selling. You must get up in the morning and you must be thinking all day long about selling more to your clients. Now, I don't mean to take exception with people who say that you should be working on your business rather than in your business, okay? I won't take exception except to say it's the biggest crock of bullshit I ever heard in my whole life. Okay? And I will tell you why this is. It's because the only time you are working on your business - if your business has reached such a large level that you have competent staff at every single level, and you are coordinating as the president, you're senior executives working in the business. Until then, you've got to get in there and work your bleeding you know what off. And the way you work it off is you just sell all day long. I promise you this, I give you what I call my minutes theory. How many people here would like to double their income in the next few months? Okay. I'll give you a way to do it. Double the amount of time you spend face-to-face with prospective customers. Double the amount of minutes each day you spend face-to-face with prospective customers. And I can promise you this, if you're a complete blithering idiot with drool going down the side of your face, and you double the number of minutes you spend face-to-face with people who can buy from you, you will double your income. And I'll give you the flip side of that coin; is there is no other way. There's no other way to grow our business except to create customers. That's what Peter Drucker says, that's what everybody says. Create and keep customers. So what you do is - people think, 'I'll cut costs, and I'll hire the right people, and I'll place the right ads,' and everything else. All of those are helpful, but in the final analysis, the ground troops have to go in and take the ground. The sales people, you, have to go in and make the sales, and get out - there's another thing that many entrepreneurs say. 'Well, I'm not
very good at selling so I'll hire some good sales people.' Get that out of your mind. The fact of the matter is, learning how to sell is a key skill. You must be good at selling, and selling is a business skill and all business skills are what? They are...learnable. Now, I'm not trying to sell any of my programs, but I have people come to me every single day. This week, I've been speaking all over the country. People come up to me and they tell me literally, life-changing stories about how their bum was dragging in the dust, they were the bottom of their sales force, they were broke, they had a beat-up car, living at home, and they got psychology of selling, or [16:54] selling techniques, or they took another sales training program, and now they're making several hundred thousand dollars a year, they're the top sales person in their organization, they have beautiful homes in beautiful neighbourhoods; they could not sell anything, because they hadn't simply learned how. Now, if I said to you, 'Do you know how to make a soufflé?' No, you don't know how to make a soufflé. If I said to you, 'Look, within 24 hours, if you don't know how to make a soufflé, I'm going to blow your brains out.' Could you learn how to make a soufflé in 24 hours? (Laughter) Audience member 1: In 10 minutes. Brian: In 10 minutes. (Laughter) Well, that's lots of buffer room in it. Now, okay, this is an important question here, because we're talking about motivation. If the motivation is high enough, you can do anything. Remember, you can't get out of here. The motivation is high enough, bang, you can do anything. How would you learn to make a soufflé? What would be the very first thing you do? What's your name? Audience member 1: Les Brian: Les. What's the very first thing you'd do, Les? Les: I'll ask. Brian: Go ask somebody who knows how to make a soufflé. Duhh, duhh. Yeah, wow, that's a deep thought. You know, most people have never done that? Changed my life when I was a young man. Went to the top sales person, 'What are you doing differently from me?' And he told me
and I did it. And if there wasn't somebody around, what would you do is you would go to the first bookstore and you would do what? Get a cookbook, get a recipe, make a soufflé. Maybe you have to experiment, would it work the first time? Maybe not, but you got 24 hours and boy, within 24 hours you're going to be serving a great soufflé. The motivation level is very high. In other words, if you want to accomplish anything, just get the recipe. What do you think this 3 days was for? It's just recipes. This is basically cooking school. What you're doing is you're learning how to prepare fabulous businesses. And with everything that Jay is teaching you, everything the others will teach you, it's just recipes; just ways for you to become better. So clarity is critical, it's really important. What one skill would help you the most, and be absolutely clear about your goals. Be absolutely clear about your goals. I'm going to give you a very simple question, goes back to thinking - becoming what you think about most of the time. What are your three most important goals in life right now? Write them down. Three most important goals in life right now. Write them because you've got 30 seconds. 20 seconds left. Write quickly. If you can't think of anything, write 'money, money, money.' Ten seconds. Five, four, three, two, one, stop. Now, this by the way, is the method you can use for the rest of your life. It's called the quick list method. It's one of the best goal-setting techniques, I think, ever discovered. And what it says is this. If you only have 30 seconds to write down your three most important goals, your answer will be as accurate as if you had 30 minutes, or 3 hours. Because when you're forced to write them down, your subconscious mind works at incredible speed, and your three goals will just go, 'Pop, pop, pop!' to the top of your mind. Now, let me guess. In most cases your three goals are a financial goal, a health goal and a relationship goal. How did we do? (Laughter) And that is the way it should be. Some people wrote, you know, 'Lunch, lunch, lunch.' But the fact of the matter is that those are your three major goals, those are the triangle; is your financial goal, your relationship goal, your health goal, and each one of them feeds the other, and that is a well-balanced life. Now, the only question you ask from now on is the question what? (Some audience replies). How? From now on, you think about those goals and you think about them all day long, and the only question you ask is 'How?' You make lists of different ideas that you can write down, different ways that you can achieve the goal. You ask yourself 'What's holding me back from achieving the goal?' If you have a problem or an obstacle, you say, 'What can I learn
from this that will help me to be more successful in the future?' But you keep your mind on those three goals, and from now on, you discipline yourself for the rest of your career, to think and talk about what you want, and refuse to think and talk about what you don't want, right? (Audience responds) Now, let me tell you a quick story; I'm sorry my time is up, next time I come I get more time. But let me tell you a quick story. Two little boys, Johnny and Jimmy. Johnny is an optimist. He's happy, he's cheerful, he laughs all the time, he tells jokes, he's a parents' delight. You can hear him singing throughout the house, his parents are delighted. But his twin brother Jimmy - 10 years old. Twin brother Jimmy is a pessimist, he's a complete pessimist; he's always complaining, always whining, always hurting himself, doesn't like what he's served to eat, he wets the bed when he's 10 years, just a real pain. Obviously, the genes got split up wrong or something. Well, the parents, by the age of 10 realized they have a real problem; something is out of balance with these two twin boys. So they take them to a child psychologist. Psychologist does an analysis of the boys and comes back to the parents and says, ‘Yes, there is a problem here. Johnny is a real optimist, he's off the clock. I mean, he's so positive its unbelievable. He's obviously going to end up as an entrepreneur some day and attend Jay Abraham seminars.' (Laughter) 'Little Jimmy however, is a complete pessimist, it’s just not normal for a boy 10 years old to be so negative. Now Johnny is so optimistic it looks like he'll try anything, he's so optimistic he might even be a danger to himself at a young age. But Jimmy is so pessimistic he could hurt himself as well, so we need to do something to bring them back into balance.' And they said, 'Christmas is coming,' so what they did is they had a little experiment. At Christmas time, everybody went down around the tree and all the presents were for little Jimmy the pessimist. This is kind of going to be a shock therapy, okay? Little Jimmy the pessimist; every single Christmas present, and he opened the presents, but he didn't like the size. And he didn't like the color, and he didn't like the model, and it wasn't what he asked for and it wasn't what his friends had, and it wasn't what he wanted and it wasn't what he put on his Santa Claus list, and he had a complaint about every single problem. And at the end of the present opening, he's sitting there surround by presents and wrapping paper, and he bursts out into tears
and says, 'This is the worst Christmas I ever had in my whole life.' You may have some people like that working for you. Anyway, little Johnny's sitting there smiling, happy for his little brother, and so on, and then finally he says, 'Is there anything for me?' And the parents. they'd almost forgotten, they were just beside themselves. They said, 'Oh yes, there's one present for you , it's out in the garage.' So they took him out to the garage, they open the garage and there, in the double garage is an 8-foot high pile of horse manure. The whole garage is full of horse manure. He says, 'Wow, that looks like horse manure.' They said, 'Yes, that's your Christmas present.' 'Wow, horse manure, wow. I've never seen so much horse manure. Wow.' And he's looking at this and they say,' Yes, that's what you get for Christmas, that's your only present. 'Wow.' And he stands there just looking at the horse manure. And the parents stand there for a while and nothing happens, so the parents go in the house to have breakfast. After about half an hour, they say, 'Johnny, Johnny.' He's not around. And they say, 'Geez, I hope we haven't overdone it here, didn't work with Jimmy, maybe we overdid it.' So they went back out to the garage, open the door and there's Johnny. And he's diving up and down this pile of horse manure. He's burrowing in the horse manure, he's laughing, he's having a fabulous time with his horse manure. And they say, 'Johnny, Johnny, what are you doing?' He says, 'With all this horse manure, there's got to be a pony in here somewhere.' (Laughter and applause) But my final point is this, is that you will have many ups and downs in the course of your business career, but the law of probability says that if you keep looking, there's got to be a pony in there somewhere, right? Thank you very much, God bless you. Thank you. (Applause) Thank you guys, thank you Byron. Thank you John. Thank you. Thank you, and thank you Jay for having me. Jay: Come on, thank you. But I want to ask two other questions, and then we'll rush you off to get your plane. Am I on? Can you hear me okay, Dave? Question one, What do you want - what one other thing - you're gone, I do a great job or somebody else does a great job, they're getting ready to leave for the weekend. (Shouting in background to turn the mike on) I turned it on. No I turned it off.
Brian: There you go. Jay: We are a seamless organization, I apologize for the lighting, you should take them to task. Whip me with a red noodle. What one other thing, more than any other overriding insight that will haunt them favourably for the rest of their life, do you want them to think about the besides what you just concluded with, so that it will just basically drive them just deliriously batty with clarity? What's the one thing you want to be remembered for and you want to transform (unclear 06:07) with the rest of their life? Brian: Just one thing is take action on what you learn, and remember the more actions you take, the more things you try, the greater the probabilities are that you will be successful. And if you're an absolute, complete idiot but you try every single things that makes sense to you, and you try it as fast as you can and you look into it for the lesson, you must be successful. There's the one quality of entrepreneurs coming from every single country in the world, who come here, who achieve great success, is there's intensely action-oriented. So where you hear these things, don't fall into the trap of the weakling and the person who means well, who just says, 'Well, that's a good idea,' and they take it home and they put the book on the shelf; is immediately put at least one idea into action, and then another, and then another, and then another. And I promise you, you will become a millionaire. Jay: So having prejudice is bad but a prejudice toward action is good? Brian: Yes, absolutely. Jay: Okay, that's good. Thank you man, you were great. I owe you big time. Really appreciate it. Brian: Thanks. Jay: Thanks so much. (Applause) Jay: Okay, make sure we get him to the airport. Brian: Thank you guys, thank you. Thank you. Thank you. Jay: We're going to have fun in a minute. We got something really cool getting ready to happen. Are we ready, Rick? Yes, not yet? Okay, we can play a little bit more. I need some energy. Anybody get any ideas out of that? (Music playing and people clapping)
You ready? Not yet? Okay, well I'll catch up. Turn it off a minute, Dave, and I'll catch up with a couple of insights. Somebody come up here and clean this little thing while I'm talking for a minute, please, or some papers here. Turn it off now. Okay, a couple of points while we're waiting. We're getting ready to interview Fran Tarkenton because he's got to catch a plane, he was going to be available in a different mode, but he's got to catch a plane and we're lucky he's going to wait for us, and we're trying to connect right now. They're going to let me know when he's there. The concept of Mastermind Marketing has some rules that you have to know or you'll have an inferior result. To gain optimal benefit, result, transformation for yourself and your business, you've got to do the following. Number one, be committed to open up and contribute and be vulnerable, and tell people what you think, tell people constructively what you think, tell people candidly where you're weak. Number two, you never ever, ever sit at the same tables with the same people more than once. The goal of this is, I brought together 650 very switched-on, very actionoriented, very, very ethically opportunistic, very, very pliable and highly experienced minds from three or four hundred industries, who have been spending on average, 10 or 20 years doing what they're doing. They have experiences, they have perspectives, they have knowledge from all kinds of different vantage points, to share. You will never in your life, unless someone is emulating, innovating or knocking my concept off at the end of the event where it is purposely design to have 650 people contribute, advise, brainstorm, network, mastermind, idea share and collaborate at the highest level. The only possible way you can benefit, is to every break, ever major break come back and sit somewhere different with someone different. If you’re here with a spouse, if you’re here with a partner in business, with your staff, don’t you dare sit with them after this moment because it’s the dumbest thing you can do. You got the rest of your life to talk to them, you got 3 days and 36 hours drain and suck dry. The respective, the experiences, the ideas, the different point of views, the different paradigms, all these people in the room have the opportunity to contribute if you open up and collaborate. So shame on you and everyone you’re deputise if you see anyone sitting at the same place in a room with the same people more than once, call it to my attention, we will have them taken outside castigated, reprimanded, we are going to put a big grade scarlet A on them, they are going to walk around a dunce head, okay. (laughter)
You think I’m kidding? I’m not. No one is going to orchestrate this kind of opportunity for you in your life, but I can only bring you the water, if you don’t want to drink it, it’s shameful but it’s only shame on you. Did we find him? Fran? Fran: Hello, Jay. Jay: Wow! You sound like God, man. How are you? Fran: I'm good, fine thank you; and I'm not sitting next to anyone that I sat with an hour before. (Laughter) Jay: So, here's the deal. You are very gracious, and I want to just pick your mind and just do like a raw shock. I want to give you about five, or six, or ten, really pivotal, entrepreneurially relevant questions after I set you up for three minutes. And then I'd like you to have at it and do your very best in the 30 minutes or so you got. You've got to catch a plane, what, 30 minutes? Fran: Yep, I've got to leave here in about 30 minutes. Jay: We'll do it, and somebody raise your hand and remind me when we're 25 so I don't take advantage. But here's what I'd like to do. First of all, you all know who Fran Tarkenton is, he's basically - he's a world-class, hall of fame quarterback, but what most people don't know is he's an even superior entrepreneur. He's started - I know of 8 but - how many businesses have you started or do you own...? Fran: 15. Jay: 15 businesses, every one of them he's made positively cash flow positive, in 60 or 70 days, he's basically sold them for hundreds of millions of dollars; he's become a very, very, good, dear friend of mine, I adore him, he's been very gracious to share with you perspective. He probably is an even superior entrepreneur than he was world-class quarterback, and he loves entrepreneurialism, he's involved in a number of ventures, and he's here today via a phone to share with you some very, very no nonsense - really, really impactful ideas that are designed to get all the crap out of your system and move you to focus on what really is real and what isn't. So Fran, can I just ask you some questions? Fran: Go to it.
Jay: Okay, first of all, you've seen a lot of entrepreneurs; you know that mine are at a higher level probably, of commitment, achievement. What's the one big mistake, more than any other singular one you think most entrepreneurs slash professionals or [unclear 1:56] oriented, decisionmaking managers are making right now that are keeping them and their business form really achieving its potential? And then, the flip side is, what in the hell should they do to change that immediately? Fran: By being too theoretical. In other words, you've got to take an idea, and that idea has got to make sense. It's got to make sense from a product idea, a service idea; there's got to be a need for the product, a need for the service. And we've got to get real, when we think about that. And then there's got to be priced in a way that's of value there, and then we've got to be able to execute a strategy, and execute is the key word. So many people, not only entrepreneurs, but big business people, are the worst at this. They have all this wonderful planning and all this great theory, and they put up all these charts and all these theorems, and they never get down and wrestle the bear to the ground. You've got to take that idea and wrestle that bear to the ground until you are able to get it flowing and executing, and it doesn't do it just the first time out of the box, or the second time out of the box. When we were playing football, I would design our passing game for our team for most of my career, and I would get with our offence coordinators and we'd get on the board, and we would design the passing game, and it looked so great, and it was just perfect. But sometimes, and many times we'd go out to the field to execute it; we found out that on the board it was good, but we just couldn't get people to execute it properly. And entrepreneurs are the best business people in the world, because if you understand that survival, you've got to understand how to make money. And you've got to get real, you cannot work this with just theories. You've got to take that idea, wrestle it to the ground and execute it. That's why, very seldom, do you ever take an idea that makes sense, that hits all the criteria of common sense, that you really get real with it, and take it out and make it work in the first month or the second month. It takes some times two to six years to really take that really good idea and really learn to execute it and find out what it's going to take to make that thing work, and the term I use is wrestle that bear to the ground. Steve Ballmer, who's a great friend of mine, who is the CEO of Microsoft, and he's now worth a hundred billion, like Gates; I think he's worth 25 billion. But Bulmer is an operator, Ballmer is a visionary but he wrestles those bears to the ground.
And a couple weeks ago, in the New York Times, there was a tremendous article about Ballmer, and Ballmer's background is, he went to Harvard with Gates, and Gates left school early, and Ballmer was the manager of the football team; he's a big bear of a man. And he's very aggressive. And he says the thing that he likes about business today and the things that he and Gates have done since they've been there in 1980 and '81, is they take an idea and they just smash that idea down and mash it down, and mash it down, until they see whether it's going to work or not. In other words, it's kind of like Dr. Phil says, Jay, on television; you've got to get real. You really got to get real with your business and make that thing execute, and when entrepreneurs do that, and we're much better at it that big business guys, but the ones of us that don't do it well are the ones that have the most problems getting something off the ground and working. Jay: That's good. I'm going to change the game. You did an interview with me a couple of years ago, and I've distributed countless copies, and people said it really changed their life. You gave them a strategy about making people's lives better off because you were in it. Now, I’m going to challenge you and put you on the spot to do a little stream of consciousness on that, because it dovetails into some belief systems that I'm going to lay foundations of in about an hour. You want to talk about that? Fran: Oh yeah. I really - you know, business and life cannot be just about me. It cannot be about my greed and my efforts, that I just want everything to work for me. Because the essence of life, the reason we were put here is to make things better for other people. Be it our spouses, our children, our grandchildren, our friends, and even our enemies. Even our enemies. And when we can have that presence about us, our life could be more productive. And I think that transfers right into business, because the essence of business is this. I've got to have a product or a service that truly makes somebody else's life better, or makes their business better. And when I have that business - that product or service that does that, then I’ve got a legitimate chance to make it work, and I've got to make sure that when that customer buys my product or service with their money, that I am going to - you've heard this so many times but it's so true - it's going to be - the reality is better than the promise. The reality of the product and how it works. The reality of the service and how it works, is better than the promise. Because we do have a cynical, jaded world out there, and that we do not believe most advertising messages. We do not believe most speeches that we hear. We do not believe the promises because we've been
disappointed. I worked at the Coca-Cola Company - was on the Coca-Cola Company Board for - Coca-Cola Enterprises Board for 12 years. Started my business grad with Coca-Cola Company, a great marketing company. But they will tell you, in all their research, that 90 plus percent of all the advertising that goes across the airwaves, and on the billboards, people don't believe. And that's why when we can go and our message is clear that we're here to provide, our product and our service will make your life or your business better, and when that's delivered, then that causes the greatest advertising of all. And that's word of mouth advertising. And I believe that that thing that's intrinsic in each one of us, to help other people, has got to be the same philosophy in business. Business is not about trickery. It's about legitimacy, it's about delivering the promise better - the reality of the delivery is better than the promise we gave. Jay: Yeah, I'm going to now ask you a different question. You've got the great dual advantage of hanging out with huge corporate icons and tens of thousands of very, very passionate entrepreneurs. What do you think the differences are, what do you think each - what do you think entrepreneurs could take from big corporations that they need to master right now? Fran: Well, the best entrepreneurs are the ones who know what they don't know. See, sometimes we get intimidated by the Harvard Business Schools, and the Stanford Business Schools, and the people that have high-falutin' degrees and the chemical engineers, and the lawyers, and the accountants. We think, 'Well, somehow I don't have all that background.' Well, unfortunately, my son just finished Harvard Business School a few years ago. He went to undergraduate school at Princeton, and I spent some time up there with him. And they taught them all about pie charts and all about case studies and so forth. And he can make a beautiful presentation. A Power Point presentation. But the one thing that they didn't teach at Harvard Business School; and I dare say they don't teach at any business school across this country, is how to make money. How to make money. And you go to those schools also, and the people that come out of there come out to be consultants, or they come out to be investment bankers. None of them come out to be in charge of sales, in charge of making something happen. And I don't care what we're in, service business or product business, nothing happens until the sale is made; and yet in our most advanced schools, we don't teach that. We don't - that's kind of a lower case deal.
And what I do believe though, that the big companies do have and acknowledge somewhat is that that chairman or president of a big company does have access to people that have great knowledge; the specialized knowledge. That CEO really understands that he doesn't - he's not a lawyer, he's not necessarily a financial person, he's not necessarily a marketing person, or not necessarily a technology person; but they have access to those people that have experience and different disciplines of business. And I think the entrepreneurs who really do; and I do; understand what we don't know as well as what we do know, but know; and here's what genius is - an entrepreneur; is know that we don't know, and know where to go to get the help. Jay: Great. Fran: The best lawyer, the best accountant, the best tax advice. Now, we may not take that advice. But we make a decision based on good knowledge of people who have great experience in those disciplines. Jay: Great. Let me now ask you another question. You're - you impress me; we've had a relationship now for, I don't know, a reasonable long time... Fran: Long time. Jay: You've been a good friend and I’ve watched you continuously evolve. What do you think are the greatest secrets and the greatest philosophical strategies that an entrepreneur can have about continued evolution? It's like grow or die. What are your thoughts for them, because you're always interpreting something, you observe; you're lucky, you get to talk to people, you read, you navigate at very high levels, you take the information, you internalize it, you extrapolate it, you reconstruct it, you come up with very, very actionable, very, very, very foundational things. Take you, translate it and talk it down and give a recommendation to all these 650 people here, who are eager to figure out how they can be more - they don't know they're eager but they're going to be by the time they leave - eager to be more, let's say, more committed to constant evolving change, improvement, innovation, etc. You do that all the time, and I'm always amazed when we talk because you'll go into the latest insight, the interpretation, the action, how you layer it onto your previous beliefs, how you may jettison something else. Take that and sort of shake it up and come back with a comment. Fran: Change for change sake is stupid. Speed for speed's sake is stupid. I do this. I am thinking my business all the time. I dream my businesses all
the time. I look at data every morning. I've got a whole list of things that I want to measure that happened the day before, and I look at that data and I make sure it's accurate data so that I can get a real picture of what we're doing. That drives me to think about things that may be working, or things that are not working, trends up or down; and it doesn't bother me when I’m doing things that are not working. It bothers me when I don't recognize they're not working, and I want to BS myself to say, 'Oh, that's going to work in time.' I want to look at the reality of the numbers, the reality of the strategies that we're working, and then that fuels ideas. Now, that's not enough. When it fuels the ideas, I never, Jay, never, never, never, never, do I make a decision without getting massive input. Massive input. Jay: Expand on that, because my next question was going to be on your concept of due diligence, because it's very powerful when we talk about how you look, evaluate, examine, and really reflect on an opportunity, a decision. So just give us a few minutes on that. Fran: Alright, I'll just say, I've got a core of ten people in my office, and they're just - these are just good working people. I've got a couple that are good financially, I’ve got a couple of technology people, and just some other base people. I involve everyone of them, and I get their input. I'm thinking about this. 'This is not work, but I'm thinking about doing this, this, and this; and this seems to make sense to me, but tell me why it doesn't make sense to you, tell me why it's a crazy idea.' I set it up so they can tell me and be free to tell me, that I want them to tell me, why the idea's no good. And so many times we set up as bosses and leaders, 'Here's my idea; I want you just to rubber-stamp it for me and tell me how smart I am.' I don't want that, I want my people - I don't need them to tell it's a good idea, I want them to tell me all the things that are wrong with this, all the flaws it has, all the flawed thinking, all the flawed strategy; and once I get all those things [unclear 1:02], then I may be calling anybody, including yourself, including other people that I reach out to, and I will talk to them and run my idea and find out where my flaws are in the thinking. So therefore, when I do - if I do then decide to execute some part of the idea or the entire idea, I really have a pretty good idea of what the negatives are, where the problems are, and hopefully address them beforehand, but will recognize them more quickly because I can anticipate them. In football, we didn't have a hundred pass plays or a hundred running plays. We had five pass plays and five running plays that we could run against 30 different defences. But we knew every little nuance of that, we
knew no matter what they put up, no matter what kind of blitz or what kind of coverage or what kind of - we had bought it through beforehand so when it happened, we could react to it. So when I go to execute, I want to have all this input from people, other minds; they don't have to be brilliant minds, it's just other people's viewpoints and thinking to find out what it is that my problems are. [Unclear 2:19] they seize a flaw, so I can anticipate it, so when I go forward with it and something happens, I can react quicker. Does that make sense? Jay: It's great. And also, he does incredibly - Fran tries lots of things. I'm going to teach you not to shoot for the fences on risk but to be willing to take all kinds of wonderful, wonderful experimentations, but Fran does enormous due diligence before he makes a commitment, to make sure the facts he presented are correct, he understands it thoroughly, and he's pursuing it with the right knowledge in place. Let me switch again... Fran: Let me go one step further there, too, about partnerships. I have many people that I want to partner with, and some people that want to partner with me. But before I go to sell an idea to somebody, to enlist their support, to enlist their partnership, I want to be sure in my heart of hearts, my mind of minds, that that partnership that I'm asking for will enhance them at least as much as me, if not more. That it's a partnership that if I was the on the other end, would be one that just makes all the sense in the world. Because if I've got to sell an idea to that partnership, and I sell it hard, and it doesn't work out for them, then I've wasted all my time, all my - I could be doing something else; and it'll never work for the other party. We cannot be selfish, and say, 'Well, this is what I want. It may not be the best for them, but I'm going to go pursue it anyway. Jay: It's great, and everyone knows you from being on TV, three times Superbowl, NFL Hall of Fame, but I'd like you to take your business career and think about the three or four defining elements that you've learned from the best influences you've either met, been mentored by, read; and then try to - if you would be such a gracious person as to try to translate those and give those three or four or five lessons to us, that would be great. And then I have two more questions and then you can go and catch your flight, and I'm very appreciative. Fran: First of all, the most intellectual - supposedly intellectually smart people are not the most help. And I will say it this way. I'm not sure what smart is. Smart is somebody figuring out how to make money with good, honourable products, and get them to market. You know, AOL - let's look at Time-Warner. One of the great - maybe the greatest media company in the world, been around a hundred years. They had all the smart
investment bankers, all the smart lawyers, acquisition lawyers. They had all the smart accountants. Their board was made up of other chief executive bosses of all the old-boy networks, of the big companies, and all the degrees. Two years ago, they just didn't merge with AOL, they were bought by AOL. AOL had the power. They made as dumb a decision as ever has been made, with all of these smart - so-called smart theoretical people. And I believe that the most important assets I have as an entrepreneur is what I just said a minute ago. I know what I don't know. I don't have all the answers. I don't have all the experiences. I have a lot, but I don't have them all. And I have got to reach out to people that are doing it, people who are into the get real stage. And the people that are doing it are entrepreneurs. Last night, I was having dinner with one of those entrepreneurs; he's 62 years old, his name is Vernon Brinson. And he is one of the most successful automobile dealers an American has been for 40 years. Simple guy. Poor, dirt-poor, University of Georgia, third-string catcher, about 5 foot 5, they called him Peewee in college [unclear 6:32]. And what he learned, he learned what he didn't know, and he reached out for help, and he's a classic entrepreneur, but he learned how to make money. He knew that he had to have a marketing plan that made sense, he had to have a financial plan that made sense, that made money. And I never have believed, as you know, the greatest assets I've had; is that I believe that I've got to use my money, my money; and I didn't have much money when I started all this stuff out; to go and build something. If it's my money, and I'm risking my money, I'll go out and make it work quicker, I'll get the cash flow faster, and I'll understand, as an entrepreneur, that the life of the business is cash-flow. And I want to get the cash-flow really quick. I'll start smaller, I won't go out and try to conquer the world, I don't try to go out and do the great - a big customer, or do the elephant deal. I'm going to take small steps. I want to go out and see how it works, I want to test it and test it, and test it, and while I'm doing this, I'm going to spend my cash very, very wisely, and I'm going to get myself the cash-flow very, very quickly, because my mortgage depends on my cash flow. My car payment depends on my cash-flow. My children's education depends on my cash-flow, and when that's the case, I find myself being more careful with the spending of that cash. Jay: Good. Gimme this; you read and you've influenced by books and people. What one book or source or person or magazine do you think every entrepreneur in this room should be mindfully attentive to on a
regular basis, or at least be aware of the work of, or the teachings of; and why? Fran: Oh boy, I don't think it's that simple, Jay. Jay: Okay, then tell me.... Fran: I don't think it's that simple. I think an entrepreneur has got to be like the hunter in the woods. You've got to smell the moment. You've got to have your eyes open. You've got to be like an animal out in the woods surviving. And I'm getting on my plane this afternoon to go to a family reunion for the Tarkenton family in Northern Virginia. It's the first one we've ever had, and I'm going to get on that plane and I'm going to converse with my kids, I'm going to read various business magazines, and I'll pick up three or four at the Big Space operation; I'm going to be with a lot of people tonight, and I'm going to go find interesting people to talk to, but I'm going to get them to tell me about their life, going to get them to tell me what they're about, how they work and how they make it and how they - I've just got my - I think you've got to have your antennas up in every environment we're in. And what that does is it creates a system internally that makes you so much more aware of everything around you, all the things that are going on. And I don't think I can point to a person or a book, or a magazine, to do that. I think you've got to do it all. Jay: That's good. And that was a trick question, because I was setting you up for that answer, and you gave. No I'm serious; he was, because I knew his belief system. Last two questions. I don't - and you know me; I'm not very avid - sports oriented, and probably half this room isn't, many of the women; there's a lot of women here. What one insight would you give everybody that they could take a huge page or lesson from learning that sports demonstrates, teaches and is a metaphor for that entrepreneurs don't always grasp? Then I have one final question. Fran: Well, first of all, I'm happy you've got a lot of women there. Over half of the people in my office - over half of my executives are women. Women are better business people than men. (Applause) Because they have greater sensitivity, a greater feeling, and when women get really involved; when those women can get in business, like that women can get involved in raising a family. When they can get that way, then a women's power in business is just beyond, beyond. And I'm happy that women are in that room this morning, because I think it's a very, very important part of the growth of business in this question. Now, what's your other question there about the sports metaphor?
Jay: No, it's good. I said, I've got all these little boys here who are jocks. Christie, who you know, is a jock. I'm not, I’m an intellectual, and yet I’ve learned so much by slowing down and seeing what I think the correlation, the metaphor, the lesson is sports - I think everybody should slow down and see what sports teaches you about life, and I'm sure it's had an incredible, let's say, foundational key to you. But I'd like to have a summary of what you think everybody, whether you're sports oriented or not, can learn about, that sport's teaches you about success in business. Fran: Alright, that's a fair question, and I'll tell you my feeling of that. I played competitive sports since I was a 13 year old freshman at Athens High School, in Athens, Georgia. Played varsity baseball, football and basketball, four years in each sport. Went on to college and played four years of college football, and 18 years in the National Football League. And sports happens quick. Football game's over in 60 minutes. Nine innings of a baseball game. It happens quick, and you almost live from moment to moment. If you win; 'Oh man, I got the answer. My thinking is right and my strategy is right, my execution is right. I'm on top of the world, it was a clear winner and a clear loser, and we're the clear winner!' And you get to the point where you really are impressed with yourself. You really say, 'I've got the answer.' How many times that happens to a sports person now is unbelievable. And when your team is having success and you're on a roll, and you won five and six and seven and eight games, you're sure that you have the answer. And every time you get there, you hit a stone wall. I mean, you hit a wall that you just - your whole world crumbles. Your whole world crumbles and all your belief system of all your strategy and all your thinking, is just - in 60 minutes time, that other team has driven you into the ground. And you go away from that with great depression, and great anxiety. 'What's wrong with me? Why wasn't I able...' and so forth. And so what you do, you get a balance. You realize, it really is never as good as you think it is, and really isn't as bad as you think it is. And what you have to understand, that it's an ongoing evolutionary process. You never have the answer. You've got to continue your antennas up. You've got to continue scratching and digging, and wrestling that bear to the ground to find better ways to do it. Even when you think it's going good. You know the old thing, 'If it ain't broke, don't fix it?' Oh, bad statement. If it ain't broke, it's going to be broke soon. It's going to be broke soon, and you've got to go and figure it out beforehand. And this is the same way; we get going in business, we have a strategy that's working, and we're making a little money, and we say, 'Boy, I finally
captured it,' right? And then, wham, it goes away. It happens to big companies; IBM came out with mainframes, of course. Dominated the world, owned the world. Got very greedy, very selfish, and hired the best people in the world, the smartest people in the world. And guess what? They almost lost their company in the late 1980's and the early 1990's, because they missed the client server world. They really had a chance to buy Microsoft in 1986, when Microsoft was doing $60 million a year, and they refused. They were going to crush Gates, and crush Ballmer. And they fired their Chairman; unheard of. They fired their Chief Technical Officer, they hired Lou Gertsner. And I happen to know; Lou went in and they said, 'What's your vision for IBM?' He said, 'Vision? If we change the course of what we're doing, we'll be out of business in a year.' If that can happen to big business, obviously it can happen to our entrepreneurships, and our business and our products. So therefore, our antennas have got to be up. If it's working today, then you've got to figure out how to make it work better. How to improve your service, how to improve your product, how to expand your marketing, how to expand your delivery system, how to get more customers, how to form partnerships that are real partnerships, not just phony partnerships. How we can improve the whole process, because somebody - the environment's going to change, the world's going to change, new products, new services come in, and it will impact our business. And so therefore, the lesson in football happening in about 60 minutes of a game, and I'm not sure that they lesson takes that much longer in the world of all business and entrepreneurship, and that's why we cannot ever be satisfied and content with where we are. We can never be satisfied and content with our knowledge system. Our knowledge system has to enlarge, and we have to be sure to dig down to the reality, not just the dream of what we want it to be, because we get caught up in what we want things to be, and we lose what they really are. Jay: That's great, okay. I'm going to amend that. I'm going to put two questions together, and they're different, but because I want to, then you know that's finality and you can get packed and get on your plane. The first question is, you've been a friend of mine for a long time, you've gotten to experience me and my intellectual clarity. You've seen me when I was attention deficit, you've been to one of our programs, you've talked to people to come to it. I want - this is day 1, this is hour three. I got probably 12 to 16 hours today, and the same for three more days.
Our goal is to first of all, today, teach these people how to see how much more is possible from the opportunity, from the effort, from the commitment, from the people, from the capital, from the relationships, from the distribution channel. Then tomorrow to teach then to think strategically, not tactically. Then after we do that, to get them to raise themselves to a higher level of eminence and distinction. Then to get them to deploy a strategy and put it all together. Knowing what you know about the good, the bad and the bizarre about me, what would you recommend they do, or what one thought would you tell them so they can get the most? Not from me, but from the experience. And then the last thing after that, presume that we had Linda captive, we kidnapped her and we wouldn't ransom her for any amount of money; the only way you could get her back was to give one great actionable insight that everyone in this room could put into action immediately, and it would make a meaningful impact in their business. What would it be and then I'll thank you and let you go flying. Fran: Okay. First thing, I think, and to all you people there, I have spent hours and hours and hours brainstorming with Jay over the phone. I'd be at my lake house, he'd be at his beach house, and we'd out no time constraint on our thinking, on our subject matter. I think the opportunity you have there for the next couple of days with Jay, is to open your minds up, don't try to get final about anything you're thinking; let him just fill you up with what can be, and ideas. And he will fill you up with ideas that are valid, but some are going to be really valid for you. And I think that just open your hearts up and open your minds up and just drink without any finality to it. Not trying to make a decision on what's good and what's bad or what can work or what can't work or how you're going to execute whatever you're going to execute. But just drink the whole thing; take good notes while you do that. And out of that, out of that, try to keep the key ideas that are fresh in your mind when you walk away from there that you think are ideas that you can execute, that you could put into place, and that's always the biggest challenge. Now, the reality of life is this: it's not an 80/20 rule anymore. I think it's a 95/5 rule. I think 5% of the people do 95% of the work. 5% of the sales people do 95% of the sales. And I'm going to challenge each one of you there; that it won't be just the drinking of the information that you're going to get there, it's going to be what you do with it. And if we know history, 5% of you will do something with it, and 95% won't. That's a tragic, tragic thing. I would just like to encourage all of you to be part of that 5% and take these great ideas. He is as good a marketing
thinker as I have ever experienced in my life. I think his ideas; once he gets them all out there, and when you look at them in depth, they're really kind of simple ideas. And simplicity is the key to success. Less is better than more. Simplistic information that we can thoroughly understand is better than [unclear 4:19] information that we just cannot put our arms around. And I think that that's the key to it. And the key to getting my wife out of the bars that y'all would hold her in is this. Once you walk away from there, then I would encourage you to take ideas and the things that Jay brings in there, and I would strongly encourage you to take one, two, three, or four of them that're apt to what you're doing, and to doggedly go in and wrestle that idea to the ground, until you can get it to execute properly in the environment that you're in. It’s not about the dream, it's about the reality. Reality makes dreams come true. And that's why that pop psychologist, who I think is pretty good; Dr. Phil; is so popular, because he doesn't always say to people what people want to hear. He gets to the deal of 'Let's get real.' And if we can get real about our business, then we can get real about our life, then we have a much better chance of solving our problems. And until we really get real and the knowledge that we're not as good as we need to be, that my business is not as good as we need to be, it's back to the things in therapy; that you know, a person has an alcohol problem. They cannot solve that problem, or drug problem until they admit, I've got a problem. We've all got - we're not any of us as good as we need to be. Our businesses are not functioning as good as they need to be functioning, until we acknowledge that we have some flaws here, we have some systems that are not working. I need to kind of reinvent myself and reinvent my business and make it a lot of better. To do that, we've got to get into the stage and get real. Now, I hope you can get out of there with those great ideas and then bring them to the 'get real' stage of execution. Jay: That's great. Two things; first of all, thank you from everybody's heart, you're a gracious, gracious man. Number two; I owe you big. Number three; I'm going to be there Thursday and Friday if you tell Jill when, and we'll get together, and if you want to spend a lot of time, find something for my 10 year old to do; if you want to spend a little time, I'll take you to lunch. But I appreciate it, and... Fran: Okay, one other thing, Jay, I just want to get a little lighter note out. I look forward to seeing you Thursday. I happened to be in New York this last week; Tuesday, Wednesday and Thursday, and I happened to spend Tuesday evening, Jay, with this Italian immigrant adult; who's close to my age. And it was interesting, Jay - I only played football with the New York
Giants for five years of my 18; I played 13 out in Minnesota; and I didn't realize, Jay, how big a celebrity I was in New York. Because every bar that me and the Italian immigrant went in; and Linda was with me also, in addition to the Italian male immigrant; would go in, every bar and restaurant we went in, I got a standing ovation. And the Italian immigrant with me was a guy named Rudi Giuliani. (Laughter) But I knew it was for me, at least I told Linda it was. Jay: Ohh, that's great. Fran: But by the way, to share with you people out there, I did have a chance to see Rudy Giuliani and have dinner with him, and then I went to visit his office the next day. But what he's done is an amazing thing; he's brought 40 people from - they work with him in the city of New York, and set up a consulting company called Giuliani Consulting. A friend of mine set it up for him. And he brought out the people that ran the police department, the fire department, the guy that did all the 9/11 emergency; I got together with all of them. It was a great experience, and what they're doing is doing a consulting company; fitting a need here. Here's an entrepreneurial business; fitting a need, building a business model to help countries and cities and companies that are dealing with some catastrophic situations. And there's a lot of those in American business today. The chief of police from Mexico City was in there. And how good was it for him to be in there with the former Chief of Police of the city of New York, who understands the problems of a police force. He has assembled people that have done the work in those particular areas, and he is building a robust business. And Giuliani, with all of his celebrity, has got his feet grounded, and he wrestles that bear to the ground. He gets it down to the nitty-gritty, he gets it down to the 'get real' stage, and he's providing because of that. An unbelievable service to those that he's working with, and you'll hear a lot about Giuliani consulting, but I want to tell all of you that he is as good as you thought he was, when we've seen him in action; 9/11, and before 9/11, and after 9/11, but anyway. God bless all of you, happy holidays to you. Thank you Jay. Jay: Thank you Fran, have a safe journey, have a great reunion, thank you. Fran: Alright. Bye-bye (Applause) Jay: Okay, Shell, where are you? My daughter Michelle, you here? We're going to take a break in about 2 minutes. I’ve got a couple of things to say
which I'll say again, probably. The workbook you were issued is only one fifth of your workbook. You're going to get another one, later today or tomorrow, which is speaker workbook. And on day three, sometime in the afternoon, you're going to get a big tactical one that's got about five or six hundred pages of tactics. Then you're going to get a CD-ROM that's got 39 of the best books in business over the last three years, after reading about 1600, that have be detailed and analyzed by a colleague and partner of mine who's in the room, who will be on the power panels; and you're going to get 502 actual case studies that some people in this room, who are returnees, have created; and others. We're going to try to break about 30 minutes at a time because it's such a large group, but we have to start. I got a lot to do. You should get psyched up. This is the one time in your life I can bring 650 people together from around the world. We're going to go long, we'll probably eat late; lunch will probably be three o'clockish, we're going to try to go to 10:30, 11:30 tonight, and probably every other night. We'll try to keep your energy up, but balance yourself out. And I want to acknowledge a couple of things; I have 17 or so experts here. They're all here for two reasons. One, to contribute at the highest level, and number two, they want to be just like you. In part of the group, collaborating and growing their own enterprises; they're not here to go out [unclear 11:13] their phenomenal theoretical wisdom and then traipse off. A couple of them have time problems; Fran, Brian, Mark, Victor Hansen. But they're coming anyhow, to give to you. They're not coming because they're paid, they're coming because I have been able to contribute to them, and they want to give back to you, and they want to get back from the dynamic and the ideas; really work and collaborate. I want all the speakers or the experts and the power panel, or otherwise, just stand up, so you can get an idea of who they are. So you know these are real people who are here. Andy, William, Marshall, Edwin, Dan, Shree I'm not going to pronounce it, Mike [unclear 11:50], Scott, Chet, Bob. Who else? Anybody else? Troy, in the back. John, Winton; these are all here, they're here to contribute, but I want you to know, this is not like your mother's old seminar. This is so mind-boggling different, but don't try to think through what's she going to do next, and this isn't the model; be thinking [unclear 12:12], be in the moment.
Jay Abraham Mastermind Marketing 3 Jay: Is it on now? Okay, alright. We're supposed to play Rawhide but we didn't, so presume you heard it. Okay, everyone, please, shh. Dave, play something really loud for a minute. Just play something really loud for a minute. Is it on now? Okay, alright. We're supposed to play Rawhide but we didn't, so presume you heard it. Okay, everyone, please, shh. Dave, play something really loud for a minute. Just play something really loud for a minute. Okay, don't play something really loud for a minute; by the time we get it played, it'll be too late. (Music plays) Okay, we're ready to start. Get yourself ready. Okay? Okay. Alright. Okay, now we've got to go, everyone. (Claps hands) My microphone’s supposed to on, is it? Put it up higher. Okay, alright, okay. Where's Les [unclear 1:05]? Les, where are you? We need a expert answer, seek Terry for a minute over there in the corner, she needs to ask you a question. Okay, so now we got to little bit of philosophical grounding. Now I want to start building a bit here, but I've got to explain the process to you, from my vantage point and all the other experts are going to function. Are you all at a different table, yes or no? (Audience replies 'Yes.') Okay, and keep it up because you're on your honor, and if you're with the same person you came with, dumb, dumb, dumb, dumb move. Okay, so how many people received the extremely voluminous, weighty, heady, diverse and hopefully, impactful grounding materials? Okay, keep your hands up if you went through some, most, all of them? Keep your hands up if, in going through them, you got ideas you were able to act on right there and then in your business? Keep your hand up if acting on those ideas actually made you a profit. Stand up if it actually made you a profit. Okay. (Applause) Okay, stop, where are our mikes? There's about 10 of you; very quickly, go to the mikes and spread out. Where are the mikes at? One's there, where's the other one at, Rick? Here, we're going to walk around. I'm going to point to you, you've got one minute or less to tell who you are, the kind of business you're in and the one idea or so that you acted on before you came, and what the impact was, and if there's a dollar measurable element; because I want to make a point in a minute. So, okay, you first. Man 1: My name is Kenneth Embery, I'm from Cleveland, Ohio. The name of my business is Progressive Advertising and Marketing.
Jay: Okay. Man 1: The ideas that I used is the idea of unique selling proposition. Jay: Okay, how did you use it? Man 1: I went to a - I bought a car from a car dealer, from a former football player. Six months later, I hadn't heard from the man, but when I got the car, everybody treated me with great accolades. Six months later, I hadn't heard from him; I went back to him and told him how he could be more unique is his community and make a lot more money. I showed him how, in his advertising, he could make it a fun proposition; showed that when you buy a car from me, all the other accolades you get; and the man's business actually doubled, and I made $25,000. (Applause and cheering) Jay: That's pretty good. That's good, I like that. Okay. So what, stop, quickly. What would you tell everybody that they might learn from the experience you got before you ever came to - that they might do in their own life? Man 1: Well, if you have an idea, think of how it's going to help someone else, write that idea down, write a list of people that you want to go talk to, and go talk to them. Jay: Okay, thanks. I want to move very fast, because I just want to get some perspective. Right here, whoever's on top of this. Somebody in my staff, help move the mike up and down, so it works easier. Man 2: Hi, it's Bob Rothman from England. Jay: How you doing man, long time, no see. Man 2: I know. Jay: Same business? Man 2: Same business, yep. Jay: How's it doing? Man 2: Fantastic. Jay: Okay. Man 2: I'm a professional gambler, I sell horse-racing information, and the thing that...
(Laughter) Jay: You guys - what's the concept, it pays a wage of £50, is that what it is? Man 2: Does it? You've got a good memory. Jay: I've got a great memory. And basically, he only bills you if the bet wins. Man 2: Yep. Anyway, after reading - in fact there's a questionnaire, the very first thing. I was going through it and saying what the customers want, and I thought, 'They'd like to know they're definitely going to win.' And it suddenly occurred to me, I'm not doing a very good risk reversal. And so, we're mailing a list at the moment, that's quite a good response but a very poor conversion, and we had a lot of enquiries, converting at about 3%, whereas our average is about 9. And so I rewrote the mailing piece, did a total risk reversal, and offered the same people money myself, to put on the horse, so they could see how it ran. And it immediately - hello? Jay: Yeah, still there. Man 2: It uplifted it from 2.9 to 9.1%, about... Jay: Translate that to dollars. Man 2: Well it just means that the last three months, we're sitting on about $30,000 in immediate revenue, and that probably translate to about $100,000 over the next year, with the back end from them. Jay: What's the lesson everybody else can learn from you? Man 2: That risk reversal is fantastic and the more you can take for yourself, so much easier it is for your clients. Jay: Good point, Bob, thank you. Man 2: Thank you. (Applause) Jay: Good having you back. Man 3: Rick Lewis, resourcing marketing. Resource marketing is essentially mortgage marketing for a mortgage company I'm a partner in. What we did was - the problem with mortgages is it tends to be viewed as a transaction or a commodity. We - there's a lot of things you can do with
mortgage if you actually know how to do it, but the clients don't know that necessarily. Sat down with a fellow who had just retired from a CEO position of a Fortune 500 company, showed him to use a mortgage to reduce his outflow of expense from $2200 a month to $862 a month, free up $120,000 in cash (missing audio). ...action, he asked us point blank why you should pay us that kind of money, and we said, 'Well, essentially, what is different about this mortgage from what you've got is that you're making money with it for a change.' I said; 'We're making you how much money over the next five years?' He said, '$340,000.' I said 'Is that worth $16,000 to you?' Jay: And he said... Man 3: He's bought it. Jay: So what's the lesson you would tell everyone here that you learned, and that they should take away from that story? Man 3: How to not become a commodity. Find a way to separate and differentiate your product or service from the 'me-too's' that are out there, by providing significant extra value and educating the client to the perspective where they appreciate what they're receiving. Jay: Good, okay, thank you. I'm going to be very quick, fast and quick. (Applause) [Unclear 00:44] to the ground, wrestle him. Man 4: Marky Anthony, Training Force Success, and we put together a marketing programs using Mastermind as the way to create creativity and get it flowing. I went to a large office manufacturing company; the process of a Mastermind was new and innovative to them, so I told them that we'd do the first month or two completely risk-free, so that the people got into the Mastermind process. In doing that, I got all sorts of breakthrough ideas. They become our long-term client, we're on a contract now. They're giving me referrals also, to other copier companies throughout the country. Jay: Good. Lesson learned and lesson everyone else can apply is? Man 4: Always figure out a way to utilize risk-reversal. If you know that your product is going to really work for your client, walk your talk, put your butt on the line, and the client will feel good about that, and you'll feel real good when you develop a long-term relationship. Jay: and you'll find - when I started doing - I started as a contingency performance advisor; I only got paid if my stuff performed; I didn't win all the time. They never lost because I was the one more at risk than them.
Then if I talked a fee, I would always make sure that was a validating process. When we did the first seminars, we had - there were $15-20,000; we had $5,000 cheques we didn't deposit until half way through the whole thing, like two and a half days into it; you guys are on a risk reversal. First time I did Australia, we had a million dollars in cheques. Anybody from Australia in the first one I ever did sitting at the back of the room? For three days, and the deal was, if we didn't give you - I can't remember what we promised - $10-15,000 minimal yield in just the first two days, they could leave respectfully and get their end cash cheque. Two left; we didn't care. But when you use risk reversal, it forces you to perform at a much higher level of value, performance and comparability. It's just powerful, when you get the 502 case studies on Monday - or did they already get them? They already got them? Okay, when they get them on Monday - I don't know what that is - in there you'll see that of 502 documented, very, very modelable stories, and strategies and examples you can directly and indirectly apply to your business - something like what, Rick, 30% of them were based on variances of risk reversal? I know, I knew that; I was just going to catch him off guard. I was testing him. But they are, you'll see. Which way did I go? I just did you. Your turn. Man 5: Hi Jay, I'm Virgil Walker, I work for a company; Cascade Sealance in Portland. What we do is waterproofing and sealant materials and glazing. We had a large client who, over a very small margin of dollars, decided to switch their business after having a long relationship with us, and we decided to use a risk reversal as a concept. Jay: How'd you apply it? I'm going to hurry everyone, only because I want to make a point. How did you apply it? Man 5: Well, what we offered them was the ability to purchase, essentially, 6 weeks’ worth of material without paying - well, to get 6 weeks’ worth of material without paying for it. And then we managed the inventory on their side... Jay: They were credit worthy right? Man 5: Exactly. Jay: And so nobody else would do that for them? Man 5: That's right. And what it gave us was an opportunity to go back to a client where we thought what we were offering was big customer service that they really enjoyed, when what they really cared about was price, and we identified with the greed that they had...
Jay: And so you got them back and what did... Man 5: Actually, you know, what it's done is it's gotten us in the door. We haven't gotten them back yet, but where price was keeping us out, now offering them this opportunity has brought us back in. Jay: Terms - you were able to counter-program on terms. Man 5: That's right. Jay: So what’s the lesson to everybody? Man 5: I'm going to sound like a skipping record; the lesson is utilize (Audio missing). The initial offer seems if you can quantify the ultimate benefit of retaining this customer, then go big with what your initial offer is because you're going to keep them. Jay: Good, thank you. (Applause) Man 6: Hello, everybody, My name is [unclear 00;23] I'm from Holland. I'm in the web hosting business... Jay: Long drive. Man 6: Yeah. It's about 5,000 miles. I'm in the internet business, hosting websites. We already had some things in place like good headlines, long sale copy, risk reversal, testing everything. But the thing that made us a lot of money is rewarding referrals. So we started an affiliate program,, which is easy to track on the internet, and we have implemented that in about two and half months ago, and it has increased our sales with 600%. Jay: 600%? What does that project out to? Man 6: Well, in dollars that would be like $50,000. Jay: Pretty impressive. What do you think the lesson everybody can take a page from here is? Man 6: The most important lesson is to test everything, do not think that you know what your customer wants, and be generous when you reward somebody for a referral. People get 25% of the first sale, because we recognize a lifetime customer value of it. Jay: Okay, and you'll find as we get into today and tomorrow, that about 93 different referral strategies we've uncovered, most people don't apply one of them, and they range from just people having an eagerness to validate the wisdom of their own choice, to economic incentive, and
everything in between, and we'll go through and grade it depending on the situation. Thank you. Sir? Man 7: Hi, Jay. Kevin Dunellen at Guaranteed Resumes, just outside of Minneapolis, Minnesota. Jay: I wonder what Guaranteed Resumes does, hmm, what can I... Man 7: Preface: I owe you my $300,000 house that I just bought in August, because I built my whole company based on a guarantee; there are no guarantees in resume services until I read a sales letter from you six years ago. I took resume, resume, this, that thing, A-plus, alphabetical, Guaranteed Resumes, boom. Sales have gone up exponentially ever since, six years ago, so I just bought my dream home thanks to you. I owe you... Jay: What do you guarantee people? Man 7: Results for a full year, if your resume doesn't perform for you, I'll rewrite it or refund your money. Jay: And no-one else has got the chutzpah, the balls to do it, do they? Man 7: They have guarantees, but they're buried on page 10 of their website typically, and mine's up front on every page; it's on my business card, everything I do. That's just a preface, this isn't the stuff I did last week, so thanks first of all for my home. In the past two weeks, I raised my rates, I went upscale; raised the rates but I changed the terms, so prices went up 30% but now you can pay on terms. And it's working. I also recommitted myself to consultative sales; I shut up and let the client tell me his or her problems. I've been doing it sporadically, but I retyped my sales script. Jay: You got it - doing it systematically and formally. Man 7: Exactly. Consultative sales and going upmarket, changing the prices and giving them terms can serve, really - that's going to do $10,000 in new business, just over the next year. That doesn't include the referrals. Jay: What's the lesson in those two experiences for everyone in this room? Man 7: You can play with your rates if you also play with your terms; customers are open to that. They'll find the money, in any economy. And second, consultative sales works; there's no one sales trick that works for everyone... Jay: We going to do a huge session on it in a few minutes; I agree, thank you.
Man 7: Yeah. Thank you, Jay. Jay: Thank you. (Applause) Man 8: Hi Jay. Jay: Hello. Man 8: Well, you haven't bought me a house, but you can buy me a car, I think. Jay: Okay. Man 8: Nick Web, Quasar MD. I'm from Italy. We used a headline. We've interviewed some of our international customers to find out what they would like... Jay: What kind of business? Man 8: Medical publishers. We asked our customers what kind of problems they would like our products or our competitors' products to solve for them, or what kind of benefits they would like. Our customers are the international pharmaceutical companies. And they told us they'd like our sales forces to be motivated, we'd like our receiving physicians to be interested in our products. So I manipulated that to write a headline, and we got a new customer the day before I left. He's made an order for $32,000, and he's already paid that and his product will be ready in August. And as a result of that, we've also reduced our production cost on another project for about 6 or $7,000, so we're almost $40,000 up. Jay: So what's the lesson? Man 8: Well, think about what your customers really need, what they want to do with your products, and act upon it. Jay: Good. Thank you. Man 8: Thank you. Jay: By the way, tomorrow, we're going to interview somebody for about 15 minutes, who specializes in helping businesses figure out what their customers or their competitor’s customers, clients, want and how to really create it for them, and open up massive new markets and new distribution channels. So it's a great prelude. Yes? Man 9: Hi Jay.
Jay: Hi. Man 9: My name is Tomaso [unclear 5:16], I'm from Italy. I live in New York for about 4 years now. I work both in the European market and American. I don't have a headline or a title. I have multiple income multiple sort of incomes. And I try to really come here and thank Jay, because he is my ground. He grounds me up in the morning; as soon as I get up, I put the tapes, and 'vroom,' the state of mind goes in there, and I allow myself to really be more focused and not have - I applied the powerful techniques he has, and simplicity. And I've opened up a whole new line of income, not only for me, but also I've created some more job opportunities for other counsellors. Jay: Can you describe one because it's - you'll learn - all of you, by the way, any law or - excuse me - that you (Audio missing). ...It's so wonderful, but I'm about moving everybody to action through very specific reference examples, so for this segment, Strategic Purpose, pick one action that you did, that you can just say, 'Hey, I did this, it did this, and you guys can learn that from it.' Man 9: Okay. I'm a personal trainer, on top of that, so what I did is, I wrote a letter to my advisor, my financial advisor, and I've requested him, 'Can I give a gift from me to your clients?' And I've used that - a good sales [unclear 8:10], but also, just reminding him that there was no price for him, there was no side of him that he had to finance me for anything, it was just a gift. Jay: And what happened? Man 9: Well, we sent out the letters, and I have a database now with 200 clients that I'm sharing with him. It only cost me for the printing and the... Jay: What was the economic impact, how much is that worth? Man 9: $7,000 more a month, of personal training income, which is great. Jay: And what's the lesson that you think everybody here should take from that? Man 9: Sure, it's to really act, to really - you can do all the programming in the world, you can listen to all these tapes, but it really is acting; and I acted. And I... Jay: Great, good, thank you. Appreciate it. Man 9: Thank you. (Applause)
Jay: Point of reference; I'm going to get more and more, as we get deeper and deeper in the three days; interactive. Because that'll the just - I'll explain something and I'll make you guys all explain it, and when you hear somebody interpret what they think the lesson is, that may be totally different than you think it is, or you think it is; that's why I bought 650 people together, to share ideas, perspectives, without; as Fran said; discriminating. Don't worry about it right now, just get the broadest spectrum and then you can sort it out later; we start building your optimal plan on Monday. Thank you so much. Go ahead. Man 10: How you doing Jay? Jay: I'm good. Ma 10: Tom [unclear 1:55], from Inner Systems Technologies. We repair medical equipment, and I use a Host parasite technique. Jay: Now it's called host beneficiary; we printed it wrong. It was host parasite when I first came out, but now it's politically more correct to call in host beneficiary, so use it in the right - even though we incorrectly put it in the book, which is shameful, do it correctly. Man 10: Sorry about that, I'll update the notes. Okay. Host beneficiary. Jay: Host beneficiary, that's right. Man 10: I actually - we developed a cleaning methodology for medical equipment, and I actually went to my competitor since they can't do that, and he gave me his equipment, for a fee, and we are using it quite successfully. Jay: How much money is it worth to you, roughly? Man 10: About $75,000, and we gave our competitor $15,000 of that. Jay: Lesson learned? Man 10: Don't be afraid to go ask. Everybody likes making money. Jay: We're going to talk about the strategy for this, and we're going to give you scripts before the weekend - the long weekend is over. Thank you. (Applause) Man 11: Hi Jay, my name is Patrick Boggs, I'm from EasyTel and we're utilizing the host beneficiary relationship, purely by accident, in that we market a turn-key package of discount telecommunications and internet
services to and for our marketing partners, and whether they're sports franchises, newsletters, or radio personalities, network marketing companies, or whatever. Jay: So give me one application. Man 11: The one application is in the first section of one of your books; the most important thing was - the most valuable thing you have is your customer base. We sit down as a staff, and we started saying, 'What type of assets do we have with our customer base, what can we do?' Jay: Tangible and intangible. Man 11: Exactly. Jay: Okay. Man 11: Well, the first - in the past 30 days, we generated an additional $180,000 a month in found money that we didn't have before. Jay: $180,000, by doing an inventory. Man 11: $180,000. Exactly, by just... Jay: Overlooked assets, hidden opportunity, underperforming activity, undervalued resource; is that right? Man 11: That's absolutely right, and since I - we came out on Thursday morning, and since we've been out, the staff have been working up additional ideas that will probably double or triple that number, within the next 60 days. Jay: Lesson learned, lesson... Man 11: The most valuable asset you have is your customer base, and you've just got to get all of your Mastermind alliance type staff to throw out ideas and when you do that, you're going to get a lot of brain power from people - and a lot of thought processes, from people that you never really counted on before, and you really open up your mind. And this seminar, I think, will continue to grow for us in that respect. Thanks. Jay: Great. We're going to have on Sunday night, Alan? I always - different colleagues and partners and different businesses, and one of them has developed a whole thesis on re-thinking inside the box, and he's got a matrix where he looks at all the opportunities, all the leverage points; taking my stuff and manipulating it. It's really powerful.
Woman 1: Good afternoon, I'm from the Coaching Academy in the UK, and I'd like to say three things very succinctly. First of all, we recently did a marketing mail-out to 23,000 people, and we got a 37% response rate; with a free gift... Jay: What was the opening sentence or headline? Woman 1: I can't actually remember, if you ask Jonathan, Jay, who's sitting over there, he'll be able to tell you. Jay: Okay. Woman 1: And, so that was 37%, it's increased business by, in your terms, $350,000. Secondly, when people rang up, we were mindful that we had to qualify the leads, which I think is extremely important. And thirdly, on this issue of referrals, if you do not ask for referrals, you do not think that you're worth it. Jay: Good. Thank you. Woman 1: Thank you. (Applause) Man 12: My name is Dr. Tom Collins, I'm a dentist in [unclear 5:52], California, and we decided to market to our existing customer base, or my patients. We sent out a postcard that said - had a headline, and we offered a bleaching of their teeth, which is normally $400, for $109, and it's been very successful, but the back-end selling is even more interesting, because... Jay: You never did this before? Man 12: No. No, no. One patient last week came in, and her teeth had gotten whiter, but she wanted them whiter. So I did porcelain bondings on all her anterior teeth, and so the back-end selling was excellent, so... Jay: It was in her best interests for what she wanted. Good. Man 12: That's right, and now she's talking about doing all her teeth. Because she wants them all white like this. Jay: What's the lesson learned? Man 12: The lesson learned is, your customer base is really a trusted and true friend to you, and also back-end selling; if you can give a quality gift to - they said to me, 'Why are you doing this?' I said,' Because you've
been a loyal patient of mine for X amount of years, and it's Christmas, so I'm kind of like giving this away.' And so it's a win-win situation. Jay: Worth it. Good lesson. Did you get - did you put off that person we talked about? Man 12: Yes, absolutely. Jay: Good. Didn't think I remembered, did you? Man 12: (Laughs). Yes. I knew you would. Thanks. Jay: Good. You're welcome. (Applause) Man 13: Hello Jay. My name is Brad Chestnut, I've actually been [unclear 7:25] for quite a few years. I own insurance automation and marketing consultants, and a multitude of different programs through the Prodigy notebook really opened my eyes to some thought process. Jay: Give me one. Man 13: Give you one. The one that made the most money, or the one that...? Jay: No the one that - it doesn't matter. I'd rather have the one that's the most universally interesting. Let's assume, if you're back and you've been a follower of mine for a while, that you made money from it, or you're not stupid. So, he's applying it. So let's take the one that's the most universally impactful to these people. Man 13: I work with insurance agencies exclusively, and what I did, I went to one of our - another company that also works with insurance agencies created a relationship with them. The objective and goal was to work off their customer base. Well, it was a little bit tough situation to try to pull off. I said, 'Well, let me do the marketing piece for you first, on our customer base, so you can benefit from us first.' Loved it. Put the piece together, did a marketing up for them, for our own customers... Jay: So you invested forward for them? Man 13: Did it first for them. Jay: What happened? Man 13: The results were phenomenal; about 80% of people went with him. It was phenomenal.
Jay: And what happened for you? Man 13: First of all, I have a very close relationship with my customers, I've got 100% customer satisfaction, so just me suggesting it comes across very strongly with them. Jay: So the authority and the gesture is very, very favourable received? Man 13: Yeah. Jay: So what's the lesson here to everybody? Man 13: Well, that was the first half of the battle. The second part of the battle; I wanted them... Jay: To do you. Man 13: To do the same thing for me, but I wanted to write the piece. Jay: Of course. Man 13: With him signing the bottom. Jay: Makes sense. Man 13: Which we did, and he also has a very strong relationship with his people. This was put out about a month ago, the lead count on this has come in; it's absolutely phenomenal. I would say we're looking about a 2530% lead hit from the thing. Jay: Wow. Man 13: We have about a 90 day sale cycle, so the numbers are still coming through. Jay: What do you think, conservatively, it'll be worth? Man 13: I'm betting we're going to probably pull about, in gross revenue, somewhere around 150-200,000. Jay: Lesson? Man 13: Work the people who are working your same customers, develop a relationship and - we're not competitors, but we can create a very positive working relationship together to complement each other. Jay: Thank you. (Applause) Pete, we missed each other the other night. I was with [unclear 1:31] getting a massage when you called, then I had a meeting, then I was like, burnt out, but we'll see each other tomorrow, okay?
Man 14: Got it. Jay: How are you? Man 14: Fantastic. Jay: Even better when we get our deal going. Man 14: You got it. Jay: Okay, what's the story here? Man 14: Okay, so we get all these emails from - you'll be getting in September, so we're thinking, 'Geez, what the hell's he going to do to us, beat us into submission here?' And one email after another for the events coming up, and we're thinking, 'Well, geez, why can't we do this ourselves?' And we said, 'Well, we can't, because we've got a lot of products and we can't push all of our efforts into one particular product over a 4 month period.' 'Well, why can't we do it over a month?' 'I don't know, let's try it.' 'Well, maybe we'll lost a lot of email customers.' 'Well, let's try it and let's see if people drop out or not? Jay: And how big is your email list, 40,000? Man 14: Pardon me? Jay: Your email list is 40,000? Man 14: Yeah about 40,000. Jay: Everyone told - every internet expert says 'You're crazy, don't do that, they're too long, they're offensive, they're going to de-subscribe unsubscribe.' Man 14: No, the longer the emails we send out, the more sales that we get. And we will send out - we have one email that's 5,000 words long. Jay: And did it make an economic impact you can extrapolate? Man 14: Well, yeah. What we're just talking about there, instantly and immediately doubled the sales for each campaign for any of our products. And this was for just one segment of our list, the - we made an immediate, in that first two week period, $20,000. That was off of 6,000 names. Jay: Lesson? Man 14: When you see something that's working for someone else, see if you can figure out how to get it to work for you.
Jay: Test it. Man 14: Yeah. Jay: Thank you. Well? Man 15: My name is Will Green, I ran trade associations and the thing that gave me the most value was that big long questionnaire, because it stimulated my thought, so the question asked, 'What was the one thing that stops your - the big resistance for your company?' And we've been trying to develop a healthcare program for seven years. And because of that question, I made a phone call; we developed that healthcare program for everybody, that allows us to open up a new association for - we have a market of about 1 million people, and now we have a market of 4.5 million people. So I don't know what the total value of that is going to be, but if it is representative of what we've done, it's probably worth $20 or $30 million to us. Jay: Lesson? Man 15: Lesson was don't forget to go back and remember the things that you really want, and go after them. Jay: Good, thank you. Woman 2: Hi, my name's Wendy Robins, we have a product called the Tingler, which is a head massager, and we used part of our database to just ask people to refer three friends. People who had bought our product before, liked it; refer three friends to us. We got 1,000 referrals within a few hours, basically. Jay: Did many - any of them buy? Woman 2: Yeah, we're still tracking it just to make sure that we can identify exactly who bought what, but what's really cool about it is we were able to automate the system. So what it means is the autoresponder goes out, and every week it asks them to do something else, do something else, and refer more people. So that's great, because it cost us nothing. Jay: What's the lesson? Woman 2: The other quick thing that we did is we created... Jay: Just one, just one, only because - if you're already at the mike, stay, but nobody else up, because I've got to - this is an exercise - I want a lesson though, I need a lesson, don't leave. Give us a lesson in there.
Woman 2: The lesson is, use your customer database to use referrals, ask them via email; it doesn't cost you anything to refer three friends. It's really easy to just create a quick little form, they'll literally refer people to you. It's phenomenal; you'll use your auto-responder and you'll just keep going, going, going, going. Jay: Good. Thank you. Man 16: Hello Jay, Gill Meyer from Atlanta, Georgia. And one of the lessons that I learned and that actually we're in the process of implementing. What we do is we do financial transaction processing over the Internet. We process cheques electronically; I've already been introduced to Tony, I see you looking over at him. But in any event, one of the things that we've done with this new product is we've brought together the ability for online gaming, casinos who have a major problem getting money into their accounts, and so we were already working with a software vendor who already has a software, and there's a magazine called Gambling Online, and I come to find out the guy lives three blocks from my house. So I got in touch with him, and I said, 'Eric, what I really need you to do is to email your customer base and tell them what we're doing.' He's like, 'Okay, what do I need to do?' And so we put together a relationship, and that email - it may have already gone out, but it'll probably go out next week. Jay: Unless it really is lame, it's going to transform your business. Man 16: Yeah, it's - I can rattle off numbers, but until I see it happen - I'm pretty fired up about it, so... Jay: [unclear] What do you think the lesson is? Man 16: Lesson clearly is - first of all, this is a new business, we've been in some other financial processing businesses, but this one is, find out who's got your customer and go strike a deal with them. Jay: Great point, thanks. Sir? Man 17: Hi, Tom [unclear 6:29], LTA Media. We do - we sell products on the radio, and two years ago the internet thing happened, you know, and we're buying up all the radio time, and it just killed us. We were doing really well on the front-end of everything we were selling, because media was affordable. Then all of a sudden, it went berserk. These people had more money than they knew what to do with; they were buying media for nothing, and driving the price up and it forced us to rethink what is was, how we're going to stay in this game. And after attending one of your seminars, it just blew us away as to what the possibilities were in the back
end. We just didn't have to deal with it before, so we started working the back end and... Jay: What happened? Man 17: I could just tell you, it's ridiculous, it's ridiculous. (Laughter) Well, we basically ended up selling - at the back ends' the most lucrative thing anybody could do; I think, anyway, after doing this. We basically ended up selling in one single product in the back; we just sold over $110 million, brought 32 to the bottom line, but it didn't cost - because you don't have the advertising costs, you don't have - it's ridiculous. Jay: What's the lesson? Man 17: The lesson is, I don't care what you get out of all of the this; if you develop a back end, you just sit there and go to the bank. It's a beautiful thing. (Laughter) Back end of... Jay: You're right, you're exactly right. So, thanks. (Applause) Three points, three points. You are lucky. You are lucky because I am a mellow fellow at this point in my life. You are lucky I am a mellow fellow because I'm going to tell you why I stopped doing the Mastermind Marketing seven years ago. Because I got tired of sending out killer grounding materials to everybody who thought I was trying to use them to deflect the cost of my programs, and instead, didn't get that I wanted to pay for the program for them if they would just study them, implement them, find one or two applicable - not big, but immediate applications, and use it. I got tired of 10 or 15 percent of the people making $5,000, $500,000, millions, and most of the people doing nothing. But I'm a mellow fellow today. I don't have anger - because I used to - did I used to get mad at people? Anybody been to any of my old programs? Who? Raise your hand. Am I a mellow fellow now? I'm not going to castigate you, I'm not going to point out and walk you on stage, and say, 'Why in the hell didn't you do that when I sent it to you three months ago, Fred?' I wouldn't do that to Fred like I used to, right Rick? I wouldn't. But I would say to you this. I didn't spend almost $500 in hard costs to send you stuff that we sell separately for very really $11,000, when I'm in the mood to sell it, which I don't do very much because all I do this for is just for fun, and I'll tell you my reasons in a minute; for you to have heavy, expensive paperweights? I did it because my hope, my belief, my desire, and truthfully, my expectation was that you would read the damn stuff, that you would listen to it; that you'd find an idea, apply it - and everyone would stand and be at that mike. Remember what Brian said? I mean what Fran said about 80/20 now, 95/5?
And what Brian said? I want you guys to be in the 20 or the five, but it's up to you, I can only bring you to water. The stuff I'm teaching you is the byproduct of me spending 25 years, many of those 18 hour days, going through two marriages, losing $35 million to ex-wives and rapscallion, roguish, just terribly infidel oriented partners that didn't turn out to be very good, and learning a lot of very painful lessons, making a lot of observations, studying the good, the bad, the ugly of a billion dollars worth of marketing experiments, to try to discipline, simplify, and compact it into a peremptory, a three-day and a 12 month follow up experience; but I need you to help me, I really do. It's very important. Now, let me tell you what I'm here for, for the next three days. Let me tell you why I'm here to do it. I'm going to cover as much ground as I have and we're going to do it in sequences, because I'm trying to layer experts who have some rigid timelines, and you've got to be flexible, will you? (Audience replies 'Yes.') And you got to understand, this is not a regular seminar, I don't purport to be the likes of, and are good friends of mine; Tony Robbins, or any of the other people; I'm a very - I'm a real entrepreneur and I'd advise you is to try to open up and share with you. Some things we'll do are a little long, a little short; work with us, keep your energy up and we'll get you motivated. So here's what the five or six things I'm trying to do here this weekend for you are. Number one, I am committed to you. And I want each and every one of you to be committed to each other, to redefine and open up your mindset to the kind of possibilities that strategic-based marketing can produce for you. Number two; I want to turn you into a more masterful marketer than anybody else you compete against in your field, sector, industry, locale, depending on - and I want to raise your standards. Because maybe you're local but you should be regional, or maybe you're local and you've got this incredible system and you should be at least licensing or selling it to somebody else. I want to teach you how to master - first of all, recognize, understand, acknowledge, recognize, all your overlooked assets, hidden opportunities, underperforming activities, undervalued relationships, under recognized resources; and learn how to deploy them, how to harness them, how to harvest them, how to deploy them in a systematic, sustaining, compounding basis. I want to - I should know all this - teach you how to use the Internet intelligently. I don't purport to be an Internet expert, but I will tell you, even though I don't turn mine on, I’ve helped about 20 people triple their website presence, and we sold and made - we made $800,000 in the last four months screwing around with one email campaign. You wouldn't be in this room - I mean, I'm pretty proud of the fact that we sold to the better
part of 700 people of $5,000 attendance, and we sold 400 $2,000 tape set, just by our feeble understanding of email, so there's something to be learned; not about how great I am, but what we have discovered that is different. Please turn it off, or leave it outside, because it's just going to drive me crazy. Thank you. Finally, I want to teach you how to get breakthroughs and I'm going to give you breakthroughs. Because I've studied the highest and the most consistent performers in all the sectors, and they are to the company. The individuals and the ones who engineer the maximum quantity, quality and consistency of breakthroughs in, first and foremost, strategy, then marketing, then innovation and then management; and most people don't have a clue what marketing, strategy and innovation are, so I probably should try to define it, shouldn't I Rick? So I'll try to define it. I'm going to defer to a couple of other people. See if I got some notes here. Coincidentally, I brought some. Do I have it? Okay. Most companies - and you'll get to this - by the way, in your workbook there's three or four redundancies. They're there partially as a mistake and partially on purpose. How could that be? Well, we accidentally replicated things and instead of pulling them out, I thought, 'You know, these are so powerful that if you read them two or three or 25 times, and you reiterated them and indelibly imbedded them in the catacombs of your mind, it would be the wonderfullest thing you could do.' So we've kept them there so you'll be forced to read them over and over again, because they are so pivotal. But I'm going to read strategy. I believe 98% of all companies I look at don't have a clue what strategy is. They're totally tactical, they live for the moment, they're only lifestyle-oriented, they are so oblivious. Strategy can mean many things, but I'm going to use a militaristic term that was sent to me by a retired Colonel, who also is a Jay Abraham zealot; and he said - by the way, most people use - sometimes seem to confuse strategy: planning, and tactics: doing. 'Strategy is a science of planning and directing large scale operations. This is distinguished from tactics, which involves skilful methods and arrangements of the forces used to gain an end.' He's an old soldier and he can't resist mentioning these, because he thinks most people don't have a clue. Most people don't have the wildest idea of where they're trying to get to, and why they're trying to get to it, whether the reason they're trying to get there is the right reason, whether the goal they've set for each other the other goal, the thing we had about whether it's even worthy of them; you've got to become more strategic. Marketing, in my mind, and this is a
fragmented explanation, but it's a good one. All marketing is is educating. It's first and foremost educating yourself to know who your best target market is. Who the hungry, starving crowd is. Next, it's educating the starving crowd to see that they have a massive problem that they may never have recognized or verbalized. Three, it's having them see that you have the only viable solution to that problem. And then D; it's getting them to desire the result, the solution, the protection, the benefit, the experience, the entertain - that whatever you're selling, so badly now, not in the future, and only from you; because you clearly are the only one that understands it. That's all marketing is; it's educating people to see that they have a problem or an opportunity, to realize that the problem or opportunity is solvable or reachable, or tappable; that there's only one person, entity in the world who gets it at the level, the enlightened operational, strategic and tactical level, that can solve it for them; and that is you, your company, and that they need it done right now. That's all it is. Rick, was that adequate? Okay. What was the other thing I was going to define? Innovation can be technology but it's not, necessarily. All it is is bringing greater advantage to somebody's life or business, that they value, appreciate and desire. It all integrates together. It can be technology; it can just be basically something as simple as having better terms, or going to them, or - I pay 50% premium because I got a guy that picks up my laundry. We sold easily 50 times more people to this event, because I was able to take twice the risk on you, and didn't mind if you took a year to pay me. That's innovation, I think, when most people can't get 20 people at $1,000 in a room, isn't it? But am I high-tech? No. No, I'm very low-tech, I'm almost non-tech, I'm almost technologically an imbecile. But that doesn’t mean that can't be the most innovative person you know, and I can get someone to implement and execute and deploy whatever kind of technology I need. Man: How about leverage, Jay? Jay: How about leverage? Did you write down my definition? Is it in here? Where's it at? What page is it? Why don't you throw it up here? Man: I don't know if it's in the manual but it's... Jay: Okay, I'm all about leverage; I’m getting ahead of myself but it's okay. Leverage is the ability to make a transaction. An opportunity. An asset. Yield a higher result - upside leverage; I should qualify that. And we're going to explore, we're going to dissect, we're going to analyze and we're going to define, and then we’re going to basically master so many
elements and facets of strategy this weekend, or this long weekend; it's unbelievable. Okay. Man: Force multiplier. Jay: Force multiplier, you've got to learn. I didn't explain to you, but I'm all about working on the geometry of your business. You can't work on the geometry of business if you don't get into a little bit; even if you're a pacifistic individual; I see an Orthodox Jewish gentlemen, and today, for this moment, be a little bit militaristic. Can you do that? Okay, throw Orthodoxic or Rabbinical caution to the wind, okay? Okay, we're going to look at force multiplier because this is going to transform you. This is how, in the middle East last time, they were able to slaughter them so quickly, and this time, if it comes to a war, most probably it will just decimate them because it's the capability that, when added to and employed by a combat force, significantly increases the combat potential of that force, and thus enhances the probability of successful mission. It is the discipline of creating multiple avenues of penetration at the same time. By land, by sea, funnel attacks, [unclear 19:49], there should be some other attack - overhead attack, side attack, missiles; forging ahead to penetrate ahead, advance intelligence, soften the enemy, prepare them for the big one, air attack, stealth attack; it should be in paragraphs so it's easier to read. A proven process of dominating your market in military terms. It's a proven process of dominating and pre-eminently owning the market in commercial entrepreneurial business terms. It all ties together. What it means is, it's going after them from many different vantage points. Military has got this whole integrated approach, and while they hope that the first attack annihilates them, they really expect it to be one of - have you ever hit a piñata? You know how a bunch of different forces finally cracks it, and you don't know - it doesn't matter if you hit it here, it might break here? Well, the force multiplier is hitting at the target from many, many vantage points. There's a concept you've got to learn now, and it's not original to me. It's a guy who wrote a book called Unleashing the Warrior Within. What's his name? Man: Richard Machowicz. Jay: We tried to invite him two times and he was out of town, I think, which was tragic because I'm going to steal his thunder by giving you his concept. He's a former Navy Seal instructor who took the training and translated it to the business community. He's cool. He says all it's about it
three things. Number one; figure out what your primary target is. Number two; what's the primary weapon to knock it down. And number three; what's the most effective way to move it. Very simple. But then he says most people get all cluttered and all kinds of munitions - he says all you want to know right now is what's the most important single target you've got to knock down first so you can move to the next one and the next one and the next one. And he says, you've got to knock it down, you don't just reach it. Knock it down, annihilate, get the mother out of the way - excuse my phrase, but get it out of the way so you can move on to the next thing. Force multiplier goes (Audio missing) powerful weapons as you can mobilize, makes them all cost justify, or strategically cost justify; and we'll get into that later today or tomorrow. And it guarantees you a successful result without discriminating or caring which one it is. Who's on my email list? Who got at lost one email from me about this event? Two emails about this event? Three emails about this event? Ten emails about this event? 20 emails about this event? An offer to be on a conference call, an offer to get a transcript, an offer to get reports, an offer to talk to me personally? Anybody? Well, guess what? Every time we did that - Carl, where are you, are you in the room? A different quantity, an element of you came forward. And week one, maybe it was 10, week two maybe it was 25 more. Did you guys see the audacious, ballsy, seemingly brass, but very sincere and straightforward and heartfelt email I sent last week, that said only contact Carl if you're ready to buy? A hundred people responded to that. A hundred people spent $2,000 because we just kept advancing and penetrating from every vantage point. Does that work? Unequivocally. Does it all work? Hell no. Could I tell you which one works best and which one doesn't? No, and I don't have to. I did research and collaboration for about 6 months on a project that I did, that I didn't go forward with, with one of the pre-eminent multi-variable testing companies in the world probably the pre-eminent, wouldn't you think? And one thing that they learned that I already knew was a lot of things you try singularly, they don't do very much for you, they don't do anything. Left - judging their own vacuum, their own static mind; but you put combinations together, the result is profound. You looked at that. And it can be massive but you can't achieve the incredible payoff if you don't let the force be with you. The force multiplier effect. Okay. So, are you curious why I'm doing this? I mean, if you think I'm doing it for the money; maybe - we spent $500,000 so far to get you here. I spent more on
getting the grounding materials that only 10 or 15% of you so far have even looked at probably, in your hands, than most of you gave us down. We basically have got more little bins and things where we spent 50, or 60 or 100 grand on the first workbooks we're giving you. I'm here for four reasons. Number one; I'm in a great mood and I want to share it, because I did 50 programs when I was mad at everybody. (Laughter) Am I right? Right, I was mad, I was angry, I thought, 'Why man?' Because I came from a background where I had a dozen clients; we made millions of bucks; I made millions of buck from them. If they didn't follow through, I'd jettison them and I didn't tolerate them, and I was so pissed at people who didn't make the most of what they had the opportunity to do, and just sore at a high level, that I would just get mad. And I realized that you need help sort of sequencing, and evolving; and I'm mellower and I'm older, and in a great mood. In the last five or six years, I went through basically a mid-life crisis; I stopped working, I got tired, and I studied all the new changes and all kinds of different things, and I have an enormous amount of things I want very much to share with you; because I don't know that I'm going to do this kind of event ever again, because I frankly am more focused now on working with operating businesses where I get small fees, but pieces of the deal. In order to do that, I have got - I started out being only a contingent marketing expert. All I did - nobody knew who I was, and behind the scenes I had a dozen clients, I've de-facto ran, strategized, directed, ran out of a bedroom in my house - very comfortable bedroom overlooking the ocean, but never went anywhere, made millions of dollars, stopped doing it, because a niche market guru, became somewhat theoretical, went back and learned everything again. I need to redefine to myself everything that made me great, to make me even greater so all of you make more money from the people that I help. Third, is I'm actually hopeful that if I do a great enough job of educating all of you this weekend, you’ll see how much more is possible; but there’s about 20 of you here that are large enough and underperforming at such an embarrassing level, that we're going to be matches made in heaven. I don't know who you are, and you'll find me, or find one of my partners, if I do my job correctly. And then finally, and probably ahead of my own selfserviness, I’ve got all these people I’ve helped over the years, and I've really watched them grow and prosper; I want them, and I've seen their technology and methodology; I want them to come together and share it with you, and I want, in the process, for them to use the experience to grow their own business; and these are the experts, and I want to have fun. I want to have a good time. And I want to see you guys transform and
not just - I don't want to be your intellectual entertainment. And that's why we're here. Correctly said, Rick? (Applause) Rick is my monitor. When we did a pre-call that we took the liberty of transcribing and putting in your book; it's a little embarrassing but you can see how we set the stage for everyone; and we tried to canvas - and by the way, thank you so much. I'm at a point in my life where your acknowledgement is very much appreciated but unnecessary; your action, your implementation, what you do with it; is the greatest compensation you'll ever give to me or somebody like me, and that's the God's honest truth. When we canvassed all the experts out there who are going to talk, we said, 'Well, what do you think?' Read it, because we actually decided it was profound enough that we put it in the front for you. This was pre-call we had with everybody. I said, 'I don't want to call and just have every man or woman for themselves; I want it to be integrated. I want everyone to be able to understand everyone else's point of view and build on it and they integrate it.' But there were four points that came out of all this, don't you think Rick? Rick: Three. Jay: That's what I said, there were three points... (Laughter) I'm just testing everyone, I know exactly what I'm doing. Number one; lack of focus. Number two; lack of execution. Number three.... Rick: Lack of strategy. Jay: Lack of having access to a special microphone? Rick: No, no, you were supposed to talk about that. Jay: Okay. Lack of strategy. I jumped, I'm just having fun. That almost every company looked at didn't even understand what strategy was, they were tactical, they were living moment to moment, lifestyle oriented; they had to sell their business, they couldn't get even a fraction of what they made really, net, in a year. They were stuck in a well-paid employ. They didn't look at the asset as something they were husbanding for the future, they were building, compounding. They weren't strategic, they weren't trying to put into place systems that would sustain for them. Chet Holmes could do a lot more about that when he talks; but we want to address that now. Now, now, last thing I want to say, then I’m going to get into understanding all more about me until we have to stop; is that much of
what I cover today, tonight and tomorrow, will seem to you to be reminiscent, explicative, duplicative, exactly the same as stuff that I sent you in preparation. Now, do you think that is because I don't have anything else to talk about? Do you think that's because I'm trying to really avoid being original, or delving into the depths of my creative capability? Or do you think it's because I have learned, over 25 years, that intellectual understanding is not the same as transactional capability? And that maybe we need to have a lesson right now in the difference between process-learning and event-learning? Should I give it to them real quick? You're going to do it, but you're going to do it better. But it underpins everything I do, and why the process is critical. Two ways to learn: process and event. Event is what most of us have been weaned on. We buy a book, we get a tape set, we go to a 3 day experience, statically where an expert lectures to us authoritatively. High up, looking down at you. And you soak in the information, and you're blown away, and you go home and it's so cool, and you try to tell people, and they go, 'Yeah, what?' And then the status quo creeps in and grabs you by the neck and squeezes you, and its Monday morning, and you can't remember anything because you took no notes or cryptic notes; or if you took notes you don't look at them. I'm looking at you, because I'm talking to you; you get that don't you? I can tell. He's going, 'I think I can relate to that.' And you end up with this much benefit but a great weekend and you're gone $1,000 or $5,000. Process training can only, at best, get you this far. It can change your mindset, and that's what I'm going to do with certainly. Event training is how you keep going back and building on it. It's how the military learns, it's how doctors learn, it's how pilots learn. Anybody here a pilot? Anybody here a professional pilot? For what airline? [inaudible 09:04] Okay, can I ask you a question; you fly jets? When you decided to become a pilot, did somebody give you the airplane pilot's manual, give you an hour or two in a simulator and throw you the keys to a 747 and say, 'Take it up?' Audience member 1: No. Jay: Did you instead have to go through arduous process of studying basically, theoretically studying it, simulatedly studying it, by sitting in a seat a watching, studying it by holding and feeling, studying it by trying it a little bit and getting a little bit more daring? Audience member 1: Exactly right? Jay: Is that a good way to learn?
Audience member 1: It's exactly right; it's a great way. Jay: It's the only way, really, if you want to master it, because then you become subconsciously competent at doing things automatically, when scenarios happen, right? It's not just you're not the most articulate guy about it, theoretically. Any doctors in this audience, medical physicians? What kind? [Inaudible reply 9:56] The gentleman; there's a mike here. Audience member 2: Emergency medicine. Jay: Great, stand up. Did you decide you wanted to be - please. And by the way, if I seem rude, it's not - I love you all, I really do, I'm in a great mindset; but I'm going to be quick and curt because I'm going to go over on everything, and I want to get right to the point, so if I'm rude, it's in your best interests because I'm trying to cut it to just the essence so you learn that. When you went to - no pun intended. When you went to medical school, did they give you - what's the name of the big - I think it's got somebody's name, something's Medical...Gray's Anatomy. Did they give you a cadaver and a scalpel, and then about a day later, say, 'Come on in the operating theatre, you're going to do a heart?' Audience member 2: No, we spent at least 3 months in the anatomy lab. Jay: And then you spent how much time reading about it, and watching it, and going from dead animals, cadavers, to live little things, to holding, to suturing, to get a little deeper, a little deeper? Audience member 2: Two years before we begin clinical stuff. Jay: Is that a good way to learn? Is that a good way to learn? Audience member 2: Well, it's the only way, yes. Jay: Probably the only way, isn't it really, if you really want to be proficient and masterful at it? And you've got to keep doing it. Thank you. Anybody here retired from the military? High ranking? High ranking? Audience member 3: Major. Jay: Major's pretty good. (Laughter) I mean, do they basically say okay, recruit, here's the manual, here's a helmet, here's the keys to a $25 million tank? Audience member 3: There's a whole lot of training, they just keep building you as a person.
Jay: Is repitition important for proficiency and strategic affluency? Audience member 3: Repitition is...Day in, day out. I mean, twice a year you go to the field and do gunnery exercise. Jay: Is that just to waste time and taxpayer's money? Audience member 3: No, it's to stay awake all night, and learn and learn and learn, and do it so when you're tired, you can still execute. Jay: To live, and to drive, and to win the war? Audience member 3: That's correct. Jay: Thank you. Mac Ross, who's a great, great, great, great friend and probably the brightest mind in business; and I call him the Dionne Sanders and the - who did we used to call him before Dionne Sanders was good? Who was it? Bo Jackson of business, because he understands all the stuff that he can't possibly [unclear 00:39[ in one lifetime; says that today business is war. We did a seminar years ago and it said 'Grow or Die.' Mac's thesis tonight is going to be 'Win or die,' isn't it Mac? He says whether you like it or not, it's a militaristic world, and you've got to understand it; not to be brutal, but to be strategic. And do you agree with what I’m saying about strategy? Okay, okay? So, Rick where are you? Rick: Right here. Jay: Wait, I screwed up so much, what should I do now, because I want to make sure we do - no, I got all these notes I'm not following. Okay, what do you think the best thing to do right now.... Rick: You are following but it's random and spontaneous. (Laughter) Jay: That's okay, no. That's okay; are you enjoying this? If I get a dictated thing that was just canned, it would be boring, and it would be so impressive-sounding but it wouldn't - I'm about making sure you get a result. You don't care how I do it, do you really? You don't care if I do it, or if I get this guy to do it for you; all you care about is getting it. And keep that in mind; you didn't pay for Jay Abraham to babble incoherently or pontificate theoretically, that's a waste. Anybody can get someone to do that. You paid for a result. Rick: Talk about Peter Drucker. Jay: Okay. Rick: Marketing...
Jay: That's good. Look on the wall up here. It's on screen in a minute. Peter Drucker, arguably the most masterful management business expert of our time, says something pretty profound. I'm going to read it; it's on the board over here. He says that, to quote - and there's a couple of dots, only because there was more filler but it wasn't contextually any change. Because it's purpose is to create a customer - I would now call it a client, which we'll explain in a while. The business has two and only two functions. Marketing and innovation. Marketing and innovation. Marketing and innovation produce results. All the rest are costs. If you don't turn yourself into a masterful strategic marketer, at best you are suboptimizing, at worse, you're screwed. (Laughter) Okay. Rick: Recording and [unclear 2:38] Jay: Okay, alright. I refuse - I did 50 programs in 1989 to 1995 or 1997. Mastermind stopped in '95. I never do the same one twice, for three reasons. I'm attention-deficit; I can never find my notes. I'm not lying, am I? Rick: That's why I'm here. Jay: That's why Rick is here. Because I add all these notes in, I could never find them. So he's like my memory. Number 2 is I was so committed to trying to stretch and try different ways to move people to action. Number 3, I realized that where you are now, basically based on what I hope I and Mark, who's going to come, and Chet, who'll talk today, and Mac, who's going to hammer it home tonight; will impact you, is there's so much higher you can go. So much more you can accomplish, so many more people and levels you can impact and contribute to, that (Audio missing) ...and that even by Monday, that your limited paradigm today is miniscule compared to where you'll end up. Whenever I get into the zone because I don't remember a word I say, I insist that every word be protected and preserved for ever, for your benefit. Because if you go to a static, lecture-based big expert; you feeble little underling, type of a thing; at most you'll retain 7% of that. That's research, scientifically based. You go to Jay Abraham program, you'll do maybe 3%. Not because I'm more feeble, but because I'm more breakthrough, more tangible, more action, more provocative. Your mind's going to be tripping out and you're going to think of all these permutations, you're going to be talking at the tables, people are going to sharing their insights, you're going to be seeing all these applications; you're not going to hear half of the stuff that goes on, which is okay for now, but once you go home and realize that you are twice or thrice, or ten or 100 times more of the potential business person or company than you ever thought possible; a lot of the things that you
would discount; because they don't seem to apply to you now in your current static circumstance will be very important. And I refuse to harness, harvest and articulate that for you, not myself, but out of everybody, and not make it your prisoners' forever. But in giving it to you, I assume three things. That you'll listen to it. Not once, but many times, because process learning is about listening and getting more and more things out of it. The greatest book that I ever read for my own growth, was called Scientific Advertising. It was written by Claude Hopkins. It was written in 1919. I read it 50 times. And very like someone who's very religious, committed and reads the Bible over and over again; every time I read it, I got another distinction, another breakthrough that made me, each time, probably $1 million plus and I regrettable just stopped when I burned out about 5 years ago, and I started again reading it, and it's instantly paid off. You can't listen to the tapes of this if I orchestrate this dynamic properly enough times, and have your people listen to it; and I would even get it transcribed. And if you guys want to, later on we'll figure out a way you guys can all get it transcribed for cost, and we'll figure someone who'll do it for you. Note-taking. From today forward, I want you to take a pad - we got enough pads, you got two pads there, and if we run out, I'll buy you more. I want you to do two things. Every minute - it's going to be the hardest thing you're going to do and I will yell at you. I’m a mellow fellow, I'm so - and by the way, I may not get everything I want in this time, but worry not, before you leave you'll get everything we promise you. I just got to set the stage for everybody. If you don't do this, you're going to be missing on probably 80% of the opportunity. Most people are not used to taking great notes. Most people are not used to saying, 'What about that? Is it directly or indirectly applicable to me?' Most people don't realize that they great breakthroughs in your business will never come from within; they will come from without. If you look at great breakthroughs and the origin, almost none of them come from within. FedEx; FedEx wouldn't be here - Mike is here; if they hadn't borrowed the Hub and Spoke processing system from the Federal Reserve Bank. Roll-on deodorant wouldn't be here if they hadn't borrowed the process from the roller pen, with the centrugal force concept. Very good. Fibre optics, that everybody credits to Telephony, the telecommunication - they wouldn't have come here if you would have depended - do you know where it came from? Aerospace. It was borrowed forward. Any of you guys who are re-growing your hair because of Monoxodril? That wouldn't have
been here if they hadn't have created it for acne. Breakthroughs don't great breakthroughs, powerful breakthroughs, strategic breakthroughs, marketing breakthroughs, innovation breakthroughs; very rarely come from within. They come from travelling outside your comfort zone, outside yourself, outside your business. Some of you have already been - we know that. Some of you have forgotten it who knew it. Most of you never heard of it before, don't know it. Anybody ever travel outside of your city? Your state? Your country? North America? The Western Continent? Okay. Every time you go a little further, you see different, really fascinating things. Different cultures, different values, different foods, different climates, different clothes, right? Different moralities. But it grows and expands you, it makes you broader, it makes you more knowledgeable, it makes you more aware. Broadens your perspective. Travelling outside your business will do that also. Why? Why, because the approaches that are the most powerful, you'll learn, are common place in other industries and they're totally unknown in yours. A concept that's as common as dirt, Industry A can have the power, the impact, the profitability, the pre-emptability and the pre-eminence of an atom bomb, if you're the first one to understand it, to use it, or combinations of it and other ones like it, in your world. You'll never do it if you don't study other people. I am going to force you for three merciless days and nights, and the reason that I almost begged you all to eat lunches and dinners together, is that I want you all to share your different perspectives. I want to share your hopes and your dreams. I want you to share what you got out of something today, and how you're going to use it, so somebody that didn't get that will get what you got; and if you talk to a hundred people today, you'll get a hundred different perspective you never would have had, and 20 of those will be things you never would have used; and the force multiplier effect will be with you, and it's unbelievable. Does that make sense? Rick: Absolutely. Jay: Okay, what next, Rick? Rick: You have a choice. You could launch into Nine Drivers and Abraham 101... Jay: Well, what's our timeline with Mark and... Rick: You've got 50 - you've got 40 minutes. Jay: Okay. Let me do an overview of Abraham 101.
Rick: Or the interaction. With strategic questions. Jay: Yeah. Okay. Let's do a little of that first. We got three things to do and I've got it very orchestrated but I never follow it. No, but it's okay. Again, trust me on this; this concept of the field of dreams is what you're part of. If our goal is to give you, and have you give yourselves, the most incredible outcome possible, and have you turn yourselves into strategic marketers, highly, highly integrated, masterful entrepreneurs, and have…
Jay Abraham Mastermind Marketing 4 ...an incredible strategy and then tactics to deploy it. How we get you there is not important. That we get you there by Monday night is all important. Do you understand that? And you're all going to get there differently, and I can promise you, you're all going to get your breakthroughs at different points, and that is normal. I've done 50 different variances of this, so don't try to wait for something to happen, and don't even ask me about any questions about, 'Am I going to do this, am I going to do that?' I will do everything you need done, because if I don't, you're going to have the chance to ask me a question about it; like you, and if you don't shame on you. Because I am here, and if I can't answer it, I’ll go to the audience who might be able to answer it better, because I don't have any pride; I just want the truth, because the truth experientially, is what will really drive you to greatness. So let me give you a chance to get to know each other, okay? We're going to do - we've got, in the workbook - where, what page? Rick: I'm not - the strategic questions are not in the workbook, they're in the... Jay: Not in the workbook, but that’s okay. Rick:...they're in the grounding materials. Jay: We tried to create a neat workbook that was a little different; for what reason I’m not sure, but it works out. We’ve got a bunch of interesting questions I want to ask you. And we're going to go through about three of them, then I'm going to have you write down the rest and ask them of yourselves at lunches and dinners. The first one is - and this is going back in time. What initially got you started in business in the first place? What passion, what goal, what circumstance? Because a lot of you have lost connection with the passion that started and you had it in the first place, and to become a masterful strategic marketer, you really have to do that.
You really have to do that. And I need to know, and I need you to get back in touch with your roots. What was it? Was it, 'Hey, when I saw this opportunity I thought, man we could do better, we can make this outcome better, we can protect people better, this is a great deal, I love this field, I love the people in it.' Was it your technology? What was it? What got you started? And then I ask you as you're writing that down; do you still have that feeling in your heart today? Do you still have that connection, do you still relate the same way, or did you lose it somewhere between being connected in the beginning, day-to-day, dealing with people, and moving up to being the jack of all trades and the manager, and the bookkeeper, and the bottle washer and the CEO? What's the next question? When you first started, how did you attract your first client? It says customers; we didn't change that. It should say clients, and you'll see why in a minute. When you started, and you had nothing but an idea and a little bit of capital, or no capital, or a lot of capital. Maybe you were one of these Internet start-ups. Or you got raised by private fund investing. What did you do when you had to make things happen? Did you call on people? Did you send letters, did you do something much more effectively then, and then you got enough critical mass and enough momentum that you stopped doing that and you bought other people in or you moved yourself to a higher level, and things you did - maybe not consciously, systematically; but regularly because it was the only way you could get things going; you stopped doing now? Next. And are you doing that today; number two. Why did your clients originally buy from you? Maybe it was your passion, maybe it was your personal accessibility, maybe it was the vision you had, maybe it was your [unclear 00:08] vinegar, your - when I started out, I was so young and I was energetic and so full of possibilities that I just -I overwhelmed people, and they submitted just to the force of my enthusiasm. What was it about you; and the question is, are you still that person today? Is your business still that entity today? Is there more? Rick: Three. Jay: Okay, so I'd like you to answer those right now, and then I'd like you to take - each table - I'd like you to take one of those, because we don't have time; any one of those; I'd like you to answer to the group. Say, 'My name is Jay Abraham, I'm a marketing expert (or whatever your business is), I'm from this, and my answer is this.' And I'd like you to also share
what, if any, other thought, like underlying thought just came to mind as you were answering that. Like, 'Shit, I'm not doing that anymore.' Or, 'Darn, I did this everyday and it built $3 million, and then I decided to be a CEO, and I stopped doing that, and we plateaued and now we're at 2.6, and if I'd only hired somebody behind to do the next level and the next level, we might be at 8.3.' Or whatever, okay? So take a minute to answer those questions, and then... Rick: Jay? How about if they shared their biggest outcome that they're looking for this weekend, as a part to question number four? Jay: Okay, we'll do that. That was going to be another exercise but we'll do it. Also at the end, after you've said what the answer is to just one question; and you're going to be on your honor system because I'm going to stop at 10 minutes; you won't get all the way around, but you'll get to know each other a little bit more intimately. Share the one biggest outcome. So it's Monday night. It's 9:00 or 10:00; and I know some of you have to leave early, thank God we're going to have tapes, isn't it? And we've done our job. And you've helped me help you; turn you from marketing midgets to masterful - some of you are already very masterful, but you'll be better; to just gloriously masterful strategic marketers, and you've got a plan in here. What do you want to walk out with - what one thing more than anything else, must Jay Abraham give you and your company, or Jay Abraham's attendees, or Jay Abraham’s experts, or some combination there, of give you, and you, and you as could be different. So that you feel you've got more than you wanted. What thing are you going to judge us, and judge the event, and judge all the contributions, and judge your feelings and interactions on more than anything, and why? Try to make that the last thing, and then we're going to start in one minute. Dave, now I do need some mellow, reflective, soul-bearing, candid, vulnerability-inducing music, okay? And while you're doing this, so you know this, the paintings in this room don’t come with the room. It's a client of mine, who I don't get paid from; I take his art in kind because I love it. I own five pieces and three of my pieces are here, and I'm going to challenge you to figure out which ones they are. And I just thought I had them bring a couple of pieces for me one time, and they coincided with the programme; it was so cool that I said, 'Hey, why don't you decorate the whole place?' He's here working on his business; [unclear 3:06] where are you? Woman: I saw him out in the hallway...
Jay: And he's brilliant, and his work is collected by the Sultan of...where? Woman: President of Neiman Marcus... Jay: Of Kuwait, the President of Neiman Marcus, Richard Branson has his stuff, Andre Agassi has his stuff; I have his stuff. I just thought it would just knock you out; its cool stuff isn't it? (Agreement and applause) I said, 'Decorate the place,' so he bought his whole collection here for us. (Applause) And this is a project he's working on right now, with the Nobel Foundation, to commemorate their 100 years, and it's the heart of peace, and I thought, 'That'll be a cool emblem that we could appropriate for the weekend.' So, okay, we're ready to start? Who's going to be out official timer - who's got a Rolex? (Laughter) Okay, who wants to give it to me as a gift? Who believes in tithing? No? Okay, is your Rolex accurate. Woman: Yeah. Jay: What's your first name? Woman: Pat. Jay: Pat, you don't need to take it off. Okay, it is 1:14 on our digital $10 clock, what time does your Rolex say? Okay, at 1:24, Pat, the Rolex official timekeeper is going to jump to her feet and say what? Time! Woman: It's 1:24. Jay: Okay, so you got 10 minutes, we're not going to get done; we're going to start it. Go ahead. Use your time wisely. (Audience chatters). ...doing lots of this all weekend, but it's powerful, isn't it? Did you guys get any insights from it? Okay, where's the roving mike? Rick? Okay, Rick, I need a roving mike runner; one of my staff come here please. Raise your hand, somebody at each table that got a hell of an insight out of what just happened. A real interesting insight that applies to something meaningful in their business life. Raise your hand. Okay, only two? That's interesting, but that's okay. You don't have to. Okay, when we do exercises like this, they're designed to do two things. Get you to see how many different ways other people see and seize life. Yeah, well, it's just too much - I'd rather - okay. I'll have you guys who raised your hands go to the mike, just because we can't get in there as easily as we wanted to because of the configuration. Sorry about that. And the key to this event is going to be your willingness to stop for a moment, figuratively and literally, to think through what you
got from that experience, what the biggest insight; I-N-C-I-T-E, I think. Or IN-S-I-G-H-T, whichever it is; and or both... Audience member: I-N-S-I-G-H-T. Jay: Yeah, but it could be also provoking you; depends on your thought. And also the action it's going to cause you to do differently in your life, and if you force yourself at every experience you have at the tables in here, to think that way, and say, 'Wow, what about that is actionable?' I didn't finish by the way. You'll go to the mike if you had an insight from what just happened, that will positively change some way or something you do, or something you'll reflect on in life. I was going to start with my pads; I was going to show you what to do. Can you see that? That's a vertical line that cuts a pad like a third, twothirds. That's how I would start taking notes, with the left third being what I'll call 'linear literal,' and the right being 'translational and applicational,' and you can call it anything else you want because I'm not in the right words at the moment. But what you want is; somebody's going to say something, and it's going to impact you, like 'I've got to do a back-end.' So you'll write that down on the left, because that the literal linear. But then, you've got to force yourself; this is something no-one else has ever made you do, and I'm the only one that'll force you to do it; and if you do it diligently from this point, throughout the rest of the long weekend, and the long evenings; you'll do it forever. Stop and say, 'What's the specific action, coefficient or correlation that that generic theoretical, philosophical, general thought or insight has to my business?' For example, create a back-end. Okay. Figure out a service I can do for due, or figure out a way to get people to buy my...blank blank, and then sell them 15 of my blank. Take it to something more specific. Why? Because if you don't, if you delude yourself - and I think I’ve got a very good mind, I think I got - even though I'm attention-deficit, I can remember a lot of really amazing things, as you'll see; because I've got people here from 20 years that come back, and I'll remember. Maybe not the name, but a face and a business, and an element. I don't remember squat of my own events, and I'm blown away by some of the insights I get from you all. You won't remember anything if you look at your generic list, like develop a back end. In the moment, your mind is going to be so stretched, so focused, so basically appliably opened up, that it will, if you ask it to give you very specific first stage applications, but if you don't make those applications, a prisoner forever on paper. I make my stream of consciousness, or my 'in the zone' a prisoner forever for you on tape. You got to make your thoughts a prisoner forever on
paper, and let me tell you what I might do. So I'm going to encourage you to make great notes, and great interpretive ones, because a lot of shows and a lot of programs, I've made people give their notes to somebody else and trade them, and if you take crappy notes you might get crappy notes. Serious. Am I joking? I do some very unusual things, because I want it to I'm serious, this is not intellectual entertainment. This is about forcing, pushing, cajoling, inspiring, ruthlessly but lovingly keeping you committed to giving yourself an enduring breakthrough. Okay? Alright, so once you've had a breakthrough, or an insight, run to the mikes. Only one person, and it's our timekeeper. What, the people that don't keep track of time, right? Woman 1: Thank you, Pat Burns, general manager of the Millionaire Summit. At our table we had 12 people, and every single person had an ulterior motive other than being here. Jay: For example? Woman 1: Oh, just, buy land for their business, to increase their exposure about the personal branding, about coming after contacts that would be here; it was all about secret agendas or inside agendas. Jay: Okay, and so what do you think the lesson to everybody about that might be; or the insight that people might take if they hadn't seen - see, I want people to understand. If 650 of you are hearing me say something, that 600 are getting something totally different. Not necessarily better or worse, but there's so many options and perspectives, and the more of those I can open up to you kaleidoscopically, the more choices, the more combinations, the more force multipliers you guys can commandeer. So what's the insight for everyone to capture from your insight? Woman 1: For my insight, is ask everyone that you meet question number 4, Jay: Which is? What's your outcome? Woman 1: What's your outcome. Jay: And why? Woman 1: Because it's going to give you an immediate, well... Jay: No, no, and why. Add why to the question... Woman 1: The why is for me, that it'll give me an immediate insight on who that person is. And you can cut through all the other stuff.
Jay: It'll challenge you to see life from a whole different perspective. Thank you. Woman 1: Absolutely. Jay: Go ahead. Woman 2: Hi, my name is Yvonne Greer; Baton is what's on all of your sheets, but Greer's the name I use professionally. And I said, 'God must have put me at that table with these wonderful people on purpose,' because they're doing so many similar things. I have a company, Power Zone; it's a fitness based business and I'm also a radio broadcaster, WLS in Chicago. And just earlier today, my husband, who's here with me and is my partner on the radio, had an insight just based on some of the things that Mr. Tracy had to say about giving away services, because Power Zone is not doing very well financially. And I had this idea that we should have fitness parties, and bring people out, and not to the health club, but to the community centre or a church or wherever, and get them out of the traditional fitness atmosphere. And we were struggling with how to get advertising and marketing to get people to these parties. And his insights earlier today were, 'Well, have a grass-roots effort.' You actually go to people's homes, have people come in, and you do a mini-presentation. I also have a line of exercise videos, and he said, 'Whoever hosts the party, let them get a percentage of whatever exercise videos they sell after you're gone. But you just show up, you talk for free, and then invite them to the party on the back-end.' Jay: What's the lesson that everybody can take from your insight? Woman 2: Don't be afraid to give it away. Jay: Okay, good. Woman 2: And as I was sitting here at this table, Tomaszo, who you heard from earlier, is a personal trainer. He said he picked three people from his neighbourhood who were obese, and for free, he trained them. He consulted with them and with their doctors, and developed a program, and it exponentially increased his business; and he only dealt with 3 people for nothing. Jay: Thanks. I have a young man who does my cars. He comes to me, he's from Peru. And he had no business and one day he was lamenting, and I showed him how if he went in all the affluent neighbourhoods, knocked on doors, was straightforward, offered to do the first wash no strings attached; that he would build a great business, and now - he ain't big, but
he makes $5000 a month, and he's got two associates doing all the work for him. He really does work. (Laughter) Man 1: My name is Rick Wilslayer, I'm from the Aikido School of SelfDefence in New York. The lesson that I got was tapping into the power of why. Why we do things. And really emotionalizing and connecting with that to use that to overcome the fear that might prevent action in growing. Jay: Good. I like that, thank you. Bob? Man 2: Hi. Gentleman at my table said his outcome was to find 20 people here that he could work with. Initially I thought that seemed quite ruthless, and then I suddenly thought, 'My God, there is actually such a wealth of people in this room that you can learn from and learn stuff.' And the second thought was, 'Who else has my customers?' because he was looking for people who had large databases of customers he could use. Jay: Let me share with you a secret that you will realize by Monday night. There are people that came here just to connect with you that don't even know they're here for that reason. And there are people that you came here to connect with that you don't even know you came for to meet. And there will be people who have missing elements that you didn't even know you needed or had. And it will be remarkable, and there will be contacts, there will people who have expertise, there will be resources, there will be not self-serving, manipulative, diabolical, [unclear 9:38], just self-serving deals; they'll be very equitable and very value-added and very wonderful networking; and not just economical gain, but intellectual exchange or collaboration of expertise, of skill sets, of experiences, of learning curves; but believe me, this is the best chance you'll get, but once you learn this you'll be able to go back and be able to master it all the time. One last question. Who do you like in the fifth at Belmont? (Laughter) Just joking. Bob is a professional gambler, he's got a handicap in business that he's very successful all throughout Europe. Man 2: Yes. Man 3:: Yeah, Frank Maddock, Recycled Dollars Marketing, it's Forest City, North Carolina. I'm a start-up marketing company with an emphasis in border transactions also. I think you'll be hearing about some barter over the weekend. And the gentleman asked me a question at the table; he's
right. I've got two clients right now, one is a non-profit organization in New York City, and the other one is a roofing company in Poughkeepsie, New York. Last question, the gentleman asked me, 'Well, who's your target market?' And at this particular point, I’ve got them essentially from referrals, or old friends of mine, for that matter. But that's a question to ask really; is what - to tighten up the target as much as possible, for that matter. Jay: Good, thank you. Man 4: My name's Ned Baranovich, I’m with the Enlightened Millionaire program. At our table, we have a number of people who are in transition. But the insight that I got... Jay: Is that just coincidentally, or did you all come together; the transients; did you just sort of meet outside and attract each other? (Laughter) Man 4: It may be coincidence, but... Jay: Or could it be karma? Man 4: It could be karma. Jay: Surreptitious. I mean, it's serendipitous. Man 4: Serendipitous, right. Jay: Or either. Man 4: The princess of Serendip: there were three of them and they serendipitously came together. So we serendipitously came together, and the insight that I drew from that (Audio missing) useful, because they have the point right now where - one lady says, 'I’ve got the money, I've got the time, I'm looking for a new business interest.' And several other people were in that same (Audio missing). The insight that I got is I took your concept of leveraging, by going to your already existing customer base, and saying, these people are leveraging by going to their already existing, experiential base, and drawing on that. So what they're learning is going to amplify them, as you would say, geometrically. They're already smart, they've already arrived, they're already high achievers, and they're taking it to the next level by coming here to learn, and it's going to do a lot more for them than somebody who didn't have anything to start with. Jay: Great, that's great. Thank you. Who here loves taking plenty of notes and is really good at it? Who can multi-task, who loves taking notes? Okay.
Raise your hands, keep your hands up. Okay, you, stand up, what is your name? Ellen Patterson, you just become the resident secretary - not treasure, just secretary of the event. I'm going to give you notes to keep for me of things I want to make sure we get done before Monday night, and you'll give them to Rick, and he'll make sure that we do them. And one of them is; a lot of you are - you're not the multi - Brian said millionaires; most of you probably are millionaires; probably a surprisingly large number may have more wealth than I do, in this room, because you put it into assets, rather than income streams like I do; but you probably spend a lot of money, let's say, speculating on all kinds of other businesses, and I'd like - I did it yesterday before I came here - a two hour session with a group of investors trying to tell them what I would do if I were they before I'd spend any money on any kind of investment, and if I had a troubled investment then I'll try to give you, if time allows, a criteria and a little bit of a template, so before you piss away money unnecessarily, you could put them through a performance sort of a criteria, a viability quotient; know the things to do. For example, Brian was talking about selling. If I were a venture capitalist, if I were an angel investor, I would never put money in any company that didn't first invest massively in consultative selling. I don't sell it, Andy Miller does, and Brian's got good stuff on it; but I would - because quantitative selling will transform the performance and the success probability of almost any organization. Minimum 20%, maximum maybe of 1000%, and everybody in the organization that has any public contact should do it; but most people don't know about that, so make it a note and I will make sure - and tell me your first name again one more time. Ellen or Helen? I said Ellen didn't I? Why didn't you correct me? Are you afraid? Come and go,'Hey! My name's Helen!' Helen will be our secretary. So every time we have an insight, you give it to Rick, okay? Alright, sir? Man 5: Yeah, my name's Howard Hoffman, I'm a dentist, I do cosmetic and sedation dentistry down in Miami. Jay: Okay. Man 5: One of the things I noticed at the table here, and I keep hearing repeatedly, is everybody comes with a different agenda, everybody hears everything differently, and everybody hopes to get something different out of this. And the easiest way to find out what anybody wants is to just ask, and say, 'What is it that you hope to get out of this, what are your hopes and aspirations?' and in doing so, you're asking them what they
need to hear, what they want to hear, so that they can be sold, so that they can convince themselves to do business with you. Jay: You just gave the answer - were you on one of the dental calls we did? Man 5: Missed it. Jay: We did them with - one of the dentists was saying how powerful it is; he just asked his patients about what their outcome is, why they wanted what their result would be and what the problem is of not doing it, and then he repeats it back to them very nobly, and it's like they're putty in his hand, because he's listened, he's heard them, he’s acknowledged, he's empathic. Man 5: It’s a done deal. Jay: Yeah. Pretty simple, pretty powerful. By the way, Fran said something that I'd like - it's about one - I mean, I'm not humble but I'm also not really arrogant like I used to be, but I 'm going to be very clinical about one thing that I'm world-class at that I'm going to take a point of making clear to you from the beginning. There's nobody, I think, better at understanding complex things that are marketing-oriented and reducing it down to simple, elegant simplicity, and sometimes I can reduce them to such simplicity that something like that is so just matter of fact, you don't realize how powerful it is. What he just told you can translate to almost everything you do with your prospects, with your team, with your family, with anyone you want to ethically gain benevolent control of, to advance a qualitative and noble agenda. It's very powerful, and about 90% of the things we'll cover are very powerful, but they'll seem so simple that you won't write them down. Remember what I said? Draw a line on the page; left hand is the generic, literal one, the right hand is the real meat and what it means to you, because you're probably definitely going to be exchanging your pad at least temporarily with somebody, and trying to figure out what, making heads or tails out of what they saw, that you didn't. Thank you. Man 6: My name is Pat Solis, Jay, you might remember... Jay: I know, you're a physician from Texas, you're in weight control. Have I got a good memory? Man 6: Yeah, very good. Jay: Thank you.
Man 6: This is my fourth seminar, I wanted to share. The reason I came up to the mike was - just wanted to tell you a little bit about what I've gained out of the seminars. The first two seminars I came to were in 1994 and '95, to learn about my gynaecology practice. The USP that we developed as a group; interestingly enough, the whole group participated in the development of my USP. Jay: It was a powerful dynamic, wasn't it. Man 6: It was very dynamic. And then I came back a third time, I came back for the work college. That's where Jay puts you up on the hot seat for a couple of hours and all your marketing material and so forth... Jay: Those were fun, weren't they? Man 6: It was very, very exciting; very worthwhile. What I wanted to tell you Jay, is to give you an update what happened. This was in the early fall of 1999, went back and I'd already developed this company up to the sale of it. I'd invented a new weight loss business, invented the new weight loss program, and I was going to sell it to doctors across the country. And Jay gave me a lot of ideas; we were going to distribute it through pharmaceutical companies. I went back and Fen-Phen had their malpractice situation, you know with Fen-Phen. I put it on the back burner, and then I took a garden product that I invented and basically had received four patents on. I'm in the process of licensing this as we speak, Jay. And I wanted to show you an idea that I picked up while I was here, but I had a law firm in Dallas who's representing me. They're the second largest law firm in the United States. They charge $500 an hour. The billing ended up - I paid them $30,000 in legal fees in about a 4 month period. And so I had enough money to sustain it for a period of time, but we had not even gotten into heavy negotiations and they informed me that the legal fees were going to be somewhere around $20,000 a month, with hotel bills, airline flights. Jay: What happened? Man 6: So basically Jay, I thought about it and - basically just went ahead and made them an offer of paying them twice their normal fee. They had never done that before. They took it to the board and they accepted it. Jay: It was contingent on what, on basically...? Man 6: On basically, when we close out first deal, they get two X - twice their normal fee.
Jay: What did that save you in cash flow? Man 6: I would say in the last three months, I’ve saved probably maybe $30,000. Jay: And they're going to be motivated to get you an hell of an outcome so you can write a check, huh [unclear 2:42]. Man 6: It is unbelievable; I just can't tell you how attentive they are right now. (Laughter) Jay: What's the lesson, Pat? What's the lesson? Man 6: The lesson is joint ventures or host beneficiary; there are many different permutations, and in this particular case, Jay, it's really an unusual permutation because in this case it's not really - or I'm paying them a profit; I guess I am in a way, but I'm really thrilled that I was able to complete the project, hopefully, without having to spend any money. Jay: That's great. Thanks a lot, it's good to have you back. Last two and then we got to get to Mark. Woman 3: Hi, Mitzy Hasslinger, Pioneer Spirit Enterprises. I have small financial and marketing systems implementation company, and I was startled today at how few people had implemented anything or taken action from all of the material that you sent. I have a very small company, and I've made probably a few thousand dollars over the next few months from realizing a hidden asset, and as I watched what was going on this morning, I saw how narrow Michael’s had been - they're great ones, but they're narrow, and now Michael is, for this weekend, to be one of the five percent of the people that come out of here that is a completely actionoriented people - person, in that I continue to make those steps and completely change my life. Jay: Good. I'd like to have that goal be appropriated and impute that to every one of you, because you can do it, you should do it, but it takes action; and unfortunately many of us are comfortable enough or are Mark will maybe talk a little bit about it - you're not complacent, but I don't think people know what it's like to perform, really, at optimum. It feels so good. Woman 3: Right. Jay: It feels so good to connect, to contribute, to function, to think, to act, to interact, it's just so good. Thank you. Last?
Man 7: Hi, my name is Chidakash, and I'm with Serenity Transformational Tours, and what has really surfaced for me is a contradiction. It's become quite clear - contradiction within myself, with something like this Transformational Tour company. I've been in it, but I have an attitude about business. I always have; I learned it in reaction to my dad, sorry about that Jay. But that's where it came from, an attitude that business isn't where I want to be; and yet I'm in it, so I'm not as fully in it as I should be and could be; and being in something transformational, it's all kind of new age stuff that I've been hiding out in for quite a long time. What I'm really finding very exciting is that I have found that there is no contradiction, as I look out to what I’ve heard in the last little while, and what I heard around my table, between this sort of transformation and business and new age. It all fits together really beautifully. What's just happened at my table is that I've just received an invitation to get involved more closely with Tom Masson, who's with Pro-Master's Golf Training Centres; to promote my Transformational Tours. It quite blows me away. Jay: So what do you think the lesson - what's the lesson? Man 7: The lesson for me is simply to just remove my limits. The limits that I have are in my brain, and if I can just drop them, and open to anything and any possibility, and all the people -all of you here, then the possibilities are limitless. Jay: Well, one of the things I'd like to end before we bring Mark on with, is that we - for some reason, one of the really interesting - when I was talking to Fran privately about insights in big corporations; well he started talking about it but I didn't delve that deeply because I didn't think it was relevant to that segment, but I probably should have. He said one of the things he thought that big corporations had over entrepreneurs; that they recognized what they didn't know and they were not afraid to ask and solicit from all kinds of experts, and they understood advisory boards and Boards of Directors, and they would spend sometimes too freely on consultants, because they wanted to be the best they could in wherever they were weak; and they wanted to be better than they were if they good or great. I think most entrepreneurs - where'd you guys come from, I swear there was nobody up there before. We’re going to have to - you guys, don't no more come up because we got to get Mark on, he's got a place he's got to be. Most entrepreneurs think they have to be an island. They're afraid to think - it lowers them to say, 'Hey, I'm struggling here. Hey, I don't understand something,' or 'Here's my goal, I don't know how to get
there,' or 'Here's the goal and here's how I think I’m going to get there,' or, ' Here's how I'm trying to get there,' or 'Here's the path I'm taking, is it the best way? Have you got a better approach, what do you think?' Realizing that we always have the right to discriminate. We can listen, we can value it, we can examine, we can consider, we can reflect, we can borrow freely elements, or reject them. Okay, thank you. Last two and nobody else come up because I've got to stop after this. Sir? Man 8: Yes, my name is Byron Nelson, of the Nelson Concentrator. I have to tell you, Jay, that I've been attempting to lose weight, and if you couldn't see me, I must be succeeding. (Laughter) Anyway, I want to talk a little bit about the facility of giving something away to make your business perform. What we sell is a machine for the recovery of fine gold. We, 20 years ago, it started in my carport with sampling done in the back yard, and then eventually, a little larger, a little larger. Today, our lab takes in samples and does work and charges for it, and is pretty well selfsupporting. And the machines themselves are known world-wide, and we are the excepted authorities in that business. And this is all from giving away the sampling effect in the beginning. And something a little later side, I was recently - became unengaged, if you will, and went to a dance and spotted a very beautiful lady get up to dance, and she was having a little trouble on the floor with her partner, and I thought, 'Oh boy, this guy can't dance.' So, make a long story short, I worked up the courage to go ask her. Guess what? She couldn't dance a step. Not a step. And so a little later, I thought about this and I started watching my feet while I was dancing. I went over, gave her my card, and said, 'Here, call the cell number on that card; you want to learn to dance, I’ll teach you, no strings attached.' I gave it away. Guess where I am today? (Laughter) Man 9: My name is Joel Burrows, I'm marketing consultant; I'm part of your Tuesday night class. One of the things that struck me when we were sitting at the table, is just the power of talking with people. And in particular, if you come to an event like this, where you're working with other people that are very entrepreneurial, the power of talking with those people. Somebody asked me how I got started. I just talked to some people I thought had good products, and now I've got some clients lined up, and I'm moving forward. And that was it, so... [Inaudible 10:26 - 10:31] Jay: Off, on? Sorry, I was talking over there. From this break forward, until you get on your airplane or get in your car to go home, every break - and
you go take care of your bodily functions and make your phone calls, and turn your phones back on, use the rest of the time to go up to five, ten, 20 people you don't know, tell them who you are, what you do, what's your insight, what's your outcome; and every time you go through it - because when we get done with lunch, I'm going to get into deep stuff; 25, 30 key elements and you're going to do stuff with the table, and we're going to start building on it, because we're ready now. And share your insights, because that is the dynamic that'll make this the richest - open up. This is a group of 650 people who are ready to basically contribute, collaborate, respect your confidences, celebrate your successes, commiserate; but not allow you to wallow in areas that you have not been successful, and will share their insights, their experiences, but only if you open up. If you stay with - if you go and you hang out with your own people you came with at lunch, that's so shameful. If you find three people you like right now and you spend all your time with them and don't get a chance to commune with 30 or 40 other people; that'd be so tragic. Okay, Mark Victor Hansen, besides being another very good and very dear friend of mine, is a remarkable man. He's dedicated - I don't have your bio to read from, but he's dedicated his life to really moving, motivating and inspiring, teaching, training, just…
Jay Abraham Mastermind Marketing 5 …transforming men and women in business, and in personal life, to see and see so much more potential. He has written countless books, he's done tape sets, he's probably best known today as the co-author of the Chicken Soup for the Soul series, which has sold so far...? Mark: 80 million. Jay: And growing. How many different variations? Mark: 61. Jay: 61 variations. He and another friend, colleague, client of mine, Bob Allen, just came out with a wonderful book called 'The One Minute Millionaire.' It is on The New York Times as...? Mark: Number one this Sunday. Jay: Number one today - this Sunday coming up. (Applause and cheering) Killer book, killer book. Mark is very graciously come down here just to contribute to you; again, he's a dear friend, we have a lot of commonality.
We're both attention deficit, (laughter) which means we're extraordinarily creative geniuses, right? Mark: Correct. Jay: And we forget and lose everything. Whatever you ask us to talk about, don't expect it, because we'll do whatever we think is in your best interests, and normally, we're insightful enough that we're correct, and if we're not, you're stuck with it anyhow. Mark and I share the same birthday, and we have many similar traits, and we both like very conservative ties. (Laughter) And with that stated, Mark is going to come here and spend an hour teaching you...what, Mark? I'll get out of your way and get my papers outta here, first of all. Mark: First of all, thank you Jay, thank you. Jay: Thank you. Mark: Give Jay a round of applause. (Applause) You know, I have paid to come here, so it's nice to get it turned around. (Laughs) How many of you read a Chicken Soup for the Soul book; could I see? Raise your hands. Oh thank you. How many of you read a second helping? Third serving? We still have a market. (Laughter) Lady here in LA gets a brand new car, she's en route to work, has a fender-bender. She's all distraught and all discontent. The guy said, 'Look, lady, it's a minor accident, go in your glove compartment, pull out the insurance papers, we'll take our notes and be on our way.' Goes in the glove compartment, finds the insurance papers, and on the top is a little yellow sticky from her husband. It says, 'Honey, in case of accident, remember it's you I love and not the car.' All the women, go 'Awww.' (Laughter) All the guys, go 'Yeah, right.' (Laughter). We've done all those Chicken Soup books for different markets, and we won't sell a book that sells less that 3 and half million, and Jay asked me to talk to you about how to do that. And one of them's called Chicken Soup for the Expectant Mother's Soul. I mean, in the world, there's 90 billion new-borns a year, so it's a great market. We've got a story about a 4 year old who's a thumb sucker. Parents have done everything; they've wrapped it, coated it, tapped it, [unclear 2:58] combed it, and nothing works. Right before they're off to church, Dad says, 'Boy, you keep sucking your thumb, here's what's going to happen to you. Your stomach's going to expand and it's going to explode.' Sure enough he sits in a pew next to a woman who's 9 months pregnant. (Laughter) All the way through the service he's looking at her askancely.
After the final 'Amen,' he walks up to her and says, 'I know what you've been doing.' (Laughter) With that, how many of you would like to write a best-selling book? Could I see you raise your hands? Oh great. Everyone touch yourselves and say, 'I’m ready!' (Audience responds) Touch your neighbour’s should right and left and say, 'I see you're ready.' (Audience complies, then laughs) Now, one of the ways to sell books is obviously to do seminars, and we do cartoons, so you can go to cartoons.com and find your own, and they should be self-deprecating. This one says, 'Could we complain that you need it? Number one, chicken soup is good for the flu. Number two, it's nobody we know.' (Laughter) And if you really pay attention to Jay's seminar, you're going to need this one, from our friend [3:53]. It says, 'Dear IRS, I 'd like to cancel my subscription, please remove my name from your mailing list.' (Laughter) Now, I start with that because some of you say, 'Well, I can't be funny.' Yes you can, you just steal the good cartoons, but pay for them; that's intellectual property if you want to do that. So if you ready to have a mega best-seller, one more time say, 'I'm ready.' (Audience replies) When we started, Jack and I got turned on - actually I don't know to say it 134. 133 publishers - sorry there's two things. First of all, we went to New York. 33 publishers all said, 'Hit the road, Jack.' I said, 'Look, it's okay if you don't like him, but I'm a nice guy.' Then our agent fires us, then 134 publishers here at the - it was then Book Ex - it's now BEA: Book Expo of America. By the way, it's back here in LA this spring, and if you're going to come, I do a whole days' seminar in front of it on how to make every book a best-seller, and this is just the tip of the iceberg. We left a copy with two guys that owned Health Communication. And they said, 'Well, we'll read it overnight,' and the next morning they said, 'Well, we cried, and our soaked shirts, and it was really good, so we'll try it and we'll publish 20,000 if you promise to buy all of them at 6 bucks each,' which is exactly a Vanity Press, which I would not recommend. What were you prepared to do? If it doesn't work, you've got to be prepared to selfpublish. Can you make a fortune self-publishing? The answer is Yes. What's the answer; everyone thunder it. (Audience replies, 'Yes') Yeah. There's lots of ways to do it. Whoops, let me get this clicked back so we can keep moving. Here's the deal; write your book. Once you do a great book, it's got to be an excellent book, what kind of book has it got to be? Great and excellent. What's it got to be? (Audience replies). Excellent and great. Then you're only 10% done. That's why I keep studying with
Jay, and yeah we do have the same birthday, and we go to each other's birthday parties and we love each other's families and all that. And one of my daughters wants to study marketing with Uncle Jay. So anyhow, the point is, 90% of it is marketing, hustling and doing it. Sorry, Mr. Mandel, now that you've been published, I'm afraid you have to leave our writers group. (Laugher) You know a real best-seller takes a year and a half. How long's it take to get to top? A year and a... (audience replies, 'Half.) We hit two slides at once, but we started June 28th, 1993; the book came out. We did all the buck-breaking behaviour, we did all the normal marketing; we didn't do all the bypass marketing. And you've got to have it hit in the first month. How fast you got to have it hit in? The first...(audience replies 'Month.') Because every book that goes in a bookstore today is a consignment book. That means if it doesn't roll and you don't have velocity and network marketing, they call it; momentum, that book gets to go kiss, kiss, bye-bye. That's why you go into a bookstore every month and it rolls over, and you say, 'Well, these authors; it's not fair that Michael Crichton goes back to number one.' Yes it is, I love Michael Crichton and I read him; but you know, or whoever. And we sold 80 million books because we hit titles that they want. And we've hit some titles that people don't want, and we've got to eat it lately, so you know, I'm telling you both sides of it. Write a great book. Everyone say, 'I'm going to write a great book.' (Audience complies). Now, the easy way is maybe write a five page article; content-rich every day; and I know tomorrow when we're in the yeah tomorrow or night - Monday, Bob Allen's going to do a TV teleconference from Atlanta.. (Audio missing) One minute, and from CNN studios, he's going to talk to you, and one of the things that happens is that you write a great book and Bob; why I bought that up; is that he says every word he writes is worth $20, so every day he writes 1,000 words no matter what time he has to get up, so he knows he's got 20 grand before he goes out; and it's that or exercise, so you'll see in pictures... (Laughter) He skips exercise with me a lot. Anyhow, make it as universal as possible or make it as specific as possible. You can take over either one of those two markets. It works both ways, but when I did this part of the slideshow, it was for Chicken; use a panel of diverse readers. When we interview the 101 best-selling authors, like Kenny Blanchard, and Spencer Johnson, who wrote 'One Minute Millionaire,' and then he went on to write a lot of other books more recently; 'Who Moved My Cheese,' for
Spence; is that both of them said, 'Look, feedback is a breakfast of champions.' Everyone say that please. (Audience complies) Everyone in marketing knows you test, test, test, test, test. You die behind the scenes, not in front of it. You never want to die in the marketplace. And when you're asking people about your titles, you never ask stupid questions like everyone asks; 'Well, do you like this title?' 'Yes.' 'Are you going to buy it, are you going to give me 20 bucks for it?' If they say no, then don't do that title! But I'm talking over a large number of people, and like when we did the teenage book, our publisher said, 'You guys have blown it this time, they'll never buy it. I've got teenagers that buy CD's, concert tickets, and clothes.' Well, we sold 12 million of just Teen 1, and we've got four in that, because you do both horizontal marketing; one through six, with Chicken one, and then every book that works, and Mother's Soul; but then you also go over vertical marketing, where we took over the women's market, the mother's market. Right now we own the Christmas market. We got a brand new little book out called 'Chicken Soup for the Christmas Soul - Kid's Treasury.' Every book that sold, our partner is Salvation Army; they're giving - we got the names of a million kids that have never had a book. Well, I grew up in abject poverty; my parents - we had books in Danish, because my parents were Danish. I though everyone went to the Danish Brotherhood on Saturday night, and had friends like Torvill and Sven and Una, and stuff like that; names you never heard. So you come up with a great title, and here's some great titles: Who Moved My Cheese? How many of you have read Cheese? Okay, can I see, raise your hands? Spencer makes $2 million a month with that one book. He's a medical doctor who went to Harvard; he’s a brilliant guy who I'd love to spend a half hour talking about just him. Obviously, Chicken, One Minute Manager did it. Think, Grow Rich; Napoleon Hill is about 60 million books. The Prayer of Jabez in one year sells 11 million copies, by my buddy Dr. Bruce Wilkinson. How many of you read Jabez? What happens is, it does what it says I'm going to ask you to do. You've got to have instantaneous behavioural change. Everyone say it please. (Audience complies) When you read a Chicken book, it gives you one of seven effects. It gives you - when I talk to 10,000 marines who say, 'We don't cry, but you made our eyeballs sweaty.' (Laughter) You know? Or you get a lump in your throat or a change in perspective, like the little kid said, 'Dear Mark and Jack, I'm 10 years old and my name is Ryan Owen, I'm in the 4th grade. I never bought a book, but every day in class my teacher reads a story to us to calm us down, and I saved my allowance for 6 weeks and bought
your book and I went home and read a story to Mommy, and for the first time ever, she cried. We had a heart-to-heart, soul-to-soul talk.' Do we need more of those or less of those, everyone? (Audience replies 'More.') More. And Jabez does that; it gets you to believe some stuff you may never believe. Fish teaches you how to do customer service at a level, because their students are both Spence and Blanchard. Have giant goals. We say we sell a million and half in a year and a half; we're going to do a billion books by 2020 A.D. It doesn't cost anymore to have big goals, and here's the goals that we started with, and we did a million three the first year, and then five million of the original, and then - we get called up by the guy who owns the Costco Price Club, Saul Price. He says, 'Look, you guys, everyone thinks it's a cook book, and I want you to do a cookbook.' I said, 'Saul, we don't do cookbooks.' He said, 'The first order is a quarter million.' I said, 'Saul, I can do a cookbook.' It just - it got me real quick. We're at 80 million books right now in 2002, and our goal is a million books, but we had a kid that took a picture with me at the National Speaker Association; Zig Zigler, this kid, Pete Walken and myself, and writes me a letter and says, 'I'll show you how to sell a billion in a day.' Jeff calls me back and says, 'Do you know the kid.' I said, 'I’m in the picture, you saw that, but 30 seconds maybe I met him.' So I called him back and for three hours he told me how to sell a billion in a day, doing payroll deduction through every corporation. He's the number one guy in payroll deduction. It's taken us two years to set it up, but it's what we teach in One Minute Millionaire, right? There's two ways to get rich, the long way and a short way. Which one do you want, everyone? The...? (audience replies, 'Short way.') We want you to do both. Right? But the long way is compound interest. A dollar a day, 66 years, 25 grand but at 10% is 2 million 750 and at 20% it's a billion dollars. Everyone say 'a billion.' (Audience complies). Just one dollar a day, if you get 20% like Warren Buffet, like 3rd, 5th bank he has for the last 32 years, like the Gerard Group. There's a ton of us that are making that kind of money. And you sit there - 'Well, I'm just going to pee my pants and stay broke.' Well, that's a dumb idea. (Laughter) I teach the best thing you can do for the poor is not be one of them. (Laughter) My next door neighbour down in Newport Beach has the largest plumbing [unclear 5:13]. On the side of his truck it says, 'A flush beats a full house.' (Laughter) The list that you want to get people to buy from - are four lists now. New York Times, Publishers' Weekly, USA Today. When we came out with - on October 17th with One Minute Millionaire, we did affiliate groups, and we mailed out 12 million emails in one day, and it started at Amazon,
which is the fourth one not listed here, I forgot to plug it in, but is at 87,000. By 10:00 we were 705; we melted down their system, and then we went to number one, stayed there for the next 5 days. We decided to do that again December 3rd, just to blow the rest of the books out of the bookstore; because that's the new buying sigma, because Amazon's the world's biggest retailer, and every teenager knows that's where you go. And the point is, we did it again and screwed up their whole systems, and - the other thing we did when we were on this book tour; we're in headquarters where Amazon is. They've got more stealth there than when I went to the Pentagon, after we did Chicken Soup for the American Soul. It was amazing, the buildings are all covert and it takes a while to get you've got to carry a card in your pocket wrapped in your money that says, 'I'm so happy.' Everyone say, 'I'm so happy.' (Audience complies) But it's got to have your goal on it, and it's got to be signed by you and whoever makes a difference. When Jack and I won the Book of the Year, General Colin Powell was in the green room with us for breakfast; he says, 'How do you guys sell so many books?' I pull out my little thing, and Jack's kicking me like my wife does under the table; 'You're going to show a four star general that card?' I said, 'Well, that's what we used to sell 15 million books a year, I think it's a pretty good idea.' And you've got to look at it four times a day. Why? How many of you have clutter in your lives? How many of you ever get off track? How many of you procrastinate? How many of you got any messes going on, at any level? Mentally, physically, financially, socially, spiritually, marketing? You have this, and you look at it breakfast (Audio missing) Because the last thought you pertrabate your brain cells with is when you're going to get - I had a woman come up to me and say, 'Come on Mark, tell the truth. Don't you ever get depressed?' And I said, 'Nope, never.' And she said, 'Oh, how depressing.' (Laughter) If you ever need me just come to Markvictorhansen.com, it's that easy. Write a wall of a business plan. But do projections for your five years, ten years and a hundred years. Richest guy in Japan was just with my buddy Harvey McKay, How to Swim with Sharks; and he said 'Could I see your business plan?' The guy showed him a 300 year business plan. He said to the Japanese guy, 'How are you going to do that?' He said, 'Patience.' (Laughter) You know? Invest 90% of your time marketing, selling, selfpromoting, advertising, hustling new business. There's always a way. Everyone say, 'There's always a way.' (Audience does)
We came on this new book tour, everything went wrong. First of all, I had sniper in Washington, screwed up all that. Then the election screwed up all that. Then the Angels won the [unclear 00:56], the night we're here, and screw up our audiences, because we're doing an infomercial. So there's a lot of stuff that can get in your way. I want you to go to Book Expo of America; the number is 800-673-0037, or it's Bookexpoamerica.com. You know, there are 10,000 publishers there. Why are there 10,000 publishers? Everyone can get published, that includes touch yourself, say, 'Me.' (Audience complies) Why? Because Ten Speed Press ten years ago said desktop publishing is going to make it, there's 78 million of us with racing bicycles; I'm a racing bicycle aficionado; I've been racing since I was nine years old; the point is, is that they made it because there was a market, there's a niche to grow richer. Jay and I are even working on a book called 'Grow Rich in your Niche,' which is a title that I worked and we've talked about at length. The point is, go there - and it's right here in LA, and you're for three days - for me the first time I went in, it was an intellectual orgasm, because anyone who does anything has got to turn it into a book. President got paid $10 million for a book he hasn't finished. (Laughs and laughter from audience) He'll be there this year though, I think. And he's doing a tell-all story in one room while his wife's doing a tell-all story in another room, and Monica's in the third room, so I'm interested in hearing that. (Laughter) Any of you find that utterly fascinating? Yeah, I do. Anyhow...(laughs). Oh well, okay, I'll keep moving. Selling, marketing and self-promoting is what it's all about. Be innovative, do stuff that nobody else ever did. We're doing Chicken Soup for the Grieving Soul; we pre-sold 6 million to all the funeral homes, cemeteries, mortuaries, and crematoriums, before anyone's even seen the book. Why? Because they trust us as a brand. When I read Steven Spielberg’s book, it said he made $800 million on E.T. and made a billion and half on licensing. I said, 'Jack, we're going to go into licensing.' He says, 'What do you know about licensing?' I said, 'Nothing, but Bucky when I was in high school said, 'Every system has an inside and an outside,' so let's find it; it's only a 20 year old system, I'll memorize it.' It does 135 billion a year, we've now got 39 essentially number one products; all products bounce up and down, but I mean, we've sold more calendars than anyone, last year we 897,000 compilation discs where we put together music with Ryan O'Record right here, a couple of blocks from where we're being right now. And then I do this centrefold with the words in it.
Do some stuff that never did it, and make it happen. Everyone say, 'I'm a make it happen person.' I'm a...?(audience replies) This is what Jay talks about 100% of the time is, are you actionable? And then the rule of seven; you've got to do seven - hold up seven fingers. What have you got to do? Seven marketing things, every day, no matter what. Don't go to sleep until you do it. If you miss seven on Monday, how many have you got to do on Tuesday? (Audience replies '14.') If you miss Monday and Tuesday, where are you at on Wednesday? (Audience replies, unclear) You're in deep doo-doo, right? Yeah. WE did Chicken Soup for the Writers' Soul with Bud Gardner and I did the last interview here with one of my heroes. The guy who started the Tonight Show. His name is...? Not Johnny Carson, he was on it. (Unclear responses) Not Parr. Steve Allen. Steve Allen writes the way I’m asking you to write, just like I say you ought to multi-task, because you’re intrinsically a multi-tasker. He had 28 tape recorders at his house, and he would run, and he wrote songs like - little money makers, like 'Happy birthday to you;' did you know that? I mean the guy just dictated, and he says, 'You never have a mental block.' Isn't that good Tony? You just - if you hit something, you go to the other project that you're hot on. Now, the other thing; I'm flying back in Orange Country, and I'm a neophyte on a computer basically, I want to be fast and efficient and grow to an aficionado, and the guy next to me says, 'You're too slow, let me show you the better way,' and I said, 'Show me.' I said, 'What do you do?' He said, 'I'm the head of innovation at Microsoft.' I said, 'My boy, my boy.' (Laughter) Bill Gates created Power Point, which I hope all of you use to Power Point. Picture your project, because your mind is 87% visual. He learned from Walt Disney to story board everything, and that's what he created it for. I got 58 projects going, which drives my wife and my team; most of whom are here, I'll introduce them in a minute to you; nuts. I said, 'How many of you guys work with Bill Gates?' He's got 1600 - that's one thousand six hundred; different Power Points in they work on every day for three hours with Ian Bomber and Nathan [unclear 4:51], and this guy, and seven other people, and they got all of them. Why? Because you weren’t born endowed, you were born over-endowed. And you go on, 'Oh no man, my doctor, my teacher taught me I should have one thing at a time to do.' They're so full of crap, they don't know what they're doing, and they're broke, probably. I wouldn't listen to someone who doesn't have any money.
Is Pointer talking to this thing? I don't know if he is or not. But he's the first web-centric guy. He's the guy who - they hired him and our buddy, Dave Berry; who's very funny; to sell all the stuff for IBM when they did Dragon Master and all that. He makes about $7 million a year doing a niche that none of you have ever even thought of. He does parachutes and every year he parachutes with George Bush senior, and you see him, and I've had him at some of my seminars where we have it on the screen that he and George Bush are parachuting down; then he runs into side bar and unzips his thing, and starts - unzips his coat, not his pants. Anyhow, [unclear 5:40]. Be your own - or hire a PR person if you can; guys like Rick Freshman, [unclear] is good, Bob Newman's good, Ariel Ford's good. There's a lot of good ones but you want - if you're going to do books, do somebody in the book industry; they're going to cost you about $5,000 a month, but make them actionable. In other words, if you're going to do radio drive time, which works from - here in this Coast, 3am to 6am, basically, because people go to work pissed. And when they go to work disenfranchised, they want to get out of what they're doing and do something else. So it's the zone of our heart touching books or our moneymaking books. And then, phone interviews. When we interviewed Scott Peck, he said, 'Look, I've been 12 years number one on The New York Times Bestseller List.' So we waited out his name, put ours where it was, but he says, 'I've never missed a radio interview. Now, some days I do 20 so I don't have to do them for 20 days, but that's how I made $40 million with one little book.; Everyone take your finger, point it at your temples, go, 'Hmm, that's interesting.' (Audience does) Now, those records are being broken by the second richest woman in England's name - she's a writer, her name is... (inaudible reply from audience) Yeah after the Queen; here's a woman who's got such galloping chutzpah that what does she do? She says, 'Coca-Cola, if you want to do this thing -' here's a lady who wrote her book at McDonald's for God's sakes. Right? And here's a woman who says, 'You can give me $160 million and we'll start putting it in our movies.' So can you learn a lot? The answer is yes. Can you study this? Yes. Writers, I think are tremendously interesting. Be on magazines. Here's one of the magazine's I’m currently on, and we have the owner in it. This is called Personal Branding Magazine. Peter Montoya stand up. Give this man a round of applause. (Applause) We're going to pass this around so you can look at it. Peter's had myself on the cover, Wyan on the cover, Steadman Graham, Oprah's boyfriend, on the cover; does a lot of them. He's going to one with Jay. Take that, pick that, pass it around.
You need to be on covers. At Christmas time you need to be on a dozen covers. You say, 'Well, there's not that many.' There's 14,000 magazines; there’s 18,000 newsletters. If you can't do it, it's because you haven't done anything. Not me; I’m afraid to call somebody else how to do it. They've got to put somebody on the cover, why not you? And have fun doing this thing. Right? Make sure you give a toll-free number. Now, the number that made 200 million the first year came out was 800-FLOWERS. It's called a vanity number. Why? The average husband goes home, and if you want to know how important an anniversary or birthday is, try missing one. (Laughter) It's called cut off for two weeks, gang. Duh - my little teenage daughter would go 'Duh.' Right? Ours is 800-SOUPBOOK. When we did some radio interviews, we had to say that three or four times, and we'd get 58 calls in the next few minutes. It's amazing what can happen. You've got to make it easy for the client. When you're selling books though, you've got to do it - the way we did it is all our stories are three pages or less. And what we said it, 'Did you read page 23?' Because it's a paragraph. I hear you say, 'How important's the story?' When we're trying to sell - the guy who does America’s Funniest Home Videos, Vin [unclear 8:32] on ourselves; we're there for two hours, he'd tell us, 'Reality TV is what's hit now, and you guys are out of the zone.' Then his partner, Lloyd Winthrop’s, says, 'Last night my school teacher wife came home with that little book;' this is five years ago now; 'And read me one story. Can I tell you the story? Little old man is sitting on a bus on a country road, and it's bouncing up and down, but he's carrying two dozen red roses. Across the aisle is a demure 17 year old girl, beautiful blonde, who keeps looking askancely at the flowers. After a few minutes he arrives at his spot, he walks over to her, lays the flowers in her lap and says, 'I was going to give them to my wife. But I think she'd like you to have them.' Little girl starts crying uncontrollably and watches as the old man shuffle-foots off the bus. As the bus takes off, he watches as he walks into the cemetery.' People read the book at bookstores; when no-one came to my book signings, which why would they come? No-one ever heard of Chicken Soup, right? It's Jewish [unclear 9:25] and all that, but it didn't register right away. But then they would read it and they'd go, 'Oh I like this.' And then our book became a handle-on book, which was our goal. So you've got to have something - the equivalence, if you've got it, is a movie trailer.
Right? Trailers are now at the front-end of the movie, and you get to watch them for 20 minutes before the movie starts. Do free reports in the periodicals, journals, newsletters, but always include your name and phone-number so they can get to you. Like, if you want to go to my website, we download free - a thing called Idea Tithing. I was the spokesperson the American Red Cross four years ago; they're out of blood, I was with William Shatner, Liza Gibbons; and I said, 'Look, chiropractors and I have been friends - or 60,000 of them, I'll do - how many DC's I've got in here? Any chiropractors? Got three or four, five. Okay, so we sent out a letter and said, 'Look, doc, I want you to call 800-GIVELIFE, I want you to adjust a hundred patients free because you and I have been friends for 20 years. A lot of you made millions because of me.' Because I did all the seminal tapes on - when we finished Chicken Soup, both Jack and I are upside down - about $140,000; we'd invested everything and we didn't have any money, and I'd been working with chiropractors, so I'd do certain tapes, you know, 'How to do a Million Dollar Practice,' because I’d met all the guys and ladies, and 'How to do a Paediatric Practice,' or 'How to get the Right Chiropractic Assistant,' and all that. Anyhow, so I sent it out to all the docs; we had 30,000 of them bring in 100 patients; we went up to 300,000 pints of blood in one week. All because you ask. Because you've to A-S-K to G-E-T, but every one of you can do that; because if you'll be charitable towards somebody you need to do business with, there's no limit to what you can do. Befriend the gatekeepers; there's 33 of them in the book business. I'll just give you one. Ingram used to be the seminal distributor of books. They did it to everybody. We call YSG, who was running it before they tried to get bought by BN - B&N, and we said, 'We'll buy breakfast for all your telemarketers,' because everyone calls up and says, 'I want three of this, six of this,' and I'm in Moose Jaw, Canada; and then they said, 'Well, what's hot?' and they said, 'Ohh. Mark and Jack were just here with Chicken Soup for the Golfers' Soul; they hugged me and they kissed me and they signed it. (Sniffs) Their story is so good, can I tell you the story?' And then they say, 'Well, we'll take 20 of that,' and it was great, and we went up 17 points on USA Today the next day. Because gatekeepers can do it. Enrol other speakers. When we went to the National Speaker Association, we did a show and tell; we said, 'We'll give you our One Minute Millionaire free; we got a thousand of them, take a free book,' and then we said, 'We'll do a telephone call with all of you and teach you how to do it.' And now for the whole month of December,
they're talking about our book. Like I doubt Brian Tracy mentioned it today because I was coming, but I'm going to show him in a minute, and stuff like that. You can get incredible results if you ask. When you're doing the book signings, request an ad budget. Do stuffers, get magazines, create commotion. When nobody came to the biggest bookstore in Canada, I bought balloons and I broke them on the crystal like this, and then I started taking pictures of me - anybody walking down the hall, if you walk down the hall, Doctor, you and I can get a picture. Then I say, 'By the way, did you see this book?' Whatever it takes to get it done. Befriend the bookstore owners, get pictures of them. Today, you’ve got to carry your digital camera, and a smal camera - S-M-A-L, one L; camera is $109, take 284 pictures, you can carry it in your pocket, it's the size of a postage stamp. Get pictures and then say, 'Can I email those back to you?' And you write it 'I like you,' and then you say, 'Are you going to give me front promotion?' You'll be the only author that does stuff like that. Create a videotape. If you go into any of the bookstores right now, Hulk Hogan has a videotape. He says, 'I'm going to wrestle with you if you don't buy my book.' Well, it's an interesting little idea, right? Have your publisher buy the - now this - the publisher has to do, because this is expensive real estate. A book store today is just a piece of real estate, just like a grocery store is a piece of real estate that you put groceries in. And what you want is the front of the store when they walk in; the window, the aisle or the end aisle is where the people buy, because they bump into your book. And then obviously you've got to have a good cover and all that. There's two kinds of stores. There's book stores; B&N, Books A Million, all that stuff, media players; then there's club stores. Club stores now outsell book stores. Why? Because it costs more or it costs...? (Audience replies 'Less') Duh. Right? BJ's; there's a lot of them, and there's one company, Advanced Marketing, that sells all that stuff. Be creative. I told you I had the chiropractors sell on the book, and I was doing Chicken Soup for the Chiropractor; so we got Chicken Soup for the Dental Soul. How many dentists have I got in here? Right. You give your - I know that you're a special surgeon, I heard when you stood up, so you're disqualified, but only - he'll tell you my numbers are right; only half the people in America go to a dentist, am I right Doc? That doesn't work as far as I'm concerned. Does everyone need good dentistry? What's the answer? (Audience replies 'Yes')
It adds 10 years to your life; all that kind of stuff. So the dentistry - we've increased dentistry by 10%. And as a result, I met the guy who created dental floss; he's a billionaire with a piece of string. Why aren't you rich? (Laughter) Duh. Is there anybody here who hasn't had a piece of string in their life, I guess? Create events with hoopla’s. Well we did - we tithed on every book, which I recommend to you; we teach it in One Minute Millionaire, if you're not into it - and you don't have to do it to your Church, you can do it to your philanthropy cause or your creation; but when we decided to do it in LA, we went to Union Rescue Mission; we fed 10,000 in LA and Turkey Day was the cliché I wrote with Jack, and we were on the front page of USA Today. Got bigger promotions than anyone else. You can do all kinds of cool stuff. Identify a charity, like I said, and then you get to put their emblem on it. Red Cross has a million five hundred thousand volunteers at centres right up to number 1. You know, because they expose it from inside, and they got the e-list of every veteran in America. So when we did Veterans' Soul, who did we partner with again; sent it to the top? There's our books, and we did it all in a decade. Now, some of you are going to be told, 'Well, you can only promote a book in 90 days.' In 90 days, you can't make it a bestseller. I said it takes how long? A year and a...? (Audience replies, 'Half.') But the bookstores will tell you that, and the publishers will tell you that. That's why right now to sell a million books; we're going to be on a decade-long plan. And if you want to help us, we want help. And not only do I do the books, but we also do these seminars. I do seminars; we've got Mary McKay, who's sitting right here somewhere, where are you? Stand up Mary, just so they see you. Give her a round of applause. (Applause) She does all my seminars. Then Bob and I did a seminar called the 'One Minute Millionaire Seminar,' which we're selling on the infomercial, and then for those of you that are millionaires that want to go towards being a billionaire, and also be charitable, philanthropic; in the zone of like a Paul Newman, we have my dear friend Pat Burns who runs a millionaire's summit. Give her a round of applause of you would please, (applause) and talk to her about that if you're interested. Royalties; for a starting author, you get 6-10%, and they're going to want two books, and the average advance is 12 grand, and you don't get paid any more until you recoup the advance. If you're an established author, you get 20%. Now, you've got to make sure you've got a good intellectual property attorney. Do we have any intellectual property attorneys in here? It's the only kind you want to be negotiating this, because this is a slippery slope. This is the same as the movie business, where you see
Eddie Murphy and Art Buchwald make - movies make 120 million or when I won the Horatio Alger Award, my classmate, one of them - one of the ten of us, is Tom Selleck, and he paid for a movie called Three Men and a...? {Audience replies, 'Baby.') And never got paid one penny. 120 million it made, and he didn't get paid a penny. Duh. 'No, I can do it myself, I don't need no lawyer.' Yeah, bend over. Okay, so it's real easy. Now, Jay told me to tell you the truth, so if that offends any of you, write Jay. He doesn't get enough mail. Mega best-selling authors like Stephen King and that get 50% of the deal, and today you can do joint-venture deals that are a little even better than that. What am I doing now? Sell the book first, then write it. Sell the book first, then write it. Just like when I started the seminar business 28 years ago after I went bankrupt. My guy taught me, sell the seminar and then write it. So I went and sold in little insurance offices and then I went back and stayed up all night, freaking out, 'How am I going to put this together?' Seminar products, service or license. Do you think Bob and I wrote - I'll show you - we're going to show you how to do it. I always begin with the end. What do you begin with? The... (Audience replies, 'End') Start at the end. We said, 'Look, we're going to write a kick-ass movie that outdoes Titanic, outdoes Men in Black. We've got the first movie that we figured out how to market to get 10 million butts in seats day one. Bob sat on the airplane and rolled me any idea, and I said, 'Cool.' We went to New York - now, it is Random House that bought us - 13 publishers said (makes noise), 'can't happen.' this little that's holding our butterfly. Ariel Ford was getting married, she had Kenny [unclear 17:43] to sing at her wedding, they had a little tetrahedron under every chair, we - when Kenny was done singing we released the butterflies, and I said, 'Wow.' Because in sales, you all know the five steps - I don't know what Brian taught today, but - he probably taught prospect, present, and follow-up. I teach it a little different: prospect, present and close. But the trip is - Brian and I are great friends - the trip is, is that we released butterflies. Well, the Chairman of the Time Warner's diving under his table; we've got it all on videotape, because we bought a videotape and we bought a little (laughs) cell cameras, and they're going, 'Aah! Insects.' And it was great fun, so it worked a little different than we thought. (Laughter) The lady with the blonde hair, in the middle is the world's greatest agent; sold 600 million of Danielle Steels' books; John Grisham, John Grey, and now our One Minute Millionaire. And when Random House said, 'Well, we've give you a quarter million.' I say, my little teenage daughter's got
this, everyone....(Audience says, 'Duh') Duh. How much have you got to get? A million. Bob and I are rich. Bucky taught me, get your feature days paid for so you can afford to do projects. What can you afford to do? (Audience replies, 'Projects.') Projects. You can sit here and you say, - pick anything, right? I'm helping inspire the planting of 18 billion trees around the planet, right? So if you're alive, plant three trees, I ask all of you. We're going to clean up the ocean with Wieland; we're doing Chicken Soup for the Ocean Lovers' Soul, we're [unclear 18:56] ten miles of the Great Wall of China, right before the 2008 Olympics. We're going to re - just like I'm forcing the planet, we're restocking the sea with cage fishing like I just saw in Ireland, and it cleans it up. And just - there's such cool things to do if you put together a team and got a dream. Now, we're on our book tour and that's what our cover looks like. Now, when we sat with the world's best book cover designer, which we wrote in the contract that we had to have; the guy did Grisham and my other hero, Crichton, and all that. He gave us a garbage cover, and we had a little 'Come to Jesus' meeting, and we said, 'Look, it's our cover, and we don't want a cover that looks like a business book.' Because you have to have an element of distinction, right? So, have you ever seen a business book look like that? (Audience says, 'No.') No, and you haven't seen anything that bold and it stands out, and we said, 'It’s got to be face out on every cover,' so we just want to do it. Why? What is the deal? Whoops. What's our vision? Our vision is this. I’m talking about thinking big, right? You've got to sell a million books pre-pub. Which, by the way, we almost pulled that off. Ten million books postpublication, because we need ten million to find a million people to play with us and work hard enough, be actionable enough, to use Jay's word; to get a best-selling series. Never do something without sequelling and prequeling it. Does that make sense? 'No, man, George Lucas does that, duh.' You know? Blockbuster Movie-s, it should be; I should pluralize; it created a million millionaires. How many of you want to create an extra million because of our book? Raise your hands. How many of you are willing to give away a million if you make an extra million? I rest my case; we're going to have a million times a million, that’s a trillion dollars. I don't care what your philanthropy cause - Church, temple, [unclear 20:31] is, you did that. And we're going to create billions, actually trillions. Now, you start with the end in mind, so what do you do? You write up what's going to happen before it happens. Publishers' Weekly, January 1st,
notice it's 2003; who wrote the copy? Bob and Mark. (Laughter) So its New York Times tops of fiction and non-fiction list; we're right now number one, but we want to be on both lists. How do you do that? Volume. (Laughs). You know, you can do - and by the way, just like - they say, 'Have they given you any crap about that?' The same thing they did when I wrote Chicken. They said, 'You can't be in the best-seller list, you're a multiauthored book.' I said, 'Well, you've got the Bible there, and that's got 66 authors.' (Laughter) What does Jay teach you? You've got to out-think them, out-market them, out-serve them, out-sell them, out-work them, out-manoeuvre them; because they're going to try to sink your ship. Every good idea is born drowning. Which is why you don't let your lawyer in at the front-end of your deals. (Laughter) Anyhow. One Minute Millionaire - and if any attorneys are in here, my little brother is a JD, and I love JD's. Sometimes. When they're on my side. Here's the marketing plan that we did, because you've got to have a kickass marketing plan. You're all in marketing; what did Jay just teach you that Peter Drucker says? Who, if you ever see Peter, he sucks on his pipes before he ever answers a question, and the times up. It's interesting to watch Peter talk. (Inhales) Good think he came along before dope. Could you imagine him sitting in front - (Inhales again, audience laughs) Here's what Jay told me to do. He says, 'Look, why don't you bring the best marketing minds together?' So I said, 'Jay, that is like a way cool idea,' so we scheduled the day, January 30th a year ago, and Jay says, 'I'll be there,' and then all of a sudden Jay wasn't there; but we bought everybody else and Bob's on the left and I'm on the right. And this is - we had Joe [unclear 22:22], we had Joe Sugarman, who makes $160 million a year with Blue Blockers; owns over a billion dollars’ worth of Malian real estate; and he told us all kinds of cool stuff to do. And then Brian Tracy said - oops, I just hit black for one second. I missed it. He said, 'Well, we ought to use Occam’s Razor.' And I said, 'God that's a great idea, Brian.' And I hit Bob; 'Let's do that. (Whispers) What's Occam’s Razor?' (Laughter) Did he teach you Occam’s Razor today? Do it the best, easiest, fastest way. I said, 'Now, there's a clear idea. What is that?' He said, 'Sell one guy a million books.' I said,'Pffft. Brian, that's so good, why don't you do it?' He said, 'I didn't think I could.' I said, 'Well, I didn’t either.' But we had one guy who was my best student, Jimmy Griffin, who 20 years ago hired me as a consultant; every Saturday, I spent time with, we took him for a hundred to a half million, into a million, and then he's now the highest running guy in the life insurance business; just sold George
Soros the biggest policy in history: $200 million. So I said, 'I eat at the Harvard Club regularly with Sandy Wahl, I'll get him to do it.' Looks like that Sandy, now that he's out of the doo-doo of the last couple weeks, he paid off that 5 million and all that, so it looks like things are going to float for him again. Where did I put that little changer? So he says he wants to do it, and it looks like he wants to take a million. WE sold a hundred thousand to you, Saul, and a hundred thousand here and there. We showed this marketing plan to the little group that we bought together. We had Melanie Griffith, Antonio Banderas's wife, in the room, and all kinds of cool people. She is a great marketer, has a great company. When I showed that to Don King when he came to one of our seminars, you know, he's the guy with - Patti LaBelle in male form. (Laughter) Anyhow, Don King says, 'You know, opportunity is the greatest charity, Mark,' and he said, 'And if I knew how to market as good as you do, I'd be a billionaire.' He says, 'Hell, I'm only worth $360 million.' (Laughs) I go, 'You're doing fine, you're doing fine.' (Laughter) The goal is that we want to pre-sell ten million tickets to the movie theatres before they get there. Are we going to do it? What's the answer? (Audience says, 'Yes.') Yeah, because we figured out how. Why? What do I teach in my tapes? That the size of your question determines the size of your result. If you ask anaemic, dumb, weak questions; 'How do I make $30,000 a year?' You'll figure it out, it's easier to ask - make $3 million a year, $10 million. Hollywood Reporter; when we wrote that up too, and it's so cool - I'm out of time almost so I’m racing through this, and I apologize, but - our agent is over at Cannes Film Festival. When they give a million, those guys in the mailroom sell those scripts. This guy follows her all the way to Amsterdam; she calls us up and says. 'You've got to talk to this guy.' Guy calls up and said - we ended up putting it in a book because it was such a cool thing; because the right hand side is fiction; he says, 'You guys are my heroes. Twenty years ago I read Bob Allen's [unclear 25:00]. I started flipping single families, then multi-units, then strip malls then shopping centres.' And he said, 'I've done so well, two years ago God said, 'Sell everything. You're worth $2 billion, make the most - 15 most make a difference movies.'' He said 'I’ve got to do you guys' movie.' And right now he's just finished Anthony Hopkins - has done the new Napoleon movie which comes out in January; he's just finished Howard Hughes' movie with Jim Carrey. And so he came sat in our audience when we were doing a book tour here a couple of nights ago, and he said,
'Whoa, you guys have gotten really solid on this stuff. I got to take this book.' And he brings over a little guy that owns a company called Dreams...something or other. And Spielberg reads it and says, 'Whoa, this has also got to be reality TV; we need to have Who Wants to be A Millionaire meets Survivor, and we're going to call in Millionaire Search.' So we're getting to do that too, and we're going to - because our fastest millionaire so far has been four months, nine days, right? This husband and wife got fired, so they bought ten properties and became millionaires, and just - cool stuff. So, can you write stuff and make it come true? The answer is...(Audience replies, 'Yes.') See, the intangible creates a tangible. That's what he's teaching you. But somebody would say, 'Well, I go to the bank and show me your financials.' Irrelevant. Here's your financials - point to you self and say, 'Here's my financials.' (Audience does) You know, it's not out there. The book should be a lead generating device. This is what Bob Allen taught his teacher Steve Covey, his mentor. And then Covey went out and sold 12 million books, turned it into $2 billion. That seems like a pretty good transaction. Always think - how do you always want to think? (Audience replies, unclear). Good. That's it, and now Jay gets to come up here and interview me. Pretty exciting. (Applause) Go ahead, give me a round of applause for being crazy enough to bring me here. Thank you. Okay, you're not on yet? Jay: I apologize, they're rehearsing a band next door and I went down [unclear 27:03] and said, 'Hey, what are you guys doing? Stop that. We got an expert over here.' So Mark, okay. So, we got people in here who probably never thought in their life about writing a book for bookstores, or trying to be a best-selling author. Man, they're business owners. I have a belief system that says that every one of you should have a book or a book in process, even if you... Mark: Or even write a story for Chicken Soup, if you want, because that gives you what he's going to say next, I think. Make it credibility. Jay: Well, it gives you credibility. It gives you negotiability, gives you preemptibility, gives you distinction. If everyone's trying to get a job in a certain category, and you're the only one that's written one or two books on it, who would you hire, all things being equal? If there are five choices of a supplier or a vendor, and one wrote a book, even if he or she published it themselves initially, or co-published it with a reputable publisher; even if they didn't make a dime, just for legitimacy, first round. Is that stupid, or is that very powerful? Is it? So, let's ask two questions.
I'm going to switch from book publishing, but you just gave a really interesting overview on how you made a book a best-seller for traditional trade distribution; trade meaning bookstores. Let's take the elements that you just went through, let's totally not apply it to a book. Let's apply everything you just said to somebody's business or life. Could you just take us... Mark: Exactly the same. Jay: So tell them. Mark: Yes. So first of all, you've got to have a great title, like we said. So whatever your business is, it's got to be a great title, like that's what I said 800-FLOWERS is a super title because a husband goes home and goes, 'Duh.' If I don't have flowers there, you can call and hey charge you four times as much to have them there within one hour. That's where they make all that profit. And the same with 800-MATTRESSES, once the guy got it, right? Because you need a bed, or whatever. The same - so all the principles - 80% of all businesses are the same, it's only the distinctions... Jay: Because they didn't take the kind of notes that they probably should be because they weren't thinking; I’m trying to not put you on the spot; go through the eight or ten things, because you whisked through your Power Point fast, and just say - what are they? Go back, what are they? If you can't remember you can go back to your Power Point... Mark: Okay, we said first of all you've got to have a great title, you've got to have a great book, or great product, or great service, or great - if you're selling your personality... Jay: OR great articulation of what it is; a great USP. Mark: Yeah, great - by the way, you've got to have three parts to that. He teaches USP; unique selling proposition, and ours is, change the whole world one straw at a time, or create one million millionaires; or in the old days when I was selling seminars, I'd sit next to this gentleman who's a good friend, and he'd say, 'What do you do?' and I'd say, 'I'll triple your income, double your time off.' Then I'd shut up and he's got a 'now I own this conversation,' for the next three hours on the flight, and I'd sell him whatever I'm going to sell him. So you've got have a USP but you've also got to have an ESP. This is what Victoria's Secret teaches. And the other day we're on TV with Victoria's Secret models, nationally with FOX. We get there at six, we walk into the green room and all the women are naked, and I go, 'Ooh, I think we're in
the wrong room, but boy was that interesting!' (Laughter) So the guy introduced us, on a national show which gets replayed all day long, and says, 'Today we've got the millionaires - going to teach you how to make a million in a minute, and after them we've got Victoria's Secret girls doing Christmas lingerie.' He said, 'This is going to be our most up-lifting show ever.' (Laughter) It has a longer story but I better leave it alone. (Laughter). Okay, so. We had one single guy travelling with us that was hitting on all three... Jay: Okay, so, the point, the point. Because I want to keep you on point. We're two attention deficit guys having a conversation. This is fun. Mark: The point, so great product, great service. Next you've got to have feedback, which is the breakfast of champions. (Laughs) Jay: So, so. Keep on point. Damn. Mark: You've got to have a good distributor, you've also got to have a team. Everyone take your index fingers like this quickly please. Put it together and say, 'One and one equals eleven.' (Audience does) In a Christian model, Christ never did the miracle water into wine until he had 12 disciples. What it means and what we did in one minute, is we said, 'Look, you’ve got to have four kinds of people,' which I didn't always know. You've got to have a creative; that's my job. You've got to have an advancer; that's Bob Allen's job and Jack Canfield's job. He is a creative, by the way. You've got to have a refiner, that's usually your analyser; your lawyer, your doctor. You got to have him or her. then you've got to have the executer, and in our case it's the publisher, whether is Health Communication or Random House. Jay: Okay, next. Okay, switch, we're playing a different game. Mark: Good. Jay: Prior to being the co-author of probably the most successful book other than the Bible, Mark spent his life studying a number of very, very interesting elements that could be tragic, and it'd be sacrilege for him to leave and not share. He understands three things: your capability of performing at a much higher level; how quickly and how importantly it is to change your paradigm; how you can't accomplish anything if you're not focused on external contribution; and the power, the inordinate and remarkable and amazingly compound performance capability that masterminding and networking has. And if you'll take all four of those
understandings, shake them up and turn them into a tapestry of comment, that would be very good. Mark: Okay. (Laughter) Well, I think that this is our year. Everyone say yes. (Audience does) Is there anyone who doesn't believe this is your year? This is also going to be your decade, because most of you are going to do more in this decade than ever before, because the computer leverages us. I mean, a Pentium 4 now can process in and out and all at the same time. What that does is that externalizes your mind for the first time in history. And what you're going to be able to do during this meeting is power mastermind and network with the people you need, and now that you know you need four kinds of people, you're going to figure out how am I weak, how am I unique. How do I put this together, how do I package that? Because whoever you need is in this room. Everyone say that - we'll do it in the first person. Whoever I need is in this room. Everyone? (Audience says it) I don't know who you need, and by the way, you don't need me. You've got plenty of - you've got a lot of firepower. I’ve got plenty of friends in here, I'm saying hi to some of you. You've even got the world's greatest artist, Spar over there, who's got almost a million dollars’ worth of artwork on the wall. Would you give him a round of applause? (Applause) Spar [unclear 32:58] over there, our good friend. What Jay teaches is you want to variegate it among friendships, because you don’t know who can pull something off. And some of the charitable stuff - charitable stuff gets you to everybody you need, because at the charities; especially if you live here in LA or New York, or one of the big cities; you get with everyone. Jay: What's even better is small cities. Because everyone is the same. Mark: You know the who's who are running them. Exactly correct. But here in this city... Jay: How many different charitable, philanthropic activities are you involved in? And how many have gotten you - you've benevolently gotten in for the right reason, but how many have produced pretty impressive relationships? Mark: Incredible, that's where I was going to go. 37 different charities we've done in our book. Some we've done the same again and again, because I love the American Red Cross. Last year we did the [unclear 33:48] and I was a spokesperson with Melanie Griffith, and I just adore her. But the one I was going to tell you about is, when I was 16, I started a rock group, because the Beatles came on Ed Sullivan; I called my best little
Danish buddy and I said, 'We're starting it,' and we did it, and two weeks later we were making $17 an hour. And then I grow richer and richer; this is what I told Jay. I said, we went to the YMCA's and they're empty on Friday and Saturday night, so I said, 'Well, look, we'll do a joint venture. I get 50 you get 50; we charge $5.' 'You're a 17 year old kid, first name? Are you going to pay 5 buck to come and see all the women that are about your age? You get paid 10.' Right, okay. (Laughter) We were filling the place to 1,000 people a night. My older brothers were bouncers and they said, 'Well, some nights we have 2,000 in different YMCA's.' I live in the Gold Coast area, and while I was poor, there was plenty of money in Lake Forrest and all those great places outside of Chicago. And I was sometime was walking away with $5,000 a night; I had way more than enough to go to college; I had a car and a motorcycle, and all kinds of cool stuff. And I wanted to meet Paul McCartney, it was one of my goals for a long time, and then at Doctor Landmine, Paul was just here and Jay Leno was there, and I got to meet Paul McCartney, and I told him, and it was really touching. For 30 or 40 years, I wanted to meet this guy, and I finally got to spend real prime time with him. And the, because we're the icon in books, Jay Leno does a joke about Chicken almost weekly, and the last one was we found Bin Laden's diary that said, 'Get up at five, don't shower, don't shave; go to the bookstore and buy Chicken Soup for the Cold-Hearted Bastard's Soul.' (Laughter) Jay: Okay. Let me take another question. Mark: I'm as fractal as he is, so... Jay: Like I said, two attention deficit guys trying to have a contributing conversation, is a joke. It's a joke. But the intent is - the saying is if good intentions ruled the world we'd both be Alexander the Great. So, talk about the power of building a mastermind. But first, do you understand what I've tried to put together for three days for these people? Mark: Yep, yep. Jay: So give them some advice on - I mean, you've been through one or two of my programs. What should they do to get the most out of this and then to take it to much higher levels when they get home? Mark: Decide what your major - you know, Napoleon Hill would say - on his deathbed, after he'd interviewed all the 500 and spent time with my hero Andrew Carnegie, and I want you to go Andrew Carnegie's house in New York, it's 91st and 5th Avenue; it'll blow your mind because the guy with a third-grade education became essentially the first billionaire - the
first great philanthropist - started the whole philanthropic deal and the first line in his house, and the freeze that he wrote is, 'No-one can get rich without enriching all others.' Everyone go (whistles). (Audience does) Anyhow, Napoleon Hill said two things. 'If you've got it, you've got it. You've got to have your definite major purpose; what's your goal, what's your mantra, what's your purpose? If you don't have a goal, get a goal; if you don't have a purpose, get a purpose.' Number two is, you've got to have a dream team to pull off your scheme, and deliver your theme, so you have multiple streams of income.' It's that simple. Jay: The next question... Mark: I think it's that simple. Jay: Next question. You've interviewed, and you have addressed tens, hundreds of thousands of entrepreneurial groups. What are the biggest recurring mistake, problem, or oversight that they're guilty of, and what's the easiest, fastest, quickest, tangible way - from your vantage point that they can change that and get a better effect? Mark: Okay, two. Number one is that you think you've got to have money to make money; and it's you times the system equals unlimited results, and you're in the envelope here, the cocoon, to get that system. And number two is that you've got to have a team, because a team; you can pull off miracles. Nobody can pull off miracles, and we got Mike Fry here, who when we wrote on the right hand side that we wanted this little, always together toy to take our little heroin out of the dog roll part of life, and...
Jay: Right hand side of the book; he's like me, he thinks you know what he's talking about. Mark: Oh. Good. Here's one of the books, and here's one of my other partners, Tom Painter. I didn't know he was here. Here's what the book looks like. It was 800 pages and we edited it down, but on the right hand side is the logical side; the 101 millionaire a-ha's. And on the left hand side - Richard, could you turn this down just a hair, please? On the right hand side, we've got a butterfly; the caterpillar comes into a butterfly and then it flies off the page; you become a self-actualizing person. But in our proposed movie, we're expecting to have Julia Roberts be the lead there; Erin Brockovich; and she loses everything, her husband dies, her mentor comes in as my Maya Angelou, her evil nemesis is going to be hopefully played by Anthony Hopkins, who says, 'You couldn't make a million in a
million years.' And Maya Angelou, who is the - if you ever get a chance to hear her, walk across cracked glass. This woman was raped at seven years old, told her mother, the next day she has her - the guy's got his head kicked in on the front porch; he does an auditorium on speech for the next seven years. Her grandmother says, 'Girl, if you like poetry like you says you likes poetry, poetry ain't poetry until you talks it.' And now she is the poet laureate of the world, as far as I'm concerned. She is profound, prolific; I've been on her PBS show, she's a Horatio Alger winner, she's Oprah Winfrey's mentor. Nobody makes without a mentor, gang. So that's be the third thing you'd have to have, is a mentor. But this just teaches you, you've got to put together teams that have deliverable responses that you know, that they've already proven themselves. Doesn't mean you have to, it means you've got to get on a high performance team to get it delivered. Jay: Two more questions. Okay. You and I have been friends for a while. Mark: Twenty years, I'd guess. Jay: And, what do you think is the biggest lesson - the thing I’ve learned from you is to think at a much higher level, have very finite goals, and have a plan working backwards to get that. What have you learned from me that maybe I'm not - and I'm not trying to grandize me, I'm trying to see an insight that I don't see, that I can have pre-emptively shared in case I miss it. And then I got one more question. Mark: He said that was the last. (Laughter) Jay: No I said there were two, didn't I? Mark: He is the best [unclear 39:28] on the planet. (Laughter) Jay: I like that word. Mark: That's something that has the [unclear 39:33] the right word at the right time in the right place to get the right result, right here and right...? (Audience says, 'Now.') This guy is the best word merchant in the Godfather of long copy, and I've really learned that and I’ve tried to imitate him until I can emulate him, and that's why we have books that we've got to edit back down to 400 pages, which fries the publisher. Jay: What's the answer? (Laughter) Mark: That was the answer. Jay: So what's the application...
Mark: What was your question again? (Laughs and laughter from audience) Jay: What’s something that you think that I teach that I don't know I teach, that they can pick up on ,that maybe on their own they won't see? And maybe I don't see? Mark: Just that you hang out with the finest minds in the planet on a fulltime basis. Jay: And they ask a lot of questions. They ask a lot of questions. Mark: By the way, there's nobody more laser beam than Jay. And he has been very kind; in like one minute, I bet you you've given us three days of investment of your time, and shared your good thinking. Jay: You reciprocated [unclear 40:21]. But - okay, lastly, and then you can go to your next impact - he's impacting people all day, and he's very gracious to come down here/ He's on a book tour, and you're going to be in Atlanta on Monday, because your partner Bob, unbeknownst to you, is going to do a surprise video, if we can get the connection right for about 15 minutes, and you be able to wave and say hi too, if you're there with him. What's the one, overriding insight and application coefficient that you want to have left people with? You're going to leave in a minute, you're going to drive back down the Boulevard and go on to your next endeavour, and these people who you may or may not ever see in your life, are going to go back, and they're going to do something. And you have a chance to hopefully implicitly have accomplished that by what you did - but you could explicitly accomplish it. And if you leave with a hopeful wish they got at least 'blank,' and that they will do minimally, 'blank,' with it. What are those two blanks? Mark: I really believe what Oprah says is correct; is if you journal every day and you ought to journal in color. And when she was doing The Color Purple, she was sitting next to Steven Spielberg and he's writing up DreamWorks; she copies it into her journal with his permission, changes her name: Oprah, to Harpo, and obviously you read in Fortune Magazine, she became the first female billionaire; and now she's doing a company just like Paul Newman, to create the first legacy. She's always tithed, but now she's going to create a Newman Zone, that's going to be able to do billions. She's going to create the biggest cosmetics company, literally, and do it globally from the first day, so I think you gotta journal.
And number two is you've got to absorb books. This guy will give you a book list that just doesn't quit. And I read - I don't know how many of them will read all the books that you listed. I think back then there were 400 and I bought a lot but didn't... Jay: My publisher was mad. He said, 'Won't you give 12?' And I said, 'I did a service to people.' I mean, it depends. There's a list of different books for a lot of different - by the way, you do have to grow or die. You've got to be able to - and you need a way to compactly, really grasp a lot of information. I'm doing - I'm involved with Marshall and Edwin in their book, and they owe us a service; and I think you've got to be connected to so many other ways of harvesting, harnessing and digesting, and really compressing knowledge, because you need it. I mean the what knowledge is doubling the body of information, knowledge that you have the opportunity and the necessity to comprehend, master, and really incorporate, is by doubling or tripling every nine months or so. Mark: Whatever. Jay: Scary. Okay, so, your parting thought to them is...? Mark: Read and journal. Jay: Okay, good. Mark: Or journal and read; either way. Jay: Okay. I have only one more thing to say. Originally, when we knew that Mark was going to be here, we were going to urge you if you thought about - see, I like the mind-set elements in the book because it stretches your mind. Was going to encourage you to go out and get a copy. We thought, 'Oh what the hell,' so we bought you all a copy.... Mark: Give Jay a round of applause. Please, he bought all of you a copy. (Applause and cheering) Jay: It's too burdensome to try to bring them all in here and distribute it; we'll give everybody a [unclear 43:33], so on the way out you can pick it up at the counter. And I want to thank you for coming and giving to us so freely. You're gracious. (Applause) Mark: Thank you. Jay: Thank you. Mark: Thank you, thank you, mwah, thank you.
Jay: When you get back, we'll talk about birthday, but if we don't talk soon, we won't have time for birthday parties. Mark: Yeah. Jay: I'm so lucky to have friends like Mark, who will give themselves, and I've got a lot of them, very kind to do that. You're a wonderful man. We're going to stop for lunch. (Cheering) Okay, but as I said, if for three days in your life - so you don't get mad at me. I’m not trying to do deprivation, I’m not trying to be a power monger; I don't think in your life, you're going to have a chance to be inculcated by this fear, and the expanse of the perspectives, minds, that I've been able to organize, and I'm not just talking about the brilliant experts, I’m talking about the brilliant contributors in yourself. And for three days and nights, if you're strained a little bit, and a little tired, a little bit uncomfortable, then go with it, because it will pay dividends compounds forever. When we come back for about a half an hour, a colleague of mine is going to set up the 12 criteria, or the 12 key core competencies you gotta work on, and then I'm going to bring Mac Ross, my colleague, up and we're going to work through 25 key elements to really out-market your competition. We're going to go through Abraham 101, we're going to get you soluably entrenched, and do a lot of work around the table, and we're going to have a lot of fun. And by the end of the evening - where's Andy? Andy Miller are you here? Andy: Yeah, I’m here. Jay: By the end of the evening, they're going to have a good fundamental understanding of consultative selling in a very broad sense, and you'll try to get some interaction, right? Andy: Yep. Jay: But we're going to have fun. Trust me, don't come up to me and say, 'Are we going to talk about such and such?' We're going to talk about everything and anything that is relevant for you, if you take responsibility for it. If you don't we won't. Does that make sense? How? Because I’m going to cover all the things that I know, and then you're going to say, 'What about this?' and one of three things are going to happen. I'll either have a cool answer for you from my experience. Or I won't be [unclear 45:47]. I'll plump out of 650 people of which 19 are experts of the highest magnitude that I know, and about 30 other ones are experts coming to build their own practices. We'll get answers from them, and then we'll go to the own group after that. Do you understand that?
You can't lose unless you don't contribute. You'll give yourself a great outcome if you play the game, to collaboratively contribute. Okay, what time, Rick; an hour and 15 minutes? I'd like an hour and 15 minutes. The food's out there, those of you on a meal plan. Those of you who aren't, I think that you should consider it. Be back here at 4:15. 4:15, thanks guys. How was it? Good?
Jay Abraham Mastermind Marketing 6 (General chatter in the background) Man 1: ...double the number of sales [unclear 00:07]. This price includes 50 of the Fortune 500 companies. [unclear], a tycoon, just a really great guy also, he's really fun to listen to, and I promise you you're perspective will be forever transformed. So with that, I’d like you to give it up for...Chet Holmes. (Applause) Chet: Thank you. Thanks bud. My mike on? Is my mike on? No it's not. You guys hear me? Okay, does anybody know the worst time to go on when you're a speaker. (Audience shouts, 'After lunch.') Thank you. These guys get food coma, and I have to come on here and try to keep you awake. So I'm going to start with you all standing up, please. Fact is, that 90% of the energy that goes to the brain is generated by movement of the spine. So I'd like you to literally twist your spine around. What you're doing right now, is you're actually pumping cerebral fluid into the brain. We've got some chiropractors in here, you guys back me up, right? Okay, stretch to your left. To your right. See, I'm doing the opposite, just to make it - I'm trying to confuse you. Back, forward. Okay, now stay standing, I’ve got a little experiment for you. So this is the sure-fire way to make sure you don't fall asleep on me while I’m talking. Okay, so this session is called Zero to a Hundred Million. Just keep standing. And - if this doesn't work - we're going to talk about how you go to a hundred million dollars, and even if that's not important to you, like you don't want to get to a hundred million dollars; there's going to be some lessons here that every entrepreneur needs to learn in order to make their company run really well. And I know we had some people over here complaining that they couldn't see the screen over here. Don't worry about it, I know we put it on this plasma screen here, but I will say everything that's on the screens. If you can't see it, don't fret over it. Okay, so. Here's a little quiz. How many people here are in companies of a million dollars or more - keep standing, everybody else, under a million dollars, sit down. Okay, so that's amazing. That's probably only about less
than half the room. Alright, how many people are in companies...five million dollars and up, keep standing. Everybody else under five million, sit down. Okay. So that's practically like 8%. And then how many people are in companies ten million dollars or more, keep standing. Everybody else sit down. Woman 1: Does it have to be your own company, or you represent that company? Chet: It has to be your own company, yes. The owner of the company, keep standing. Oh, I just had a bunch of people sit down. (Laughter) There's one guy here with 15 employees, - company with ten million dollars or more in sales. Alright, so sit down. I’m going to have you stand up again in a few minutes. Let me just tell you the facts. 85% of companies in America will never reach a million dollars. Carl, can we have that door permanently shut, please? Thank you. So 85% of you will never reach a million dollars, and in fact, only 95% - I'm sorry, only 5% will reach $5 million, and only 2% will ever get to $10 million. So 98% of all companies in America are small business, and they're under $10 million in sales. Only 1 in 25 will survive 10 years or longer. So now I'd like those of you who are the company owner, if you've been in business for 10 years or longer in the same company, stand up. Wow. That's an anomaly, and it says a lot for Jay and the kind of companies he attracts. Okay, have a seat. So, my question to you is, what's the difference? Why do some companies get to $10 million and other companies never get past $1 million? It's not that people start off saying, 'I'm only going to grow to 200,000.' A lot of people start off with much bigger goals, and we're going to establish that in a few minutes. So in most cases, it’s not the product; meaning that -1967, a hamburger joint opens, and it's called Joe's Hamburger Joint; and we go back 30 years later, and it's still Joe's Hamburger Joint. 1967, another hamburger joint opens and we go back 30 years later, and it's McDonald's. Now, my question to you is, is the hamburger made at McDonald's really that much different? (Laughter) We're talking like $40 billion a year, versus $300,000 a year, for Joe's Hamburger Stand. What is the deal here? So what it turns out to be, is - I'm just upstaging myself here - is it's really the skills or the learning curve of the entrepreneur. In other words, what you bring to the table is what's going to make the difference of how far you can really go. It is generally not the idea, because someone else will start with one idea.
I was corrected by somebody recently; I kept telling them the Tom Watson story, about how he built IBM, and somebody wrote me in an email, and said, 'Oh, by the way, did you know that Tom Watson was famous for saying, 'Computers will never work,'' or something like that, because he actually has data-processing - started with some simple thing, anyway. But he had the foresight, and the vision, and the leadership, and the judgement and all those other things that it took to try and turn what could have been Joe's Stationary Store, into IBM. Okay, so it is the skills of the entrepreneur that makes a difference. So my question to you is, what kind of person grows a company to a million? Just, what kind of person does it take, because I’m going to tell you in a minute, what kind of person it takes. Just get a company from nothing to a million, because 85% of companies in America won't ever get there. And then to get to five million, that's a different person, different skills; you've got to think differently, and I'm going to tell it to you. You're going to be clear, you're going to believe me, you're going to know I’m right. And then 10 million is quantum leap from a million. I mean, you're talking about $1 million a year and then going to $1 million a month. What kind of a person, what kind of changes do you, as the entrepreneur, have to make in order to have that happen in your company? Okay, and then a hundred million - because this is called Zero to a Hundred Million - or a billion, right? And I say, skyscraper, anyone? So, now, let's ask another very important question, and we'll get some reality check here. How many of you in the room - now let's take you back to when you started the company. Not what your feelings are now, because we've got a lot of people who are in business ten years and you're - ten years can beat anybody down, and can change your perception, and you give up on a lot of stuff. So I want to know, when you started your company, how many people in the room had the desire to take the company to at least a million dollars, please stand up. When you started your company, did you want to grow it to at least a million dollars, stand up. So that's almost everybody, right? Because we've got a lot - will the employees of companies who want to go beyond a million dollars, stand up? Because I just don't want to have any deception here. Alright, so that means that almost every company in the room here, at least wanted to grow to a million dollars, right? So there are some of you in the room who don't want to grow to a million dollars, keep standing please. Because this keeps you awake after lunch; this is deliberately planned, just to make
sure you guys aren't going to fall asleep on me, and I will have you stand all through this...no I'm kidding. But, now, the question becomes, how many of you wanted to grow to five million? Keep standing. When you first started the company, the goal was you're going to grow to at least five million or more. Ten million or more. So still like 90% of the room - saying this for people who aren't going to see this on tape, who aren't going to see, they can hear it. It's like 90% of the room wanted to get to ten million. Okay, have a seat. So why haven't you? What's it take? Not trying to embarrass anyone, I'm trying to give you the tools that you're going to need to get there. Real practical stuff. Alright, one million is easy. It says your workload is - it shows a guy totally overworked here. One million is easy - well, I say not exactly, because what it takes to build a company to a million dollars; anyone with passion, drive and hard work can build a company to a million dollars working half days. Can anybody tell me what a half day is? That's right, if 24 hours is a full day, what's a half day? Right? So, I'm telling you - because I've seen a lot of companies that are utterly and totally dysfunctional, and when I'm finished here, you're going to know exactly what I mean by dysfunctional. I've seen a lot of companies that are completely dysfunctional, and just the owner is just so passionate and he's got so much drive, and he works so hard, he's just dragged that company to a million dollars on the pure sweat of his back. And you might get to $2 million by doing the same thing, but I guarantee you, you will not get to $5 million, and you sure as heck will not get to $10 million just on passion and hard work. So, it should be nice to know that you're not going to have to work ten times harder, if you really want to still go to ten million, like some of you people kept standing to tell you me you want to do. Because you can't work ten times harder, can you? Not if you're working half days now. There's only another 12 hours in the day. So, clearly the owner working half days to do a million, can't possibly work ten times harder to get to $10 million. So the point is, it should be a great relief to you to know you're only going to have to work smarter, not harder. Right, and I want to try and give you that. So what do you need to reach ten million and beyond? I'm going to tell you in the next five, six slides. And when I tell you , you will hear what I say, you will understand it intellectually - come on, got to point right at this thing - you will agree with all the principles, you will know that it's the thing you should do, and you will still not do it. (Laughter) Okay, this is what I call reverse psychology. It's like when your kids were little, you used
to be able to say, 'I bet you can't get me a drink of water.' 'Oh yes I can,' and they'd run off and get you a drink of water, and now they're 14 and they go, 'Yeah, you're right, I can't help you out there.' (Laughter)Doesn’t work at all anymore. So why won't you do it? This is more reverse psychology. Well, because here's the key guys. Here's what it takes to get to ten million and then beyond. It's pig-headed discipline and keeping your eye on the ball. Now, I'm going to take exception with Brian Tracy's comment, where he said, 'Working on the business is a bunch of crap, all you got to do is just sell, sell, sell, sell.' Well, I've got a lot of clients that sell, sell, sell, sell, sell really well, and the company is nothing but problems. And it's because noone's stopping to work on the business. So, the question really is, to work on the business, but what should you be working on? And that's where people get stuck. They don't really know what to work on, so you just come to these events, and you get tons of ideas; you're not really sure where to go with all of it, and so what I'd like to do is kind of give you a blueprint in the next half hour, that I have here, and help you get there. Well, first is that you want to work on being proactive instead of reactive; and it's kind of obvious, but I love what Fran Tarkenton said; he thinks the 80/20 rule is now the 95/5% rule. And so 95% of your time is probably spent doing things that yield very little results, working in the business and if you're lucky, 5% is on things advancing the business and moving the business forward. Okay? So there's different needs at different levels of growth, but the bottom line is you definitely need to work on the business, and I’m going to give you some really clear examples, and I’m going to make it real easy for you. And the key - if I could get this thing to move forward - is what I call the 'three P's.' So this is interesting, because the first time I unveiled this concept; zero to a hundred million; and I have a cassette program coming out [unclear 4:23] Bill Conan, called Zero to a Hundred Million, where I take this much further than the half hour we're going to here today; but the first time I was exposed to it, I was running a bunch of trade shows for Charlie Munger, and - if you don't know who he is, he's Warren Buffett's partner, they started Berkshire-Hathaway when it was $9 million, and today it's $90 billion, or something; and Charlie is the co-chairman, and I, stupid kid that I was, 28 years old; got a job working for this guy. I had no idea who he was, but it was a fantastic opportunity, because you go to Charlie Munger, a billionaire, with an idea, and he'd say, 'You think you can do a good job at that?' And I'd go, 'Yes. I do,' and he'd go, 'Well, go ahead.'
Started trade shows, bought magazines; it was so much fun, oh God, I had a ball. But I learned a lot, and one of the things I did at one of the trade shows is put on this conference where we analyzed the kinds of people who grew companies. And I got this epiphany. At the time, I was running nine different divisions; I was so busy, I was working 12 hours a day at the office and then go home to do three or four hours a day; worked every single weekend. I remember going on vacation in Hawaii, and getting an average of 15 to 16 faxes a day. This is my vacation, you know? And some of you know exactly what I'm saying. And then I got this epiphany, and I realized that everything that had any kind of impact in the company had to start and end with me because I had not established what the three P's are, and it says the most successful companies constantly focus on the three P's, and they are: Planning, Policies, and Procedures. Now how many people here own PEQ? Oh we've got a good number of you in the room. So you guys know exactly what I’m talking about, but I’m going to put a new spin on it for you; and I know some of you are guilty of still not doing stuff at PEQ, so I hope this is impactful repetition being the mother of skill. Because I go deep on this in our PEQ program, but planning policies and procedures; when you work I've had 50 Fortune 500 clients, and they have tons of planning sessions for everyone. They have quarterly planning, they have annual planning, they have monthly planning, they have policies for everything. There's nothing - it's like in your company - how many people have sales people? So I'll pick on you just for a minute. Microphone? You took my mike, Rick. How many sales people do you have? 20 sales people? [inaudible 6:51] gentleman, mike. Okay, what's the policy for follow-up? How many times are they supposed to follow-up with a prospect who says no? He's got a policy for that. Your mike doesn't work? (Laughs) So you actually have seven follow-up procedures for a customer who says no? And they're strictly adhered to in the organization? Man 1: No. (Laughter) Chet: (Laughs) Okay, how many other people - just wait a second - how many other people with sales people - first of all, how many people with sales people, raise your hands. High, come on, so we can see them. And then, where you have seven, or even three standardized policies for following up on a customer who says no. Keep your hand up if you do. Like I person - 2 people, three, four, and a PEQ over here, I know.
Okay, and then what's the policy on follow-up after the customer buys? Is it up to the sales person or do you have procedures in place for that? This guy is good. This guy is good. Okay, let's pick somebody else. (Laughter) Thanks, thanks. No, that's good, that's okay. The point is, most companies don't have policies for that and it's funny; a sales person will come up to you and go, 'What's our policy on if they say no, how many more times should we try?' And most entrepreneurs will look at them and go, 'I don't really know. I don't really have an answer for that.' And so what I try to do with companies is systematize everything and - here's the learning curve. Here's exactly how I got to this. I was top producer every place I ever worked. The last sales job I had, I was out selling the next five sales people, all put together, and I couldn't understand why they didn't hire more guys like me. Right? Why don't they just hire more guys who love to cold call in the morning. How many people here love to cold call in the morning? How many people here are in sales? Everybody should raise their hands. Almost everybody raised their hands when I say how many people love sales, and three people raised their hands when I say how many people love to cold call in the morning. You know why? It takes a warped psychological profile, no offense intended, so you and I are the two in the room who have that warped psychological profile. But it is a unique psychological profile that really loves to cold call in the morning. So what I did is, I got this job working for Charlie Munger, and I tried to hire nothing but sales super stars. I was determined; I said, 'You know what, when I get in a position of authority, I’m going to hire nothing but guys who love to sell.' So I hired what I thought were great sales people; all you guys who hire sales people, you know exactly what I’m talking about. How many superstars are there in the world? And how hard are they to find? Really hard to find. So I actually developed amazing techniques in that area. You PEQ guys, you know exactly what I'm talking about. But the point is, then I started to - so if I wanted them to try 12 times to get an appointment, because the average sales person actually statistically will give up after only two rejections. So, what's your policy for how many rejections they should face before they give up? And if you don't have a policy there, then you're running like, Joe's Hamburger Joint, not like McDonald's, because McDonald's have got policies for everything. You know what I’m saying? Morgan Stanley has policies for everything. But if you don't have policies and procedures for each area where you want some competency in your company, then
you're not ever going to have a great company, and you sure as heck can't grow to 10 million and beyond. And I’ve got clients who get stuck. Now, I only work with Fortune 500 clients, prior to meeting Jay, and I've 50 of them, so I've had some great success; million dollar fees, to go in there and help them. And Jay says to me, 'Well, you know -' and it is frustrating too, working with a Fortune 500 company, because if I make a suggestion at Wells Fargo, it's like a year before anything happens with that. And the layers and the things; and now working with smaller companies with this high-flying deal that Jay's come up with, I can have like an immediate impact. Got a company, six weeks [unclear 00:58], we were like doubling their sales. And I'll tell you the exact story tomorrow; how we did it, and every one of you in the room will be able to do it, and you'll be able to apply the combination of my skills and Jay's skills for yourselves. So, sort of like Jay says, 'What's a forensic reconstruction -' forensic person reconstructs the crime and tries to find out how it happened; what's a forensic reconstruction to see how many situations require your input, where you could apply the 3 P's. So because every area of your company you need to do this - and I’m going to explain this really well in a minute here. Okay, the more you utilize the three P's, the better the company will run without you; every McDonald's runs with the same quality control. You can go to the one in Harlem, or in Kentucky, or in Beverly Hills; you're going to get the same exact hamburger, and the same exact French fries. I'd like to see any of you do that. That's a real great accomplishment. So here's a great true story; and there's a lot of lessons for you to learn about this. Carpet cleaning company comes to us; one of the largest in the country, and that's not saying much for carpet cleaning companies because most carpet cleaning companies are too guys in a truck, This guys' got 40 trucks, or whatever it is. And he comes to us and he says, 'I have 30,000 customers, and I want you and Jay to help me get 60,000 customers.' So Jay starts on him; he says, 'Well, how often do those customers buy from you?' 'They only buy about once every three years.' See, he also does rug cleaning too. And he says, 'You ever try to get them to buy more often?' 'Well, yeah, probably, send them coupons, discounts,' 'Do they ever buy more often?' 'No, not really. About once every three years, no matter what you do.' So Jay comes up with this idea; it's called the Gold Service. And instead of trying to sell them after the fact, what he said is, let's get them when they call in and sell them on a service to buy more frequently. Now that just sounds real logical, right? Now, that's Jay's gift; he comes up with those
ideas; when you hear me go, 'Yeah, that's a great idea.' And so we get in there and - now, my particular approach is I'm very research oriented; I like to know everything about the company and the situation; you PEQ guys know exactly what I'm talking about; I go deep. So I hire a researcher and we do some studies, and we find out that your carpets have a dramatic impact on the health of your home; as a matter of fact, the environmental protection agency even studied the impact of professional cleaning - I can't believe this, but it was like one of those 'Oh my God - ' you know, they've actually studied - because your carpets capture dust, pollen, bacteria, dust mites, their faeces and the bacteria that feeds on it; so it's all in your carpets, and what occurs is that - that's good that your carpets capture that, because it's like a big health filter, but after about six months, it gets saturated. So you've seen these professional cleaners; they come in with this hot steam cleaning, you know (makes a noise) and it just melts everything; kills all the bacteria and everything in your carpets. Well, with that little 60 second education that I just gave you , four out of 10 people are signing up for the Gold Service. And I'll show you in a minute what it did for his business; it's profound, because - do the math. You have 30,000 customers buying once every three years, instead of - now, 30,000 customers buying six times every three years. What is that going to do for your company? Okay? So you could see the guy's hands trembling with Jay laying this out and me saying, 'Yeah, we'll do this.' So then we started - oh, and then the other thing we do is we find out, in fact, they have a lot of other services they only mention when the client asks for it. And the way I found out is I'm listening; they tape calls for us so we could hear what the sales people were doing; and here's this 78 year old woman, and the sales rep knows I'm listening, right? Or knows I will be listening, because we're taping it; and she has her rug, and they take the rugs out of the house to clean them, because they can clean them twice as good that way - in fact, you should never have your rugs cleaned in the home, they should - because they can be rolled up and taken to a factory and really cleaned well. Now I’m turning into a carpet cleaning sales guy here, because I know so much about this now. But anyway, so she says, 'Well, what about the padding underneath the rug?' And she says, 'Well, how olds the padding?' She says, 'It's ten years.' She goes, 'Oh no, you can't clean that, it'll just disintegrate, just get a new one.' So I write down 'Get - sell padding.' Does that seem like an easy thing here, to make some 78 year old woman - she said she's in a walker, you know, go out and get padding; so I go to the owner, I go, 'You should
sell padding.' He says, 'Oh, we do.' 'You do?' (Laughter) You want to tell your sales people you do that, you know. So it was about six things like that, and you'll hear Jay's whole thing on strategy and pre-eminence; it means you have, as he puts it, a moral obligation to serve that client in every single way - he's going to do a whole thing on this, I don't want to upstage him. But the point is that you have a moral obligation to at least mention that, okay? So I start to implement. I get in there, I explain it to the sales people; let's pretend you're all carpet cleaning sales people, and I just explain to you what I explained to you, right? I explained to them what I just explained to you, and intellectually you understand it right away. But now you've been doing it a certain way, and you guys know what I’m talking about, who have companies. who have employees, you've come to these events, you've heard good ideas, you go back to your staff, you say, 'We're going to do we're going to pre-empt the competition, we're going to offer a Gold Service,' and they tried it and so - when I work with a company, I virtually, literally run the sales meetings. One hour a week, every week, I'd get on the phone and I’d run the sales meeting, and so I'm running the sales meeting, I introduce the concept, they all say, 'Great,' we give them a basic script - big mistake, needs to be an exact script; they all get on the phone, they try it, come back the next week, I say, 'How did it go?' 'It didn't work. Didn't work at all.' 'Didn't work at all?' 'Yeah almost everybody said no.' 'Oh, really, well let's get some actual facts, okay? Rob, how did you do?' 'Well, I pitched it to ten people and only four said yes.' (Laughter) I swear to God. True story. Six out of ten people said no, and he thought it's a total failure. And now so then, we just kept going at it. I'm telling you, in six months of weekly workshops to get it working beautifully. And that's when I said pig-headed determination - if you guys own Joe's Hamburger Stand right now, and I said to you, 'Let's get it to work like McDonald's,' and you go in there, and you've been working at Joe's Hamburger Stand for three years, and now I want you to be able to put down six burgers, flip three at a time, go this way - you've never done that. You know, so then we get you to do it, you try it a little bit, and after a couple of hours, you go, 'Ugh. It doesn't work.' And Joe comes to me and says, 'It's not going to work; we can never be McDonald's.' 'Why not?' 'Well, I mean we tried it.' 'How long did you try it?' 'Tried it for hours.' Well, I can tell you as a guy who worked in McDonald's, the first day, that's all I did. But by the end of the day, guess what? (Makes whooshing noises) You know, judo burger flipper here. You know, it's really fast - you can get good at anything if you stay at it.
So it's about you having the pig-headed determination to take the areas of your company that need to be improved, and to stick with them. To take Jay's ideas of cross-sell, up-sell, of strategy pre-eminence, and work at it weekly, but the secret is going to be, guys, six months for six things. Oh, by the way, results: 87% increase in sales performance in one year. For a guy who had increased about 6% per year for a hundred years. (Laughs) And I'm not exaggerating here; it's the fourth generation that own the business. I mean, it's profound. Yet, average sales person was doing $22,000 a month; now he's got guys doing $105,000 a month. Plus, another tip for you again - just little tips as we go - then I said, 'Alright, well these other guys are so resistant; let's bring in a new guy.' Because a new person is not going to have any resistance to the old ways. Little tip for all of you; trying to implement something new? Bring in somebody new and train them the way you want them to do it right from the start. So we trained the new guy; the new guys goes to $105,000 in his fifth month. And all the other top producers who were saying this wasn’t going to work are now all of a sudden doing it like a champion racehorse on the telephone every day, because the heat got up in the kitchen. You understand what I'm saying? Alright, so. Fifty different ways to implement; my point is just stay in their face. Okay, everybody stand up. Lunch coma setting in; I see some people dozing. (Laughter) I hate that. Okay, lets twist that - come on baby. Twist the spine, bend, come on - especially you - she's sound asleep over here. (Laughter) Okay, good. Oh, you're not? Alright, good. Okay, thanks. Good. Okay, case study number two. This is a little more detailed, and it goes to my conversation with the gentleman before; and you said yeah they had seven procedures; do they follow them? You say no; it's because you've got to be on that, like until it's the policy. It’s not 'here's an idea.' It's our policy, and it must be strictly adhered to, and you've got to be pig-headed determined about it. This is what we're going to do; and you're just going to keep working them, and every week you're going to come back, and once a week, every single week, you're going to work on that until it's just - they're all doing it. And I did that with Charlie Munger's first company [unclear 9:33]; doubled the sales in 15 months; and you have to see the reaction of a billionaire when he sees a 28 year old guy double the sales of a magazine that's been around for a hundred years, with 2 and 3% increases for a hundred years. He was just astonished. But nothing compared to the other nine
divisions he gave me, and I doubled the sales of every one of them using all the stuff I'm going to tell you today and tomorrow. But most of it is just the pig-headed determination, to see - that's why it shows this fellow here; it's like the tip is - so this is your top producer, and this is what he would do in every single situation. Well, every person needs to duplicate that, and you start to put it into place. So I have a telecom client; this is Jay and I again; and they - I'm teaching them how to scope on - anyway, so we get on the telephone and they start calling to try and get appointments, and then come back the next week and you monitor it, and say, 'Okay, how did we do?' 'Well, we -' One sales guy goes, 'Oh I made 137 calls.' 'Great, how did you do?' 'I made three appointments.' 'Fantastic.' Because every deal they get is like 100 grand. He got three appointments in one week. That's a good week, right? And a lot of guys in here would be happy to have every sales rep you have getting three appointments a week, right? What do you sell? Audience member: Real estate. Chet: Real estate? You'd love them to be (clicks fingers). Three is probably light for real estate. But anyway - I have got to stop using him- he's a bad example. (Laughter) Don't let me call on you again. So, anyway, they go out there, and he gets three appointments, and I go, 'Okay, I mean 130 calls, he's got three appointments, how many pitches did you do?' 'I did 13.' 'So, oh. You did 13 and got three, that's pretty good. Great. What happened to the other 10? 'Oh, they hung up on me.' 'What do you mean?' 'Well, they basically said I'm not interested and they hung up on you.' So I go, 'Then what did you do?' 'Nothing, they said they weren't interested.' 'Oh. So what we have must not be very important.' Because if we hang up on a single rejection, what we're selling can't be - I mean, the thought to me if someone goes away after me rejecting them one time, is that it must not be very important if they went away after a single rejection. So I say to the owners - and this is with the whole staff listening; I say, 'We need some follow-up procedures,' because today, getting top of mind - or getting mind-share is very expensive. In fact, studies show its six times more to get that guy who says, 'I'm not interested - ' six times more expensive to get that guy on the phone, and to get him to say, 'I’m not interested,' than it is for the other 130 calls that you made. In other words, you made a major accomplishment. When somebody listened to you enough to say, 'I'm not interested,' you got into their mind-
share. Now, if you want to stay in their mind share, you better follow up like a champion racehorse. And so, like I say here, what would a top producer do? What would a top producer do? And again, you guys, how many people in the audience either have a top producer working for them or have been themselves a top producer? Okay, so you know what a top producer is going to do? Here, I wrote it down. Massive diligent follow-up, more determined in the face of rejection. So my point to you is, let's build procedures that make everybody function that way; and that's what I did for Charlie Munger's companies. I built procedures. I had 12 steps to get an appointment with everyone, because studies show it takes 8. So you come to work for me and I say, 'Here's the 12 things you're going to do to try and get an appointment with somebody.' And then I would spell it out. 'Here's the first promo piece, here's the call you're going to make, he's the charge key you're going to send;' it was all laid out for the sales reps. And then 'Here's the ten follow-up steps, so we're going to bond with them, here's the way the sales calls -' every single aspect of it until the place ran like a finely tuned machine. Anybody have a company running like that, in here? Man, it's so satisfying, I got to tell you. And you know how I did it? One hour a week. That's all. Working on the business. But that one hour - I'm going to show you exactly how you guys need to do. Alright. Oh, so my point here is that it took three weeks of me badgering the owner to get him to institute those procedures. So, I said it, you know, and then in the third week - and I know he'll be listening to this, so I don't want to embarrass him; here’s a really good guy and I love him, and he knows that. I’m just saying that because he's actually going to be listening to this on tape. (Laughter) But I said to him, 'Look, you're wasting my talent and your money. Do you really want to be wasting all that? We’ve talked about this for three weeks in a row; you need to procedurize these follow-up procedures.' We need and there’s another thing they had, and again, you've got to be like a scientist. So I got them so good at closing appointments. And just like three-four weeks of these one hour calls, just coaching them, working with them, letting them role-play, making it better and better each and every time. Giving them better scripts, better promo pieces, better everything. They got so good at closing appointments, that - like I said, they were closing three out of ten, then they get the guy on the phone; they close it so hard, come a week later it's time for the appointment, the guy looks down like, 'Oh yeah, that telephone guy. Oh yeah, cancel that.'
So they started to get two out of three who would cancel. So now what do we need to do about that? We needed five procedures to make sure that they don't cancel, and so my point is that it took me three weeks to badger the owner, of three weeks of these kinds of calls in a row before I finally got him to go, 'Okay, okay, I'm going to build the procedures.' So that's my point; when I say to you pig-headed determination, that's what it really takes, And if you don't have that, you're never going to build a great company, because that's what it takes. But I’m going to make it even simpler for you, alright? Building procedures that would have every person perform at the height of performance. And I'm going to show you exactly how to do that. How much time do you need? I already said it's an hour a week. Proactively, at the same time, every single week. I’ve changed the course and direction of growth curve of hundreds of companies just with this one thing. Just spend one hour a week, take it, put it on the whiteboard. We can run a meeting right now to improve any area of your company, any place where you're having problems; you put it on the whiteboard, and then we work on how we're going to solve it. We plan, we put it into effects and procedures, and then we make it a standard policy within the company. And if you do that, you will have profound results. The secret is that the process is continuous and incremental. In other words - I have another client I'm working with, and the first workshop we do; and it says it here. First workshop that you do, here's what you do. You sit down; if you're by yourself in your - how many people are a one man army? Raise your hands - actually stand up. One man army, stand up. Okay, quite a few of you. Okay, now sit down. Now everybody else stand up. Just making sure you guys are not falling asleep; okay, that good. Thanks, sit down. Alright, so the first workshop that you're going to do- this is what I do. If you hire me, and I’m on the phone with you and your staff, I’m going to say, 'Alight everybody, we're here because we want to grow really fast, and we want to build a really bulletproof company; we want to slaughter the competition, and we're going to have some great curves. We're going to be highly profitable, and I want everyone here to give me at least three things standing in the way of that kind of growth.' And it's great. I mean you've got to be an owner who really wants to improve to invite someone into your company to go and ask that question of your employees, because every embarrassing thing that's wrong with it is going to come up. But the minute you do that, you're on your way to making a great company. So you do it. You go back - after this meeting, you sit down with
your staff, those - you here with the staff, and you say, 'What three things are standing in our way?' You don't point to people. Let me tell you how not to do a workshop. You don’t go like this. 'Let me hear three suggestions right now on how to improve the company.' You don't put that kind of pressure on people. Let them think. Let them think, because I’ve had - taught these programs and had people say to me, 'I tried workshops and they didn't really work.' 'Well, what did you do?' 'Well, I just said 'Okay, I want to hear an idea on how to solve our problem of such-and-such.'' And the guys like, and afraid to say anything in front of - let everybody take some time. So if you say to you right now, 'I want three ways to get better appointments. I'm going to give you five minutes right now to think of it,' and we just kept quiet; guess what? In this room, we're going to have 3,000 ways or 300 ways to get more appointments, and you guys are all going to help do that. So that's what you do in your own company. So the first thing I ask is what's the problem. This particular client I’m mentioning here is Case Study 3 actually, it doesn't say it. One of the things that comes up is too many exceptions to the rule. This company has grown to $14 million, with two people starting of in the spare bedroom of their house, and they were doubling sales, and then they hit this plateau and they're just stuck. They can't go any further. And it's because they're not doing this stuff. They're still running like, a Mom and Pop organization; no offense intended, because I’m pretty sure they will also be listening to this tape. But they love me because I'm taking good care of them, and I love them. But the point is that they’re not solving the problems. So I said, 'What's exceptions to the rule mean?' And they say, 'Too many things where we don't have a rule about it so we've got to go to this one, go to this one, go to that one,' and things get elevated all the way up to owner of the company. Customer service things. So then the next workshop is 'too many exceptions to the rule. 'I want three examples from everybody.' Okay, so then customer service comes up. 'Alright, customer service. What are some of the exceptions to the rule? I want three answers from everybody.' So we had eleven major management people in this company; we come up with a list. It's 22 - not 36 because after a while, things duplicate, right? If you have a workshop in your group, and the same problems don't come up from a couple different people, I'd be shocked. So you don't end up; if you have six people in the workshop; you don't end up with 18 things, you end up with 12 things, before you start to hit - the same things are coming
up. So then, they had 18 customer service complaints that continuously were not able to be solved by the customer service reps themselves, and had to go to - okay, come on guys. I see three people sleeping. Get up. Stand up please. Twist that spine. I hate lunch coma. It's for your own good. Breathe, yeah. Take a good breath; that nice stale air in here, yes. Move the body, there you go. Stretch this way. Good, alright, thanks. So anyway, they had 18 customer service issues that continually made their way all the way up, in some cases, to the CEO of the company, and we solved 9 of them in an hour. Nine things that have burned people's time for ten years; we solved in an hour. Oh, and then this says, 'Every person will give a different answer.' Because it's interesting, like the receptionists' perception of what's holding up the company, can be very different from the sales managers' perception. It's very different than a customer - I mean, the receptionist will bring up things that you didn't even know. They call it the iceberg of ignorance. Like management only really knows about 5% of what's going on in the company. Again, unless you're a one man army. And if you're a one man army, you spend that same one hour writing down for yourself. Excuse me. Everything that's going to stand in the way of you growing that company, and then in the next week, you write one of them on the whiteboard and you try to come up with solutions. And then you take the solutions - and here's the next steps you do guys. You break it down. Because if you don't break it down, you're wasting your time, it's not going to get solved if you say, 'Oh that's a good idea, why don't you try that next week and see how it goes.' It's not going to happen. Or, 'Okay, well let's try a bunch of different things.' You've got to be very specific. You've got to run the company like you're a serious entrepreneur. It’s like, the example I gave of Joe's Bank versus Wells Fargo Bank, you know? At Joe's Bank, when you come and you say, 'Why don't you go sit with Bill here for a little while, and watch how he does it and do what he does.' You think they do that at Wells Fargo, or do you think they have a training director, training manuals, videos that you watch, tests that you take; long before you ever observe someone else, and that's what makes a difference. Okay, so break it down. We have tasks, deadlines and procedures; so we came up with these nine solutions to the customer service. So I go, 'Alright, who's going to do it?' Because we've got to have people that will do it. 'Alright, you're going to do it? When are you going to have something that we as a group can look at? Are you going to have it next week? Is that good?' 'No, that's not reasonable because it's Thanksgiving,
we just went through this.' 'Okay, how about the following Tuesday?' I happened to do Tuesday with this company every week. And so, 'Yeah, I'll have it by the following Tuesday.' And then we'd take that and we'd start - you know, break it down; is my point. And just like a scientist, go and fix it. Little by little, step by step. Remember guys, you just want it continuous and incremental, and I said to these owners; and they know I'm right, they already completely get it; that a year from now, of these kinds of workshops - and we made really major progress in like four or five weeks - but a year of those kinds of proactive, fixing every little thing in your company; a year from now, you won't have to work half as hard as you do now. I am telling you. Just do it. Let's see. Can you commit just one hour, if it's dramatically improved the business? Involve your staff, make it mandatory. My time is up. Completely. (Groans from audience). Jay: Finish, finish, finish. He's coming back - wait, there's more. I told you you'd be transformed. (Applause) Chet: I made the main point, but let me do like three minutes and then I'll wrap. Okay, so you don't have to think of everything, your staff will give you their opinions, and all you do is ask. Bigger companies, the only thing you need to bring to those meetings is your judgement. And I teach this to the clients that I have; they're a little bigger. Just come to the meeting. Like, a lot of companies, the CEO thinks he's got to come up with everything. I've got a client; 65 shoe stores, and before I came along, he thought he had to come up - 'I need a solution for this.' I go, 'You've got 65 store owners, let's ask them. You don't have to bring anything to the meeting except you're judgement.' And he's like, 'Yeah. I like that idea.' (Laughter) 'I've been working really way too hard here.' Okay? So it's about thinking like a Fortune - (Audio cuts off) So there's 12 areas of competency that make up a great business; here they are. Okay. Time for training, master level skills. Here's how you get master level skills, everyone. Strategy versus tactics, [unclear 11:43] against clients; that's something you got to be really good at, understanding the art of sales, effective presenting - ooh, that's a really good segment. Mastering the telephone, the dream 100 sell - man, that's going to revolutionize your business someday, if you ever learn it. Time management, how to run a cold company for good-time management, follow-up procedures; you already know that's important. Setting standards for overachievement -I’ve got to get to the end because I’ve got
a joke here. Goal setting, hiring, hiring sales superstars; a really important competency; and blah, blah, blah. Role of a great leader; the one with the most passion wins. Really important. If you're passion to improve your business is greater than the resistance of your staff, you will prevail, and the business will improve. As stated when we began, you need pig-headed discipline and the ability to keep your eye on the ball, which is to constantly work on the business, not just in it. If you want master level skills in all these areas, just start working on them, because it'll make a huge difference. And so that can be you with one person, with one idea here or there, or you can be a machine with 52 proactive, one hour sessions to improve every aspect of your company, and all of it starts to cross-reference, you get a profound - final promise to motivate you: This could be you if you religiously spend one hour working on your business. Okay, that was just a joke. See how powerful visualate -oh, how'd that get in there? Okay, thank you. (Applause)
Jay Abraham Mastermind Marketing 7 Jay: ...now, was to position you briefly to understand that there's a lot of predictable science to growing a business. The thing that I stand for more than anything, is that it really isn’t an art, it is a science; it can be learned and mastered by any one of you and every one of you, provided you're willing and able to follow some systems and strategies, and that's what we're going to try to do. Chet's going to be back, and he's not going to be constrained, so he's going to concentrate on the two critical elements that I think are the Pareto principle; the 80% of what he's all about, and it's going to give you a really good foundation. He and I are involved in lots of different consulting and joint venture activities, and some of you might hear from us later, but he's really here to teach you, later on, how to do a Dream 100 and to be very strategic. Thank you, Chet. (Applause) How are you guys feeling? Have you got energy or not? Is your stomach full? (Audience replies, 'Yeah.') Okay, so here's what I think. Dave, I think we should do YMCA for a minute. (Laughter and cheering) I think we should all stand and do it. I'll do it with you and make sure my zipper's up; I just changed. (Laughter) Okay, so - wait, wait until we all stand, hold on. Mac Ross, you can do it, because you're a perfect YMCA guy. Mac Ross is going to help me for the next session; he's my colleague from time gone by, for like 50 different seminars, and he's the greatest YMCA guy I ever seen, aren't you? (Laughter)
Okay, we're going to do this with energy, right? A little energy. You guys are great. He actually talked to Village People, I swear to - okay, ready? (Clapping) Louder, Dave. Louder. (YMCA plays and audience claps along) I don't know all the words though, you have to help me. I don't know all the words. You can sing, Mac. I don't know, whatever. I know how to do that. We'll have fun. Little louder Dave. Louder Rick. Little louder, Rick. That's good. (Sings along) Go ahead, Mac, sing. Can you feel the energy, Mac? You feeling good man? Almost done. It's good, we needed this. Okay, Dave, we’re ready. Alright. (Cheering and applause) Okay, we're ready. Mac: You've been practicing that. Jay: No, I knew that - my wife - Mac knows this, this is so cool. Before I burnt out on business, or about the same time I turned 50... Mac: Oh yeah, the birthday party. Jay: And this is so cool. So my favorite group - because I'm frozen in time are the Village People. I love the Village People. (Laughter) They're my heroes. So for my 50th birthday... Mac: Particularly the policeman, wasn't it? , and we had philosophical discord, with - all over the world. Now, most parties if you invited 200 people from all over the world, what, a hundred would come? So my daughter Michelle, who's around here - Dave, we're getting back up here - takes me out, come home - it's like 7:00; the house is full... Mac: Didn't Mark Victor take you and fly you all over...? Jay: No, Michelle did. But Mark Victor was there too, he got stuck in my Porsche...it's a long story. His big body got stuck in the Porsche and locked himself in. (Laughs) Anyway - it was hilarious - for three hours, no one found him. (Laughter) I have an old Porsche with a manual lock at the bottom, and it was really complicated, and he somehow got in to move it and got locked in it for three hours. (Laughter)But, anyhow, I come in the house... Mac: That's the story you heard, anyway. Jay: This is so cool. Come in, and there are 200 people all dressed as Village People; and you were a cowboy.
Mac: Yeah, yeah. Jay: They flew in from everywhere three guys who are my ex-partners; I never talked to, didn't even want to see where they are - it was wild, it was just wild. And about 10:00 - were you there when the police came? Mac: Oh yeah. (Laughter) Jay: So the police come - this is so funny. Mac: And not only did the police come... Jay: [unclear 1:04], so the police come, and first thing happens is my wife comes to the door, and our neighbours were complaining. It was a pretty wild party. And everyone's dressed in... Mac: Of course, he didn't invite them. Jay: Didn't invite the police. So they say, 'You gotta stop this.' And she says, 'Or...?' And they said, 'Well this is a warning, if we come back, we gotta give you a citation.' And she said, 'Then what happens if we keep -' and they said, 'Then we have to send a helicopter.' And she went on, and she says, 'Well, first of all, I've spent like 80 grand for this party.' And she said - and she had like the Village People - it was great - she had Village People from Las Vegas who flew in. Then, as she was talking, all these police dressed guys came in to her, drunk, from the party... Mac: And women... Jay: And women. And then they said, 'It's okay Officers, we got the matter well in hand.' And they were looking at - (laughter) Swear to God. So then my wife basically takes over, because they figured out - because these guys were not policeman. So she goes, 'Officer, here's the deal. If the ticket is 100 bucks, we'll pay it. If you bring the helicopter and they charge us a couple of grand, my husband will get the biggest kick out of it.' And he said, 'Yeah, but the next time we'll have to arrest someone.' And she said, 'Can we volunteer someone, like - an airline - and get volunteers and pay them?' (Laughter) And they got so exasperated with my wife, they just left. (Laughter) Mac: IT's true. Jay: And you'll meet my wife tomorrow, because she's going to come. She doesn't know I talk about her behind her back, but this is the same person - if you guys heard about it - that taught me how you make the rules, and how - [unclear 2:35] correctly - how erroneous most of our perspectives are - and I've got to tell a quick story about [unclear].
Mac: You've got to tell that, yeah... Jay: The airline story? Mac: Yeah, for sure man. Jay: IT's like a defining moment in my life and my respect for my wife. Mac: I still tell it all the time. Jay: So, we're doing a seminar. My father dies, like the next week. We have to go back to Indianapolis. I've got a lot of kid, grand - not grand-kids - all kinds of kids to take. It was very expensive, and it was like last minute, but they had bereave - It was USA Air - they had bereavement.... Mac: They had like 10 kids, 5 adults.. Jay: A lot people, I was taking family, so it was like 8 grand or something. Get to the airport, the damn flight's cancelled because of weather. Mac: It was a blizzard. In the Mid-West. Jay: I won't go through the whole story, because it's a really cool story. It tells you about seven things. But to make a long story short, we got put on a different flight; a TWA flight, and we got there, and the poor woman on TWA was exasperated... Mac: Well, I think it is funny, because he's at the line, and the lady says, 'We can't help you sir.' And he's saying... Jay: Mac, something's harassing him, what is it? Mac: ...will you please move on? And he said, 'Well.' He looks round, and he says... Jay: One second...is it me? Mac: 'Is anybody going anywhere, what's the rush?' You know, because there's like 300 people sitting around there waiting for a plane... Jay: Yeah, I said, 'Why? What's the big deal? We can't get anywhere.' I mean it was just 300 people - anyway to make a long story short, they didn't want to give me a ticket, but I was well read - like you'll be - and I refused to leave. Nicely. And I said, 'So you have no obligation to make good if it's not my fault?' And they said, 'Well...' And I said, 'Put it in writing, just put it in writing that you have no obligation, and that -' and to make a long story short, we got 10 tickets to TWA for free; but that wasn’t the big deal.
We got on TWA. We get there, and the poor flight attendant is exasperated because it was going to be a low attendance afternoon flight. And all these flights got cancelled, and they had like 300 people. They were very nice, but they said, 'We can't promise we can get you guys all together.' And I was - the old Jay was not as nice and easy-going, was it. Mac: No. Jay: I was going, 'Pfft, pfft,' and like smoke coming out of my ears. And I've got all these little kids. I've got kids 6 months old, a kid a year and half old, a kid three years old, and it's like, Oh God; what are you going to do? So first place we come - you know, they hold back a lot of the really choice - like the bulkheads, for either really important people or for invalids until the end. So the first ticket we had; one ticket was a bulkhead. Prime, desirable place, right? So I very nicely asked the guy, and I said, 'You know, this has been a mess, would you mind trading with us anywhere? We got this one seat, and can we get two?' And the guy was just a real ass. He said, 'Absolutely not. I reserved this 6 weeks ago, I always get the bulkhead; I won't do it.' And I'm getting like furious, because I'm thinking what the hell are we going to do with one kid here, one kid there. And the angrier I'm getting - (makes noises), red, and I was a lot heavier then, I was going to beat the crap out of him, something really bad. My wife starts laughing. I'm thinking, okay, I'm ready to explode in anger, and she's laughing her head off. She said, 'It's no problem sir.' So she puts the baby carrier in the [unclear 5:36] - (Laughter) Sticks - wait, I swear to God - sticks the baby in there, looks at the guy, and says, 'If he cries a little, give him this,' and gave him the bottle. (Laughter and clapping) 'If he cries a lot, you might want this,' and gave him wipes, and left. And I realized in a moment, we didn't have a problem; he did. And we left. (Applause and laughter). Now, to make a long story short, because it was just an aside about my wife who's so cool - is that all our kids sat together on the flight. (Laughter) And ever since, we've never had problems; when we realized it's not our problem, it's somebody else's. And if you take that attitude, it's sort of cool. Anyhow. Alright, so Mac Ross, God bless him is really the Bo Derrick, the Dionne Sanders.... Mac: No, not Bo Derrick, no. (Laughter) Jay: (Laughs) (Applause) Wait, it's after lunch. Wait, wait - YMCA...
Mac: ...about your wife. Jay: No, that’s true, I was thinking about my wife; she's very attractive. Before his sex operation, he was Bjorn Derrick. (Laughter) Anyhow, he and I have been through a lot together. I trust him implicitly. He gets me better than sometimes I get myself. He's going to help me help you comprehend the basic Jay Abraham, and then we're going to build a lot of tactical elements so you see how it comes together. Do you want to do that, or do you want to do a little exercise? Mac: Exercise. Jay: Okay, we're going to do a very quick exercise. Mac: YMCA. Jay: YMCA. This exercise is based on - it was darling watching you do it. (Audio missing) ...on a Saturday, it's a wonderful sight. It's a wonderful sight to behold. I have to ask a question. At lunch, did you, in fact, truly and honestly meet different people? Did you discuss what has transpired, and did you get some clarified impact? Yes or no. (Audience replies, 'Yes.') Did everybody get at least one interesting insight that maybe - not the defining insight of the program, because we're at the outer periphery, but it was pretty interesting and pretty reflective, and it was actually quite provocative, and you're thinking about it a little bit even now, residually? Yes, no? (Audience replies, 'Yes.') Good. Okay, you have ten minutes, and there are ten of you; you got one minute each to say what the biggest insight you got from your discussions with other people that you had never thought about, at lunch was. And if you have time in that one minute, what you're going to do about it, if anything, and then we're going to start in our process. So Dave, do you have the Enya music - the easy music? In ten minutes, and then - where did our Rolex timekeeper go? Mac: Have somebody at each table sort of volunteer to be a moderator... Jay: You guys - yeah moderator and advancer, but in ten minutes we must stop, so where are you? So ten minutes, you know the drill. Okay, go for it Dave. Jay: Mac is going to hold me accountable. Rick, are you around? Come on, because we're going to do some Power Point's now. Okay, what I want you to see is that some of you here will see life, see an experience, see an opportunity, to see a transaction, to see a dynamic so differently that you owe it to yourself and try to grasp what they grasp. There's an old Eastern
philosophy statement, and it's by a Guru named Krishna [unclear 00:30] -not sure, but I think it's him. And it's something to the effect -and I won't do this with [unclear], but your goal in life is to observe, examine, understand, analyze, empathize - what else? Study how other people see a situation. Not to agree with them, but you have to appreciate them because that's their reality. And if you talk - if you had the good fortune, which I wish I could; I wish I could be a fly on the wall of every one of your minds right now and listen to everything that goes on for every minute remaining, and every one that has already transpired, and hear how you saw it and what your thoughts were. It's like, to Mark - what he did, it was obvious that everyone was going to get - that there were certain implications. I'm not sure you all would have if I didn't try to connect it. Maybe I’m the lame one, but it doesn’t matter. The truth of the matter is, there's so much to grow and learn from how many other people see a situation differently. And you want to add to that? Mac: Just that I think you saw in Mark Victor, who came to this program as they were -I think before Chicken Soup, if I'm not mistaken. Jay: Yeah, they attended; they paid and they came. And Jack. Mac: And they'll attribute to Jay that they learned how to run those changes here, and then perfected the art in the way that now they've become a publishing phenomenon. that hardly anyone has ever seen before. I don't know of anyone who's ever seen the number of successful roll-outs of a concept; spins and twirls.... Jay: That they’ve done? Mac: Yeah. Jay: Yeah, they took it to an art form, they really did. Mac: But did you see what they did? And you can do the same thing with your business. Jay: He gets what he's trying to say, but I’m not sure when got it, that even though he's using it as a metaphoric example, a book; it doesn't really matter. I hope you all got that There's another thing. Even if you don't want to have a book - be a best-seller, a book is a hell of a great vehicle for credibility and pre-emptive positioning. As I say to you and your kids, they're trying to get a job; let them write a book, and all things
being equal - well, I’d hire someone who went to that trouble before I'd hire somebody who didn't, wouldn’t you? Mac: Yeah, I mean it's a... Jay: Particularly if it was authoritative and a good read. If they couldn't write I'd pay somebody to write it, just a - university. What's it cost to get a really good grad student to do something like that; do a manuscript; not a lot, does it? I mean, and he teaches marketing at Columbia... Mac: And exploits grad students... Jay: That's a [unclear 2:58] right, but not - just intellectually. (Laughter) We'll protect you. Mac: Sorry. (Laughs) Jay: This is like, the first day. Okay, so here's what we're going to do, and Mac's going to help me. I’m going to give you an overview of what I think Jay Abraham 101 is, because I don't care where you are on the Jay Abraham curve; you either learned it, know it but don't do it; you sort of learned it but don't know it all; you sort of learned it in the last month or so, through whatever grounding materials you read or perused or scanned, but you really haven't done it; or you never heard it before. It doesn't matter because they're so foundationally critical to building geometrics, sustaining and compounding growth. So, let me try to do it the way that I would, and then Mac and Rick will help me simplify it for you so we can get it quick and then build on it. So, I’m about a couple of things. I'm about leverage, which I think I demonstrated earlier; did I do the leverage or not yet? Okay, I did a group yesterday. Okay, no matter how you marketers sell - there's two kinds of leverage; doctors - doctors in the audience, raise your hand. Medical doctors. Okay. Medical doctors? Okay. Two kinds of cholesterol; good and bad, right? Two kinds of leverage, good and bad. Bad kind; you set out, you're going to buy an asset or a piece of equipment or an income producing something, and as long as it works and either appreciates and you can sell it, or it makes more money; you're okay, right? If it doesn't, you're screwed, aren't you? Big time. Why am I thinking you're a pathologist? Are you? What are you? Audience member: Psychiatrist. Jay: I knew you were something close, I knew you were medical. (Laughter) No, I couldn't remember. No, I’m sorry, I was close; I was only
off by - started with a P though didn't it? Want me to guess your weight? (Laughter) So, there's two kinds of leverage in business; good and bad. Marketing is almost infinite upside. It costs you the very same fixed expense, no matter what you market; to dispatch a sales force; whether they make an effect - ten calls a day, 15 calls, 20 - it costs you the same on those calls whether they secure 50% appointment, 10%, 15%. Costs you the same on those appointments whether they close one out of 10 presented, one out of 5, one out of two, one out of one. Costs you the same to close them whether they sell on average of $100, or an average of $300, an average of $3,000. Costs you the same to get that client whether the client buys one time, whether he never buys again, buys one time every six months, one time every three months, one time every month, one time every week. Costs you the same to send a newsletter; a lead generating letter, a catalogue, a brochure, whether it affects half a percent response; 10% response. Costs the same whether there are leads coming in, whether you close on one out of - 1%, 5%, 10%. I'm trying to hurry thins, because it applies everywhere. If you go to trade shows, costs you the same to rent the booth and put up a big canvas sign where it blatantly states a name nobody cares about, or a promise of a result, that ten times - how many people come by. Costs you the same to get people's cards, whether it’s to put on a fishbowl, just to win the free TV, or whether they're looking for a result that they can't wait for you to send them viable and important information on. Costs you the same to buy those leads where they convert one percent, 10%, etc. Costs you the same to sell them - whether you sell them one thing - never sell them anything else, or whether you integrate three or four other products or services. Costs you the same to get the leads that don't convert, whether you figure any reclamation use for it or not. I can go on and on, but the point of leverage is, if you can get salespeople who normally got 10 calls in a day; to get 12,and who would have used to close 5%, to close 20%, and who used sell $200, to close $400; and clients that used to buy two times a year, to buy four. And people who used to buy thing, to buy three, and people who didn't convert, to now be worth more money to you than the people who were at trade shows - used to get 100 lousy people wanting a free TV, to get 300 who can’t wait for you to do a proposal for them. The leverage in that is so dauntingly staggering, that you can't even comprehend it. And the reason that I have 6 or $7 billion to my name, and the reason that I have a reputation that sounds hyperbolic and so
unbelievable, is not that I really am a purveyor of hype or chicanery, it's because so few people demand, accept or really, yield anywhere close to even a fraction of a fraction of the outcome. of the result, of the productivity, of the profit, of the sales, the effort, the activity, the opportunity should produce. I'm all about enhancing leverage; working on the leverage. You want to comment? Mac: There's one little catch. The leverage comes from testing and tracking. Because one thing you can tell about marketing; it is exptrapolatable; something that works on say, even a small as 500 leads, will probably work on the 5000 you have in your database. And the bigger the number you're testing, the more the extrpolatability and the more the leverage. Jay: Yep. Good. Mac: And keeping track means not just looking at your bottom line, but seeing if, in fact, you got that - the sales men went out with the new pitches, Chet was saying, with the upsell. And you can't trust their 'We did good, you did bad,' because you have to look at the numbers. If you don't look at the numbers, you can't make that independent evaluation. As Chet's story illustrated. Jay: Okay. We over here? Now, next, I'm about something called optimization, which is what I said; broken down to its simplest terms, it's about getting the maximum for minimum time, effort, risk, investment. It's about highest and best use of your opportunities, your investment, your people, your capital; human and otherwise. Who here is in commercial real estate, either directly or indirectly? Okay, you know what highest and best use means? Yes? Those of you who don't, it's a very important metaphoric example. Let's pretend that we were in Beverley Hills on Rodeo Drive. You know what Rodeo Drive is. And across the street from the Beverly Hills Hotel on Rodeo Drive, let's presume there was a big three-acre lot with a beat-up two bedroom, one bath, horribly ramshackle; just really ugly, little thousand square foot house, that was almost untenable. And we wanted to buy it. It would not be appraised by a commercial appraiser as a two bedroom, thousand square foot house. He or she would look at it and appraise it, in that location, on that lot, at what it could be worth; a lot converted to its highest and best use. As a high rise, as a hotel, as a parking garage, as a shopping mall, as an office complex. You have to look at your life and your marketing decisions on the same criteria. In order to optimize, however, you can't optimize until you first
identify all the options, all the opportunities, all the choices you have above and beyond the approach you're currently taking, because as I said earlier, most people - what I learned early in my career; you look at hundred, you look at 400 industries as I have, you find that 90% of them market a totally different way, and none of those ways are necessarily uniquely applicable to them; it's just that Industry A doesn't know what Industry B is doing. Industry B doesn't know what Industry C is doing. A concept common as dirt, as I said earlier, can have the power and the impact of an atom bomb if you're the first and only business to use it in your industry. Towards optimization: you can't optimize until you first identify all of the activities and the processes you are engaged in. I did work for Deming, '92 or '93; the organization - great training for me. I did a lot of experts and in order to help the experts, I had to learn their expertise, and Deming was the father of process improvement. You should all know that. If not, you should do a little bio research on the guy, because he was brilliant. He's the one that taught Japan how to go from Schlockmeisters to purveyors of incredibly high quality products. He did it by saying everything could be broken down to a process. As a process it can be identified, it can be measured, monitored, quantified, improved. Did I say them wrong - in the right order? Mac: I think quantified and probably early - one step away. Jay: Quantified, and measured... Mac: Well, measured is quantified right? Measured, quantified... Jay: I don't know. Okay, extrapolated, too. Okay, here's what he would do. He applied it all to output, throughput, manufacturing, operations. He'd look at 12 different people or 12 different lines in production, and say, 'Well, what's unique about - let's find the key elements that are relevant to us.' This one's got 40% greater productivity per day. This one's got 12% greater downtime. This one had 30% fewer rejects. This one is down 25% less for - all the variables. Then he'd say, 'What is it about this one that's different?' And he figured out that there may be 25 impact points that somebody consciously or unconsciously had figured out, but everybody else didn't know it. His goal - he'd say - and I’m going to use a demonstration to see if this makes sense, Mac, because my ADD may confuse people. He would say that - he'd produce it down to this. This is a process, okay? In a process there is variation. This is the band of variants. This is the best performing one, this is the worst. All this is in between. In the manufacturing, this
may be - and this applies to maybe 25 different activities. If we were looking at productivity. This may be 150% of budget. This may be 60. Somebody else online, maybe doing 80. Somebody else maybe doing 95. Somebody else maybe doing 110. Well, he'd look and see what this person's doing, or what this line is doing, and this; that these aren't - and his goal was to teach all these people what this is. Sort of the early stages of best practices. But his goal was to he used to into variants - to reduce the band of variants, to bring this up to here, by bringing all these people up closer to here, and then raise the base line, because these people would figure out what all these people were doing better than them. Does that make sense? Or is it too confusing? Okay, so warp speed ahead and translate it to the revenue generating side of your business... Mac: And of course, the reason why Deming became such a guru, was that he developed his models as basically a stat- a government statistician early on... Jay: [unclear 14:17] Mac: He couldn’t even get arrested here, but he went to Japan in the 50's and 60's, and totally revolutionized their business, because they understood the impact, and they were at a place desperate enough to compete in the world economy, where they had their infrastructure wiped out; they could start from scratch and put in these controls. And so when they came back again in the 80's and 90's again, the whole art of Japanese management - and statistical management - they were really an export coming back as an import. Jay: Great point. So now, we look at marketing. And there's two things to look at. Jay Abraham is all about two different things. First of all, starting with where you are now, because you have velocity and critical mass and motion in place. You've got stuff going, you've got shit going on. Not being vulgar. You've got ads running, you've got phone calls coming, you've got referrals coming in, you've got sales people going out, you've got catalogues being sent, you've got people coming in your door, you've got annual events, sales - first thing I try to get people to do is figure out what in the hell they're doing process wise, and then ask themselves a couple of questions. Number one; is that approach the highest and best use of the objective? For example, your goal might be to try to get a lot of leads, and maybe the only way you know is to cold call on the phone, when in fact there's fact 20 or 30 or 50 better alternative options that can be less time-
consuming, less expensive, far greater yielding. So you've got to look at what you're doing now, and figure out how to do it. The next thing is look at how many people in your organization are doing it, and how different performance levels are. Or, how many different people in your industry are doing it, and how many different performance levels there are. Or optimally - because I try to get people to travel outside their industry - how many more people outside your industry have found a better way to accomplish the end result? The goal is the same, but the means to achieve it that you have available, once you start practising what I'm trying to teach you; are near infinite. Wouldn't you agree? Mac: Yeah, I think you gotta take them through the three way - just for the basic three ways... Jay: Let me go through the three ways to grow a business model, right now. Because this is paramount to working on the geometry of the business. Everybody asks me, 'Jay, how many ways are there to grow a business?' And for 15 years, I’ve said, 'You think there are thousands, but there are three and only three that I believe in.' Rick, go ahead. Number one; increase the number of clients. Everyone still thinks 'know them as customers,' we're going to talk about the strategy parameters in a minute, and we'll talk about clients. Everyone works almost all their money, all their time, on trying to get more clients. Number two; increase the average transaction value; the size of the sale. And also - or the components that are combined into it. Number three; increase the frequency of re-purchase. (Audio missing) ...more residual value out of each client, or more utility. Maybe they have nothing else - you have nothing else to sell, so figuring out how to either get more things from other people you can sell to them that complement you, or at least get referrals or the like out of them. Okay, I'm going to show you - those of you who have seen it before, as impressive as it is or as trite as it may seem, if you aren't doing it diligently, you would take great, great, great benefits writing this down and reflecting on what you're not doing. So we're going to do a little model. We're going to take a hypothetical - and it's in one of your workbooks. But I think you're better off writing this down, because when you write it by hand, it settles in your brain better. Don't go Mac: If I had to make a guess, 90% of businesses focus on that first box... Jay: Yeah, it's done, it's done. And let me tell you...
Mac: And stopped there, trying to increase the number of clients. That's what they - start and stop at. Jay: Right. And the ludiacy of it is this; it costs you six-ten times as much, takes you three, four, five times as long, costs - it effects human capital immensely. Once you've made this sale, getting them to buy more, getting them to buy more often takes minutes; takes almost no money. It's all based on the relationship you establish at the get-go, and how strategic you are. But let's look at a model, for those of you have never seen this; and those of you who have seen it, let's revisit it again, because the more you revisit it and - Mark said you look at this card four times a day. I would think you guys should look at the next five or six points I’m going to cover - three ways to grow a business model, power Parthenon, optimization; probably two or three times every day, and make sure you hammer it in to everybody that works for you. So we've got a hypothetical business here that has a thousand - should be clients, I don't know why... Mac: Hypothetical English business. Jay: English business. I don't know why it's a hypothetical English business, but i didn't do it. Anyhow, there's a thousand clients transacting a hundred dollars of sales every time a purchase, and buying two times a year. So we extrapolate, or we extend it, and what do you have? You have a thousand people buying $100 twice. So that business is doing 200,000 in this case, pounds. We probably picked a slide up from one of the UK ones that we used to do. Okay, what would happen if we tried to improve only slightly? Not the kind of monster improvements that I'm known for, and that people in this room - I'm going to get them to show you with your hands, that they're really possible, but we're just going to go for a little conservative - we're not going to try to swing for the fences. What happened if all we tried to do is get a 10% increase across the board? And in case you think, 'Jay, we in brutal competitive times, we are in brutal economical - we are in brutal psychology time for consumers. They're looking for commodities, they're look to hammer us down,' etc. etc. etc. Let me just try to give you instantly, three or four ways you could - out of the maybe 50 available, or 150 - that you could increase the number of clients, not customers; that is a typographical era; it should have been changed but that was an old slide. Number one: how many people in this room have any clients, buyers, patients, customers if that's what you want to call them, but you won't in a minute - that don't buy as often as you
would like? How many have people have bought before, maybe don't buy even at all right now? How many know honestly what you're attrition rate is? Raise your hand. Look around the room. How many know what attrition means, raise your hand. (Laughter) How many don't? How many people would like to? Attrition is a word that refers to the number or the percentage, or the quantity of people that stop doing something with you; that stop subscribing,, that stop buying, that stop visiting you. Everybody that's ever - unless you're very unique, you don't have 100% conservation or retention, you have attrition. Some businesses have atrocious attrition. The newsletter business that Mac and I know well, they bring in a hundred people, they lose 75 of them in the first year, don't they? Mac: Many of them do. Jay: Many of them do. Not all, but many. You all have attrition. If you - first of all you've got to know who they are and where they are, or you can't save it and stop it. Second, you've got to try to stop and reclaim them; get them back. Third you've got to realize why they're leaving so you can put into place a conservation, or attrition aversion programme to - or avoidance program, to minimize or eliminate it. If you cut your attrition in half, it's like giving you an absolute increase of that amount. Except that having to spend $600 in 6 months to sell them, basically you spend nothing at all; it goes to the bottom line. Let me give you a quick insight in why people stop doing business with you. There are three main reasons. All three can be used advantageously for you in an ethical manner. Number one; they had an interruption in their life that had nothing to do with you;; maybe they went on vacation, maybe they got sick, maybe they got sent overseas, maybe there was unusual weather, maybe they - doctor's orders; they couldn't work out. Whatever it is, something happened to stop them from doing regular business with you, and the negative elements of a habit took hold. And for no reason that's negative whatsoever to you, they stopped and they either don't do it at all, they went to an alternative, or they just found somebody closer or different; but it has nothing whatsoever to do with negative from you. If you find out who those people are, if you call them, visit them, send them a letter, write them, email them; in the order I just said; you're going to get the tapes, and you did nothing more than try to literally contact them and say, 'Jay, I'm worried. It's been a year since you last transacted
business. It's either something's wrong with you or something's wrong with us, and if it's you, we care too much to let you guys be in trouble. We'll work with you if you need our help. If it's us, and we did anything to offend, or disturb you, I didn’t' do it consciously. I need to know about it because even if we never do business again, it's terribly important to me that the last transaction you do with my company be a satisfying and a profitable one; and I gotta make it right.' Those words are very powerful; I’ve used it very successfully for clients, and it's on this tape, so I urge you to listen to it. You do that and that alone, and it will save or reactivate certainly 50% or more. That's the first reason. Even the ones that didn't reactivate will be so favourably disposed that they'll turn into referral sources for you. The second one, which is a very powerful one, is: they had a bad experience. Maybe the product didn't come when it was supposed to, or didn't perform; maybe it was missing a part, maybe your people didn't call them back and service them right, maybe you're supposed to do something post-purchase and you didn't, maybe they just felt like it was not what it was proposed. Maybe a service person delivered something and walked over their white carpet and stained it, maybe a guy delivered something and ogled their wife or their daughter. Any of a number of things could have happened. Really. That you don't know about, but you're being accountable for. If you call with the utmost of heartfelt sincerity, and use the same thing - 'If we've done anything, boy, it certainly wasn't conscious. I'd like to have the chance to correct it, improve it, and hopefully we can reactivate - rekindle the relationship. But even if we don't, I've got to do the right thing.' Half those people have such humanity and such goodness and such heartfelt response for you, they’ll start dealing with you immediately. The other half, even if they don't, will be impressed and tell other people. The third reason you lose people is they outgrew the need for you product. These are a great source for referrals if you develop a referral generating system. So that's one way you can get 10%. The next way: how many people in this room - this is the mind blow, are you ready for the mind blow question of the week? Maybe? Maybe? (Audience shouts, 'Yes.') It's that or another version of YMCA. Mac: Yes, yes, we're ready! Jay: Mind blow question or YMCA. Mac: I think we're ready.
Jay: Okay. (Imitates drum roll) How many people in this room can honestly say that 10% or more of their business up to 100, emanates directly from either word of mouth or referrals? Raise you hand. Okay, I want you to take a minute and figure out what that is as a percentage conservatively; and then multiply that out times the volume you do, and then get a figure in your mind, okay? Okay, you ready? I'm going to arbitrarily point to people, and I'll call you out by color or shirt or something, because I want you to say what the percentage is, and what the dollars are. And I'm going to make a point that is going to blow your mind. Okay? You've got 30 more seconds. Would somebody - oh we've got sparkling water, thank you. Ready? Okay. Raise your hand though, if referrals - I guess, raise your hand if referrals aren't a part of your business. Now, I would ask anybody who doesn't have referrals why you don't have them. Even you Bob. I would say there's something wrong with either - you haven’t given permission to people to do it, they don't think you want it, or they don’t see very much value in it, or they're embarrassed by it. You're as - I mean, maybe they're embarrassed by it. I don't think you give them permission to tell their people that might want to...something. There's some reason. If you aren't getting at least some referrals, there's something wrong with the credibility or the quality or the perception, or you're inhibiting people. (Inaudible comment from member of audience) I wouldn't, but we'll talk about that in a minute. Okay, so those of you who get referral, I'm going to arbitrarily go around. Gentleman in the striped shirt in the far end. Do you get referrals? How much percentage? 40%? What's the dollar worth? Annual. $32,000. Gentleman in the blue shirt with the beard. Yeah, do you get referrals? Audience member: Yeah Jay: How much percentage? Audience member: About 80% percent. Jay: Eight zero? What's the dollar? Audience member: [inaudible 9:53] Jay: A year? Okay. Gentleman in the back who wooed your either girlfriend, or wife by teaching her to dance. Isn't that you with the beard? You. Didn't you say you gave somebody your card? Well, okay, but do you get referrals? (Laughter) How much, what do you think? Just give me a conservative figure. 5%, 10%? How much? What's it in dollars? Okay, $17 million a year? A year right?
Okay, let's see. There’s somebody there with a yellow shirt and his hand over his nose. I can't hardly see you, but do you get referrals? Okay, what's the percentage? Seven percent? How much is it in dollars? Okay. Who gets referrals that are least $500,000 a year more? Stand up. Mac: Look to your right. Jay: Stand up. Okay. I want to make a point. Those of you standing - and I'll have all of you stand, but this will be just as easy. Or in fact, you know, everybody that gets referrals, stand up. I'm going to make a better point. All of you stand up. And the ones that you saw maybe do half a million or more. Okay, all of you standing up, remain standing if you have in place right now - even if you've been in Jay Abraham’s septor of influence for a long time - at least one, systematic, formalized, year-round, constant referral generating process system that everybody works at key-operative times, that you monitor, you manage, and that you're really following diligently? If you're doing that, remain standing. If you're not, sit. We're not done, we're not done. Okay, so 90% of you sat down. The rest of you standing up, remain standing if you have at least two programs that you're working on continuously. Half sat. Three? Half again. Four programs? Five? Virtually everyone but Michael and partner. You can sit, Michael. Okay, now, we have looked at 400 industries. WE have found 93 unduplicated referral generating systems that cost you nothing initially, some are monetary induced ...most of them are much higher planes of intellectual compensation and psychic rewards for people who either want to feel good about contributing or want to feel good about their own purchase. The point is this: almost all of you who sat down who don't have any, which is about 90%, and the 50% who got only one, and the rest of you have maybe, on average, two and a half; probably spend a lot a hell of a lot more money on advertising, on sales forces, on trade shows, on every other form of let say, less performing marketing. Would you agree? And that there's something fundamentally wrong with that picture, would that make sense? Because - and this is going to be the definitive when you're trying to decide does Jay really know his stuff or not - you're don't to have to wait til tomorrow at 2:00, you can decide right now, because I 'm going to make a prediction, a hallucinatory, deluded prediction, Mac; and we'll see if I’m really a charlatan and a sham, because I don’t' know it, or whether I'm a lucky guesser. I believe that - see if I’m right as you go back down memory lane, and conjure up an image of all the clients that you've gotten on referral - that referral generated client; number one, buys faster, number two; buys more; number three; doesn’t negotiate as much,
pays more towards full price; number three; buys more often; number four, buys more things, number five; is more enjoyable to deal with, and number six; refers more people; and number seven; is more profitable. Am I right or wrong? (Audience replies, 'Right.') Okay, so do you see how easy it is to grow - what happened to our threeway model that was on there? Rick: I haven’t put them back here, because we were... Jay: Oh, okay, okay. I'm trying to show you how easy it is to get a 10% increase. So far I’ve shown you two. Andy Miller, where are you? Mac: And this is just one box in a list of... Jay: Oh yeah, I’m just giving you the outer peripheral. I’m trying to show you how easy it is to get geometric growth in your business. Mac: Never even went near raising your conversion level of leads, for instance. Jay: Oh no, we haven't done anything. Mac: This is one little. Jay: I was trying to show you it's a no-brainer. That - and those of you who we copied - one of the reasons I stopped selling seminars; we come up with a nuance and Carl would talk to them and say, [unclear 2:!5]. and Carl would say, 'Really?' And they'd say, 'yeah, I know all that.' And he'd say, 'Great. Jay loves to hear people who are really doing stuff, will you tell me the seven or eight referral systems you're operating and the 15 or 20 things you've tested in the last year? Maybe the - about the seven or eight strategic alliances you have in place?' And they'd go, '(Coughs) My mother's calling me.' (Laughter) And this is like, really, this is - Fran said something about me which was a great compliment but also it's my bane. I reduce this down to such elegant simplicity that people here think, 'Oh, okay.' Then they sort of just discount it because it's too simple sounding. I just showed you already I'm going to show you one more, and that's just a few, to show you how easy it is to get 10%. Really, it's easy to get 40 or 50; I'm going to prove it in a minute. Andy's going to be on, screwing up your time, but you're going to be on, and you're going to teach people that the singularly most powerful lever you've got is consultative selling. I don't teach it. He does and he's doing this just for us, to contribute, but he's a great person to go to for it. But
you can go to an Andy, who's the tops, you can go to get a book, you can get a tape set, you can get a hack sales trainer, and if they're decent at all - Andy would have to agree with this - you'll get a great outcome. Won't they? Consultative selling, properly understood, has got more leverage than anything else. you want to make a comment? A little prelude to tonight? If you put it in your - implement actuate and put a system in place - it's all about systems isn't it? It's all about systems. Because my biggest, disgusting element of most of the people that I’ve trained - I’m not disgusted with you, I'm disgusted with the fact that you've got to - went for them and went right back to the standard [unclear 3:53]. You didn't start building on it and layering it. Back at the three ways to grow business. But anyhow, Andy - Andy's going to mesmerize you tonight; we're screwing around with his timeline a little bit, but he's going to be so great, in spite of - okay, back to the three way model, Rick. No pressure. Sorry, we have it backwards here. So, I mean, I don't have time to go through all the elements right now, but we will in a few minutes. In fact I will. How many in this audience who are previous Jay Abraham attendees have used some of my methods to increase your number of clients more than 10%? Raise your hand. More than 20%, raise your hand. Look around the room. More than 30%, raise your hand. More than 40% raise your hand. Double? Triple? Okay. How many in this room have used this stuff to increase the size of the transaction more than 10%, raise your hand. 20%? 30%? 40? Double? Look around the room. These are because people did a little bit. How about frequency of purchase? 10% more? 20%? 30? 40? Okay. Here's the deal. If you've only got - put the next slide in. If you've only got a 10% increase across the board, which I swear to you , in almost every situation, time allowing to bring some people up here, will orchestrate for you. And keep in mind, the greatest illustration; that is Costco, or Sam's Club; just by letting people buy bigger quantities. They doubled or tripled or quadrupled or ten-timed the unit of sale. And even if they only made half the profit on ten times the sales, it's still like triple the profit they made from the transaction. Does that make sense? Am I being too fast for anybody? If you've only got a 10% increase across the base, it's not a 10% - and when it's extended, it's 33 and a third percent increase. And to a lot of businesses that are marginal, that could be triple, quadruple, ten times; it could be all the profit. Let's get a little more daring. Next slide.
Let's presume you went for a 33% increase in the size of the clients, and that's not hard to get, because I gave you three elements that could probably do that if you systematically follow them. Let's say you went for 25% increase in the size of the sale; and that's not even going to be hard once you learn and follow the strategy and parameter - a lot you heard but most of you don't really follow it to the T. We figured a 50% increase was realistic because those people let clients buy at their own frequency, which is not in their best interests. A simple model of reference is good. I get my hair cut every two weeks. Why? Because I want to look like I got my hair cut. I want to look my best. I want to look the most authoritative, the most powerful, the most handsome - I want my wife to think I'm really hot. (Laughter) I'm serious. I want to feel great about myself, I don't want to feel like I'm looking shabby or looking flat or whatever. Most people though, go about once every 6, 8, 12 weeks, which isn't optimal. They don't know it; their stylist let them do whatever they want, because they like the money; they're doing them a disservice. As I'm going to teach you in a few minutes; I'm going to teach you the strategy parameters, and it'll teach you to have a moral obligation, to not let people buy whenever they want, whatever they want. But you have an obligation to make certain they buy the maximum quantity, quality, combination and frequency, so they get the greatest outcome, because it's not about you making money. It's about them getting a great result. about them getting the greatest result you could orchestrate for them, and if you let them buy less, they're getting screwed. And you're part of it. You're consciously perpetrating a bit of a sham, because you're stealing productivity, profitability, protection, enjoyment, experience from them, and you can't allow that. But the model - because I'm attention deficit, I almost got on a tangent Mac, slap me. He throws me off and I go boom, into a table. If you only got those increases, look what it would be. Never even - one double. The doubling is because I don't think most people buy anywhere as close to as frequent as they should for the maximum outcome - I mean, benefit for themselves. It would be 250%. If you really went for doubles, which is not impossible to do, it would be 800% increase in business. This is how you engineer geometric growth, and it's only one of about seven ways we're going to do. Mac: And this is - let me just give a little insight to something you're going to hear on Monday. The details. The reason there’s so many people in this room is because Jay and Carl and their team managed to increase what was the standard conversion percentage of leads for this kind of
program, from 1% to 10%. But - by using existing assets, and to some extent, the magic of technology, so it's a little teaser for Monday, when you hear in detail how they did that. But that’s a thousand... Jay: It's going to be cool, I'm going to do a half hour on Monday morning explaining exactly how we did it; the psychology, the construction of it, the methodology, the technology and how it directly and explicitly applies to each and every one of you businesses and how to run with the ball and do the same thing in your business. Mac: And a thousand percent increase in the conversion that was already above industry average. Jay: That's right, you're not lying. And the truth of the matter is, we have about 25 people that didn't show up at the end, which is very disappointing, because they stole places from people that could have been here; we had a room that was bigger, but we literally turned down 20 or 30 people, and we stopped selling and most of the home studies would have come live, but we couldn't put them anywhere; and that's because of the message we want to [unclear 2:28] Okay, so... Mac: We need to go to the next - just on a framing level - the next two boxes in a... Jay: I’ve already talked about that ...faster. I know, you're too slow. Mac: No. Too detailed. Jay: I always have to keep Mac speeded up because he's so slow. I mean, understand... Mac: If he's AD, I'm ADD. Jay: Don't worry about it, we'll get you where you're supposed to go by Monday. We don't always go - when we get started after something we haven’t done for seven years, it's like a train. It's a little different out of the track, and then you build momentum, but you don't care as long as I get you there, do you really? And if you trust me, I'll get you there, because I’m committed to it. I'm committed you're all going to get at least $100,000 breakthrough, or you're going to get multiples of that by Monday night, if you help yourself do it. I can't do it all for you , but I can open up the spicket, if you guys want to drink from it. Okay, next slide. Let's do the Power Parthenon. Okay, so now we're going to do the next area of leverage.
Mac: You need to do the other two boxes, you haven't even touched on them. Jay: Oh yeah, I just told them that. But we're going to go... Mac: Let's just do the slide, briefly. Jay: You want to go back to it? Which one? He always does this to me. Mac: Average transaction value, right? Jay: We already talked about it though. Mac: Okay. Jay: Didn't I already talk about that? (Audience replies, 'yes.') Mac: Okay. Alright. Jay: I did, we just went forward and backwards again. I hurried through it just to show that they knew it. We're going to visit the actual ways to do this later; I just want you to get clear on the macro global elements and how you engineer geometry into your business. So are you clear, or am I confusing the heck out of you? (Audience replies, 'Clear.') Okay, good. Okay, go to Power Parthenon. The next area of leverage, which has been around for a long time is the power Parthenon of geometric business growth, and it's broken down in two ways. The diving board versus the Parthenon. I believe; and I've looked at about 50,000 companies and Mac agrees with me; okay, that most businesses in this country remind me of a diving board. In that 90% of their business, by and large, is dependent on one approach and one revenue source. It reminds me of a diving board. If you can envision that being a diving board; the top being the revenue, the bottom being the one lowly - even if it's generating a lot - lowly support beam that's producing it. First of all, I don't - my metaphoric analogists mind - I don't see a diving board being a mechanism to propel you up permanently to growth. You do go up temporarily, in the process of plummeting down. I see this very dangerous. Even if you're making a lot of money. The moment any factor changes in your business world, like oil prices double; they cost you twice as must to make a sales call, competition emulates your selling strategy. This is an example; we hypothetically said direct sales- for those of you that can't read anything - but we just said a lot of people just have direct sales people. How many people in the room - raise your hand - have a
sales force, either captive, salary, independent, manufacturer's rep; raise your hand. Keep them up if those people are comprehensively and professionally consultatively trained. Keep your hand up if you trained them all in consultative selling. Lot of room for improvement, Andy. Okay, raise your hand if you have been trained in consultative selling. So it's about 14-15% of the room. Okay. So this is my vision of what businesses look like today, including Brad [unclear 5:40]. Here's (Audio missing) It's dangerous. Number one; any change that happens externally could screw you up. Number two; you're sales force could say, 'Hey, we got the relationship, the owner - he or she isn't here, she's in the ivory tower; when they started they did all these great things; now they're a CEO/executive, they don't even know who the clients are, I got the relationship, I can get anybody to [unclear 00:21] for me, or fund me. I can go down the street with my contacts and make ten times as much.' Do you think that won't happen in a world that [unclear] will tell you is totally free-agent oriented now? If it's every man or woman for themselves; no loyalty? Number three; people who come to programs like mine and take action, that 5%; will say,' Hmm. There's all these sales people that are okay compensated, but that guy or woman doesn't have a clue about Jay Abraham's stuff, I think I’ll hire those people and pay them a signing bonus, and give them an incredible bonus if those people stay with me for a period of time. They won't realize it; they're the real asset. I'll decimate that person and triple my business overnight. And it'll cost me almost nothing. Hmm.' Or any other number of things. You're exposed. you're exposed. Now, how much better off are you - next slide - if you add even 1more element to your selling system to stabilize it? Let me just arbitrarily add in joint ventures there, but you can see even visually, it looks a lot more sturdy, doesn’t it? Next slide. What happens, however, if you really got serious and built what I call a power Parthenon, and I say that because it reminds me of the Parthenon in Greece - Rick, could we see the picture of the Parthenon in Greece for one minute? Which you'll see that it’s been around for eons, it's survived more changes or civilization, more military, insurgencies, more acute weather, and the only real reason it looks even that bad, is some imbecile used it as a munitions storage armament in World War 2, and a bunch of rockets went off; it's so sturdy, it's still around. Isn't that what you want your business to be like? Go back to the graphic now.
So our goal for you is to broaden what you're doing with 8 or 10 more pillars that you're not using, that will access the marketplace from multiple streams, from multiple leverage points, from multiple impact points. For example, and this is not limited to; we said in addition to direct sales, what if you did telemarketing? Referral systems, joint ventures, direct mail, advertising, develop a back end that you didn't have? Endorsements, host beneficiaries; one of those are a little nuances which we'll try to go into, time allowing, tomorrow. First of all - I'm sorry... Mac: Email marketing, web marketing. Jay: Oh yeah, we didn't finish. The point is, if you have all those in place as profit centres, as revenue streams, as key strategic elements that are being tactically deployed to reach your objective, here's what will happen. Three things. Number one; you're going to criss-cross, pollinate, and a force multiplier will take effect to certain markets. Because they'll all get hit with the same thing, and they’ll move them. And that’s the thing we're going to teach you about Monday morning, that Carl and I did with all those emails and other things. Number two; you're going to penetrate different segments of the market in different ways, and you're going to open up all kinds of opportunities that can be integrated and evolve forward. Number three; you're going to hedge your bet. Number four; you’re going to bring the power of geometry to bear another way. Why? Because if 100% of your business was coming from direct sales; but if telemarketing now added another 5%; if referral systems now added, let's say, 20% which it should because the average person's room got 20 or 30% already, and they weren't even doing anything formal. They didn’t ask for them, they didn't structure, they didn't give permission, they didn't give incentive, both psychic and financial. If joint ventures produce 20, 30, 40% - we did $1 million plus and made 750 in the last four months with Mr X. All of you in the room; how many in this room came from [unclear 4:01] raise your hand. Look around there. How many of you came from Oxford Club, raise your hand. Look around the room. How many of you came from Early to Rise, raise your hand. How many of you came from - what was another one that we did? Robin's? Raise your hand. Put them down. How many came from. let's see, Robert Allen? Raise your hand. Which other ones, Carl? [inaudible] Joe [unclear], raise your hand. Some more, Carl. Gary North, raise your hand. Okay, all of you raised your hand, stand up. Okay, it's going to be a little disruptive, but we haven't done this for a long time. Go to the outer group - go anywhere away from your table. Go
round the wall. Go round the walls. I want to make a point; graphically, you guys. Because we want to show you how powerful this stuff is. [inaudible comment from audience 4:53] You could, you could. Because the point I'm making - the principles are enough - the single principle's fine - the main decision-maker. Okay, look around this room and multiply those heads by $5000 that we wouldn't have had if we didn't do other selling systems besides us going through our list. Multiply those people times $5000, to see the graphic implications of what I'm showing on that board. Does that make sense to you? Does that make sense to you? (Applause) Okay, you can sit down. That's really powerful, don't you think? Mac: And if you would have gone down the list, they wouldn't have been any more people... Jay: Yeah, we didn't go down the whole list, by the way, there’s another but I'm trying to make a point. You do this - Gary North did 10 people, Tony Robbins did 50 people, we did 400 people, somebody else did 50. The cumulative effect though, incrementally, it cost 500 grand to do this. At 501 I’m in profit, you understand that? At 600 I'm in pretty good profit, at 3 million I'm in a lot more profit and you will be too but you gotta get that intellectually. Does that - do you want to embellish that? Mac: Only that that dynamic, it didn't take - once you had one affiliate set up, setting the next one up is relatively easy. And it's just a question of making a couple of phone calls. So it isn't as if it's quintupled your workload. In fact it made everything possible. Jay: And before you ask me, yes I will teach you how to do strategic alliances and joint ventures tomorrow night, okay? (Laughter) Is that what you were going to ask? Audience member: Yes. [inaudible question for audience member 6:26] Jay: I do different things to different people. Sometimes I help them market for nothing. I gave them what they wanted. I gave them what was the best incentive to ethically - or like the people here. I mean, the people that came and spoke for me for free, came because I made them a lot of money, and I did stuff for them. It was fair exchange. Now, but the point you gotta realize is that there's more to it. Like, let me show you all the ways you can use this. It's the mind blow. And these are just few. So you got these sales people in the field, probably
sub-optimal, cold-call, knocking on doors, don't have a good quality list, don't have a pre-qualifying system, don't have appointment setting, don't have anything, don't have anything you're milling out; you could use telemarketing, which is the first category of example; to do a few different things. Let me tell you - let me count the ways. You could use it to penetrate markets that don't cost justify sending a sales man or woman to. You could use it to sell products or services all over the world that you couldn’t' really afford to have a facility for. You could use it to set up appointments for sales people, you could use it to confirm appointments, to make sure that they're 100% people [unclear 7:29], that we're ready and allocated a time. You could use it after a sale to upsell them more things. You could use them - once you've got a client - to get them to buy more things more often. You could use them to exclusively sell other products and services that are VIP oriented. You could use it for post-purchase [unclear 7:46] which is to avoid a cancellation. You could use it to reactivate , which is changing attrition. You could use it for what, Mac? Telemarketing. Mac: Well, you can use all of it for cross fertilization, because many of your prospects and potential clients will be on multiple avenues themselves, and if you do enough of these things, they get reinforced. If they see a direct mail package, and then they see advertising, they're a synergistic effect. Even if the advertising is direct advertising. So you never know what modality people will buy into, or what is the confirming third or fourth or fifth or tenth contact, than it's necessary to enclose, but the synergistic effect of doing all these things is very high. Jay: Also, the point is, the high probability that one of those is going to be a home run is very high. For example, when you send a letter out - those of you who send letters out - if you call behind it, you can increase yield by as much as three to five or a thousand percent. Now, before you say it, 'Whoa, we can't get anybody on the phone.' we know that. But we take a different attitude than most people. We think it's about leaving very, very provocative, consistent, sequential messages, because you are having a conversation with that person's voicemail, whether you acknowledge it or not. If you do referral systems, you found out that on your own, you're doing ten to a hundred percent. What do you think would happen if you formally tried to do it? Who is the person that came to the mike earlier and talked about referrals went up 300%? Raise your hand. Or more. Somebody did. Couple of you were here this morning, when you were talking about
something that happened beforehand? Somebody did, didn't they? I'm sure of it. Mac: Yeah they did, yeah. Jay: It's 300%. I’m not saying you get 300%, but if adding that one pillar got you 30% more; you're doing a million now, it's $300,000 with almost no marketing cost. That may triple your income, and that's one thing. The odds of getting a home run are pretty good. I have generated, for myself and clients, in excess of $1 billion with endorsed relationships. $1 billion plus. Probably two or three; I stopped counting. The odds of you getting something if you do it right; we will teach you tomorrow night - or tomorrow day, I’ve got to see where the schedule is - how to do it masterfully. Got to execute. Got to drink from the well if we take you there. But one of these is going to be a home run, don't you think, Mac? And you don't care which one it is. Remember force multiplier effect? But the point is... Mac: And some may not work at all... Jay: Yeah, who cares. Mac: But that doesn't mean you need to do every single one, but you do... Jay: This is the goal, you're evolving towards this. Mac: You do try to build several columns under you r roof. Jay: Now I'm going to blow your mind and show you if you want - do you like this concept of leverage? Upside leverage? (Audience replies, 'Yes.') Can I take it a little higher? (Audience says, 'Please.') Okay, so now you got your three ways to grow a business model. Now you got -red won't work. Now you got your - this is like microscopic - look at three pillars, right? Guess what you can do? You can build sub-pillars under each one. Telemarketing; you can have a separate one doing lead generating through sales field. So everyone's selling out of the market. A separate one, reactivating. And each one of these can be - and it doesn't end. And that's how - I'm merciless and ruthless about driving people to higher levels of incremental performance and combining them to geometric growth. Mac, do you want to make a comment? Mac: I think it's sufficient. Jay: It's pretty powerful, isn't it? (Laughter) Now, let's go and look at three other ways; my 'R's,' that a colleague of ours that Mac and both have had
business relationships with, named Tom Phillips, believes in. He says there's three additional ways. The first one... Mac: This is the guy who, if…
Jay Abraham Mastermind Marketing 8 …you remember, ten years ago, took his whole company, and... Jay: To Disney World? Mac: Took over 2000 people... Jay: you went too, didn't you? Mac: Oh yeah. Jay: He just rented like four 747's, but he took $1000, in about ten years, probably to what, $400 million? Or something? Mac: He took $1000 and as of at the 15 year mark he was a $250 million company. Jay: Two five oh? Mac: And then - without any debt, any long-term debt... Jay: He also bought a bank, didn't he? Mac: Well, that's the thing - he's doing... Jay: [unclear 00:44] programs, and this is like... Mac: My wife works for him, still. He's doing it again. He's taking every just because he wants to; he's taking everybody on the Disney Cruise next year. Jay: It's probably cheap right now. (Laughter) It’s the weekend without meal service. Mac: I suspect he's renegotiated that, because he did it before; the incidents recently. But he just wanted to do that, so... But he's a very smart guy, he's wonderful... Jay: We had him at the X-Factor, and here's his three ways to grow business, which is somewhat different than mine. Mac: This one is - this corresponds to all Jay's techniques.
Jay: Yeah, but you know what? He makes this -this is a disciplined element of his business... Mac: I went to work for him from a Fortune 500 company, which pretended to do planning. And then I went to his company, which was fraction of a fraction of the size, and they did real planning, bottom-up, ground - just totally grounded planning. Everything specific, and they made it happen, they drew it. You didn't go back the next year, or the next six months and go, 'Gee, adding 10% to everything didn't work.' Which is the modality in a lot of big companies. Jay: But they had to present - all the managers had to basically - they had to engineer a growth; it's got to be a predictable growth in the business, then they got to present to the executive team, how they're going to do it, and what happens if they don't and how they're going to do it anyhow. Mac: Up and down through the company. Jay: And they work backwards. Mac: They spent a full month on planning, at least. And it works. And he he's a very smart guy. Jay: Go back a minute, I want to use an analogy. You know the stupid - the little balloons in our thing. Go back to that for a minute. Mac: And you know one thing he did that was really fun for that... Jay: And this is something - go back; and you've seen where he used to do this? Mac: With your... Jay: This is part of optimization, but you've got to start with the end result and vision in mind, then you've got to work backwards. What the heck is the strategy or [unclear 2:39], what's basically the philosophy and mindset. You've got to work backwards. And what’s going to deliver? If you guys don’t have a - I mean, saying grow our business 20% this year; if you don't have it reduced down to systems and work backwards and look at the highest and best way to do it and what's going to happen if you don't do it anyhow, you're not going to get it. Do you think, Mac? Mac: I think thinking will get you there. Jay: Okay, go back now to Tom Phillips. So the first thing he says or make growing your existing product or service, a regular product - if you're a one man or woman business, get yourself, find somebody here that you
can present to, annually or every six months, or get your accountant or your attorney, or trusted friend, and make them hold your feet to the fire. Mac: And what this means is if you have a success with something that you figure out in the process of going through this experience and using Jay's techniques, you don't just stop there. You hold your own feet to the fire and keep on going, as long as you want that business to be yours. Jay: What's the next one? Introduce a new product or service or strategic alliance each year. He, every year makes sure he ends with up a new product, a new service, a new market he penetrates. And it's ingrained in his success strategy, isn't it? Mac: Absolutely. Jay: The third one is make at least acquisition each year. Acquire assets, distribution networks; it's usually better than buying a business. Okay. Introduce a new product or service or strategy alliance - it's supposed to be strategic, it's a typo. Each year. The next one is make at least one acquisition each year, and he believes in acquiring the assets or distribution networks is usually better - I think I said distribution networks - than buying - we played with it in interview that time - than buying the business. For tax reasons, for legal reasons; but the point is, you can - one of the greatest ways to grow your business - a lot of people in your industry right now who probably aren't doing as well as you, even if you're struggling. And you're all struggling, but some of you aren't. And if you find out who's got a good reputation but making no money, you could take over their clients, their business, integrate it in yours incrementally it might not cost you very much more to service them; you could pay them a share of the revenue or the profits forever; they'd make more money for doing nothing than they probably make right now working 12 hours a day. The could sell all their products, get out of their lease… (Audio missing) ...pretty good salesmen or women in the beginning, you could put them out to work in the field for you, and give them an incredibly generous commission on the first and residual sales they generated. and if you did that all day long, you could triple or quadruple your business. that's one thing. Number two; you take products you've got to new market, you could create new products for new markets. Most people stubbornly, doggedly, and ostrich-like, steadfastly live in the past; they don't really want to think about changing, growing, and making the current success obsolete. But if you don't do it consciously to yourself,
guess what? There's somebody out there that's planning right now to do it to and for you. Mac: One of Tom's benefits of doing this, which is perhaps the hidden benefit, is if you actually do go out and do an acquisition trip, go look at properties, and the acquisition's in your business, you get to look at everything they're doing, and what's working and what's not. So even if you end up not buying anything... Jay: The education is amazing. Mac: You see the vendors, you get the vendor relationships opened up to you; it's shocking really what some people will show you in the course of trying to sell a business. And so even if you end up not being the successful bidder... Jay: you should always look at as many businesses as you could at least examine all day long. It should be a great process you go through. Mac: And as a head-hunter trip as well. Jay: Okay then we have - now what’s next? We can't decide whether that's a way or that's a - we've discussed whether that's just an extension or that's just a way, because it's very interesting what it means. What do you think? Mac: It can be both. I mean it can be in some categories Jay: So we have a colleague Mac: If it's important enough Jay: We have a colleague who is Jay Abraham trained, who came here one day and said, I've got a seventh way.' I said, 'What is it?' And he said, 'Accelerate the buying cycle.' And I said, 'Well, yeah, that's interesting.' He said, 'Most people don't even realize the faster you bring them to sale, the more they buy, the more profit they make, the more revenue you make, the more asset value your business has got.' And, at least think about it because you have control. These are the kind of variables - I feel... Mac: the thing that distinguishes Costco from a regular department store is turnover. They turnover probably ten times as much as a normal retail operation. They only work on gross 8% margin, but it doesn't matter, because their turnover is so enormous. Jay: And truthfully, to all of you, I’m slowly trying to layer this, and I'm trying to crock-cook you today and tomorrow; and then we're going to build you into really formidable strategic systematic money-making sales
and marketing machines by Monday afternoon, but if just stop now, you already get more things right now or re-remember - those of you that have been introduced to - more things than all your competitors combined. Does that mean that this is the easiest world to live in? No. Does that mean that you're going to have fearless, ruthless competitors trying everything possible, ethically and otherwise to bring you down? No. Does that not mean that consumers are out there trying to marginalize and turn you into commodities? No. Does that mean you have to accept it? Absolutely not. You've got license with the stuff we're going to get into now, it's going to just liberate you in such a light - what should I do next? Mac: Ten marketing mistakes. Jay: Okay, now, we're going to go through the fundamental - do we take them to 20? [unclear 3:08] We [unclear] about 20. Mac: 20, yes of course. Jay: But we might back up because - some of them are not yet ready for primetime mistakes. You can laugh. I like that. My ego is nourished by laughter. (Laughter) Again. (Laughter) Little louder. Ho-ho, good, thank you, thank you. Appreciate that. Okay, so we're going to go through two things. We’re talking leverage. Jay Abraham is a very simple person. I really am. I'm an opportunities’ although - and I'll be an ethical one. I want to do the least I can and get the most I can get from it, now and forever more. It's pretty simple. Am I right Mac? Mac: Absolutely. Jay: I'm a pragmatist and an opportunist, it's that simple. So we're going to start with somewhere between ten and twenty. We created 20 but I haven't pared them down because I was going to do it the day before and I didn't. So I might pare them down as we're talking but to somewhere between ten and twenty marketing mistakes every one of you; and believe me; every one of your competitors are making. and this is leverage 101. If they are costing you, if they are dragging your results down if they are costing you [unclear 4:14], or reducing your outcome if they are compromising your productivity, if they are depleting your profits, and you stop doing it and do nothing more than stopping, what happened? Duh, as Mark Victor Hansen would say. Okay, so think about - is this hard so far? It isn't really is it? Is it? Now, we're trying to get your mind set to see how much more is possible and how much fun it is. To me life is one joyous, playful game; not being disrespectful to you, but it's so much fun,
because no one gets it. And you've got glasses - we're giving you these 3D glasses and we're saying, 'Hey, let's go to the movies for the rest of our business life.' So let’s look at some marketing mistakes in the core [unclear 4:56]. Okay, number one; not testing all of your marketing ideas - and that isn't even the best - not even testing all the facets. Mac, why don't you give them the pallet of things and ways and applications. Mac: You can test message, media - message gets almost all the emphasis, but if you do a statistical analysis, and it'll show you it’s much more important to test the list you're sending to the group you're advertising to, than it is the message. The message has to be appropriately matched with the audience that you're making it to. Jay: Some is, but not necessarily where you'll find it Mac: What's that? Sorry I couldn't hear. Jay: Yeah, it is an [unclear 5:34] but I'm not going to refer you to do it. We want you to hear it, we don't want you to see it. If we wanted you to see it, we would tell you where to go. (Laughter) That's not a double entendre, serious. I mean, you won't get it the same way. If you hear it and you write it down, you'll get it at a different level. The workbook will be with you forever, and I'll have Rick give us reference points on stuff tomorrow, so we will refer you to it. If you want to look through it and not be concentrating at your prerogative - and I'm not trying to take anyone to task - there's method to our madness. The mind learns better when you write it down. Mac: You may think it's self-evident, but the truth of the matter is I've worked with dozens, if not more than dozens of direct marketing businesses who are very sophisticated, and most of the time, all they test is message, and they test small increments of where they're sending the message to. Jay: Now, again, poor Mac, I drive him crazy, because I talk, talk and then I interrupt him. And I apologize from both me to you. I'm all about leverage. I see something it's like, I see not dead people; I see live opportunities. And I want to point out another insight I don't think people see. There are probably, in the test pallet - what I'll call impact points; I don't know, sometimes there could be 10, 15 impact points in an activity. Each one of which, you could improve performance from 10, to 20, 100%. Now, I’m trying to not be - really, ludicrously lavish, but I'm talking about having five or ten ways to get twenty to twenty one times greater yield
from the same transaction. And that’s like, mind-boggling, isn't it? And I've given some of the spectrums of yield the differences and testing of price, and often... Mac: The 2100% is a figure that comes from merely testing headlines... Jay: That one thing... Mac: And it's David Ogilvie’s figures that - a great advertiser and direct marketer, and even in big campaigns, he's seen as big as 2100%. In all honestly, we've seen infinite difference. We’ve seen nothing come back on one headline, and profitable ventures come back on another. Bob Morrison was a... Jay: This guy did $21 million worth of books with a book titled 'Why SOB's succeed in Business and Nice Guys Fail.' And SOB's was an acronym for Smart Operating Business People, but he first came out with a tepid title called 'The Entrepreneur's Manual.' He sent that out and got zero response. He sent out the same mailing piece with the headline I just told you, and he did £21 million, or $25 million. Mac: Yeah, he retired on that. Jay: Pretty big difference, but, by the way, those of you who don't do direct mail. (Audio missing) I'm like, that doesn't apply to me, I don't use headlines. You sure as heck do. The headline is the opening phrase a salesperson uses when he or she tries to get an appointment or make a presentation. It's the message you leave on a phone. It's the subject matter, and/or also the first line in an email. It's the signage at a trade show exhibit. It's the headline opening it's the statement on catalogue, it's the bold descriptor underneath every sub-product in the catalogue. What else is there? Mac: It's the tie you wear, it's the stamp you put on an envelope. Jay: Well, you'd agree with that wouldn't you? Mac: It's the car you drive, it's everything that catches or anything that first catches someone's attention or doesn’t. It's the grabber, it's the thing that makes - that focuses the attention on your communication, and says, 'This might have something in it for me.' Jay: Do you remember - I don't remember their names right this moment, but they're in Denver and they have a furniture store that does about $40 million. And these guys took my stuff to the M3 and they tested everything, and they found out for example that one opening embraced,
when people walked in their store, predisposed 300% more people to buy. Three times more leverage, just from people walking in the store, by saying one 8 word sentence, differently. You want to guess what it could be? (Audience mumbles suggestions) No. Here's what it was; you'll never guess it. It's this. 'And what ad brought you into the store today?' Mac: Excellent. Jay: So it cut through all the BS, took them right to it, they gave them an education. But they tested like 25 different ways, because these guys took this seriously, and they took a story that was doing like 3 or $5 million to $40 million, in two locations; which is pretty good in the furniture business. Mac: You can test things like, at a trade show, if you sell through trade shows. You can test where you put the front table, and the design of whether or not you have a trap as a booth, or whether you have an open booth. Or whether you have people out front, or standing back, or ... Jay: Or whether there's a benefit in the signage, and bulleted features and benefits on boards underneath, or whether there's nothing. Mac: Or having real sales people or having career show people, who hand out the balloons. Jay: That's right. Mac: You test all those things fairly fast. Jay: And sometimes what we found - I mean, the tests I’ve done, 25% of the successful results are totally counterintuitive. so you know what that means is? If, like I was talking to Fran about his wife, holding her captive. If your life depended on it, and you had to put money for the life a loved one [unclear 2:55] your business, you couldn't necessarily know; and you don't need to know. All you need to do is conservatively test and not bet the store. Mac: Case in point. With all the bank mergers - banks changing names, changing names, and it's usually the big fish that gets to put their name on something. Nations Bank bought Bank of America, or merged with Bank of America. Hugh McCall was the chairman. Big ego, well deserved; was about to - the whole world was about to see everything go Nations Bank. They just decided to check, and did a survey on brand name, acceptability, visibility, positive feelings, and guess what? Which name
came back stronger? Much stronger, by a factor of two. Bank of America or Nations Bank? (Audience says, 'America.') Mac: And at the last minute they pulled the plug on Nations Bank as the corporate title. Now, on the other side, you could look at all the phone companies that have thrown away years of brand building and put funky names on their companies and started from scratch. Now, what they're paying attention to there, I don't know. But that's headlining too. Jay: Where's Kim Henry? Are you still here? You're Kim? He was here earlier; are you still here? No. Kim Henry's a friend of mine; he used to be involved with Rough Times when they were at their peak, and by changing one price from 129 to 69, was something like, quadrupled sales. And you could - what are the other things? Write this down, by the way... Mac: Well, we'll go through it. Jay: And this is the things - like this is leverage 101 at the highest magnitude; you got like 12 things you can test, and I'm going to show something really cool, that is in the workbook in a minute; on this. Go ahead. Mac: It's - obviously, test price point. You can test absolute price point, or relative price point. You can test... Jay: We'll take turns; we'll play like, a game. You do one, I'll do one. Mac: Okay, you do one. Jay: You can test the offer or proposition. Mac: You can test the format of your message, whether it be direct mail envelope or on magazine, or even a postcard; you can test your format, whether it should be in an email or... Jay: It doesn't have to be written... Mac: For instance, one interesting piece of information that a jointventure partner and I have discovered recently, is definitively email - at least in his market place which is a business-to-business market place html e-letters were pulling three or four hundred percent, persistently over [unclear 5:33], if you understand; for the plain type. That was totally against what all the pros would tell you, but it's proved out over the last six months so definitively... Jay: But it doesn't work to others. I haven’t [unclear 5:43]
Mac: HTML? Jay: Yeah. Mac: You have to test, you can't make any absolutes. What other people are doing is a lead... Jay: It's indicative but not definitive; you've got to basically - you've got to commit to be - and where’s Marshall? Marshall Ferber, where are you? Come to the mike, and now's your big chance to do a two minute soliloquy about innovation and testing, and it's relevance. Can you do that? Marshall, say hello to everybody. I promised you guys this would be exciting. Marshall has got a like, 400 IQ, and before you talk, he's got this incredible dichotomy; he was the protégé of both Demi, and also Buckminster Fuller. That's real (Audio missing) ...innovation, which is basically trying all kinds of wild and woolly experiments. The others were about optimization, which isn't wasting a cent. How do you reconcile the two? Hmmm. Marshall: Well, the whole concept here; what got Japan - it's success; was reducing variations and going through quality. Demi says what is management in one word? What is a manager in one word? Jay: I know now. Marshall: Prediction. Jay: Predictability. Marshall: You know, and his concept was any statement devoid of a prediction conveys no knowledge. So his whole idea was prediction, prediction, prediction, and you won't get a [unclear 00:34], that's what you want. That's why the Japanese cars - it's the second and third hundred thousand miles that makes the difference between a Japanese car and anyone else, because that's the way they designed it, to reduce the variation. So that's one side. The other side is, it's innovation what's killing Japan right now, because they're stuck in the paradigm of optimization, not innovation. Now, that means the offers that you want diversity, you want the greatest, most outrageous differences as you can get. So you're looking a - you want to get the people that you really can't stand, and put them in your room and actually pay them to be there, and be a pain in the butt, because they're going to get a few things differently, and it's really hard; because once you've got the idea that you're going to go with, then what the heck do you do with that crazy guy that just gave you - you want to fire? So the Japanese have killed their economy because
they have gone totally to the Demi theory of optimization, and there's no new product. The banks are sitting here; they don't - what are they going to do? So this country being the model - see, there's no elegant way to innovate except increase the variation and be a deviant.) Jay: Be a - so this - give us a very broken down to an entrepreneurial level; I’m trying to encourage people, they’ve got to test a lot of stuff. Gimme some - gimme a prospective or a soliloquy on it from a different focal thrust that'll move them to be so motivated that they'll go back and do something. Marshall: Like you say, nothing is proven until it's tested. And test the craziest ideas you can... Jay: And tell them some of the wild things that proved successful that you never would have predicted. Marshall: Well, who goes to a spa? You know? I mean, I didn't think truck drivers would go to a spa, so...(Laughter) ...it turned out that they happened to really like that. You know, certain pieces - I’m just trying to say, that's as wild as it gets, that's not where I would expect truck drivers to be - so how far out is that? I didn't even want to test that. Jay: But do you agree with me; if you want to grow, you've got to engineer breakthroughs, and breakthroughs are only going to come if you try some wild and woolly things conservatively? Marshall: The whole this is: hire that person that you can't stand when they come into the room, because they drive you crazy, and they think absolutely the wrong way, and you couldn't put up with them for ten minutes, because you just want to throw them out; because how stupid could they possibly be? And yet, that's the person who's going to come up with the crazy idea. Invariably, every innovative idea comes outside of the traditional norm, and like it or not, all of us have out patterns and as long as we stay in that pattern - what you're doing here is trying to perturb the system, let us see outside of it, and the problem of course is that we're very familiar and habitual. And a lot of things are good for a habit, but not in a world like we're in now, when 10.3 billion people and - $10.3 billion was just reduced out of the budget today, or yesterday in California. What does that mean for people? Lots people are going to now what? Have to become much more creative than they've ever thought about, and they've been in employment business.
So, if you start to look at the variability being a blessing rather than a... Jay: You've got to find it, and you've got to look for it, right? Marshall: You've got to, and - the person that makes you so uncomfortable, and makes a statement that you think.... Jay: I agree with you , but I think you got - we're trying to get these people not just to higher that, but to internalize... Marshall: Well, test it then, test, you know. Jay: No, no, that's okay, but the point is, they got to be committed ideologically, philosophically, and transactionally; that they've got to engineer breakthroughs through testing a lot of supposition, and when they get a winner, all it is is a better control to try to improve on, isn't it? Marshall: Well, it - the thing about Ederson was, he wasn't really better at his success rate than anybody else, the thing he did is he tested so many more things than anyone else, so they looked at that team here, and his ability to test was magnitudes higher than anybody else during that domain. And his success rate wasn't really better than anybody else's. Jay: Just his commitment and his prolific [unclear 4:23] ability... Marshall: ....[unclear 4:23]stupid, and make things really stupid, you know. He tried doggy hairs for his light bulb; he tried all kinds of stuff, and none of it worked until finally something did. The point being, failure was an essential part of his ingredients; so you know, 'I didn't fail, I just successfully found what didn't work.' And that was his perspective; and if you look at the great leaders, they never say failure is failure; they say 'We botched this, we had a false start, it was a glitch.' They don't say, 'I screwed up.' They say, 'Hey, I just learned something.' And your idea of testing; testing, testing, testing. If you start putting a grid on this stuff - and if you go to Japan, which I've been to and I've spent time - you know, I've carried Demi's book; his bags and his books. Everything's about being perfect. And they're perfect now and they're dying. Jay: So what's the lesson for all these people? And what we're - tie together what I'm trying to say with what you just said. Marshall: Well, two things. Optimization comes after you've got the great idea that's been tested to be true. Then you optimize the heck out of it; but the beginning is just messy, falsely, stupid, and if you don't test, you'll - it's nuts. It's totally nuts.
Mac: Yeah, there's a tension there between looking for the next breakthrough and optimizing the process... Jay: How do you reconcile the two? Mac: Don't Jay, got it... Marshall: ...it happened with Lotus; just take Lotus 123, right? They had the - they went through - why? They weren’t heading new products. So a good friend of mine went ahead and said, 'Well, look. Let's just now take the first 40 people that were hired at Lotus 123,' because they weren't getting any new products. 'And let's send them now through your employment thing here, and we're just going to change the names but we're going to keep basic resumes the same, including the president;' okay? Not one even got a call back. Jay: Really? Marshall: It was the first 40 people; not one of them got a call back. Jay: Thanks Marshall. [Unclear 6:03] Mac: Alright. No, you need to... (Applause) Jay: Okay, next. Mac: Power through... Jay: Okay, before, earlier, I made another point. did I make my point? On that? Okay, next one. Marketing mistake number two; running institutional advertising. Most people don't understand that ads should be made to justify their existence. There are two kinds of advertising. Institutional, which is more in terms of - what do they call it? Tombstone advertising; it's a declaratory statement: Mac Ross's Furniture Company. There's no benefit, no call-to-action, no offer, nothing. It's just a declaratory statement; 'Hey, we're here guys, you want to favor us with your business for no reason.' Then there’s direct response advertising and it's self-explanatory. It's designed to telegraph a benefit, an advantage, make an offer, make a proposition, provide a call-to-action, generate a positioning, imbue a product to serve as a company with - to mention: to get a targeted prospective client to raise his or her hand and contact them, visit them, email them, come in, call in, phone it; whatever it is. When you run institutional advertising, it's a crapshoot whether it ever pays off, and if it does you can't tell.
When you run direct response advertising, it always pays off or you stop running it and you get free institutional value in the process. It's pretty self-explanatory; the way to turn everything into institutional - I mean a direct response advertising, is make offers. Call-to-action. Offer people assessments, reports, benefits, free consultations, bonuses, premiums, incentives. Mac, you want to build on that? Mac: No, because we probably should [inaudible 8:01] Jay: That's okay, we'll do it. That’s fine. We're okay. What time is it right now? We'll do two more and then we'll stop and we'll take a break, a little break, at 7. Okay, so the [unclear 8:11] is run direct responses; not just display adverts; emails - it's like everyone makes fun of our emails, and yet our emails, to a little 17 or 18 thousand list, generates $7 million worth of direct sales, and yes, we did lose about 200 mailers list who desubscribed; and when I looked up 80% of them, they never bought anything from us anyhow. Mac: Institutional advertising in essence, is any advertising or messaging that doesn't ask for an action. Doesn't have to be a purchase action; it can be an involvement action, it can be an information action... Jay: Can be 'let us asses it,' 'get a free report,' 'come to a seminar;' anything and everything lead generators do. Number three - caught you off-guard didn't I? Three? Okay. Not articulating and differentiating your business. Most people don't have a clue what makes their business any different. If I asked you before you were introduced to me, why people buy from you and not your competitors, half of you couldn't give me any answer. The ones that would try feebly would say, ‘Quality, service, dependability.' That doesn't mean anything to anybody. They're general abstract platitudes. You've got to be able to - and if you can't articulate why they buy from you, you should feel damn lucky with whatever business you get. People buy because they either see advantage or benefit in buying either from them or in buying what you sell. If they don't it's only the luck of the draw, and you don't have any right to retain them. Mac, you want to talk about it a little bit? Mac: Well, just that it's probably the most powerful and yet most elusive question. If you are in a commodity business, you may not, in face, have a unique selling proposition, a unique strategic positioning. It becomes your job to develop one. You aren’t born with one. Jay: Its good; it's a good point. Rick made a good point, because each one's an independent business; you are unique because there’s a lot more
personalization, but it's only evident if you tell people. I’m trying to think who we had - I was doing something with somebody. Maybe one of you guys, last night, about something and it was so cool what they did, but they never told anybody about it, and they were so shocked and they started telling people about it, and their business tripled. You know how when FedEx came out, they said - this is when everybody else was just basically schlocky, undependable package delivery, when it absolutely positively has to be there by 10am… (Audio missing) ...if you're dissatisfied with any purchase, at any time, for any reason, you're going to have a refund, a credit, exchange; no questions asked. You know how when Dominoes came out, initially before the accidents, they said 'Hot, fresh, delicious pizzas delivered to your door in 30 minutes or less, or it's yours free.' You know how when Avis came out, they said, ‘We are number two, so we have to do more and try harder.' That's a unique selling proposition. That's a pre-emptive move that instantly articulates what's different, why you're superior, why you get it, why people should deal with you. You've got to move to make that - not just lip service, but deliver on it, and instil it throughout your whole organization. Next. Marketing mistake number four; not having a back-end product or service. It costs you a fortune, a fortune, to acquire a client, a buyer. It costs you almost nothing to add far more tiers of purchase, frequency, and residual value to it. I can’t make this work exactly well, because I don't know how to erase, which is pretty stupid. But it'll cost you a fortune to get here. first - yes. Said black on it though. Cost you a fortune...to get first...sale. (Laughter) I'm going to vie against - take Spar's paintings down; I'm going to do a bunch of stuff tonight; we'll put them up, okay? (Laughter) Works for me. (Applause) Costs you nothing, almost to, at the point of sale, add to it. Costs you nothing, almost, at the point of sale, to set people up to buy over and over again. Costs you nothing to add new purchases once you have their trust and their faith, and when you don the strategy [unclear 2:08], which we will absolutely teach you in the next segment; you’re doing them a greater service. Who is the gentleman who came and said your business took off - the radio guy - after you had to figure out the back-end? Where are you? And you said it was millions of dollars, right? Okay, you guys - all of you - have to work on the back-end. You either have a back-end or you should. there are either other products or services you sell, and you're letting people not buy, because you're not being proactive; or it's other products or services that complement, precede, correspond to, or follow the purchase
of your product that you should arrange to make available to them through you also, and make the lion's share of the profit on it. We'll get into that later. Mac, you want to talk anymore on that? Did I...? Mac: If you think that might overlap with increasing frequency of a purchase or some of the other concepts; they do. They're not - they're interlocking concepts, they're not -having a back-end is not just having another product to sell. Jay: I was trying to see if there was another board so I could - would you erase this for me, Rick? Another thing that's really critical. I can't figure out how to erase it. Another thing that's really critical. The more back-end stream you've got, the more marketing money you can afford to invest to acquire a client, to induce a sales person to sell; do you understand that? If you're selling one product, and the product sells for $1000 and you make £200 on it, and that's all you do; you've got whatever you can afford of that $200 for advertising, for sales, for overhead. If that's the first sale, and in fact, because you have seven or eight or ten, or a lifetime of back-ends, and that's no longer your whole existence, it's really your lead generation, because you've figured out how to get 25 more sales over the next three years, at an average of $100 profit apiece. You just increased your allocable amount of money you can invest in acquiring that client, that purchase, by 10, 20 times; which means you can play wretched havoc with all your competitors that don't get that. Mac: If you're a single produce, for instance, direct-marketed business, you can't afford to be in business. It costs too much money to raise that customer to have one product to sell. You need to have an array of products before you can independently go in, 99% of the time. Jay: But, you don't have to create them themselves. Mac: That's right. Jay: Thank God for creativity, ingenuity and stupidity. Creativity because people create all kinds of things. Ingenuity because they go to the point of formalizing them, producing them, creating them. Stupidity because they don't know how to market them, and they're sitting in garages or in companies gone bad, or in patterns that never get produced. All you got to do is find somebody who's got something they don't know what to do with, and you don't have to buy it from them; you could license, royalty, joint venture with it; keep the lion's share and make so much money. When I started burning out on my business, which I did, in about 1998 or 1999; I had about 40,000 people who bought about $50 million form me,
and I was tired; I didn't have the creativity to create another program. So I went out to people all over, including - where's Chet? 'Hey Chet, do you like that?' and I'd get the best stuff, and I'd package it together and I'd negotiate fiercely and I'd get 70, 80, 50, 90% of the profit. I made millions of dollars by bringing their complimentary products to my list, and repackaging them and endorsing them. There's so many ways you can create a back-end. You can be proprietary, that you create. It could be a logical extension, it could be acquiring or joint venturing other people; and I could get into this for hours; but am I confusing or stimulating? (Audience replies, 'Stimulating.') Okay. This is really big time. Corollary is create a profitable and systematic back-end, and the triple corollary is create multiple ones. We'll do one more and then we'll stop. Mac: You may or may not know this, but Jay's whole career... Jay: Before I became marketing guru. Mac: Was that he found money in people's businesses. Jay: I'd go to all these companies and all of a sudden I'd make them $10 million in windfall profits, because I'd found back-ends they didn't know; or I created them, or I joint ventured them. I mixed and matched, and I took a friendly share of the revenue. Mac: And he'd go and they would say,' But we want to know how to get new customers.' And he'd say, 'Well, okay, but we have a profit deal, so I think we're going to do the back-end first.' (Laughter) And so they never got back to getting the new customers part. Jay: Thank you. Remember the David... Mac: They didn't need them. Jay: Remember the David Hall story? Mac: Yeah. Jay: We had this guy who had his newsletter. He was selling his newsletter for $100. He had 1000 people, and he would only run ads if they broke even. And I said, 'Well, did you ever look at the correlation between how many people buy the newsletter, buy your investment products?' He said, 'No.' We looked at it; it was amazing, it's like out of 1000 subscribers and $100, he had like 250 were buying on average, about $30,000. And I said, 'Dummy, you could buy them the damn newsletter, because your backend is that.'
So we went out, we bought 145,000 people on subscription, made him $25 million on the back-end in the first year, selling his products and services. But you’ve got to look at correlation. You've got to - as Marshall said - monitor, measure, quantify... Mac: Look for affinities. Jay: So the corollary is always determine - oh excuse me. Last one. Last one until we break. Not understanding your - should be clients - clients and their needs and desires. See, one of the big problems; and it's more exacerbated today, for those of us who are not willing to change; and I've been one of those and I'm not anymore; is that what we think is valuable, our client may not. (audio missing) said, if we don't understand, if we aren't empathic, if we don't live in their world, if we don't put ourselves in their shoes, we can't really play to their needs. And I'll try to do a distillation of the strategy of pre-eminence in some bullet points later tomorrow; I'll do the essence of it when we come back, but I'll do a bigger - time allowing - tomorrow. And it has to do with empathizing, with understanding what's guiding and leading them, and until you know what they want, you can't play to their needs. Until you can articulate and verbalize what they feel in their heart, in words that noone else has ever given, you won't own them. Remember what we did - one of the greatest Masterminds we ever did; and I try all kinds of things that we experiment with and forget to ever do again. One of them was when we asked everybody what their biggest challenges, frustrations, hopes and dreams were. Went around the room, I wasted about - I thought - about 5 hours doing it and everyone thought I was crazy, but you could see physically the countenance and their faces and everything changed when they got it off their chest; the first time they verbalized what they wanted to get closer to and what they wanted to get away from. And it was liberating, because now they understood it. It was like a weight off - wasn't it? Want to say anything? Mac: I just want to say, when you take this break, and it's relatively short... Jay: Yeah, 15 minutes on this one. Mac: Try for 10, and if everybody's back for 15....But concentrate on your frustrations and articulating your top three - your challenges and frustrations, so that you can share it with your table when you get back.
Jay: Yeah, because we're going to do it. Okay, break now for just 15 minutes max, okay? It's 7,come back at 7:15 on the dot, or before. Thanks. Put some fast music on. (Audience chatters) [00:01:34.12] I’ve just got to say, you're slow. Mac: You're getting deeper, that’s the... Man 1: You guys are so good. Jay: That's Mac, I'm just following suit. Man 1: Yeah, but come on. Rick: So you guys have a couple of choices... Mac: Five pounds of sugar and a two pound bag. How you doing? Woman 1: I've always thought you guys were brilliant. (Music playing and audience still chattering) (Audio is silent [00:05:35.23] - [00:15:56.16]) (Music playing and audience chattering) [00:20:02.20] Mac: We’ve got a lot of ground to cover. It's a long day. [unclear 20:20] that Chet was talking about. Man: Are we waiting for them to come up, Rick? Are we waiting for Jay? I wonder if Mac wants to fill a little time. Did you want to fill a little time while we're waiting? Mac: I need to go get a tea, but do you want to put it on me and keep it off, and then...? Okay, because I don't mind if you put it on me, but I need to go get a tea. Or water, or something. Jay: Are we having fun yet? (Audience cheers) I can't hear you. (More cheering and clapping) Louder. (Loud cheering) Come on, come on. (Whistling and cheering) (Audience chattering [00:21:23.28]) [00:22:54.11] Jay: Am I on? Am I on? Yes, okay. We're going to finish real quickly the marketing mistakes; we're going to do a really powerful exercise that I think will be very, very impactful. So okay, Rick, you want to work the rest of them? We're going to do five more, then we're going to print out the other 20 for you, because you're getting the general idea. The idea is you
are unintentionally, unknowingly, un-purposely restricting, limiting the amount of clients, the size of the transaction, the frequency, the aggregate profit, the ease, the success, the competitive advantage; just because you're doing dumb things that you might not even thought of, and if you just stop doing them and nothing else, it's upside leverage. And that's a pretty exciting and liberating thought to contemplate, isn’t' it? At least for me it is. Okay, let’s do the next one. Next one Rick. Okay, stop. No, go back, I didn't see it. Okay. This is a really key element of my philosophy; I'm going to do it very quick, because I want to get to the point where we can do some fun things. You must educate your way out of a business problem. You can't just cut your price. A lot of people get in trouble, and they think just cutting price is going to be the answer. People won't buy things unless they appreciate it. I usually do an exercise that was pretty cool, and I'll try it again. Would you like to buy my wife's Porsche for $65,000? He said no. My wife has a Porsche that she just got and it has 1,000 miles on it. It stickers for $135,000, but it was a friend of mine's car; it was a dealer, he tricked it out. It's got about 25,000 options on it, there's only two other ones in the country that colour and with that combination. One of them is a famous rock star, the other is a famous actor. We turned down a price of $110,000 two days ago. Would you like to buy my wife's car for $60,000? (Audience says, 'Yes.') You get the point? You build it, you revere it, you demonstrably compare it, you demonstrate it, you illustrate it, you analogize it, you metaphorically compare it; and all of a sudden it has value, and you can't just lower price. Mac? Mac: [inaudible 25:15] If you go in and make an offer, and that offer is accepted immediately, what's your reaction? You're massively scared, if not disappointed, because you figured you negotiate hard enough. But if the seller comes back to you and says, 'Well, I don't think so, this is worth so much more; look at the landscaping, look at all the new plumbing.' And the negotiation takes place over time, and educationally you buy into the value of the proposition, you're satisfaction is much higher even if you pay a higher price, because of the education factor. Education is the preemptive... Jay: And that's what marketing is... Mac: If there's one thing I learned from Jay is that education is the preemptive factor in marketing... Jay: Who gets my emails? Now, you may think they're long... (Laughter) ...but I have a belief system which works for me. And it works
at training programs, it works with clients, it works for clients to their prospective market, and it works in letters. I educate and tell the truth, and I let them in to my method to my (Audio missing). If I didn't tell you what I was doing here and why I was doing it, you'd be judgmentally - you'd be critical, you'd be frustrated; but because you understand what I'm trying to do, and it's in your best interests and I'm working through it, and I'm changing as we go, and it doesn't matter what format I want, I just want to get you the best outcome financially; you're very appreciative and you're tolerant and you're having a good time, aren't you? Big difference. Educating people is what marketing is all about. Earlier, I think when I was trying to explain it, I don't know if could hear it when I said it's about basically educating them to first of all see that they have a problem, or an opportunity they haven't recognized they could capitalize on. Showing them what the impact of capitalizing it or not acting on it is, showing them how you have the only understanding of how to exploit or protect or avoid it; getting them to desire an outcome right away and getting them to desire that outcome from you. It's all educational, isn't it Mac? Mac: There's an old Latin phrase which is much admired by Classicists, and is completely wrong. Its 'Race ipsa loquitur,' which means 'The thing speaks for itself.' Well, even in poker, you have to call your hand, you can't just lay it down. You've got to say what you're up to, you have to explain what you're doing. People do not necessarily perceive the value in your proposition without explanation. Marketing is establishing value beyond the immediately apparent. That’s what it's all about. Jay: So when you’ve got a problem, people can't appreciate it. One time, I sold - I had a client that had two-three hundred thousand dollars’ worth of inventory in jewellery, and they tried to sell it themselves and sold $1,000, and I sold 100% of it out in about three days, by describing it, explaining it, telling them what it was worth - it retail, and how they got it, and I don't have time to get into this, but dozens of stories; but anytime I'm called in to solve a marketing - excuse me - a business problem, an inventory problem, a sales problem; I go to education first and foremost, because that's an infallible and probably the most powerful friend you'll ever have. Next. Not making doing business with your company easy, appealing and fun. Now, we aren’t perfect, because I don't really try to do seminars much anymore, and even products, but anybody who's part of our 25 or 30 step communication cycle had a lot of fun with it. You saw I was having fun with you; I was trying to make it easy and enjoyable. Many people take for
granted the process of dealing with their client. You should step in your client's shoes. You should try to buy from yourself; you should buy from your clients. You should make a list of all the companies and al the individuals that you love to do business with as a business and as an individual, and ask yourself why and what? Why you like it and what. Is Mike Bash here in the room? Mike? Mac: He was in the back when I saw him. Jay: He was in the back? Okay, well Mike Bash hopefully tomorrow - he's a co-founder of FedEx, and he'll talk about really being sensitive. When FedEx came into their greatness, it's because they realized that their job wasn't to sell the CEO's; it was to make the CEO's assistant look good in his eyes. And you've got to realize what your real goal is. What your real what your market really wants. What they need. What they value, not what you value. You may think this is the greatest watch, because it's smooth to the hand, it's this - I may think that that's not as important as the fact that it's made out of 18 carat gold, and it's got a - the things that are maybe not as relevant to perfection. Also, a lot of times when people are not making it easy to do business, they're not sensitive to making it easy to call to do it. I think that voicemail sucks. I think that a lot of people who save money because they don't want to pay for a receptionist are really dumb; because I think it costs most high-ticket businesses....(Applause and cheering)...a lot more than it saves them. Because you don't mind paying a premium to talk to a human being who will listen. The greatest attribute you will ever cultivate in today's economy is respect and empathy; I think. Mac? Mac: Well, you have to perceive that - when you hire that receptionist; and this is the mistake that a lot of businesses make; they perceive it as a clerical job. It's the number one sales job for anybody who does major business in their company. Jay: It is, it's the first contact. They've got to be happy, they've got to be so excited they get the chance to talk to so many wonderful people. All the time at the office - where's Carrie, are you here? Where...is Carrie here anywhere? Nobody's here. (Laughter) I bring them all, stand in the room when it's [unclear 4:54], nobody's here. Mac: It's like that restaurant you didn't want to go to anymore because I said, 'Why don't you go there?' He said, 'It's too crowded, nobody goes there anymore.' (Laughter)
Jay: It is, that's right. But my office looks forward to all the fascinating and interesting people we're going to talk to. We look forward to how many ways we’re going to help solve people's problems. Where's David Wagenford, are you here? Anybody here?
Mac: Mike Bash is back. Jay: Mike Bash, we were just talking - you're our hero, and you weren't here. Too late. But David Wagenford is a mentor of mine. He's brilliant and barmy, he's going to stretch your mind when you ever borrow a dime. He's going to show you all kinds of permutations and spins and... Mac: But let's get through these marketing mistakes. (Laughter) Jay: He taught me this. The more problems you solve, the more empathic you are, the more money you make. Next. Not telling your clients the reason why. I think the most honorable, respectful, and powerful thing you can do is let people in on the method to your madness. Tell them the reason why you do things, you're doing things, what it means to them, why you're doing it, how it's going to work. Knowledge is power. Give them knowledge; they'll feel powerful, they’ll trust the person who liberated them; think in terms of old civilizations; liberators got hoisted on people's shoulders and lofted tithe highest pinnacle of stature, presidency, rulers. That's what you'll get. Tell people the reason why and give them the basis. People won't buy, they won't sell, they won't take action unless you give them competent, qualitative, compelling, logical reasons why, and emotional permission to do it. Is that fast enough? Mac: That's not just Jay's opinion; there's a very interesting book called 'Influence: The Psychology of Persuasion,' by Robert Cialdini, where he demonstrates that working totally independently - what really turned out to be Jay's concepts; they tested them in a social psychology setting and it actually tested whether - how well tolerated it was for somebody to break into the copy line ahead of - by giving no reason - for the spectrum giving no reason, to giving a totally nonsensical reason, because such and such, and some really powerful 'because.' And people break into the copy line with giving no reason half the time got decked, and when they - all they had to do is say, 'Because,' and it didn't matter what the because was. Because the acceptance of somebody breaking in with just using the word 'because,' was almost as high for
'Because the planets are not in alignment,' to 'Because the CEO needs this right away.' It made no difference. Jay: But to your advantage, you have integrity, so you won't just capitalize on that psychological power; you'll always affix it to a logical, compelling reason, but people need to have a reason for doing things; reason for buying, reason for selling, reason for going to work for you, reason to marry you, reason to buy into your - whether you're doing it in business and in your personal life; always - it is an immutable law. Next. Mac: Only the Marines don't have to tell you why. (Laughter) Jay: I'm going to use a close to home example. We get tired of things a lot shorter than our market - a lot before our market tires of them. I used to do car dealerships; it was hilarious. They'd get a camping that would work like ad, and they'd get tired and change it. and one time I had a big one and I worked through the numbers, and it showed it would take - we figured out - like the LA Times and the readership of 3 million people, there was something like 3,000 used cars sold a week; and we figured out it was point something of the readers; and then I showed them that people aren’t that excited about getting their hands all smudgy going through the classifieds unless they're really ready to buy, and for that ad to stop working… (Audio missing)
Jay Abraham Mastermind Marketing 9 Mac: ...avenue I've got, and he told me this great story about them preparing a terrific campaign, spending months on it, and it went for final approval, because it was some new concepts all the way to the top of what was National Dairy - seal-tested that time; and the Chairman took a look at this and said, 'I’m so tired of this campaign, we have to stop running - we need to do something else.' It had never run. They had already - it had been in-house the whole time. (Laughter) Jay: So here's the deal, here's the deal. Once you start measuring, monitoring, quantifying and improving, you never stop running marketing that works. You keep running it and running it until it stops, and then you stop running it only if, when and after you find something superior; because once you know the lifetime value, the marginal net worth of a client; which is how much you can allowably expect to make from them, which tells you what you can afford to invest to acquire them, you may even be able to make out like a bandit when you lose money on marketing, but you don't stop anything when it stops working.
How many people here do direct mail? Run - do lead generating, direct sale catalogues; raise your hand. How many do it like you've got a flight? You’ll do a mailing a month or something like that; raise your hand. Well, most of you don't realize if you mail a list and it pulls X, you could mail it the next day and it'll pull 50-70% of X, and sometimes more than 100% of X, and your job is to keep mailing and mailing. Now, Carl, are you here? Carl? We did emails to the same list. How many did we do? Roughly? Three. Me and you duplicated and a couple of times you sent 20 to everybody. (Laughter) And he accidentally sent 25 once? So we probably sent 40. Now, each time we did it, what happened? Didn’t' we get another 40, 50, 500, 600, 1,000 leads? Carl: Yes. Jay: It's accumulative, sequential effect. Mac? Mac: It's - this is - you just really can't say. Especially with doing direct response, things work until they don't. Jay: Okay we're not specifically talking about - I know... Mac: And then sometimes they stop working; you suspend them for a while, but you keep them around, because... Jay: And bring them back. Mac: It's the South will rise again, at some point, and that campaign that worked before will probably work again at some point. Jay: Yeah, but don't abandon just because you're tired of it. Okay, last one; I want to tell the Gary Albert story, because it's good. Mac: Oh yeah. Jay: It's a great story about a colleague of mine that I hadn't seen for years, but he used to do mail order seminars. He'd go around the room and he'd say, 'Okay, let's do a hypothetical situation. We’re going to all own a restaurant in Los Angeles, and we're giving each one of you a singular advantage over everyone else in [unclear 2:42]. You get to pick it.' What do you want as your advantage, sir? One advantage in a restaurant in Los Angeles, what do you want it to be? Do you want the only McDonald's, do you want the only all-chicken restaurant, you want the only barbeque restaurant, you want the only restaurant - he's got - girl with the fringe, what do you want? Woman 1: Vegan.
Jay: Vegan. Okay, what do you want? One advantage; what is it going to be? Okay you can have vegan too, you can have - something else. You can have...? Okay, great [unclear 3:10]. What do you want? Best location. she wants to have it at the intersection of four different highways. What do you want? You're right. He wants a starving crowd, and that's what you want. Most people are the most lame at going after markets. You're profligate, you're promiscuous, you're not discriminating about figuring out where the best buyers lie. You don't even look at your own profile and your client base to figure out who's got a higher propensity to buy and what kind of demographic or generic types they are. Go where the buyers are. It's like in the book we wrote, they said Willy Satin got - he was the great bank robber, and they said, 'Why do you rob banks?' And he said...and he said...? (Audience shouts answer) That's where the money is. (Laughter) You should have robbed paper boys? But it's really true. It's really true. Ask yourself - it's like, I'll tell you a story about Brian, my son. Brian basically used to sell for Canon copier. He had the Eastern quadrant of Los Angeles, he had no target list, he had nothing known about him, and he was making eggs. I looked at him and said, 'That's the dumbest thing in the world. Go to the company, ask them for profiles, demographic profiles, psychographic - whatever you know about the kind of buyers, the kind of companies that have the highest probability of buying [unclear 4:20] using them over again, where they are; get a mailing list, organize it completely geographic.' and he started doing that and he worked 40% and made about three times more. It's not really that hard, is it Mac? Leverage is pretty easy if you step back and you look at it pragmatically; it's pretty logical, isn't it? Okay, now my question to you: Did anybody get anything out of those ten? (Audience says, 'Yeah.') did anybody get anything out of the previous part of this day? (Audience says, 'Yes.') Did anybody get anything out of the interaction you've done with any of the people at lunches, at the meal breaks, at the tables, yes? (Audience says, 'Yes.') Okay, I want you to take, now, I want you to take two minutes and think about what the biggest single insight, a-ha, revelation, implication; that you're going to do different is. One; not a lot, one single, the most important to you right now of all, that you've gotten so far from this day and I want you to write it down. It could be from what I did, from what Mac did, from what Brian Tracey did, from Mark did, from Chet, from me joshing somebody; from anybody talking to you, from anybody sharing
their outcome, from any combination; it doesn't matter. One big insight asset. Write it down. You've got 10 minutes to present it to around the table. Each person's got one minute or less; then each table, appoint a chairman or woman; and you really only have 10 minutes, so if you don't get done, stop. And the rest of you, you can do it at the break. Vote on the best single insight, and that winner is going to go to the mike's and that's going to be how we're going to conclude before dinner, okay? So you're going to share - yes? Man 1: Do you want the insight and the application, or just the insight? Jay: Whatever you can get in the one minute. It's up to you, but chairman... Mac: And if you can do, why not throw in the quantification too; see what the... Jay: Say here's what I’m going to do, it's great. But you've got to take a minute or less, okay? Dave, put some mellow music on. Timekeeper? Gimme two minutes and then yell at me, and then we'll take ten. And then we'll vote and we'll get people to the mikes. This is good. Okay, put on some Enya, low and quiet. Either that or Neon Dance, one or the two. Mac: We got the Steve Alpen stuff? Jay: We don't. I should Mac: I think I have one - I'll bring one down from... Jay: I like his stuff, he's nice... Mac: You should his new stuff, it's great. Jay: He's a very bright guy, quality guy. This is going pretty good. We need a new timekeeper. Who's got a Rolex? Jay: Got a chairman, make a chairman of the table, wherever you got to, stop. Please. Okay, I doubt if you got all the way around the table; I would encourage you to continue this process with whatever new group you meet at dinner, and I would encourage and recommend that you do not sit with anybody you already sat with anytime today, including the ones you came here with, but whomever has done it so far, if you have a chairman, appoint what you think was the most universal insight, that if that insight were shared at the mike, for everyone else to hear, they would get a killer expanded perspective on something they may not have thought about that's very valuable to their business. Choose that person, an then raise your hand when your table's ready.
Okay. This table, this table, this table in the back, this table go to the mike over there. Table in the back, got your hands up, you go to the mike. You guys go the mike that are waving. You guys, send your person to the mike. You send your person to the mike. You send your person to the mike. You guys in the back, send your person to the mike. How many do we need? Mac: That's good. Jay: Stop there. Mac: For now. That's good for now. Jay: One, two, three, four, five, six...it's good. Okay. Talk real quietly, come on. Vote quietly. Okay, sir? Take a minute and a half and share your insight and what you're going to do with it, okay? And the kind of business you're in. Okay, shhh, shhh, please quiet. Man 1: I’ve been selling eBooks online for the last four years... Jay: EBooks, okay. Man 1: And I've been throwing away these marketing techniques for about four years, but my biggest insight today was how you can repackage the same content over and over and over again, such as taking the content and selling it as a seminar, a video, tape series, a newsletter, a transcript. Jay: Great insight, great insight. What's the implication to everybody in this room? Man 1: so you can take almost anything that you know, and package it in multiple formats. Jay: Great, brilliant, good. Thank you. (Applause) Woman 1: My name is Debra Delosario, and I’m in the entertainment business; I create television and film. And what I - develop our franchise properties, and what I realized was that even though I had sold an old franchise to a big studio, and they had exploited it, and I got to do that and express all the different areas and the multiple platforms it could go out on, and now I had created a new property that I was developing and building; I realized that I have a huge fan base that I can go back to, create something that relates to that brand, up - bring the fans back to the table and say, 'And now I’ve got this for you.' So it's a direct line to go to an established brand, and then create a new brand based on the next property, and on the [unclear 3:15].
Jay: A lesson for everyone who has got their pen pensively in hand, waiting to write is... Woman 1: I'm sorry? Jay: The lesson that you want - you can teach... Mac: for anyone else. Woman 1: Oh, that once you establish a following, once you establish a fan base, they know who you are, they know they quality of your work, they know the soul of your work; that you can go back to them at any time, give them more of what they loved from you in the past... Jay: And they're eager and appreciative. Woman 1: Exactly, because you're giving them more of what they already love. Jay: Great insight, thank you. Woman 1: and then move on to the next one. Jay: I'll move fast because I want you guys to go to lunch - to dinner. Good. Man 2: I'm in communications, and so far everybody I've met with has all done something similar, relative in one way. That we all related to three things Brian Tracey said. Action, solution and future orientation. Well, we all in our businesses have forgotten to do certain things; we all come back to the same three fundamentals that we need to address. Jay: Good. Okay, I love it. Thanks. But wait, I just wanted to see how many different perspectives there are, and why and how it's so important to plumb the depths of perspective that everybody in this room has got the capacity of sharing with anybody else, and everybody else, because it's going to broaden your mind set and open your paradigm to so many hybrids you can combine together. Just blow your competitors out of the market. Woman 2: I've been writing a newsletter for eight years, and I’ve got about 5,000 or more - no 25,000, sorry, people who I've marketed to who have, at one time or another, been a subscriber. And I've got all their names and addresses. Every now and again, we send them a card and we find out that they've changed their address or whatever. And I’ve got a book that I can take out of my newsletters, that I've been itching to do, but I didn't think I could market it. Now, I know I can market it. (Laughter)
Jay: That's good. That's great, that's good. And you know what, it’s like Bob Allen, who you'll meet on Monday morning I think, and there's about 25 or 30 or 50 people here from him; maybe you're one of them. They're all looking for books and things to sell. You can also take it to all kinds of complementary markets and joint venture and licence to them. Great insight. Woman 2: I don't know if they'll want mine though. Jay: What is it? Woman 2: Death by Prescription. (Laughter and applause) Jay: Ohhh. Mac: Well, you never know until you ask. Jay: Give it up. Go ahead. Woman 3: Muriel [unclear 5:44], I have this little bitty kitchen store in Phoenix, Arizona, and I have a killer mailing list, every one of whom has been in the store. I mail them once a month, courtesy of Jay's marketing strategies. Jay: Muriel’s a great student. How many of our programs have you been to, or... Woman 3: Well, I kept telling people it was six, but actually it was seven. Jay: Has it helped your business? Woman 3: You kept me in business, Jay. Jay: But she really applies it, she's not - she doesn't fight it, she just goes out and tries stuff; it doesn't all work but she's built this incredible personality and voice and relationship with her market. It's very impressive. Woman 3: You know, one of the things about the programs, Jay; I always felt that the million dollar; the silver bullet; was not for me. But I worked really hard at instituting all the detail, and it just works. Anyway, I’ve got these fabulous relationships also with all the top chefs in Phoenix, who like to come and do cooking classes for us, and you know, it's just kind of obvious, isn't it, that they need customers; they're all hurting for customers in their wonderful restaurants nowadays. I've got this gorgeous mailing list and I pay them a lot of money... Jay: They all love food.
Woman 3: Yeah. And I pay them a lot of money to come do cooking classes for us, but I'll bet that they'd be delighted to have the use of my mailing list under my auspices of course; to come and do free cooking classes for me. Jay: That's a great point. That's great, I like that. Lesson to everybody else is...? Woman 3: Use your relationships; think about the host beneficiary relationships and how you can benefit somebody else by using the assets that you have. Jay: Good. Man 3: At our table, we have real estate; we've got electronic manufacture, we've got marketing, we've got mortgage, we've got medical. We all had a variety of insights and we've all decided that we've tried lots of things before and it hasn't seemed to work, so implementation is what we're focused on, specifically when Chet mentioned about the three P's. By using the three P's - and that'll only happen if we individually possess more passion than our staff has resistance. Because most of us have tried things before; all these great ideas, and never gotten them off the ground, and the reason why is our staff beats us down to the lowest level of them. If we have sufficient passion, then the staff will win because we will win by overpowering them. If we allow them to drive us down to the lowest level, not only do we lose, but they lose as well. Jay: That's great. Man 3: Implementation, the three P's, greater passion. Jay: Great. That's great, and tomorrow you'll be really good when he concentrates on the two most leveragable elements of his whole methodology. Thank you. Man 4: My name's Jim Ford, I'm in communications. The one thing we talked about was - and the one thing that I’ve got now, is this changing the focus of our employees in the company that are dealing with customers, from something that's negative and apprehensive about making a mistake, or trying to solve a problem, to finding a good thing with the problem so they can solve it; and also if they do make a mistake, use some kind of positive feedback to them, so that they don't make that mistake again.
Jay: Great. Thank you. And Mike Bash will be very, very impactful to you tomorrow. Next. Man 5: Hi, my name's Lou Altman, I’m the president of Globefone, and we help international business travellers frustrated with cell phones or satellite phones that don't work where they're going. We're going to increase our revenue this year 40 to 50% by doing nothing. So I have eleven words. It's not rocket surgery, you just have to do it. Any of those strategies, anything at all, is going to impact our business at a measurable scale, because we have done nothing in the past. And it's common sense, right? (Laughter) Jay: You're talking to the choir here. Man 5: It's a one word answer: Duh. (Laughter) Jay: Alright, thanks. Great. Woman 4: Hi, Yvonne Batten again, and I promise this was not my idea to be up here; my table asked me to come up here and speak for the second time. Mac: My table made me do it, huh? Woman 4: We have all been impacted across a variety of levels over the course of the day, and let me say thank you to all of you. You are wonderful people, and I am learning by leaps and bounds over the course of just this one day; I’m looking forward to the rest of the seminar. I was really impressed and touched when Mark Victor Hansen was talking about doing lots of things, because in addition to the fitness business with the exercise videos and the workshops, and the radio show with my husband, I also have a line of children's books and songs to go with them, and I’m working on another book for grown-ups as well. And I spend so much time working in the business; I'm doing the writing, I'm doing the singing, I'm doing the teaching of the classes, I'm talking on the radio; that when Chet got to talking about on the business, it was like, duh. I have no three P's. I've done no planning, I've got no policies, I've got no procedures. So literally, every time it came to us having a workshop, my husband and I would say, 'Okay, who's in charge of the sound system, who's in charge of getting the flyers out, who's in charge of writing down who's coming so we know how to contact them again?' Literally, every time we do something, we start from ground zero, which is my most major marketing challenge, because that's the name of my fitness video series; and of course, after September 11th, nobody wants to see any program
called 'From Ground Zero,' on their store shelves. (Tentative laughter) But to a person at our table, the three P's are what impacted us the most. Jay: Good. Thanks a lot. Woman 5: Hi, I'm Linda Slocomb, I teach people how to invest in government securities that have high rates of return, high level of safety backed by real estate, and I teach them how to do this from the comfort of their home using the Internet. And one of the key things that we felt that our table was the primary focus, was the follow-up, and the planned method of follow-up; and not only following up by one method such as email or phone, but combining multiple methods: phone, email, snail mail, lumpy mail; altogether, and creating a defined pattern of follow-up. Jay: Good, thanks. I was looking - guys, even if you're a little tired, make those pens work, because if you don't imply and - implication this exercise is a waste, I just basically mined 650 people, found the most important 50 insights so I basically compressed it down and articulating what it is. Please force yourself to make an interpretive comment, and start doing this the rest of the day. You'll appreciate me for forcing you. Thanks a lot. Mac: Or if you have a contribution for these people, pass it on. Jay: Yeah, pass it on. Yeah, write it to us, and we'll bring it out tomorrow or later tonight. Mac's going to do a lot of work with you. Go ahead. Woman 6: My name is Sarah and I've been a business manager of a seminar company, and we bring big speakers to our community and produce events, and we also have our own in-house business development seminar, which is sort of a microcosm of what we're doing here; called the 'Successism that Never Fails.' And the theme that emerged from our table was systems. Whatever the problem is, it is creating a particular system for handling that that is the solution, whether it's the three P's, or multiple streams of revenue, so you have the pyramid instead of the diving board; but the system is going to be the solution for your business. so take the time to solve the problem, knock down the target, create a system for getting referrals, create a system for your marketing. Jay: That's good. That's good; that's very impressive, I like that one. Sir? Man 6: My name is Franklin Sanders, I'm in the physical gold and silver business, and I publish a newsletter about the gold and silver markets. And the thing that we talked about was that it's easy after you've been in the business a long number of years, to become jagged with it. So that
you fall out of touch with you original passion; it's just like being married, you have to stay in touch with that original passion... Jay: Great insight. Man 6: And if you lose touch with it, then you've got to go back and for your customer's sake, you have to put together a program that gives -that works him through step-by-step, what he needs in the way of information, and then implementation. Jay: Good. I like that a lot, thank you. This is good. I hope people are writing notes and thinking about the implication to them. Woman 7: Hi, I'm Susanne McBrian, I'm an emerging visual artist, so in a lot of ways, I'm coming here at ground zero, wherever you are; with no clients and - so part of what I’m coming away with is my personal insight, is - and I'm looking around the room and I'm thinking, how much more energy is there in here because there's beautiful art on the walls? My god, I could do that. I have so many friends who do seminars and other sorts of things like that, that I could just help beautify their presentation. If I get sales out of that, that's really cool. And you know what? I know a heck of a lot of other visual artists who are also just dying for exposure. I mean, this is in the - what you really want are sales, but a lot of people just simply need the practice as an emerging artist, at getting an exhibition together; at getting stuff framed; getting it on the wall, and talking to people as they come by and look at their artwork. That's my personal insight, and it’s like, 'Oh my gosh. I can do this.' and I'm coming away with such a great deal of hope, and I think that the most common insight that I was gathering from our group at the table was simply, we're finally asking the question 'how?' and getting a lot of relief in the sense that you're finding answers in amongst a very safe, supportive environment, with your peers. ...at my table suggested, 'My gosh, why can't my clients become my peers? I can use the education process to have them become part of the process instead of me versus them.' Jay: That's great, thank you. Man 7: My name is John Barr, and our table thought that the statement about breakthroughs being a driver for change, made a lot of sense. We all are creatures of habit, it's hard to search out of our areas of expertise. But if you meet people, or just work in different areas; that's where growth - not totally, but that’s where growth can occur. Very positive.
Jay: Good, good, [unclear 00:47]. Okay, that's great, thank you. And you should all take a page from that. Thank you very much. Man 8: My name is Mark Walker, and we have a construction material wholesale business in Portland, Oregon. We started in 1994. In the late 90's we came across this X-Factor program that Jay had put out, and we bought a home study version and implemented, very systematically, the things that we learned from that. Jay: Has it worked? Man 8: We just missed the Inc. 500 by 15 percentage points. Jay: Wow. Man 8: So it was very dramatic. And it was a systematic approach to developing prospects, customers; cultivating those customers, following up routinely and continuing to work those systems day after day, that produced those results. We stopped doing that because we got so busy. And we plateaued. So as we surveyed the table, the general thing that came out was, you've got to return to a systematic, consistent approach, test it, make sure it works, and do it time after time after time. And don't stop doing it when you're successful. Jay: Great, thank you. Man 9: I'm Will Bonner, and I work for Early to Rise. some of you might receive that. There’s the often ignored referral program, which I was realizing that if only 2% of our subscribers referred us, we'd get 1400 names. these names are valued at around $40 apiece, so that's like $50,000 that we were ignoring, and it could be a really profitable thing if we just do a couple of programs. Jay: If you have good will, and do you have people who trust you, and you trust them, and you're really dedicated, and you don't put together systems to encourage and help them make it easy to refer quality people they know they work with, that work for them; shame on you. It's a great insight, thank you. Man 10: Hi, my name's Joe Shank, and I'm president and CEO of Software Safety. We do software quality consultant in the pharmaceutical industry. I guess a common theme at our table really reflected on Chet Holmes' comments on the three P's, and actually, part of our consulting process is doing policies and procedures for pharmaceutical companies with respect to their computer systems. But we don't have policies and procedures ourselves, for sales. And consequently our sales are kind of one
dimensional, so if we have a sales failure where a customer rejects talking to us, or rejects a proposal or rejects anything, we pretty much move on to the next one. And it's pretty expensive proposition, so our biggest insight was getting some procedures to handle sales rejections, to keep finding ultimate ways to convert them to the next step. Jay: Great, thank you. Man 11: My name is Steve Bourne, I work for a company that designs, markets and sells nutritional supplements in fields - primarily to endurance athletes. And I think what we learned, or what was universally accepted at our table was the need to rely not just on one avenue of marketing, but on several. And I know for me and our company, what I found happens to me is, one areas of marketing works so successfully that I or the company tends to neglect other areas that we either have not tried yet, or that have already worked, and we maybe - it's just we get the blinders on or we get more complacent and we rely too heavily on just one area of marketing, and I think our goal is to implement more areas of marketing, so that we can garner new customers and reach our old customers. I think that was the thing... Jay: What do you think the lesson to everybody is? Man 11: Don't rely just on one area of marketing, test everything, take some risks, and you know, when something works, don't neglect or forget about the other things that have worked. Go with everything. Jay: Great. Thank you. I want to go fast only because I want to get you all done; I've got to set you up for a really powerful dynamic tonight. Good. Man 12: I'm Jack Klein, I’m in the commercial real estate business, and our table basically felt that referrals, which is largely uncovered and - one thing we should probably do is first account for what the value of a referral is. My own personal case; our referrals are worth about $25,000 apiece, and we don't have a formal referral program. Frankly, we have implemented Jay's ideas for an extensive period of time, and we have great new client acquisition programs, great follow-up with existing client programs; but we don't have a referral program. We just accept what comes to us, so I think the biggest motivator is determine the value of one of these things, that's very easy and tangible to see, and say get off your butt and get something done. Thanks. Jay: Great. Man 13: Hi, I’m Cliff Johnstone, with Adrian Designs. We manufacture gold chains here in California. The thing that came up at our table was using a
multiple approach on a certain attack, and the one idea that come up is with trade shows, we never know exactly what it’s going to get to attract somebody to a trade show. So we've done - instead of doing one mailer or two mailers, we're doing four or five different mailers to the same crowd, and it's amazing which particular one actually people respond to. they don't come with it - and even we're surprised ourselves as to which one they respond to. And to sort of continue to multiply on that. Because I think we're... Jay: [unclear 6:30], your good credit, you're down doing lots of different integrated things, aren't you? Man 13: Right. Jay: And the Kimble effect is very powerful. Mac: How big a difference between the five different...? Man 13: I'd say there's a 30% increase in just attendance. Just from using... Mac: But you found a big differential between the various pieces? Man 13: You mean one piece over another one? Yeah, it shocks us that sometime everybody will come with one or two, and the other ones not at all. Jay: Pretty good if you're doing multiple one, isn't it? Man 13: It's good that we did. Jay: Okay. Man 14: My name Steve Krause. Our company develops health and nutrition products and skincare products; it's definitely high quality; they've got an oxygen-enhanced base, and I've been spending so much time, over the last six years, working at the business, that I've forgotten my first passion, which was marketing and sales. And I have to tell you , the problem with the greatest paradigm was realizing that I haven't been taking care, not of my customers, because I do that; but I haven't been taking care of myself, in coming to events like this to realize there are others who can be incredible resources. And I think that's probably the thing that I can take away from this; is that don't forget to take care of yourself. Jay: Great, thanks.
Man 15: Yeah, Chris Wray, with ICC Business Products, Indiana Carbon, and we deal in supplies - we do supplies from ITDP, all the down through office supplies. And I was just overwhelmed here; and our table was; with so many ways to make money, it just amazes you with all there is. But what really hit me, is the referrals and the hands going up all over the room, and then these people saying it was like 10, 20% and up, that they were generating from referrals. And I've got a database with thousands of people; happy customers. Some people have been buying from me for 20 years. Never have asked them for a referral. There will be a referral procedure in place at my company, by the end of next week. (Laughter) Thank you. (Applause) Jay: Great. Carl...is Carl here? Mac: Yeah he's right there. Jay: Do we have, in the tactical force, do we have referrals in there? Carl: Yes. Jay: So we're giving you, on the last day, like four of five hundred page tactical, and it’s got 93 referral systems in it, I think. So you'll enjoy that a lot. Mac: Literally, 93. Jay: [unclear 8:49], talk and transcribe; I've spent a lot of money putting it together and transcribing it for you, because it was a tape thing. So you'll get it, and it's like 400 pages, just 'here's the tactics.' So you'll enjoy that. (Applause) Yes? Wait a minute, it's not working. You've got to pay attention, Dave; the guy's over here. Carl: [inaudible 9:06] your grounding material has a better program. Jay: Then, okay, so you've already got that in there, use it. We'll talk about - Carl, just write it down for me, we'll talk about it in the morning. Man 16: Hi. I think that one important point Brian Tracey said is that successful people fail. If you fail, you're not a loser, and it's very important because a lot of people, they don't start because they're afraid to fail. But it's part of the process, and you just learn from it. Move on. Jay: Great. See, testing; there's no negative. If something doesn't work, you can almost be gleeful and say, 'Well, I don't have to spend any time in that direction, I can go over here.' Do you remember - a lot of people that are my age or older - I’m going to be 54; when we were kids, you would get a toy robot. And the robot would hit a wall and do a quarter turn, and
hit another wall and do a quarter turn. If I point it over there, it would go out that door if you gave it enough time to test and adjust. Use that as a metaphor; you're just getting closer to the answer, do you understand that? Just never believe that you should drop a lot of money or a lot of expectations; test lots of things, don't be judgemental, don't try to wish for something; just watch and just assassinate what works and what doesn't and run with wind; and cut your losses on the losers, and you'll be massively successful. Man 16: No offense to Jay or the other speakers, but I think the number one thing in here is the energy. You look into people's eyes, and they've got that passion, and that hunger, and... Jay: We’ve cracked that element. Man 16: I love that part. And I guess when I go back, that's what I 'm going to go after, but our number one - My name is Curtis Hogan, and I'm with a company that does Christmas lighting and landscape lighting; so we're elves at our best, spreading Christmas cheer; but we've grown so fast and so quickly that we've been caught up in that sucking, swirling sound, with really no focus. Taking that to a marketing ploy; we teach our guys to market with a rifle. Shoot; powerful shooting in one direction. Well, you know I hear about having variety and things like that, so I think we'll alter that. We'll shoot with a shotgun, and if people don't know what a shotgun does, it sends out pellets, and it hits every different place, which is our variety. Then we hone in on those, and maybe we shoot those with the rifle, with the paunch and with the vigour, and the testing and the tracking, and all the things that we've talked about. I think we can be more successful in that way. So I'm saying being focused in our marketing, tracking it, but still be open-minded to try a number of different things, just like the shotgun shell. Jay: Great, thank you. Woman 8: Hi, my name is Denise Michaels, and we had a lot of great ideas going around our table, and a pretty democratic discussion; I would say the number one vote-getter out of all of them came from one gentleman when he said, 'I am criminally neglecting my clients.' Jay: That's great, that's great. And tomorrow we'll do the strategy parameters so you can understand the moral obligation you have to make sure they never buy less than they should, less combinations, less quality, less frequently; for their benefit, not yours.
Man 17: Hi, my name is Cory [unclear 12:11], and at our table, the idea that we found probably the most universally applicable was the concept that your greatest weakness is the limit for your earnings; that Brian Tracey brought up, and a lot of times in your business, you spend a lot of time on these things, that you go, 'Why am I spending all my time on this stuff? It's driving me crazy.' But when you recognize that's what's holding you up, it might be easier to justify the time spent on those things and take the hour a week, as Chet said, and get those systems in place, and work on your weakest link; because then you're going to raise everything up about what you're doing. So that was our a-ha. Jay: Good, thank you. Okay, only because its... Mac: Well, believe it or not, he's going to sugar-coat it. You won't eat unless you know - until we have dinner. Jay: We got to get you to eat or you're going to be mad at me. Mac: They're going to close the kitchen. Jay: We get so energized that we don't eat for these things, but truthfully I've got to get you out and so we can get you fed and back, so Rick...we've got something you need to do when you get out, you can just pick them up, right? Okay, here's the deal. Marshall, Edwin, who will where are you Edwin? Mac: Why don't we just tell them - but if you have the energy when we come back... Jay: We're going to do the rest of them... Mac: Anybody who wants to... Jay: Anyone at this table who's in the line, we’re going to do you when you come back, only because we've got to get you fed. I'm sorry, and isn't this a wonderful dynamic? So please don't be offended; don't leave yet, don't leave yet. Please, wait please. Sorry. We got another dynamic that is a really interesting exercise for tomorrow; were not done. We’re going to come back and Mac's going to be here; we're going to do other stuff. But Marshall, Edwin - I am involved in a service where we analyze Marshall reads 40 books; he's an animal, he reads 40 books a month, finds the one that's the most pivotal, analyzes it, interviews the author, does all kinds of incredible things, and he's published 40 of them so far. That's like reading 1600. We’ve taken a dozen of the best ones of the most relevant to you; we’ve printed out one for each one of you. We want
you to take one. It's about a 10 page summary - you have all 39 in a CD you're going to get...when? Monday? Rick: It's on Monday... Jay: But that's not the point. We want you to read it tonight or tomorrow; it'll take you like 10 minutes, 15 minutes, and we want you to make a note of the insights you got from it that you can apply to your business, and we're going to do an exercise in the morning, and you're going to see how important it is to read and learn about all the new ideas and new perspectives out there and find a way to synthesize it, because we're going to show you how much power that is. So pick one up on the way out, right? Rick: Yeah, and then you tell them what to do for tomorrow morning. Jay: All you do tonight is read it and comprehend it, and be ready to talk about what you got out of it in the morning. Now, what else? Did we change everything around or not? Rick: Tomorrow morning there will be placards on each table and a title of [unclear 14:56] that you will take home and read tonight. Jay: So you'll sit at different tables. Okay, you've got the tipping point all sitting together to discuss it. You understand that? Just- you're going to have a reading room, and it's going to be really killer. Rick: Then you sit and compare notes. Jay: Okay, what about speaking? Where are we on the speaking for tonight? Rick: The speaking is - you're on and then Mac is on, and then... Jay: Alright, okay. So come back and it'll probably be Mac because he's got about three killer hours on direct response. He'll finish this, the lines, because I think getting what these people got is incredible, but I think you should all do the exercise with one another, at the other tables you do, and then Mac's going to work you through advertising, direct response, right? And all that goes bump in the marketing night. And then tomorrow morning... Rick: Tomorrow morning, 7:00, you will be in [unclear 15:53] Jay: And he's going to do a killer - when he's fresh - a killer one on consultative selling, and we'll continue. Rick: 7am.
Jay: Yeah, we changed the rules. Oh, you want to go to six? Rick: Want to make sure you guys appreciate Mac's level of competency and expertise in - he has laboured endlessly over the last 15 years to put together one of the finest programs on direct response copywriting. This is a session you do not want to miss.
Jay: Oh, yeah, it's going to be killer. Rick: You do not want to go home until he goes home. Jay: Oh yeah, because here's the deal. Mac will sit through and work with your copy. He'll do clinics right here, on the stuff you guys want. He’ll say, 'Okay, here's how you build it; let's take your ad, let's take your sales, let's take your email, let's see what's wrong with it. Let's build it, let's discuss it.' He's a killer - and we changed it around because... Rick: He's a genius. Jay: We want you to have more time with him, because we think it's going to transform you for tomorrow's events. And then Andy's going to switch, so bear with us. We know we're stretching you, but for three days in your life, believe me, you're not going to go home and find 650 people open to giving, you’re not going to find 19 experts willing to basically give their hearts out and do this, so we’re just trying to bring it all together. And I'm trying to do it in three days so it doesn’t kill you and charge you like, one fifth of what we normally do; because I think it's going to be a killer for you. But work with us a little bit, okay? (Applause) Okay, thanks guys. See you. Rick: Was it good? Good Audience member: No dessert! Rick: No dessert? What was great about it? Audience member: It was fast, it was hot. Mac: It was done. Audience member: It's been paid for. (Audience chattering) Rick: Alright. Can we close the doors? Can we get the doors closed? Question, question. How many people did not get their analysis? Your
[unclear 00:50] analysis by Marshall Ferber. How many people did not get their copy? One - anybody else? Two. Okay, those people that did not, there's going to be a person; [unclear 1:05] Fox, as you leave, okay. Pick up your copy. Now, this is for everybody. you want to read that tonight. You want to pick out, you want to be impacted by it, you want to figure out what you're learning from it, you want to be prepared to discuss it tomorrow. It's going to be one of the important exercises, trust me on that one. Okay. When you come back tomorrow - as you're going into the room, I want you to be clear about this; you want to sit at the table that has the title of the analysis that you have. Okay? Anybody not get that, raise your hand. So, you want to - you did get it? Did you get it? Okay, alright. Audience member: Is there something else besides this? Rick: No. Just be prepared to discuss it, alright. So with that said, you guys are in for a real treat. You're satiated, you're full, you're ready to go, and I can’t tell you how happy I am for you that you have the opportunity to listen to this man. He is one of the - he is a reservoir of how to posture your company using the cryptic word. Mac: not just [unclear 2:54] Thank you very much, I really appreciate it. No, I do. Rick: So here he is...(Laughter) Mac: No, no, I don’t mean to - no. Rick: You interrupted your own - I'm painting the halo. Mac: I know, but one of the - there are a couple of curses in life. One is a noble birth, and the other is a powerful introduction, where you disappoint everybody after. (Laughter) Wouldn't you rather sneak up on them, and...I don't know. So under promise and over deliver, that kind of stuff. No, I really do appreciate your kind words, and you're right, I have been working on this for more than 15 years, and I've tried to put the congealed product of my experience. Congealed is probably not the right word. (Laughs) Copywrite. [Unclear 3:40], frozen or...distilled. That's what it is. See, this is copywriting just here, just - we just improved the pitch right on the spot. I'm going to start it - let me tell what we're going to do. I'm going to start with a little bit, a quick kind of flash review of some strategy principles that I work with, and then segue into some ad principles, but what I really want to do is get down and dirty with - there
are at least 10 people here that have bought things that I want to work with here. And then I also want to run you through an exercise, so we've got a pretty heavy schedule. Please, if I run through some principle stuff really fast, realize it's just - you probably have some feeling for this already. I just want to review it for you. And I'm going to be running back and forth - I forgot my wireless presenter thing - I'm going to be running back and forth between here and the podium to do my laptop, and since it - I'll probably get over there less than I want to, because....No, this is fine. I'll just live with it. One of the things that we've been talking about here is strategy. What is strategy? And the importance of strategy is this. The importance of strategy is - and I have a quote - I have quotes from Peter Drucker, too. But the importance of strategy is this. Strategy is, everybody's excited about the how question. And it's an important question. But the tougher question is the blank slate question. The strategy question is why, what, and where. Where are we going to go, Coach? What's the plan, Coach? You can take the one you got, the one you inherited, the one you accepted, but a real strategy question is, do you do by land, do you do it by sea, do you take that objective or that objective first. Do you even fight the battle? And strategy comes from the Greek word 'stratçgos,' meaning general officer in the military sense. And it's the mind-set of the leader. And it's the art and science of leadership. Here's the problem that I see everybody facing now. And this has only gotten exacerbated - it's always been a little true, but as communications and transportation and all our forces make this - [unclear 6:08] global village, you even - no matter that you don't have a national business, that you're a local business; you are in a global framework, and consumers, clients, customers; are making global choices. When they go down and order a cup of coffee, do they buy it from Starbucks, or they go to Dunkin; Donuts? Do they go to a little greasy spoon? So global choice. Starbucks is a multiple-tentacled international operation, that's all focused on creating a product and service of world-class proportions, and yet, it's just a cup of coffee. And the way that our communications system, and out marketing systems and everything are coming together now, as a strategist and copywriter, and market myself, you find more and more that you really don't have lots of choice about becoming a global competitor. Your competition, no matter what business you're in, is - I have some preframing questions here. To make yourself globally competitive; because
even though you may have the dog-on-a-chain, local business, everybody’s going to come in at you. The big guys are targeting you, the people with marketing leverage, the people who can spend a million dollars on advertising because they're spreading it over a thousand outlets. And you have to compete with them. So just - here's a little strategic [unclear 7:45]; it's in your workbooks. I don't know what the page is, but it's in there now. You don't have to write it down, you don't have to write this stuff down; this is all printed out for you. But think about it. Start with your own goals. I know I heard a couple of people at the mike before we broke for dinner, talking about how they had lost the passion in their business. And boy, if you don't have - if you lost that, you're just marking time until you're out, because things are so competitive now; I don't have to tell you that. Things are so competitive now, and there's so much talent and so much ability to communicate around, you really have to want to win. You have to really love what you're doing and put in more that you could ever really put in rationally . So ask yourself these questions about, are you having fun anymore? What could you add or eliminate to enjoy life more. Because I've noticed that a lot companies I've worked with; particularly I worked with the Chief Executives, or the owners, that are principals. The thing that's holding them back is, they really don't want to be in their business anymore. They've lost interest. They want to simply it and get out of it, and they have to get themselves aligned with what they want to do so they have some juice. So you have to ask all these framing questions of yourself. Are you running your business or is it running you? What would happen to your business if you took a month vacation? That's without cell phones, communications, faxes; just took off. I call it the Peterman Drill. And as the business got beyond your point of enjoyment? These are all questions you really should answer before you really decide on a business plan. One of the things - if you have a business plan that you find yourself not being able to execute, because it just doesn't happen, you have to ask yourself, is it possible that your business plan brings you personally in a direction you don't want to go to? And if you're the driving force in that business, it isn’t going to happen. If that business plan involves having you spending more time in your business and you want to spend less time in your business, you won't execute. You'll be stopped. And you may not know it, and you may not understand why you can't bring yourself to it. And then you have to look at the nature of your business. do you have a business that's a hobby, a cause, a high-wire act or an art form? I’ve seen all the above; they can all
be successful, but you have to understand where you are. Some of them are more successful than others. Here’s another fact of life now. Strategic planning. Strategic planning is almost debt. You can make plans, and you should make plans, but the notion that you're going to execute that plan three years out, or five years out the way you wrote it; is pretty unlikely .You may get certain financial goals, but five years ago - what was that? 1997? What was missing from the mix in '97, or just coming on the horizon? Internet. I mean, it was there, but it was one of those, you know, funny guys running around doing it, and there were all these people trading funny stocks and all that sort of stuff. And now, the stocks have disappeared...(laughter)...but the Internet's still here. And the Internet's become an essential part of many people's lives; in fact, the ones you can afford to reach these days… (Audio missing) ...or, if there's a division between the quick and the dead, is probably the Internet. I mean, that's a fact of life. So what can you do with strategy in the instant age? You can plan ahead, but don't expect to execute your plan as written. Revise it every six months, if you have to. Maybe even every quarter, take a look at it. You may have to change. A book I'd recommend very much for your thinking, is a book called 'The Innovator's Dilemma,' by Clayton Christensen. It's not his most recent book but it's their core book. He's a board member of Cisco, a Harvard Business School professor; very insightful guy. If you've ever heard anybody use the term 'disruptive technology,' - he basically says, 'In every big organization, as technology progresses, the seeds of a major enterprise's destruction are contained in its successful patterns.' Because it will tend to go against the new, ridiculous technology, like the Internet was seven or eight years ago, and not be able to incorporate it into its DNA. And it will knock it out of the box. I have a - I've got to find the slide, it may not be in this - but there’s a very interesting - excuse me for doing this. No, not here. I just wanted to touch on some of these things, because I want you to think about them when you're making your business plans. Because you can really align yourself personally with your business goals; you would be successful, because all your energy will be there. Now, what is - this isn't very nice to say - what's the important - to do the right thing, that you do the thing right? What is that? Well, if you execute a strategy that has success built in, that has - that's doing the things right....let's say you start with a hundred points'
potential. If you have a strategy that can deliver 80 points, and you only execute at 50%, you've got 40 points. If you have a strategy that starts, they'll be able to deliver 50 points, and you execute at 80%, what have you got? At 80%,which is twice as effective on the execution side, you've got 40 points. You just - the right strategy primes you for success. You can be less effective an executor, but if you pick the right strategy, the strategy has robustness, and will carry you along. And just that alone is why strategy is so important. Now, there's a very interesting business development that's happened between the prevailing business model prior to, probably 1985; was - or maybe into 1990, but '85 is probably a good year. And it maybe even started earlier; was that the prevailing Harvard Business School thinking planted to down to the last drop, was dominant in American business. But somewhere along the line, this disruptive technology that Christensen writes about - Silicon Valle; the silicon chip changed that, and strategy for Silicon Valley has always been, get it out there and fix it later. We've all sworn at it, but we buy the products anyway, because we need them. We want them. And I think in my other set of slides, which I'll switch to, I have the relative value of a dollar of sales in the market capitalization of GM versus Microsoft. A dollar of sales in the marketplace; and this is held true over the last five years, even with the ups and downs in the market; a dollar of sales in Microsoft is worth 48 times in the market place, what a dollar of sales at GM is worth. Even though GM arguably has more assets, more business; it's ten times the size in terms of dollar volume. And employees, and products; it doesn’t matter. The market cap is 48 times different on that dollar of sales. And what's that? Intellectual property supremacy? Having a niche that's a probability for profits? Your guess is as good as mine, but it seems to be the truth. This is very important on strategic planning. Jay's mentioned, and he's going to do more. Ever heard of the Pareto principle. Pareto principle comes from an Italian sociologist in the 19th century, named Vilfredo Pareto; it's also called the law of the vital few. It says that in any list of activities, objects, randomly derived, 80% of the value of that list, will reside in 20% of the items. And it seems to be a phenomenal - this is a phenomenal logical, it's just like, it just happens that way. It's one of those rules that seems to bear out. And it's also conversely true; you flip, for instance if you have a customer list, it's also true that 80% of your problems will be with 20% of your customers. And one of your tasks as a marketer, and as a strategist is to go for those vital few as part of your business. Because you can't afford to service all
the rest. That's also the fundamental rule in marketing affinity. But with Pareto's rule on a strategy, you do the activity that takes - which activity take the most work and produces the least return and the least satisfaction; you do less of it, right? Rather than proving you can be right. And what activity takes the least work and produces the highest return and the highest satisfaction; you do more of it. And as I said, you ask these strategic questions: what, where, why? If you start with how, you don't think about where you're going. Because you've already picked the course. You've got to take you and whoever thinks strategically with you, to figure out where you're going. So these are all this is just one question on this presentation I want to leave you with. What would you want to invest - would you invest in your business if it weren’t yours? In this presentation, in the workbook, I have some other questions I want you to ask yourself. But that's not the whole point of this presentation, I'm going to get to the ad clinic, and...let's see here. Why won't this...? Now, I started doing these seminars with Jay, as some of you who I’ve met in previous incarnations thought. I started doing this when I was on the - I was the back-end guy at - we created the back-end at Phil's Publishing; an enormous newsletter publisher that at one time had a million and a half subscribers, in financial and investment. I'll pay people, and somebody called me up, and I had created all these things, and I, to some extent, modelled some crazy deals I had seen in some other newsletters, and a mutual - what turned out to be a mutual friend called me up and said, 'You're the new Jay Abraham.' I said, 'Who's the old Jay Abraham?' (Laughter) And I was on the East Coast, and so one thing lead to another and he arranged a meeting, and we arranged to do a couple of deals, and we've been friends ever since. I've been on my own since '89, as consultant and marketer. But in that period of time, we did some of the first seminars together, and I filled in when somebody else dropped out, and I guess I'm cheap, at least for Jay. No, I'm still doing it. And one of the things that I love doing is this ad clinic, but I do want to get to some of these principles. They're all in here, it's late, I don't want to keep you and run this through the way - because this presentation right here could be a full day. I've done it in a day, two days; getting detailed. But I want you to just get a sense of it tonight. Here are some levers that you can pull. We're talking about leverage. Leverage is using a small indicator, a small move, to move big things, to make big things happen. And that's what we're working for; a little in, a lot
out. And you know the old saying people used to have on their military patches, 'Lead, follow, or get out of the way.' I don't think that's true anymore. I mean, I 've seen too many businesses where if you’re not the niche winner, you're just not going to make it. I don't know if that's true in your business, but it's best to perceive if that's true. Because there may be no second. I can't through every business here and analyze it as I'd like, but I think now it's lead, or get out of the way. Just because you can find another niche. Because there may be no room for a second, of any vitality, unless you're coming on an established business that has gotten big and stayed big. Here are five things, five points, that if you master these concepts, you will be a marketing genius. Because very few business people have all these down, and just understand them; how to manipulate them. Unique Selling Proposition. Unique Selling Proposition is really, answers the question, 'Why should I put your product, service, or offering at the top of my list?' and act there. Why should I pick you to be number one? Because for someone to buy your product or service, to pick you, you have to be at the top of a list. The list may be derived of lots of little lists; you may have lots of different characteristics, but that moment of execution; they've had to pick you, the balance of features and benefits; had to pick you to be number one. Because number two didn't get picked, didn’t' get bought. So understanding USP in this position power is very important. Then we talked a little bit about testing, not about the mechanics of testing, but the psychology of testing; and a lot of what I'm saying comes out of my direct marketing background. And direct marketing has become more and more influential in business, now. And has affected the general advertising field tremendously. General advertising is way, way off in the last couple of years, and it's not just because of the dot bomb; there aren’t' any dot coms to buy crazy ads at the Super Bowl; it’s not just because of that. It's because that and 9/11 created an atmosphere where people said, 'Why were we spending all that money?' And 'What did we get for it?' And they said, 'We didn't do it last year...didn’t really hurt that much.' And they are looking for results. So testing, and creative leverage; testing gives you the opportunity to look for results. Everything I'm talking about here will be in a results oriented frame. There is such thing as brand building if you're Kellogg’s or Proctor and Gamble, or Colgate. But ultimately, that's bottom-line oriented too, if you know people or brand managers. They just have enough money that they can afford to do things almost any smaller business can't afford to do. You can't do what they do.
Just like it's very hard to play tennis the way the pros paly; they're low percentage shots unless you're a high level pro. You should probably find some other strategies. List and media affinity comes back to that birds of a feather flock together. To go - when you think in direct marketing terms of a market place; if you’re not marketing oriented, you look at a marketplace, you'll say - all the small business people, 'Well, I'll just find a list, I'll get one of those things for $20 you can buy on disc where you get 10 million small businesses, and I'll just take a random assortment around my business.' Well, no one can truly explain this, but you'd be much better off by a factor of 10 or 20, often, to buy a list of magazine buyers of -if you're going for that small business - of Inc., or Entrepreneur, or The Economist; and that list will respond to a direct marketing offer at a factor of 5, 10, even 20 times what a so-called compiled list would do. The affinities is - affinities are things like clusters of behaviours, which may not be linearly connected, but they're connected in behaviour. And you usually find - you can just find some kind of link. for instance, affluent - most of us can see it quite clearly in an affluent market. When you pick up a platinum card magazine called Departures, even though it’s no direct connection, they have ads from all the world-wide antique dealers in there. Because they see an affinity between wealth and people collecting high end antiques, or high-end golf clubs. And it's that kind of natural connection, and it goes up and down the socio-economical spectrum. That you try to find clusters of behaviour; one thing indicates something else. It can be a real science. For you , it might be just knowing that if you're in a local business, you might just know that…(audio missing) All your customers come from north of a particular geographic boundary. You just take a look; you try and look for these things, these patterns, that you can take advantage of, or you can find that 80/20 rule. risk reversal is another major lever for you to pull on. It's - despite the fact that - and Jay is probably the master of risk reversal of all time. Because Jay - risk reversal lowers that threshold of commitment. I’ve had any number of people tell me at these gatherings, at whatever price Jay puts on them, 'If I know I can walk out at some point, what's my risk?' And it's that feeling of being able to interact and find value that risk-reversal does; on a gut level, you know what it is. But it's testable. It's one of those things you can see where adding an explicit warranty, guarantee, risk reversal, makes a difference. And something where people are very reluctant to move; Jay pioneered the better than risk free guarantee, where you get a payoff just for engaging in the exploratory activity. So even if you terminate the transaction, you
walk away better, you walk away with more that you had before, even though you don't complete the transaction. For instance, anybody who signed up as a lead person on this affinity list, got tremendous materials for [unclear 1:42] the program, certainly, but they walked away with more than they had to start with. It's a better than risk free guarantee. You have to look at your numbers and your conditions, and what you can offer and what you can't. It's not as straight as everybody should give the same deal, but risk reversal is a great motivator for overcoming the threshold of behaviour when there's either suspicion, lack of knowledge, fear, bad previous experiences; there are lots of things we have to deal with. And then the last lever that I think is super important and it can make you an instant marketing genius without writing a word of copy is the power of lifetime value. Lifetime value is a concept that says - and goes into your capitalization and what you think your risks are. Lifetime value is the profits and the stream of earning that a customer will generate over their statistical life. Now, you don't look and say, 'Well this customer...' your average customer delivers $500 in the first sale. It's a $500 sale of which the 20% - well let's say a 30% margin. And that's $150 business. But if you know they have an 80% chance of doing it over the next 24 months, you have the same - you have an 80% chance of getting that $500 again. You have $400 with that 30% margin; you have an expected $120 added to the lifetime value, and you can do that out as far as you can statistically project. And that will give you a sense of how much that customer is worth coming in the door. That's often the advantage of a big business over a small business. A big business can look and say, 'We can afford it, we can afford to get that customer at that price, because we know if we retain them over a period of time, we can afford holding them at a particular cost until that pays off.' Insurance works that way, a lot of businesses, that only big businesses seem to be able to afford to go into. But it's a real competitive advantage, if you understand your own dynamics. I talked about winner take all. Global production plus global communications, global distributing. It means global choice and global contribution. And this is what - this session, what Jay's all about, what I'm all about - why I concentrate on marketing. Because the most costly thing in business is to acquire a new customer. And anything you can do to have that customer deliver more is the marketing effort. And these days - and I don't think it used to be true - these days, big business has learned, and somewhat - to some extent from watching Jay, I can tell you, big business
has learned to get its act together, and some of the big businesses are very strong competitors. And if you think they're not, look at Wal-Mart. Wal-Mart uses it’s buying power, it uses it purchasing power, which drives - anybody who's done business with Wal-Mart - anybody does business with Wal-Mart? I don't mean buying from them; you selling to? They drive the most merciless bargains you've ever heard. They know exactly down to the mill, exactly how much his vendor makes from the product. And they'll drive them down to that mill, because they have a proposal right from - they have a proposal from the competition; they know where they can go, and they use that as competitive advantage, and they have a machine. So if you're in business against them, you have to offer something they don't offer. And then we have the Internet. And the Internet - what do you get out of the Internet? I heard information. Information gives you what? Power. I mean, you can go - You can do a price search even with something as simple as my assignment, and you can come up with 30 or 40 choices on a commodity product, and at 1% difference on price on Internet offers, can mean as much as 50% of sales. Choices go from 1% difference in price, because people - these are commoditized transactions, people say, 'Why won't I go with the lowest price?' So it's brutal, and it's driving people's margins down, because you frankly, as a consumer or as a purchaser in a business, you have more information, and everybody’s chunk is getting shaved a little bit. So you can benefit from that as a buyer, you can communicate better as a seller, but - you've probably heard of the term disintermediation, which is eliminating the middle men, and most of us are middle men of one kind or another. So it cuts deep. There’s another reason; why concentrate on marketing? Because marketing is the most highly leveraged - and Jay went through this morning a little bit - most highly leveraged activity you can have. I mean, if you look at - this is just experiential - cost-cutting. Cost-cutting in an ongoing business, can actually cost you money, for a good period of time. If you have to lay employees off with some kind of tenure; if you have to close down lines of businesses…
Jay Abraham Mastermind Marketing 10 …that can actually cost you money in the short run. And even at best, you might be cutting capacity and ability to deliver. So what can you get out of it? Maybe 20%? Productivity gains, doing things a little better; you might get 20% out of it. I suppose in the extreme case, you might get 50%. As I
said, these are all in your notes, if you look in. Technology and automation; well, you can get some kick, particularly as we're in the most productive society today. You can get kicked maybe - even if you get 100% kick on technology. You don't have to, technology - one of the biggest unassumed business risk is people installing new software. Their business might never survive. So technology is not free, but marketing, as Jay was going through just before we broke; your chance of leveraging the same marketing money and getting something more out of it by using some of the direct response disciplines we’re talking about, because even though they’ve extended into cyberspace, the disciplines are still the same. We went through a period of time, when Jay, fortunately for himself, decided to take some time away; where the logic of sales and marketing seemed to be turned on its head, and there was a new paradigm. And the world seemed to be different. But it didn't turn out that way, and the same paradigm is governing; two and two still have to add up to four. There is no such thing as customers how are different. I mean, there are still other people at the end of the computer, and they still have their human motives. So marketing and marketing economics are not being held up by elusory venture capital anymore, which is what happened. And there's still a lot of that to hit the fan. But, right now, you still have the option of going back and building a business on marketing principles, and getting tremendous affinities out of your marketing money, by testing, using creative leverages, using risk reversal, and spending the same amount of money redirecting it, and getting 50-5000% more return. Just look at what they did here, which is really remarkable. The thousand percent lift in conversion, not in lead generation, but in conversion they got into this program, by using email properly. By using the unique advantages of email, and it changes the skew a little bit. A lot of this crowd is probably on average, five years younger than an average Jay crowd, I would say that over the last seven years. Maybe even a little more. So your wants and needs are going to be slightly different, which is why we have all the rock and roll. (Laughter) It's leverage, leverage, leverage, because it's money for nothing. It's returns for nothing, to use the old brothers in arms quote. And if you know the rest of it, it's up to you. Fixed costs - using fixed cost, fixed budgets, and getting leveraged returns. And this needs a little clarification. In Jay Abraham's terms, what is marketing? Marketing is doing the simplest, most powerful thing you can do to get to where you want to go.
There's no limits, there are no rules around that, there's no box around that. If doing your best marketing effort is to make one phone call to the right buyer, and that's it, that's your marketing effort. You don't have to gear up a whole campaign. Marketing is finding the most reliable path to success, probably through communication. It's becoming the business you and your investors want your business to be. This is something that we always fight, which is when I call them mousetrap methods. The most prevalent method in business today, is - and has been forever in America - is that if you build the better mousetrap, what happens? The world would beat a path to your door. Well, I don't think that's true. We all know inventors with garages full of mousetraps, because they forgot to ask if in fact anybody wanted a better mouse-trap. GE apparently made a better mouse-trap at one time. And it had to be electric, because that's what GE does. (Laughter) And a friend of mine, who was a strategic planner with GE told me the story. And they made this better mouse-trap and it really went (makes electrical sounding noise). And essentially electrocuted the mouse. (Laughter) And all he had to do was take it and shake the mouse out into the trash, and start over again. But the problem was, what do most people do with mouse-traps? They get their husband or their boyfriend, and then the boyfriend takes the broom and the dustpan and sweeps it into the dustpan and throws the whole thing into the trash, right? They don't take the mouse-trap apart and reuse it; it's only 25 cents. Nobody really wanted an electrocution mode...(laughter)...so back to the drawing board on that one. So make sure you - your customers - but you need to ask, you can't just assume. You have to ask your customers creatively. If you're in a new business, you can't just go out and ask your customers if they would like something. First of all, if you're going to ask them anything, ask them and attach a price to it. And often the case is research will only show you a general indication, and if you can't - the best test of whether something will tell is to make a prototype; or even not; and make a - what they call a dry test, and see if you can sell it in advance to producing it. Because people are usually not picking up the product and selling it, and in some cases you might have to. But see if people will actually pay for your product before you really sign on and sell the family farm to finance it. The DM revolution, as I said, is affecting advertising tremendously. Companies are really all of a sudden under this global competition and thinner margins, and everything else, had to look for performance. If anybody remembers that great start of Ghostbusters, when the Ghostbusters guys are up and they're about to be
thrown out of the labs at Columbia, and they're having to do something to get a job. And they're saying, 'What are we going to do?' And somebody says, 'Maybe we can work in the private sector.' And Bill Murray says, 'Oh no,' he says, 'We don't want to work in the private sector. They want results.' (Laughter) It's very funny; if you haven't seen it for a while. But direct marketing, direct response, as a discipline, brought a mind-set to advertising, which has been a very interesting process of uncontrolled and unmonitored creativity, for the most part. And rule number one in direct response, for better or for worse, is get results. Rule number two is see rule number one. And it's taken that mindset and transplanted it into cultures that didn't have that before. It's been a crunching adjustment for a lot of advertising departments, and they're not entirely happy with it. But it's a new reality and as an independent business of less than global proportions, as most of you are here, you're way ahead of the curve. You really have to know your own internals, too. You have to know what makes your company tick and - I'm talking about focus. What makes your particular company - what's your strong suit? What can you play to? What can you do well. Should you go into every venture that’s possible? No, you should do ones that - use your assets, your strategic set - best. So you have to know what those are. I'm going to give you another million dollar advice for 25 bucks. There’s a great book by Michael Robert, called 'Strategy, Pure and Simple.' This is a guy who does top-level mega corporate re-positioning. Wonderful book about thinking about your strategic heartbeat in your business. I won't take the time to even tell some of his - USP; what can your USP be? It can be as simple as price or discount; it's the most elementary. That's especially on a commoditized product, but if you have the best price, and you have equivalent feature set, that is a unique selling proposition. it's one that's easily undermined, and one that's - it's susceptible to attack by a well-capitalized competitor, but it's not one to ignore. You could point to Microsoft undermining all kinds of markets; proven in court, incidentally. [unclear 10:12], I’m not making any judgements, but they come in a devastate a market by giving away a product free. Or bundled with another product. And sooner or later they charge for it, one way or another, but if you - it's very hard to compete against that. So price alone is a difficult one to compete on. Now, value is a whole different world. If you've got price value relationship, now - what's the best-selling luxury car in the county now?
It's Lexus, isn't it? The Japanese came in, looked at this market, and then the Japanese use Martian logic when they come into a market. They don't pretend to understand America. But they have to go survey the markets, and they find out what people want. And they give them to them at a price - they give them exactly what they want at a price that's competitive. Usually they try to give them a 20% price advantage. Pretty hard combination to beat. Takes a lot of work. so all these things can be USP's, and you will have a unique amalgam of style and combinations of things, but these are your magic buttons to think about; your discount, value, design, uniqueness, convenience, service level, performance, reliability. I mean, way back when IBM was IBM, do you know why they had such a lock of the mainframe market? Because; service. Their service was the ultimate in the business. they kept their stuff running, and they bundled their service. They were ultimately forced by the FTC to unbundle service and product. They had service and product bundled in, and until they were forced to break them apart, and price them differentially, they had an absolute lock, because their service, their hardware - and it was their hardware - I mean, we're all focusing on getting a computer now for $700, that could have run the Space Program. (Laughter) And yet, what's the first thing that happens when you get the blue screen of death? Who do you talk to? I mean, the reason Dell has been able to have it's wonderful business model is that they've taken some of these principles and they've rolled both service and price into a package. Forbes, I believe it was, did a thing a year and half or so ago, on seeing who had got religion, who had got the direct marketing model. And they sent out an order for 10 computers and some small network stuff, to Dell, Gateway, at the time; HP, Compaq and IBM. I think it was, they looked at what they had after two months. Well, Dell had delivered its order in seven days, complete, and had come and installed it. Gateway had done - actually delivered in five but they had a couple of problems; they didn't get it installed til seven. And this was like, 35 or 60 days later. Compaq and HP were still corresponding, and IBM hadn't responded to the request. (Laughter) And so, you know, you have to execute your business model well. So there's options there for your USP. When you think about USP; and we'll try to work on it a little bit tonight; I'd like to say you are developing a 'you' attitude. And rather than just unique selling proposition for a particular product, you have to see if you can nest your unique selling proposition from that product, inside your company's strategic
strengths. And see - you come out of your strongest, what's best for your company with the set of assets and talents, and skills you have, and nest your selling proposition in that. It's a springboard for all your marketing. That's fairly abstract, but we'll try to look at some. A USP doesn't have to be something an ad agency would give you an award for; an ad council will give you an award for. It just has to be something that's most meaningful and pre-emptively placing you at the top of the list for that moment of purchase. Yes, FedEx has built an empire on this concept, whether or not they even say it anymore. But if you have - and this should be on the same line - if you have - if you're out in the boonies and you see a sign on a diner that says, 'Eat at Joes, open all night,' it's - you know, you look around and it's just dark windows; that's a pretty powerful USP. Because if you want a coffee at that time of night, that's your choice. And they communicated it at the right place and at the right time. Or, as you're leaving Las Vegas, or coming into Las Vegas, you see those signs that says 'Cash for your car now.' Pretty compelling composition; at the right time, in the right place. (Laughter) Doesn't have to be - but it's not; and this is where it gets hard, because we have to get the focus off us, into - it's not about you , it's about your customers, your clients; what they want. Not the cleverest technical achievement, not how long you've been in business. Although those can be supportive things, but - not that you have a new conveyer system, but their product will arrive faster, cleaning, with no defects. They don't care about your conveyer system. They care about what they're going to get. They might want to know about your conveyer system if in fact they're concerned about handling, but they want to know - the first thing they want to know is the product's going to arrive in better shape. You see a lot of companies and people are advising their high profits. Generally speaking, that's not appealing to me as a consumer. I want value added to me. I assume you're trying to make money, but don't brag in my face. So that's a little steer on USP. This is that wonderful Peter Drucker - 'all into central functions of business or marketing innovation, all the rest are costs.' Because the purpose is to create a customer. And this whole question of USP, think of it as carbon, your carbon. Your company’s carbon; your product VR carbon, your carbon devices; and a carbon can either be a coal, at hundreds of dollars a ton, or it can be a diamond, at thousands of dollars a carat. It's all coal. It's how you handle it. So, one's a commodity, and the other can be rare and unique. Somewhere on the scale, you want to move up the scale; and you
make it different, make it unique, make it invaluable, make it impassionedly desirable. Which is why diamonds are sold not on - the gemmological institute - when DeBeers, and the diamond institute does the campaign, they don't sell it - how do they sell it? Romance. If you're watching the guilt...(laughter)..but not on the cut, clarity, carat, weight, and colour. They don't sell the four C's, the three C's anymore. Now, this is an interesting list. Positioning. Remember when I said you had to be number one at the time of attack? I first put this list together 10 years ago, and I haven't changed it, but the only one that isn't number one still in its category - arguably two - is Target, which is still number two, and AT&T, because who knows what AT&T does these days (laughter). But it's a persistent list. To get to top of mind - people just don't have that much - how many hooks in their mind for number one. They have choice. We all want to make the choice for life. We're forced by circumstance to move off it, but we all want to just be reflexively reaching for that, so if something gets to that top choice position, it takes something to dislodge it. My friends in the tech universe say, 'You've got to have a five X or a ten X benefit factor to move technology out, and have a new technology moving into its spot.' 500% to 1000% performance advantage if you really want to bring a product into a market with a reasonable chance of success. And even then it's only because there's so much, even in the tech market, there's so much inertia. We're getting into the - please don't say everybody is your market. Everybody isn't your market. If you try to reach everybody, you will go broke before you reach anybody. And we'll get into that deeper. These are niches. They may be fantasy, they may be realistic. Microsoft went after the global desktop, the global sliver. they went after the desktop, the PC desktop. That's what they went after. Not mainframes, not mini's. They went after the PC desktop and want to command it. And then several airlines vie for the business traveller's airline. But it fantasy; tax advisors who work directly with the IRS; as long as you thought they were on their side, you'd be happy with that, wouldn't you. H&R Black is using that. And a doctor who would come to you; now what a USP that would be. But that’s just fantasy. (Laughter) Marketing mind-sets: seeing opportunities where you saw obstacles. No failures, just tests. No failures, just tests. No matter what hard lessons you have, and sometimes they come easier than you might think. Now, here's copy writing. Copy writing is not about jus producing print ads or any kind of ad. Copy writing is salesmanship, in whatever multiplication
medium you find. It's not just - it's taking salesmanship, and taking it in a form where you can replicate it, to some extent, mechanically or technically, and deliver; for a fraction of the cost of a one-on-one relationship; to your targeted market. It is so - we familiarly call it copy writing, but it isn't just copy writing. It's salesmanship, and so it doesn’t really matter what - yes there are some expertise, knowing what formats and what things work better and worse. But the fundamental sales proposition is a psychological proposition; it has nothing to do with getting 800 in your English college boards. Good salesmen, first of all, are the best copy writers. Here' a couple of [unclear 22:07] from out things. Find out - follow your - if you can't sell it one-onone, then nobody can sell it one-on-one; you’re unlikely to be able to sell it in any other medium, unless you totally make it up. Which we know happens. So you want to find out why people buy, because copy writing and my goal here is not to turn you all into copy writers, but in many cases make you managers of copy writing, and know what principles where you can intervene, and whether you have a right to say anything about somebody's copy. If you can put yourself in the mind-set of your client or customer while you look at copy; whatever form it might be: TV, radio; if you can put yourself in the mind-set of - if you can understand your customer, then you have a right to manage that copy. Not somebody who happens to be good with words... (Audio missing) …something for their portfolio. Or for their friends down at the art institute, or for the copywriter's club where they're going to give each other awards. Because a lot of times, people putting this stuff together on a professional basis, have everything in mind but selling your product. And you have to be very careful, so even if you're not going to be your top copywriter, this is a function you need to manage. And although I certainly subscribe to Michael Gerber's observation; he wanted you to work on your business, not in your business; sometimes you really do need to work in your business, and if you let marketing get too remotely away from being your core function, it's very dangerous. There's lots of - one of the great marketers in the United Sates dies this last week. Anybody know who Roone Arledge was? He was the inventor of the modern ABC, Wide World of Sports, Monday night football, a whole panoply of other stuff; created industries out of making an experience out of these things; and became president of ABC because of it, because he was a great marketer. But, remember, if you can't really sell it in person, you can't sell it in print or any other medium. And you need to tap into feelings. People analyze with their thoughts, but they act with their feelings, and this is true in business-to-business as well
as consumer. And that we’re all people and we respond to our feelings. Our feelings are actors; analysis is not an actor. And its benefits, not features; and wants not needs. This is a great phrase of sometime crazy and wonderful copywriter named Gary Halbert, that Jay mentioned earlier. Picture with pleasure. That's your goal when you're putting copy together. Here a couple of other little rules. Don't be a comedian, unless you're David Letterman. Take the purchase seriously. And there's an old document; it isn’t on here, but it still seems to be true, and I keep hearing rumours of its death, but it doesn’t seem to be true in practice; which is the more you tell, the more you sell, in direct response. If you have a compelling message, you need to tell people about what you're doing. Now, there’s a lot of detail, but your challenge is - there are millions, literally millions of messages; tens of thousands people get every day. I think the psychologists say we're screening out 15,000 message a day. Screening through them, dismissing them, blocking them out. And you've got to get somehow through that, to get heard. I mean, just think about the simple act of sorting your mail, or your email with your finger on the key and the (makes whooshing noise)...gone. right? How long does that take? Virtually not at all. So somewhere along the line you have to catch that one that isn't blue screened out of there. How do you do that? Well, in email, you've got two things that are prime determinants to be keepers. What are they? What's the first thing that some research has shown that is the prime determinant of keeper in email? Sender. From line. Not necessarily the subject line, although there's a lot of psychology in the subject line, but that's where the affinity comes in. If you have a trusted, positive relationship, that from line - this is true with every other medium, but we're all interested in email; including me, and it's certainly an unbelievably powerful device, particularly when you have a sound business model to start with. But, just to think about how quick you evaluation process takes place, just look at your watch. Right now. Starting now. That was five seconds. How many decisions could you have made in five seconds? Several. You could have dismissed..(makes noise)..yeah, you could have - emails, things in your mail, you could have gone (makes clicking noise)...gone. Somebody’s -all year work on a promo is down the drain, because you didn't catch them. So it's brutal out there, and so you have to answer, what's in it for me? Do I know you? And the A-pile or the circular file; that's your fate. Now, there's some fundamental principles but I want to do something, just - I want to show you - here's a breakthrough of marketing toolkit I put
together for you. I talked about some of these things already, how you put stuff together, the strategy questions; but here's a fundamental priority list of what you want to put together, and the first thing is the audience… (audio missing) It's in the workbook, folks. But if you want to write it down, I’m not going to discourage you. Of a thousand points; the starving crowd, you need find at least half to start with. What offer you make to the starving crowd is probably the other half. And everything else is kind of glass. You can't sell - if it's a starving crowd, you're probably not going to be selling them diet recipes. You've got to find what’s appropriate for the audience you're going to. Headlines are very important and make tremendous difference under the author, but if your offer -you can have a great headline, but if your fundamental offer of product and your delivery of benefit isn't matching your audience, it doesn't matter how good it is at getting attention. I could give you a million examples. Beautiful copy is very small, aesthetics, really, in response, is not that important; only if it doesn't clutter up, and just being clever. It's worth nothing and often counter-productive. I'll get back to some of this. These are some of the things in affinity; product, price, profile, medium, frequency, regency; I'll get back to that. A list is a market you can reach with communications technology, and I talked to you about response lists, compiled lists. Your own list should be - your own house list should be your best list. This is fundamental. How many people know what 'AIDA' means? Attention, interest, desire, action. If you have an ad that builds those things in, whatever form of communication; a motivating communication; we're calling it an ad. Now, one of the things about copywriting is there's a reason it's called copywriting. The copy part can be really important. Don't, just because - follow models that worked. You can adapt them for your own purposes. Jay's provided you a hundred greatest headlines; there's a whole ad book some of you have. But think about this. Attention, interest, desire, action. In the back of your workbook; and these are prep tools you get; in the back there's something called an ad template. I think it's one of the very back pieces in the workbook, in the big binder. And what you're going to do right now is use that ad template, or piece of paper, and you can just go for it. And what you're going to do is you're going to take the next 10 minutes, and you're going to write an ad, in whatever medium you like, and you're going to pick a product or service that you have or want to sell; and you're going to write an ad, okay? No pre-amble. Do as much, or as little as you can. And you're going to think
about all these components. USP, risk reversal, marketplace, headlining, format. You're going to think about all these things. But then you're going to sit down and see whether rubber meets the road. And then we'll see what floats to the top here, okay? Ten minutes? And you can cheat; you can ask other people's opinion, if you could… (audio missing) Okay, I’m going to ask you to wrap up a little bit here, and then you're going to spend five minutes or maybe I'll give you ten, I'll see how it goes. I want you to read your ads to your table mates, as far as the - what's a good workable group; six at a time? At these tables? Half a table to each other, or not more than - because you can't get down to the other end, so...half a table. Pick your half table, and if your table is a short table, you've got MIA's; you can pull down together a little bit. And you're going to read your ads to your table mates and get their comments, and then two from each table are going to share them with us. Okay? I'm not asking - a friend of mine said, 'Don't do that with your kids,' he said,' Don't say okay, sounds like you're asking them permission.' You say, 'Do you understand?' It’s all the way you say it, huh. (Audio missing) ...out of this. No, but, has anybody done that? Or did I totally misdirect everybody? Try to take what you're doing with the ad template; where you've framed out, and I'll give you another five minutes, and try to take that and put it together in a short but working ad on just a piece of paper. Let's assume you were doing, at minimum, a postcard, okay? Think of it as a postcard. It doesn't have to be a postcard, could be a 15 second radio spot. Could be a cable - just whatever. But do something that's readable. I’m sorry I misdirected you to the ad template. I gave you the ad template because I want you to think about it, not because I wanted you to do a full execution. The ad template will walk you through a real ad campaign and make you think about it. At least you know it's there, that's a positive. That's a fundamental principle of direct response, is tell people exactly what you want them to do, and make sure it's what you want them to do. Don't assume they understand. I gave you a misdirection and you did it. It's my fault, I apologize. I don't think it's all lost, but....we didn't get the product we wanted, because - take that five minutes and sketch something out. (Audio missing) ...time here, so I want to do something collective. But come on up. We'll forget that - we’ll disintermediate the process and forget the collaboration
at the tables. So come on up and join; we need a couple of the hand mikes to pass along. We can move the screen way back, so people can look at each other and scoff, and kind of talk to each other behind their hands, and all that stuff. Okay, we got a hand mike? Hand mike up here? Okay. Pressure, pressure, pressure. Okay, we're going to cut it off there, that's it. Okay, we just don't have time. We don't have time for all this anyway, but...I just need one or two. You can only talk one at a time anyway, isn't that right? Good. Okay. first mover's status goes to - tell who you are, where you're from and what business you're in. Man 1: Hi, my name's Peter Guberman, I’m from San Francisco, and the company I [unclear 1:16] a building company called Circle Lending. What Circle Lending does is... Mac: Can I...? Let me do this. Don't go into an elaborate explanation of what your company does if you're - after you read your ad, then if we think we need to know, we're going to ask you. But read your ad, because your ad has to go - you can't go with your ad, and say, 'You know, what I really meant to say was...' (Laughter) 'What I didn't mention here,' and 'Before you read that, you really should...' You can't do that, it's got to speak for itself, in this particular case. Man 1: Okay, I think I can preface this by saying this a direct mail ad that [unclear 2:01]... Mac: That's fine. Man 1: ...baby boomers, that sort of thing. So you get the ad, and... Mac: I'm sorry, there's a little discipline to the hand-held...the best thing to do is to put - excuse me. Put your thumb up and point the thumb at your mouth like that. Because that'll put the microphone globe pattern pick up pattern in the right relationship. Man 1: Have you ever had family or friends ask you for money? Almost all people lend money to family and friends. Most of the time a lack of recordkeeping leads to problems about [unclear 2:39], probate problems, as well as confusion and misunderstanding [unclear 2:44]. This is the problem that you probably have. Circle Lending provides a solution. If you would like to have successful loans without any issues that cause guilt and tensions in the relationships you have with those that are close to you, you need to use Circle Lending. If you're in this position, go to www.circlelending.com. Read about us and set up a loan.
Mac: Okay, give it a numerical score and just [unclear 3:15] it out. Scale of ten. (Audience shouts out numbers) So you think he has his basic building blocks there, hasn't he, in that ad? I mean, you have some questions, right? You have some questions that are sort of, 'What’s the pricing?' I mean, there may or may not be questions you want to put answer in the ad. 'What's the pricing, is there any risk reversal?' Is there any risk reversal? Man 1: No, I mean, Circle lending - I mean, you set up a loan... Audience Member: ...that's all the website; the whole idea's pretty obvious. [Unclear 3:44] and it's like, you know what? My son is asking for money, and the son of a gun doesn't pay you pack, and I can't - and his mother's giving me grief, how do I get out of the pickle? Www.... Mac: Yeah, so he may actually have gone - if what he's looking for is an interested lead, he may have gone one step too far. He may actually have to back off a little bit and tell a little less. Because what you really want is to go to your website, which is your second stage of your sell. Point the microphone at your mouth. I have a lav, so you can't have one. Man 1: What we found out is that we can send the [unclear 4:19] to our site. We have two customers, they're borrowers and lenders. WE get a borrower and they have to find the lender, and if they're a lender they have to find a borrower. Mac: But then they're not family and friends anymore? Man 1: Well no. Yeah, they are family and friends, but what I'm saying is you can either market to borrowers or you can market to lenders. Mac: Well, don't you have to market to both? Man 1: You market to one, and they find you. Mac: Where do you think you might find people in this position? What media would you have to go to? Where do you think you might get people in the - because it's a kind of 'everybody and nobody' market, isn't it? Man 1: Yes, it is an everybody and nobody market, and we don't have enough customers yet to really do a demographic profile. What we're doing is hitting people who are starting small businesses. That's where we're getting our customers right now, but we feel there’s a larger market if we hit people who are - net worth of one plus million. Because we figured anyone who's worth that much have to ask for loans from someone.
Mac: That's a good presumption. Man 1: And the close range on lenders is about 9 out of 10. the close range on borrowers is much less. Mac: Okay. Thanks. He has a lot of elements in that ad; he did pretty well with it. He could think about risk reversal; where I might go best, where he could look, but an interesting job. And has your basic pieces there. It isn't elegant writing, but it doesn’t need to be elegant writing, and that's the first thing about copy writing. Copy writing needs to be succinct and direct. Yes sir? [inaudible from audience 5:49] Right, I understand, but I’m not sure that we can get all your comments on record, but I'll try to repeat if it's important. If you have an extensive comment, we’ll have to get you to a mike, but I’m going to try and translate. Go ahead. So who you are... Man 2: My name is Leonard [inaudible 6:11] Mac: What business are you here for? Man 2: I market on the Internet, [inaudible 6:16] Mac: Successfully? Yeah, okay. Man 2: [inaudible 6:30] Mac: You've got to keep the mike up there, because it really can't pick up. Unfortunately if you're... Man 2: ...crises he was talking about this morning, we have ups and downs. [inaudible mumbling 6:43] ...zero market budget, and you can too. Dear friend. would you like to catapult your online sales, revenue; into six figures. Give me five minutes of your time and read this letter [unclear]. I went from broke and about to get evicted to now driving a Mercedes, by using a simple [inaudible]. So these are my [unclear] are extremely competitive, and if you want to sell successfully online, you must have these simple and powerful keys, methods and techniques to get your customers to give you their hard-earned money. [Inaudible 7:24] Mac: Okay that’s - don't apologize, it's a sign of weakness, just keep going. Man 2: You'll will learn everything you need to know to be successful online, [unclear 7:34]. Why you need at least ten domain names and not just one, where to get the best price for domain names, how to get highquality targeted traffic to your site in less than a [unclear] per visit. The problem with today's search engines and what we can do about them. What are the most powerful marketing techniques that saved my business
from [unclear]. And how you can free multiple streams of income from your website. Mac: Okay, these are all what you're going to learn from - and now you're going to make an offer? Man 2: Yes, sure. With my one-on-one consulting opportunity, show you step by step what you need to make your business a success. In fact, I guarantee your success. If you don't increase your sales by at least 50% after implementing my techniques, I will give you 100% of your money. For free consultation call... Mac: Okay, and what's your call to action? Man 2: Have them call me out here. Mac: Have them call you. So it's a lead gen, at this point? Man 2: This one is. If I was doing a book, I would say 'click here to buy right now'... Mac: so you've done this before, as the sailor said when he visited New Orleans. Man 2: Correct. (Laughter) Mac: You sound like it - see, he managed to get - in five minutes, he managed to get the essence of his message up, and he's got a lot of interest. He's got you at least with a call to action, he's walked out in a very workable form. And you're taking on a problem like this, just as Brian Tracey taught you quick goal setting. Do a quick take on your prospect, because you should be able to get the USP and the fundamental proposition clear, by just forcing it out. Don't sweat it, at that point. That's not the point, to sweat it. Man 2: Normally, this would be 15 pages by the time I'm finished, and we would have a few calls to action, more than just one, and lots... Mac: They may want to know your name a little clearer. Man 2: Nico P-I -C-O -P -R [unclear 9:36] Mac: And do you have an easy... Man 2: C-Y, and you can reach me at
[email protected], or just type in cashcows.com [unclear 9:4]
Mac: Okay, now the call to action was just a - was it a call me? Shouldn't you add a web - shouldn't you...? Man 2: Well, that’s the thing, because I’m speaking in front of people, I would just give out number if I was...and my website. I didn’t really have time to finish this. Mac: That's fine. No, that’s good... Man 2: On the web I would directly ask for the order or say, '$49.95 or $105,' or whatever it is. Then they click here, tell the description of the money back guarantee, and then it would take them to the next page where it would say, 'Yes, Nico, I would...' Mac: Thank you. Thank you very much for sharing that with us, and I 'm appreciate to see what you can do in five minutes. You can see, if you get to it, you can black it out in five minutes. This is part of the value of this experience. And I’m sure that other people will be talking to you afterwards; please snare him. Who's next at the mike? Man 2: One more thing; it took me four years to be able to write like this. Mac: I bet it did. Took you - I don't know how old you are but it took you as long as you're - doing this kind of thing is that you're using everything you know about your market, your human psychology, your product place, your customers, your inter-relations. It's not one thing. What you're striving for is in a sales prospect like this, is what's been called the greased shoot. Or grease slide. You want the prospect to go down the slide, not hitting any razor blades or bumps, or rust spots or anything that's going to slow them down. You want them to go from the top to the bottom, smoothly and slickly. Nothing stopping them, nothing going, 'Oh, no! Oh no.' So, the greased shoot. There weren't any stoppers there, were there? In his copy? Reading it out loud, not matter how experienced or how good the copywriter, reading it out loud to a group, you get the - when you hit the spike in the greased shoot, people go, 'Oh. Uh-huh,' and it's really visceral. It's interesting because people follow it along, you're seducing them with your approach. Go ahead. Woman 1: [inaudible 11:42]. It's just a little display type ad. It says clip, a little... Mac: And where would you run it? Woman 1: I would run it in a magazine.
Mac: What kind of magazine? There are only 15000 magazines. Where? Woman 1: [unclear 12:02] or Network marketing. Mac: Okay, you're going to run it in network marketing magazine. Woman 1: This is the -Lose up to ten pounds or ten inches in 10 days, guaranteed; in caps. [inaudible 12:16] sizes in only 10 days. 14 meals included and all three products for only $59.95. Free computerized body analysis; $65 value. To first 25 callers; 817-424-5204, www.firstfitness.net/healthyday. What do you have to lose? Mac: Except weight. (Laughter) Woman 1: Guaranteed. Mac: Does she have a risk reversal? Can she benefit from it, because it’s kind of a pig in a poke; you know what you're buying right. Woman 1: Money back guarantee. Mac: Pardon me? Woman 1: It's got a money back guarantee that guarantees... Mac: Oh, it does, sorry, that went by me. [inaudible 13:02 from audience member)k guarantee Woman 1: Sir, where it says lose up to ten pounds and ten inches in ten days, money back guarantee. [inaudible 13:13] For 30 days. You have 30 days. 30 day money back guarantee. Mac: Well, not until you make - you haven't made the price offer. I wouldn't make the terms guarantee until I had put the price in front somewhere; because it's going to be putting the cart before the horse. You want to get through the psychology of, 'Well, what does it cost?' I mean, if it costs a buck, I don't really care that much about the guarantee. If it costs a thousand, I care a lot more, in terms - so there's a lot of interaction on that. Now, why would you pick that medium? Why would you pick the you got a free ad? Woman 1: No, I'm a columnist in a magazine; I've been a columnist for over 8 years, so obviously I have a built in following there, so that would be... Mac: But, that you may have a following, but is there any reason to believe that there's a concentration of people who want weight control products for themselves, in the network marketing magazine?
Woman 1: Well, I think there is, simply because my husband and I have run a full page ad for about 10 years, and we've gotten a big response. Mac: Okay. That's a good answer. Audience Member: What's unique about your...[unclear 14:23] Woman 1: Body chemistry correction. We're the only ones that correct five major body chemistry things in ten days, it's not just... Mac: Body chemistry correction? Audience Member: You know what I would do is think and reduce your cost to 'per meal.' Mac: Reduce your cost per meal? Well, I don't know - you see, there's lots of different sales points here, and we could work any one of these ads, productively spend an hour - to look and see - does she have - however, I did hear a comment, 'Does she have a unique selling proposition?' Is it a clear one? Is it a benefit oriented one? No, it's a feature oriented one, right? What is it again? Woman 1: Correct your body chemistry while losing weight and sizes in only ten days? Mac: but what did you call the process? Woman 1: Body chemistry correction. Mac: Is that phrase used in your ad? Woman 1: Correct your body chemistry. Mac: No, but at least that's benefit orientation; she doesn't just lay out the process. And what's the headline? Woman 1: Lose up to ten pounds and ten inches in ten days, guaranteed. Mac: It's like back pain always works for chiropractors' induces the question of what are they looking at at the moment. So it isn't - given the state of the weight loss product market, you might say, 'If all else has failed,' - you might go to the person who's the multi-buyer, because they tend to have heard that pitch before, a million times. So you have to say, 'I acknowledge you've been down this road, but this one really works, really, really, hones, honest.' Okay, thank you. (Applause) I understand this is a difficult process and I appreciate everybody's bravery and Man 3: Did you just want me to start?
Mac: Yes, lets' start - just introduce yourself, and your company, so that people can talk to you later. Man 3: My name is Chidacash and I'm with Serenity Transformational Tours. Enter the mystery, a life transforming tour to Machu Picchu. Go beyond the normal travel experience. Journey into the past, saviour the high Andes of Peru. Enjoy time to linger in ancient Incan ruins. You will also have the opportunity, in this remarkable experience, of 17 to explore new dimensions of your own potential. Gain insights and learn new skills, which will empower your life when you return home. Spring or fall, limited number. Book early to ensure space. And all inclusive fare. Visit our website or phone - and I've got the number; 800-944-2655; for more information and a free booklet on getting the most from travelling in another culture. Remember to ask about our guarantee of satisfaction. Mac: Okay, what was the headline again? Man 3: Enter the mystery; a life transforming tour to Machu Picchu. Mac: I'm sorry, what was the first word? Sorry, I'm not getting it. Man 3: Enter. Mac: Oh, enter the mystery. Man 3: Enter the mystery. Mac: Well, that's one that might work, and you might have a couple of others. That's a particularly - your proposition is fairly straightforward, but the headline on that sort of ad, and the framing; illustrations around it would be critical in your response patter. Enter the mystery might be too transcendental, and you might test something - 'Visit ancient ruins and transform your soul,' or something, You might test some variations on that. Man 3: I've considered a transformation tour to Machu Pichu Mac: But that's... Man 3: The same thing. Mac: That's the same thing, and try and - the thing to test there would be some big concept, not little changes and phraseology, but some big conceptual differences. What else could he sell? (inaudible comment from audience member 18:24]
Mac: Transcend your reality. That's still along the same mystical lines. Now, does he want to sell - this is a positioning question. Is he more effective selling travel? Or internal experience change process? (Comments from audience) It does come back to his market, but that's the kind of thing you test. You try and find whether you're better off leading with the internal question, or the external question. Those are two things to start right away. The other is what are the triggers for people buying your services in your direct experience. What makes them...? Man 3: Well the image of Machu Picchu itself. And it's been quite amazing because with what we've put out already, we've had people who have just come for the walk, and then they discover more. And we've had people come there particularly for the spiritual side of it. Mac: Now, the question is, are you more - and this is a testable question. What if you did a headline that said, 'Bored?' or 'Bored with life?' I don't know if that would work better, but you see, that tests a different psychological button, and rather than assuming them want transformational psychological change, all you're doing in attracting them in a particular state that they find in themselves, and then providing a route out. That would be a testable thing. But thank you very much, and it's a real pleasure to hear your ad, and I wish good luck with your business, (Applause) Isn't this interesting? I mean, at this hour of the night, with really just a couple of minutes to block this stuff out, and people doing a pretty good job. Man 4: My name is Marvin Knighter, and I have a pharmacy in Vancouver. It's one of the products I'm marketing right now. Cut your drug costs by up to 50%. Prescription drugs in Canada and produced by the same high quality manufacturers. You can mail or fax your prescription to Mark's [unclear 20:24] Pharmacy in Vancouver for fast, convenient service, and have your prescription mailed by express post. For order form, call 1877747-6664, or check our website at www.rxcanadaforless.com. Mac: Who's your target customer? Man 4: Americans. (Laughter) Mac: No, no, no. Okay, what are most people's reaction to this? [inaudible comment from audience member 20:48] I couldn't care less, my insurance company pays for it, right? If your covered, if you’re covered. Man 4: 91 million people aren't covered.
Mac: I understand. But you say, 'Uninsured?' or 'Drug' - see, it's flag - you have to flag somebody's special need. If you tested 'Uninsured?' or 'Drug costs eating you alive?' or something that flags an immediate felt need; you'll get a stronger intake into the ad. Once you get into it, your proposition's pretty clear, given that you have to sell prescription pharmaceuticals, and there might be a question on - you might want to say, 'Customs, no problem. We ship internationally.' Something so that it says the mechanics won't weigh anybody down. But when you're headlining, you want to get at the deepest felt psychological need that covers the most people in your marketplace. Question? Audience Member: One thing I [unclear 21:48], you said express post, you don't call it... Mac: That's right, for America, it's not express post, it's either express mail, or overnight express or something like that. But we don't say express post. And that's an important nuance to pick up, although it would tend to confirm your Canadian origin. (Laughter) Thank you. (Applause) Man 5: My name is Greg Baroni, and this is an actual radio ad that aired. Mac: Okay, good. Man 5: And I won't tell you what I do, because hopefully the ad will do that. Will you expose criminals, or invite them into your business? Intellifacts intelligent background checks are the most accurate and affordable searches nationwide. Intellifacts offers personalized customer service that you can trust. Whether you hire one person or thousands`, call Intellifacts now. It's all up to you. 1800-208-9422. That's 1800-2089422. Intelligent hiring means knowing the facts. Intellifacts. Mac: Okay, that's pretty good, right? What's one thing that I heard wrong with it? Maybe it's just my ears but one thing I heard? Do you want to expose criminals? I don't frankly care about exposing them, all I want to do is avoid them. (Laughter) Exposing them sounds like it has liability for me, so I go, 'I don't know about that. I'm not in law enforcement, I'm just a business man.' So that one might chill - if they think they're getting involved with litigation and prosecution, and they have to be a witness and stuff, it's a killer. So that could be a spike in your shoe. So you want to test some variations on - what's the headline, if you just read it without that? Man 5: Intellifacts, intelligent background... Mac: No, no, what’s the headline now?
Man 5: Oh, it's 'will you expose criminals or invite them into your business?' Mac: Are you inviting criminals into your business? Just forget about exposing them. Isn't that a powerful enough proposition? (Audience says 'yes.') See, exposing them may be something you want to do, but chances are - this is where you have to get feedback from people who can give you - who have their antenna up, as Mark Victor and Brian - you have to feel that stuff through. Man 5: Initially we had it written to totally keep criminals away from your business. Mac: Yeah? Man 5: And the feedback we got is of somebody who's paid their debt back to society and wants a job, There ought be a job that's suited... Mac: Who did you - now, see, this is a really important point. There's feedback and there's feedback. There's feedback, which is chatter from people who aren't real prospects. And then there's the other kind of feedback, which is - what do we call that? Buyers, customers, clients. That's feedback. That's the feedback you should listen to. You can't satisfy everybody else's social engineering goals. You have to survive in a tough business, so there's a lot of feedback you'll get from people, which is totally extraneous, and you can say to them, 'Do you own a business? Do you have employees? Are you worried about security concerns?' 'No, I’m a social activist.' (Laughter) You go - you really have to pay attention to where people are coming from, because the only feedback that truly matters, other than moral, legal and ethical concerns, are from people who are customers, clients, and potential customers. [inaudible comment from audience member 25:32] Yeah. Man 5: That's the way it is. Absolutely. If we got it wrong - yeah. We did the background and we reported inaccurate information. Now, let me clarify that. That means inaccurate and doesn't match what the courts have, Mac: Not proper due diligence. Man 5: Now, if the court is inaccurate, then we have liability, which happens all the time, believe it or not. Mac: Are you bonded? Man 5: We have errors and omissions insurance.
Mac: How much? Man 5: One million. Mac: Okay, we're insured - our results are insured to one million dollars. See if you can do that... Man 5: They don't care about that. Mac: Oh, maybe they don't and maybe they do. Try it in an ad and see. I mean, the fact that you can get bonded, somebody else has taken a million dollar risk on you, and they may not be the closer in it - it may not be the first thing they look for, but it may be a pre-emptive positioning for picking you out over another service, that isn't bonded or doesn't say so. Thanks. Man 5: Okay, thanks. Mac: Thank, you, very good. (Applause) Man 6: alright, this is an ad in a trade magazine for entertainment industry. Headline: Do you want to work full time as an actor? SAG says only 10% of their members work full time. We teach you what they know in only a tenth of the time they took to learn it. Learn how to get the job, and learn... Mac: Say that - sorry, I didn't quite hear that one. That last line; I didn't quite hear it. Man 6: I didn't even stumble; I’ve got to do it again? Mac: No you didn't, it just didn't register. Man 6: Okay. We teach you what they know and a tenth of the time they took to learn it. Learn how to get the job and learn how to sell the job once you've gotten it. If, after our training, you don't feel you're a better actor than ever before, take back you're tuition; we don't want it. Call us tollfree; 888-705-8540 for a free consultation, and get the edge over all those other actors, now. Mac: Okay, what's wrong with this ad? Audience Member: Makes it sound like that happens [unclear 27:49] Mac: Yeah. Okay, the other is, 'we teach what they know.' The 'they' is kind of a floater, isn't it? I mean, you don't know whether SAG knows, and who says they know of anything about keeping their actors employed full time? Do they pretend to give people full time employment? SAG?
Man 6: No, it's just - SAG only - SAG says; it's like a state, it's a quote. SAG says only 10% of their actors work full time. Mac: Right. But who is it you’re saying you know better than? Or...? Man 6: Oh I see, yeah. I'm saying that the successful actors, yes; the 10% of successful actors who work full time. Mac: Oh, okay. Well, say successful actors again. That [unclear 28:32] got lost on me. That's a much more believable proposition, if you say Audience Member: Just say 'in a tenth of the time,' not - to learn. I don't care about that last little bit. Mac: Yeah, that's right. Yeah, in a tenth of the time you're wasting? Sort of stuff like that. Audience Member: I would do it as a time frame instead of a tenth of the time... Mac: Like what? Time frame like what? Audience Member: Six months, six weeks... Mac: Results guaranteed in some period of time? Well, you could try that. That's a testable proposition. That's the kind of stuff you test to see if it makes a difference. [Inaudible comment from audience member 29:07] Man 6: Probably not. We couldn’t' do it. I don't think anybody could. In fact, I know nobody can. Mac: Now, you might test a couple of variations of headlines, and another concept might be rather than them being worried about being employed full time, you could say, 'Actors and prospective actors. Does your family believe you'll never make it?' I mean, it's a little more - (Laughter) But that’s the kind of stuff you try to refine, get a little bit more gut-level concern in. Okay? Thanks. It's great. Man 6: Thank you. Mac: I’m going to move through fast, because I want to hear - most of these are pretty well constructed, but you just hear the way you can tune this. Do it in a mastermind - create your own little mastermind group that's sort of like this; people who are good business people, and have the sense for sales and have their eyes and ears open; and you get feedback on how to put your ads together. It's a collaborative effort, it’s not a singleton; you're not [unclear 30:24] up in his garret, writing a novel. This is an ad, it's a sales process. It's like salesmen getting together and
sharing their best stuff. The process is closer to that then it is to writing a novel. Man 7: Hi, my name is Joel Burrows, I'm a marketing consultant, based out of Temecula, California. This is an actual ad... Mac: What kind of consultant? Man 7: Marketing consultant. Mac: Marketing, okay. Man 7: This is an actual ad that ran for a client of mine. They advertise to the heating, ventilating, and air-conditioning market. And they sell a particular product that helps to lay out sheet metal patterns. Here it goes: Put a layout expert inside your computer. All the solutions you need in one integrated package. Fast, easy layout, without expensive plasma equipment. Easy, affordable estimating; seamlessly integrated. Now even the smallest shop can afford computerized pattern layout development, fabrication, estimating, and job costing. So easy, even beginners can do layout, so versatile you can customize fittings to virtually any dimension, with the click of the mouse. Metric or standard measurements allows for any metal thickness. Great teaching and learning tool. Exact point sized, optimized metal and cut waist. Designed to fab software Inc. Download your free trial at www.designtofab.com, and receive a free gift. 'I literally saved hundreds of hours and thousands of dollars immediately after using this software, and it is so easy to use, I was using it to make fittings in minutes.' Tippy Luda, shop attendant, Los Angeles. Mac: Okay, and if that testimonial could read just a little tuning, and 'It added $135 an hour, it pays for itself pretty fast.' You get a value proposition payoff on a quantitative basis. What was the line in there about 'put so-and-so in your computer?' Sounded like The Sopranos. (Laughter) Put a...? Man 7: Put a layout expert inside your computer. Mac: How about 'it's like having a layout expert inside your computer?' Because, really, you have this - (makes noises) (Laughter) No, but it's a good, straightforward ad. Did it work? Man 7: She mailed out 13,000.... Mac: To whom? Man 7: To the subscriber base for Snips Magazine, which is a prominent magazine in the H-back.
Mac: Controlled circulation, or paid circulation? Controlled in the publishing business; you have two different kinds of magazines. Controlled is, you start getting the magazine one day, and you don't know why. (Laughter) And six months later they send you a card saying, 'If you want to continue receiving this magazine, please sign this card and put your proper title, and your phone number, and whether or not you employ more than half a person.' And that's a controlled circ. Man 7: That's the control, and then what was the other one? Mac: Subscription. Man 7: Subscription. Mac: Subscription, paid subscription, is worth literally five to ten times in terms of affinity and advertising value, what a controlled circ publication... Man 7: That's a good question; I don't know the answer to that. Mac: But the 13,000 has to be weighed and - maybe everybody gets it and nobody reads it. Man 7: This is what happened. She sent out 13,000 of these the first week in November. 200 downloaded the free trial... Mac: That's good. Man 7:Nobody's purchased it. Mac: There's a flaw in her second stage then. Either, A; what's the first thing’s most likely? The product doesn't work, right? Man 7: No, it works great. Mac: Or else, the installation process is a bear, scary, ate something on your computer...? Audience Member: They downloaded it? There's no auto-responder back to follow up? Man 7: Oh yeah. She's got an auto-responder, an email follow-up, a letter follow-up... Mac: Is it an expiration - is it a crippled or timed download? Man 7: It's a 30 day trial. Mac: Maybe you want to make it a shorter trial from point of download; it blows up in a shorter period of time.
Man 7: Okay. Mac: what's the price point? Man 7: She's got a few price points; $1000, $2000, $3000,... Mac: I don't know if you can sell a thousand dollar program through download. By itself. It's too much. I think if there's just a day - maybe you can demonstrate it, but it would seem that a thousand dollar program is pretty pricy, as stuff goes now. And that's just maybe too high a price point, to be selling through that methodology. Needs, more packaging, she should investigate price point, first of all. See if there's a price hurdle there. A thousand bucks is pricy. Man 7: Yeah, well they actually had a lower price before... Mac: And? (Audio missing) Mac:...cost. Man 7: no, they had some reasons for doing it, but... Mac: But internal reasons. They weren’t market acceptance reasons or anything like that, they were... Man 7: Yeah, I think they had some internal reasons for doing that. Mac: Well, that's what happens with internal reasons. Thanks. It's very good, it's an interesting ad. Did you have a question on it, or is...? Man 7: There was the follow-up issues I think we need to work out. Mac: Yeah, that's right, because your whole advertising process isn't done until the offer is made, and there's an opportunity to respond, so the fact that this might be a good lead gen, which it clearly is; that's not where it's failing. It's failing with something we can't see. See, because 200 downloads is a lot of downloads for something like this. [unclear comment from audience member 00:38] You know, do they have a test...? Man 7: It's a very niche market, and there’s not, as far as I know, there's not any other companies that are selling this particular software, that'll do these things as a stand-alone package. There are other companies that are selling it as part of a plasma table system, that costs $40,000. Mac: Yeah, that's right, say that in the ad if you can, because that's a real value builder. The issue becomes are you better off selling it as a sales strategy question; you're better off selling it as packaged product, with full
support and documentation; is customer service a big - do they have any customer service? Is there any tech rep service? I mean, there are a lot of issues downstream from where you were going. Thanks - we've got a whole bunch of people... Audience Member: Can I comment on this? Mac: Try and get feedback; if you have these issues and you want to talk to him about this, go talk to him, if you think... Audience Member: Can I say something for the guy? I have a tip for him. Mac: I'm sorry, I can't see you. Sure, go ahead. Audience Member: Well, what's very important is that you market directly to the decision makers. If all kinds of people read that magazine, and the download is free, so a lot of salespeople or even - all kinds of person…
Jay Abraham Mastermind Marketing 11 …kinds of people read that magazine, and the download is free, so a lot of salespeople or all kinds of personnel can download it and try it, but you have to direct - market direct to the decision makers, so the headline of the ad must focus in on the decision maker; the one who has the money to buy the product. Mac: and that's a very - you probably heard him say focus on the decision maker. That's a tricky question. You sometimes need the end user to stimulate the decision maker, because the decision maker - that is to say the financial gatekeeper, isn't always the end user. So you have to get evidence in their hands it's worth the money, or have a guarantee. With a thousand dollar price point; even a $500 price point; if you had a performance guarantee - 'We guarantee we'll save you 20 hours of professional time in the next month.' [Inaudible comment from audience member [1:29] Well, it's a lot of tactics with that, and I wish we had time to go into them all, but you should pay attention to some of these dynamics, and started paying attention no to this front-end, which worked, but to the secondary steps. Dan? Man 8: My names' Dan Bantley and I own a trade school. 'Adores men and women. Do you love hunting and fishing but hate your job? Gain a clear advantage. Learn a career that will complement y our outdoors lifestyle. Be you own boss, make your own hours, control you destiny. Call
the Pennsylvania Institute of Taxidermy for more information about your new career. 1800-GREYFOX, or visit www.studytaxidermy.com. Mac: Reactions? [Inaudible comment from audience member 2:21] Well, it’s an interesting question, because I actually talked to him about his earlier. What's your naive assumption about school taxidermy? What are they teaching you to do? Stuff animals. That's not what he's teaching them. IT's a $23,000 product that -it's a school of taxidermy business; yeah you have to learn how to stuff animals, but it's a business course; it's a business opportunity course, in many ways. See, this is what you've done is an interesting thing. You've said the affinity here that you've discovered is outdoors people. But your headlining could be different from that, and this is where you test positioning. Your headlining could be 'Hunters, fisherman - do you want a business and profession where you're totally on your own?' So you could sell the business proposition dominant, not the love of the outdoors. Even though you’re targeting outdoors people as a prime proposition, because they've proved to be your market. So your positioning could be the people looking for a business proposition, somewhat related to their core interests. and that's how you test the positioning. And we talked about whether or not you should name to School of Taxidermy Business, or Institute of Taxidermy and Business, so the business aspect, which is dominant in his course, could come up higher, rather just than the naive assumption you're just going to learn to put the deer on the wall. Which is what I think most people would assume, without any other prompt to the contrary. Man 8: Yeah, the business today has changed. We do a lot of dioramas. 75% of the work we do in our private studio is large life sized animals done on dioramas, so... Mac: Well, you could also do another positioning, which is 'ten surprises about taxidermy as a business and profession.' And go through some of these things of interest that you're just adding to here now. That's great. Man 8: Thanks. Woman 2: Hi, my name's Barb Steel, and we sell high tech health products that help take away pain. This is an actual email that went out to 3,000 people who had opted into receive more information from us. Why do thousands of Canadians buy and use Solartherm Mega Relief Cream? Because it works. Now available for the first time in the US, this mega strength therapeutic cream is specially formulated for the relief of pain of muscles and joints. It provides warmth and comforting relief for hours. Not
only does it have menthol to dull the pain, but it also contains a special patented strength of MSM with professional-grade aromatherapy. It is like an aromatherapy massage in a jar. Do you suffer from pain? Do you suffer from arthritis? Simple back ache? Minor aches and pains? Turn to relief you can count on. Solartherm Cream, $24.95 for a 1 month supply. Either the pain goes away or you don't pay. Special offer: $10 off Solartherm Mega Relief Cream with any purchase of our soothing Solartherm wear; which is our back-end, which we really want to sell. Call 1800, 24 hours a day, or order online at www.solartherm.biz. Mac: Okay, now, pretty good ad? What's missing? One enormously important element is missing. Woman 2: Unique selling proposition. Mac: No. Woman 2: What? Mac: Testimonials. The single most important - in non-prescription medicine; alternative medicines, and treatments, is testimonials. Because you can't present scientific evidence, and people go, 'Yeah, okay, I guess it won't hurt me, but will it really work?' And the most compelling evidence is from a credible and passionate testimonial. Woman 2: That's a point. Mac: And the more the better. Woman 2: That's a great idea. We had a problem with unique selling proposition, because the FDA lawyers say we're not allowed to say it's unique. Mac: That's where a testimonial can say, 'I never found anything like this.' Woman 2: Perfect. Mac: And you can't say it, but they can, because it's their personal opinion. Woman 2: Yeah. [Inaudible comment from audience member 2:16] Mac: Why does it start with a question? How would you rephrase that as a question? Audience Member: I would take - though she has it as a question, I would...
Woman 2: Why do thousands of... Mac: Why would the blanket assertion be better than the question? Because you like it better? No, because I’m just saying, questions are a lead in. A question, if you have an interest in the question; you implicitly want to read the answer. The statement may or may not be intriguing. It's the kind of stuff, if you really have an opportunity, you can test. But questions that have an intrigue factor are good as headlines. They’re dangerous, however, if you don't know what you're doing, because you can say, 'Who can imagine a more powerful proposition that Preparation H?' And you go, 'Who cares, I don't know, I don't want to know.' If it can be answered more than one way, by a sceptical soul, you don't want to ask the question. If the question leads you into the copy, it might be powerful. How to's are excellent headlines, of course. Woman 2: Like, how to thousands of Canadians find relief from pain? How do they find? Mac: Well, that's a little - but how thousands of Canadians find relief from pain might be powerful. Audience Member: But the answer is 'because it works. ‘Do you think...? Mac: That's where the testimonial approach - her answer is that it works. The only evidence you can say that is from testimonials. You probably can't even say, 'Because it works.' Woman 2: So I can say, 'Learn what Solartherm uses,' or say...? Mac: Excuse me? Woman 2: Learn what Solartherm... Mac: Right, but you really to re-plot the ad so you actually have some live testimonials in there. That's a critical element in that. Thanks. Woman 2: Okay, thank you. Mac: I'm sorry we're pushing you through it; it would be wonderful to go into depth, but we're dropping like fruit flies at the California border here. (Laughter) Man 9: Hi, my name is Will Green. This is an ad that I would run in Millionaire Magazine, the Rob Report, and Entrepreneur. The headline is, 'How much are really worth? Would you diligently work 20 hours a week to accumulate $20 million over the next ten years, and save thousands on your income tax as an added benefit? Free $200 information package,
including four training videos. Send $20 to cover shipping and handling to:' and then the address. Mac: What do you think? Greased shoot, problems with the copy, something where you just go nuh-uh. [inaudible comments from audience 5:03] Well, as a lead gen, interestingly enough, specificity can work against you as a lead gen. What was your original proposition? Read that first paragraph. Man 9: Okay. 'Would you diligently work 20 hours a week to accumulate $20 million over the next ten years.' Mac: What does that sound like? Sound like 20 hours a week; 'Where am I going get that? I don't even have time to go to the bathroom right now.' (Laughter) Man 9: I think my market is executives out of work. That's my market... Mac: Well, then say, 'Are you an unemployed executive? Would you be able to give - not 20 hours - two hours a day - yeah, two hours part-time. Something, because 20 hours sounds like you should be getting paid for it. Man 9: But it is a lot; $20 million is a lot. Mac: Yeah, but you know what? It's like winning the lottery - it's too much. That's one of those things you should test. That payoff is so big, that most of the people could not aspire to making that much money. They wouldn't allow themselves to think about it. If you'll see, some very good biz op ads will say, 'Do you want to make $1,000, $3,000 or even $10,000?' That's because when people read it, they pick the aspiration point that they're comfortable with, and they don't see the other ones. And so - because if you say, 'Just $10,000,' you might be able to justify it, but it might fall flat as a - because you just screened out - you might be able to say - you can show logically that it would pay off that way, but people don't believe that they can make that much. So that's one of those things. Man 9: My sense is that I want to screen people out. I want nothing but the top echelon. Mac: Well, then you would. (Laughter) So, if that’s what you want, that's good. Man 10: I'm Mike Levy with 'We Notify' from the San Francisco Bay area. This is a draft for a direct mail postcard. 'Uncover buried treasure in your business. Businesses routinely suffer loss of revenue in conjunction with relocating their offices and operations. We Notify, the move announcement specialists, guarantee that your move announcement will
provide bottom-line pay off. Producing move announcements yourselves commonly requires 2400% more staff time than We Notify, with uncertain follow-through and unknown results. Call Wenotify.net today, before it's too late. We answer the phone. 800-68609496, www.wenotify.net.' Mac: Anybody else confused? Do you have any idea what they do? What the service is? I don't, I mean, you're - move announcements. Because you shifted into that real fast, without explaining what it was, and I’m not sure it's self-evident. What is it, and what's the benefit? What's the actual...? Man 9: It's for businesses that are relocating, and need to communicate with everybody they do business with. Mac: You need to say that very - you can't, even though it may be a throw-away to you, it isn't a throw-away to anybody else. It's not a familiar - it's something they do once every blue moon, and they don't think about that as a - the move - 'Take away one part of the moving nightmare. I mean, nightmare of moving.' Something like that, which is, 'all the millions of people you've got to notify; customers, whatever, we do that for you.' Rather than say 'move announcements,' which I think isn't on anybody's do list, per say. So you have to remind them that they have to do it. Isn't that right? Audience Member: It’s like a wedding announcement or something. Mac: Yeah, I don't think - even though you may be right, it's not something that I would say, and you can ask around, that most people have on their list already. So you're introducing - you're assuming it’s a given as something they're worried about, and I think you have to do a little more selling of the product - proposition first. That's my reaction. Get some feedback. Thank you. I'm going to - because it is really late for you guys, and I still want to take on the individual copy stuff for the people who gave them to me. If they want to stay. And otherwise, I'll do it for them - because I know you've got 7:00 tomorrow. This is still - we used to do this two, three o'clock in the morning. No, no, no, you sleep after the you sleep Tuesday. Tuesday, you got time. Man 10: Allergy relief in 20 minutes, with herbs. Dear friends, and I know you have allergies, and I know you suffer from runny nose, headaches, and... Mac: Try and bring the mike up a little closer. Just start over. Because you were a little bit out of range of the mike. Man 10: Okay. Is it better?
Mac: Yeah, that's better. Man 10: Okay. Allergy relief in 20 minutes. Dear friends, I know you have allergies and you suffer from a runny nose, headaches, and watery eyes. I know the medication you're taking will relieve your symptoms, but it also will give you some side effects, and is also kind of dangerous for you to drive while you're taking medication. We have herbal solutions for that, and within 20 minutes of the taking, you can get relief without side effects. And I do have a testimony here, you want to read it? Mac: Yes. Man 10: The herbs prescribed by Dr. Wong has been a big help with a severe allergy problem I have had for years. I have no runny nose, no watery eyes, and very little congestion at night. Autumn is a very heavy allergy season for me, and I have been doing so well lately, that I have had people ask me who my allergist is. I sleep all night and wake up very restful. I have not had this kind of sleep in over two years. Mac: Did you have risk reversal in here? Man 10: So the supply of herbs is for two weeks for $30, and... Mac: That's not a risk reversal, that’s just a sale proposition. Man 10: Yeah, and we offer 12 month money back guarantee, no questions asked, and no [unclear] either. Mac: 12 months, huh. Man 10: So call 512-453-5352. Mac: I think you need to adjust - you have to adjust your risk reversal to people's [unclear 4:29] concern. What's the first thing this ad needs? A headline, right? 'Are your allergies driving you crazy?' Something that encapsulates the feeling, not the symptoms; but the feelings people have about their symptoms. Audience Member:...really blurry, and say, 'Can you read this, or are your allergies blinding you?'(Laughter) Man 10: How about 'When allergies hit, what happens to you?' Mac: What's that? Man 10: When allergies hit, what happens to you?
Mac: It's testable. I think you could find something that's impactful and short, that is in a short phrase, how people feel about their own allergies, not how you feel about their allergies. Man 10: So saying, 'Are your allergies driving you crazy?' That one you would test? Mac: I mean, that's down the line that I would go. 'Are you allergies embarrassing - are your allergies an embarrassment?' I mean, you can run some changes on how people feel about their allergic symptoms. [Inaudible comment from audience member 5:34] Well, because you've got to - you can't sell everybody everything all the time. [Inaudible 5:44] Then you have allergies. (Laughter) Well, this is a little...that's a strategy question, and a good one to ask. And maybe you could take to him about that, because that might work, but I don’t know that. He seems to have targeted allergy presenting - presentation. People who are allergic know they're allergic, and are a definable and in fact, flaggable market, where a lot of other symptoms - although there might be a payoff. If it's a cold for instance, the only time you're feeling that is when you have a cold, when if you're an allergic, you know it - either you just had an allergic reaction, or you're just about to have one, so... Audience Member: That's like rolling, right, how you... Mac: Yeah, and so you have to get them at the optimal psychological moment. Thanks. I’m going to power through at least, to give you guys some chance at sleep. But this line never ends, my God. We've added ten more. I'll do it. I don't care, I’m worried about you, not me. But I'll do it if you - if you stand up here, I'll punch it out with you. Woman 3: Helena Long, from Sasquatch from Canada, Global Money Management Club, and we do seminars and financial planning and stuff like this. 'Paying too much tax? How much tax have you paid this year? Could you do a better job than the IRS of using this money? Perhaps you would invest those dollars and retire early...' Mac: Well, when you heard that, where’s her headline? That's it right there. That's the - you pull that up. You say, 'Can you do a -' because that's a very impactful way of saying that. 'Could you do a better job with the IRS, using your own money?' I mean, that’s a concept you bring up top, not one you bury in the copy. What was your starting headline? Woman 3: Paying too much tax? Mac: Well, I mean, that's okay, but a zinger proposition - 'could you do a better -' that's more impactful. It just is.
Woman 3: Okay. 'Perhaps you would invest those dollars and retire earlier. Maybe you would take your family on a winter holiday. Reduce or eliminate your debts, support your church, buy a new car, renovate the kitchen; the possibilities are endless. Monday to...' Mac: And the solution is right at hand. See, you want to suggest you have a solution. 'Solution is easier than you might have dreamed,' or 'Just a phone call away,' or - you want to bring that circuit - the need back into the fulfilment of the need, which you're providing. Woman 3: Okay. And what I had was, 'Monday, December 16th, 2002, 7:30pm, LA Airport Hilton. An accountant lawyer will explain how you can reclaim your tax dollars. No cost, no obligation. RSVP to: phone number, or email for further info.' Mac: What sort of clientele do you anticipate? What time of person? Woman 3: Middle to upper income people. Mac: Because you want to do something; if you have a special appeal to certain types, you want to flag that as best as possible. 'Do you make more than X thousand dollars a year?' 'Do you pay more than X thousand dollars in taxes.' Something that says, 'Oh yeah, [unclear 3:17] me in.' So, thanks, good. Attention, interest, desire, action. Man 11: My name is Clive Swarzski, I’m a financial advisor, and this may be a postcard mailing or an ad in a publication like Forbes or Investor's Business Daily. I start off with a question: 'Yearn to keep more of the dollars you earn? Let me show you the way. In a few short hours, you'll see how you can have more money than you think. Go to www.cliveswarzski.com. Take me up on my improved, no risk, special free offer, and begin to win.' Mac: What's it missing? Credibility factor, right? Who is he? You're essentially handing - any financial proposition, you're handing over your money to someone, and the first thing is, 'Well, I like the happy talk, but who is this person?' So, 'Let a financial professional with XYZ - financial credential, bonded to $10 million, 30 years’ experience, and a track record of XYZ, help you reach these goals,' rather than just an open ended, 'Here's what you want.' Because what's your market place, do you think? Is it sophisticated or unsophisticated? Man 11: Sophisticated. Mac: Sophisticated, they want to know who the hell you are. It's the first question, who are you? They've heard every financial pitch, they get 10 a
day. They get ten financial advisors a day smiling and dialling. They get this is, 'Hold the phone please for Joe Schmoe from Morgan Stanley.' 'Hi, Bob, how are you doing today? Wanted to talk to you about mutual funds, municipal bonds.' Man 11: Does it matter if credentials go beyond my name? Mac: No, because you've got to get it up front, because it's sort of like as Aristotle said, 'The first principle of rhetoric is the character of the speaker.' So the character of the speaker matters. You're making what sounds like a lot of - sounds too good to be true claims, unless you have some credibility when you're saying it. If it came on a letterhead and you were a known quantity, better, in the particular tone you've chosen to at least have your credentials be commensurate with the promises you're making. Man 11: Makes sense. Mac: Testimonials for the extent that they're permissible? Sure. Testimonials are always - testimonials are the great secret weapon of direct response marketing. Testimonials are third party endorsements. There's some rules and FTC rules; there are lots of - but still. If they're real or vouchable, there's nothing like testimonials. Because it says, 'This guy's for real. This proposition is for real. This product's real.' Take care. Good night. Man 11: Good night. Man 12: My name is Ken [unclear 6:29] , and my company is a feature film production licensing company; we make five or six feature films a year, and I’m branching a new division which is selling the effects portion of the company. We have animators, so I'm talking to visual effects coordinators at the studios, advertising... Mac: You're selling the animation services? Man 12: Yes. Mac: As like, somebody on contract? Man 12: Right. And my ad is a direct letter or mail piece to them. To the visual effects coordinators; I’m pretty certain production companies, advertising agencies and studios. Mac: Sure, okay. Man 12: 'Could your production use more money?'
Mac: Who? Who's it to? Man 12: This is to the visual effects coordinator of... Mac: Does it say? Does it have little flag up in the corner that says, 'Visual effects coordinators?' To... Man 12: Like a letter? Mac: Underline. A call-out. Man 12: Dear Joe Shmoe... Mac: It doesn't have to be 'Dear.' You can just flag it up on the... Man 12: Oh, visual effects coordinators...okay. 'Attention...' Mac: 'FYI, visual effects coordinators.' I mean, something that says if you're... Man 12: That would be more like an email wouldn't it? Directly to their email, once I find out what their email is, I have their name on it, and... Mac: You still should flag them because they're looking down for a reason to read it. Man 12: Okay. Flag... Mac: You're talking to me. Okay. You know my job title, you know my function anyway. You may not know anything else, but you know that. Man 12: I know your job title. 'Could your production use more money? Now you can have major studio level effects at independent prices. Our Emmy award winning team is ready to work for you, and with the addition of our new European facility, your production dollar travels even farther. Call us for a bid and receive our Volume 1 Royalty free stock footage CD absolutely free. Animators are standing by. Call us at UFO effects at 818846-0465 or visit us at www.ufoeffects.com and download our promo. Mac: What's the sales cycle on it? How long...? Man 12: How long for the CD? Mac: No, what will they know - what do they need to know before they can make a commitment to you? What are they likely to check out? Man 12: Well I think they’re going to, first of all, it's a finite group of people who I’m competing against. So they know this is a feature film company; now they're seeing us as an effects - so the time limit is, if they
have a job that they’ve got coming up, they will get this email or letter, and they'll go right to the website and see our stuff, call us immediately for a bid. Also the fact that there’s a CD in here for free, of stock footage; and to these guys, that's got value; and it's free. Mac: You see, more convincing is 'Our schedule is filling up fast, give us a call...' Man 12: Oh I see. Put urgency there. Mac: Because also, posture. You're selling real hard, you're leaning real into it, and you're - so you've got to come back a little bit and sell professional posture, first, rather than all the (makes noises); which sounds, for a professional sell, you’ve got to be a little careful not to look like you're desperate. Man 12: Okay, so... Mac: Or you say, 'Check out our work, we're booking now.' Just something that says, 'Well, they're hard to get, but this is my opportunity. Man 12: They're available right now. Mac: Well, you say, 'The schedule's filling up, we still have a couple of slots for the...but you know, they're filling up fast.' Man 12: That's good. Mac: Now, does it make a lot of difference? It might. I mean, it's a tonality thing. Man 12: Yeah, demand. It's always the same in that business, if you're in demand... Mac: If you wouldn't like reading that ad face to face with - to say, you made a call to one of your prospects, and they said, 'Well, we didn't see the ad,' and you said, 'I'll read it to you.' And if it made you cringe reading the ad, you shouldn't... Man 12: Shouldn't do it. Mac: Shouldn't do it. You should do something you're happy, that they’d be happy to hear. Man 12: I'd probably minimize [unclear 3:41]. Mac: And it's believable from you. And it's in the right tonality. If you're a leader in features, or even a player in features, then...
Man 12: On the independent level, we are. We're the leaders... Mac: You can say that - you can say, 'Take the animation facility - put the animation facilities of a scrappy and successful independent, to work for you.' Man 12: Okay. Mac: Limited availability. As Mark Twain said, 'You can sell anything in this country as long as you sell one to a customer.' (Laughter) Man 13: I'm David Cathers, my business is an office furniture doctor; basically go into offices, repair their chairs and files and stuff, but this one is directed more towards sales of new chairs or [unclear 4:33]. 'Did you test drive your office chair just on the showroom, or did you try one of ours free for day long, for two weeks, to really feel the comfort? Have you gone to an office furniture store when you're tired after a long day, since that's the only time you can find in your busy schedule? Didn't that new chair feel great, at least the five minutes you spent in it? Any chair might feel good at this time of day, after walking around all those stores, too. But after you take the chair to the office and plant yourself in it for a full day, how does it feel? If you would like, the office furniture doctor will bring a new chair to you after listening to your needs and wants, and let you try it in your office, at your desk; your comfort zone, for two weeks. Then you decide. Call the office furniture doctor today, 253-858-3083. This doctor makes house calls. Mac: Hmm. Interesting. Where does the - I'm a little concerned with office furniture doctor ending up being somebody who sells you a replacement product than a remediation product. Because, it's just like a bait and switch. Man 13: Exactly. Mac: And its like, 'Oh, that's not really what they're selling,' and all of a sudden, the air goes out of your blue, because your expectation was here, and then to go, 'Oh, they're just selling furniture.' Where if you - and I understand the concept you're reaching for; you're 90% there, but office furniture doctor sets you up slightly...wrong. You could say - I mean, if you say, 'We can adjust...' I mean the pitch could be, 'We could adjust - we'll do our best to make your current installation work for you.' And maybe you can. 'And if all else fails, maybe we can find the right prescription for a comfortable solution.' But you don't start with, immediately we're going to throw out the chair you spent $1500 on. You know, that's a hard sell.
Man 13: Yeah. Appreciate it. Man 14: Hello, my name is Alec Thomas, I’m with... Mac: You see, a lot of what I'm saying has nothing to do with the copy, it has to do with the sales proposition and the interaction. I mean, it isn't the words, the words are fine. It's the concepts that sell. It's the salesmanship, it's the psychodynamics of the relationship. Audience Member: Bring in what we do first, and then that's the ultimate ruse. Mac: But you may not realize how strong a direction that 'doctor' sets you up in a particular direction. Very strong. And so you have to be aware that that's - you have a whole set of expectations, based on that premise; that you have to deal with from then on in. Man 14: Hello, I’m Alec Thomas with PMGroup.com PMGroup like, PM, night-time. And we market website design and tools for real estate agents. Mac: And the PM Group is related to when you work, or...? Man 14: Actually, the name of the company is Performance Marketing Group, but we found that there’s a couple where there’s companies around the country; they have that; so we're - I'm actually toying with changing it to Prime Meridian - night time, because we do work mostly at night. Mac: If you - that whole trade name aspect, if you - you've got to find some kind of unique spelling or concept within that to make it work. Man 14: Right, that's why we're going with perhaps the PM - Prime Meridian, or whatever that's called for night time. But any case... Mac: It's actually post meridian. Man 14: Post meridian, thank you. Mac: But Prime Meridian is better. Prime always being better than post. Man 14: Okay, there we go. Here we go. 'At PM Group, we help real estate agents get more leads, listings and sales. We're so good at what we do, we guarantee results. We've helped some agents reach personal goals, and have helped others reach the highest levels of distinction in their respective agencies. Not just office level, but regional and national. PM Group has helped agents double, triple and quadruple their web business. One of our clients did so well, he bought his own nationallyknown franchise. Another clients, simple put, outgrew the desk fees and
opened their own independent office, located in the heart of the fastest growing - in one of the fastest growing luxury communities in the region. I better stop here because I know that fear of success is the number two cause of procrastination. Maybe you don't want to sell twelve, $650,000 plus homes in just two years, like another one of our clients. Several went over $1.2 million. Maybe you don't want to work that hard. Maybe you just want to make...' Mac: Don't say that. That's a spike, isn't it? You don't want to work that hard. That's like a - you're out of here, bud. You got that hook. Man 14: A lot of agents say that's too hard for me, so that's why I'm trying to answer that question before they say it. Mac: Yeah, but you know what, it's like - if your prospect - treat them with respect, you see. Because they'd say, 'You're not talking to me anymore.' I mean, it's a real subtle thing, you have to listen to that. Man 14: Okay. Mac: That's why you have to go - if people are going, 'Uh-huh, uh-huh,' they're nodding their heads; classic sales - if people are nodding their heads and then all of a sudden they go (silence on audience), bad sign. Man 14: Okay. So the next one was 'Maybe you just want to make sure you're not getting left behind. In any case, we can...' Mac: That's another negative. You want to build up a positive image. I mean, you can go slightly down the negative path. You can't go too down, I mean; the sales proposition - you can't go too far down this negative caricature path. Once you start to belabour that, you lose rapport. It's a rapport break, and people want to re-establish rapport immediately. If you go on long with it, you just lose them, totally. Man 14: That's going...okay. [inaudible comment from audience member 1:05] Mac: You say - you can do a lot of things with it. You could say, 'If you're a performance master's client,' - I just re-framed you. 'If you're a performance master's client, you are willing to work the extra hours. You are willing to do this. You are willing to do that. We work hard and you do too.' Phrase it - re-frame it, positively, so that I can identify with it. Man 14: Okay, okay. Let's finish here. 'In any case, we can help you achieve your Internet goals, because we specialize in web-based real estate marketing. You've seen our flyers for years, and we're still here and
stronger than ever. Real estate agents that decided to add our Internet marketing experience to their business plan, have achieved the results mentioned above.' Mac: Internet business marketing technology. Don't mean to interrupt you, but business marketing technology goals, or business marketing goals, or new technology goals, but not Internet goals. Don't have any Internet goals, per say. Man 14: Okay. 'Now it's time for you to benefit from the experience gained while producing those results. You can skip all the time consuming and costly trial and errors, bypass all the dot com hype, and let us show you how to succeed on the Internet. To get started on a guaranteed path to success, call 1800-346-7046. P.S. Visit www.realtestimonials.com, to view real testimonials written by your peers about what PM Group has done for them. You'll see why we can guarantee your success. P.P.S. Start 2003 off on the right foot by investing in your Internet presence this year, and write off your taxes - write it off on your 2002 taxes. Don't wait until 2004 to get your money back. Let Uncle Sam help you pay for your 2003 marketing expenses, by taking advantage of a tax benefit real estate agents are entitled to. Talk to your tax advisor to see how you qualify.' Mac: Yeah, except for the 'talk to your tax advisor;' you could put that in little, tiny print, something like that. I mean, 'Start making the Internet work for you today.' That's where you want to - you want to end on a strong proposition; on a re-summation of your central theme, not on, 'Oh, talk to your lawyer.' That's the last thing you want to do. (Laughter) You may have to talk to a lawyer, but you don't want to send them over there. Audience Member: Sounds like your [unclear 3:31] was to ask them to read testimonials on your website? Mac: Yeah, there's a case for that, if it's a lot of businesses out there trying to pitch, who can't get the testimonials, or failures and stuff. Man 14: We have over - around 50, 60, 70 testimonials on the website. Mac: Offering a white paper is a great - and white papers still pull like crazy. If you ever offer a white paper on 'How to get the most out of your Internet site...' Man 14: Will that work with real estate agents? Mac: Yes. Oh yeah, sure. Man 14: Okay, because [unclear 4:05] in some cases.
Mac: Sure, internet-oriented one. Audience Member: Can I make a comment? Mac: Sure. Audience Member: When the sales pieces involves them to sell benefits, but in the gimmick, you talk a lot about 'we.' 'We can do this, and we can do that.' Frankly, I don't want to hear about you, I want to hear about what you can do for me, so you have to address me as a reader of the ad, not talk so much about yourself. Talk about me. How can I benefit. Mac: Point's well taken. He said that the beginning part he talks about 'we' a lot, rather than talking about the benefit orientation of what you do, and I'd have to go back and analyze it exactly where that falls off the wagon. But, your basic proposition is correct. You need to have benefit orientation, rather than what I call things with an 'I ' problem. 'I do this, I do that.' Man 14: Well, what we're trying to do is position it, like you're talking about credibility, to... Mac: Yeah, but that may be a second stage thing. If - the first thing you want to do in any kind of these things is tap into the felt and precede me. Man 14: So the headline, 'At PMGroup.com, we have helped real estate agents get more leads, listings and sales. We're so good at what we do, we guarantee results.' Mac: Well, I wish I had time to - let's work on that later. Maybe sit down with him and try and help him with the ad. Because I really want to get these people on, and it's headed towards 12:15. So, just to give you an advice in case you want to bail. I'm [unclear 5:47] master; I'll keep pushing you to to plain. Man 15: Hi, Bill Shaw. This is going to facilities managers, in a letter. 'Dear whoever. Stop doing my job instead of your own. How many times have you had to stop your own work to listen to an employee complain about the janitor? 'They forgot my garbage, there’s no toilet paper, my computer was unplugged.' Hundreds of companies across America are saving time and headaches by switching to Omex, the office maintenance experts. Systems proven by decades of experience cleaning A-class office space just like yours, guarantee results that are competitive price. Call the professionals at Omex today for a free evaluation of your needs, and a no obligation quote. It may just free up enough time of your day to get you
home on time. P.S. You must be happy with our service after 14 days, or you won't owe us a dime.' Mac: Okay, any comments? I have some, but... Audience Member: Slow breaking. It took a while into the ad before we really knew what you were doing. Mac: Your shock opening turned me off rather than turned me on. In other words, there's not enough context there for you to say, 'Stop doing my job.' It sounds very self-interested on your point. There may be a conceptual way to re-frame that. Use that. What's the alternate? Man 15: 'Stop the interruptions.' Mac: There's probably something there conceptually. You have to find the right phrasing, because right now, you have to make the benefit like, 'Get home...' You could say, 'Management's secret - office facilities management secret weapon. How you can get home and get your feel up before 6:00,' or something. I mean, do something where it's a payoff for them. Rather than you're worried about whose job it is, because it sounds like you've got a shop steward in your pocket. I mean, you don't anybody...'This is my job, and you can't touch it.' You don't want to start down that path. But the payoff is big for them personally. Are they the specifier decision making as to whether to hire the service? Man 15: The bigger the job, the less likely so. Mac: Well, that's an issue that would have to be dealt with. How to make the case for - making the case to get the headaches off your chest, save your company money at the same time. I mean, you have to have a payoff for everybody; for the management and for yourself personally. If you make just the personal appeal, they can't sell it. If you make the personal and - because they have to now take this proposition and sell it to the authorizer. To the real specifier, decision maker. Okay? I'm sorry we can't go through everything on the basis that I'd like, but we're just trying to get you... Man 16: David Reader, Reader Law Corporation in Los Angeles. We represent individuals and companies in bankruptcy cases, in business reorganizations and bankruptcy litigation. This is aimed at the individual bankruptcy segment of our practice. It's a classified ad or display classified. It will appear in magazine that targets senior citizens, meaning anybody over 55. To goal. the direct response from people over 55 or referrals of family members who are having financial difficulty. Reads as
follows: 'Are you being pushed to the while by your creditors? have you had enough? Are you ready to take back your financial future?' Then the text. 'Are creditors calls and letters becoming a daily part of your life? Have financial downturns affected your peace of mind? Do you wonder if there is any way of living a normal life again, free of creditor harassment? Reader Law Corporation has helped hundreds of people like you regain their financial footing. We have strategies that will fit your needs. For a confidential review of your options, order to receive a free copy of our special report, '10 Questions and Answers on Bankruptcy,' contact Reader Law Corporation 310-557-8911. Visit our information packed website at www.readerlaw.com.' Mac: Or call a personal counsellor? I mean, this is like people in trouble, they're not - visiting the website may or may not be a... Man 16: Sometimes they're not ready to pick up the phone and have person-to-person contact. They want to... Mac: Sure. And that's a great thing to say. 'If you're not ready to pick up the phone, get more information...' Your opening? What is it? Man 16: Okay. 'Are you being pushed to wall by your creditors? Have you had enough? Are you ready to take back your financial future?; Mac: That's something you could work on, because it's - 'pushed to the wall.' You say, 'Are you paying your credit cards with credit cards? And about to go up in smoke?' I mean, the other thing - the basic flow is fine. I might be able to pick it apart. The question I have which you started with, is the presumption of market, so people over 55. I don't think that corresponds with my understanding of that market. You'd have to test various market places, but my guess is that people; 40, with a lot of credit card debt, are the most likely candidates. You'd have to get some - maybe you can get some demographics on bankruptcy, and find a medium that matched. I mean, for instance, there might be - what are they doing to get by? Are they reading something in the paper, are they reading the want ads in the paper? Are they selling off merchandise? Can you put an ad in the pawnbroker's section in the classified? You need to find a place where there's a high probability where your targets are - because your proposition's fairly straight up. So you need to find your market. That's going to be the trickiest thing. I know from talking to other people with bankruptcy practice. Because it's very difficult to bankruptcy to look like everybody and nobody. So, maybe you have a letter or something that - what's the first
sign of trouble? Their mortgage servicer? Can you buy a list form mortgage services about stuff about to go to foreclosure? Can you get in can you get a list from those pre-foreclosure...? Man 16: there are things like that published, that could be gotten. Mac: Yeah. And you send a letter or you make a phone call or whatever to those people. But finding that psychological, almost ready to go under person, is the critical point. Man 16: Thank you. [inaudible comment from audience member 12:26] Mac: If it's not too extensive, and you're going to make a lot of comments, I’m going to ask you to come to a mike, because...starting to feedback? From that? Okay, I’m not supposed to hunch over. Okay, no hunching. Okay, thanks. I wish we could spend more time, but perhaps we'll get a chance to get you some feedback from... [Inaudible audience comment 12:50] Already it's not been - I’m kidding here. Okay, be short, come on. Audience Member: Okay, the headline was made up of three questions. Then you start the text with also three questions... Mac: Yeah, it's a little difficult... Audience Member: Didn't answer any of the questions... Mac: Yeah, it's a problem, problem solution approach. It has to be more succinct, it has to get to the nub quicker. However, if he demonstrates empathy with the position of the potential customer, it's not all bad. Okay, so that - as long as the empathy is there, the structure may be a little clumsy, but the empathy will override. But he has to find something that grabs them, at that particular moment. And certainly can be cleaned up, and if we were re-writing the whole thing on the spot, he'd be well served by re-writing it. Man 17: Okay. I'm Howard Hoffman, I do sedation dentistry, and I've written a radio ad targeting the business person. We go on to radio stations, mostly talk radio, and... Mac: You already do this? Man 17: I already do this with a different commercial. Like it's - re-wrote something a little differently. Okay. 'Do you have time to visit the dentist every week for months and months? If not, sedation dentistry may be the answer for you to achieve the smile of your dreams. I'm Howard Hoffman, a dentist in La Ventura, Florida, who treats many busy people, like
yourself, from all over the country. I understand your concerns and fears about time and comfort. Using small...' Mac: I'm going to interject. Why do they come to me? Why do they come all the way across the country to me? Because that's the question you got right away. Why are they coming all the way across the country? So answer it. So why do they come all the way - because I have a unique, patented, proprietary, not to be duplicated, methodology system, practice, whatever. You want to come in with that. Man 17: 'Using safe, small pills, I'm able to sedate you, and accomplish in one or two visits, what might take months of visits in the traditional manner. You know the reasons you haven’t taken care through the years. Now's the time to achieve the great smile you desire. Call now for free information about sedation dentistry at 305-933-3070. That’s 305-9333070.' Mac: What’s a spike there? Safe, small pills, right? Small pills is deadly. You've got to say, 'Safe, local or low -' you come up with a - could be 'noninvasive.' Some kind of description that doesn't say pills. Low threshold anesthetic. Come up with something that - painless is important but also, why the small pills? Man 17: Because that's what we're using, we're using pills instead of... Mac: Well, what’s in the pills? What's in the pills? Placebos? Man 17: No. Mac: I mean, I don't know, it's a pill, so why pill? Man 17: I'll work on your mouth with the pill. Mac: Okay, what's the pill. Man 17: It's triazolam. Mac: Okay, and what kind of anaesthetic is it? Man 17: It's in the Valium family. Mac: And so 'We use a mild tranquiliser to take away your fear and your memory?' That's another spike? Man 17: A mild sedative. Mac: 'A mild sedative so that you feel no pain and...
Audience Member: How about like, 'No shots, no gas, mild oral sedative.' Mac: That's good. I like that, that's very good. Man 17: It's a mild oral sedative, however we do use shots and gas as well. Mac: So the extent that you can't say that. You can say, you could weasel it a little bit; that's a professional term... Audience Member: Say pain relief techniques. Mac: Yeah. 'We use as little medication as possible.' Man 17: I've been running a different ad for about three years, advertising these as a small, safe, blue pill, and I have people all over the city approach me and say, 'I want your magic pill.' I mean, they love it. Mac: Safe, blue pill. You didn't say blue before; I would have a totally different feeling. No, I don't know. I mean, I personally would test it without, see what I get. Because there are certain people who will like that, and then other people who will be scared of it. So I don't know. That's my reaction. I asked them, and that's what I got, because I’ve got the same problem with it. That could be just me. That could be the kind of stuff you need to test. Audience Member: [unclear 00:14] magic pill to make...painless. Mac: Yeah, if you could say magic with quotes around it, then that might be for your market; appropriate. That's good. Point of interest. What's different between this one and the one you're running? Man 17: The other one is more to the phobic patients. Fear. Mac: Just phobic of dentistry, period? Man 17: Period. If going to the dentist is one of your greatest fears, you need to know you're not alone. Mac: And we have a solution for you. Man 17: And then we go into a whole thing; 'You wouldn't think of having your tonsils or your appendix taken out with sedation...' Mac: And what was the lead here? And what was the prosp...? Man 17: Do you have time to visit the dentist every week for months and months?
Mac: My guess is your phobia ad will out pull this, three or four to one. But you don't know. I don't think the time factor, for most people, is the dominant factor. But that would be my - that's just a guess, and that's testable. Man 17: Right now I'm getting business people in, who - I'll accomplish a dozen visits' worth of treatment in one day. Mac: Well, you put that in a business publication. I mean, as a broadbased consumer thing. We're talking about testing; this is the kind of thing you can test. This is the kind of thing you can show big results and big differences in pay off. And if not, if they both work, then you've got two ads to run, not one. Okay? [inaudible comment from audience 1:38] Maybe, maybe not. Maybe it's not necessary, maybe they know they do and they've just been putting it off. Man 18: My name is Pat Solis, gynaecologist from Houston. And this is a letter that we're going to do direct mail with. The headline: 'How can you help yourself prevent cancer of the cervix and many of the other problems other women are experiencing today by having your gynaecologic exam and Pap smear? Dear Miss, do you know that it is estimated that this year in the United States, about 22,000 women will die from cancer of the reproductive organs? 37,000 from cancer of the breast? 36,000 from lung cancer? And 30,000 from colon-rectal cancer? Many of these deaths can be avoided. Early detection, giving a better chance for cure is the key. Our office is available to you to provide your quality gynaecological testing, evaluation and treatment. During your gynaecological exam, a PAP smear will be done to screen for cancer of the cervix, and a mammogram can be scheduled if indicated to screen for cancer of the breast. The following additional services can be provided for you, including gynaecology and fertility, reproductive medicine, female laser surgery, micro-surgery, pregnancy testing, family planning, Pap smears, laboratory tests and feminine hygiene products and vitamins, for you that are available in the office. Our office philosophy is to provide you with the following: attentive, personalized, efficient gynaecologic care, positive, reassuring and professional treatment on an individual basis. To listen and communicate with our patients with care and respect. Provide multiple [unclear 3:32] services and products in the same office, for added convenience. Courteous, friendly, pleasant staff. Bi-lingual physician and staff. Clean, quiet and comfortable office atmosphere. Most insurance plans are accepted. Call the office for a complete list.' Mac: Now, what was the headline?
Man 18: The headline is 'How you can help yourself prevent cancer of the cervix and many of the other problems other women are experiencing today by having your gynaecologic exam and PAP smear?' Mac: You might want to simplify that, and come up - and this isn’t a final answer, but something like 'Don't become a cancer statistic.' Try to encapsulate that, in a shorter, more dramatic fashion. And you can repeat that line down in copy. After you go through the statistics; so 'Don't become a statistic.' That could be your theme. So they don't have to understand all the statistics, other than they're scary and you want to avoid them. Man 18: I just have a bit more: 'For additional office information and gynaecologic information, please visit our website at www.houstongynacology.com. You can also listen to me live on Spanish radio stations: La Tremenda, [unclear 4:49] radio, K Live and Que Buena, 93.3 FM. One of patients, [unclear], has this to say about our gynaecologic care: "I have been a patient of Dr. Solis since 1992, and I'm very satisfied with the way he's managed my problems. He listens to my problems, answers my questions, and makes communication easy. I would recommend him to anyone that might need his services." That's Martha Pineda, a radio celebrity. If you don't have a gynaecologist or if you're not satisfied with the gynaecologic care you're currently receiving, please call today at 713,' and the number. For your appointment, and to receive your complementary brochure, [unclear 5:30], your health and ob-gyn exams [unclear.] P.S. Bring this letter with you by 23/01/03, and I will also give you a free 90 day supply of our health plus multi-mineral, multi vitamin. Mac: It's basically well structured. I have a feeling; and I have to go through it; that you could probably tighten it up by about a third. There's some redundancies, but no, the proposition is clear. I'd worry a little bit about who you're sending it too and whether or not you're professional vocabulary might not be intimidating to a more lay-market. That would be my first level of concern. Man 18: Mac:, what was that statement you made initially, about the headline? Mac: Oh, I said, 'Don't become a cancer statistic.' Are there any other thoughts on that? But that's - I think it's a very deliberate and respectful approach. Maybe, you list a little over the heads of - I've worked with some lay people to read it to, and have them ask you every time they don't understand something, and put a simpler formulation. I mean, I understand it fine, but I wonder if your target market would. But I think it's
a very nicely set-up letter, but as I said, I worry about the vocabulary level. Man 19: Good morning folks. Mac: We can talk about this stuff tomorrow. Man 19: It's morning already, yes. Marc Anthony, Training Force Success in New York City. This is a direct marketing letter that will be going to YEO members; essentially business owners that make over a million dollars a year, minimum, in revenues. It starts out with a quote in nice bold letters that quick and easy to read. "Learning to solve the challenges of hiring a winning team, leveraging sales efforts, and managing staff allowed me to go from a start-up business to 8 million in sales in only five years, with virtually no start-up capital." Mac: That's a dissertation, not a headline. (Laughter) Man 19: ...long copy letters... Mac: Yeah, only Jay can write those things, you have to get Jay to write that, because I can't write those things. Man 19: Okay, well. "All while maintaining 45% profit margins in an industry that averages only 15% margins. And five years later, sold my interest in the company for $15 million." Then it says, 'Dan Farish, Ernst and Young Entrepreneur of the Year. Dear Executive, as a fellow YEO member, I have many coups in the marketing and coaching career, and proudly can say that having convinced and coached Dan Farish, one of my clients and close friends, out of retirement, to give a private advisory meeting to a select group of my friends and business associates, is one of the biggest. He will share each of his business breakthrough strategies that allowed him to sell his business for $15 million at the age of 34.' then I mention a specific success in hiring superstars, then I mention another specific success in getting excellence from the staff, and then mention sales and marketing breakthrough that he's created. 'Dan is not a seminar presenter, or rah-rah motivator. He’s a direct and decisive, pull no punches, make it happen entrepreneur and CEO. Because of this, he's agreed to share his insights and solutions...' Mac: This is your lead, right here. This is your lead. The other stuff - bring that all the way up to the top. Man 19: Thank you. 'Because of this he's agreed to share his insights and solutions, but insisted on limiting the meeting to only eight people. He wants the discussion to be candid, with a vibrant flow of ideas that is
personalized to the issues of each of my select guests. As a fellow YEO member, I am personally inviting you to be one of the select few that can tap into Dan's entrepreneurial genius and practical solutions. Call 2...' Mac: This is a negative sell. You need to set this up like, 'YEO special event, or spaces limited to eight.' So you really want to be pushing exclusive - this is so exclusive you can't get in. Maybe a little bit, you know - so you want to say - you want to have the reclusive expert - 'Reclusive expert enticed out of retirement for one special session.' Something like that. Because you want to have this push-pull between the opportunity and the limited availability. Man 19: What' we're saying there then is, we said there's only eight people... Mac: That is Jay's sell. I call this Brigadoon marketing. You say, 'You better come now because it may not happen again for a hundred years.' It's true too. Of course it's almost more - my favourite thing in marketing is to say people go; when you work on some copy, and you go, 'Well, that's a great pitch, and it's true too.' It has the additional benefit of being true, so that's - the things that have truth to them and their limited availability are very powerful. Man 19: Okay. And then as you go to the close, let’s see. 'As a fellow member, I’m personally inviting you to be one of those select few.' then it's, 'At such-and-such a time, call 212-683-1834 today to participate. Mac: For a pre-appointment. You want to keep the posture high. For a you have to have some little threshold for qualifying; exactly right. Man 19: The alternative I had was just not actually saying it in the close there, but saying, 'Yours truly, Marc Anthony.' Then 'P.S. I will call you on...blank...at such-and-such specific time to give you more details.' Mac: You know, that used to be a classic sales approach, but the truth is, if you don't meet that appointment, they think you're a jerk. And you’re not restricted from doing it anyway, so to announce it and then not do it would be worse than not announcing and doing it. So it's a question of if you're going to make that commitment, assume that they’re going to wait for you to call. Man 19: Right, that's what we do and then we schedule into the books with that; the alarm goes right off. Mac: Yeah, but you know how - I don't know. You can try it out... Man 19: That's something that would be testable...
Mac: Yeah, that's something you could try out and see if it works. Man 19: So with what your advice was about moving that one part... Mac: Well, you need to make it sell. Only Jay can write those convoluted, stacked headlines. He's a master at it. And he is because each of his segments have an embedded proposition in each line. And they're sort of threaded together like a 19th century novel; but you could bring any one of them and can bring any one line out as a headline. Man 19: So you're saying, like take the... Mac: But I’m not saying you should do that. This is professional level presentation. You want to see if a more professional approach handles it. A lot of people will just stop at that long, convoluted thought. And you want to make some part of it distilled; not congealed. Thanks. Distilled, so that they get the benefit. Man 19: So what are your thoughts about keeping the Ernst and Young Entrepreneur of... Mac: Ernst and Young is fine. Man 19: But just shorten that to some degree? Mac: Yeah, it's that concatenation of ideas that one has to be extremely skilful - if there’s one bad thing Jay teaches people by example, is that he pulls of copy tricks or the equivalent of a... Man 19: Half-court shot? Mac: Yeah, of a half court, or three-quarter court shot at the buzzer. And nobody else can do it, and that's - it's a very tricky thing to emulate. Man 19: Thank you Mac:. Mac: Sure. Audience Member: You have to get rid of the part where he says 'He is my client and friend.' Once you say friend, that takes away the credibility. Mac: You could say associate, but - 'close associate.' You can say - client, yeah it means you're - that's right, client is good, isn't it? [inaudible comment from audience member] Yeah. Man 19: Could just leave it as client, and take out...
Mac: You could say close associate, if you want to say you have a deeper relationship, but friend is probably - right, because you say all of sudden it's not a business proposition. Man 19: Thanks, Alan. Mac: What were you going to say? Audience Member: I wouldn't even use client, I would use close associate, because if you're trying to build him up as this really big guy, then they will feel, 'Why don't I just [unclear 14:20] if he's your client?' Mac: Yeah, there's a danger of that. But you understand - once again, this isn't copywriting, this isn't fine language, this is sales nuance sensitivity, and you know, all these things are important, because every one of those nuances effects - I mean, when we read these things, we're all going, 'Thumb up, thumb down. Where am I? Is it thumbs up?' We're just going through it, and we're going, 'Do I go further? Do I go on to the next paragraph, do I go on to the next sentence? Is this a reason to throw it away?' That's the process we're going through all the time, is thumbs up, thumbs down thing; and so you've got to be really attentive to something that's - people are looking for a reason to throw it in the trash. Man 19: Thank you. Mac: Sure, pleasure. Man 20: Hello, my name is Robert Pierce from Sheffield, in England. I'm opening a fish and chip restaurant in January next year. Mac: Where? There, in Sheffield? Man 20: In Sheffield, yeah. It's a big industrial area. And this is a direct mail letter I wanted to send to the directors of the local firms; mainly engineering firms. Mac: Is there something unique about the fish and chips? Man 20: Yeah, they taste very, very good. The service is excellent. On the takeaway side, we’re perhaps one of the quickest fish and chip shops you'll ever go in; you don't spend most of your lunchtime... Mac: So if there is a payoff, that's it, right. You're quicker in and out, so that's the sell to the potential industry? Man 20: That's the sell to the takeaway side; obviously if you're sitting down in the restaurant it's...
Mac: You're planning a truck delivery service, or pre-packed - like, can you have a truck? Man 20: Not a truck, not really, not with fish and chips. Once you've wrapped them up, you've got a very limited... Mac: Oh I understand, you have fries - fryers - some place; like in Canada they have - they probably don't have them anymore, but they did have they used to take a lot of school buses and turn them into fish and chippers.. Man 20: Yeah. We've delivered in the past... Mac: My father lives in Canada... Man 20: You know, single orders at the time... Mac: It was just a thought because - bringing the service to someone is a powerful proposition. Man 20: Actually, I was thinking the other day, we have a way of doing that, if we do decide to go down that route. Basically if we send a sunflower seed in a plant pot to a firm, and say we're having a competition on who can grow the highest sunflower, and we're going to phone you up every week to see how tall it's got... Mac: Hmm, interesting. Well, let’s hear your letter; I'm sorry I got you off on a... Man 20: Right, as I say, this is to the directors of local firms. 'An invitation to get the best fish and chips you've ever tasted bought for you. Don't pay a penny. Why would I make such an offer? How many times have you taken a client to lunch, maybe to impress them? Would you risk taking them into a restaurant that you've not personally checked out first? I didn't think so? That's why I'd like to invite you to lunch in my fish and chip restaurant. I want you to experience the taste, the colour, the aroma, the crunch of the crispy batter, and the expert service, so you can decide for yourself if it's somewhere you'd like to bring your clients. I’ll pay for it; it won't cost you a thing. Everyone has their favorite fish and chips and your clients are no different. I want them to appreciate you for bringing them here, because then hopefully, you'll come back again. Of course, you may decide not to return, but I'm willing to take the risk and leave the choice to you. To take advantage of this offer, all you have to do is bring in this letter, and mention it to the waiter, that lunch is on me. I'll come over and personally introduce you to my business, show you why we do what we do, and the kind of service you can expect. We're only
300 yards from your company, and there's plenty of parking across the room. Lunch is from 11:30am to 2:30pm. If you wish to bring someone with you, the offer is good for you both. I look forward to meeting you soon. Robert Pierce. P.S. By the way, this is what the managing director of XYZ company had to say when he came in.' then a testimony... Mac: Now, you're expecting these people to become your core customers; the managers? Man 20: Yeah, the directors of the local companies, or their sales managers. Mac: So will it be tablecloth service and that sort of stuff, or is it more informal service? Man 20: No, it will be good service. I'm not necessarily sure about tablecloths, but it will be good service. Mac: Yeah. So it would be more of a lunch - more of a sit down lunch spot for middle management and above? Man 20: Yeah. Mac: So even though - you could take a salesman to lunch there, or whatever? Man 20: That's right yeah. I wanted to target that higher end, and I think there's more of a chance for referrals from that kind of market. Mac: What have you got to have on tap? Man 20: How do you mean on tap? Mac: Beer. (Laughter) Man 20: bottled beer mainly; wine. Mac: Well, you might mention you have a license and... Man 20: Yeah, that's a good point, we're fully licensed. Audience Member: Is that going to be included with the meal? Mac: Well, no, but... Man 20: No, that's extra. Mac: Not as a free - well, you know what, a bottle... Man 20: We could package that together, but...
Audience Member: ....give them a free lunch, and you mention that; then they get there and they don't get the beer, there's a bait and switch thing going on. Mac: Yeah there's always a danger on that. You can say, 'But you can buy them a short one,' and - I mean, if they really think they're influential, and they're worth sending a letter to... Man 20: Well, this letter is mainly to get them in, and obviously... Mac: You might to test an offer that isn't just a free lunch, but it's buy one get one free. Get one with my complements, so you bring a friend; so you double the impact, and you make it a social occasion, and they split - you know. So it costs you a little less, and you get twice as much bang for the buck. Man 20: Well, that's something I could test really, between two... Mac: Sure, absolutely. That's why I threw it out there. You might want to make up a coupon or something that is this invitation, that they can present, rather than the letter; that they actually - you want to have a little card, right, that goes with the letter - oh, you want them to call for the card? Or do you want to just enclose it? Man 20: It did cross my mind to say that 'You may want to call, so we can reserve you a table.' Mac: It's a little - it would be more effective if you just sent the card. Man 20: Like a small invitation, like wedding invitation type card? Mac: Yeah, that's right. Audience Member: Is the word 'hopefully' in there or - is that bringing him down some, like...? Mac: You know, I think it's a very natural letter, and it doesn't lose me. I might pick at it, but I don’t' think it's a flawed concept. It's such an unusual proposition, he's obviously sincere, which is the most important thing; and quality oriented, that that comes through and we can't address every - but that didn't strike me as a serious - it sounded like a natural rhythm in the speech. [Inaudible comment from audience 21:07] Yeah, the fast - you need to say, 'If you need to get in and out, we'll get you -' you know, the fast service might be something to think about. Of course, if you're taking somebody for lunch, you don't want to be hustled out, either, so there's a downside to that. You want fast…
Jay Abraham Mastermind Marketing 12 …service on takeout, or - and you want, within your lunch, you want to be able to do it within your lunchtime. 'We'll get you in and out, back to work, happy...' whatever. So play with that concept, but it's a good point. Man 20: Thanks. Mac: Thanks, and well maybe you can give him a hand with that, without changing his essential character. Hi. Woman 4: Hi, I'm Leah Francia, and I'm a life health insurance agent, and I specialize in long-term care insurance. Mac: Oh yeah. Woman 4: Okay. This is the first ad I ever wrote. So we'll see how it goes. Mac: Have you been selling? Woman 4: I've been in the field for over two years, but I've never done print ad. So marketing is new for me. Mac: Sure. Woman 4: And I've been changing it a little bit, while I was in line listening to you. Okay. 'What if you were a burden to your family? Accident, illness, old age, or Alzheimer’s can result in your needing to receive custodial care for many years. Family takes on the burden to care for you, hire care givers or pay for you to be in a nursing home. Long term care insurance protects you, your family, and your hard-earned assets. Now is the time to long into your options. For a free booklet explaining the coverage and the cost of long-term care insurance, call 1800-' whatever. Leah Francia, Long term care. Etcetera. Mac: Well, you happen to tap into something I happen to know something about. And you can't sell the fear of those diseases; they're too hard for anybody to incorporate. You can - there are two aspects to the long-term care sell. One is, is it precipitated by another family member, a younger spouse, children, who are worried about it? The concern is - or if it's selfdirected, it's 'You don't want to be a burden to your family.' Okay? There's also - I know,. but if you document it, it becomes (makes noise). Shoot me. (Laughter) And so, there's also myths of long-term care approach, which is - may surprise you to know that most people, to get long-term care, for not more than 9 months; and they return home with an enormous bill. That's happens to be true.
So there's a lot of statistics you can gather about long-term care that really, are different than the conception. Most long-term care is not terminal, and that's - most people go, 'By that time I won't even know it, who cares? And I'll be bankrupt and...' You could say there are a lot of financial considerations, some long-term planning that needs to take place. You want to protect your - this is 'Protect your assets while you still can.' That's part of the underwriting, because otherwise you get people who are uninsurable, so you have to get people who are in their prime of who are still in prime health before you can insure them. So there are a lot of steps to this one; it's not - but one of the things I can tell you for sure is, you can't sell directly the individual those fears - those debilitating conditions. You can talk about the impact of those conditions on their family, and the fact that most people are not - the biggest worry isn't that when they go in for good, under Medicaid, or whatever it is - I can never keep those two straight - is when, if the fact that they can have ruinous expenses for a time. There’s also some financial planning stuff on family law that you might bring up a little. 'You may well know that there are some provisions you should make as soon as possible, to protect your family's assets, so that your whole family isn't devastated.' So there are a lot of - this is very tricky sell. But I can tell you, the fear part; the fear's there; it's too high. And once you get too high a fear in a proposition, people just screen out the whole thing. Woman 4: So more like protection without the fear. Protection without... Mac: And protect your family. I'm sorry? Oh, you're - sorry, I was listening to you, but she couldn't hear you through... Woman 4: I was saying that then going more for the protection, and not at all the consequences, I guess, or the - you know, fear, it's so tricky in this field because reality is fearful. But I think that that's why I took the bravery to come up here, because... Mac: Well, take a look at what other people are doing, because it is a mind - trying to talk about that is a minefield. But to talk about all the debilitating - the terminal, debilitating diseases, might be enough to scare a family member into forcing their parents to get it, if they're still healthy, but it'll just turn the parents off. Woman 4: Actually, my target market is between the 30 and 60 year old; that's really my target market. Mac: But that's not - there are several sub-markets in there you can't address at the same time.
Woman 4: Yeah, true. I mean, my average age right now is 57. Mac: And that's appropriate, but those are - you want to protect your spouse's - you have to really dig into what the real motives are. You probably need to ask some questions before you sit down and write this again. Okay? It's not a copywriting task, exactly. I mean , it is, but it's a complex one. Okay? Woman 4: Okay, thank you. Mac: Sure. I might be able to find you a sample of some stuff. Man 21: Hi Mac. Mac: Hi. Man 21: My name's Jim Bertakis, and we're in the - well, Bertakis Development is my company; we’re in the manufactured home community development business, and we're very focused... Mac: Community development? Man 21: Community development. We're very focused on the back-end, because we get people that purchase homes and lease lots from us, and we just... Mac: Where are you located? Man 21: Gross Point, Michigan. Mac: Oh. Man 21: So we do it in South-East Michigan and Texas. So, I'm not going to give any more than that; I'm just going to see if my ad sells itself here. Mac: Sure, go ahead. Man 21: 'Brand new homes valued at $70,000 from only $39,000. Are we stupid, or are we that good? Due to the slow economy, Deutsche Bank has repossessed 22 brand new homes from a dealer's stack at Hidden River South. Deutsche Bank had a problem, because banks don't sell homes; they loan money. We solved their problem at a great windfall savings, and we're willing to pass the savings on to you, just for becoming of Hidden River South. Sound too good to be true? We guarantee a great purchase. If Data-Comp Appraisal, the nation's leading appraiser of manufactured homes, doesn't appraise your home for at least $20,000 more than your purchase price within 90 days of closing, we'll buy your home back, no questions asked. Only 22 homes; when they're gone, they're gone. Call
now; 517-264-6800, or visit us at hiddenriversouth.com. Hidden River South.' Mac: What's your headline? Man 21: Brand new homes valued at $70,000 from only $39,000. Are we stupid, or are we that good? Mac: I don't know, that might work. I mean, I like the basic concept, but you might want to say 'Limited time windfall opportunity,' or you might say, 'Recession...' you might want to word it more... Man 21: What part, the stupid part? Mac: Yeah, because that might - I mean, I know from auto advertising; one of the things you don't want prospects in that kind of sale to think, is that you're smarter than they are. That's why all the auto dealers get on personally and look like idiots. Because their customers walk into the dealerships with the concern that the dealers are too smart and they're going to take advantage of them; which of course they do; but they don't want to seem that way, because they want to look like the guy's an affable dolt. And to suggest that you're smart might put their guard up. That would be my concern with that line. So you might want to... Man 21: I'm just curious, 'Are we stupid or are we that good?' Is that assumes that we're... Mac: Well, ask somebody else. What does that say to you? Don't like it? Man 21: How do you take that? Audience member: Yeah, didn't like it. I thought if you just skip right to the end. The first paragraph was strong. The question I had too was when you said, 'So we've decided we want to pass the savings on to you, just for moving here.' I was like, why? I guess I didn't get why you wanted... Mac: Because maybe you could say - you could come up with some reasonable but vague-sounding business inventory overload. Man 21: I'm just curious; you said why would we want to be a resident? Audience member: No, why would you - like what's the interest for you at passing on the savings? I just [unclear] why would you want to save me forty...I'm not sure... Mac: The issue is why - because you're not on a mike - why...
Man 21: Why be a resident? That's what your question - why would they... Mac: Why would you be that nice a guy? Man 21: For the back-end; we want them to be a resident. But they don't know that. Mac: Yeah, and you can say, 'We have this special opportunity with an inventory overstock, because of - and you can help us out and become a member of the community besides.' Man 21: Okay. Mac: You don't want them to think too hard about it. Man 21: Okay, that makes sense. Mac: So, it's a question of how sophisticated a market place is, and yours is - a $30,000 windfall might be enough to get their attention, and just be satisfied with it, especially with the proposition that it's going to appraise for $20,000 more than they bought it for. IT's a pretty good proposition. Man 21: What were they two comments at the beginning? You said... Mac: Well, that particular phrase; the 'Are we stupid?' Man 21: Right, take that out; but you were saying something else in there. Or just take it out entirely? Mac: Take it out. I don't think it helps or hurts. I mean, I don't think it helps, and I think if you've got directly from your proposition to your opening paragraph, which I think is pretty strong, if I remember. Audience member: Also, question; when you name a specific appraisal firm, whether you've got some sort of inside deal. Mac: Yeah. Man 21: Well, the reason I name them is they're the nation's largest appraisal firm, so... Mac: But why don't you say - can you say that nation's - the question is, does a specific appraisal firm somehow indicate funny business? And the answer is, can you say that firm; the nation's leading appraiser, or... Man 21: I said that, it said that. 'Data-Comp Appraisal, the nation's leading appraiser of manufactured homes.' And that's why we use them, because - you want to take...
Mac: Say major independent appraiser. And use the word independent, so it doesn’t look like you're getting a shell game. Man 21: Major independent; okay. Alright, good. Thank you. Mac: But other than that, sounds like a very powerful proposition in and of itself. But the question of where you deliver this medium; I’d be tempted, given the dynamics of the manufactured home market, to do radio. Not... Man 21: Radio and print. Yeah. Mac: And maybe mail - radio; 'Look for our ad and further information in the paper,' or whatever, so you get a (makes clicking noise). Man 21: Okay, good. Thank you. Woman 5: I'm Juliette Easton. this is an ad that's a middle part of the sales process. Okay, this is an ad that's a middle part of a sales process. They're going to be searching on search engines for the term 'Coral calcium.' They're already going to know what that is. Mac: Coral calcium. Woman 5: Coral calcium. And they're going to be clicking on a fresh ad that we're paying for by Impressions, so we want to have a high clickthrough. That says, 'Is coral calcium safe? Click here now.' Real simple, direct. There's a lot of confusion in the coral calcium industry, so they probably will - a lot of people are looking around a lot. Mac: Have you run than term through the overture search engine? Woman 5: Oh yeah, we're already doing that term... Mac: No, but I mean, have you looked at that? Have you looked at the searches and done yourself? Woman 5: Yeah, oh yeah. Mac: Okay. Overture is a company that sells essentially search engine optimization that you pay per - several different ways of paying, per click through - and you get an optimum position. But they have a very interesting search engine which is open, just if you know how to go into the site, and you can plug in a term and see how many times that term and associated terms were searched for in the last month, worldwide. And it'll give the whole... [inaudible comment from audience member] Yes. And it's terrific. If you want to look and see - I found out some fascinating things that - is fascinating thing.
Audience member: Where is that? Mac: There are several of them, but overture is the biggest seller of those; of search engine optimizations; you know, Google, Yahoo; they get the prime placements, and they have a whole bid system so that you can move yourself up and down the search engine optimization. But they also have this tool ,so you can look at what search terms you want to grab. Woman 5: If you type in 'coral calcium,' it'll show everything that includes coral calcium in there... Mac: Coral - from coral to calcium, probably... Woman 5: It'll show me people searching for that plus a whole bunch of stuff. Mac: So it's very useful. Woman 5: We're not even bidding on coral calcium or Overture too much, because it's too expensive. Mac: Too expensive. Yeah, you really need to do something else. Woman 5: We're doing Impressions on Google, and it's about 35 cents a click through instead of $2.00 or more on Overture. Mac: Yeah. Try to speak into the mike, just for the record, since nobody's here. Woman 5: Okay this is the... Mac: No offense intended. The real hard core’s here only. Nobody's here; that's a stupid thing to say. Woman 5: Okay, this is the copy that'll be on the page they land on after they click the... Mac: Okay. Woman 5: Is coral calcium safe? Safe for you, safe for the environment? Well, that depends on who you ask. Companies that sell marine coral will tell you it is safe for you and the environment. But companies that sell [unclear 2:56] sea coral will explain that mining coral calcium can be damaging to the environment, and possibly your health. So who's telling the truth? Lots of confused people call and ask us that question every day, and they are very grateful when we educate them about the coral calcium industry, cutting through all the self-serving hype. They always thank us for our honesty. We created an educational report - Is coral calcium really
safe? - because we understand your frustration and confusion, and because we know that you want to discover the truth. You just want someone to be honest with you so you can make an informed decision. To receive 'IS coral calcium really safe?' fill out the short form below and you will receive the report in your email box right away. All we ask is that you give us feedback on the report in a few days, because we want to make sure we answer all your questions. Then it's got a form below that says, 'Yes, I'm tired of being confused and I want to know the truth about coral calcium. In exchange for this valuable information, I agree to fill out a brief survey in a few days, with the understanding that you will not contact me again unless I ask.' And then name and email. Mac: What's your goal? What's your business goal here? Woman 5: The goal is for us to reach more people. Right now... Mac: Are you trying to sell something? Woman 5: Oh yeah, we're selling coral calcium. Right now what we're doing is having them go directly to our site that sells the product, but since we're paying per impression, we want to increase out click-throughs and grab people who are not clicking through. So I figure with something that's intriguing - is it safe, with a free report, it's going to grab more right now we got about 15% click-through, which is pretty good, but I want to do this ad in rotating, just to see if we can get a higher - and we're tracking everything with ad tracker, so [unclear 4:44] Mac: Well, it's worth a try. I wonder if your approach is so oblique that it would be very difficult to concert the leads. I can't tell which side you're on, from that copy particularly. That might be good and might be bad. It's certainly worth trying, because of your strategy. But sometimes it's safer not safer, but sometimes it's more effective to go more directly at them. Woman 5: Yeah, just go ahead and have the report on the webpage, do you think? Mac: Well, say you had 'Download it here,' or you have a summary of the report, and you say, 'And here's our recommendations.' And so you just don't - you don't try and three or four-step it, which you have now. Because the thread can get pretty week. That’d be my concern. They're already several layers down, just to find you where you are. It may well be that it's just too deep, too nested, to get...
Woman 5: We could just put the report on the web page; I thought about doing that. Mac: You could do that. The question is, how do you build the affinity between that - you're not taking any opportunity to put a brand up, or even a company brand or - to get that pre-position for coming later, because right now I don't know if I'm going to get something from a research institute, or - I' don't know what's going to come. That might be good - I mean you can try it, see what happens. I mean, they might be open to an oblique approach. Woman 5: [unclear 6:32] something different to test, to see...okay. Mac: Yeah. I don't know if your market is sufficiently sceptical to wonder what's in it for them. And whether or not you need to answer that question, you'd have to - I'd have to try it and see. See if it made a difference. Woman 5: They're pretty confused. We have a lot of people calling that are really, really confused. Mac: Okay, now you can say - you could either disclose a little bit about who you are, I suppose, and see if that helps or hurts. That's the sales proposition. It's an oblique sales proposition, so it's hard to... Woman 5: Thank you. [Inaudible comment from audience member 7:10] Mac: Yeah, I know. That… (Audio missing) Audience Member: raise, most likely want products... Mac: Kind of go - kind of open the proposition at the end. That was my reaction too. He said, they've already had to for coral calcium to get there, and chances are, they want to make a decision, so maybe you could have even a couple of nested pages, like, 'Here's our report, here's our recommendation, here's a special offer,' without making them go back and forth, and back and forth. I agree with you on that. Give them an opportunity at the end of the cycle to buy your recommendation, with risk reversal. [Inaudible comment from audience member 00:39] Okay. Audience Member: Just saying, if you don’t try to make the sale, they're going to back to Overture and click on someone else...[unclear 00:49] Mac: Right, that's right, because it might be too long a thread for them to say - because there's no suggestion you're going to solve the problem; get them product. And I think you - my tendency would be to say -
Woman 5: The free reports goes into a lot of... Mac: And maybe it does, but it's - recommendations and some special offers. I mean, people who are already that committed, want to buy, even if they're confused. They just want somebody to sign off on it. IT's a tricky proposition, but thank you; I do agree with that. Woman 5: I think we'll just put it directly on the site then. Mac: Okay. Maybe we can talk about that later. Audience Member: I was going to suggest something. She might just want to put the opening, 'How would you like to know the facts and stop [unclear 1:33]. Mac: Know the facts and stop the confusion? Great line. That might that's a great line, that's a real clarifier; that's the kind of - when you're looking for a headline, that's kind of what you want - you want to cut through it, get to the benefit. Very nicely phrased. Try that. I would definitely try that. Definitely writing that one down right now. (Laughter) Go ahead, please. Woman 6: My name is Doris Payne and I am going to be targeting this to pre-qualified investors and investors' clubs - local investor's clubs. And it would say, 'Back by popular demand. Investor’s real estate seminar. You will get three full days packed with hands-on, action-based information. And then in bullets it says, 'How to acquire real estate for less, from A to Z. How to protect your assets. How to invest wisely with the latest, most lucrative, financial in the most - in the latest most lucrative financial arena. We will walk you through your first three real estate transactions. It's only $999; nine hundred and ninety-nine dollars. Bring a partner for just $199. The first 50 people to sign up online get the free report of 'What Real Estate Brokers Don't Want You to Know.' Www.creativefinancialsolutions.com. 54324...' Mac: I'd have to go through it in detail. I think you're closing copy actually belongs at the beginning, and the seminar is the fulfilment of the problem - it's the solution to the problem, not - you do a nice job of setting up the benefits, but the seminar and the three days is more compelling after you say what they're going to learn, than it is beforehand. That's my gut reaction; I don't know if anybody else has that. In other words, start with what you're - what's the opening proposition? Go to a free seminar? Woman 6: It's not a free seminar; you get a free report. If you sign up on - the first 50 people to sign up for the seminar online, get a free report.
Mac: Okay. That - okay - and the seminar has the payoff that you mentioned, at the bottom? Is that right? Read it again, because I lost track of the proposition. Woman 6: Sorry. 'Back by popular demand...' Mac: And maybe just because I'm tired. But... Woman 6: Yeah, me too. 'Investors real estate seminar. You will get three full days packed with hands-on...' Mac: Who's 'you?' I think you need to flag... Woman 6: You, the investor. Because it's... Mac: But I think you need to flag that 'you.' You say 'Investors will...' I mean, maybe the way you say it, because I want to know that you know who I am in this particular case. Woman 6: 'Investors will get three full days packed with hands-on, action-based information.' And then in bullets, it says, 'How to acquire real estate for less, from A to Z. How to protect your assets. How to invest wisely in the latest, most lucrative financial arena.' Mac: I don't know what area the real estate investor marketplace you're going for, but if it's more the individual investor, they're more worried about profits and maybe risk avoidance, than they are about investing wisely. Because they're doing fast turnover deals, they're not talking about long-term mutual fund type investing. They're talking about doing flips and everything else. So the words 'wisely,' that doesn't translate to somebody that’s looking for quick profits. Safely, or with limited - with minimum risk, personal risk, or whatever; but in other words, there's - in your benefits...' Woman 6: I said 'lucrative financial arena.' Mac: That's fine, but there was other more prudent words in there, that didn't strike at the core of the value-set of the real estate investor of that type. What's the other one? There was... Woman 6: I said 'how to protect your assets, and how to invest wisely...' Mac: Yeah, I'm not sure that's - I'm not sure protecting assets is - I would investigate whether that's a goal, because they really want to leverage their assets. Woman 6: What we do is seminars where we teach real estate, and then we have another facilitator come in and teaches asset protection; and
then we have another person who is a financial guru and we figured with that arena, we have the target... Mac: Are they buying income properties? Are they buying asset place? Woman 6: We're teaching them how to purchase real estate, but it's the same audience we're also going to be selling to them; it's going to be a different person speaking. Mac: I think you need to get - well, I'm not going to [unclear 4:15] - you need to get closer to - you need to go to some real estate seminars that are some of the real estate biz opportunity seminars, and then some that are the investor seminars; because they don't mix. Those two crowds are not - don't have anywhere near the same psyches. The people who are real real estate investors who are cash flow investors, and that sort of stuff; and who are really asset protection oriented; are absolutely not at all in the same camp with people who are appreciation, flip, business opportunity investors. They just don't have anything in common; you can talk to my find Barney [unclear 4:55], if you can find him here tomorrow. Woman 6: Can I introduce you to some people with our... Mac: Both? In the same room? I can tell you - you can talk to a lot of the real estate guys here; they just don't sit in the same room. Woman 6: Really? Mac: Yeah. I mean, it'd be very hard to appeal to both at the same time. The ones who are interested in rapid appreciation and stuff, or buying cheap and stuff, are generally - they may have some assets, but they're generally not wealthy. They're looking for a high leverage business opportunity; where the other ones are totally different psychologically. Woman 6: So should I maybe not be targeting it to investors...? Mac: I wouldn’t try to force them into the same room. I mean, I 'd go after one or the other, but I think there’s a market - but I think you have to have - my gut feeling; it may wrong; you could try and see how you do with this, because you'll appeal, but if you're talking about prudent investors, that's a whole different mind-set than lucrative investments and high profitability investments. High leverage investments; they're just not - as I said, it's a complex - talk to Barney [unclear 6:11] tomorrow. Woman 6: Barney [unclear]? Mac: Yeah, he's around.
Audience Member: One last thing, when you say buy for less, I would say something like 'buy for less in the market now.' [unclear 6:19] Mac: Yeah. Woman 6: I wasn't sure exactly what to say, because I didn’t want to step on any real estate agents' feet. Mac: That doesn't touch the agents at all. That doesn't cut their - it's a question of what part of the market you're trying to sell to. And whether you're talking to real asset investors or whether you're talking to biz op investors. It's an enormous gulf in the real estate business. But you need to explore that a little more with people who've done it. Woman 6: Okay, great. Audience Member: If people want more information - you're coming to somewhere for more information, does anyone want more information? Mac: Well they want to know whether your system works or not, I guess. Audience Member: But information, you know... Woman 6: We have a targeted market of people, we belong to investor's club and we have people clamouring to us, wanting to know more information, so we provide these seminars, and at the same time, we have people from the seminars that also the asset protection goes hand in hand with obtaining... Mac: And what are you selling in the end? Are you selling...? Woman 6: We're selling information. Mac: No. Are you selling information products? Are you selling service? Woman 6: We're selling the knowledge of how to obtain... Mac: But are you in the end, selling an information package, or are you trying to get transactions as brokers, lawyers - are you essentially using the information as a leader gen? Woman 6: Both. Mac: Because it's a very different business. Yes? Audience Member: I was going ask her. What you might want to do is call some of the people that attended the seminars and ask them what they found of greatest value to them, and then these people are the same people you're marketing to - if you're marketing to the same people - type
of clients, they'll tell you what they found to be the most interesting part of the... Mac: the suggestion is, is she should call some people who have gone to some of the previous seminars and find what they found most valuable, and you could sense the kind of response you got to your program. It's an excellent suggestion. [unclear comment from audience member] Woman 6: We did. And I'll just go back to those and... Mac: And what did they say? Don't know? Woman 6: I wasn't at that one and I'm actually standing in behalf of my husband who must have gone to bed because he's not out here. Mac: Okay. Well, I'm going to try and wrap it up, the last couple of people, so... Woman 6: Okay, thanks. Woman 7: Well, marketing has been a bit of a struggle for me, so here goes. This is for our business development seminar, which we - our target market is small business people. 'Are you a slave to your business? Connect the dots and make your work, work for you. You can learn how to: nail your niche, master your markets, transcend time, maximize management, and leverage leadership. Show stratospheric sales and crush the competition. If you attend the success system that never fails, you will gain strategic and tactical means you need to succeed. Priceless income generating ideas, for only $125, including lunch and materials. If you don't receive dramatic, innovative, profitable result-getting solutions by the end of the day, we'll refund your money. Seating is limited, so call now. 312-9834. Swisher Seminars; connecting the dots.' Mac: Risk reversal? Woman 7: Yeah, if you don't receive dramatic, profitable, innovate resultgetting solutions... Mac: Oh, okay. Woman 7: ...By the end of the day, we'll refund your money. Mac: By the end of the day, okay. Woman 7: I had by the end of the day, you won't pay, but... Mac: What's your goal with this? Woman 7: It's to get people to come to the seminar.
Mac: And then what's your goal beyond that? Woman 7: To back-end sell them probably a consultation package, and maybe some tapes from the event and possibly other products. Mac: Okay. And it's $125? The package? Woman 7: Mmh-hmm. Mac: What size business you target? Woman 7: Self-employed, struggling small business people, who are probably over-worked and understaffed, and don't have a lot of systems in place. Mac: In a way, you should flag that at the beginning. 'Are you selfemployed, struggling with your small business?' I mean, just like you said it, because you really need to market niche it, because businesses cover so many sins... Woman 7: So 'Are you a slave to your business?' is too generic, or...? Mac: It's fine, but... Woman 7: Be more specific. Mac: That's fine, but even before that, you want to set the - you want to do the identifier; you want to flag down exactly who you're talking to. Woman 7: Okay. Mac: so they know you're talking to them, because they know they're not the same as a $3 million drycleaner. Woman 7: Right. Mac: right, so they know they're different, so you've got to - exactly the phrase you used at the beginning, that's the first thing. A lot of big promises there. I mean, you could experiment whether you're better off first of all, the price point; you may find that $49 is a whole lot better than $125; maybe just doesn't allow anybody to come in. You may find that there’s an absolute price point about what people will do, especially if your goal is essentially back-end. Woman 7: Well, we've been pretty successful with this price point so far. Mac: How - selling how? Woman 7: Selling...
Mac: Newspaper? Woman 7: Actually, largely by calling, cold calling and calling contacts... Mac: Oh, well that's good, if you can make that work... Woman 7: With flyers... Mac: Genuinely speaking, something has to be at least that price point to cold-call. But that's - and your numbers are relatively small? Woman 7: We like to have between 25 to 40 people. Mac: And you're able to fill a room by calling? Woman 7: So far. Mac: that's good, that's good. [inaudible comment from audience member 12:42] Yeah, that might be - well, he's right about that. Make it $249 and make it half off, because that's a much more appealing...yeah. The 50%... Woman 7: Yeah, we talked about that earlier, we talked about... Mac: The 50% discount... Woman 7: Like, bring two friends and you come for free, or something like that. Mac: That's good too. Absolutely. That's because you want volume, I guess, on that. Woman 7: Yeah. Mac: Well, those are both excellent things you should integrate. Woman 7: Okay. Mac: You might want to do a little more - might want to be - talk a little bit about experts or whatever, and not just about the benefits about the experts that they'll meet... Woman 7: Okay. Mac: But it sounds pretty solid, and it's a question of getting it in front of the right people, and whether or not the personal sell would take the price point up. If you had to do it in a newspaper, I'd be worried if it were over a hundred. But like, test that. Woman 7: Yeah, it's a consultative selling...
Mac: Yeah, yeah. Woman 7: ...Item. Mac: Well, that's great. It was worth it to wait this long. But I'm sure there's much to talk about later on, but... Man 22: Hi. I'm Robert Jones, I’m a pharmaceutical sales representative, and this... Mac: Independent? Are you working for a...? Man 22: No, I work for Johnson & Johnson. Mac: Uh-huh. Man 22: This is for a book that I want to sell, about helping people get jobs in pharmaceutical sales. Mac: Oh. Man 22: The headline's probably a small classified ad. 'How to launch your career in pharmaceutical sales and earn $40,000 to $70,000 a year, with no resume, no contacts and no science background. High performance pharmaceutical sales professional shows you how to land any pharmaceutical sales job on the planet, with a guaranteed success system. For a free report, call 18888-478-3200, or visit our website at www.exclusivejobs.com.' Mac: Hmm. And what's your business goal with this? Man 22: Initially is to make $1000 a month and then eventually replace my income... Mac: Well, okay, is it to - just to sell the information? Or do you have a seminar proposition underneath it, or do you have a back - do you have an upsell or a back-end? Man 22: IT's to get the person to buy - to get the free report, and then get them to buy my book. Mac: Okay, but you can't - it's pretty unlikely you're going to sell enough books with that approach by itself. If you call the book 'A Special Report,' and you put $150 price - or $100 price on it, or $200 - and add some other - free consulting or something, then you've got a better proposition. Man 22: Okay.
Mac: If the - I wouldn’t give away too much on the front end of that, because there's only a certain amount of secrets, so if you give away too much on that, they'll say, 'Now I know enough.' I personally think you've got a seminar sell. Man 22: Okay. Mac: Rather than a book sell. Man 22: How would you work that? Mac: Pretty much the way you've done it, but I wouldn't - I'd say you can you get a free special report, and personal sessions with...you see, rather than trying to sell books - books are a funny thing. You can make a lot more money selling special reports, than books. You can put a much higher price on them. and a special report - books say - taped seminar; doesn't have that much more cost fulfilment than a book does, but has ten times the value - a hundred times the value. Man 22: Okay. Audience Member: [Unclear 2:33] a report is easier to produce on your own, whereas a book; you don't put hard covers on them, [unclear 2:38] Mac: Yeah, people have expectations of book production; he said. And a special report, you can take down to Staples and get them comb-bound and it looks just fine and everybody thinks it's exclusive, which it is. Because a book is a more commoditized thing; it's a very crazy business, books. Man 22: Okay, so just to kind of rephrase what you're saying. You're saying I should - instead of doing a book, do a special report and then back-end with the seminar, or are you saying... Mac: Yeah, or maybe offer the whole thing up front, as a seminar - or a seminar and a consultation. Man 22: But would I include the price in that? Mac: Maybe, maybe not. Test it, because I think it's - essentially, you're selling a business opportunity, which, if it's properly priced and everything like that, could be 1500 bucks. And you might want to play with - that wouldn't be - if you really delivered, it would be worth 1500 bucks, so I’m not saying - you should test all those things up... Man 22: Right, I understand.
Mac: But it's going to be pretty hard to get the volume you need with just a book. And a book priced - people just won't pay certain - no matter how good the book is, if you put it between the comb-binding and call it a special report, you can get two or three times the money for it. Yeah. It's specially prepared for. I mean, you can do all kinds of stuff; you've got lots of flexibility. Man 22: Okay. Thank you. Mac: Okay? I'll think about that, but...last, but certainly not least. Hello, Michelle. Getting up for the next shift? [Inaudible 4:13] Yeah, well. Yeah, it's the Alamo. Woman 8: My name is Heidi Bear, and I am the founder of Treasure Island Press. '"If you want more harmony, money and unlimited good in your life, employ these prosperity principles now." A quote by Mark Victor Hansen. Got motivation? Studies show that the first hour of your day is the most important in determining your attitude, performance and success. Inspire and motivate yourself, your employees, or your sales team to new heights, by picking an inspirational harmony card each morning, and carrying it with you throughout your day. The front of each card contains a prosperity law in the form of an affirmation, which is explained fully on the back. The harmony cards look like $100 bills and will keep your mind focused on success. Each set of 64 is elegantly packaged in a clear vinyl pouch, with a gold-embossed header card. The Harmony program is simple, effective and easily integrated into your routine. These success principles will transform your life when used on a daily basis. Custom print your company logo on each card, and keep your products or services in the forefront of your client's minds. The harmony cards make a great gift, premium or promotion. To order, call 1800-7950770, or go online to www.prosperitycards.com. Only $19.95 each, shipping is free. Call for special pricing, for custom orders or quantity orders. Order now and get a beautiful wooden prosperity card stand free, to display you daily success message. If not fully satisfied, return within 30 days for a full refund.' Mac: Gut reaction? Too much information on the product, because you give away - it should be something of a surprise, the kit; it strikes me. There's too much clarity at the front-end. You need to sell the promise and the tease of the promise of delivery, rather than the physicals of the product. If you sell the physicals of the product, you go, 'Oh, it's just some cards,' whereas if you sell the magic, they wait - the magic is a surprise, they don't know what it is. In that particular case, specificity hurts. Because - do you understand where I’m getting - coming from? And
because the magic is important - how am I going to get these things? And you say, 'Special technique for harmonizing your house.' 'How to keep yourself self-motivated every day.' But don't give away the secret until they get it, because the price point is - it's not a high price point. In fact, it probably should be higher. But that would be - my general frame on that. Which is, build up the magic and you can use the quote; but don't sell the commodity level of the product. Does that make sense? Woman 8: Yeah. Mac: Okay. Comment? Audience Member: I've just got to say, I think that - I like the bit about the first hour of the day; studies show that that's the most important. So I think you can keep that, and say 'We've evolved a special routine,' or... Mac: I might be more vague actually. I might say, 'There are certain times of the day way productive than others.' Because once you get - in this particular thing, once you get too close to it, you go, 'Oh that's what that is.' And it may not be right, but it's testable, certainly, because first hour of the day is appealing, but you don't want to give away too much of the magic. You want to keep - I don’t' know how you balance that off. I mean, it's a tricky copywriting situation, because you want to suggest the magic. He may be right; that might be something you can give away...yes? Audience Member: I was going to add that, because we're in marketing, we know what 'affirmation' is, but maybe to the lay public, I'm not sure everybody would know what affirmation is. As opposed to really telling them, 'We're going to give you the gift of being inspired.' Mac: Do you have any testimonials? Woman 8: Yeah. Mac: My suggest - my sense is that this is a whole testimonial package and you get a surprise package when you get it. Rather than commoditized harmony cards. Because one is a life-changer and the other is a package of stuff. You want to avoid the package of stuff, my personal sense is. Because it's an emotional product, not a physical product. In essence the feelings, how you get those and the magical parts, and how that fits together, it's much more important than the physicality of cards. Okay? I don't know if anybody else seconds that, but...yes? Audience Member: [Unclear 4:20] you start with something inexpensive and then go up. Mac: Oh yeah.
Audience Member: With this, I would consider not doing that and doing a tape series based on each of these. Go through each of them explaining, going more fully into them, examples and testimonials from people... Mac: And try to sell the whole system. Yeah, I can see that. You could do it -you could test it several different ways, but that's an excellent suggestion; to do a tape set, make it a more expensive - because it's a feelings package. If you had a one-tape intro, that could set up a big tape set. You could play with the permutations on that. But keep in mind that you're selling the feelings, not the physicals. Woman 8: Okay. Thanks. Mac: Oh sure. Thank you. [Inaudible comment from audience member 5:05] Those are -that's - only you would have to work out the discount offer, and certainly time sensitivity's almost always good on an offer, if you can make it believable. [Inaudible comment 5:22] Yeah, that's right; there might be seasonal sensitivity, or you identify other trigger points where people want that in their house, or they want it as gift. There are certainly - I’m sure there are trigger events, trigger moments that would would be worthwhile exploring. Woman 8: Okay, thanks. Mac: Sure. Take care. Thank you everybody. You're real bitter-enders, I really appreciate it. (Applause) Audience Member: Are we going to go through the copy stuff tomorrow? Mac: Yeah, I'll do it independently or whatever, I'll sit down with you guys and...[inaudible 6:13] (Chatter in background then silence to end of audio)
Jay Abraham Mastermind Marketing 13 Rick: We still have a couple of other people but they look like meanders’ out there. So we're going to get started. So you got one more binder coming tomorrow. And I think it's twice as thick. So it's pretty cool, hey? Again, thank you for your patience. The next gentleman is worth the wait. He is President of Sandler Institute of Virginia. Sandler Training Institute of Virginia; and he is an expert on the art and science of consultative selling. I don't know much more than that, but based upon working with him for the last day, he's a really great guy; I think you'll enjoy it. So welcome Andy Miller. (Applause)
Andy: Thanks, Rick. Okay, thank you. Good morning. (Audience replies, 'Good morning') How many -I just want to give a round of applause to the troopers who were here last night at two or two thirty. Where are you guys? Stand up. (Applause and cheering) There's commitment. Round of applause for these guys. Rick: Oh my goodness. Andy: Okay. Just so I can kind of get a feel for who's here and what's going on, how many - where's the Europeans? Folks from Europe? Okay, so I got some of you there. Okay, Central and South America? How many of you folks? Okay. Any hands up, because I'm not seeing them. Okay, any from Asia? Pacific Rim area? Okay. Australia? (Some audience members shout 'Yeah.') Okay, there we go. (Laughter) Alright. Canada? North America, right? I wasn't thinking US and Canada, I was just North America. Okay, here's the reasons why I ask. Because there's three things I want to go through this morning. And we've got 45 minutes, I believe. I've got to quarter after. I want to show you the mind-set of a buyer. What is it that people have to go through and how do they buy? That's the first thing. Second thing I like to do is show you kind of different sales models or methodologies, and I like you to figure out which one are you using. And then the third thing I like to do is I like to show the model that I use, and the mind-set that goes with it. Because if you do the model but you don't have the right mind-set, it won't work. And that really applies to everything, and when I first saw Jay's strategy of pre-eminence, and I saw the model that I was using, I thought, 'There's a perfect fit here.' So what I'd like to do is I'd like to get two volunteers; because I'd like to play a game show called 'Password.' Anybody remember that? (Audience says, 'Oh yeah.') Okay. Or the modern day version I guess is the '$100,000 Pyramid.' So I need two volunteers; can I get them? Okay, so come on up. I don’t know if there are stairs over there? Rick: Yeah. Andy: Okay. By the way, I like to reward people who volunteer so here's 20 bucks for each of you. (Volunteers say 'All right.') All right. See, it pays to volunteer. (Applause and laughter) Okay, what’s your name? Man 1: Peter. Andy: Peter. Okay, Peter, kiss me? Whoa. Man 2: David.
Andy: David. Okay, David. I want you to stand right here, and I want you to face Peter. Peter, I want you to be here. Now, you can't see the monitor, right? Well, you can see that, but you can't see the Power Point? Peter: That's right, yeah. Andy: Okay, we’re going to do a 30 second password. Now, you know how this is played right? You're supposed to give Peter hints. David: Right. Andy: And you can't tell him anything about the actual word itself, but you've got to give him words to make him guess it. David: Okay. Andy: And...Peter you're going to stay straight forward, because...see the password? David: Yeah. Andy: So I’m going to give you 30 seconds and see if we can get Peter to guess, okay? David: Okay. We can use single words? Andy: You got the handheld? Rick: You're going to have to pass that back and forth. Andy: You can only use single words. David: Damn. (Laughter) Market; products; buyer... Peter: Economy? (Laughter) Andy: Help him out, help him out. (Audience shouts out suggestions) Peter: Shop? Marketing? Shop? Selling? David: Used car. My employees. Peter: Business? David: Consultants. Peter: Company? David: People that are here. (Laughter)
Andy: How about - let me help you out. Used car. Polyester. (Laughter) Snake oil. Peter: Salesman. Andy: Ahh, there we go. Okay, round of appolause .Thank you very much. Okay, thank you guys. Appreciated. Okay, is that off? Now, here's the reason we played the game. What was the trigger word, Peter? Peter: Snake oil. Andy: Snake oil, right? Okay, so we started using the nice words. You know, consultants and all those things; but then we started coming up with snake oil, used car - I heard used car over here. It's like, that's got to be it, right? But that's what you have to deal with when you're out there selling, when there is no relationship built. Let me say that again. When there is no relationship built, that's what you have to battle against when you're out there trying to sell. Why? Because there was some bad apple before us who did exactly that. Everybody had one bad sales experience? Okay. So doesn't it make you a little mistrustful, a little gun-shy? So that is what happens. So, what buyers have done is - what they've done is they've put in ways to protect themselves. Whether you're selling to individuals, whether you're selling to corporations, couples; whatever. They've done something - they've put something in place to protect themselves until they figure out whether they can trust you or not. And in the sales world, trust is everything. So, let's go look at the next thing. What is your approach? What I'd like you to do is; I'd like you to write down on a piece of paper, at your table; and I'll have you just spend a few minutes sharing; what is your approach when you're out there selling? What kind of method do you use? And I'm not looking for a particular name, but if you have like, 'Here's our five step selling process, or we use eight steps, or ten or two,' or whatever it is; I'd like you to take just a minute, write down what your model is and we'll see a little later; is your model working for you, or is your model working against you? (Silence from 7:05 - 7:28) Don't worry about writing it out in sentences; if you can just kind of give it - each step like a one or two word...Okay, give you 30 more seconds. (Silence from beginning to 00:09) Okay, everybody got it? Okay. Let me show you three approaches to selling. Some of them are consultative, some of them aren't. If you look up here on the screen at the top left corner. Here's the traditional way of
selling. And in marketing it's called 'canvassing,' where you go out and you're going to present to everybody that you can, right? This typically means you've got one product or service; you're going out and just talking to everybody that you can, because you just got started; you don't have any money, and you're trying to get ramped up. It's not a bad way to work; it works, but you're going to go out and present to everybody; 'Hey this is what I've got. Talk to me. Are you interested?' And then after you present, you've got these stalls and objections; you try to close them. Okay, and sometimes they buy and sometimes we get thrown out, but the whole thing is, if we're doing it right we're going to beat them into submission and eventually close them and get a deal, right? Isn't that the way that it works? And if you've never been trained in selling, that's probably the way you did it. My first sales job; they gave me some brochures, told me to pick up the phone, make some calls, go see some people, and that's the way it happened. Because I didn't know a better way. Then on the right hand side, you've got the traditional consultative way of selling. And that is, you're going to qualify. And when you qualify, you're going to make sure everybody's got their ducks lined up in a row; then you're going to present once you understand what the need is, right? And then the last thing is once you've presented, and you've shown them that you're the best choice, then you're going to close and get an order. Is everybody with me so far? Pretty straight forward. The third way is what of I think of as right in sync with Jay's strategy of pre-eminence, and that is, we're going to qualify, but before we present, we're going to make sure that they're ready to buy. So we're going to qualify first; the close is, you're going to build a plan together; and that's a plan to get to the decision, after they've seen everything that they wanted. So what I've done is I’ve really flip-flopped the two. Now, take a second at your table, and I want you to identify which of these approaches are you using. Because I'm going to set you up for the next slide. So why don't you just take three minutes and go around the table and say, 'Of these three models, this is the one that I'm using.' (Audience chatters 2:29 - end of audio) go over these three models quickly, and then I'll show you the next slide. How many of you discovered you're using the traditional approach? Show of hands. Okay, and again, there's nothing wrong with it; just be aware of where you're at. The traditional consultative approach; how many of you found that one? Okay, good. And the third one, the pre-eminent consultative? Okay.
so just pay attention to where you're at, because here's what I find. When we get to the next slide, some of these - nah, I'll just show you; forget it. I won't even go there; I'll just show it to you. Okay, when I look at a consultative approach, to me it's something we should partner together and I'm even reluctant to use that word because I feel like it's over-used nowadays - but on the left hand side, let me show you the mind-set of a buyer, and what’s the process that they go through when they don't trust you. There's no relationship built. By the way, we're here for a marketing seminar, right? Or a marketing workshop. So when you look at the left hand side, what kind of things do we do to overcome that lack of trust? Yeah, you're educating, right? So you've got your 100 companies that you're going to focus on, you've got your ads that you're writing, and your success stories and all kinds of things, and you're touching them on a regular basis; and the purpose of that is to build trust and relationship before you ever even talk. And that, to me, from a sales perspective, that's part of what marketing does. Now, if you have a really great marketing program, and you can do like, catalogue sales or have people just call you and take the order; great. You don't even need salespeople. But if it's not quite that simple; and you have to put a little bit more into it, and your clients still need to talk to somebody before they're ready to place an order, and they still need to be advised, consulted, sold; however you want to phrase it; then you may want to take a closer look at, is what you're doing not working for you. Before I talk on that, I want to do one more survey. How many of you have a what I call a 'one call close?' You talk with each other, whether it's on the phone or face-to-face, and at the end of the meeting they give you the order? How many of you are one call? Okay, so we have some. How many of you are two; it takes two meetings or two phone calls? How many of you are three? Four? Five? More than five? Okay. So part of understanding what your process should be is, you need to understand, what is the average? How long does it normally take to close somebody? So let's look at the left hand side. When there's no trust built - do most people in most corporations have a policy that they need three bids or proposals or three price quotes? Does that sound foreign to anybody? So here's what happens. There's no relationship or trust built between you and whoever you're talking with. So step number one is; the withhold information. So you may want to write that down. I know this hand-out - is it in your workbook? Oh great. So on the left hand side, you may want to write down, they withhold information. Now, why would they withhold information? Yeah, there’s no trust, right?
How many of them actually say to you, 'Listen, I’ve already decided to buy from your competitor.' 'But our company has this policy that says we need to get three or four quotes. And we'd like you to help us out and just throw us a quote.' Anybody ever get one of those? Okay. How often sir? Too often. (Laughter) At least they're honest. But rarely do you get anybody who calls in and is that straight and honest with you. Fair? So step one is, they withhold information. Step two. Step two is they want free consulting. There's no relationship built, but they want to make sure that the person they are going to give the order to is being honest with them also. So they're going to want to do some things. They're going to want to double-check the information that they've discovered. They may have gotten on the Internet and they've done research. Audience Member: Did you say 'fee' or 'free?' Andy: Free. Free as in no pay. (Laughter) Free. It's kind of like getting in a taxi and driving to the airport, and at the end - it's like the free demo. Telling the taxi driver you didn't like it, and just jumping out of the car and doing a runner. (Laughter) Doesn't work that way - or your doctor or your lawyer or your CPA. So step two is free consulting. F-R-E-E. Free consulting. What do they want from you here? Information. Yeah. Definitely want a price quote. They want brochures, white papers. If you have technical people or a certain kind of expertise and specialists; they want to talk to your specialist. Do they want referrals, testimonials? They might want to talk to some of those folks. They might even want to go see their operations and see how things are working for them. So they want all kinds of information. Now, how are they going to use that? Either against you or against the people that they're going to give the order to. Why? Because they want to tell the people they do want to give the order to that they've got a better quote from you. Or that you've got a better product. It's called - in negotiations, it's called 'cherrypicking.' Cherry-picking; you know, like picking those little hanging fruit, or the cherries off the tree? So they take the best of all the things that they can, and then they go back to the person that they want to give the order to, and they work them over. Anybody here have to negotiate? Anybody here have to - I hate this word, but I’ve got to use it - discount, to get the business? Okay. And that's what happens when you don't find the value. When you don't have a USP. When you don't find out what makes you unique, and do they appreciate your uniqueness or not? And when all things are equal, and there's nothing to
differentiate yourselves, price becomes the only issue; because that is the only differentiator. So step two is, free consulting. Anybody had that happen? Show of hands. Is it fun? (Audience says, No.') No. Step three. Step three is, they delay some more. They delay. They delay making a decision. Because they're not sure what they want to do yet. So they may need to come back for some more free consulting, okay? So they delay, and they tell you things like, 'I haven't talked to my wife yet,' or 'My husband's on a business trip; we haven't discussed this.' Or they may say things like, 'The committee hasn't met; this has been put on the back burner.' What other excuses do you hear? Oh, 'Our budget just got cut.' So you hear all kinds of things, and oh by the way, in step two, this was pretty urgent. Anybody have to stay late at work - I want to say on a Thursday or Friday night; and overnight a package to somebody. Follow-up on Monday. And they didn't even come into the office, or they got it and they're there, but you got them on the phone and they say, 'I didn't have a chance to read it.' Anybody had that experience? Right, and you're going, 'Wait a second. Why did I stay late? Why did I miss my kid's soccer game? To send the people information just to send it to them and find out that they didn't read it.' Right? Am I real world here, or am I being too hard on these guys? (Audience says 'No.') Is this real world? Okay. So that's what happens - step three is; they delay some more. And they give us all kinds of excuses; and these excuses may be totally legit. We don't know. Because there's really no relationship built. Step four; voicemail jail. Prison. Voicemail jail. What happens here? They decide to do something, but we don't know what it is. Now, let’s say they decide to do nothing. Do they call you back and tell you? No. Let's say they decide to go with a competitor. Do they call you back and tell you? No. Let's say they decide to do it themselves. Now, some of you are products they might be able to do themselves, and some of you don't. Let's pretend they do it themselves. Do they call you back and tell you? Let's say they decide they want to give the business to you. Do they call you and tell you? Yeah, sometimes. Or at least they'll take our call and return it, right? So voicemail jail. Now, here's the challenge with that side. This is when - if you look at the top - no trust is built. So the trick is, how do you build enough trust and credibility, so that we can go through a consultative process, because if there's not trust and credibility built and we want to try to do a consultative process, they won't let us do it, will they? So - a
little closer look at this. See the bank down at the bottom right hand corner? In spite of the prospect system - I guess some of you can see it and some of you can't but if you look at it in your hand-outs, there's a bank down at the bottom right hand corner. And if you look at the left hand side, if you go down to 'Prospects system,' you'll still end up getting an order and going to the bank. Fair? Everybody had that happen? It didn't feel good; it didn't feel like it was quite the right way to do it, but you're going, 'You know what, if I push back at all, I'm afraid they won't like me, and people buy from people they like, right. So if I push back they won't like me, and if they don't like me, I won't get the order.' So we go down their path. So I think of this as a dance. Anybody here do couples' dancing? Ballroom, salsa and all that? Okay, so it's still one of the sexist things left in the world, right. (Laughter) Somebody has to lead, and somebody has to follow. And in the consultative sales world, the way that it works is, the salesperson has to lead, but they have to be skilful and graceful enough that the prospect wants to follow. And if they're not, they're going to get pushed over to the left hand side. So here's the way the left hand side works. Anybody here in college or university had a psychology class called 'Rat Lab?' Anybody had Rat Lab? You had a little rat in a little cage, and - you had that? And you taught them reinforcement? Both intermittent and...? Okay. so in Rat Lab, you had this little rat in this cage. And you had this little lever, and the rat learned you push the little lever and you get a little pellet. So the rat hits the lever; he gets a pellet, hits the lever, gets a pellet. So the rat learns, 'Hey, if I’m hungry, hit the lever, get some food.' And now what happens is now that the rat knows the association, now you start to change it, Intermittently. So now what happens is we're learning about intermittent reinforcement, and what that says is, it's a numbers game. If I hit it five times, the pellet might pop out. Seven, twelve, twenty, one, three; you don't know because it's totally random, but if I just sit there and keep pounding on this bar, a pellet's going to pop out. Now, in the sales world, we say, 'That's a numbers game.' You keep pounding on the bar, and eventually an order comes out. Now, here's the challenge on the left hand side. In Vegas, they call that gambling. (Laughter) Right? Drop in a dollar, pull on the slot machine. Drop in a dollar, pull on the slot machine. You get the bells and the whistles and the frequency of the music and all that stuff; and sometimes you get a payoff, and most of the time you don't. And what happens is, if we're used to going down the left hand side, we're conditioned - we're a gambling junkie. That's what happens. We're conditioned on the left hand side, and
when we want to break out of that, the battle we have is not with the prospect, it's with our own head trash. Because it's the mind-set to break out (Audio missing) ..that. That system does work, don't get me wrong. I go down the prospect system, I'll get an order, but here's what happens. If you find yourself incredibly busy, and not having enough time to cover everything, then it's not working for you. If you're brand new in your business, and you just don't have a client-base build up, and you want to go down that - okay you're going out there, you're getting some practice and you'll still make some orders. But be careful on the left hand side. Let me show the right hand side. Right hand side is a trusted advisor. The first thing you have to do is you have to build a relationship. Now, that's what these whole three days are about; how do you - through your marketing efforts, focus and build relationships? So that the relationship is built before you even sit down and talk with somebody, whether it's on the phone or face-to-face. So you've got to build a relationship. At least, from what I've seen, relationship is everything. Without relationship, the rest of the stuff that we try to do doesn’t' work. Step two; we've got to set an agenda for our meeting, whether it's a short five minute phone conversation, or whether it's an hour long or hour and a half long face-to-face meeting. You've got to set an agenda. And there's two agendas that have to happen here. There's their agenda, and there's your agenda. Right? Have you ever showed up at a meeting, or gone on the phone, and your time was cut short? Anybody had that happen? Okay. Who's agenda gets thrown out the window? Ours, right? And so what happens is we walk away from the meeting frustrated because they wanted information from us, but we weren't able to find out how we could help them. So, step two is; we've got to set an agenda. Oh, by the way, let me back up a second. How do you know which side you're on when you're out there talking to somebody? If you're on the prospects, no-trusted side, or if you're on the trusted advisor side; how do you know? What's that? Based upon the rapport, right? Because what happens is, if they have to talk to three or four other folks, somebody they're going to give the order to, and somebody they're not going to give the order to. Now, my grandfather was a farmer out in the mid-West. And he had this little saying that says, 'You don't name your pigs.' Anybody know why? (Laughter) Yeah, you're going to take them to slaughter, right? They're just like, 'Good-bye Wilbur. Good-bye Curly. Good-bye Oinky. Good-bye -' and it's like, no, no; you can't watch your pets go to slaughter. So what happens
is, when you try to build a relationship - you ever had anybody insist on information, but they kept you at arms' length? Guess what? You're the one not getting the order. You're the one with the gunshots in the background heading down to shooting, and you don'[t know it yet. (Laughter) Sorry about that. For the visuals in the room, they're like, 'No.' Okay. So that's what happens, so pay close attention to, how do you treat each other when you start off? I don't necessarily need them to buy from me. All I want is an open and honest conversation that allows me to find out: what are they trying to accomplish, and am I a good fit for them? That's all I want to do; I want to have that kind of conversation, because if I have that kind of conversation, I can find out whether I can serve them properly or not. And if I can't serve them properly, they shouldn't buy from me, and I shouldn't sell to them either, quite frankly. Have you ever walked into a doctor's office and you said to the doctor, or the doctor said, 'Thanks for coming in. Where does it hurt?' And you go, 'I'm not going to tell you.' 'How long has this been going on?' 'Well, a little bit, but you tell me; you're the expert.' Right? What's the doctor going to do for you? Let's pretend you've got spinal meningitis and because you're not telling him anything he says, 'Oh, you've got a little fever, and all that. I'm going to write you a prescription for the flu.' What would happen? You are going to die; you're absolutely going to die. And whose fault is it? Yours. Or the doctor's, because they let you do it. So step one is bonding, step two is; I've got to set an agenda. And it's got to be an agenda for both of us, and by the way, right at this point, if they're not willing to play with me, my motto is kind of 'Let's play fair, let's not play at all.' I want to either work together or let's not work together. But if we can't have an open, honest conversation, I don't even want to get started. Step three. I've got to find out if they have a compelling reason to make a change from the way they're doing it now. Don't get confused between and reason and a compelling reason. I'll give you a story on this. I had a neighbour, years ago, who was engaged and ready to get married. And he and his wife were living together, and her car was kind of getting old and breaking down on a regular basis, and she'd always complain about it, but my neighbour wouldn't do anything. He's like, 'Ah, we'll just fix it.' I love him, but I've got to tell you, he's a little on the cheap side. So Alicia's always complaining, 'Hey, the car's breaking down,' and my neighbour’s going, 'No, no, no, it's okay, we'll just repair it and it'll be fine.'
So did they have a compelling reason to buy a new car? Not yet. I mean, if it was compelling, he would have bought a new car. She had a compelling reason; he didn't. Right? So we got this little tug of war that goes on, and so what happens is, a lot of times when we're out on sales calls, we can't differentiate between a compelling reason and a reason. Everybody with me on that? So you have to pay close attention. Is it compelling? I want to make sure it's compelling. So anyhow, so it's wedding day. She's been complaining, 'I want a new car.' With good reason; it's breaking down on a regular basis. He's cheap, going , 'No, no no, let's defer the costs; we'll get a car later.' Wedding day. She's driving up to her mother's house. Car breaks down. She jumps out of the car - the way she tells the story, she goes, 'I didn’t have much time.' She jumps out of the car, has the wedding dress in her hands, and some lady sees her, pulls to the side of the road, picks her up and drives her 45 minutes out of her way to her mother's house. Nice lady, right? Here's a Chicken Soup story. (Laughter) Alicia gets prepared, comes to the wedding, gets married - you could never tell because she was smiling; she wasn't steamy. But guess what was in the driveway the next day before they left for their honeymoon? (Laughter) A brand new car. Yes, he bought her a car. Did he have a compelling reason? (Laughter and 'Yes.') Yes he did, okay? So don't be confused between a reason and a compelling reason. So step three is, I'm looking for a compelling reason. Step four. I want to talk a little bit to find out from them, what do they think a solution looks like? How do they think they want to fix this? Because I'm trying to find out how they're thinking. And I want to make sure that we're all on the same page. Now, don't get confused. This is not a full blown proposal, depending on the complexity of your sale. You may only have one solution for them, and if they're happy with that, then we can explore it further, but if, philosophically, they aren't in sync with what you have to offer, and how you can fix it for them, then it doesn't make sense to move forward. Because you can't make people buy something that they don't really need or want. So step four is, I've got to make sure from a solutions point of view, however we’re going to cure this; that we're going to match. Step five. Investment. I want to know what they're willing to invest to take care of this problem. This is kind of like when you go to the doctor's office; say you need some - you've got some back pain. Now, we're going to talk about what are our options; that's the solution part. And when you go to the doctor and you have back pain, what kind of options do they give you?
And there are some, right, depending - I mean, chiropractic adjustment. You could do acupuncture; that's another. You could get surgery done. You could do physical therapy. You could take medication. I mean, there's five right there. And now the question is, as the patient, what are you willing to invest in one of the ways you think is going to serve you the best? Now, if you're going to get surgery, how long are you going to take to recover? Right, it's going to take a while. If you want physical therapy, you've got to show up, you've got to book your appointments; you've got to show up, and you've got to do your part at home, because there's exercises and stretches you have to do in between the appointments with the physical therapist. Or for some of us, we just don't want to go through that. It doesn't hurt that bad, so we'd rather just take muscle relaxers and pain killers. So in the investment stage, what we're really looking at is how bad does this hurt, and what are you willing to invest to make your results successful? Everybody with me on that? What are you willing to invest? This isn't how much I'm willing to invest. What is your client willing to invest to make this successful? Oh, let me back up a second. Back up to number three, on the compelling part. Anybody here ever gone to the emergency room before? Show of hands? Okay. How many of you, before you went to the emergency room, did a spread sheet? (Laughter) Anybody do that? You get out the Yellow Pages, Golden Pages or whatever, whatever country you're from; and you get them out and you call up all the hospitals and you try to find out...what? What are your hours of operations, how many doctors do you have, are they board certified, what are your rates, again depending on your insurance plan? Do we ask those kind of questions? No. What do you do when it's time to go to the emergency room? You go. And you don't even worry - you worry about that stuff later. And that's what happens when people have a compelling reason; they don't start asking all these questions. Now, there's some people don't have a compelling reason. And they're somewhere in between. So with those folks, you want to make sure they're receptive enough that they're willing to explore with you. Are they willing to explore with me? Are they receptive? And if they're not receptive, guess what? You're behind the 8-ball; you're going down that shoot again. Okay, does that make sense? Where do we stop off at? We stopped off at investment, right? So the next one is decision. I'm looking for, how are they going to make a decision? If I'm selling to an individual, how is he or she going to make this decision. Those of you who are on a one time call, close kind of thing; you're still
going to have this conversation, but this whole thing is going to go much faster. And those of you who are talking to five, ten, 15, 20 people; you have a very complex sell; this thing's going to get drawn out. So it's going to take a lot of meetings to make this happen, but I still want to know. How are they going to make a decision. What would make them comfortable. One of the beauties of Jay's risk reversal is that takes the risk off of them and helps them get more comfortable to try this. But I still want to know how they're going to figure this out. Especially if they're out there talking to all kinds of people. So that's decision. Last couple of steps. Step seven. We're going to build a plan together. If it's more than a one call close, and we're going to have meet, two, three, five, whatever; we're going to build a plan. And that plan is, how are we going to go through this thing together to get you comfortable to say, 'This is the way I want to go,' or to get you educated that says, 'This is the way I want to go.' Or, for you to have all the data that you need, and realize that I'm not the guy. We're not the company .This isn't the product. Why would I want to do that? Trust. Absolutely. Because what I want to do - in traditional selling, when we played the password game up here. When we talked about used cars, snake oil, sleazy; all that kind of stuff. People don't want the pressure. So my job is to set this up so they feel no pressure. Because I don't want hem feeling pressure. I want an open and honest conversation. Not a pressure-manipulative call. So I want - the purpose of building a plan is, so that we can have an open and honest conversation, and when we get to the end, they can give me a yes, or they can give me a no. And I'm perfectly fine with that; and they feel no pressure to be dishonest with me. Does everybody see what I'm doing there? Years ago, I had an insurance agent come to my house. And he came with one of these table-top flip charts. Had all the leading questions on it. Good questions in terms of getting information out of me, but they were all totally leading, manipulative type questions. And I’m sitting there and I'm watching him. He sets his flip chart down; 'Hey Mr. Miller, how are you today? Thanks for inviting me over to your house.' And he's got this flip chart, and he's going through these leading questions, and I'm just sitting there watching him, going, 'This guy's setting me up for the close.' And so what started happening for the next half hour is, I didn't hear him any of the questions he asked me, because I knew that he was just setting me up to hammer me. It's like Whack-a-Mole, right? Has anyone seen the game; the mole pops up and down comes the hammer? (Laughter) I'm
sitting there going, 'This is Whack-a-Mole; the guy's going to hammer me down in here about 30 minutes.' So that didn't feel right to me. And so I found myself - my defence wall starts going up. I start distancing myself from the guy. I start withholding, not reacting with him at all. Now, was that serving either of us? Not at all; it was a total waste of time. It was a disservice to me and a disservice to him. Now, let's pretend this was his company’s policy. He had to do this cheesy, leading question flip-chart. Let's say that's the way it was. All he had to do was tell me up front. All he had to do was say, 'Andy, I'm going to come meet with you, but I want to warn you about something first. Company has this policy that I've got to use this flip-chart. And it has an advantage and a disadvantage. The advantage is there's good questions on there, so I've got to get information that helps me figure out what's the right thing that I can do for you. The disadvantage is, they're leading questions. And sometimes they're - the thing is to set you up, so at the end you tell me yes. And I want to let you know, if you're not comfortable at the end, you don't have to tell me yes. A no is fine. What I'm more interested in is getting the information and helping you. And at the end of the meeting I'm going to ask you to fill out an application and give me cheque; if you want to move forward. And if you don't want to move forward, it's perfectly fine to tell me you don't want to move forward. What I don't want you to do is feel pressure, and you have to withhold information and that; not have an honest conversation.' That's all he would have had to have done. And guess what would have happened? He would have come in, gone through the same exact thing, using the same exact information and questions, and it would have been a totally different meeting. But he didn't set my expectations. He didn’t let me know that at the end, I could make my own decision versus him taking the hammer and whacking me over the head. So that's why we co-build the plan, right? Everybody's had that happen? That's why we build a plan together. They don't dictate to me how we're going to do it, and I don't dictate to them how we're going to do it. We build the plan together. And then the last step is proof. I'm going to give them whatever they want to see. No more, no less. Has anybody ever been out on a meeting and you fell in love with your product, and there are certain things they were asking for but you told them a whole lot more? Anybody seen that happen? And you talked them out of the sale? (Laughter) Or I don't know if any of you are doing like Power Point
presentations, and somebody only needs to see three slides and you go and you show them 20 slides? But in the proof step, you're just showing them everything that they said they wanted to see, so if you look at this; steps one through six is really just qualification. Steps one through six is just qualification, and what you're doing is extrapolating from them what they say is important to them. And you're just trying to make sure there's a match. And if there's a match, you move forward. And if you can’t give them what they want, or what they're asking for is not in their best interests; and this is why I like the strategy of pre-eminence so well - is everybody familiar with the strategy of pre-eminence? Because it says in there- is it in their workbooks, do you know? Tactical force tomorrow? Okay, so it's in tactical force tomorrow, and Jay will be covering it. Great. Because in there, there’s thing - if we had time I'd pop it up on the screen, but I think the print's too small - there's in there that says, 'You don't sell something to somebody if it doesn't serve them well. Even if they want it and they want to give you the money, you still don't do it. Why? Yeah. And so what I find is, when I look at this process, what I find is if there’s a mind-set that goes with it - well, actually I'll show you this. To be able to be a true consultant, or take a consultative approach, you've got to have three things. You've got to have the beliefs and mind-set that's - to support that. So for example, let's say you're desperate to make a sale. And somebody is willing to give you the money and you're cash flow's a little tight. And you know this isn't in their best interests, but you take it anyhow, right? Anybody had that happen? I'm sure you've not done it but you've probably seen some other sales people who have in the past. (Laughter) And so now what happens is you've got a client, you've took their money, you didn't do what was in their best interests, and guess what? They find out anyhow, don't they? And then it becomes what I call - please excuse my language - the client from hell. And it's our fault, because we did them a disservice. So you've got to have the right beliefs and the right mindset, and that to me is critical. Second thing is you've got to have plans and activities. This is what we're talking about - we've been talking about strategy, we've been talking about ideal client profiles, we've been talking about one hundred clients to focus on; and you're talking about - this really is your strategic objectives and the marketing efforts on the company. And the sales people part is to follow up; prospect and follow up, right?
And then the last part is the skills and the knowledge. And this is a - do you have a sales process to take them through, whichever the three model that you're using. And do you have the tactical skills to be able to pull it off? Because even if you have the right process down, if you don’t' have the questioning techniques developed properly, you can totally butcher the process. I can think of a guy that I taught in my methodology who tactically was phenomenonal. Probably the best I've ever seen, but there's one problem. His intention. And I want you to write this down because it’s; not in the workbook. Your intention is more important than your technique. It's what's in your heart. Your intention is more important than your technique. Because if you have the right intention, people pick up on it, and there's room for forgiveness. But if you just focus on the technique and your intention is wrong, and your technique is perfect; they still know that you're trying to manipulate them. So to me, the skills and the knowledge is really - do you have a sales process, and do you have the proper technique to take them through; but what's in your heart and your mind-set for you to be able to pull it off gracefully, or not to pull it off. Any questions on that? Okay. So, why don't I just open it up for a couple minutes of questions, because I think I’ve got like two minutes, and if anybody has any questions, I'll take them. Any questions? Rick: Go to the mike, please? Andy: You want to go to the mike? Rick: We'll take as many as we can; Jay's on his way down. Man 1: Joe Myer, and my question is; the whole 'how' side of that right hand column, and I mean, I agree with a lot of the -intention; things of that nature, but sometimes when you get out there in the heat of battle, so to speak, you get wrapped up in the tactical side of it, so if you could touch on that, and some of the things to do. Andy: That would take a two day seminar. I'm not trying to avoid the question, it’s just the 'how' part - part of it is a function of bravery and mind set. And bravery, at least bravery I find is - your amount of bravery is equivalent to how full your pipeline is. True? Okay. Real world. So if your pipeline is full, then it's easier to get into the technique side; and like I said, we'd need two days to go over technique, so I wish I could answer that. I don't have the time to do it. If you want to grab me offline - if you give me one or two situations, I'd be happy to talk to you about that.
Man 2: Hi, Bill Shaw. A lot of the time when we are trying to find out what they want and we find it out, but sometimes it's different decision-makers, and they may want something else, or - we can become great friends with the person we're selling to, but they still have to get a confirmation from someone else, where it's strictly price, when they look at the ... Andy: Right. Right, and that step - when we're going over the different steps to go through in that decision step, I have to talk to everybody who is going to touch and even approve this even as a formality. Because if somebody has the right to - or you're going to run it up the chain of command, and somebody has to just bless it as a formality, they really have the right to veto. And if they've got the right to veto, at least - I don't know what your experience is, but my experience is, I have somebody here and here and here; they're usually not all on the same page. And so if I'm over here, I could spend a lot of time and energy trying to help them figure it out, and then they go over here, and those guys go, 'No, that not quite exactly it,' and then tweak it; and then I’ve got to take it up to this person, and this person goes, 'No, that's not what I had in mind,' and then they have to tweak it. So you and I and whoever we work with over here; we all look bad and incompetent. And what I don't want to do is spend time and energy here, unless I know we've got everybody on the same page. So even if it's just a quick 'let's do a 15 minute group conference call, reality check, get on the same page,' I'm happy to work with this person and get it done then, but I've got to make sure we all agree. Man 2: And do that at the first stage, and not at the end when we're giving the price and close? Andy: Yep. Yep. Does that help? Man 2: Okay. Yes. Woman 1: Hi, Barbara Hanson, General Electric Financial. We do something like this too, and I just wondered, the second step; to me, it seemed - set the agenda for the meeting - it just seemed a little bit soon, although I know we do something like that now. If this is the right plan for you, we'll be moving ahead with an application, etc., etc. Is that appropriate that’s exactly what you're talking about, or you're saying, 'Gee, you'd buy this if...' Andy: My agenda - when I talk with somebody on the phone, I ask them, 'What would you like to get out of the phone call, or when we get together, what would you like to get out of the meeting?' And then they tell me. And then I say, 'Okay, can I share with you what I'd like to get out
of the meeting. Here's the things I'd like to cover.' And then I'd discuss; 'Okay, now that I know what you want to cover and what I want to cover, so that we're both prepared, let’s talk about how much time we're going to need to cover that. Are you going to need an hour, half hour?' But whatever you get, honestly, realistically need; if you need an hour and a half, tell them we're going to need an hour and a half to cover that. Then at the end of the meeting, if it makes sense, when we want to go forward, we can do that, or if it doesn't make sense for either one of us, we both have the right to say, 'Thank you very much for your time, but we don't think we have a fit.' Woman 1: Okay. Andy: does that help you? Woman 1: A little bit. I just wonder that they're not going to say, 'Well, I need to think this over.' Like, way at the beginning. Andy: Then if they tell you they need to think it over, what it means is you didn't do a very good job giving them what they needed to know, and they just weren’t comfortable telling you the truth. Woman 1: Yeah. It just seems so early. Andy: Most of the time, they're trying to make some kind of decision. Do we go to the next step or not? I’m not asking them to give me an order, I’m just saying do we go to the next step? And if they want to think it over, they're being kind. They don't want to hurt your feelings. Woman 1: Well, what I have is very complicated material decision, and they sort of - a lot of people just say, 'Well, I’m shopping,' and then all of a sudden, they become committed to shopping before you've had a chance to build much rapport. Andy: Do you hear the squealing in the background? (Laughter) Woman 1: I'm one of the top agents; it's not a problem. Andy: Okay. Woman 1: But it just - I don't know; I just seemed a little quick, and I know I do something like that. We use the Ron Willingham inequity selling model. Andy: Okay, I'm not familiar with it. Woman 1: Oh okay. It's a good model.
Andy: Okay, but what's seems a little quick for you? Woman 1: I don't know, just the way you said it. It said, set the agenda to see if they'll buy or not. It just seems like really quick. Andy: That's not what I said. Woman 1: Oh, okay, I'm sorry, I misunderstood then. Andy: I wondered what you were hearing. I'm not asking them to set an agenda to make a buying decision at the end of the meeting. I'm just asking them to 'Let's have a productive meeting.' Woman 1: Excellent. Andy: Who doesn’t want to have a productive meeting? Don't you hate it when sales people show up and they just waste your time? I want to have a productive meeting, and I want to be prepared for them, and I want them to be prepared for me. Woman 1: Excellent. Andy: But at the end of that meeting, if we decide to go forward, whatever that looks like - you're in real estate? Woman 1: No, long term care insurance. Andy: Long term care insurance. So there's probably a process that they want to go through for them to get comfortable. So at the end of that meeting, if they're comfortable with you, let's talk about what are the steps of the processes they want to go through. And what I'm looking for is, will they be honest with me, and spell it all out? And if part of it is, we want to go talk to four other people, I want them to tell me, 'We want to go talk to four other people.' And then I can work with them on, 'Well, here's the questions you should be asking.' Are you with me? Woman 1: Excellent. Oh, yeah. Okay. Andy: Okay, alright. And I can - nobody else come in line, because otherwise I'm going to go way over my time, so I'll take the three here and the three here and then I'm going to be done. Man 3: Good morning, Mark Anthony, Training Force Success. The question I have is when you spoke about pre-framing what the person was going to see, with the flip chart example; it sounded like you were suggesting to do that on the telephone when you're actually setting the appointment, not doing that when you're sitting down in front of the person; and that just...
Andy: That’s right. Man 3: You don't find that weakens the sales situation too much? What's your thoughts about doing it when you sit down with them rather than way in advance? Andy: You can do it that way. The point of it is to take the pressure off the client. So if you think it's going to serve them and you better to do it over the phone, do it over the phone. If you think it's going to be better face-toface, do it face-to-face. What you don't want to do is not address it, so that the client's feeling pressure at the end. You want the pressure off the client. Man 3: Okay, great. Andy: But if you feel like doing it face-to-face would be better because you could build better relationship, that's fine. Man 3: Exactly. Andy: So you've got to use your best judgement on that. Okay. Over here. Woman 2: Hi, yes. I'm... Andy: I'm only taking three of these microphones, so I'm just going to stop... Rick: Last question. Woman 2: I am in a one-call close type business, and when I'm on a roll, doing exactly what you say to do; and I can be there. I close eight out of nine appointments. My problem is staying in that mind-set week after week. I can stay in it for maybe two weeks in a row, and somehow I lose it. I guess maybe it's personal stress, and my other part's my life or something. But if you could just address staying - how do we stay in that mind-set? Andy: Get a coach. Get a coach who will help keep you accountable and keep pressure on you. That's the best thing I found for me, it’s the only way it works. I need somebody who is basically holding my feet to the fire. Woman 2: But I mean a consultative mind set; that's what I mean. Staying in that pure mind set versus slipping into some of the other - I find that's the most effective way to sell. Andy: Okay, I agree with you. I don't have any silver bullet or magic dust kind of thing. I wish I did, but I can tell you what I do. I’ve got tools that I use, like checklists, debrief forms that I go back over, even now for myself,
keeps me honest. I've got a coach that I use, and then for me I like to do meditation because I like to come from a neutral mind set. I feel like personally I feel like everybody needs some kind of spiritual practice; I don't care what it is, but I think you need something that says, there's other things in life more important than me. Yeah? Rick: Tithe 10% to the Church of Jay. Andy: Oh, they could, 10% to the Church of Jay. (Laughter) They could do that. Woman 2: No, but I mean the regular meditation is great; because I do do meditation but I don't do it regular, and I think you have to keep coming back to the centre; come to your centre. Andy: You've got to grounded. If you want to be consultative, you've got to be grounded and clear, not needy and desperate. Not saying you that you are, but just from my own perspective, for me. Woman 2: Thank you. Andy: Okay, alright, can I have... Man 4: Chris Wray, ICC Business Products. Virtually everybody uses my products; awful lot of voicemail. You got any thoughts on how in the world do you build a relationship with somebody that never - you never get past the voicemail. Andy: Yeah, I'll give you a quick in on voicemail. I think voicemail is like radio spots. You're going to do a 20 second radio spot. See most people when they call and they get voicemail, they just kind of blabber on and usually it's all in the wrong order with the wrong information. 'Hey this is Andy Miller with STI Virginia. I do sales training, here's my phone number.' And do you remember the game show, Name that Tune? And all of us play this with voicemail. You listen to your voicemail and you're going through and you're trying to identify who it is and why they're calling, and if you need to delete it, save it, listen to it, get to it later. Fair? So when you call somebody and you're going to leave them a voicemail, I would encourage you to think of a series of radio spots that you would leave; and you're the DJ. And when you're going to leave a message, forget about who you are and your company and your phone number. Within three or four seconds, you've got to say something that's going to grab their attention. So the message needs to be focused on them, not on you. And if you focus on them, and you pay attention to what’s important to them, what would get their attention. So if you called and said, 'Hey,
this is Andy Miller, you don't know me. The reason I'm calling is...boom. And I'm trying to figure out if you and I should talk about that. Here's my number.' And either say your number twice, or say it slowly; because most people, they go, '7039227160.' And somebody actually left me a message; this is about two months ago, and they got my attention, and I wanted to talk to them, and they said it so fast; and it was on a cell phone, and I switched cells and bleeped out one of the numbers; and I played it back six times, trying to figure it out and I couldn't. My caller ID didn't show it either. And I'm just going, 'I hope they call me back.' And guess what? They never did. Somebody lost an opportunity. Man 4: Okay, thank you. Jay: You guys can see that we can go for hours and days. It tried to coordinate the finest people who I thought bought the finest compliments to what I was all about so that you could take [unclear 8:31] at my word. Show you how to build it, integrate it, really make it complete. I wish we had hours and hours, but I suspect you really made an impact. (Applause) [Unclear 8:44 -8:54]...talk about what I call the phenomena of the group that we had a joint relationship with, because I think if you did, great. But I think people have got to realize that there's two parts to the puzzle, and having the greatest consultative sales ability is great, but if you have no leads to present to, it's a problem. And you probably just addressed something. I believe that voicemail isn’t the worst thing in the world; it's the greatest thing in the world because you're having a progressive dialogue with somebody, and nobody else gets that, and you probably just said that; but I'd like you to mention the phenomenon. I was so fascinated and disappointed with that joint client, because they didn't get that one connection, and you might make that real quickly, and then I want to ask you if you left right now, if they never looked or listened to the tape, if they never, ever again had any contact with you; what is the one most important point you've made in the session you just did that you just passionately and critically, just vitally need them to get, and what's the one thing they’ve got to do with that realization? Andy: The voicemail piece first, okay? You asked me two questions. Some of you may remember the Burma Shave signs along the road...I'm starting to show myself a little bit here. And it was a series of signs, and each sign had a message on it, so as you're driving down the road, you're getting one message and another message. And I think of it as repetitive commercials that build upon each other. So for me, the voicemail, if you
really pay attention to it, you can come up with a series of messages that you want to leave, leave in a proper order, and you do - I don't know if you do one a day, once a week, once every three days; but if you come up with a series of messages to leave them that's important to them, you're going to get their attention. [inaudible comment form audience member 10:45] Yeah... Jay: I would disagree. Can I make a...? I have philosophy and it permeates everything that do; that it's only a matter of time before everybody I want to do business with will. It's like there are five or ten or 20 of you in this room, that are large enough, and it's only a matter of time before we'll have a discussion before you leave about possible joint venture. I haven’t given it enough value yet to be deserving of that; it's only a matter of time before anybody I want to target with a letter, a phone call, a vision; is going to become a partner, a client. And I don’t wait for money to change hands before I start really conveying and contributing value, and if you start thinking about not, 'Oh God, I’m going to get voicemail jail, that's horrible;' if you start thinking, 'Wow, what -' it's almost like the analogy Brian said about the pony and the pony crap. Basically if you say, 'Wow, all these other people are intimidated, they're frustrated, they're leaving some stupid - [unclear 11:43], I'm going to have a sequential - I'm going to take everything I've learned; I'm going to leave messages with headlines, and powerful payoffs and benefits and provocative reasons why, and I'm going to have this progressive, assumptive, conversation, because I know they listen to it. And I'm going to make sure the first 15 or 30 seconds that I leave are so compelling and promise them something so interesting and so valuable and so provocative or so self- serving -' don't you agree? Andy: Agree. Jay: Let's do it. And ask yourself - you don't - I have go more people call me back after the fourth or fifth - Where's David - Is David Spizack in the room? Is David Spizack in the room? Are you here? He was supposed to be. Did he come? Hands up. No? He's somewhere here. He's the guy that I pursued probably incessantly - oh, twenty times by phone calls, emails - it works. It works, it works. But it only works if you believe it attitudinally, you believe it philosophically, you believe it transactionally. And it's not about a static moment - I'm not trying to steal your thunder... Andy: No, you're not. Jay: But - you disagree? Andy: No, not at all.
Jay: It’s not about a static moment, it's like it's nothing. It's about process. Where's the psychiatrist that I thought was a pathologist? (Laughter) Where are you? Did I offend you last - no? You're from a long time ago. Well. I spend $500,000 on therapy. I'm going to save you a half a million dollars, okay. Lay down. Save you half a million bucks. And I'm going to translate it to business. What I learned is that everybody's fixated with the end result. They want to have the biggest house, most cars, or the fastest growing company, or the most beautiful wife, or the most whatever, as a status - achievement. When they think they get it, they think the heavens are going to open up and the birds are going to sing and nirvana will prevail - not the rock group, but a real nirvana. (Laughter) And when they hit that, it's like a [unclear] victory; they don't get anything. The real essence of life and the real essence of business is the process. This conversation that you and I are not quite having verbally is as good as it gets, and if you realize it's a matter of time, but everybody's going to be - everyone that you want to do business with, you actually will if that's your mind-set. And it's a process. You want to make a comment? Andy: I think you're exactly right, and it's funny on voicemail; if I called you up one day and I said, 'Hey, I'm Andy Miller, I sell cars, would you give me a call back?' you're probably not real inspired to do that, unless you need a car. Jay: However... Andy: However, if I called you up and I said, 'I'm Andy Miller with the Virginia State Lottery, you won a million dollars; please call me to collect it,' you'd probably be pretty inspired to call me back. Now, that's just on a one time voicemail. Now, with process...go ahead. Jay: But or even if he called and said, 'I'm Andy Miller with ABC Mercedes Dealership, and we have a lease return here that's got 2,000 miles on it, but it’s $15,000 off, and there's a lease arrangement where you could get it for a little more than a Lexus; and I was told that if an opportunity like this come around, we should at least present it to you,' that might be sort of interesting. Andy: Absolutely. Because now you're not schlepping a car; you're saying, 'Hey, got this thing here, I don't know if you're interested in it or not. If you are, here's some details on it, and call me back. I'd love to help you, if you're interested.' But that's a no pressure message. Jay: We're going to get in tomorrow, and I'd like you to be here, if - with Carl. We’re going to get into a bit of sequential marketing stuff, and unfortunately - apologies for chewing gum; I wasn't planning on talking so
I took it out, but what the heck. If I die, somebody give me the Heimlich if I start choking give me the Heimlich. But one of the things we're going to do today and tomorrow is do a lot of interaction where you give us a scenario, and we don't just talk theoretically, and you'll help us. We'll just take it and we'll bash the issue until we break it down into actual scenario. And I'll try tomorrow - you could help with Donald Moin too - I mean, it's a little bit - I've got a lot of - not counter perspectives, but interesting things where you'll have to see real world application in somebody's actual business scenario, and it'll become evident. But the point for today, in my opinion - I wish you could talk for hours; you'll be around if somebody wants to seek you out. I adore him, I trust him implicitly, and by the way, I've got an opportunity for you to make about $10 million, so talk to me before you leave - serious. (Laughter) Andy: Okay. I'm game. Jay: Okay, but - no seriously, I do. But the ley you should all get from this, in your businesses, whether you're one man or woman or whether you are a company of 10,000 - please stop talking, whoever’s in the back. Please stop talking. If it's my staff, please stop talking. Or shut the door, please. Thank you. If you are an individual, or you are a company of 1,000, everybody in your company that has impact to the buyer should - must be trained in consultative advisory selling. This is not a pitch for Andy; I don't get a dime. I explicitly forbade any speaker from doing anything, but if you can afford somebody like him, I would in a heartbeat - I sent him to one of my clients, and other than the fact the client didn't get that having the greatest consultative saleability is wonderful, but you need leads to sell to first; it's great. You can't afford him, buy a book. Buy Brian Tracy's stuff, get a - not a second-rate, but a localized consultative sales trainer, because you get yourself, you get your staff, you get your receptionist, you get your accounts receivable, you get your tech support, you get your customer-client services. All should be trained because it is the ultimate instant, enduring leverage, and when you're trained, pay extra to record it, to transcribe it, make it mandatory. How many people here are angel investors, or are venture-capitalists, or unintentionally put money in marginal businesses that you end up either losing or having to nurse - okay, hands up. I would never, ever again, put a dime in a business unless $20,000 or $30,000 of the money you put in was used to train - no [unclear 2:55] Andy, but Andy's great - to get consultative sales training from the get-go, because it's going to enhance by two or three times their upside. It's going to reduce your downsides, it's going to make their success - don't you agree?
Andy: Agreed. Jay: I would never - if you're trying to bail one out before they waste - if they have a sales force, before they waste $500,000 - $50,000 on ads make them get consultatively trained in selling. It will immediately, it will enduringly - I have nothing to gain, I don't sell it. It will profoundly and dramatically and wondrously transform your ability. Those of you who are consultants, who are decorators, who are any kind of a service business, get yourself trained. The reason I can get $40,000 a day; the reason that I can get you to let me sit here and chew gum and tell you about [unclear 3:52] about my therapy, is because I have your respect. You trust me to look out for your best interests, which I am doing. You trust me to consult and advise you in what you should be doing, which I am very, very responsibly and respectfully trying to do and husband that responsibly for you. And hopefully i have enough of your trust that if I told you to march, you would march, because it would be in your best interest. Is that not what you want for the rest of the world? Not just for your own economic betterment, but as I'll tell you in a little while; and we talk about the strategy pre-eminence, because it's the best thing for them. Andy, I'm taking you're thunder; I don't mean to. Andy: No, it's fine Jay: I adore you - I think he's got - I'm sorry we didn't have a day with him, but I hope you took great notes and anyway answer that other question about what you want to leave them with. Andy: Yeah, I was thinking about that. Jay: That's the only reason I was talking; to give you thinking time. (Laughter) Andy: To me, you've got to learn some kind of consultative process. That's a must. And the other part of it is your mind-set. It's got to be a mind-set to serve and help people out, but respect yourself at the same time, because I find sometimes from the service side, you forget yourself, but the flip-side of that is, you can't be desperate. Because if you're desperate, even though you have a great consultative approach, if you're desperate, you're going to do the wrong thing by the client. And that's why - kind of scratching your back; not intentionally but it fits - that strategy of pre-eminence, I actually - I went through it; I probably go through that thing probably three, four times a year, and every time I read it I go, 'This is so dead-on.'
Jay: I think we've given you the transcription of it from its original sense, which is really good, because the babbling - one of my most famous babbling hour and a half; but it's quite profound in its content, not that I'm that bright, but because I learned some insights from a company that used it to go from almost nothing to $500 million, and it's pretty cool, isn't it? Andy: Yep. Jay: Pretty cool. It'll transform your strategic thinking, and it'll liberate your spirit, and I'm going to do it sometime in the next two hours. But we have to move on because I'm behind, but thank you from the bottom of my heart and apologies from the bottom of my heart that I can't let you go all day. Andy: No problem. Jay: And Andy is a trooper. (Applause) He was supposed to go on yesterday. Thanks man. Andy: Thank you. Jay: I'm sorry we messed you up so much. Andy: We're cool. We're good. Jay: Louder. Little louder. Piece of music to get our blood flowing, and then we're going to do something cool. (Music plays) Little louder. I don't know. [unclear 6:52] (Music plays until end of audio 8:30]
Jay Abraham Mastermind Marketing 14 Jay: I'm late on something important. Sit down or stay out of the room. Everyone, come on. It wasn’t really a break. It was an energy boost. Anybody ever go to the - what's the place you go for fruit drinks? Not Juice Stop, what's the other place? Jamba Juice; and they give you the free boost? You know what the free boosts are? Am I on? Anybody can hear me? You know what the free boosts are at Jamba Juice? No, not what - I don't mean what is in them, I mean you know that they give you the free boosts whether you want ginseng or [unclear 00:39] or whatever? This was your free boost. But now we got to get on, because I’m late. We're going to do something really cool. Sit down, or stay outside. Shut the doors and tell them to either come in or come out. Now, please. It wasn't really a break. I know you had to - I was trying to invigorate you. Couple of real quick points and then we're going to get into it. You guys are cool, and you guys, I admire you, because this is not easy to stay up
and have your paradigm shifted. I tried to create an environment in three short days for very - by our standards -very modest cause that could transform you not just in a marketing sense but in operationally and implementation sense. I looked at all the reasons why the previous programs that transformed people's mind but they hadn't done as much with it; and I put together a complement of experts with skill sets and methodology and consistent congruency with what I was all about; and ideological and ethical harmony; and the only problem is it's a lot more than an eight to five with easy breaks and easy-going lecture-based dynamic. I had a choice of making it five days and charging you $15,000 or $25,000; and I'm not joking. Or making you struggle through it a little bit, saving you two or three days and cutting about 80% of the cost, and making you a little bit - not uncomfortable, but have to stretch. I'm appreciative for you but you will be appreciative, not for me but for all these wonderful people. The Mac Rosses who go till four - isn't he a bright man; those of you who made it through? (Applause) Those of you that didn’t; aren't you glad that I preserve everything on tape? (Audience says, 'Yes.') Because when you get home and listen to the ad - I don't know what he did but he's like the brightest man - I'm just like, amazed by the scope of intelligence, and he's like no-nonsense tough love Mac; he's a pretty cool guy. All the people I’ve chosen are of that ilk, and they're very wonderful - like Andy was supposed to be on - you ever see the movie Airplane, the original one where they were going to land at the end at Gate 1, 2, 3, 4, - finally 187? Poor Andy was supposed to speak yesterday at one time or another, another; finally he got moved to this, because we wanted it to be fresh and you had to get up. But you can stretch for three days in your life. You'll have the joyous delight of reaping and harvesting the compound benefits for the rest of your business days. So stretch, but I appreciate it. Okay, I'm involved with a really cool group that's got this extraordinary new technology for video conferencing. I've wanted to be involved in video conferencing forever - anybody who's ever been involved in video conferencing knows two things about it. It's always been expensive, and it's always sucked. Somebody goes like this and then on this side it goes slow motion; it's just very daunting and frustrating, and you can do 10 minutes of it and you get a headache. And I was involved with a wonderful group five years ago that were on the cutting edge, and they put ISDN lines in my office, and in my house; and they put video conferencing and every time we would do a meeting I would get a headache; and I'd be doing this and somewhere else the guy would be looking, and I'd see a
slow motion of something that happened four minutes ago. I finally stopped working with them because I got a headache. Well, fast forward. There's one company that is owned by some very brilliant technologists who are really good at technology but aren't as masterful at marketing, and I and a couple of partners are getting really deeply involved, and as an experiment for me and as a way to access a speaker who couldn’t' be here, and as a demo - sort of to you, but more to me, because it was - this technology costs almost nothing, and anybody can do it. It's real-time and it's really cool. It may not be perfect, because we threw it together at the last minute - we’re going to interview for 15 minutes, a speaker who was supposed to be here, in Houston, on the technology. And it may not be perfect because I’m just learning it - we're going to have the - I'm involved in it but I’m so non-technical that we're going to show you how easy it is, and if it screws up it's not my fault, right Bill? (Laughter) So who's our technologist? I knew it. Nick is right here. Nick, tell me what I’m supposed to do. Not a thing. I love that! I'll take ten. (Laughter) So where do I have to be? We're going to have Jacquie Hall somewhere in Houston. Jacquie. Isn't this fun? You see me? You got the sound on? Hold on, this is not perfect, we're fixing it; but Jacquie, can you see me? Jacquie: Yes. Jay: Okay, one second. Do we have the sound? This is a technologist's dream of doing a great demo to 600 people, and having it screw up in the first three seconds. (Laughter) But since we are a seamless and a wellrehearsed - this is just part - we do this on purpose. Right, Jacquie? We set this up, didn't we, for you to lip-sync? She's actually going to do the next song. (Laughter) I'm going to turn the next day into karaoke, is that okay? Are we ready? Because if we're not we'll move on and do it again. Nick, what am I doing wrong? By the way, I've watched this many times; it's cool; but we threw it together here in the hotel, God bless them, he's trying to work for it. But normally, you set it up and it's for companies that want to do all kinds of neat things, or people who want to connect their clients or do programming, and we're going to use it in all kinds of neat ways, and if any of you are interested - this is more for my benefit so I can experience it. And Bill Osmond, who's a partner with me down here; raise your hand. He's standing up; if you guys want to know anything about it - but it's really cool.
Can we hear anything yet? Yes? What do I have to do? Jacquie, say something. Jacquie: Good morning. (Cheering) Jay: Okay, great. Now, I want to do something - can you see me? Jacquie: Yes. Jay: Okay, because I don't know if I’m in the right - does it matter, Nick, where do I face? What's the deal? Where's the mike, where's the video camera? Where’s the camera; anybody know? Okay, is that better? Is that better? Can you see - that? I'm just trying to learn this. Okay, Jacquie, you're where, you're in Houston? Jacquie: Yes, I’m in Houston. Jay: Okay, I want to show them instant - it's real time. Normally, when you do this...it comes out like that....and it looks sort of like an old time movie. Do this for me. (Laughter) Do that for me. Okay, do that for me. (Laughter) Oh, come on, do that for me. Jacquie: (Laughs) Jay: That's not that. Okay, you’re in Houston somewhere. Jacquie: Yes. Jay: You've been listening to this. My apologies but it's been interesting hasn't it? Jacquie: Oh, it's been incredible. Jay: And regrettable you had a change in plans and you were unable to come, but you very graciously allowed yourself to not only be a guinea pig but to let me pick your mind for 15 minutes, and compress and translate what you do for large corporations, into an ideology and a methodology that maybe some of these people here might consider on their own or in some other form, to use. Is that right? Jacquie: That's exactly right. Jay: Okay. Isn't this cool, because it's like real-time. Anybody ever seen video conferencing that screwed up; this is pretty cool, and it's like 60 cents - 90 cents a minute to do; it's really interesting. So you have spent your professional life learning an element of business that I don't think most people understand, and it really is that there is a way to broadly you call it expand the [unclear 8:25]. I'm not using the right words, but
basically - and I'm going to put words in your mouth because I don't want to use 15 minutes; I don't want to make you a star and I want them to get provoked favourably forever. Jacquie has a methodology that goes out and says, 'You guys are dumb trying to basically read the minds of markets. There's too great opportunities. You can go to your own clients and figure out how much more they want in products, services or involvement. You can go to your competitor's clients and figure what they're not getting. You can go to markets that you want to reach and figure what it would take for them to be exhilarated with your company or your product; or you can figure out what it takes to make your team work so much more productively. Am I doing it right, or is that good? Jacquie: That's it. Jay: You want to embellish it? Jacquie: Well, what we do is we help you collect the money that's already on the table. And get the clients you want. And it happens in 60 days. Jay: That's pretty powerful. Now, on the upside, she's done it for companies and bought in as much as a half a billion dollars. The thing we have to talk about, and can I talk about it? It is different for entrepreneurs, so I want to learn the methodology because you do some really cool things that may or may not be appropriate for a smaller company, but I think if you can explain the essence so that everybody can consider it and what they might want to do on their own if they never were large enough to use a service like yours; that would be very, very wonderful. So I'm going to ask you a couple of questions? What's the biggest mistake that you see companies making that your various clients of approaches would really help? And why do you think they make it? Let's start with that kind of a question. Jacquie: The first thing is they do what I did when I started business. I've been in business for 10 years, and I’ve been exactly where you've all been. I’ve had the business from nothing, to growing it. And the big mistake I made was not listening to my clients first. Jay: Not hearing what they're saying. Jacquie: I didn't think about the clients I wanted. Jay: Alright, so - and you also probably didn't think about what the clients you had wanted more of. Is that correct?
Jacquie: That's exactly right, because when you look at the clients that you have, they know at least a hundred other people. And they want to help you, they want to see you succeed; but most of them are never [unclear 1:25]. So they cannot help unless you ask them. Jay: So that's question one. Number two; in the building of your business and the realizing of this gaping hole, what did you realize that the best mechanism was to get that information; to make that discovery, to make that bridge or connection? Jacquie: The first thing that everyone in the audience can do today is talk to someone they do not know about their business. And when I mean talk to them, ask them questions that are open-ended, that let them know about the nuances, the jargon, the undercurrent, what's happening... [unclear 2:09] Jay: Explain open-ended so they get it, and then give us a demo or scenario so they can get it; translate it to some real-world sort of a case study mode. Jacquie: Sure, after [unclear 2:21] today, Jay, the first thing is the question is, 'What are the challenges that you're facing today?' And when you ask people that question, stop and listen. Most entrepreneurs - we just did a project with 70 entrepreneurs for South Western [unclear], and the biggest challenge is that they ask people they already knew. So ask people you don't know. We're asking them questions like 'What are the challenges?' The second question you ask is, 'Ask them to imagine exactly what they want to happen in their business.' Jay: Jacquie, see if you can move the mike - is the mike on you or not? We're getting a little bit of feedback - see if the gentleman there can - is there anybody there that is helping you? Jacquie: Yeah, there’s somebody here. Jay: Tell him it's a little bit of feedback. (Laughter) Isn't this fun? Don't we have fun? Go like this. Real-time. Jacquie: Is that better? Jay: How does it sound? No, I just want to hear every word you're saying, and it's a little bit of microphone feedback. Keep going. Apologies from me. Jacquie: Is that better? So, essentially, the first thing is to look at focusing on customers you don't know, meaning people who don't have a relationship with you/ And the second thing is when you ask them open-
ended questions. The questions are designed to provoke credibility. You know, there's all kinds of questions. An example of one of - provoke credibility is that you could ask them to imagine the future. And imagine how they want their business to be in a year. And ask them what it would look like to them, and what it would mean to them, and then be quiet. Jay: And listen. Jacquie: That's right. The mistake that we see - the reason entrepreneurs will engage us to do this is because they cannot be objective on their business. And the second thing is most of them talk too much. (Laughter) They love what they do. And it's sort of like what my grandfather said: 'You just can't stop talking or arguing with a fencepost.' And if someone’s wanting to grow their business, the biggest challenge is they've got to listen. There’s a reason that it's not growing. There's a reason that it's not working. And the big reason is they don't have the information they need to make a difference. Jay: Good, I like that. So we're sitting here and we're going to go to our existing client or to a hundred people, or just to somebody we don't know, and we're going to tell them about it; we're going to ask them that question. What's another thing - see, Jacquie’s got this incre- I'm going to summarize it for a bit and then we're going to expand. We'll go from macro t micro. She's figured out a really cool way to go to CEO's and get them to help really be interviewed, take the interviews, translate it to a distilled fabric that says to a client, 'Man here's the opportunity.' She's figured out how to take it internally to companies, teams. Figured out 'here's where you're weak or where you're not cooperating.' She's figured out how to go to people who aren’t' dealing with the - or dealing with somebody else and figure what you have to do to get them away from. She's figured out how to find, build more clients. Give us some help, because I want to ask you the right questions. But you know I'm trying to make these people, in 15 minutes, sort of get the mind-set, so if they're too small to ever use a Jacquie Hall, they can run with it, and they can use it internally, externally; to wonderfully transfer their competitor’s clients to them, to get four times more revenue from the people they had. So help me help them. Jacquie: The first thing is for them to get someone else to ask a question, Jay, and it doesn’t have to be the [unclear 1:18], it can be anyone. Jay: Tell them how you do it so they can see, and then translate it; and that's a brilliant idea.
Jacquie: Because what happened is in our business was, I was asking the clients questions, and the problem is they saw me in a certain way. And every time - like my husband says that I open my mouth; it's a marketing opportunity. Jay: Yes. Jacquie: I mean entrepreneurs like what we do, so when you ask questions, what you want to do is ask for advice, not try to sell them anything. Jay: And you believe that a third party doing it on your behalf gets a much more credible - even if it's like somebody you bring on and they say, 'I'm the research service that they hired,' or 'I'm an independent and they want to get some feedback.' or anything. and you do it in a much more sophisticated way, but you're just saying, put an intermediary there that has respect, professionalism and independence, because that creates a hell of lot greater relationship, right. Jacquie: Well, what it does is it raises your whole end company in the mind of the client. Jay: Great point. Jacquie: Meaning that you care enough about them, about your business, and you're professional enough to get someone else to ask advice. You're not asking advice just to sell something. Jay: Good. Okay. Jacquie: And the truth is, to fundamentally change, you have to find out what the client wants. Jay: Do they know? Jacquie: You can't do what you want to sell them, no matter if you're selling bottom-ends or insurance or whatever. It has to be what they want. People will do anything for what they want. That’s the essence of our work. Not what they need. Jay: But Jacquie, how do they - how do you - not necessarily you, but how does a company, how does somebody here in this audience, through an intermediary that they create or hire; how do they find out what somebody wants if somebody doesn't know it themselves? Are those the questions you indicated, or is there another means? Jacquie: Yes, and what you do; one of the keys to our work; we learned this from a gentleman called Hank Moore, that started the Civil Rights
Movement. And he worked for Johnson, and what they did, they did a grass-roots uprising. It's just like that book, Malcolm Gladwell's book, the Tipping Point. And if you get to the people who are key community leaders in a community, for example, I heard one of the people ask a question about long-term health insurance. [Unclear 3:42] that's your product or service.
If you're selling that, find out who are the key leaders in aging, in populations where people would buy that insurance. Who are the people that make decisions? Meaning that it probably is somebody who serves on the board and Centre for Aging, someone who serves on a local hospital board, someone who's involved in a non-profit organization, and those lists are all on the Internet; they're public knowledge, you can build them yourself. And I encourage my friends and clients to do that; to start to think about their business through the connections that it has. The next thing that you do; once you build a list is send them a letter and a gift, and the letter [unclear 4:29] has power. Jay: Who's it emanating from? Is it emanating from you, this company here, or is it emanating from the intermediary? Jacquie: It's emanating from the company. Jay: Okay. Jacquie: And the letter should be written by another person, because if you write the letter, Jay, you can't help the sales things in it. Marketing things in it. You've got to put things - well you're saying, 'Dear Community Leader, I'm asking for your advice. I know we can change, I know we can do more for the world and I want you to talk to these people when they call you.' And always include some small gift under $5. Jay: Okay, but that does three things. It acknowledges them, it engages the psychology of reciprocity, and it creates a respectful feeling on their part that, 'Wow, somebody really wants me to give them a perspective,' right? Jacquie: That's right, and you've got to stick to asking for advice. We have taught entrepreneurs how to do this process, and the biggest challenge they have is if they call this prospective client, they're trying to close them on the phone, or sell them. And this process is really a way to reposition your entire company. Jay: But it's slow and methodical, very strategic; takes time.
Jacquie: Yes, it does. And the bottom line is, this can make two to three hundred percent more effective. If you find out you're selling what people want, and it's a real key to connecting people who want you. Jay: Now, so what are some of the - because I - you've got something really cool, and we talked about it. Most entrepreneurs have to do it themselves because they're too small or they're too instant gratificationoriented to use a big service like yours, but if they go out and they go to the community leaders - if they go and they go to their own clients, if they go out and they go the clients of other competitors; if they go internal and try to figure out applications from their own team; give me three or four guideposts for doing that. Jacquie: The first thing is to say, 'I'm asking for advice,' and mean it. Meaning that the questions are designed to evoke credibility on your part. So you're asking the person to imagine a future where you're in that future. If you place yourself in the future of the team, of your client, it's on. So the first thing is to position yourself as a person who’s asking for advice, and you look at if you're in the future of that person. So you ask questions about imagining the future; what's happening in your industry? What are the trends you're seeing? And you ask them - the second thing is to ask them a very clear question of, 'What do you think I should do?' And listen. And what you can't do is tell them why that won't work. You have to... Jay: Don't discriminate. Don't be judgemental. Just be very open and very eager and very genuinely interested, right? Jacquie: That's right, and the third thing is the reason you want a third party, even if - I recommend you talk to people who don't know you. You call them up and you go to community leaders, in the community where you have your business, and you tell them, 'I know you're a community leader; I'd like you to serve on a board we're looking at this industry and the community, and I want to look at different ways that we can change to make economic development happen here.' Because that's what entrepreneurs do; we make jobs, we create money, and we give back things to our communities where we work. And so when you go and you rom - when you ask them to come in and give you advice in your office. And these are people you've never met. Jay: What happens when you do that? Jacquie: It's amazing. You will be astounded at the willingness of people to help you and give you advice. If you truly are open. Some of my clients - I can't allow them to meet the people that they're getting advice from,
because we worked with one entrepreneur and she said, 'If I meet them, I’m going to tell them how it's done, why it won't work; I've been doing this for 25 years, I know my business; they don't know it.' And she said, 'But it's not working anymore.' I said, 'This is the only way to do it, because you need a viewpoint from someone who is connected to the people that will give you business. Meaning that - her business is - her [unclear 9:00] business is in the moving business, and she moves very complicated organizations so, she's a very small company, she's around 800,000 in sales; she wants to grow to $2 million; she has her family in the business, and what we did for her is bring together a team of advisors, and we told here the only way she could be there is to never say the word 'but.' To only say the word 'and.' And she did, and it was marvellous, and her business has tripled this year.
Jay: So, it's great. Give me a real scenario, even if it's at a much loftier level, so the people here can grasp the impact of this process; doing it themselves, going to a company like yours. Whatever it is - and again, the truth of the matter is, Jacquie knows most of you are not even prospects for the two reasons - too small and also too short-term oriented in results; but help give me an incredible example of the best application of this because I’m on a timeline; it's not your fault. You're being gracious as heck. Give me two quick ones and then give me a couple of pieces of recommended action steps they could do for getting their team more productive, getting their existing clients more profitable for them by expanding product services; and opening up markets from the people they aren't serving right now - competitors, clients and otherwise. Okay? Jacquie: Okay. Jay: Go for it. Jacquie: Here we go. We have a client that, they were making a decision: do they shut down the business, pump money into it with investors, or sell it. And they didn't know what to do, so they brought us in, they said, 'Help us answer these three questions one way or the other.' And so what we did for them is look at the community leaders that were attached to their business; their organization. And we were very able - able to sign people who wanted to help them, who believed in them, because the one thing that we knew is their clients - and it was also in health care, so their patients loved them. They valued the service, they just didn’t pay them. That was a bit of a problem. (Laughter)
So what we found out is that the community valued what they did; they just didn't know how it could benefit their organization and help them, and there was certain things they wanted. So what we did is we talked to community leaders, we were able to find out that people wanted to help them, they believed in them, and we found out particularly what they had to do. And what they had to do is to develop a real simple unique selling proposition to explain what they did... Jay: So they were appreciated more and valued more by the market place? Jacquie: And by themselves, Jay. I think that was the big a-ha for them; they found out... Jay: They didn't revere themselves. Jacquie: They just weren't a group of losers in a business that was losing money. If - they were people that the community depended on them to do well, and they were people that their employees believed in. And all they had to do was make a five degree shift, and the shift was partnered with people they saw as their competitors.. And that was the big home-run for them. They started to partner with people they had competed against, and were able to work with them so they could provide more services to their client. And what happened is we recommended that they put $11 million into the business. They did; it made money, it tripled revenue in six months, and the reason they were able to get the contract is because we helped them find a simple way to explain the value, and a big value for them was in a service that was called disease management. It's just a new service that everyone wanted, that they didn't even know anyone cared about. Jay: No, question. But what you're saying is by picking the minds, by getting clarity, by getting the actual verbiage from the people you interviewed, you were able to build a way to re-articulate to the market, but also to demonstrate to the client, 'Hey, you guys have so much more value, that you don't even revere yourself.' Is that correct? Jacquie: And that's what I’ve learned from you, Jay. And that's what I believe that our clients... Jay: But we've talked about your own practice, and that you don't revere I mean, you do now, but we've - the nice thing about my relationship with everybody is we’re very candid, and that helps everybody learn. Jacquie; we've talked about your practice and I’ve shown here that she doesn't necessarily revere the implication, and until and unless she does, she
won't get the clients through, right? And now you've started doing it, it's made a profound difference, hasn't it? Jacquie: Yeah, that's why I couldn't be there this week. Jay: Because these are really, really, really cooking, aren't they? Jacquie: They are. Jay: So give me another scenario. Jacquie: Another scenario is a small business, so one person business, and he helped give award and appreciation gifts, and he has them designed by artists, and they're beautiful. He's done some work for a new stadium here, and very beautiful service awards for a wide variety of construction companies. I think Zachary Engineering was one of them. And his name is Tom Ferguson, and Tom and I talked about it, and he said, 'Jacquie, I can’t keep doing this, you know. My family is losing faith in me, I’m losing confidence. Would you just help me?' And so what we did is I said,' I'd be willing to do a test with you, if you would help yourself.' And he said he would. So what we did is we developed a list of 50 people, and we had a methodology of research where we're looking for a connection. Who knows who, and who serves on boards? So when we talk to them, we want them to talk to each other about Tom Ferguson. And they did. And what happened is he was able to change his client base completely. And that was a huge shift for him. He kept trying to make high-level executives talk to him, and it was the directors that had multi-million dollar budgets that would give it to him. And he was trying to make these people that would never see him, talk to him. Jay: So what did you find out, and what did you do? Jacquie: What I found out is he was calling too high in organizations. We found out that directors wanted to do business with him, and we found out that a lot of these people valued art. That many people he had called on, they valued his emotional connection to the employees and to the community, because they saw the art as more of a connection, and that it wasn't like giving someone an award, or giving someone a gift. He developed a group of beautiful service pens for a funeral home organization.... Jay: But it was a permanent expression of that funeral home in the community, right? Jacquie: That's right.
Jay: Very smart. Jacquie: When he did that, he struck at the heart. And what he saw are the nuances. It was the little things that he was leaving out. For example, he had artist's [unclear 15:49] all these beautiful pen and ink drawings of the work and all these sketches. And what he did is with the sketches, he just threw them away or just kept them in his file cabinet, and I asked him, to frame them and give them to his clients, and he did. And they were just so thrilled to be part of the process. And what happened... Jay: Yesterday... Jacquie: His revenue doubled. Because he started talking to directors, not wasting his time, he's much happier and his whole viewpoint of himself has changed. Jay: That's wonderful. Give me - yesterday, Brian Tracy opened, and he had all these cryptic overhead Mylar notes, and he threw them down and someone - who's the one who came and wanted them? No it was smart, she said, 'I want to frame them, put them up.' And very insightful because you’re showing people connections that were so - it's like the forest and the trees. give me one more, then I'll ask you three questions and let you go on to your husband or whatever you're doing. Go ahead. Jacquie: Thanks. But the last - a client that had so many books on the shelf, they had hired a lot of people to help them in the business, and all the people they'd hired had never really helped them; they just written books, written reports. The difference in a consultant and an advisor; the consultant writes reports, the advisor gives you data and information. And so he said, 'I don't want an advisor, I don't want a consultant, i just want some help.' and he said, 'What we're doing - we can't get everyone to work together, and what can we do to make that happen?' And so what we did is we found 50 customers all over, that they could work with. They were all over the globe. And for entrepreneurs, what we don't realize is that business is happening in China, in Russia, that we could have multi-nationals that would sponsor us to work with people all over the globe. We just did a project in Russia, and we never flew to Russia; we got a local partner to help us, and it's not complicated. And it's what people want to do. And what we did for them is show them what these clients value. So when we talked to the clients, it was the nuance, it was just the ripple effect of what was happening in the market. What was happening in the market is that the customers wanted people who spoke their language, who are local, who could help them. And the other thing
the customers wanted is for them to work together. They didn't want to have different people calling them from different divisions. You're even - as entrepreneurs, even if you have different people in your shop, you might have two or three people calling them the same client. What the clients wanted is a one to one connection and they wanted that person to represent that company. They wanted a human touch. And right now, from our research, what we've found is this is so significant, people want the human touch, they want the element of connection, and of caring. And so what we did for them is show them how they could do it quickly, and they did. And all they did is just told the client - they called the client up and they said, 'We'll listen to you,' and they called the client the key to it is quick action. And that's the first recommendation I'll make, Jay, is quick action. What this client did, is we did our work; we talked to 50 people and we had in depth discussions with them, and what happened is that day, we presented the result to the client. At the meeting, he picked up the phone and - Jay [unclear 1:06] was the guy's name. He called immediately and made and appointment. Jay: What happened? Jacquie: So what happened is - he got a huge order; an order four times bigger than he normally would get. Because he said, 'I listened to you, the [unclear 1:21] said we needed to do this, and I want to do whatever you want that'll work for you. And I'm listening.' And the client said, 'Well, it's finally time.' Jay: Good. Two, three- because you're being gracious because I was only going to do 15 minutes, and I’m so far behind that everyone's going to probably throw rotten eggs at me. Give me four, five, three; action coefficients that these people - if you never talk to them again, if they never would ever - they're too small, or too short-term oriented; they're not right for you, but your job right now is to forever transform how they look at theor relationship with their; a: existing clients; b: competitor's clients; c: markets they're not tapping; d: own staff. What would you tell them to absolutely do? Not think about, but do? Jacquie: The first thing is right now, in front of you, you have a piece of paper. Make a list of all the qualities of the perfect client. Second thing is look at what makes that client tick. And what makes you tick? Why do you get out of bed in the morning? And you can find more about this from a book called 'Attracting Perfect Customers' by Stacey Hall and Jan Brogniez. They're two women that I helped start their business. And it's
beautiful model; it's got a strategic attraction plan. then what you look it is what can the customers expect of you, or clients expect from you. And then the last thing is to look at where is there room for improvement? So when you do that strategic attraction plan, you get real clear on the client you want. And the next thing is to build a list of them, and you can do it yourself or have someone do it for you... Jay: Of prospects - of quality prospects. And that's very much like Chet's dream 100. Jacquie: Right. People that don't know you, and you're not doing business with; because you can get information from them that's totally unbiased. And so you have your - you're clear on who the perfect customer is; you're clear on your list; and the third thing is, on that list, check for connections. You want people who serve on community boards, and I'd recommend that every entrepreneur get on some non-profit board. Just that. Jay: Why? Tell them why, because all these people are independent islands that don't have time for anything in the community. Why is it important? Jacquie: The biggest client we ever got - we got a $3.6 million contract by doing $5,000 of free work. Jay: For a community? Jacquie: For a community that served - it was something that was perfect for me, because my heart is with a lot of the immigrants that are here. There are a lot of immigrants from Mexico here, and their kids don’t' go to school, and they don't get any help because they can't ask questions. So we did - I served on a non-profit group. I didn’t' join the board, I just said 'I want to come in and do free work for you. What can I do? And let me help your board.' Jay: And tell them the level of people you start immediately associating with. Jacquie: Well, it changes your world, because all of a sudden, it's the person you've always dreamed of getting an appointment with - research the board. I went to the ones I knew were people I wanted to do business with, served on the board. And I asked the executive director if I could help them, and I didn't sell; I just helped them, and I said, 'The only thing I want in return is a presentation to the board.' And I made sure the presentation was on, so the third thing is join a community board. Not because it's good for your soul; it is good for your soul, the right thing to
do. It's just really good business. And if you look at the people who you're building on this list, you want generous clients. Because generous clients give you referrals, and they care about you and they treat you right. And the fourth thing is to follow your gut, your instinct, your intuition; whatever it's called. This week, we have just been through all kinds of stuff, because for one time I didn't follow my instincts. I mean, I can tell you that the times in my business that have thrived the most is when I followed my gut and followed my instinct. And I took the clients I want. And I did business with the people I cared about. Because then I could give my heart and soul. Jay: And that you knew you could help the most. The ones you knew you could help the best. Good. Jacquie: Yeah, because it's not only you can help the best, it's the people that you know that you can literally take energy from other things that you're doing, and make a difference for them. Jay: Good point. And you can't do all things to all people and you'll learn. Here we have a couple of people who are frustrated with this process, and we respect them, but I said if I play to them, I'd steal from everybody else, and that's to your disadvantage. And you've got to know what you want and what you don't and what you can give and what you can't; and you've got to draw the line. One last summary. If they only get one overriding insight, thought; big haunting revelation form your last 20 or 30 minutes, what is it? Jacquie: First, it is sell to the people that you want to sell to. Work with the clients you want to work with, and give them what they want, not what you think they need. Jay: Good. Jacquie: That's it. Because many people need a lot of things. You may think they need it. But find out what they want. And when you satisfy what they want, it's on. Jay: You're great. You're gracious; thank you, appreciate it. Have a great day, and you're wonderful. (Applause) Thanks a lot. Jacquie: That's okay. [Unclear 6:45] Jay: Wait, wait. Okay. Thank you. So isn't that interesting? That technology - I mean, again, Bill; with all due respect, I’ve never - I’m about as technological feeble; we've never done it before, she's never done it before. But it's cool because the technology has three different ports you
can do. You can do internet Power Points, you can do infrared and you can control - if I knew what I was doing I could control the video, I can control CD-ROM; I can control all kinds of things. It's really cool isn't it? And also, you didn't see it well, because we got lights up, but isn't that cool? If you have any questions, Bill and I are involved in it, but it was more for my benefit. We're going to do Bob Allen tomorrow and try it. Anyhow, that was pretty interesting wasn’t it? Good. Okay. A question; because I was thinking about - I have - I feel like Martin Luther Abraham. A have a vision, and the vision is to get you this incredible, integrated breakthrough, and I need to do it by layering lots of different people, and I need to also get you into my stuff. But the truth of the matter is, my stuff is so repetitively layered; and all the stuff I sent you, and all the stuff I gave you here; that I’m going to do as much as I need to. But do you understand I'm trying; I've got three days of my life, and I've got twelve 90 minute phone calls with you to transform you, so I'm trying to – (Audio missing) what I think is going to help you, and just sort of bust wide open your paradigm, and I hope you're with me on the process. Yes? (Audience says, 'Yes.') And we might go late, and we might change people, and just work with me. So how many of you - and I know you went - those of you that were up for the challenge went until one or two. How many did Mac stay last night? Is he an animal? He's pretty amazing, isn't he? Have you ever seen a mind with that knowledge? And that intensity? And that - he's like - he calls a spade a spade. He's like 'Okay guys, that's crap. Arrgh!' He reminds me of Winston Churchill’s angry brother who they locked up and let loose just to come to seminars. (Laughter) He's the brightest guy I know; he's got a knowledge base that isn't from this world. I don't know where he got it, but he understands everything, from business to philosophy, to - you name it; he's really a masterful man. Who got and read one of the book analysis? Most of you? And are you at the right tables? Here's the concept. One of the things I try to do, and I'm trying to now, and why I want you to move around; is I want you to see the world from everyone else's perspective. That's what the key to growth and breakthroughs is all about. I urge those of you who have a predisposition to sit in the front of the room, to force yourself to sit in the back. People who like to be in this corner for whatever knowing or unknowing reason, to sit in that corner diagonally, because it'll give you a different context and a different perspective on the world. I sound like my voice is going up and down. Can you turn me up just a little bit? I don't want to raise my voice and go whatever by the end of the
week. So we used to give out - at longer programs, when I was doing more of it, I would give out - I would figure out whatever you love, and whatever you love - I could say you loved macho things and you loathed feminine things, and I'd go out and buy magazines and books - over 500 books, and we'd give - if this gentleman liked exercise and rifles and - I would go out and get macro-made book for him, and maybe Cooking Today, and make him go one evening and read two chapters, and make him come back the next day and report to his table, the one most interesting insight he got that he never would have thought about. Because I want you to understand how many different ways people see life. We have, as a service, and again, I think it's important to you and I pummelled my partners, Marshall Thurber and Edward Neil to let me do it. Marshall is brilliant - also, Marshall where are you? He has great - anybody see Marshall last night in the corner? Marshall, God bless him - I got these wonderful friends, allies, partners from around the world, [unclear 2:48] here, they will come. I don't even pay them; they pay their own way. Marshall was in Singapore two days ago, but he needed to be here so he didn't sleep for 40 hours to get here. He got here; he was sitting in the back talking, and I think he got a little tired. But the truth of the matter is, he’s been working on this skit for about a week. He used to be a mime and he thought, 'What would happen if I lay down in the foetal position for three hours; will anybody notice?' Right, Marshall? It was hard to hold that position wasn't it? (Laughter) Marshall happens to have a 400 IQ and be one of the brightest men I've ever met in my life; and he and Mac together would be a formidable team; but Marshall reads 40 books a month. 40 books a month; for his clients. He's got Fortune 500 clients around the world and global 1000 clients, and he summarizes the most important universal book for that client, and he does these really - analysis that I'm now on the team with him and Edwin. Then they get the author, and they probe and penetrate and interview the heck of him. We've taken the 30 or so books that Marshall has done this with, which has the equivalent of about 40 - about 15 or 1600 books you would have read; and Marshall analyzed them and put the analysis in a CD-ROM for you. But we've taken four of them that we wanted you to read last night, because we wanted to see if you get out of them as much as we think you will, because Marshall and I are going to start doing an interview service with people and doing an interaction. We'll talk about it tomorrow or the next day if it resonates to you, but we want to see what you got out of it what you didn’t, what you got out of it that you didn’t.
So for 10 minutes - for 15 minutes, I want to go around the tables, and I want each of you that read the book to summarize the big insight; not everything you got; the big single insight you got from it, and what you see the action or implementation, or change it means to your business; and then I want you to pick one person, and then we're going to go to the mikes. But when you go to the mikes, for expediency, you are the emissary, you are the ambassador, you are the representative of your table. So your business is only tangential; you want to make now the big explanation of an insight that will be relevant to everyone. So we'll take 15 minutes max. Each of you that read the book, go around the room, and tell about it. If you get done earlier because all of you didn't read it, raise your hand so I can accelerate it, because I’m on a timeline that behind on, and I’ve got to catch up. So 15 minutes and let me know. Okay, alright. (Whistles) Vote. Excuse me. Shelby, get someone to get me a some more sparkling - I want a hot coffee, black. Okay, everyone vote. When you got it, raise your hand. When you got a - okay, you go to a mike. This table go to mike. Who's got a vote from the table? Come on, that table back there go to a mike. You guys go to a mike. Go to a mike. I’m not going to be able to do all of you. Go to the mike; we'll do as many as we can. Can you bring me my green stuff too. Michael Saber, where are you? Michael, are you here? Michael, I need some green stuff. Thanks Albert. If you can find Michael, I lost my green stuff. Thanks. (General chatter) Okay, stop. Everyone. (Whistles) Stop. My voice is leaving. Stop. Nobody else go to the mike, if this - I won't be able to do all you. But you guys have a winner, and that's good. Stop, please. If I have to yell then I won't be able to talk anymore for the next few days. Excuse me. Quick, we don't need to know your business, or anything else, because I want to get as many people. Just what's the biggest insight from your table, and the action that is evident in it; and what's the book. Go ahead, sir. Man 1: Yes. The title of our book is 'Identity is Destiny.' And the group has shared common themes that come very eminently from the book; that personal integrity and accountability is a way of life for you, regardless of what you do. And if you're a salesperson representing your company, these values must come across to the client or the customer, that you are sincere, that you are not pushy, that these values - your personal integrity and accountability is the pre-dominant factor, and therefore if you respect your customer and you believe in yourself, believe that you can buy your own services, and you can pay for them; I think the customer will see that
you are sincere, will be willing to dialogue with you and engage your services. Jay: Great, thank you. Now first of all, before I even go any further, was it interesting to see how many different perspectives people got from reading the same thing? Pretty interesting. You see what I’m trying to clearly demonstrate? You've got to travel outside your own limited mind and min-set if you really want to grow an inch in your breakthroughs. Thank you. Quick as can, but it's clear. Man 2: Peter Cooperman. The book we read was 'Weird Ideas that Work.' And the insight that we got, yesterday Chet Holmes talked about an emerging company establishing the three P's; policy, planning and procedure. What we got from this book is maybe that works in going from $1 million to $10 million, or $10 million to $50 million, but to get from when you have an established company, to a billion dollars, you actually have to do the opposite. You have to spend the percentage of your time or resources - 15-20% challenging the three P's, so that you take yourself out of your comfort zone and try weird ideas that work. That's the idea that we got. Jay: Thank you. Sir? Man 3: The book that we have, it was 'The Experience Economy,' by Joseph Pine II and James H. Gilmore. And I basically, I think we can summarize it in three words. And that is 'Everything is theatre.' If you think of everything as theatre you come at it in the beginning from an experiential point of view. What is the end result in terms of an experience? And then you take it from that context. What do you have to support it? You have your props; you set up your props, and ultimately, everything you do is an experience. Jay: That's great, thank you. If I were people listening - I am not; and I had a pen in my access, and piece of paper on my table, and I was getting the best result of ten or fifteen people spending an hour thinking about something from ten or fifteen different perspectives. I probably would be writing down something. But I'm not you, so I don't know. (Laughter) Sir -Ma'am? Woman 1: Good morning, my name is Linda Bruce, and the folks at our table talked about the book 'Weird Ideas that Work.' One of the things that we decided is that first of all, you don't throw out what's already working, but you definitely want to add to it. You want to have a playful mind-set, you want to have fun, you want to not take your business so seriously. You
need to do something that's different and unusual, to get your clients to come in and say, 'Hey, when I come into this place, I enjoy myself.' I know that there are some businesses that go out there and really put on events, not just once a year, or twice a year, but every week or every day; to pull their clients in. When you pull clients into your store, and let them have fun there, then they hang around a while, and they buy more. And the big plus, they start talking. They talk to all their friends, and you've got referrals out the ying-yang. So that was one of the things that we learned there. Jay: Great. Man 4: Kevin Dunlin. My table also read 'The Experience Economy.' Jay: Before you answer, did you get something different out of it? Man4: Yes, we did. Jay: Is that interesting? Amazing. (Laughter) Go ahead. Man 4: We found that the more - customers come to do business with you because they want to be changed. For some reason, they want their lives to change, obviously for the better. The more you can involve them in the transformative experience, the more they're willing to pay. It's the difference between coffee that sells at 5 cents a pound in a burlap bag, versus a $5 coffee cup at Starbucks. The more you can involve them, make them different, make them into better people., the more they -price goes away. At Disney World, no-one askes for a refund because they emerge different people. A final question. If you asked yourself, what would we do differently if we charged admission? It would turn... Jay: What a great question. Was that from the book? Man 4: Yes. Jay: What a great question. Thanks. Man 4: Yep. Man 5: (Makes funny noise) 'Weird Ideas that Work.' (Laughter and applause) Whatever gets you outside your comfort zone. It could be an irritant, something up your butt, something in your shoe; anything. If you're creative, get someone who's boring. If you are boring, get someone who's creative. So whatever it is; weird ideas that work. Tom Hanks in Big. Jay: Is that it?
Man 5: If you’re used to a lot of talk; silence. (laughter) Jay: Let me tell you something wonderful. Great, great. (Applause) Try to incorporate silence the next time you're in any kind of selling or compelling dialogue, and it is one of the most profound things to do; just look at someone and zip your lip. It's quite a profound experience. Thank you. Sir? Man 6: Our table read 'The Experience Economy.' Jay: Did you get something different out of it? Man 6: Absolutely. Jay: Amazing. I am shocked. (Laughter) Man 6: And coincidentally, this book is about basically believing that business is like theatre, basically from all levels, that you can pursue a theme in your particular business, or that you may view your role in a business as basically taking a different type of acting approach; where in certain situations you may take an improv approach. You know, there’s situations where you may act more scripted and that you may want to carefully consider implementing certain aspects of theatre in your business. Ironically, I ;;m experiencing a little performance anxiety right now, so...(Laughter) Jay: That's funny. Thank you very much. (Applause) Woman 2: We also read 'Weird Ideas that Work,' and what came through for us was the importance of both of the two models that were discussed; the optimization model and the innovation model; and finding people that can fulfil both roles and placing them in the appropriate areas within the business. The optimization model might be really good for systemizing and strengthening things like the three P's; or accountability or reporting, areas like that. Innovation would be much more important in areas of product development, and marketing and new ways of attracting your customers. And also that having those different kinds of people and plugging them into the right areas of your business, being key, but also bringing those different aspects together; and that the tension that is created through the different elements and the different models really stretches both sides and expands your paradigm and gives everybody new ideas Jay: Great. Thank you. As quick as you can, because I’m trying to get all of you, and I want to get as much in here, and I want to make a point. These are - not everybody who read four books. They're 39 books that we
chose. There are so many books, so many perspectives, so many methodologies out there. The more you can network and mastermind, and get and grasp and understand, and funnel in so you can select and refine and combine all kinds of different people's enlightened perspectives based upon the way their minds are wired and they interpret it, the way they have experienced it; and understand it, evaluate, not judge and put together hybrids. You could own the world. Marshall and Edwin and I , for example, if you guys are interested, will let you know tomorrow. We're going to organize a version of this service where we literally get people on the phone after they've read it and do this kind of stuff, because I obviously want it for myself. Charge almost nothing; I want it for myself, and Marshall wants it for himself. We want to grow by the perspective. You should force yourself to do this. Which way do I go, this way or this way? Who did it last? There? Go ahead. Man 7: Hi, my name's Marcus [unclear 1:30] and our table found the most profound thing in identity is destiny; is the paradigm shift from machine to identity. So there's three qualities that converge. Efficiency, integrity and endurance, and the identity paradigm is grounded in power and grace, which will unleash potential. Now, I basically went ahead and I found an action from each of the speakers that we've heard so far. So for Brian Tracey, it's grow, pulse, thrive. Fran Tarketon says knowing what I don't know. Chet Holmes, the proactive reactive. Mac talked about the winner take all from the global economy, and if you were here till 2 in the morning you knew about that. Andy Miller talked about overcoming bad experiences, and last but not least Jay; you kind of talked about the goals of the seminar: never sit at the same table, try to tell the truth, and how you're not up there for visual display. So kind of rounds it all out from the paradigm shift from machine to identity. Jay: Good. Thank you. Man 8: Brett Nelson; I’m with the leading Weird Idea table over here. We felt that our whole business careers and at this seminar and every other seminar you go to, you're taught systems; how to improve and develop systems so that all your marketing efforts, all your products, launch efforts, everything else, is turned into a system, and when you're trying to create new ideas that you can put into the market place, the key is that you have to develop a system for that creative activity. If you don't every new idea you come up with, the minute it hits; a new idea; the first thing you start doing is developing a system and everybody is off trying to follow that path, and you lose that creativity right away. So you have to come up with a system within your company to have a creative process on-going all the time; whether that be bring somebody in from the other
side of your company occasionally, to critique and come up with ideas; and it's hopefully somebody that does things completely different; doesn't like the way you do things, and you don't like them. Too bad; they're just going to give you ideas that really challenge your paradigms., and you've got to develop a system to do that. Jay: Good. Thanks. Only - I’m not going to get all the rest of you; I’m probably going to do three or four, and the rest of you sit down and know that I have your - my undying appreciation. At lunch, share the rest; I’ve got to move on, but one, two, three, four more on both sides, and then the rest, thank you. Okay. Man 9: Good morning. Martin Whales, 'The Customer Catcher.' We were sitting at our table discussing identity as destiny, and it really came down to whether you call it brand or USP. It was about the value, and commitment you bring to your clients, your employees, and your investors; so it was about branding your company, not your products, because what you're selling today you might not be selling tomorrow, but your relationships will endure if you deliver value to your customers and maintain those relationships. Jay: Good, just - I’m sorry, I’m trying to figure our schedule. Just go back and forth until... Man 10: My name is Ray Burrows and we read 'The Experienced Economy.' What we talked about at our table was the fact that you must be in command of the staging when you're selling and marketing. And being in control of that is essential. Also you must be grounded in your marketing material and your marketing and sales know-how, so that you can improv when you are not in command of the staging. Jay: Good. Man 11: Hi, I’m Bill Shaw. We also read 'The Experience Economy.' At first glance, it seemed like it was a recipe book for building a theme park or theme restaurant, and we all at first thought, 'Gee, that doesn't apply to us.' Then as we spoke a little more, we realized that the basic premise we saw from it was that all of these places leave an indelible impression upon the client that comes in. They talk about it for several days after, weeks after, months after; hopefully even a lifetime after. And that we should strive; when we are dealing with our clients, to also leave an indelible good impression that they'll be talking about for months to come, years to come, lifetime. If we’re replaced in a place, and the next place isn't doing something, they'll be referring back to us as being, 'Remember when we had those guys and how great they were?'
Jay: Great, thanks. Man 12: Tad Hargrave from Canada. We talked about 'Weird Ideas that Work.' One of the thoughts that came is this idea is really scalable; you can do it on a very small level from just rewarding employees for a new idea, to hiring someone that you just totally can’t stand that gets under your skin. Also, the realization that there's a real need to commit to building reserves that - it's really hard to innovate and put all these new ideas in if you don't have the reserves of capital or the emotional stability to handle diversity, so that there really needs to be a commitment to that; that this really also requires clear vision and trust in the team; that if you get all this diversity without a clear vision, that that can really tear things apart. So it needs to be rooted in a sense of clarity. And I agree with the person that spoke before that you need a system to make sure that this happens. Jay: Good. Okay, good. Muriel? Woman 3: 'The Experience Economy,' and I love that book. I thought we've always felt that we're on stage with every client that we have; that was the consensus of the table. Also, our marketing materials will be changed from cooking classes; and there are a couple of people at the table who also do cooking classes; to the cooking experience. Jay: That's great. Man 13: Don Kemp; we had 'Weird Ideas that Work.' We have very simple choices; grow or die. If you do not choose to become increasingly more comfortable with becoming increasingly more uncomfortable, then you choose to die. Jay: I like that. Man 14: [Unclear 1:28]. Identity is destiny; felt clarity is power. You have to be aware and effectively communicate that corporate identity in a constant, continuous manner, whether it's business, government, religion, military, profit or non-profit organizations; and you really have to clear about your own individual identity, and whether it's in alignment with the corporate identity. Integrity is essential, and it's often - this identity is often created by a charismatic individual or team, and can be very difficult to transmit and perpetuity and effectively cope with change at the same time. Jay: Jean, one question. You've been to one or two past events? Man 14: Two.
Jay: This is the third one? Man 14: This is the third. Jay: What do you think is different about this, if anything, and what do you think is a distinction that I'm not seeing, that's good - you can criticize me constructively if it's bad, but good, so it'll -no, no,; so it'll serve the audience. What are we focusing on that maybe I wasn't before, that they should really pick up on, that you see as a professional, as a scientist; that maybe we could help them with? Man 14: Well, what really turned me onto coming to this particular mastermind; I was at the last that I was presented; and what I find is really unique with this and part of Jay's emphasis on funnel-thinking, his inclusion of all these different, powerful, unique minds together, really geometrically expands my mind, and that's what really turned me on. Jay: Good. Turns me on too. Thank you. Okay, last but not least. Man 15: Al Hiesly, 'The Experience Economy,' and well, what we have come up with is that regardless of whether you have a theme business or corporation, that you could create the experience in the sales pitch, or in a voicemail,; much like the Burma Shave signs; that you really don't have to create anything physical. Jay: Good. Okay, thank you. Alright, couple of comments? You got [unclear comment from audience member 3:31] Well are you offering? Then why don't you do so? (Laughter and applause) How did only one table get 'Science of Shopping?' Was that a statistical aberration? Is it a different book? Okay, come on up. It's called 'Why we Buy?' Woman 4: It's called 'Why we Buy...' Jay: Before you say anything, you realize now - you better be damn good in what you say. (Laughter) You look good but let’s see if you sound good. (Laughter) Go ahead. Woman 4: Well, it's 'Why we Buy - Like, Totally, the Science of Shopping.' (Laughter) [Unclear] of Southern California, thank you very much. Basically what was very, very impressive about this book was that - and it basically applied to retail primarily, but it does apply to all of our businesses - was the subtle accommodation of the subconscious natural behaviour of human beings? Jay: What’s the biggest single insight?
Woman 4: The biggest single insight is that the longer that you can keep your client or your customer in your place of business or with you... Jay: Or in the transaction [unclear 4:48] experience. Woman 4: In the transaction in the retail store, because they're comfortable being there, the more likely they are to buy. Jay: And come back. Woman 4: And come back. Jay: Very good, that's good. Did anybody else read that book? (Audience member says, 'Yes.') Any other table that I sent someone down that had a report on it? Then you come to the mike too, because it sounds interesting. Thank you. Two more. Was it just a statistical aberration you were all at the back? That's weird isn't it? Man 16: No it was in the planning of the tables and the location of the microphones. It's a geographic problem. Jay: You guys were a little timid about running to the phones? Man 16: No, we just didn't want to cut in front of the people in front of us. Jay: You knew that you had pre-empted the end if I sat everybody down and they'd have a lot more reverence for your message, right? (Laughter) Man 16: Isn't that nice. Jay: You guys all huddled and said, 'Let's plan this out so we dominate,' right? Man 16: Perhaps. Are we ready? (Cheering and applause) Are we ready to dominate? Alright! Jay: I am visibly impressed. So are the rest. Go ahead. Man 16: Okay, Larry Bordle is my name, and from the male standpoint actually we had two dis - staff at our table as well. This article really divided the population very sharply between the men and the women. And our male guys were definitely male guys and the gals were gals. Who here of men really like to shop with their women? Jay: I love it. But I love it for... Man 16: Really? Jay: I love it, oh I love it.
Man 16: You're very strange. (Laughter) It has nothing - you have nothing to do with how they're serving. Jay: Women like me because I like to go shopping. Man 16: Well, actually what we gained from this is that in every women's shop, there should be a men's room. (Laughter) Jay: Ha ha, okay. That's good. Man 16: Where you can sit down and play on the internet, read magazines, watch some video or something like that. Jay: Watch some video or something! Man 16: And that presents within the store, a real retail opportunity that women's stores haven't really capitalized on. Jay: That’s good. That’s good. Alright. Man 16: And we've also got a gentleman who deals with autos, auto sales. And he should have a women's room. Jay: Okay, that's good. Man 16: And the women will have a good marketing opportunity. Thank you. Jay: That’s great. Great. Yeah, sure. Man 17: My name is Timothy Walker out of New York, and my table looked at the dressing room aspect. It says that the dressing rooms are messy, and [unclear 7:10] and all the rest - smells. (Laughter) The book says a dressing room should have decent hung mirrors like these art frames around here. A chair, candlelight - but it didn't specify candles, but candlelight, bright lights, neon lights; and a chair so the lady can sit and test the flexibility of the dress when you wears it. Jay: Great point. That's great. Man 17: She can see the texture and the reaction when she changes the light. So I told my table, 'You know, I’m going back to New York and I may switch my way of thinking, and give Macy's a prototype of what they can do to their dressing rooms. Jay: That's great, thank you. (Applause) By the way, if you guys want to have a mind-blow, go next door to one of the other rooms and look at what this room could have been like if we didn't put the art and try to really make a cool experience. I did it just to make it good for you; you
guys like the art, Spar will certainly sell it to you; but I did it to make it a cool experience for you. It's pretty neat isn't it? (Applause and cheering) I'm trying to get - no, I don't need that. I 'm saying I'm nothing but a demonstrable, object lesson for you. Do you understand that? I don't need you - I really don’t; I’m very flattered but it's not what it's about. It's about me stepping out and letting you in on the secret and saying, 'Look what you're feeling. Why do you think it would be any different, relatively speaking, to take whatever dynamic is in place, and apply it to your business?' Do you understand that? And if it means get some cool art, get some cool art. Talk to Spar, he'll make you a deal. Get some cool experiences. But the point is, get it, and translate it to whatever business you're in. Dan? Man 18: So it's 'Why we Buy: The Science of Shopping.' We got a table full of guys and we just said, 'What's the big deal?' You need something, you go buy it, you go home. (Laughter and applause) As it happened, some of us at the table had also read the book itself, and we got in a conversation about one thing that jumped out at us, and then one deeper understanding. And they talked about transitioning. And I'm not sure if this is in the summary or just in the book, but transitioning is - let's say it's a supermarket. Someone has to make a transition from the experience they were having in the parking lot to the experience they have in the retail environment. And most supermarkets, soon as you walk in the door, bam; there is their big display of the single one thing they want you to buy the most of, but meanwhile, you literally don't see it, because your eyes are adjusting to the light, and to the sounds, and seeing where the people are, and you're trying to remember where your shopping list is, and did I lock the car? And you literally walk by their prime piece of real estate, and Underhill, the author, said, 'Six feet back, minimum.' And so we talked about transitioning, and that led us to our little a-ha experience, which is that some of us believe that any business should create the environment that your product promises to deliver. Jay: What’s that mean? Give me an example. Man 18: If it's in a supermarket and you’re selling baby lotions and powders, it should feel like this; it should feel like a hug. It should feel safe, with soft lighting. And if it’s the part of the store that sells motor oil, it should be for us guys. And it's okay if the lighting is harsh and we got to reach for it. That's the big one.
Jay: That's good. I mean, if you talk to Spar; where are you Spar? If he shows you - Spar, does lighting have anything to do with anything? [Inaudible reply [10:53] (Laughter) I don't know, does she? Where's the control? Turn the lights off the art for a minute. Show them - at my home, God bless him, he came in and said, 'Jay, I love you but your lighting sucks.' And I thought, 'I’m not going to put lighting, that's changes my room; costs money.' He put lighting in it; it transformed the look, the feel, the comment. And this is stuff that may seem subtle, but we're talking about leverage, you understand? 300% here, 25% there. I look at business, no matter what you sell as a balance. And all things being equal, you weigh every impact point, every lever, massively in your behalf. guess what? You win, and the other i.e. competitors, lose. Thanks. Man 19: Pardon me for interrupting, but there’s no movie that’s ever shot with no lighting, there's no great store that doesn't light their products exquisitely and beautifully; no photographer that knows what they're doing will never do a shoot without shooting in perfect light. Jay: Spar took me on a trip to restaurants and he said, 'Look at the difference…
Jay Abraham Mastermind Marketing 15 …with this -' and he demonstrated to me, because I appreciate leverage in all forms, but I don't sophistication or the discrimination until it's - like here I felt bad for Brain Tracey; we had terrible lighting on him. It wasn’t our intent. I wasn't discriminating enough until it was too late to get a spot, and it was a horrible disservice to him, but makes a difference for everybody else. Think about that; not just linear and literal; what lighting has to do with you - although if it does - in your business, but thinking about leverage and all kinds of other avenues. Thanks Spar. Quickly, last two. Man 20: Sure. Mike [unclear 2:25], Fancy Fortune Cookies. I got out of the book that basically women do 70 to 80% of all buying decisions, and so to focus on the women. So this week I really don't want to talk to any guys here...(Laughter)...I just want to talk to the women that have buying power. And the men - the other thing; the men in stores just, like, power through the whole experience of shopping and get straight to the product, buy it; and women are much more into the whole process of looking, thinking; and they also are much better, historically, much, much better bargain shoppers than men. Men are upsold very easily, and women are not upsold that easily.
Jay: Good. Thank you. Last. Man 21: One of your key philosophies is the maximize and get exponential returns from things that don't cost you very much, and when they followed these 65,000 people through stores, they were focused on subtle things, and analysing it, and what they found is just by changing the position of a mirror, or making a little rearrangement of your furniture, you get exponential results, and so that's where we're going, 'How do we apply that?' It's to look at the little things we do in our business, and find where we can make small changes; if it's how you answer the phone, it's a headline, it's your copy. It's the subtle things that cost you nothing but can double, triple, and like Jay says, 21 times your results. And that's what we got out of it that was universal. Jay: Thank you. Appreciate your - okay, some comments, and then we're going to give you the plan for the next hour and a half. I want to address a couple of issues. I want to do psychic housekeeping. I asked for some feedback from people. And understand this; in all due honesty, and with all respect, I don't purport to be a professional platform speaker. I'm nothing more than a real-world, frontlines entrepreneurial, strategic advisor and marketing expert who wants to transfer and transform you, not just by what I know, but all kinds of wonderful people who normally wouldn't be at a program like this, and if they were, it would be either in a very static and a very superficial way, or they would charge you an arm and a leg. So I'm going to address issues just to respect and acknowledge you, and I’m going to tell you about something wonderful and a moral obligation you've got. I’m going to talk a bit about ethics, and then we're going to get into stuff. I said, what's the feedback? First one is, days are long, and most people appreciate it. I have a problem. Some of you guys have a not many - have a paradigm of a regular seminar, a more structured seminar, and I could easily do that if I wanted to have you guys very impressed, but very actionless when you get home. When I first started doing training programs, I got standing ovations. Always. I had them pretty reasonable on timelines. People would go home and do nothing. Then I stretched and I did this, and they screamed and hated it and thought I was trying to demonstrate a power play, sensory deprivation. They'd go home and they had incredible successes and they appreciated it. Their mind-sets were forever remoulded. If you can't handle the pressure, or the heat, figuratively speaking, my apologies, and feel free to go. But you are denying yourself a really great life outcome. The meal plan; we tried to do the best we could, I mean, if
you judge it - it's like today I got four pieces of bad news, and I was behind upstairs on things I was doing, and instead of saying - going into a tirade of profanity, I said, 'Okay, well we'll make the most of that.' If you’re judging it statically in the moment by your higher standards, knowing that we at the last minute - we decided we wanted a meal plan so you would have the opportunity for you to commune with everybody, and you wouldn't be forced to sit wherever and you wouldn't be forced at the mercy of the hotel, to eat whenever you could and miss the - if the food's bad, I'm sorry. Our intent is so great. And I also screwed up because I have a choice, in the scope of forever in your life, of stretching 15 minutes and maybe your pasta's a little cold, but I try to give you maybe a million-dollar breakthrough. I don't really have to do that, and I'm not trying to be difficult. I know it. I can go to my room; I’ve got people to call, I’ve got people who want to meet with me and do deals that I don't have time for, and I've got people speakers who would love to get off, but I want to get one more, or two more insights and connections so I can drive you to greatness. But I don't have to, and it’s not trying to feel -say Jay, 'I appreciate.' I ;m just trying to give you a context. I apologize. My food was cold last night, my omelette was rubber. I didn't care. I mean, maybe you do, and I’m sorry, because I’m trying to give you something that will last you your life, and I’m just trying to give you perspective. “No schedule issue.” Would you like a schedule; that I told you what I wanted you to do, that I couldn't comply with; would that make you happy? (laughter) Because if you do, I can tell you right now what we're not going to do for the next two days. (laughter) Would you like to know? Or do you trust me to monitor, to adjust, to do the right thing? Anyone who doesn't - again, i love you all. I’m really in a mellow mood. Man, swear to God, strike me dead. But I’m here for the people who get it. I used to do, when I had complaints, I would change my whole emphasis to win over the dissidents. Excuse me. And I found that I stole from the 95% that got it. That I saved a hundred grand in money. (Applause) No, I can't do that anymore. If you don't get it - like, Rick, somebody said five people left because it's too cold. And I thought, 'How tragic for them.' First of all, I’m moving so I don't sense it. If you're really cold and you don’t; think I’m sensitive, all you have to do is gauge the audience and come up here and ask me, and if I took a vote, 95% said, 'Man it's great.' I would say, 'Here’s 20 bucks; I'll buy you a sweatshirt.' But if you're such a closed-minded, rigid, myopic, linear and anal person that you got to get mad and to think. 'Taking five grand out of my pocket one time is going to really punish me,' hey go home. It doesn’t matter.
What matters is are you getting it? And if you don't get it you're in the wrong place, and I mean that with all due respect. But I’m sensitive - help me, because I don't sense it. It's not me trying - I don't get it. I’m here moving around, and the lights are hot. If it's cold there, take a consensus and I'll adjust it. If it gets too hot for me, I’ll ask permission to get it down, but this is about working together. If you don't get that, you don't get what I'm all about, and I don't want your money. Frankly, i don't need it. It's about you guys, honestly. “Music too loud for breaks.” (Laughter) Let me give you a context. I don't usually use music. I wanted this to be a defining experience, so I got serious and had all this music brought in, and the other night i was up until two in the morning listening to music, and I called my wife and woke her up and said., 'This is amazing.' I don't know how to dance. I’ve got a natural desire but I go on the floor and step on everybody's feet. And I said, 'I’ve got to tell you this; I'm listening to this music and I'm moving around and I’m having the greatest time, and I don't think I'll sleep. This is cool.' I’m getting really elevated, and I though, some of you don't get it. Go outside. It moves you; it gets your psyche going. If you don't like it, don't enjoy it. But I think it gets you in the right mind-set to change your paradigm. (Applause and cheering) “Who is Rick Duress?” Rick Duress is a colleague of mine; he's been to ten programs, he's involved in a bunch of activities with me, he is trying to become an extension of me. He has masterminded a lot of the integration, been with me for all this, and he's a very bright guy and he cares like hell about you. Lighting - hey, we’re learning. I really am; I’m sorry. Pointed out, instead of criticizing, constructively help me make it better. Somebody came up and said, 'Do you mind if I send you a big list of stuff that I think you could do better?' I said, I'd appreciate it,' because I'm in the ozone man. I don't do these things anymore, honest to God; and the ones I do are 25 grand, and if you came - who's been to a $25,000 one? Or a $15,000 one? Or a $20,000 one? This is a hell of a lot better, isn't it? Am I trying hard to improve? How long we got to go? I’m a work in process, aren't you? So help me, but don't - criticizing constructively, helping me make it better, is the answer. And that’s the answer for you. "Artwork is beautiful" It is isn't it? (Audience replies 'Yes.' Applause) You should see my home, it's transformed. And again, I had him bring it and God bless him, he legged it all out of his home. It is for sale, you can buy it, and he would love that. And I encourage you; if you got - the only problem with it is makes everything else in your home look tepid. (Laughter)
I got one, then all of a sudden I’ve got five, and - can you guess which ones are mine? i could tell you. We'll tell you on Monday. And God bless him; he was up until 3:30 in the morning putting them where they were the best to - because Spar understands the power of transforming the feeling, the mood, the dynamic, and then lighting them. "Feedback due to computers." Okay. We're trying to accommodate you; every time you change tables, and the whole balance electrical thing gets changed, it screws up everything. Do you understand that? I can eliminate that complaint by saying turn your computers off and don't plug them in, and it's not a problem for us. It's easy. then the balance will be great. You can hear everywhere. But I can also say, 'Don't change table.' I'll turn into a lecture-based. Now, you guys are wonderful about it but you don't appreciate what you're getting if I don't explain what it's costing us to do. And that's a lesson; it's an object lesson that you should take in your own world. People can't appreciate what you're doing for them if you don't educate them. You can't be hearty about it, but give them a context. The ones that get it, get it; the ones that don't, don't. By the way, is it too cold in here? Raise your hand if it's too cold. Raise your hand if it's okay. If it's too cold for you, and you want I'll get a fun - by the people who are comfortable and we'll buy you sweatshirts. (Laughter) I don’t mean that to be rude. I'm trying to balance. If I get real cold, I'll turn it down, and it may sound like a power - only because I want to make sure my mind is in best interest for you. [Inaudible comment from audience 2:40] Okay, move around. Yeah, I mean, look around, because it is - use good judgement; move to a warmer spot; and I'm serious, if you need to we'll get you a sweatshirt or I'll bring a cover down from my room. Serious. I don't care. (Laughter) We want you comfortable but we're trying - Okay the last thing; "Too much information." (Laughter) Okay. Trust me on this. Stop trying to figure it out. Don't try to intellectualize it. Just experience it and let me layer it, because everyone of you will get the breakthrough you need at the proper point; it will come with different people doing different things. Try to extend yourself. If you say, 'I don’t like that,' then you don't get the whole gist. I'm trying to engineer a paradigm switch. I am trying to create funnel vision. I'm trying to get you to travel outside your rigidity. If you complain about it and don't try to examine and observe and consider alternatives, including uncomfortable alternatives, which are the precipice of breakthroughs, then you're losing and you’re limiting yourself. I can't change that but I can try to explain it, so you'll be in the moment.
I can promise you - [unclear 4:02] will say, 'You got to do this, you got to do that.' And I say, 'Yes, if you help me,' And you say, 'What do you mean?' I'm saying I'll cover everything and it'll sequentially cover almost anything you need, and if it doesn't and you ask the question, you'll get the answer; and if I can't answer it I'll go to the marketplace and say, 'Who's already done that and can fill in, because I can't.' And if that doesn't work, I'll get the experts. But if you don't open your mouth, you won't get what you want, because it's not my problem. Does that make sense? Anything else? Did I cover it? (Applause) Thanks. Here's what we're going to do. For the next hour and a half, I got I did, quickly the three ways to grow a business model. I did it as service to you because it's so profound. Di you all get it? That basically, there are three key ways to grow any enterprise. Most people focused on the first. The other two are where most of the leverage lies. When you do that, you've also got to know your marginal net worth; you've got to know the lifetime value. Because if you don't, you don't know how much time, effort, and investment you can expend. An example; I had a client years (audio missing). Uh, they were in fluid transmission; PBC pipe that carried chemicals, water, syrup; chemicals for manufacturing, water for irrigation and agriculture, syrup for bottling. They wanted a breakthrough. I asked them some questions they didn't know about - oh, by the way, we're going to limit breaks so if you have to go, go, because I got to catch up. so if you got to go; you want to go to coffee, you need to make a phone call you got to - go. I mean, do it in the middle and [unclear 00:28] but we're going to try to power through, so I can get caught up. If I go, I'll let Rick talk. This guys came in, wanted a breakthrough. I asked him the most important questions; 'What are the lifetime values, the marginal net worth, elements of your business?' They didn't know. I explained it to them. I don't have time to explain to you right now, but they came back and they found that they had six sales people doing all of California. Sales people were on commission; the commission was roughly ten percent of profits. They found that the average - worst case, not best; and if you look at it worst case, you'll always be happier, and if you look at it best case because worst case, you'll be conservative, best case you'll be disappointed. Worst case, the average new account bought first time - I'm talking in just profit, you don't care about [unclear] sales. $200 worth of profit. Worst case the average new client bought five times a year at $200 profit. Worst case the average client bought for three years. So the marginal net worth were - every time they got a new client in, they were
worth $200 initially. $200 times five times in the first year; $1000. times three years, $3,000, right? Salesperson got ten percent of the commission. So first sale is worth 20 bucks, right? I said, 'Well now you know that...' They came back with that; I said,' Oh God, this is going to be a piece of cake.' They said, 'What do you mean?' I said, 'I want to tell you in a nutshell how to transform your business.' Because I found out the salespeople weren't really doing a lot of new account development. I said, 'Go to your sales people and say, "As long as you keep your current production at or above par," meaning if you've been doing $50,000 a month in your territory, as long as you keep doing that; adjust it for seasonality, every time you bring a new client in we'll give you 100% of the profit on the first sale.' And they said, 'He's crazy. You think we want to give away $180?' I said, 'No, but I think you'd be very willing as an investor to invest $180 you never had for 90% of the $2800 more that you absolutely will have if they succeed.' And I said, 'You've just made the salesperson 10 times more motivated to achieve for you.' Makes sense? I said, 'Take it home, look it at; it's not smoking -' Now I actually do feel a little chilly, so turn it up - it probably wasn't but now I got psychologically intimidated. (Laughter) Turn it up a couple of gradients. somebody, please. And I said, 'Go back and try.'# We'll make a long story short, they did it, it worked. they increased sales 600% in 6months, just by getting that piece of the puzzle. When you understand the marginal net worth, the lifetime dynamics of what somebody's worth to you over forever - it cannot just be a buyer, it can be a prospect - you realize how much more you can put into the investment of acquiring them, or transacting that first sale, because it's only a strat3egic element in the whole process. Very powerful concept. Very powerful concept. Okay, you get the three ways to grow a business? Okay, we're going to power through 25 or 30 tactical elements that represent all three categories. Rick, are we ready? Do I have the tape? Did anyone find me - I heard we lost the Patty Lund tape. Did we find it? Yes, no? Is it here? Do we have it? Yes, no? I asked for it by 10:30; is it here? Okay. sounds like a heart being rushed. We had this tape to play, but nevertheless, go ahead. The first way we're going to go - start with very predictable, universal ways to grow more clients. Okay, first, Rick - (sings a tune) Okay, he's booting up. Want to shake your booty? Put on shake your booty, for me - go ahead, while he’s booting up.
Shake your booty? (Laughter) No, I’m serious. (Laughter) Why not? (Audience says 'Yeah.') Yeah, we'll dealing the breaks - if you've got to go, go, but we're just going to power through. Play Shake you Booty, but we're going to start the moment he gets booted up. Or the moment the record stops. Or neither if we don't do. We're a seamless organization. Precise in every way. Having fun? Good. It’s fun isn't it? Good. I’m glad. Hot. Yes? Would you like me to explain it? I can explain it, I can explain it. And I will. Did you find it yet? Okay, [unclear 5:00] it’s on the CD that nobody needed, up in my room. Forget it. No-noes got it. Okay, we are a pristine music machine. Got anything like that? In my new desire to be a musical impresario, it's not executing exactly perfectly. (Laughter) That is not what I want. I want the 25 strategies under the three wings. What are my options? Yell, and scream and throw a tantrum? (Music plays) what am I going to do? We were saying before our technological and musicological interruption...onward, team. So we got three ways to go to business. We're going to go through quickly but imperially, because we're going to have people come to the mike, stat. When you go to the mikes, quickly. You got to tell your name, the generic type of business; don't give us a big advertisement; how you actually do or have applied what we're talking about in your current or a past life. Got it? Okay sit. Okay, Rick. These are the three ways. Start with how to get more clients. Number one; to increase your lead or enquiry generation you can. Number one; develop referral systems. We talked about it yesterday. I told you there's 93 ways to do it. I told -give me a concept, give me a context. You have a moral obligation, if you operate at a high level; and I will do the strategy pre-eminence before the day is over. I should have done it earlier but I got to get through some of this first. You have a moral obligation to encourage and systematically generate referrals, whether you sell them or not. Why? Because I have a deluded belief that you care more, you give more, you have more expertise to contribute, and if anybody who is a client of yours - let me ask you a question. Anybody here have a best friend? Raise your hand. Men, women; if you have a best friend, and you best friend has a father, mother, husband, wife, child, employer, employee, neighbour, pastor, colleague; that is important to them, and they were getting ready to make a buying decision, or a life decision or a critical business decision about anything that you possess really meaningful expertise on, would you think a moment about extending yourself to them? Even not in the business life.
Let's say you understand all about re-doing, re-modelling a house and I'm your friend and I’ve got a - my mother wants to do it and she didn't have a clue. Wouldn't you make yourself available to really give my mother every piece of balanced, well-reasoned, expert, experienced advice you could, just to help me make the best decision of whether to do, how to do it, who to choose? Yes? (Audience agrees) And if you didn't, wouldn't you feel terrible, if you could have saved her from making a mistake, or from under - from getting a lesser of an outcome, or getting a nightmare result, right? Yes? (Audience agrees) We have the same moral obligation to make all of your clients aware of the fact that because they are a valued client of yours. That you are always there willing and open to extending yourself you anyone in their association. Client - you got to define who it is. Relative, co-worker, employee, neighbour; who needs to get an expert perspective before they make a tragic mistake. And you’re always there - and it should be great if they buy from you, but you don't care. Come and talk. Now, that's a very sell- now, I used to - I give you stuff very [powerful that I've simplified down to very elegant simplicity, but what I just said quickly and what , thank goodness is preserved on tape for all of you, is a transformatic insight, if you run with it. How many people in this room have a - raise your hand - that have at least one formalized, powerful referral generating system that is just killer, that has been working in their business, and is just so neat that it’s transformed your business - raise your hand; go to a mike right now. Your job is, in one or two minutes, to explain what the system is, the l=key elements, what make it work, and the three or four things anybody in this room need to know to apply a variance of that - a variation of that to their business; and this is killer. I would take so many notes if I was you. Don't give us a big ad for yourself; I want to get the most people down. Be thankful we're going to tape it; thank you for doing it; opening up. You're giving these people three or four great ideas they can run with, but you got to give them a context of how it works for you. Go. Man 1: Kevin Donelin; my business is Guaranteed Resumes. About six years ago, following Jay's advice, I figured out how much I was paying to get clients anyway -I worked it out. My Yellow Pages ad cost me about $30 per client, so I started offering $10 referral reward bounties to new clients. Anyone who bought in a client got a $10 check from me. And there's no limit to how much money you can get. Jay: Okay, so I need you guys to do one thing - going to change the rules. Quickly, because I got to make it fast. Tell what it's meant to you in
dollars, what the impact is to you, in either dollars or lesson of something else, and what the two or three lessons and action steps everyone should get from that. And if your life depended on it - what I said to Frank. If your life depends on it - are you married? Man 1: Yes. Jay: Do you have children? Man 1: Yes: Jay: Are you madly in love with your wife? Man 1: Most of the time. (Laughter) Jay: Well, we’re all that way. Is your wife here? Man 1: She's not going to be listening to this tape either, there’s going to nix in that happening. Jay: Okay. Let's say that ewe have her hostage. She and the kids are bound. They're gagging, they're choking, their hands are tied. We're not doing anything really we shouldn't be doing, but it's pretty treacherous there, and it looks like they may be goners, unless....in the next minute you can explain to everyone in this room, to their absolute clarity and certainty, the three or four things they need to do immediately so they're going to be certain of getting some of the greatest referrals on a constant, continuous basis. Go. And your wife and kids are in the offing. Man 1: It's made over $100,00 for me in five years. You're already paying for clients anyway, when you work it out; do the numbers. Why not give that money to the clients as reward incentive? Jay: What should they do? Is that it? Man 1: Yeah, tell... Jay: Okay, good, thank you. Next. Man 2: There's a couple of different ways that I focus on getting... Jay: Give me just one. Man 2: Just one. Okay. Letting my prospect be smart and helpful. Jay: How? Man 2: I tell them. while I’m filling out the order form; I don't wait till they’ve worked with me yet, I just right from the start keep asking, and I'll
tell the, - most of the people that I work with can think of at least three people - so I put out a little bit of a challenge there, and then while I’m writing out the order form, I say, 'If you could just write out the people that fit the following criteria,' and I give them what the criteria (audio missing) referral, that I believe they’ll know that person. And then while I’m writing, they start writing down names and looking through their Rolodex, through their Palm Pilot. If they’re coming up with lots of names, I start to write the order form very slowly, because when I stop, they stop writing. So as long as they're writing, I keep going. Jay: What's the lesson to everybody? Man 2: All your clients definitely know people. They're just not always sure that they know the right person, so just put out a challenge that they do know them, the other people know them, and then if, you've positioned it properly, they will give you three, if not six -because most of them are going to want to do better than what the average person does. Jay: Thanks. Will. Man 3: I have a trade association and two years ago i came here and was at one of Jay's seminars. And what I realized was that a lead had a certain cost, so I figured out what a break zero point was. So every time a member joins, what's the cost? And then, I started a program where you recruit through your memberships free. So it gave me a break even year one, but year two it made me about $360,000. Jay: So, lesson? Man 3: Lesson is to give a benefit that's big enough to get people to refer to you. Jay: Thank you. Next. Man 4: On the Internet it's very easy to track where a customer comes from, and we decided to put a financial reward on a referral. And we talk here a lot about clients have - referring people, but we go to other businesses that complement our business... Jay: Like? Like what? Man 4: Like we are in the web hosting business, and they, for instance, provide information on how to improve your website, so they're high traffic sites, and our target audience, and we have them put a personal recommendation for our business. Jay: Good. What's the lesson?
Man 4: The lesson is don't be afraid - look further than your own clients. Go to complementing businesses. Jay: Good. Thanks. I’m going to really hurry, because I want to get all of you. Go. Woman 1: Hi, Pamela [unclear 2:05], Sand Diego. I’m a real estate agent, and I got together with another agent who refers me - I get all the buyers lead off of his for sale signs. They call an 800 number; I get the leads, i call the people, and I give him a referral fee for it. so that’s generated all the leads for me, and then probably, off of that, once I get the leads, give him the referral fee. Off of that, I get all the other clients from those people too, so it's like the whole tiered effect. Jay: What's it mean to your income? Woman 1: Income is probably anywhere from 50 to $100,000 additional, on top of it. Jay: Lesson for everybody here? Woman 1: Don't just think that - I guess, one referral and go with that person; go further, because it leads to another to another to another. And the other thing is , the lender that I give them to, then refers clients back to me, because I'm giving him the business, so it's both - so it's all free to me, basically. Jay: So it just perpetuates - good. Thanks. Man 5: Brian Frank with Endurance Marketing Group. For a long time, we had almost no referrals at all, even though we had tons of satisfied customers. Their desire to keep their competitive edge secret presented them from doing that; from telling their friends and competitors about the products. So we started bribing them. And basically just offered them such an incentive that it override their desire to keep their edge a secret. And so we pay them 25% of every new customer who they bring in the door, as well as giving the new customer a 15% discount. Jay: Lesson? Man 5: The lesson is that if you have a situation where you have satisfied customers who are not referring, and.. Jay: Stop. Does it make an economic difference to your business? Man 5: Huge. Jay: How much?
Man 5: Around 40 to 50% of our new customers... Jay: What' that in dollars? Man 5: Well, it's about 1000 customers a year, half a million dollars a year in extra sales. Jay: Again, the lesson? Man 5: The lesson is, is if you ask for referrals and you don't get them, bribe people. Make it work... Jay: Ethically. Ethically bribe people. (Laughter) Man 5: Absolutely. And tell them what they're doing; tell them their friends' going to get a deal, they're going to get a deal, and make it fun. We take care of all the accounting; we keep track of how much credit they've accumulated through tier referrals, so every time they call up, it's kind of like they get to discover how much credit they got into their account, and think, 'Well, how much do I have? Can I spend on product?' And so we've made it fun and it's working really well now. Jay: Good. Woman 2: I'm Juliette Eastern with Travel White Incorporated. We offer natural health and parenting solutions online. We basically - it was an obvious thing. We asked people to share our information and products and websites with their family and friends. We asked them their aura combination... Jay: How do you ask them? Gimme - just real quick, in 30 seconds. Woman 2: Order confirmation page, email receipt, the information packet they get with their order... Jay: So you do it in many different - touch points. And what happened? Does it work? Woman 2: Yeah. We've got about 10% of our business is from that. About 75-100 a month in... Jay: What's the lesson? Woman 2: Lesson is, ask - do the obvious and ask people to share you with their family and friends. Jay: But ask them because it makes better sense for them. Is Shad here? Is Shad...her? I can't remember Shad’s last name; she's got - is he? Is he here? He’s got this - I got to share this because it's killer. It's like 80% of
his business. He sends out a letter - he does herbal cleanse for your body, and after the 60 or 70 days when theoretically you got the impact, he writes and says, 'Now it's your turn to do something meaningful for somebody important to you.' And he gets 70% of his business just by doing that. It's not hard; but it is hard if you don't do it. Man 6: Joel Christopher, with [unclear 5:36[ Builder.com. My business is I help people build up in lists, so this referral system is a two tier affiliate program on the Internet, and I take it to the next level by going for the super-affiliates, because the five over 96 rule works on the Internet, where only 5% of my affiliates are really doing something great. So what I did was I rewarded the top five affiliates with higher commissions gave them higher product samples, so they can endorse it to their list, so.. Jay: Lesson? Man 6: Lesson is instead of going for the big numbers, go for the small numbers with the big lists, and that will catapult your business massively. Jay: Okay, good. Man 7: [Unclear 00:18] LTA Media. We put a lot of emphasis into developing a high quality sales program together - a 30 minute show that we run on radio whenever we put a new product up. And once we've tested it and the show finally hits, and we roll out with it, the thing is that we've found that as soon as we started, we decided what we would do is throw a copy of the program in with the shipped order. And then encourage that, you know, if you're as excited about this as you've heard in this show, this might be difficult for you to explain to someone else; here, just put the show on. We put a unique telephone number in it, so we're able to track where that show comes from, and who buys from that particular disperse tape in there, and it makes a big difference. Jay: Lesson? Man 7: I don't know, you could see - well, I guess - I don't know, I think that if you're already putting your emphasis into a marketing strategy, it may be to give your customer a good tool. Sometimes they want to refer to somebody, they want to help, but sometimes just give them a good tool that'll help them explain. Jay: Thanks. Woman 3: Tamara Campbell; I’m a chocolatier; I make healthy, intelligent chocolate. We also are provider of...(Cheering and applause)...thank you. We’re also a provider of a food that is very life changing, really works on
the person's mind and their brain. We implemented a program that was very good in - I trained this to our tele-operators from the very beginning, that even when we did follow-up calls, we asked 'Could you refer?' But I took it one step further, and when we did the initial sale, I asked them for the referral right then. And the way that we do it is I say, 'When you experience this food and it changes your life, perhaps you can share it with someone else that you care about, and if you do that, I’ll be happy to give you a free bottle of this E3 Live the next time you order.' So they're motivated from the very beginning; they're endeared to us, because people like things for free, they like to help other people. So in essence, for us last year, it made a difference of $600,000; a little over that; to our bottom line. Jay: what's the impact, Tamara? Woman 3: The impact is that we have exponentially grown our business. And I can tell you one thing for instance. Last week, I had one client call. I ask who their referral was. The number one thing we do is say, 'How did you hear about us?' and we keep track of it. I had one client call last week, asked who their referral was. I tracked it all the way back to the original referral; it was 14 levels deep. That meant a total of $1800 to your company. Jay: That's important. Great, thanks. Also, it's - I love your stuff, and I take gobs of it. I helped them; intermittently I get paid in stuff. Michael and Tamara are really cool people. If you want to try it, they'll send it to you for the cost of shipping it, and some people get great outcomes; some people get headaches. I’m not passing judgement on it, but it's really cool stuff for me, and you might want to consider it. And I don't benefit a dime for it, but they're pretty cool people. Thank you. [Inaudible comment 3:35] It's they're here, Michael’s here somewhere. Where are you Michael? Well, you saw Tamara; Tamara's the good-looking woman with the glasses. Go ahead. Man 8: My name is Muhammad Hussein; I own a small printing, copying and typesetting business. I have used a mixture of several processes such as bartering and risk reversal. And this has netted me an enormous referral that netted us $380,000 contract. We started as a small company, which was about 230 - 250,000 sales last year, and now we are looking at half a million this year and possibly taking it where the next level - or the level of referral we're getting, we're getting into a level that will take my business to about $2 million.
Jay: Good. You guys understand - excuse me for interrupting. I'm doing a lot of time on referrals because it costs nothing, makes everything, higher quality, more profitable, nobody does it, this is worth 10, or 100 or 200 or 2000 times the whole investment if you do anything with even one of them, so it's probably worth a little bit of time, don't you think? It's probably worth a few notes. Few notes. Thank you. Action to them? I was talking over you; did you give them what they should do? Did you tell them what they should do? Man 8: Well, if one system doesn’t work, try another system. or a mixture. Jay: Good. Thank you. Man 9: Hello, my name is Brad Chestnut, with Insurance Automation and Marketing Consultants, and the insurance industry is a pretty close knit group of people, and I knew that to really hit it effectively within that industry, you had to have referrals. You had to have people working for you. One of the objections I got tired of was 'Let me check the system out first, let me see how it's working, then I'll give you names.' So what we did is we took a different approach. We built the referral program into the sales process. So right from the get-go, we're telling them, 'We're going to prove to you without a shadow of a doubt that our product's going to create the result you're looking for, it's going to meet the needs,' and so on and so forth. 'And for each referral you give to us, at the time of the sale, we're going to take a discount off the purchase of the system. Then for each one of those that actually buys the system, we built on top of that with - we want people to give us a lot of referrals, so the more referrals they gave us, the more money they got. Jay: What's the impact been to your business? Man 9: That's really how I built the business initially. Jay: And how big is the business? Man 9: Well, I’m just a segment of that piece of it which is representing software program for another company. I manage a 12 state region, and this region, I took it from nothing; a virgin territory to number one region in the nation. Jay: How much volume? Man 9: Around 250-300 a year. Jay: Okay, but very significant.
Man 9: Oh yeah, for this - just 12 state region. Jay: But what's the impact to this audience? What do they do? Man 9: The impact to them, is a lot of people again, are asking referrals after the sale's made. By building into the process, first of all, brings out objections, that I think are very key to helping the sales cycle. It trains their mind that you're going to be asked referrals, and that you believe in your product enough to get the referrals. Jay: Good, thanks. As quick as you can, but as complete as you can. Also the financial impact; because I want you to realize, just pulling a few of you, it's like millions of dollars that you’re learning about in one fell swoop, that you can translate apply, extrapolate, import over your business. It's pretty exciting if you get it. Woman 4: Leah Francia. I’m a life and health insurance agent. And I specialize in long-term care insurance. So what I decided to target was what can I get the biggest impact on without spending money? Any more money? So I found that it is referrals at the point of sale, or even on the phone. So what I decided to do was, I did an experiment. One part of the experiment was asking for referrals because it was the right thing to do for me and for them; to give referrals. And also, on the phone. and then I did another experiment, when I offered them $100 to their favorite charity. I would donate $100 to their favorite charity, for every one of their referrals that did take out long term care insurance. And what I found is that the $100 didn't make any difference at all. When I didn't offer it, I got more referrals than when I did offer it. Jay: Lesson? Woman 4: The lesson was because it was from my heart, that I felt that what I had to offer was valuable. They felt what I had to offer was valuable. The impact on the business would be on even the first live, is like 300,000 a year, and that's without even spending a dime, and not even asking for referrals every single time. Jay: Great. Thanks. Man 10: My name is Alan [unclear 2:54] and I’m the developer of the system that Mark Victor Hansen was talking about yesterday; Creator Advancer Finance Executor for team. My system is quite different referral wise, because it's about unintended consequences. What I did was I created an idea outrageous enough to get people talking about it, and I thought they would do one thing but they did quite another that’s worth a lot more money. I created a one-book bookstore for my book, with
different departments; art. anthropology, fiction and literature; but my book in every department. (Laughter) I thought people would buy more books, but actually what they did was they bought enough books for the store to break even, but I was getting $10-15,000 a month referrals for speaking engagements. They would say, 'You're crazy, will you come and speak to our company?' (Laughter) Lesson was, do something different, get it out there, and people you don't know about will start talking about things and they will have heard of you, and that's an enormous... Jay: Great. Thank you. Man 11: Tom St. Louis, marketing strategist from Toronto. I've worked with a lot of people n referrals and I found a fatal flaw in all the referral systems. And so I created a way for people to get a hundred referrals at a time. And the simple distinction is that when people ask for referrals, the person that they're - I mean, whether we do it before, during, after, later; whenever; the person they're asking can only think of what comes to mind. Okay> 'Oh let me think of whoever I can think of.' So what I’ve done is I’ve said, 'Well why don't you choose your very best customers and stage it. So you say, - 'The way that I’ve helped you, would you be willing to share that with some other people?' 'Well, sure I will.' 'Why don’t we get together and we'll discuss that and maybe we can help some of those people out.' So you get together with them and then you reconnect them with the value - you talk about the before - you get them to get back in the state of glowing appreciation for what you've done, and then say, 'Well, you know, let's know find the names of the people who you'd want to refer me to. Where do you keep them? do you keep them in your Palm, in your address book, in your Rolodex, in your - okay, let's start with the A's, and find all the people we can really help.' And when they start with the A's - at first they're in a state of mind of 'Joe Adams, no I don’t think so.' 'Oh why not, is he a business owner?' 'Well, he is but...' 'Well, let’s put him down,' and then they get into a state of momentum, and all of sudden they get super excited by the time they get to the D's,. the E's, the F's; and you can literally get 100 referrals or more in one meeting, if you stage it right. Jay: Good. Great. Thanks. Man 12: Patrick Corbit, Executive Leadership Group. Everything we tried to do is maximum best use. One of the things (audio missing) are trying to - people always go, 'I don't have their names and numbers right now, get back with me,' or then I used to come back to them 30 days later and say, 'Could you give me a name or a number.' And it - what I
found out was two things. One, I always told them, the day I signed them up, got them enrolled in whatever we were doing, I said, 'Hey, bring out you address book, I want to be able to give you the name of our corporate officer customer service, right now.' So they went to get their [unclear 00:22] or whatever, and when they brought it out, they already had all their names and numbers right there. And that's when I asked for them there. Eliminated that objection real quick. And then also learned that you always had ask for it at that time, because they're best pre-disposed...situation in their mind to be able to give referrals. I could never get them if I came back later, so I always asked then, and I always got them in a place where I could ask them at the right time. System worked all the time; allowed me for two years to work strictly, 100% referrals. Lesson? When you find something that works, teach it down. Jay: Good. Good. Man 12: You got a lot of people that want to know; you've got to pass it down. Jay: Everybody take your pen and write on a piece of paper the letter T big T; the letter N and the letter C. And who would like to guess what that stands for? What did you say? [unclear 1:15] Constantly. Take notes constantly. This is not really - I mean, people don't get me really, very deeply. Everything I do is very strategically integrated for a purpose. Being able to consolidate in two minutes an essence that's generating $500,000, a million dollars, $5 million, $50,000 extra year, and listening really quickly to 40 people share with your ideas that probably won't do exactly that for you, but if you got it - you'd be able to use three or four of them, and one's worth half a million to them; it's only worth 100,000 grand to you; but that’s on the first stage and you have clients that buy often and more, and they keep coming back and compounding. T-N-C. You're never in your life going to have an environment where 650 people are bought together and are so willing to open up and share intimately and go out of the way to consolidate and demonstrate; and then direct you to how to do more and better than even they are. T-N-C. Woman 5: My name is Shera Street; I’m Spar's mother. The thing that (Laughter and applause) Jay: And you're a very talented artist in your own right. Woman 5: Thank you. Jay: Are you proud of your son?
Woman 5: Yes. Jay: Good. Woman 5: What we do at our retreat, Serenity by the Sea and Serenity Transformational Tours, is we have a high impact heart connected card that we hand out as our guests are leaving, and say, 'Would you like one or more to - or as many as you'd like to take to pass on to people who might enjoy what we're doing?' And they go home with a whole bunch of cards, and we know that they're put on refrigerators, and on computers, and... Jay: And does it work? Woman 5: It's working, and we're here to learn how to help it work a whole lot better. Jay: Good, thank you. Spar? You know that woman, is she an imposter? Spar: She's the coolest mom in the whole world. (Audience says 'Aww.' Applause) Maybe my wife would be the second-coolest woman... (Laughter) If you've seen the little 9 week old baby that's walking around, that's mine...[unclear 3:38] Jay: I want to know who modelled for that picture over there, Spar. (Laughter) Spar: Shh. Jay: Sorry. Go ahead. I took Jay's PEQ Cubed a few months ago, and Scott Hallman, who's going to present later, was questioning me on how I got my business, and I said, 'Well, one of the things that happened -' I’ve a lot of high-end, beautiful homes that my art is in.' And one of the clients; 11,000 square foot house, Rancho, Santa Fe., 9 acres; exquisite home; he said, 'You've done 13 paintings for my home. Would you do an art show?' And I went, 'Yeah.' (Laughter) And so we put on this show; 250 of his friends, which are, let’s say 30-40% of those were also high net worth individuals, came to this show, and I ended generating a significant amount of business as a result of that. Several hundred thousand dollars. Jay wants me to be specific. I was sitting in the back going, 'I don't want to tell anybody this,' because it was easy. Jay: I doubt if your - but your job is to train - we're here to openly share; that's the way people will share back. Spar: So Scott's asking me, 'Well, did you ever do it again?' (Laughter) And I went, 'No.' And I was like 'Duh.' (laughter) I love that. And so I just - it's
worth so much to have your clients fall in love with what you do, put on an event. If you - I’m not saying me, but if you know an artist, you can put on a show, you draw your clients in, they get to have some kind of interaction that's intimate with you; you end up doing - you get an intimacy and personal relationship with your clients in that way... Jay: Great point. Spar: ...that you wouldn’t get any other way. And it doesn't really matter what business you're in... Jay: [Unclear 5:53] much more sensory levels than you normally would in your day-to-day endeavours. Spar: Exactly. Yeah. Jay: Great. Great point. Thanks. Spar: It doesn’t matter what you're selling, there's a way you can connect with them. Jay: Great point. Man 13: Chad Deferrari, with the CDF Media. And we're a web development company in San Diego. And what we did for our referral system was develop personal relationships. Rather than offer them like 20% of for whoever brings me the next client, we started off in the contract phase of going out and saying - one of the ways we started closing deals back when I was working out of my bedroom in an apartment in La Mesa, was saying, 'If you can't refer me, then I didn't do my job.' And it really sets a tone for the overall process, and immediately they start thinking, 'Well, who could I refer you to?' And by the time they're done, I get the clients that I want to get. I have a string of clients, and a 98% retention rate of those clients. Because over the years I’ve grown to love them; we send them the Christmas card, the candies, when you need to, and you make sure you know something about them; and it's a very personal thing. In the beginning when we first started, I had sales guys that weren't closing a lot of deals or getting a lot of re-orders, and what we determined was I had a lot of sales guys that were simply selling, and going out and trying to make the deal, but not necessarily the best deal for the client. So we adopted a motto that I think has worked very well for us, which is 'You can shear a sheep a hundred times, but you can only skin it once.' So now we have a nice flock of people; a flock of clients that have worked very well and continued our retention, and we’re still getting our clients.
Jay: Very good. Lesson? Man 13: I offer them my continued integrity, and thank you very much. And that's it; it works great. Jay: Great. Thanks. Man 14: Hi, Jeff Wilson, Wilson Advisory Group, Denver, [unclear 7:37] Jay: Wait, but he's also a Saturday Village Person. Man 14: Thanks to you. (Laughter) Huh. Okay, really having been through the PEQ home study courses, what I learned; two quick things, which is one; give it away, and two; that you have to be willing to take - to establish the relationship and basically build that rapport if you want to build an enduring relationship. So what I have done with my (Audio missing) ...specific, and targeting who I’m looking for; make it very clear in their mind, the kind of client I'm looking for, and as a free gift from my client to the referral, what I have offered is a certificate which a value of $1295; a free financial physical for their friend, relative, customer, whomever. In the last six months, that has brought - and this is with sporadic implementation, not ruthless process implementation. It's brought $30,000 to the bottom line. Jay: So, lesson? Man 14: Lesson one is have a compelling offer for the referral to want to meet with you. Two; to make it attractive for the referring source desirable for them to be involved in the process. And three; execute. Jay: Good, thank you. Man 15: Hi, my name is John Henry and I want to apply the referral and host beneficiary concept to one of my two companies, called Mailcastle.com. It's an email perimeter and a security company, that stops spam - sorry, a lot of you - stops spam...(laughter)...viruses, objectionable content before it enters your network. Jay: I get it, okay. Man 15: But what I did is, like last week I called up 6 network administrators and I.T. consultants that have large client bases, and I basically developed a program to pay them to pay attention. If they just want to give me a referral, I have a small, little, trickling referral fee that is sizeable enough over time, and the second thing is if they want to actively
help me enrol, I’m going to give their clients a free trial subscription to the program. Jay: Good, and have you done it yet? Man 15: Oh yeah. Jay: Is it working? Man 15: I’ve got like 10 referrals in three days, last week, and it's easily going to result in... Jay: Good. What's the lesson? Man 15: Lesson is, paying people to pay attention. It's going to mean probably a couple of hundred thousand dollars in revenue. Jay: That's great, thanks. Man 15. Alright. Jay: And point. Where did you come from? Man 16: I'm busy taking notes. (Laughter and applause) Jay: A point that I forget in teaching you what I’m all about, was that I believing an optimal business/marketing strategy, and each one is different. Your job is to examine - in optimization, you can’t perform at the highest and best and maximum result and performance until you evaluate all the options and opportunities and possibilities and alternatives out there, and then identify and combine the best ones after tests have validated that they work; that are appropriate for you based on your ethos, your business model, your ideological mix; so you listen to people saying, 'Pay them, pay them.' And people say, 'Don't pay them, don't pay them.' We used to do seminars - Mac was with me, and we would do seminars where we'd have two totally different mail-order experts. One would say, 'You got to make it personalized; a live stamp, personally addressed.' He's say, 'Have all kinds of copy streaming on the outside.' And both of them were very successful. The answer is what combination gets you through the night. You understand that? It's not the same for each of us, and it may that one works better, but you don't feel comfortable with it; maybe that your market - it's appalling to compensate them. Maybe to some segments of your market, it's appropriate. Whatever you do, do it with absolute integrity, and it will never, ever, fail you.
Woman 6: Hi, I built one of my businesses solely on referrals. I’m a business consultant for international projects, and when I first got my business started, I actually went to somebody that was established in the field and let them know what I was doing with my business, and that person- because they'd been in the industry for 30 years, and they charged a higher fee; we actually set up a system where people that can't pay the $1,000 for them, they actually are able to use my services. And what's great about it is that one; this person that I’ve built the partnership with, they actually do all the marketing. When the person calls me, they've already been sold, and also it provides them a structure so that they’re advertising is maximizing, and I give them a percentage of the referrals. Jay: Okay, lesson? Woman 6: Lesson. Create a relationship with other people in your industry that do the same things that you do, and find out what service they're not able to provide to their customers, and see where you can fill it. Jay: Great, thanks. Yes, mystery man? Man 16: Yeah, it's Peter [unclear 4:49] from Kiss Me Cosmetics, and I first really want to give you guys the result, because I - prick your ears up a little bit, because I think with referral systems, everyone really is somewhat intimidated by them, or not so comfortable, and then asking them - and don't really understand the power of them. But this company I was working with for many years, and it's a photographic studio, and year after year after year after year, our whole business came from referrals. They had a very good system. Basically, the customer acquisition cost absolutely nothing. We didn't really pay for anything, and it kept - it was a national photographic chain in the United Kingdom, and it kept thousands and thousands of staff all in business; just from this one idea. But the thing is, we was extremely aggressive in getting referrals. And you can be really aggressive, and nothing terrible happens if you're not aggressive. You can be really aggressive, and we really pounded people to get referrals, and they didn't know; they didn't know what the game was, they didn't know that - they weren’t allowed to give 30 or their friends and family members out. They just kept on going. I was extremely adept at getting referrals - I'll just give you the basic process that I went through. Basically, I would sell these ladies a photographic portrait plan. And then when they've decided to make the purchase, I say, 'Right, and then what I'll do for you, Mses, is that we'll give you a free enlargement. You'd like that wouldn't you?' They go, 'Yeah.' So i say, 'All you have to do is give us ten names and numbers of your
friends, relatives and family who we can phone up.' So they'd say, 'Oh, uhh...' I said, 'Don't worry about that, I’ll just hold on the telephone while you get your name and address book.' So off they go; they come back. And they're getting it; this one, this one, this one, and this one. And it's like - and they’d be like, 'How many's that?' I'd say, 'Don't worry, just keep on going. Don't worry, just keep on going.' (Laughter) 'Don't worry, just keep on going.' I mean, I have to say, my colleagues - I used to get - the average - we was told that we were supposed to get 10 referrals a time. the average person probably got about five and then have to phone back. I was so aggressive at this; I had more people than I could ever call - my colleagues were asking to give them my referrals. Jay: Tell them what would - how would you transact the scripting and the dialogue of the call? Man 16: Specifically? Jay: Yeah. Man 16: Okay, once they've made the purchasing decision, tell them that you're going to give them something, and then make sure... Jay: No, the call - the contact - how would you contact the referrer? Man 16: Oh, the... Jay: The referee. Whatever the word is. Man 16: Oh, the referee, okay, great. I think Jay knows this one, don't you Jay? Basically, we'd say, 'Look, your friend has just purchased this plan and they didn't want you to miss out.' Which, you know, is kind of hyping it up a little bit, but the thing is - because the photographic portrait plan is an experience, so it's one of the reasons we're getting these guys to get them in the first place. Say, 'Look, you can do the experience together with your friends and family.' And so we'd have like all these women, and they'd all be coming together for these makeovers and everything. So you can be really, really aggressive. you can just keep on saying, 'Just keep on going, keep on going, keep on going,' and they'll reel name after name, after name after name after name after name. And hey, if it's the customer that - if they've got a load of friends and they haven’t got any money, or they're not quite right, you don't have to phone them, but you've got the opportunity. Jay: And when you phone again, the key to phoning somebody is, it's a mind-set too. What's the mind-set? Man 16: The mind-set of phoning...
Jay: When you're phoning the referral - the list. Man 16: The mind-set is that basically they want to do it, and they want to do it with their friend. And they're having this... Jay: It's peer confirmation, peer confirmation. Man 16: Yeah, absolutely. Jay: That's great. What's the recommendation? Man 16: What's my recommendation? You can be so aggressive. I don't know all you guys but I’m sure the majority of people out here, they can be aggressive times 1,000 in getting these referrals. It's not kind of like some little meek thing where you just...
Jay: But the mind-set is not pushy, is it? It's consultative in saying, 'Hey, they'll love it too. Are you loving this?' Man 16: Yeah. Jay: 'They'll love it too. Do you want them not to enjoy this? Is it right if they get old and they don't have pictures of their family to reflect on?' Man 16: Yeah, absolutely, it's just like - if these guys weren't going to buy the plan in the first place, then they're buying it because they see value in it for them. And if they see value in what you're selling them, why wouldn't they recommend everybody that they know? Jay: Okay, thank you. But before you leave I’ve got to make a comment. If you can learn anything else, not just what he said, but listen to the tonality, listen to the passion, listen to the enjoyment, listen to the absolute delight in his voice. That's pretty cool. (Laughter) If you could think about being evolving to that level, it'd be pretty neat. (Applause) Thanks. Man 17: My name is Taka [unclear 10:01] from [unclear] Inc. We're doing business in Japan. We are a [unclear] service provider. Our referral system is if the new clients sign up our service, we ask them their five referrals. If they give us five referrals, we waive set-up fee. The lesson is POS - point of sales. At the time buy your product or service, they are most excited, so you should take advantage of that. Jay: Great point. That's great, thank you very much. (Applause) Let me tell you the good, the bad and the ugly. But first I’ve got to acknowledge our resonant hero - just came in after going four or five hours of
intellectual battle with all of you - Mac Ross, I want to acknowledge you for doing Herculean set last night. (Applause) My crap musicians need a little bit of practice. We were going to make you feel special, but after the fact. Dave, get with it. (Music plays) We appreciate you man, thanks. Speaking with Mac, come on up here; I need you to help. Thank you. (Applause) Do i have the - (whistles) - do I have the Patty Lund tape now? You can turn it off now. Do I have the Patty Lund tape? Yes, no? Last time; do I have the Patty Lund tape? Yes or no? Rick: No. Jay: Okay, the next time I ask for it to be delivered before 10:00, take me seriously. Rick: Yes, sir. Jay: You guys will see only a few times I 'll be disappointed with people, but if I ask it by 10, 10:30 might be okay, but 11:30 is not. Okay, here's what we're going to do. The good, the bad, the ugly. I’m going to make a couple of comments about some questions people asked. This is one of 25 things. Do you think I’m going to get through all 25? Do you think I have a plan? (audience says 'Yes.') Do you think the plan’s going to be neat? (Audience says, 'Yes.') Think you'll love it? (Yes) Do you think it'll transform you? (Yes). It will. I'm going to quickly, with Mac's help, go through what the 25 are quickly, before we bring Chet on. and God bless Chet, he's been adjusted now from an hour and 45 minutes to an hour, and he's going to have to move mountains, because he wants to give you his two most powerful techniques. And he's a partner of mine in a bunch of consulting endeavours, but it's really important. But here's what we're going to do. We're going to go through quickly, the remaining 24. We're not going to have time to go to the mikes, but we're going to do the better equivalent. When we go through every one of the 24, I ;m going to ask who in this room has successfully - is or were or have, successfully implemented a systematic version of this with enormous results. You are going to raise your hand You are going to be on the honor system at lunch, to make sure you are at a separate table with a group. If I have 25, I’m going to try to get at least five or ten of you at each table, and when you're done, move around. And you're going to share your idea with each table, and each table's going to vote on the most impactful, single idea, because that’s what's we're going to do sometime when you come back in the afternoon, okay? You get me? Yes? (Audience says, 'Yes.') And that's going to be very tranformatic if you do it. A couple of other points. I got some letters. One
was from a real estate. 'I can't give money for referrals.' Who said that? Can you give help? Where do you operate at? [Inaudible comment from audience member 13:50] And you can't reduce your service fees on other transactions? If you said to me, 'I can't pay you, but given the statistical certainty that over the next three to five years you're going to either buy, sell, or have a relative - and I can basically - I can…
Jay Abraham Mastermind Marketing 16 …reduce that fee for you in the future;' you can't do that? So you want a couple more? [Inaudible 00:53] Okay. Number one. Number two, and this is -we're going to get to risk reversal so I won't put - anybody who's got where's the attorney who said he sells an expensive product or service? Somebody - first of all, one of the biggest ways I've grown businesses is to find the influence - Chet's going to talk about the dream 100. I find the most influential people and we buy them services. And we buy them services with the understanding that if we do great for them, we know that they're going to be in a position to want to refer lots of people to us. And it has always grown massive business. I’ve done them for cosmetic surgeons, cosmetic dentists; I’ve done it for attorney's, I've done it for chiropractors, I’ve done it for massage therapists. I've done it for all kinds of people, and unless you're filled - it's like, my billing rate is 5 grand an hour, but I can trade. I can trade or I can invest an hour or two. 10 grand of value, but if I do it right, it'll generate 100 grand or 200 grand or 500 grand of residual value. If you don't get that, then you don't get what we're talking about. Yes. Audience member: can I ask one on that idea? I’ve had that issue, because I tried a referral, and I’ve got... Jay: Wait, what's your - go - do we have a mike? Does mike work? Come up here, I don't know if it works Okay, run to the back mike, real quickly. Audience member: When I did a start-up of a referral thing and I haven't worked like I should, I have some clients that are state, city, government offices, and they actually made the point to come back to me to say 'We cannot accept any kind of gratuities or discounts... Jay: That's good. Stop. You can say this. 'Look guys, I wish I could write you a cheque for a million dollars. I can't; we both go to jail. That stated, let me say this. You either think of - we're doing business together and you either respect me as not just the lowest, but the best provider. You know that I care more, I work harder; I try to do for you what I would do if the tables were turned. I won't let you spend more than you should, I won’t - I
look out after your interests.' And you frame all the things you do. And you say, 'I have two choices in my business career. I could spend all my time, money, effort and attention recruiting new clients and spending advertising; I could spend it all on making myself even better educated, better focused, on my clients like you. In order to do that, I still have a business - just like, if you're city and government, you guys are funded by tax; if they don't collect taxes, you guys don't have a job. Well, if I don't sustain new clients, new engagements, new projects, new then I’m screwed. I’ve chosen that the highest and best contribution in where I think i make the most difference is putting all my time and effort into relationships, like yours. In order to do that, I ask, with respect, and I hope that my performance is deserving of it; that you would honor and reciprocate to me, when I’ve earned it, by giving people - by referring quality people to me. Because certainly you know a lot.' And then I'd indicate and illustrate who they are, where they are and where they know them, and leave it at that. Does that help? Audience Member: Sure. Jay: Aren't you glad we tape things? Audience Member: Yes. Jay: I am too. Audience Member: Thank you. Jay: You're welcome. Yes? Audience member 2: On referrals, something I want to share with... Jay: Go to a mike. Audience Member 2: Can I take this mike here? Jay: They say it doesn't work; go to the back. I'm sorry. Isn't this fun? Mac: Oh, absolutely. Jay: You look very dapper. (laughter) Mac: Oh thanks. Try not to upstage you. Jay: Can I borrow this and trade? Mac: Well, yes, of course. Jay: I’ve got ties for the whole power panel tonight.
Audience member 2: Does this work? Yes it does. There's something that I want to share with you, which is a very powerful referral-getting system, which can be used for virtually any business. Jay: And wait, Sri, I didn’t introduce you. Sri Rou; he's a colleague of mine, we're collaborating on a book together, he teaches marketing at Columbia, he's written for ten years for Forbes, and about 30 other magazines. Very knowledgeable guy, and he's looked at my body of work, and translated it and tried to figure out how it can be much more utilized by bigger corporations. Very brilliant man. Sri: Thank you Jay. Pay close attention to what I’m going to say, because i think this has the potential to double, triple, quadruple or even more you business. It's a - some of you have talked about, 'Well, I’m going to give you a cash bonus,' or something like that, and it has been working for you ; and I never knock anything which is working; but many feel very uncomfortable about making that kind of an approach at all. Let me suggest something. Come up with something which is non-cash, preferably something which is information based, and something which is only given to a person who gives you a referral. It could be a white paper, could be some kind of an inspection you perform, some kind of a service you can give. And here's the neat thing. Come up with different levels. In other words, say 'Well, we've got people who are at a silver level, a gold level, a platinum level, and how you get in to each level depends upon how many referrals you give me,' and even more important, what do you do to the referrals? Giving a name and a number gets you simply at the bottom. Giving a name and the number and calling up that person and saying, 'Hey, you're great,' and you want to meet with him, gets you to a higher level. So come up with your own system, but set up a membership level for referrals. Let you r clients know that this exists, and give them a mechanism for getting into higher levels,. and make sure you have done good things that you can give them at each level. Works like [unclear 7:05]. (Applause) Jay: Thanks man. So Mac, you understand the game we're going to play now? We’re going to power through the other 24 areas. We're just going to quickly identify and explain - we're going to stop momentarily. Everybody who does that in a minute is going to raise their... Rick: Jay - in the back - do you want the tape now or later? Jay: Oh, you got it in? Okay, we're going to play something... Mac: Patty Lund?
Jay: We're going to play Patty Lund. Now, this is - Mike [unclear 7:34] is going to talk about Patty Lund. Patty Lund is this cool dentist that really redefined for me and got me really thinking about referrals. I wish I could tell you that I taught this to him, but I didn't. He taught this to me. We did a seminar in Australia - oh god, ten years ago; I recorded this, thank God, and we made it a part of a lot of things. This is the tapeset of the 93 referrals, and this is the actual opening. It's a little awkward, but listen very, very, very carefully, because it will have profound impact in your business life from this day forward. Go ahead. Jay on tape: ....and referral systems. Okay, I’m going to play a quick tape, and before I play it, I’m going to set the stage. In Australia, the average dentist makes - works 60 hours and makes about $60,000 Australian. There’s this man that we met, who works 23 hours and by last year was making $400,000 Australian, and having the time of his life. How did he do it? Well, he didn't do it by doing what every other dentist did. He did it by first of all, almost going so crazy with depression that he did himself in, and he realized he had to change the ways. And he analyzed what he liked and didn't like about his practice. He liked the people he could befriend. He liked giving in to people, and not just into their mouths, but really learning about them; their family. Becoming a dear and valued friend. He liked a certain quality of people who treasured and revered what quality dental hygiene meant; people in the cosmetic who really valued the way they look; people who made appointments and kept them, people who did regular frequency of checkups. He didn't like people who came at the last minute, who were unpredictable, didn’t appreciate, didn't maintain it, didn't pay him; so he started to do something wild. First thing he did is he encouraged everybody he didn’t like - nicely - and gave them to some other dentists. Then he took his whole waiting room out and he changed it. He just gutted it out and he put in there a - salons, which would be like booths, and made it like a restaurant. When they came into see him, he would basically first sit down with the patient, a new perspective patient, and have a cup of tea with them, and he talked to them as a friend. He'd learn what's going on with them and their family and they'd exchange - and be not in a hurry. He would connect with them on a much deeper, holistic manner, and he would -sit down with them the first time, and he would tell them what they should expect from dealing with him; he would set the criteria. He would tell them what satisfaction looked like, and draw a picture. Then he flips it. He's gone through 8 or 10 things they should expect and dimensionalized
and very specifically and tangibly put words in their mouth and visions in their mind of what satisfaction and expectation should be. He then tells them what he expects from them. What he expects from them? First thing, if they make an appointment they keep it. Second, that that's not just a professional relationship; it becomes a fraternal one too, because he can't just deal clinically. He wants to deal personally. He loves people and he wants to really get into their - he wants a long association with them, their families, etc. Third; if they have any dissatisfaction, they respect him enough to tell him. Fourth; that if they are dissatisfied, they honor his request and they don't say…(audio missing) …If they are satisfied with his performance on their behalf; his service, his professional services. number one; they pay their bill in full every month. He doesn't want to carry [unclear 00:14]. As I recall, he has no receivables. Number two; the moment they get what he promised them, they have to immediately render to him at least two referrals. And rendering doesn’t mean giving him names; making people call him. When I last heard, he had a waiting list, but he changed the whole rules of the game. Now, what I'm about to play for you is a taped interview I did with him, and I wish I could tell you that he learned this from me. I learned this from him. I think there's a lot of implications to it; I think it's a perfect conclusion to the first part of this day They're going to play it - think about your own lives and business as you're listening. (On tape) Patty: I'm [unclear 00:59] referral, and the way that I started doing that was initially by asking people for referral, and that was fairly scary, to say to somebody, 'Would you ask one of these... Jay: It was awkward too, wasn't it? Patty: It's awkward, and it's scary and intimidating, and makes you feel a little small somehow. And then somewhere, and I’m sure somebody gave me the idea, but I can't remember who; but thank you, whoever gave it to me. Somebody said, or some little part of my brain said, 'What about if you tell people whether they’ve got to refer people to you? Jay: What if you make that a condition of doing business with them, is what you're saying? Patty: Yeah, when someone becomes ancient of mine, I sit them down and I say, 'Hey, before you become a client of mine, we have this little bargain that I would like to run past you, and one part of the bargain is that owe an awful lot of things to you, because you've started to become a client of mine. And the other part of it is because you've become a client
of mine, you owe me something’s and one of the things that you owe me is to refer to me two people of comparable quality to yourself. And... Jay: Because he's raising them to a height of acknowledgment, their special to you , and they're not the norm. His clients are a special, elite breed, right? Patty: They are special, because they’ve been referred by other clients of mine. Jay: Similar to them. Patty: Yeah, similar to them; of comparable quality to them. So I say, 'I require you that you do this before you join the practice.' And when I first said that, I thought, 'Oh, it's a bit scary; I’ll probably get 50% and that's pretty good.' And in actual fact, the common response is, 'Can I only refer you two people?' Which I thought was an interesting response. It's not... Jay: What do you think they - you think they respond that way because they don't know the rules, and if you tell them, 'These are the rules,' and you leave them, they'd say... Patty:...before they come - I try and destroy their concepts of what it means to be in my particular business. Jay: Tell everybody how you do that. Patty: Well, when we run the business, we tend to copy the other people that run the same sort of business. Jay: Why? Patty: Because this is just the way it is. We do it a lot... Jay: There's no reason for it though, is there? Patty: I don't think so. But we act as if there is a law like that in Australia. We act as if we have to run our business exactly the same as everybody else's run their business, but we don't, and nothing happens awfully if we don't run our business in the same way. So I decided to destroy people's paradigms by changing my way of business. And one of the things that I did was, I locked my front door so that people couldn't get in. (Laughter on tape) And that makes it a little different. (Laughter) [Unclear 3:55] You've got to ring the bell. And there’s a little sign on the door; it says, 'Thank you for calling, but we're inside, but we can’t do much unless you've been referred by someone who's already a client of ours. So if you've been referred or if
you're a client of ours, please ring the bell. Otherwise, if you have a major problem, we'll try and find somebody who will help you, but we won’t help you.' (Laughter) Yes, it does. If you hired yourself out to be exclusive, people tend to want to get it. It's really weird isn't it? Jay: that's powerful. I think you've made the point I want... Patty: Thank you. Jay:...but - no you have; it's brilliant, but now add on it. You can be a vivid illustration. I submit to you that if you don’t revere yourself, nobody will. Don’t you think, Patty? Patty: Absolutely. Jay: But when you do, and you don't do it - you've got to do it with finesse and you've got to do it with education, you've got to do it nurtiously. They can't respect you if you don't give them a basis it for that, can they? Patty: No. If we don’t love ourselves, it's hard for other people to love us. Is that okay? Jay: That's great. Patty: Thank you Jay. Jay: Thanks, Patty. Okay, with that as basis, or a crucible to build on, how many in this room either currently or in the past incarnation, had a....(Tape trails off) Mac: Whatever it is, is lost in time. (Laughter) Isn't that pretty powerful? Jay: Thank you Mac. [Inaudible 5:40] ...and then we've got to move on. Two different people said, 'How do I work when I have - I’m a proprietor to another point in the distribution chain, or the supply chain? I'm a manufacturer, and I've got distributors, or I go with retailers. And no other retailers are going to give me somebody in their market? ' Duh. You think maybe they'll give you somebody outside their market if they get some benefit from it? It's not a perfect world, don't… (Audio missing) …linear thinker, one and half days into this, or I feel like I’ve accomplished nothing. (Laughter) It's not a pure, pure world. It's not black and white. Maybe you can't go to them in their market, but you think anybody who's a retailer never ever knows any other retailer outside of their ten or five mile or three block radius? anybody? Maybe? Possibly? Huh? Duh.
Mac: The key to a Putty Lund strategy, if you think about it, isn’t the mechanics of asking for three referrals, even the setup. The key to the Patty Lund strategy is something that Jay has talked about for a long time. Its revering and valuing what you do at its highest level. It's all about this time... Jay: And how do you do that? Mac: You, first of all, establish enough rapport with your client's customers that you know what your value is. That you have every evidence - that you’ve given everything that you can toward your customers, clients and relationships, and that you know that you've contributed. And you keep that channel open. You have to look inside yourself in many of the ways that Brian Tracey and Mark Victor talked about, and keep those antennae open. Start appreciating yourself and accepting your commoditized definition of yourself. And realize you can be that diamond. Jay: [unclear 1:34] ...strategy of pre-eminence, which I have to do sometime today.... Mac: But that's - it really is, in essence, that core belief in what you do and the value added and refusing to accept a commoditized value. Jay: Last point, and then I’m going to let Mac...I was testing to see if you noticed, and you did. Good for you. (Laughter) You're on, you're [unclear 1:55] The way to figure out your value is to think transactionally in the difference you've made in somebody’s life. Not to think of yourself as a commodity. In order to do that, you ask questions, or calculate - think about how much more benefited a company us because you’ve been in their life. Talk to them, ask them how - interview them, or have a third party like Jacquie talk to them. Help see what they got from it, what it's meant to them, what they value most. I mean, people think I'm arrogant. I just think that I'm giving you guys - those are the right - people are getting such a benefit, because I know what it's worth if you act on it. I know if you don’t act, it's not my problem, but I know the value, because I’ve seen it - important its impact. If you don't quantify a little bit, both tangibly and psychically, your value to other clients and what you've meant, the difference, the protections, the impact financially; saving them from problems, getting them out of it, impacted their business, to their wealth, to their success, to their continuation; you won’t appreciate yourself, as Mac said, at a high enough level. Here's what we're going to do. We've got 20 or - 25 minutes. We got 25 concepts. We're not going to get through it. Mac's going to - they're all in
your book; two different ways - you guys have so many things on it. Mac's going to go through Pareto Principle; the most critical ten. Just going to explain it quickly. You're going to find a volunteer, you're going to raise your hand. All the people in each category are going to lunch together; you're going to make sure you're at different tables, and you dump your data, then you move you plate to another one, you do it, and you should be able to get through three tables, because we're going to vote on the biggest impact at each table, and we're going to do that when we come back. So go Mac. Go. Mac: Well, next. This - as we talked last night a little bit; this - when you acquire your clients' breakeven and make a profit on their back end or their downstream business; can give you a pre-emptive advantage in the marketplace. Is anybody doing this now? Can you stand up please? Only a couple. These should be very popular people at lunch. Identify one of them, and try to sit with them This concept is probably the most powerful in - one of the three or four most powerful in Jay's enormously powerful tool kit. Excuse me? (Audience member says, 'Amen.') (Laughter) Oh good. We got another volunteer for lunch. (Laughter) And I really want you to try and work on this. If this is something you don't understand, try to get someone at lunchtime to put this to work for you. This revolves around understanding the lifetime value of your customer. Marginal net worth; Jay also has referred to it as. It's saying your relationship is more than slam, bam, thank you ma’am - excuse the ancient reference. It has to do with establishing the relationship that - you may have none, but you should think about it. Why? Because most people like to persist in what they’re doing. If you have a value added proposition, more than likely the same transaction will go to you, all things being equal. You can count on something down the line, even if it's just the relationship, even if the fact is the product you're selling; like coffins; maybe a one time delivery. (Laughter) You still have the option of working with the relationship, if you have a trusted relationship. There's subsequent business to be done in the relationship, and we all have a human tendency to do business - to prefer to do business with people we trust. That's the situation you are exploiting. Does everybody understand lifetime value? This is very important. (Audience says, 'Yes.') Go read marginal new worth - this is all extensively detailed in your notes and your workbooks. So let's go on. We've talked about risk reversal thoroughly. You’ve seen the leverage of it. Host beneficiary relationships. sometimes a very powerful relationship host beneficiary. Some businesses are not easy to promote, as a first step
in a relationship. Who uses host beneficiary? Or as we used to call, host parasite? Stand up please. If you're interested - if you have a very valuable service that is difficult to communicate to people until you're in a trusted relationship, watch those people. If you're interested in host beneficiary, you think you might be a candidate, grab these people for lunch. This is seriously your lunch assignment. Host beneficiary works when you have a situation, for instance, where let’s say something like professional services, where there's a mass of people trying to sell the service, but you can't find a way to get through to the client. Somebody who else has the trusted relationship, is the one who can refer you. And there's a symbiotic relationship. Direct response advertising, essentially - this is one of the keys to Jay's messaging. Don't do things without planning a result; looking for result. It's not about you, it's about projecting your message and acting - looking for results. Asking for results. It doesn't mean you have to sell with every communication. It does mean you have to ask for involvement and interaction. You can't afford to buy the world a Coke, frankly. Only Coke can - and I didn't see them actually buying it in the [unclear 7:48]. (Laughter) If you follow the brand advertising leader on this, you can go broke pretty fast. Direct response advertising or direct response marketing is thinking about not just attention, not just interest, not just desire, but action you want as interaction. If you say, 'This isn't working very hard -' if your communication isn’t' working very hard, you should probably find another mechanism. Direct mail and email are tactical uses of direct response marketing. Direct mail and email are still the work-horses of marketing. They are provably more effective, tractable. Email has added a whole new dimension. If you don't know email - who's - could I see who's using email and direct - email? Stand up please. This is a wonderful thing; make this a prime topic at lunch. Grab one of these - how about direct mail. Who's using direct mail? Interestingly enough, email has impacted direct mail tremendously. The direct mail business expense; the relative expense of direct mail as a stand-alone is - makes it difficult, but sometimes direct mail is the only way you can establish the initial relationship. The convergence and my friend Barney [unclear 9:15] has just handed me a wonderful... Jay: Fax, mail... Mac: Fax, mail. Well, the fax mail's still effective with lagging technology offices. For instance, certain offices like doctor's offices, don't want, for instance; don't want email, for the most part. They’re still - old industrial places - they just don't want to go near it. they think people are going to
send them pornography. But - whatever their fear is, they just don't want to have any high-tech in the office. So they can use fax. Fax is a form of direct marketing. Direct mail is the granddaddy of the arts of direct marketing, but all the technologies that talk one-on-one with the consumer and the client, are direct response marketing. Next, telemarketing. Well, telemarketing is very offensive. Except that it works. (Laughter) It's a numbers game, and it's very tough thing to manage, but people do respond on the phone, if your proposition is correct. You have to work out your tactics immaculately. Who uses telemarketing? Stand up please. Does it work for you? Yeah. Do you have to manage it properly; is it - do you have to manage the nuances; do you use disclosed caller ID? Or do you use blind caller ID? Those are little nuances depending on what you’re doing. Are you using real sales people that are incentivized or low skill people that are just going through the motions? All those things matter, but if you're following up behind the direct mail campaign, or sometimes telemarketing will boost results in convergence, three, four, five hundred percent; because people are primed to hear, and waiting for something to get them off the dime. And a phone call that's friendly, and supportive, will make things happen. So don't ignore telemarketing, even though we all hate it at dinner time. (Laughter) Because one of the things you learn in direct marketing is the old - don't look at what people say they do, look at what people do. Most perceptions of people's behaviours is skewed. Everybody says. 'I never buy anything from direct mail.' Except you look around their house, and it's furnished with things from catalogues. They go, 'Well, yeah, but that's a catalogue,' or 'I like that.' (Laughter) Well, most of the economics of direct marketing are, you only need maybe half a percent of response, on a high price item. You don’t have to respond to everything all the time, for things to work. Take a look at the business equation and become comfortable with statistical results. If you're in particularly high touch businesses - number eight; the running of special events. And this is in your workbooks. The running of special events and information nights can be a way to establish a low threshold. Who uses special events? Stand up please, if you wouldn't mind. Anybody thinks like -particularly high demonstrable activities, for instance, medical services, professional services, even selling cars are extremely benefitted by special events and information nights, where there’s a big product commitment and there takes an education pattern; you have to be comfortable with the people you're going to do business with. It's a low risk way for people to get to know you, and you can get to know them.
A qualified list; number nine. [Unclear 13:13] clarified list. Who works their direct marketing material? Who captures names, here? Could you all stand up - you know what capturing names is? Capturing names is that you get the name or email, or fax number, or phone number, of everybody you have contact with, or do business with. Why is that? (Audience members shout suggestions) Those are your most powerful - you paid for all that activity. That's the primary expense and the primary cost within your marketing. If you don't capture that, all your marketing, all your dollars are wasted. They go back, but you’ve got them to raise their hand. Develop the relationship with them; it's so important. Qualified lists can be also - one half second - on qualified lists; qualified lists are people who fit your profile. A competitor that goes out of business might be useful. I actually once set up an exchange once with some coin dealers in a period of terrible depression in the coin market, who had big investors both had big investors in coins, and needed probably to do something about them, but they hated the vendors - each of them hated their relationships so much that they swapped lists, because the new person could call the old person’s list and hear them vent about how bad the other one was, and say, 'Well, we'll help you out of your problem.' (Laughter) Yeah, they're really skunks...'We’re here to help.' (laughter) Because they just didn't - the breach of trust in the relationship had gone so far, but there was still interest in the area. So qualified lists are the essence of the direct marketing proposition. This back to - this is number ten; but it's really number one and number infinity. Unique selling proposition, as we discussed last night; you have to get to the top of the list for that moment the person or the company is going to purchase from you, and the only way that you can do that is that in the mind of your customer you are number one choice at that particular moment. You get to be number one by having an implicit, a clear stated, unique selling proposition; or unique strategic positioning. Or it’s one that’s vague, but still there in the mind of the consumer. I keep saying that. The mind of the client - it has to be their perception of your value. And I how many people have good USP's in this room? Please stand up. A rare thing, to have a good (audio missing) …formulated, very good. About a third of the room, maybe a little bit less. And it's a progressive question of developing a USP. USP's are something that's always in process. Most people start with a USP where it's all about them. Not about what the value added to the client is. For instance, just to give you a case in point, a diner - everybody says, 'Oh, stop at that diner, because the truckers stop there.' Well, you go, 'Well, they must have good food, because
truckers like good food. That must be their USP, so they put up good food.' But a little research shows that the reasons the truckers stop at that particular truck stop was cheap gas, and they had the most easy parking, and in and out. Had nothing to do with the food. The perception - there's a terrific study that's called Predatory Marketing, by Brit Beamer, which is wonderful. Talks about all the things you may not be paying attention to, that may be affecting your consumer's choice. But square one - square end. Pardon me? Okay, five minutes. That’s easy. Increasing perceived value of service. what's the fundamental key of increasing - increased value of product or service? The fundamental key is talking to people, tell them what you know about it. Explain, don't say, 'It goes without saying.' It doesn't go without saying. Say it. (Laughter) Public relations. Or as some of the smarter practitioners are talking, earned media. Public relations is the most powerful tool you can put to work, because on some level, it's mass communications for free. But you don’t get it for free, you get it by understanding the needs of those publications and media, and giving them what they need to create an interesting content for their subscribers or readers. And you get it by understanding the dynamics of the market place. Jay:...[unclear 2:24], but I think this is one of the most - hold on. Am I on? Am I on? I think it's one of the most overlooked - make sure people stand up and go out of their way - who uses PR and media management very effectively? Stand up. Okay, very few of you, but you have a moral obligation - raise your hand, take a note, prick your thumb with blood; you've got to do it, you've got to help everybody else see the implications of being much more oriented towards using the media advantageously. Promise? (Audience says, 'Promise.' We're going to hurry through because I 've got to get Chet on for you or you'll lose another - Mac is doing a Herculean job, because I'd still be on the first one. Mac: But productively, though. Jay: Yeah, of course. Mac: Delivering higher than expected levels of service. Who here makes it their business commitment to provide the highest level of service they can? How do you know that? How do you that - do you ever ask your customers do they perceive you to be offering a higher level of service? It's the constant communication that brings that about, and that service, in a commoditized environment, is the key to relationships. And service is
what people think it is, not what you think it is. This is an adjunct; communicating - 14. Communicating freely with your clients to better nurture them. This is an adjunctive education. Just the fear fact of communication gives you an opportunity to open up a relationship. There's tremendous amount of latent business out there, that if just by saying, 'Hi, I was thinking about you. I haven't heard from you for a while,' you can stimulate a flood of business, just because people say, 'Oh yeah, I was kind of doing something else, but now that you called...thanks for sending me that letter. I’ve been meaning to reorder.' It's very powerful. Increasing your this is - I’m not going to stop here because we have Chet, and he's going to go through this again, so powerfully, increasing the sales level skills of your staff. Very important. If there's one key to this it's that the first sale you need to make in an organization is to your people. Don't assume they're sold just because they work for you. Next, please. Jay: He just went and did an errand for me. Mac: Well, that's too bad, because he's my clicker. Jay: My fault. I'll do it, I'll do it. I just had him do an errand, sorry about that. What was the last one we did? Mac: It’s 15 here. Jay: Hold on. Mac: Well, why don't you do it and I'll do the... Jay: Okay, good. Mac: [unclear 5:01] Chet... Jay: Isn't this fun? (Audience says, 'Yeah.') Beats a regular, linear seminar, doesn't it, when people are...? Mac: Qualifying leads up front. Jay:...be so cool to dole out wisdom to you guys. It's much more fun getting the context. This is going to be so cool. Okay. Qualifying leads up front. You heard about the starving crowd; nobody realizes that you'll double, triple, quadruple your effectiveness if you start with a calm, pragmatic question. Who in the hell, where in the hell are my prospects, who's already got them, what's the best avenue; looking at your database that your buyer makes - see where they're coming from, what
commonalities they have. It's powerful. Two more. Wait, stop. Who does who's really good at figuring out how to identify and zero in on the quality of prospects? Who thinks they really do it well? Stand up. Stand up. Stand up. Not very many of you. You've got to - you probably won't have a very good lunch because you're going to go from table to table to table. Anybody else...? What is it? Mac: What's the fundamental question when you're qualifying? The fundamental question is - and proposition is, 'I don't want to waste my time or yours. Let's - I’m offering a valuable service; I want to find out if you ever have need for this service, or might be interested in an enhanced version of what you're getting already.' That question, straight up, gets you a qualified answer. Jay: Good. This is self-evident, we've already done it. Next. This is so - at point of purchase psychologically - the buyer is so favourably pre-disposed to be guided to a higher level purchase. All you got to do is either guide them or have something. 7-11's got stuff all around. that's because people buy it all. It's very simple. Mac: You sell what you sell. Jay: Next. This is going to get into later - we'll get into this later. Next. Mac: That's bundling. Jay: Bundling. Mac: It works. Jay: That’s silly. Everyone thinks you've got to compete on a commodity basis. Just by raising your price you will find - I raised my hourly fee from $2,000 to three; from three to five, and it only made me more powerful and impactful. It only made everything else I did more value based. Mac: One thing is so effective that in Germany, bundling products and enhancements and bonuses are so strong, that it's illegal. Jay: Next. Next. We'll just move it later. Mac: Okay. Jay: We've already talked about that. Mac: Greater or larger [unclear 7:22] of purchase. Just put on your thinking cap... Jay: Let's stop and we'll do this later, okay?
Mac: Okay. Jay: We're going to do one thing for two minutes, just to get your energy. Stand up. Dave, are you there> Get ready, we're going to play you YMCA again, but only half way through because we need to get ourselves ready for Chet, and then I'll set the stage. Mac, you're the best YMCA partner I’ve ever had, come on. Are you ready? We're only going to do half, because we've got to get going, so about halfway through, stop it. Okay, get yourself limber. Alright, you ready? I don't have magical feet, so you guys got to help. Go. (YMCA starts playing) Loud, loud, louder, louder, louder. (Audience clapping) Come on Mac, we need you. Mac…. Okay. So you had Chet Holmes a little bit. Chet’s a partner of mine in a consulting business. Anybody here who's got a business that's 5 million and up, or making seven figures? Make yourselves known, because we should at least talk to you and see if there's any application to you that will help you long term or for me to get involved on a contingency basis to try to triple or quadruple your profits; and he's available if you're serious, but he's here for one reason only, really. That is to help me help you understand two of his most powerful distinctions. I call it the Pareto Principle. The two things amongst everything else; if you get these two things, it'll move your business powerfully, profitably and immensely strategically forward. So he's going to spend about an hour. He should have spent an hour and 45, but I crammed it and poor guy, it's compressed, so bear with him. Listen carefully; it applies to all of you. Rick:...you're going to go like this... Jay: I’m just going to - the lights will go off and the speaker will. Anyhow, Chet's really cool, and if any of you guys; I don’t have time, but a lot of you should be talking to me, because I’m here only to reach you. I don't know who you are, you know who you are. Let him know, and if there's any car dealers in here, I need to trade for a car, so you got a very receptive person. Go ahead, Chet. Chet: Ah, it' working. Jay: Go, man. Chet: Okay, thank you. I’m going to pick you a little bit of where I left off yesterday, just because I wanted to finish a couple of points, and then I'll move into the second segment. This talks about obtaining master level of skills and for those of you who don't know my background, I studied martial arts for 23 years. I have 13 different degrees of karate, you know,
from [unclear 1:34] black belt on down to [unclear], depending on which style you're talking about. My father was a marine combat instructor, so I started learning at like, 3 years old. I had a karate school in Times Square when I was 25. So it says, karate, golf, tennis, sales, time management, telephone skills, interviewing skills, closing skills; management skills with you as the manager. All that stuff I talked about yesterday. All it takes is repetition. I mean, how many ways are there to swing a golf club? The right way and the wrong way. How many ways are there to serve a tennis ball? It's about what makes you great at that though, is constant repetition. And it says, in the beginning, acquiring a new skill can often be boring. Like you going back to your office now and trying to do those workshops to move your staff forward in all these areas that you've learned about, and you'll find it somewhat frustrating, you're not quite sure what to do; and you'll get good at it, is my point. You just got to stay with it, because there's no karate lesson, or golf lesson or tennis lesson you can go take in a weekend and come away a master, right? Right, so let's talk about what makes a master. This graph; this is one of those - and yesterday, if I would have had the time, I'd make this dramatic point about the power of visual aids, and how much they can help you communicate. For example - this is a great example of powerful visual aid. At the bottom here - I don’t know if you can see it. Can you guys see that? The little laser thing? No, it's not. But at the bottom, it's called lowest level of skills - that red line across the bottom is lowest level of skills, and this line across the top is what they call master level skills. And here is most people with most skills. That's average. Because if you're a master at something, it's not something you were born to; anything. You've got to work at it, from Tiger Woods, to anybody who's a master of sales and marketing; something that you worked at. Well, let's take time management as an example - trying to make you guys all masters of time management. Those of you who took the PEQ know that I have a very strict regimen for time management, and how companies should run. So I - and this is one of those epiphanies - I came back from a big seminar like this, and I realized that I was in a reactive mode all the time in the business. And so I came back and I set up these rules in the organization, and I basically broke time management down into six things. Here's what it takes. Five minutes at the beginning of the day, I want every salesperson to do this. I want every department manager to do this. We're going to run the company this way. I taught that program on a Monday, the skills started
here; we were average time management. On Tuesday, people literally came to me and said, 'You know what, I probably had the most productive day of my career.' By Friday, almost nobody was doing any of it. (Laughter) Right? Has that happened to any of you ? You come in, you say, 'This is what we're going to do from now on in. It's a Monday...' Everybody goes, 'Yeah, great idea.' Tuesday, everybody does it, they see it work, and by Friday nobody's doing it. And if that's where I stopped - if I didn’t have a fifty [unclear 4:34] in karate; if I wasn’t obsessed with making sure that people became masters, and if I wasn’t - what did we say yesterday - pig-headed determined to make sure that this time management was going to be implemented in the company, we would have stopped there. We started here, and that would go all the way across now. So that would be just all the way across, and so some people would be thinking about some time management some of the time. But me, pig-headed determination, I taught the program again the next week. And the skill level went up a little higher this time, because it was the same concept. Right? How many times do you have to retrain on the same thing to get good at it? How many times - how many months did I work on that gold service to get it working in that company? Anybody remember? 6 months; the same six things. But it works like a champion race horse, now, and it's an integral part of the company, and I’ll show you all the ways it's helped them; it's just amazing. So again, fall off will come again. That's the fall off of…(audio missing) …off, boom. Now the skill is two weeks, the fall off. A little bit more permanent skill remains; remember we started down here, now we're here. And then teach it again, skill improves again, fall off is not as dramatic, more permanent skill remains. So the secret to great business is continually focus on small, incremental gains. That's the main point I wanted to make yesterday. And then the other point is how much stronger visual aids really help you, and so you should try to look for ways to utilize them, because they're really powerful. That's one of those - you wake up at 3:00 in the morning and go, 'I know just how to illustrate that now.' And it really does a good job, don't you think. Now, I could have stood here - just to give you an example - and explained all this with that screen dark, but you see what just happens to communication experience. Just went down. Studies show - and this factual information that - adding visual aids triples the communication experience for the audience. So every chance you get, you should be looking for some way to illustrate stuff. So let's just look at
some of the challenges - what we call the clutter factor. This is from a study I did for Packard Bell in 1994, and we had - no, it was Thompson Newspapers - and in 1991 or 1992, we did one for Pac Bell, and the clutter factor, which is the amount of commercial messages that the average consumer receives, had gone from 2000 in '92, to 3000 in '94. Can anybody guess what it's at today? From the time you wake up until the time you go to bed, how many commercial messages do you think you see? 30,000. It's grown 10 times. now this is counting - you know, your razor blade has a little logo on it every single thing from the end of the day. So that has created a very different world. Important decision-makers receive more, so if you sell Bto-B, you're dealing with an every bigger clutter factor. And this is the cost to get salespeople - has actually tripled over the last decade. It costs three times more to get your salesperson in front of a prospect, and you have to try twice as hard. Right, 8.4 times to get the average meeting. Now, if you don't have policies and procedures - you had seven; the other guy that was sitting here - if you don’t have policies and procedures that your salespeople are going to try at least eight times, you're dead meat today. So that's what I’m saying. You need - like here's the eight steps we're going to - I have 12. Personally. for our salespeople, we have 12 steps that they're going to do, and it's all, here’s the letter you send, here's the phone call you make, here's the script you're going to do; and again, you're not going to turn around and do that in one week, and if it takes you a year, and a year from now, you've got those things in place, and they’re working, you're going to kill your competitors. Okay, so the bottom line is, it now costs us three times as much to get half the result. So what are we going to do about that, as I said yesterday? Well, you can work harder - and I've literally - I've had Times Mirror as a client. Pac Bell as client, Wells Fargo Bank was a client, Men's Warehouse was a client. And I’ve had situations where I’ve presented this and I said, 'Those are the problems, what are you going to do?' And you had the sales manager of this really huge company, says to me, 'We’ll just make them try twice as hard. We'll make them - they will go eight times.' And that's okay. But my question to you is, can you work smarter? If you stopped and said, 'Wait a second, what could we do, that literally on the very first try, the prospect would say, "What’s that? Huh?'" So again, that's it. A workshop that I do with people - and if you do this; if you sit down with your crew and you say, 'What could we do -' put it on the whiteboard; 'What could we do that would make someone want to talk to us first try?'
I’m going to give you some really good ideas on that. So this is all about working smarter. and let's define strategy as it relates to marketing. Strategy is the long range goal; the overall impact. Tactics are the things you do to get there. So a tactic would be an ad that you place. A sales person making a sales call; that's a tactic. A direct mail piece; that's a tactic. A public relations effort; that's a tactic. Strategy says, 'What do I want all those things to accomplish, and even more importantly -' and you can tell I'm rushing - 'What do I want all those tactics to add up to? So what is the strategic objective of each tactical effort? What's the ultimate accomplishment or ultimate position you want in the marketplace? And how do your tactical efforts - so if I said to you, 'What's the ultimate position you want in the marketplace?' And maybe you guys could think of what that is. Whatever it is. Now I ask you , 'What are your tactics doing to help you get there?' Because a lot of people never make that connection. First of all, they never think of the ultimate reputation they want in the marketplace. And the minute you start thinking about that, it changes what you do at the tactical level. Again, I’m going to point this out; it's going to be so clear. I mean, in my opinion, when you come to one of these events, there should be certain things you go away, that are now different. You go away and there's things now you're going to do differently. This is one of them; is that you're going to operate strategically,. So here's a true story. I was personally involved. Two furniture stores open up at the same time, and over as four year period, this one grows about 10% per year, mostly based upon increase prices of furniture. So you come into this store and they say, 'May I help you?' And you say, 'Yeah, I’m looking for a couch.' And he says, 'Right this way to the couches,' and they try to sell you a couch. Well the other store that I was involved in, the sales people were so - of course they would try to sell you a couch, but they were constantly trained to sell the store. That's just an example of strategic selling. Now, it rarely every happens, but every now and then, you go into a restaurant, and the waitress will actually ask you, 'First time in the restaurant?' Or you go into a store and they say, 'Have you been in our store before?' That's somebody about to sell you strategically, versus sell you tactically, meaning 'I’m going to sell you a couch.' So in this place they actually - the sale people were constantly trained to sell the store. It was the best store; most respected store. Had the best policies, blah, blah, blah. And by the way, a lot of things that this store did, was identical to what this store did. The difference is they taught you it. They took the time to strategically sell you. Like the carpet cleaning company. Here this guy wants to get 30,000
customers and Jay's going, 'Well, you got 30,000 already and you're only selling them once every three years. Heck, let's just - when they call in, let's turn them into people who buy more often.' So that's taking advantage. So I say here, how many people have learned this from me before? Like, the idea of selling strategically? Okay. Handful of you, maybe ten. Then the next question is, yeah, but are you doing it? Because again, it’s one of those things you just have to work at, but the results can be profound. So let's try and make you think like a really great business person. Let’s pretend that you're a military leader, and you have a dozen soldiers. You're outnumbered 10 to 1. And this table right here, you guys are my team; I’m your general, and we're outnumber 10 to 1. So those other 10 tables are against us. Now, let me show you a bad military leader. If I can get this thing to work without being right in front of it. Okay, strategy versus the - bad military leader turns to his troops and says, 'Okay, guys. Good luck.' (Laughter) 'Go fight the enemy.' And yet that's what most businesses do. Really; they deploy their troops, they let their salespeople make all the decisions. They're not using best practices, even though you've all heard at these events again and again and again; and no plans, no evaluation of resources, no strategy; just tactics. So strategy would be, 'Okay, lets’ see. Betty, you're good at this, and Billy, you're good at that, and we're going to go round, and we're going to flank the -' and we start to plan what we're going to do. Same thing with you as a business owner. I’m going to drive this home. Plan, plan, pln. Think, think, think. What are our resources? Who's good at what? Can we outthink the enemy, because operating smarter is way better than operating harder. So let me give you a real good exercise that drives this all home. It's what I call the stadium pitch. Let's imagine that you had this outrageous opportunity; that I could put all of your prospects into a stadium all at once, and you have one opportunity to walk out there and sell them all at once, Who here is ready for that pitch, right now? To walk out the door right now into this stadium, and these are all your customers; you can get up here on stage right now and do a masterful job, and completely sell the entire room? We got a couple of you. There's always a couple of you. But all of you should be ready for that. But let me make it even harder. What would you want to accomplish - what would be your strategic objectives? So most cases, people would say, 'Well, what would be your strategic objective?' You walk out there; 'Well I want to sell them all.' And I’d say, 'Well, is that
all?' 'Well, yeah, what else is there?' 'There's a lot else.' So I’m going to show you like, 15 other things you might want to do in that stadium pitch. But first, let's define the audience. So the top line…(audio missing) …Right now; they're people buying right now. Let's say you sell cars. Right now, there's a two-three percent of any particular product or service -there’s two or three percent who are buying right this minute. They're already - whether you get to them or not, they're buying, okay? then there's about twice as many or three times as many, or four times as many, depending upon the market, who are open to it. Who I know they're going to be buying. The lease on a car is coming up - they're open to it. They - it would be okay, it would be an easy decision for them. And for any product or service in the room, this is the case. Then there's those who are not thinking about it. That doesn't mean they're against it, because that's a separate crowd; they're next. They're not interested. But above them, and usually the biggest part of the pyramid, is those who are not thinking about it. Just hasn't occurred to them. Does everybody understand this; define your audience, pretty much? And then you have those that are definitely not buying ever. So they think. They know they don't want to buy. And I’m going to show you how we - but a great stadium pitch will appeal to the entire pyramid, and it will drive buyers up. It will take the people who are in the not thinking about it category and move them into the open to it category. It'll take all the open category guys, and move them into buying now, and it'll take the buying now and you'll sell them. So here's the real challenge. And this is where you really - now let's make it real challenging. Right before you walk out, I tell your audience, 'Okay, you had to come, but you don't have to stay. So if this person doesn’t rivet your attention from the first 30 seconds, you can get up and leave.' Now that means that if your audience - if we go back - if your audience is composed of people who are definitely not interested, and you start talking about your product right away, like carpet cleaning, you definitely don't think you need carpet cleaning; and you come out there and you start talking about carpet cleaning right off the bat, or your product or services right off the bat, you're going to have a huge portion of that audience walk out. Just get up and walk out. So again, I'd love to ask the people who thought they could come up and do the stadium pitch, if this were the rule, that basically these people have been told if you don’t rivet their attention immediately, they can get up and walk out; now are you still ready to do the stadium pitch? Who's ready? Okay, give me your opening line. Didn’t think you'd be put on the
spot like that did you? Love to have someone run over with a microphone, but that's not going to happen. No, here he comes. (Laughter) Dun-dun dun-dun-dun - oh I thought that was a mike in your hand. Okay, so what do you sell? Man 1: I'm... Chet: It's on. Man 1: I’m a financial advisor. Chet: Okay, so you walk out - good. So all of you guys are his potential stadium, right? Come on, give us your opening line? Man 1: Whether you know it or not, whether you like it or not, you're engaged in a game of financial chess against the financial institutions and the government. But you don't have a chess board, so how do you know how you're doing? (Applause) Chet: Right? Hey. Excellent, thank you. That's a great stadium pitch. Why is that a great stadium pitch? Because it starts off with something of interest to you, not of something to interest to him. So he doesn't walk out and say, 'I’m a financial planner, and I’m here to teach you about financial planning;' because that's his pyramid - is there. He's go people who think they don't need that. He didn't just open up with something that makes us all go, 'Huh?' So I'm going to give you a lot of other examples. Alright, so you better come out hitting home runs. You better come out with something that’s of interest to them, and guess what makes it of interest to them? It's market information. Oh, but before we go there, let's talk about what else we want to accomplish. First strategic objective and again, you guess that know Jay's stuff - and I just need to use this here we steal from each other all the time, but did he do that client versus customers thing? Customer is someone, if you look at the dictionary, it's someone who buys something from somebody else. A client, if you look at the dictionary definition, is under the care, guidance and protection of an expert in a field. Like a financial planner does not have customers, they have clients. That means they're under his care, guidance and protection, right? A doctor has patients, a lawyer has clients. so you should never call - and you hear Jay never referring to customers as customers. They're always clients. And if they're under your care, guidance and protection, you have a moral obligation to be an expert and bring them as much information as you can. So you must be an expert in your field; not just your products or service, but your entire field, and he started with strategic example of
something that's of interest to everybody. So, in the carpet cleaning example, every competitor is pitching carpet cleaning; these guys are talking about the EPA studies of indoor air quality, and how that impacts your health. So his stadium pitch would walk out and say, 'Did you know that 92% of our time is spent indoors, and that now, in most homes, you're environment is poisoned?' That gets everybody's attention. So you thought you weren’t interested in carpet cleaning, but by the time I get done with you ,e very single one of you is going to be running home and calling your local carpet cleaner. So that's market data. And it's way more motivational than product data. That's what l'm trying to tell you guys; that market data is way more powerful, and there’s no example - you all right, Rick? there's no situation - so here's some great - these are clients of Jay's and mine. This is a shoe store in Canada; largest off - what they call off-price instead of discount; they don't like that word - off-price shoe store becomes an expert on not just shoes, which most are not anyway; meaning most shoe stores don’t know anything about shoes. (Laughter) You really have no knowledge. But about feet, fashion, footwear, shoe construction; I mean, you could walk into this store now; these guys could tell you - do you know how many pairs of shoes the average woman has in her closet? They can tell you that? Do you know how much perspiration your feet have in the course of a day? Do you know what impact your shoes have on the health of your feet? There's 214,000 nerve endings in your feet that connect all the different parts of the body. I'm like - feel like Cliff Claven; 'Did you know one other thing?' (Laughter) Could go on here, with - it's a little known fact that your feet sweat a couple of - perspiration a day. Okay, so software provider learns issues facing their industry. I have a telephone, telecom company client right now. They studied their market as per our advice, and they found out that 19 out of 20 of the largest provider of telephone systems are now out of business. You know, AT&T used to have the Merlin system? Not in it anymore. So again, when you walk up to somebody and you say, 'You know what I'm talking about right?' Have you seen that thing they built? It's a masterpiece; it's unbelievable. They have a stadium pitch that will just knock your socks off. But let me go on to show you how it translates to actual revenue. So used to be called unique selling proposition, and that meant what is your unique selling proposition based upon your greatest strength? I’m telling you, that's not half as powerful as the ultimate strategic position
based upon the market trends and factors; meaning that the carpet cleaning guy cleans carpet better than anybody else. Well, that's a hard thing to prove…(audio missing) …only carpet cleaning company that is trained in the environmental protection agency's standards for internal cleaning of carpets. And if you're going to have your carpets cleaned, and if you know that the environmental protection agency has studied that, who do you want to clean your carpets? The EPA study guys or the guys who just say, 'Yeah, yeah, we clean them.' You know. So it strategically positions you so far above your competitors, but you got to know the market facts. It’s funny; I had a company that were in the trucking industry. They sell those wide load signs; you see those on the back of trucks, and all the different signage for trucks. And I go in there - guy's been in the business 37 years, and we had done our research on the industry, and he says, 'Let me get this straight.' And then the son is the one that hired me, and the father was real cantankerous; and he said, 'Let me get this straight,' he says, 'You mean to tell me you're going to tell me more about my business, and I've been in it 37 years, and you've been in this 37 days?' And I said, 'Not your business; your industry.' He said, 'Oh really,' and I said, 'Yeah.' I said, 'How many trucks are there in the country?' He didn't know. (Laughter) 'How many are built every year?' He didn't know. 'How many of them have been cited for violations this past year, because they didn't have those wide load signs?' He didn't know. And I would challenge most of you, if I brought you here and asked you about your business and started to ask you questions about your industry, same thing. How many players are in it? What's the failure rate of them? What it - you've got to know your market place, because it strategically gives you such an advantage. So what market information supports your strategic position? Find the transit motivate buyers what market positions, blah, blah, blah. So like, I got better examples, I'll skim through some of this. But you've got to understand, motivations comes from two factors. One are the problems that your prospects face, and the other are the solutions, and - which one do you think is more potent as a motivator? It absolutely is; the problems are the biggest motivators, but you know you got to have solution. And there are some solution-based selling, but you can take a prospect - who is it, the woman - not to contradict her either. I keep coming up here and contradicting the other speakers.
But she was saying find a buyer, find what they want and sell them what they want. Well, sometimes they don't know what they want. The average person, about their carpet cleaning did not know that the bacteria was building up in their rug, and that they're living in a poison house after six months if they don't have it professionally cleaned. So sometimes it is your job, Again, if they're your client and they're under your care, guidance and protection, it’s your moral obligation to teach them - I just making sure I don't run out of time here. So paying points that motivate your clients. Set up the buying criteria way betters. So the concept here is setting up a buying criteria in which you become the logical source. This is what top producers do. You top producers in the audience; you know what I'm talking about. Financial planner guy; he starting to set up buying criteria. In other words, I could just sell you the car, or I could set up the criteria under which you should buy a car. And if you agree with the criteria, guess what. You're buying the car. So, true story. I go out and I'm about to buy the $100,000 Mercedes, and after three phone calls to the dealership - I hadn't seen it and was ready to buy. Sales guy did not return my phone call. Well, just being who I am, I can't buy from somebody who has that kind of follow-up. A neighbour of mine says, 'Why don't you go check out the Cadillac.' I'm like not really Cadillac - you know. So I go down there and the sales guy's like a rocket ship; fantastic sales guy. He opens the hood of a car, and he says, 'You see those platinum spark plugs? Well, they cost us plenty, but they won't cost you a dime, because this car don't need to be tuned up for 100,000 miles.' (Laughter) I go, 'Really?' He goes, 'You know how much it costs to tune up a Mercedes?' 'Yeah, I do actually?' He reset my buying criteria. He took my current - so if you agree with the criteria - I call it the funnel effect. You should set up a criteria that says - he says, 'You don't have the chess board.' I bet if we let him go, he'd probably set it up pretty good, where you'll be going, 'Yeah, well that's true, that's true, that's true.' So if you agree with the criteria at the bottom of the funnel, you're going to draw a logical conclusion. So what market data? How can you set it up, where basically, you're setting up the buying criteria for your buyer. You understand? So every one of you should have a stadium pitch that goes. 'The five most dangerous trends in your industry,' or 'The five things that every person should know about shoes,' or vitamins, or - and all of that is a righteous set up for what your product or service does. That's not my idea, by the way, I just named it. It's what every top producer does. They set up the
buying criteria before they try and make the sale, and it's so powerful that you cannot compete with them. You better hope one of my clients never has to compete with you, because they will slaughter you if you're not setting up the buying criteria. If you're not an expert on your market place. You can be an expert on your product, and someone comes in, expert on your marketplace; who's going to have the credibility? You can talk about your products, but do you know that there's five trends right now that are occurring in the industry? They're going to totally make your product useless. So your competitor would should them, if they listen to what I’m saying here. So, examples. The health of Americans. I've got a client that has vitamins, and man, it's a great pitch/. And I can stand here and tell you the pitch. But if I first told you that did you know - all factual information by the way - that the fertility of American's has declined by 95% since 1929? In 1929, the average sperm count had a hundred millilitres of sperm per millilitre. I'm probably a little off. Today it’s five million. From a hundred million to five million. We’ve actually - we're on three generations; if it continues at the same rate, man will be extinct. We will not be able to reproduce as a species. Do you know why? Because of the malnutrition of our food. Our products are pumped with bovine growth hormones, and bacteria, anti-bacteria. Our spinach, just as an example, has declined from 250 milligrams per serving, of iron; down to 2.2. You can eat all the spinach you want; you're not going to get the nutrition that you need. Now that's factual information, it's starting to set up where now, all of a sudden, nutrition becomes way more important, because guess what? You're not getting it from the food that you eat. And I can continue to go along that line, and by the time I’m done, every single one of you will be standing on line if this guy was here selling stuff, and you'd buying it. Right, so market information is always more powerful. Home school curriculum provider; and let's think about that pyramid again. How many people here are interested in home-schooling their children? Wow. I got to tell my client. (Laughter) Most people - but how many people aren’t? Show that. It's quite a bit more. Or people don't have children. (Laughter) Not enough hands went up on that equation. So these guys have this - I call it a core story, because every company should have like a core story or stadium pitch that they tell, that talks about the decline of education in the society. You know what the illiteracy rate in America is today? 25%. Here I go, Cliff Claven again. 25%. It's a little known fact. (Laughter) People don't know who Cliff Claven is are going to be like, 'What is he talking about?' But you know what it was is
1828? You'd think it was way worse, right? The average person would think, 'Wow, back then they were really poorly educated. .004%. Only four out of 1000 people couldn’t read. Today, 25 out of a 100 can't read. What happened? (Audience member says, 'Governments run the schools.) That's exactly what happened, and if I took you through stadium pitch, every single one of you would be on their website buying their curriculum, buying the curriculum from those guys and not from the public school system. Setting up the buying criteria. Now they could stand here and tell you what their curriculum is, and it’s good, but they don't create a need. They're not setting up a criteria where you're going, 'Oooh, I had no idea.' Your child is at an extreme disadvantage without that. I'm just - give me like a little - I have another client who sells crime prevention programs, and they're great programs, and I can stand here and pitch them to you, but if I told you - how many people in the audience have already been a victim of some kind of crime or another? You’ve been robbed, or mugged? Half the audience. By the way, in America today, one out of every two people will be a victim of crime. One out of every two. There's a violent crime every 22 seconds. There's 62 million criminal records; and here I go again, my Cliff Claven thing. The point is that when you start showing people that one out of every three women will be sexually - you know; that our children - you know - sexual predators. Oh my god. 386,000 registered sexual predators in this country. It's tripled just in the last three years. In California alone it's like 63,000 or something. Like every county has 1000 sexual predators in it. Now, when you hear that kind of stuff - 3.4 million homes will be invaded this year, where people will break into your home, rob, rape, kill, murder - whatever. 3.4 million cases of that. You are not safe. See, that's setting up a buying criteria. If I stood up here and told you about selfdefence, or ways to protect…
Jay Abraham Mastermind Marketing 17 …yourself in your home, it has very little impact, but I'm setting up a buying criteria. All this make sense? Who here has done this kind of thing already in their company? I know you have. Like, five of you. I'm telling you, if your competitors listen to me you will get slaughtered, becuase it works so well; that's why no client I have has any competition. Because they all set up the buying criteria. They're all experts on their market place. So what about your buyers? What would scare them that's legitimate? Meaning that the guy who sells self-defence, he's on a mission from the Lord, in his opinion; let me tell you. If you knew this guy. He is on
a mission from God. He feels it's his moral obligation to absolutely make sure you all are safer in your homes and in your lives. So what would make them feel uncomfortable with their current position? What market factors would set a buying criteria in your favour? So like I said, you should all something that says 'Five most dangerous trends occurring in the - whatever industry that you're in.' Very powerful. And again, your goals to drive them up the pyramid. So if I walked out here in a stadium pitch, and we used the home-schooling curriculum, and I walked out and said, 'Do you know that our government has deliberately dumbed down the society? And they've actually created what they call a factory -' and this is John Rockefeller started it and Woodrow Wilson made it law, - 'They created a factory society, so that they would have factory workers, because they were afraid they wouldn't have enough people. So they actually made a purposeful effort to dumb down the society, and that's going to hurt every one of your children. And I’m going to show you exactly how they've done, and I'm going to show you exactly how you can combat it.' Now, no-one is leaving the stadium. You understand? I appeal to the very bottom people who would think there's no way I'm home-schooling my kid. Right? They started there, but by the time I’m done, I might have actually moved them all the way up into 'Oh, I'm kind of open to that.' (Laughter) Or, 'I'd like to think about that,' or maybe right into the buying now category. So if you look at your market like that, and you come at a marketing stand point, from 'How can I take the guy who thinks he's against it, and set up some information that makes him go, "Woo, I’ve got to have that?"' Now you're way ahead of the game. These are strategic positions that actually shifted the buying criteria. They change the way we think about how we buy. Okay? Let me give them to you. These are great. It's 1970, and you and I are sitting around, and we're going, 'You know, McDonald's has been so successful. There’s a pizza place on every corner. Must be something we can do with pizza places to franchise them. There's got to be a way we can franchise pizza places. Maybe we can make the pizza really different.' So we do some experiments and - pizza with lettuce on it, and it doesn't really work out. We try some things; it doesn't really work out. Because people want pizza when they want pizza. And then we open the Yellow Pages and there's 300 pizza places in New York City, and only one delivers. And we think, 'Hmm, delivery, that's an interesting idea.' And we call it and we go, 'Yeah, we'd like to order a pizza;' want to see what it's going to be like. Guy says, 'Yeah we got about an hour and 45
minute wait right now.' The light bulb goes off. Pizza delivered fast. Right? So that was the original slogan - you will recall - in fact, it was 'Delivered in 30 minutes or it was free.' Remember that? The original slogan? Pizzas delivered in 30 minutes or it's free. They didn't actually even change the product, they just changed the buying criteria. The shifted the way we think about how we buy. And pizza; the taste of it, became secondary to delivery, didn't it. Meaning, Dominoes was the one, that's it. $9 billion pizza from a slogan. That shifted the way we think about how we can buy. So how can you take my current buying criteria of what it is that you sell, and say it in a way that I go, 'Well, that seems more important.' Here’s another example. When it absolutely, positively has to be there overnight. Who can remember - you probably can't remember, but I remember. In the 80's. It never absolutely had to be there overnight, didn't have - Federal Express was - (Laughter). We got Mike Basche here soon, right? He'll be able to tell us, but it never had to be there overnight. And faxes just became popular in the 80's, and they’ve been around since 1959. You know why they got popular? Because one guy got in front of a whole room of fax manufacturers; let's say you’re all fax manufacturers, and in the 50's, 60's and 70's; and most of the 80's or in the beginning part of the 80's, you had to have a Sony fax to fax. Anybody remember that? You got to be like my age or older to remember that. You had to have a Panasonic fax to fax back and forth, and somebody said, 'You guys are missing the boat.' Who here wants to sell a million faxes next year? Everybody raise your hand. He said, 'We got to make them compatible, where everybody can fax to the same person, then we'll compete on different things.' They did it; fax machines became the way. We all had to have it. So it shifted the buying criteria, and that's what I challenge you to do, because you can slaughter your competition, and just for the fun of it, here's the rules for a slogan. A slogan should describe the product or service, unless the name does. Domino's Pizza lets you know it's pizza, so you don’t need to say 'Pizza delivered in 30 minutes or less.' A slogan should contain a benefit. So what’s the benefit in 'Pizza delivered in 30 minutes or less?' It's going to be fast. Pizza delivered in 30 minutes or less. It should position your company above your competition. That did it for both those guys; 'When it absolutely has to be there over night;' meaning you can take chances with other overnight deliverers, but when it absolutely has to be there, use Federal Express. Ideally, a slogan sets up a buying criteria in which your product or service is the most logical choice. And then I just give them again, but let's keep going. What other important strategic objectives do you have for your stadium pitch? So
remember, you're walking out there, and now you know you already want to drive people up the pyramid, you know you want to set up a buying criteria in your favour. We know we want to make a sale so what else can we do? You want every prospect to think of having your product as a lot more important. So some part of your stadium pitch should be to increase the importance of your product or service. How do you do that with a shoe store? How do you make people think shoes are more important. I'll tell you exactly how; we show them, on the - we call it the shoe holoc-scale where you would fall, depending upon how many pairs of shoes you have, and they show it to every single client. 'Hey, which one is you? Where are you in the shoe holoc-scale?' And then we show them what the average woman has in her closet, and what a woman who makes 50 grand a year has in her closet, and what a woman who makes $100,000 a year has in her closet; and some would say if you want to make $100,000 a year, you better have this many shoes in your closet. (Laughter) Hey, it’s a stretch, but we pitch it every time. Another strategic objective; you want to heighten the interest and importance of your product. Heighten the interest and importance of it, so again, the homeschooling is a great example of that. Man, by the time they're done, there’s just no way you want your child raised in the curriculum in regular schools. Even if you don't want to home-school, you want to subsidize your child's education with the products that they have, which for them, was a mind-blower, and it's one of the things Jay brought to them. It's like, 'Yeah we sell to home-schoolers.' 'No, no, no,no. you guys do a lot more than that. Let's broaden your horizons. Let's appeal to the whole pyramid.' And they understand it really well no; they're a real smart group. Can you motivate your buyers to purchase more? Can you motivate them to purchase more often? Those are your strategic objectives, like, 'What can I do?' We trained the carpet-cleaning customers to buy more often. It was a strategic objective; we implemented it masterfully at the tactical level, and now it's stabilized the company like never before. He know, in January, he's going to have 2,000 people cleaning their carpets. the other guys; they don’t know if anybody's going to clean their carpets in January. You understand? Okay, gold service totally pre-empted the competition. Here’s another one; find out what the competitors - too complicated. How can you create - (laughter). Nah, it's like - they cut me by a half hour so I'm going to make sure I get through all this. How can you create brand loyalty at every turn? That's a great strategic objective. So the carpet cleaning company, again,
they're desire was to create brand loyalty, and they do a wonderful job at it, by showing you they’re the only EPA you know - not approved, but the only one that has studied the EPA. And in fact, by the way, you call there and they don’t say, 'This is us and we're great.' They say, 'Well, whether you buy from us or not, let me just tell you the three or four things you should really look for in a carpet cleaning company.' And then they set up the buying criteria. You understand? So every one of you here could say this. 'Look, whether you use me or not, here's five things you should make sure you have in someone that's providing this kind of service.' And then you set up the criteria. How can your competitors compete? Imagine having this conversation with one of these carpet cleaning guys, and you go, 'Okay, alright.' Then you get the price and you get back on the phone with somebody else and you go, 'Well, do you guys comply with the EPA standards on internal - carpet cleaning?' 'EPA standards? I didn’t know they had standards.' (Laughter) 'Thank you.' You know what I’m saying? You set up the buying criteria, you cream your competitors. What are strategic objectives? To make sure they never want to buy from anyone else - I already said that. And then what are you going to do at the tactical level to assure you're implementing it? I already said that yesterday; be pig-headed and determined as heck. Make sure you're implementing at the tactical level, it's really powerful. Have mandatory weekly meetings without fail. Constantly install the three P's; that's how you have a great company; that's how, like I said, you better hope none of your competitors listens to all this stuff, because they will just - I think I even have a panel on that. Here's some more objectives. Do you want to be the most respected company in your market place? If that's a strategic objective, that means somewhere at the tactical level you've got to be doing something that deserves their respect. You understand? Do you want to be the most popular? I’ve run magazines and I can guarantee you I always ran the most popular magazine in my industry. How do you be the most popular? Throw the best parties. Hell, we bust people out to bars, we'd have a ball. And we were the most popular. We'd walk onto the trade show floor, and all the attendee of a trade show would be clamouring to my people, because they knew we threw the best parties. It was a strategic objective implemented at the tactical level, with as masterful degree of precision. Most sought after for information. That's a great strategic position. We used to, for my magazine, publish the only trade show calendar. Otherwise if you came into the industry, you had to call all the different
trade shows and try and find out when this one - we published it. We'd call the trade shows for them. And half of them were our competitors, because most trade shows….are put on by magazines. And we published the thing, so every media planner in the industry was calling us to get the trade show magazine. Every company that came into our industry was calling us to get that tradeshow calendar, and we got all the leads before anybody else. So what are your pre-emptive ways of trying to be - this is a wonderful strategic objective; most sought after for information. Be the best supplier of information for your whole industry, including if it means giving them information about your competition. Most educational; same thing, really. Other objectives. Build customer loyalty, generate referrals. If that's a strategic objective, that means you need to be doing something a the tactical level, and you heard like, what? 40 of them? How many different referral ideas did you guys hear? It has to be executed at the tactical level, if it's going to be - pre-emptive positioning. Okay, so this is another one of those visuals that tells a huge story in one panel. It's one of those, you wake up 3:00 - 'Ah! I’ve got it.' Okay, so this is kind of like a summary of everything I’ve shown you so far. So, what's your story? What's your stadium pitch - or I call it the core story. What is the core story that you would tell every single customer if you could get the chance, if you could accomplish all the things I’ve already shown you? If you do that, you will kill, you will kill your competitors. What's your strategic position as a result, because then that's based upon market conditions? I'll be done in time. He's showing me the sign. Develop - crystalize the identity, which means that when it absolutely, positively have to be there overnight, what's that actual slogan? Build a great core story from the core story will become an awesome strategic position, and then how can you succinctly summarize that strategic position. Having clients instead of customers dictates a different approach or business philosophy, because all your strategies will dictate a more advanced business philosophy if you have clients, because they're under your care, guidance and protection; means you need to be an expert, you need to be the most educational. As we've already said, set up a criteria in which your product or service is the only logical choice, an then it's time to get customers. So these are what I call the super strategies. Like, before you even think about getting customers, these are your super strategies, all across the top. That’s like 'Let's get our plan before we deploy a single soldier. Before we deploy a
single bomb on the marketplace; before we do anything, let’s me ready; like anybody comes up against us, they're going to get slaughtered.' And then these are sub-strategies. Targeting buyers, stacked marketing, testing concepts; teach you a concept called Seven [unclear 2:29] marketing, setting up standards and procedures, causing constant improvement, database marketing - that's all another seminar. Now you're ready to deploy more specific marketing weapons, but let me give you like a sub-strategy. So that one over there on the left; it says targeting buyers, that's the last concept I’m going to give you. Targeting buyers, stacked marketing - (mumbles). Just try to do this and not run out of time for you guys. Okay, so this is what I call targeting best buyers. Jay's referred to it several times. A couple of other people have. It's called the Dream 100 sell. Who are the most ideal buyers, because this is so profound that I have literally doubled the sales of every company who's listen to me smaller ones; you can't double Wells Fargo, and they don't listen to you anyway. (Laughter) It's true. But the point is, a smaller company - now small, I mean - I’ve helped $30 million companies double sales in a year, just using this one concept. So you guys are three and four and five and seven and ten, easy. And by the time I’m done, you'll know it's true. So who are your moist ideal buyers? Let's see. Examples. Successful, they have the money to spend if they want or need to. Let's do a profile right now. What would be your ideal buyers; the dream clients that you'd want to have? They want or need to buy. The geography; is that important? Do they need to be in a specific place? Size of sale. When they buy, they can buy big time. Repetition of purchase, meaning there's people who are going to buy frequently. So who are your most ideal buyers? Let me get that microphone again. Hello? No, just kidding. What kind of company do you have? Man 1: Marketing consultant. Chet: Marketing consulting. Pass the mike back. I want to get a specific example. I'll come back to you - several of you. What kind of company do you have? [Inaudible 2:28 7]. (Audience member says, 'The mike is not working.) Okay, business immigration, immigration attorney. Okay, I can do a nice job for you. Pass it back. What kind of business are you in? Man 2: Direct sales. Chet: What?
Man 2: Direct sales. Chet: Sorry? Man 2: Direct sales. Chet: Direct sales. Okay, thanks. Pass it back. Man 3: Software and marketing. Chet: Okay, so are you an entrepreneur, independent owner, or you work for a bigger company? Man 3: It's a combination of the two. I represent a software program for another company, and then I do the marketing consultant... Chet: Okay, so in that software that you sell, how many total potential buyers are there? Man 3: I manage a twelve state region. In my twelve states I’ve got a database of about 25,000. Chet: Potential? Who are the dream ones? How many dream ones are there? Like the most ideal of that 25,000? Man 3: Within the 25,000, when you break it down; within the industry, the majority of the agencies are around five, six users. 20% would not be our group that we would go after for the software program. Those would be your 1500 users. We would be looking for the smaller agencies. Chet: Okay, so you're after small ones. Man 3: 75 and under. Chet: Okay, pass it back. Man 4: I’m a chiropractor. Chet: Okay, I'll work on you too. Pass it back. I'll adjust you later. No, I’m just kidding. (Laughter) Man 5: Small business coach. Chet: Okay, pass it back. Woman 2: One stop engineering and manufacturing of your product. Chet: Okay, pass the mike back up. Alright so, I’ll just try to make examples of that, but I was trying to find somebody who has a specific situation, which I'll show you one right now, okay. I took over a magazine.
There were 2000 potential advertisers in the database, and the previous publisher of the magazine hadn't gone after all 2000 all the time, and I did an analysis and its Fran Tarketon's 95/5 percent rule; it was absolutely right. 167 of these guys bought 95% of the advertising in the industry. Forget the rest. We didn't even want - twice a year we'd mail to them. But that 167 who had virtually never heard from me were now hearing from us twice a month at least, some of them three, four times a month. So the whole concept of the Dream 100 is usually there's a smaller number of potential buyers that can buy a lot more. Every market has a smaller number. Now, if I were a chiropractor, or a - if I were an immigration attorney or if I were a financial planner, your Dream 100 are people who can really afford whatever it is you want to sell. Chiropractor; if I wanted to become famous a chiropractor, or a dentist or - there's a lot of professionals in the field, I would target the best neighbourhoods in my marketplace. I'd target the people who can absolutely afford to buy what it is. I just gave this speech at a big dental convention; there’s a bunch of dentists in the audience. But you guys heard me say this; my neighbourhood, every single house in the neighbourhood - I got complaints about this same saying I was bragging. I’m not bragging, I’m just trying to make a point is, they’re expensive homes and so the real estate broker that we're using; because now we're looking to move to a different neighbourhood; she decided once upon a time she'd going to target these 2400 homes in this one particular area, and every month we'd get something from her. And so she has what I call 'top of mind awareness.' So when we were ready to buy, I went right to this woman. I wouldn’t even think about anybody else, because for 10 years, I’ve been getting these flyers. And then she comes in and she shows me her book in the neighbourhood, and she's paging through it and there's every single house, practically, in the neighbourhood has been sold by her. Once; many of them two and three times. Who would you list your house with? So she took the Dream 100 now - again, if you want to make yourself famous, as q chiropractor, you'd go to the mayor, you’d go to the CEO's of the biggest companies, you'd go to - so sometimes the Dream 100 is particular influential people, more than it is a particular company, depending upon what it is. So, like a fellow came up to me yesterday, and he's trying to establish himself as a physical fitness guru. He wants to have a whole chain, blah, blah, blah. Target celebrities, offer it for free for three months, or target the CEO's of the biggest companies, target political figures. So Dream 100 means the people who can make you famous. Because when other best
buyers buy, other best - best buyers help you gain faster social acceptance. So when we started getting some of the bigger advertisers in this particular niche where we had none when I got there, all the others started looking: 'Oh, my competitors are there.' And before you know it, we had - that's one of the magazines I double the sales in 15 months, and then I doubled it three more years in a row. You had to see Charlie Munger, billionaire, looking at me like, 'Nobody -' he literally said to me, 'Are you sure we’re not lying, cheating or stealing, because nobody doubles business three years in a row.' (Laughter) So this is exactly what he sounds like, too. And he just couldn't fathom it. He couldn’t fathom it. But it was Dream 100 sell, and these guys were just in their face. So this is just an example, I shall skip over. But this is - these are law firms and I had a client that sold law books, which you have no idea how huge that business is, because lawyers got to have law books. And unfortunately, there’s way too many lawyers, and they continually create more law, so there's more law books all the time. And every other law book salesperson is down here in the [unclear 3:35]; you see it says 'Librarian' down there, and 'Acquisition Directors?' And they lost their ability to sell at the managing partner level, so I put together a stadium pitch. We called it 'Free orientation on the five most dangerous trends facing law firms,' and then we called the top five law firms in the community. We said, 'Yeah, we're over at Scatton Arps presenting this, and we're over at Munger Talls presenting this, and we're over at - we just thought you guys might want to see it.' And when you start talking about how your competitors are seeing this free seminars on the five most dangerous trends, that everybody wants to see it. You understand It's creating greater social acceptance. So mark your marketing calendar. What are you going to do to market to your Dream 100 every single month without fail? And think about this, guys. 167 people. How much would it cost you to write them a letter twice a week? Twice a month, rather. $100 a pop. So the beauty of it is, that while you're doing everything else you're doing, pick your dream clients and decide that you're just going to hit them every single month. And a year from now, every one of them will know who you are. And how much did you spend? $100 a month. It's the least expensive, most impactful think that you can do. That's how I've taken companies and doubled their sales. I’ve got a client who - he also shares as a client - Andy Sears is a client. Telecoms systems company, and they've been going after every single person who buys telephones in their area, and they've had thousands of
clients; little, 22 phones here, 14 phones here. Like, 90% of their clients are little tiny companies. I said, 'Forget them.' So we built a database of companies with a hundred or more phone systems, and in six weeks I got them more business in paly than they did all last year in their whole annual sales. Because every single prospect is a dream 100 client. So every deal that they got - and remember, there's always people buying now. So just by hitting that list hard, we hit them six times in six weeks- I think I actually say it here. So how do you go from 'I never heard of this company,' to 'Who's this company I’ve been hearing about?' to 'I think I’ve heard of that company,' to 'Yes, I’ve heard of that company,' to 'Yes, I do business with that company.? It's just consistency, and you need to make a concerted effort. But this is what's amazing to me. This is so obvious, it’s so clear, it's so easy; and yet you’ll come out of here and not do it, and it could just double your sales. I know, I've got three minutes left, right? He's giving me the evil stare. So there's virtually no-one you can't reach. Recent practical applications....more dream 100 thinking. Since the Dream 100 is a much smaller number, usually, you can do much more. So the other thing we do is send them a gift. By the way, if you guys have not discovered orientaltrading.com, you can go to this website, right? And you can buy cheap crap by the tons, it's so cheap. You get flashlights, 12 of them for $4. With the battery. (Laughter) I’m serious. So you take the flashlight and you buy a hundred of them, and you send them to your clients and you say, 'Use this flashlight to light your way toward better financial planning.' And they go, 'Oh cool, a flashlight.' And he throws the letter away but he keeps the flashlight. Then next week he gets a whistle with a little bracelet thing - I know, because we just bought 700 of them for $172. (Laughter) 700. 'Use this whistle to blow off your current provider of suchand-such, because...' 'Blow the whistle on your current provider.' So every single month, send a gift, send a charge key, send an educational tape, send a report; and there's none in the world that within three months, they don’t know who you are. I’m telling you. We’ve got it now; we're starting to get a point, and its left and right with companies, left and right. And even cases where the guy goes, 'I’ve got every one of your promo pieces, I’ve got every one of your gifts, and when I’m ready to buy, I’m telling you right now, I’m coning to you.' (Laughter) They'll tell you that, because they’re impressed with it. You know why? Because nobody else does it, and it's so simple. I almost don’t want to give it away so you don’t end up competing with all your - all your competitors start giving away whistles and - go to orientaltrading,com. I wish I owned apiece of that company; I've just never seen anything so cheap.
Stand out in the crowd. Send them a gift every single month, invite them on mass teleconferences; great concept, which I don't have any time to teach. What’s it say? Interview them for your magazine - oh you don't have a magazine? Real easy today; you can have an e-zine. Should have an e-zine for your industry, and every client I have has one, including our shared client there that you know, Andy. They now have a magazine. Superior access fee, [unclear 2:34], making the sale easier. What's easy to sell than what you sell? What's real easy to sell? Like, it's hard for you to call me up and say, 'Hey I do financial planning.' That's hard sale to make. So ask yourself the question, 'Well, what's an easy sale to make? 'Hi, I do a free seminar on financial planning.' That's easy. So the next question is, 'What's free, and easy to sell?' Because you've got to sell it no matter what it is, so let's make it something real simple. Don’t try to sell your whole - I stop clients all the time trying to make the big sale. Let’s make a tiny little sale and get in there. Something small. Some ideas for superior access, free education, those are examples which I’m not going to have time for. Free audio tape that teaches them how to succeed. Jay and I have done some wonderful deals there, where we'll actually interview the owner of the company, and they’ll teach them - out of time, right? What could you sell? Blah, Blah, blah. Okay, summarizing my two sessions. Last three panels. Be the strategist long before you move out your tactics. Make you tactics work much harder, plan before you execute, think before you leap. You can just see it guys; if you just stop and think a little bit, you could just slaughter your competition. Hold regularly scheduled meetings at least weekly, with each area where you want improvement. Put it on the whiteboard and say, 'I want three ideas to make this better,' from you staff, and if you don’t have a staff, put on the whiteboard and say to yourself, 'I want three ideas to make this better,' then put a policy around it, a procedure around it, and start implementing it as if you have ten people. Keep memos. Every single time you have one of those meetings, you keep a memo and so you can actually have 52 weeks; you're going to have 52 pages. Anybody comes into your company, they can read 52 pages and know everything you've done in the last year to improve the company. It's just so beautiful. Let’s see. Set the buying criteria. It's way more strategic and powerful if market factors are presented before you ever present your product or service. Find superior access vehicles that give you easier access. Dream 100 are the best buyers, man. Fastest, easiest way to grow your company. Again, the real secret; be pig-headed about implementation. The thing you better hope never happens - I’ve said it
five times - you better hope your competitor never does this, because they will absolutely slaughter you. It's the guy who's more strategic will kill the tactical executive any day of the week. So you will absolutely slaughter them if you're strat3egic enough to do these things. This is the kind of muscle you need to get to a hundred million. Jay, without his suit. (Laughter) How did that get on there? Thank you, I’m done. (Applause) Ah, thank you. (Music plays) Thank you very much. Thanks. Honoured to meet you, honoured to meet you. Rick:...couple of minutes. As you can see, you were [unclear 5:36] mind opening, mind blowing segment of the event. Now we’re into something even more powerful, which is the concept of strategy. We're trying really hard, I know. So imagine that for one hour, you got to listen to, take notes from one of the engineers of the FedEx Express group. And imagine that that person was on the front line, in the trenches, as the [unclear 00:42]. ...also to the innovations as a part of that endeavour. But - and I don’t know whether he's going to talk about that today or not, but it's an interesting concept to be able to spend an hour with the man with that level of insight, and experience. So with that said, I’d like to introduce one of my favorite Jay Abraham associates, Mike Basch. (Applause and cheering) Mike: Thanks Rick. Thank you. Hello. (Audience replies ,'Hello') Are you having fun yet? (Yeah!) I didn't hear you. (Yeah). Oh this crowd's go to get lively. Are you having fun yet? (Yeah!) Alright. I got to tell you , I’m embarrassed to get up here and say this, but I’ve sold out. I’m a prostitute. (Laughter) Guy came up to me - Dan O'day, where are you? Everybody see Dan O'day back there? He's an expert in radio advertising, and he came up to me at some point, and he said, 'Look Mike, I'll give you a dollar if you refer me during the conference and during your talk.' (Laughter) And worse yet, he didn't even give me the dollar yet, I had to get up and do it before he gives me the dollar. (Laughter) Now, did I do that because I wanted the dollar, or needed it? No, I did it because he's creatively - he's thinking about what's going on in this conference. (Laughter) Thank you Dan. (Applause) He's thinking about what's going on in this conference, and figuring out how to creatively apply it. And he applied it. Isn't that terrific? Congratulations for being here. I’ve been to a lot of Jay's conferences. This, to me, is the best that I’ve been to so far. I got to tell you, it goes back - I don’t know how many years; 10 years. I paid $25,000 to come to Jay's conference, and one thing. That’s all I took out of it when I first started. That paid for it. I think I closed like $150,000 business two weeks later.
I had been given speeches or tech talks the executive committee, which is groups of CEO's around the world; there's like 3000 groups, and I’ve been giving two, three a week - there's a tech member, thank you very much, I’ve been giving two or three a week, or actually two or three a month, four a month. And I’d give like 10 tech talks before I’d get any consulting business. At the time I was in consulting. Came to Jay's conference; it was after I'd left Federal Express. Came to Jay’s conference, and I just heard one thing. Risk reversal. You heard it. And Jay has a special twist to it, because he includes the benefit in the risk reversal. So I'd give a three hour tech talk, and I gave many, many of them, and as I say, one out of very many then when I get some business. Went to Milwaukee, gave a tech talk - I only changed - in three hours two things. I came up with a USP and it was a little unique, but more importantly, about halfway through, I said, 'Look, give me eight of your employees, and if they won’t show you how to incredibly improve your customer service, don’t pay me a thing.' so it was about getting employees together to solve the customer problems. I'll explain why I took that approach. I closed Harley Davidson, a major hospital in Milwaukee and a major insurance company in that one session. That paid eventually; it was like $300,000 worth of business, but that paid for Jay Abraham. Then there’s another story. Guy named David Leopard. He came here - he came to Work out - no, came to one of the Mastermind programs, and he came about six years ago. He's a drywall salesman. And he then - he heard me speak, he heard a lot of people speak, and so what - but any rate, we ended up with a day together, and I helped him - he had a concept, an idea. And the idea was, 'Let’s form a cooperative of drywall distributers.' He was a drywall salesman selling to distributors. He knew that when he sold to Home Depot, that they got a much better discount than the smaller distributors. So he said, 'Let's start a co-operative, where we joint these distributors together, and we give them a discount so they can compete against the Home Depots of the world.' At that time, when he came up to see me in Vermont where I live, he drove up in his Volkswagen bus, he was kind of trying to sign members on the way. He was camping out in the bus, because he didn’t have enough money for airfare, hotel, and he made his way. Today he’s driving a - actually his wife's driving a Lincoln Navigator; he's driving a BMW. And he this year will return $14 million to his 120 coop members. At the same time, he got me involved throughout, and we started - he started a company called Co-operative Solutions. It's a
company that basically forms cooperatives, and if you don’t know what a cooperative is, to me it’s the best model of today's age. I believe that the small business person has a franchise in this country that I hope never goes away. I've worked for big companies, I’ve worked for small companies, and I love the passion of the small business, and you all fit that mould. And what the cooperative does is it allows you to compete against the big business. It's interesting that today; David’s company called Hammer Rock is cooperative. Actually accounts for 12% of the drywall sales in America, compared to Home Depot's 5%. Who do you think gets a better price? It's good stuff. Now, one of the cooperatives he formed was Ya-Ya Bike. It's a cooperative of bike stores. I’m the CEO of a Ya-Ya Bike. David got me so excited about the model, he said - timing was right - 'Come on board and run one of our cooperatives.' So I'll talk a little bit about that in a minute. Before I get started on customer culture, which I’m going to talk about in just a moment, I’d like to tell you a story. It's a story about two woodchoppers in a Northern Minnesota community. And these guys had been chopping wood all their lives, and they were in a bar. And the way guy was Paul Bunion. Huge man, incredible wood chopping skills, and the other guy was a small wiry guy. And the small wiry guy had lived in that town all his life, and Paul Bunion had all the press. He was by far and away, respected as the best wood -chopper in town. So the little guy goes up to Paul Bunion, and he says, 'Paul, I can whip you. I can chop more wood any day than you can. I challenge you to a contest.' So they decided on the contest the next day. From 8-5 they both chopped wood; they'd have people carry it away, and then at the end of the day, whoever had the biggest pile own. So they start the next morning. Paul Bunion's going, 'Whoom!' And the chips are flying, and they're huge chips and he’s incredibly powerful. And the little guy's small; he's wiry, and he's very quick - little chips are flying everywhere. And about - an hour goes by; it's about 9:00. And the little guy takes a break. He goes away for 10 minutes; goes into the wood shop., or whatever building was there. And Paul says, 'I got it now.; And he just keeps - 'I'll just go all day, he doesn’t have the stamina to keep up with me, so I’ll go all day. I won't take lunch, I won't -' and he keeps chopping. The little guy comes out about 9, 10, chops for another 50 minutes; takes another break. Does that all day long. Lunchtime, take a break. goes into the wood shop. End of the day, 5:00 comes. They both go around the side of the building to see who's got the biggest pile, and the little guy has got the biggest pile. Paul Bunion goes to him, he said, 'What did you do? How did you win?' And he said, 'You know when I was taking those breaks?'
'Yeah.' 'I was in the wood shed sharpening my axe.' (Audience says, 'Oooh.') And isn't that what these types of things, and this is about? Is sharpening your axe. Or better yet, getting a chainsaw. (Laughter) And that's what it's about. So we're going to - you know, there's so much you can get out of this, but I again, you've heard it before. My belief is, you take one idea, like I did, just risk reversal. Take one idea, try it, that gets you success - enough success to pay for it, and then you take other ideas that you've got to move with. Now....whoops. The wrong button. Should be okay. For some reason my slide show is not turning into a slideshow. I could do the - I could just put this thing on the thing and go through it. Ahh, new show. Excuse me a minute, while I...work this out. Yeah, no the monitor’s fine. That's fine too, as long as I could have the ability to show the show. Could you come up here and give me a shot? First time I’ve had this problem. At any rate, what I’m going to talk about today is customer culture. My opinion: culture drives everything. What do I mean by culture? I mean, it's how we think, it's how your employees think. One of the things we did at Federal Express in the beginning, is we created a customer culture, and I’ll talk a little bit about how we were able to do that. It was done mostly by accident, rather than design. I'm going to talk about Patty Lund in more depth. You heard tha interview with Jay, and Patty has developed what I consider the best customer culture in the world. Now, I haven't been to all businesses, so some of you may have a better one; but he's got great one. He's got what the calls' the happiness-centred business.' He said the goal of life was happiness; let's create a business where we can be happy and our clients can be happy. You want to - what if you quit out of - okay. Isn’t technology fun? No, that won't do it. Quit out of the - it's the application that's giving us the trouble. There we go. Everybody stand up a minute. (Laughter) Twist and turn or do whatever we need - could we have some music while we get this fixed, please? (Chatting between Mike and Rick) Okay, we're ready. How many of you have read the book 'Even Elephants can Dance?' Anybody? Even Elephants can Dance, by Louis Gertsner? Great book. Now, I'm in a small business now, I’m not in a big giant business, but I’ll tell you Lou Gerstner has basically turned around the biggest giant in the world, and totally got them back on track strategically, and then tactically, so they're back in the leadership position they were in years ago. And the book tells how. This is one of his comments in the book. 'I came to see, in my time at IBM, that culture isn't just one aspect of the game, it is the game.'
In the end, an organization is nothing more than collective capacity of its people, to create value. So that's what we're going to talk about. How do you do that? Here's my definition of customer culture; and I’d use client, and I thought a lot about using client, but client in Jay's lexicon and anybody who works with Jay, understands the difference between client and customer. Most people don't. so my book is entitled, 'Customer Culture.' It's an environment where the natural focus is on meeting the needs of your external customers. Now, what do I mean by that? I mean, the janitor cleans the floors so that when your customers come into your building or your shop or whatever else it is, you've created an image of professionalism. The people who answer the phone create an image and a smile in their voice or whatever is required in your business, to focus on that customer. Everything's focused on the external customer. Now with that definition, how many of you now believe you have a customer culture in your business? Good. More than usual. Thank you. So we're going to talk about it - that’s what it is. How many of you would like to have a customer culture in your business? Okay. And by customer culture, I mean if you're a one man person, or a one person show, it's the same thing. Now, I am going to cover several things. How FedEx achieved a customer culture. I identifying and meeting customer needs. Little bit different than you've seen so far in terms of how you see, how you view what those needs or wants are. As Jacquie said, benchmarking well-known companies; customer culture system. Steps to building it and then finally, a wrap-up. Now, I want you to go back with me 30 years. Man y of you have probably heard this story, or heard tapes of it. March 12th 1973 is when new started Federal Express officially. I had been with the company 6 months before that. Joined September 20th 1972. And we had worked - I was senior vice president of Sales and Customer Service. My job was to sell and also do the pickup and delivery. So I spent three months hiring, and we started doing, in January 2ns; we started selling, the 28 salespeople in 10 cities. Basically from St. Lois, Missouri, down to Jacksonville, Florida, and Memphis, and Little Rock, Arkansas, and Atlanta, Georgia, and those kind of cities. And basically, we'd been selling for two and a half months and expected for a while about the middle - and I have a conference called every day. We'd expect that I’d have a flip chart, and I’d record all the packages we were going to get, and the volume was - we're going to do 3,000 packages that first night. That was really good. Except for one thing. We had little
airplanes, because we had to fly under an exclusion - I don't know whether you know it or not, but Fred Smith single-handedly- the founder of FedEx deregulated all transportation in the United States by going to Congress and de-regulating air first and then trucking came late. So at any rate, we had to fly these little airplanes; they held 300 packages each. They were an executive jet, that we converted into a cargo plane. And we had basically ten - we had bought 23; God knows how, because we didn’t have any money; but Fred - you know, we talked - Brian talked yesterday about everybody's a sales person. Fred Smith is the ultimate, consummate salesperson. So he convinced General Electric to not only buy these jets but 500.000 a copy to make them into carbon. It would have cost him another 500,000 to make them back into executive jets, but he convinced them. So anyway, we had 23; we had 10 in service. Those 10 in service; six of them were for working with a post office, and we had basically three dedicated to this thing that would start March 12th; this package service. So 3,000 packages; each one will only hold 300, so that wasn’t going to work very well, so we had to - you know, if I believed the 3000, that means I’d have to take all 10 jets and put them into service, assuming we could fill them all up and do the first day and serve the customer. So I started asking more in-depth questions, and I found out that sometimes sales people lied to you. (Laughter) They tell you what you want to hear. Like, I asked a guy in Memphis, and he said, 'This guy's going to give us 20 packages a day.' I said, 'That's terrific. What business is it?' He said, 'Bricks. He makes bricks.' I said, 'You're going to ship the bricks to architects?' And he said, 'No, he's going to ship them to the construction sites.' I said, 'Somebody's going to pay $100 to bring five bricks to a construction site? I don't think so.' (Laughter) So, we got it down, through those questions, down to three- we're going to have 300 the first night. Perfect. Fred Smith, myself, others; had been thrown out - and we'd talked to venture capitalists already, but all of them said the same thing. 'Look, this is a great concept, maybe, I don't know.' They'd kind of snicker. And they said, 'But when you get into business, come on back. When you can prove customer's really going to do something - ' because as Chet said, back then, who cared about overnight service? Nobody. Because the habit was - it's called known problem, unknown solution. Do you know what I mean? I got a problem; sometimes I want to move things in a hurry but there's no way to do it, so that problem's in the back of my head. So, latent need, so to speak. And that was the need back in 1973 of overnight package service. So, - 'When you
get into business, come tell us, and you can prove the customer need.' So, okay. So a bunch of us, lawyers, Fred, myself, Roger Frock, the general manager; we all went to New York City that day, March 12th. We had appointments all over New York City the next day with venture capitalists. We're in business now, we've got 300 packages the first night, we're all excited - 'Now invest with us.' We had about 30 days cash left, and we're out of business; we're out of cash. So we get up to New York, got into the Yellow Club, where Fred was a member, and signed in and I went up to the room and called down to Memphis. And I said, 'John, what’s the package count?' He said, 'Are you sitting down?' I said, 'Should I be?' He said, 'Well, there’s good news and bad news.' I said, 'Give me the good news first.' He said, 'Six.' 'Six what, John?' 'Six packages.' I said, 'John, what could be the bad news?' He said, 'Four of them were from salesman and only two from customers.' (Laughter and groaning) Now, can you imagine - talk about mind-set, right? Going to see investors the next day, and convincing them they ought to invest in this bust. Talk about dot bomb; this was FedEx bomb. In fact, a while later, about 6 months later, I think, Business Week ran an article: 'Federal Express takes a nose dive.' They should have been there that first night. (Laughter) Because if you can picture this; we used a lot of Jay's techniques then. We had the Wall Street Journal down in Memphis, we had local TV, America had a new airing; first new airline in 20 years, and then all kinds of press, and then we come up and say - you know what, if you can imagine these two airplanes, and the hub ant he equipment and the lights at night, and everybody's out there, and the pilot lands and said, 'Here's the package.' (Laughter) Incredible. Counting the car - we got in the cab to go - oh, and then I went down to Fred’s room, and I said, 'Fred, here's the good news and bad news.' And he said, 'How's your resume look?' (Laughter) He said, 'We're both going to get our resumes out and see what we're going to do next.' You know, we talked - I think it was Brian that said you've got to fail so many times before you succeed. I remember they asked - somebody asked David Glass, the CEO of Wal-Mart, how would you describe [unclear 7:35]? And I said, 'What made him so rich, and so powerful, and so -?' And he said, 'He could lay off at failure.' He said, 'The first store we opened,' he said, 'It was like a 110 degrees out, we had watermelons all over the place; nobody showed up to the store. The watermelon's exploded because of the heat. It was a total disaster.' (Laughter) And Sam comes in the next day; he said, 'Okay, that
didn't work, what do we do next?' And that was Fred, by the next morning. He said, 'Okay, fix [unclear 8:02]. We're in the trenches now, let’s make it happen.' So we went out and we got kicked out of more venture capitalists that day than ever, I mean, they kind of snickered when we said - they said 'Well, how many packages have you had? You told us you could -' 'Six.' We fudged that a little bit. We said six. So the problem was we saw right away, we didn’t have enough synergy, you know what I mean? People had to sort their packages out, and we only had 10 cities. So we got to open up 15 more cities in basically 15 days. So we took four people, put them on a [unclear 8:31], and their job was to go to a city that day, open it up, go to the next city, open up; go to the next city, and so forth. Oh by the way, Friday of that first work, one of the lawyers said to me that next morning; Tuesday morning, March 13th he said, 'Take heart. Nobody wants to do something the first night. By Friday, you’ll be up to 30 packages.' Well, Friday that week, we had one package. (Laughter) I figure that package cost us $500,000 to move, so somebody got a lot of value out of that. If you consider value what it costs. So at any rate, we opened up all these cities, and we had four people at a [unclear 9:06]. And they would land at Rochester, New York - in fact Chicago, Boston, New York City, Rochester [unclear 9:12], Xerox and all these cities, and they'd fly in. One person would go take care of the plane; 'Where are we going to fuel it, where are we going to park it? We're going to unload the freight.' One person find a place for the trucks, another person, the pilot, would actually find a hotel for the people. And then the fourth guy went to a bar - a pub. And he'd go during happy hour, and when things got really wild, about 7:00 at night, he'd go, 'Ding, ding, ding, ding.' He'd stand up on the chair. Said, 'Everybody could I have your attention please? Anybody here need a job? We're hiring tonight?' And people would literally come to his table, sign an application; we'd hire them. Hire fast, fire fast. (Laughter) Anybody know who Christos Kotsakis is? He's the CEO of E-Train. Christos Kotsakis was hired that way at Federal Express as a cargo handler, in one of those early day things. So one of the cities, we wanted to open up. And by the way, we had - that first week, a vision was formulated. I’m not sure where it came from. Very profound, wellarticulated vision. It went like this. 'Get the packages!' (Laughter) Because if we had the packages, we could succeed. We’d get investors; we'd get anything we need. We had to get the packages. And what I learned in those days about customer culture is that when you're clear about the vision. And when there aren’t too many rules getting in people's way; and
I’m going to talk about that in a minute; that people will do go about and beyond to produce what you want to do. Now, that said, each person will look at the vision in their own particular way, and deliver it in their own particular way. But that's what builds incredible customer loyalty and employee loyalty. That was the big lesson. And the way I learned it, was this - we opened up now; we've got 25 cities. Now by the time we got the 25 cities opened up - now this April 18th, about a month later; we did have about 40 packages a night. One of the cities we opened up was a city in Indiana; Wilmington, Indiana. And that city or town, it basically was, only had one potential customer for us. That was RCA. We'd called on RCA corporate, and it said that plant had 20 packages a day into the other 24 cities. So the idea was to get the packages - but they warned us - they said, 'If you fly a plane in there, it's a local decision. We're not going to influence it, we're just telling you what they have and if you can get it, it's yours.' So we scheduled a plane to get in there. Only customer there. So I sent a guy in - salesman in, and I said, 'Look, all you got to do is get the packages from RCA. Do whatever you have to do; get the packages from RCA.' so he goes to RCA and first day, 'I said, call me every day until you get them.' Calls me up about 4:00 in the afternoon, and he said, 'Mike, the guy’s not going to see me.' I said, 'What do you mean he's not going to see you?' 'Well, the traffic manager's not going to see me. I said I was from Federal Express, and he doesn't know who we are; he's not going to see me.' And so I said, 'John, do you have a good book?' He said, 'Yeah.' I said, 'Go in tomorrow, tell them you're going to be there for the next month if you have to be, but you're going to sit in the lobby; you're going to read your book until this guy sees you.' 'Okay, I'll try that.' Calls me up the next day: 'He saw me; he's not going to use us.' I said, 'What do you mean he's not going to use us? You offer him free packages? Did you offer - ' He said, 'He doesn’t trust us. Everybody says they have overnight service, they don’t deliver.' I said, 'Did you tell him about the hub?' 'Yeah, I told him. He doesn't believe us; he just doesn’t trust us. He's not going to use us.' I said, 'And you offered him free boxes, where they could test it?' 'Mike, he's not going to use us.' 'Okay. John, go to Boston.' So John goes to Boston. About two weeks later, we had a clerk named Diane. And Diane's job was tracing. Diane's job was telemarketing, because if you can imagine 40 packages, 300 employees; you shouldn't need a lot of tracing, right? (Laughter) You'll - employ you by packages, right? If you screw it up, you’ve really had a lot of people in the chain screw it up. So Diane's making outbound calls, she gets a tracing call two
weeks after we open up this Wilmington, Indiana. She gets a call from Wilmington about 3:30 on a Friday afternoon. And she answers the phone; first tracing call. And we had an exception system if they package wasn't where it belonged, it was written up on a sheet and given to us, and we'd I invented the barcode tracing system later, to solve that problem. But at any rate, she got this call, and the woman’s crying on the other end. She said, 'I don’t know who you are; I’ve never heard of Federal Express. All I know is my wedding dress was in Jacksonville, Florida yesterday; supposed to be here by noon today. It's not here, I’m getting married tomorrow. This is a small town. It's the social event of the reason for us in the small town. More importantly it's a social event of my life. Can you help me?' And Diane was a mother and related, and so forth, and said, 'I'll do what I can.' So she looked at here exception sheets; they weren't there. So she used the back-up tracing system to call everybody and find out if they got a package that doesn't belong to - (Laughter). So 25 cities, you could do that. So about the 12th city she called was Detroit. 'Yeah, we got this package for this Indiana - it's probably - the only package I’ve ever seen for Wilmington, Indiana. But we got it. Diane didn't have anybody to ask. So she took it upon herself to charter an airplane. A Cessna, a pilot; put the wedding dress on it, and get it down to Wilmington, Indiana. It's cool now; it wasn't cool then. (Laughter) So, she gets the package in. The woman, that Monday morning, calls her up from Mexico. The woman's on her - and back in those days, it was not easy to make a call from Mexico. Calls up Diane, thanks her profusely for this service, told her about the wedding. And then she says, 'Is there any manager I can talk to there, because I’d like to relate this experience?' So I get this call. 'Mr Basch, let me tell you what happened.' And she explains it to me, and I’m writing a note to myself, "Talk to Diane." (Laughter) You know, we can't be chartering planes for every package. So she goes on and she says, 'Mr Basch, I got to tell you. There's good news and bad news.' I said, 'What's that?' 'Well, the good news is, I got the wedding dress.' I said, 'What was the bad news? Was it wrinkled? 'No, it was wrinkled but ironed it; that's not a problem.' She said, 'The bad news was, I wasn't the subject of attention at my own wedding. Everybody’s talking about his outrageous airline that has a plane for my wedding dress. I told one person, everybody else was telling everybody else. Pretty soon, there's a buzz going around everywhere.' So okay, that's cool, but still, I came from UPS. I mean, UPS doesn’t do those things. (Laughter) Especially in those days; they do now, because Federal Express is in the business. So I go down to Diane. I said, 'Diane, tell me why you did this. I mean, we can't afford $300 for every package
that gets mis-rounded.' And she said, 'Look, you said get the packages. And now what we been saying? Get the packages. Well, to me, the way you get the packages, you give outrageously good service to a customer that's got a problem, and they'll tell others and you get more packages.' Makes sense doesn't it? Not to me it didn’t. (Laughter) So I'm pressing here, right. I'm saying 'Diane, come on. I hear that and that's fluff, and I don’t think we can afford that.' And Diane, out of total frustration, said, 'Well, we're going bankrupt anyway, what's the difference?' (Laughter) Oh, we did it again. I guess when it goes on, I should have set the computer to - but anyway - okay, so then we had to move. This time I guess I’d better keep at it. So we had to move. We had and that summer was so interesting to me, because Diane was just one example of literally hundreds of people that did that kind of things for customers. Now what happened as a result of that; didn't make sense to me; but two weeks later, we got the 20 packages from RCA. Two weeks later we got two or three packages. And then more, and then more. In about three weeks we had the 20 packages from RCA. So what happened? Obviously word of mouth caught hold; somebody went back to that traffic manager, say, 'Have you tried Federal Express?' 'No, I haven’t.' 'Well, would you try them?' 'Yes I will.' The service worked and they used it. And what I found, during that summer - we didn’t get cash. Remember, I said we had 30 days cash left? We didn’t get cash in that company until November of that year. Unbelievable. I saw Fred Smith give up twice in his career. And he was the guy – we’d all give up; all the senior managers; we'd all give up once a week. (Laughter) Fred would say, 'Get back - fix [unclear 18:15],' and he'd keep up us pumped up. But he gave up twice. First time was July of 1973. Out of money; we are bankrupt. Basically that was just - that was it. And the accountants and lawyers had gotten together; the creditors are coming down around their head and shoulders; Fred gave up. On a Friday afternoon. And Saturday morning, one of our lawyers went to him and said, 'Fred, I got one shot for you. Henry Crown. Majority shareholder of General Dynamics. He can do it.' Do it means open up a bank on Saturday, get a cashier’s cheque and have it at our bank at opening of business Monday morning in Memphis, Tennessee. 'So Fred, you got an hour? The guys' never heard of you, he’s never heard of Federal Express. Now, talk about salesmanship. How'd you like to pull that one off?' He went up and literally sold - an option by 80% of the company for $1 million; he sold the option for a million, not the company;. And they came down and spent 6 months with us, but he got the $1 million; got it in the bank, and we survived.
And then all kinds of things - and I think the key learning here for me, beyond anything else is commitment. We were so committed. Strange things happened. Some I won't even tell you , because they're too bizarre. But one thing is - probably story you’ve all heard Tom Peters made famous; Fred Smith - and I was with him that day; we'd been kicked out of several investment bankers that day; we were at O'Hare airport, and out plane's going to leave about 2 hours from the time we were there. We're marching down the concourse, and Fred said, 'See you later.' And he takes off. And I looked up in Las Vegas - you know, there's a Las Vegas flight boarding. Now, Fred - you've got to understand, it's before credit cards were widely known at that time; and Fred never carried a penny in his pocket. God knows how he pulled this off; but he literally went to Las Vegas; standby; got there; won $29,000 on the blackjack tables, and came back, and we met payroll for another week. That’s how we survived. (Laughter) Now, at the end of that - as we're going through that period, we had literally 500 employees - got a pay check with an envelope with a note in it; 'Please don't cash the cheque; there’s no money in the bank.' Only a handful of people left. What's the lesson there? Commitment and honesty. When Diane said, 'I think we're going bankrupt anyway,' we were honest with her. We don't have any money, we're running out money, do whatever you can to conserve; you had to do that. So at any rate, you know - a pilot used his credit card to buy fuel for his airplane; get the shares truck out, and then - then other strange things. REA Express, which was the single - they kind of had a franchise using passenger airlines; they went out of business. United airlines went on strike. All kinds of things began to happen that allowed us to survive during that critical period. Three years later we were profitable, today, instead of six packages, it's six million packages. So how would you like that growth a million times? That's pretty cool. Now, as we began to grow, we got through that first period. We had those of us - I was the first UPSer to get there. And then we had a bunch more UPSers come in. And our one fear; anybody that came from UPS - I don't know how many of you know about that company, but anybody that came from UPS had this huge fear. They had six billion dollars in liquid assets. Federal Express was the biggest start-up at that time in venture capital history, and it cost us $120 million. They could come into our turf and step on us like an ant, at any time. In fact, the reality was, Fred Smith and I went to Jim McLaughlin, who was, at that time, CEO of UPS, and we
said, 'Jim, do you guys still want to do the pickup and delivery.' That's how strong the fear was. 'We'll just run the airline, you do the pickup and deliver.' And he said, 'Unequivocally, no; we don't want to be in that business.' 'Okay, that's fine.' Eight years later they came in, but by the time they came in, we had launched into customer value that was so strong, that they couldn't assail our position. That's strategy that everybody is talking about. And what we recognised is that we had to go up this curve of value where we had to continue to add services. Today, if you want to equate services on the base level, which is on time delivery, you would say, 'we meet the physical needs of the customer; we get the package there on time.' Now, if you're in a business where you meet the physical needs of a customer, anybody else can do that. We knew that UPS, even eight years later, whenever they came in, couldn't - delivers as accurately and as reliably as we could on time, every time. And if you look at it today, UPS, Federal Express, Airborne and the Post Office all are like 99.7 plus or minus 3 percent - plus or minus 3 percent of each other, in terms of on time delivery. So if you're in a business where you're meeting just one level of needs, you're going to die there, because you'll be commoditized and when you are, price becomes the rule. We know that. Okay. Physical needs are here, in this room. Are you comfortable in this room? Is the temperature right? Is this hotel set-up properly? That's Jay's brilliance and his organization's brilliance at meeting your physical needs. You notice there's not candy on the table. Now we were talking - Jacquie was talking a little bit about wants versus needs. Now you may want candy, but the reality is it’ll put you to sleep, and you won't get what Jay wants you to get out of the seminar. So those are things that meet the physical need. If you stop there, you're dead. The next level of need, which I think is met very well in this seminar, is informational needs. Intellectual needs. And we need those needs met as well. Now, what did that mean at Federal Express? We can get the packages there on time, but it was interesting - my job after sales and service was Senior Vice President or Corporate Development, and the first part of that job was to find the six things that we - define the things that we need to do to keep our customers excited about using us, and keep them loyal to us. And we identified the first thing; obviously get the packages there on time. Anybody want to hazard a guess and just yell it out, what the second thing was? (Audience member shouts, 'Where's my package?' You got it. Where's my package? Even if it's on time, even if it's
on route, even if it's gone out for delivery; whatever. I want to know why, because overnight service is different from three or four days' service. After I left FedEx, I went up to two buddies of mine that were now executive vice presidents of UPS, and I said, 'Hey Frank, what are you doing with tracing?' He said, 'That's -' and that’s how I invented the barcode tracing, and I knew how important that particular issue was. And this was after they'd been in the overnight business for two years. He said, 'Our customers don't need tracing. they count on us to deliver on time.' Well, they finally learned what their customers do need, and now they got, obviously, barcode tracing the same way FedEx does. And then Airborne got into it and so forth. So it's information. Now in your case, it's information about your product. Why? As you probably - Jay gives you all that kind of stuff- is why is your product better or different from whatever. Now in the beginning, Diane taught us another lesson about information and education. It was very interesting. We were different - and this is a tough one, because it flies in the face of some of the things you learn here. We were better because we had a hub. And the reason we were better is when we had 10,000 - the reason we had a hub - when 10,000 packages, we had 10,00 packages in our system - if you took it - the biggest market to the biggest market. 10,000 packages overall in the United States moving back and forth. New York metropolitan area to Southern California. Or the north east to the - 57 packages. So you couldn’t afford to have an airline, obviously you couldn't fill up an airplane; it wouldn't work. So as a result - but when you picked up a New York to the rest of the country, it'll fill airplane. That's what made the hub work, and that was our difference. Now, when we were selling, we were touting that difference; the reason we're better is because we have this hub. But nobody understood it. How many of you understand it now? (Laughter) See what I mean, it's not an easy concept to understand. And so they didn't understand it. Well, here’s Diane; get the packages. She's in telemarketing, she's calling up people. She's calling up a guy in Detroit, and he says, 'Look, you mean if I Want to send a package from Detroit to Chicago, it's going to go to Memphis and then go back to Chicago?' And instinctively said, 'Look, sir, you don’t tell your customer, we won't. Just have it there by noon tomorrow, does that work?' 'Yeah, yeah.' 'Okay, stand by your driver.' And then she - that's where it absolutely positively came from - not her but the ad agency; that finally we got it; you sell benefit, not means, but you still have to educate. So that's information. Now, we knew UPS could duplicate that, and they have today. Got a good tracing system. Not quite as good as FedEx; they don’t scan it as many times, don’t have the controls that FedEx does, but
it's reasonable. There's a level above that. And its' the level that we all have to go to if we don't want to be commodities. Anybody want to hazard a guess what it is? Emotional needs. You guys, see , you're far ahead of my usual groups, because you're Jay folks. (Audio missing) emotional needs. What does that mean? At FedEx, it was interesting. We had a senior vice president; since passed away, that I would equate with Jay in the major company marketing, where Jay is more entrepreneurial; but both were that same capability of seeing beyond the obvious and developing systems that work. He said, 'Mike, we have to meet the emotional needs of our customer.' I said, 'What do you mean by that?' He said, 'Well, our customer isn't the executive, or even the person who benefits from getting the package their overnight. So absolutely, positively overnight doesn’t meet their need.' I said, 'Well, who's the customer, if you look at it that way?' He said, 'It's the secretary, the shipping clerk.' And I said, 'What's their emotional need?' He said, 'Keep the boss off my back.' (Laughter) Isn’t that interesting? IBM became as big as they were because they created such a level of trust in their brand, that if I’m the CEO of a company, and I bought anything but IBM and it went bad, you'd blame me, the CEO. If I bought IBM and it went right. You'd say it's IBM's fault, right? That's the brand. Same thing at FedEx. If you used UPS and it went bad, they're going to blame you for using UPS. If you use FedEx, it's FedEx's fault. And that's what we crated. I don't know if you remember the advertisement that ran on TV. We're so appropriate for this. It was this boss goes into this pool of people, and he storms through the door, and he said, 'The package you sent yesterday didn't get delivered,' and this woman's in the back; 'Yes, sir. It was delivered at 9:46, signed by John Jones.' And the guy kind of walkout and closes the door gently. Everybody goes, 'Yes.' And they're clapping. Who were they trying to appeal to? The boss or the secretary who used the service? So it's meet those emotional needs. How do you do that in your business? I'll leave it to you. But you’ve got to do that. That's what'll differentiate you. It's what is the emotional need. The emotional need for Ya-Ya Bike members, cooperative members, is power. As a small retailer, I don’t have the power that the big guy does. Give me power. And if you look at it, most people tell you the three motivating emotions are sex, money and power. So somehow you relate to one of those. A good example - probably the best example. As I said earlier, I sold Harley-Davidson, and consulted with them for about a year. Now, it's
interesting that the emotional need of a bicycle rider and their category, is power. Now, what's power to me as a motorcycle rider? It's noise and vibration, right? Gives me a sense of power; leather jackets and all that. And I love Harley because who else has their brand tattooed to their customer's bodies? (Laughter) I mean, it's incredible. But noise and power. Think about that, and then think about the Japanese, who owned the market before Harley-Davidson got pretty smart about how they marketed. Noise and power aren't in their vocabularies. It's got to be smooth, and it's got to be functioning, right. Harley Davidson was so funny; I was visiting one of their dealers, and this customer comes in and he said, 'I bought this motorcycle in here and it's leaking.' And I’m talking to the owner, who said, 'Hey, everybody, he's got a Harley-Davidson that's leaking.' And everybody’s laughing. He said,' There's no way a HarleyDavidson can't leak; that's part of what they do, they leak.' He said, 'The only Harley Davidson - if it doesn't leak, it's because it's already empty.' (Laughter) But they sold noise and vibration; they sold power, and it worked. So that’s the emotional need. One level above. Patty Lund gets close to this next level. He's not there, but he's getting close. Anybody want to hazard - no, let me ask you this. Who are the most highly paid people who do the work? Not people who manage the work, or CEO's. Entertainers and athletes, right? State change?
Jay Abraham Mastermind Marketing 18 …right? State change? What do you mean by that? Audience Member: Entertainers are paid that well because they take your mind off of [unclear 00:11],make you feel good. Mike: Right on. Exactly. Now, I’m going to call it spiritual needs. And I don't want to insult anybody, spiritual in my opinion does not necessarily equate to religion. But spiritual, I see as taking all three of those lower level needs; our ego needs. It's a 'me' need; it's an ego need. Spiritual needs are those that take me out of myself. They take me out of that. When I watch a good movie, I’m not - I might be relating at some level, but I’m relating to the characters. When I watch a sporting event, I’m relating to my team. My team is bigger than I am. It's greater cause, it's greater purpose. And I suggest that where we are going as a culture, civilization culture, is up that curve. So, question is then; if we look at the value added curve - I just want to give you some examples. I’m done a rating system of one to 1000, and I've rated some well-known companies
where they stand on this curve. And the highest in my opinion, as I mentioned before, is Patty Lund, and I'll describe that in a moment. And then you had a [unclear 1:21], and I've put Jay Abraham's organization in this category; UPS, FedEx. It was interesting, when I did my rating, UPS came up stronger today than FedEx. Surprised me, but true. Harley-Davidson, Wal-Mart, Dell. Next level down; Microsoft, Apple, IBM, Cisco Gateway. And then finally, some that don't meet emotional needs quite as well; Quest, Honeywell. In fact, Quest was lowest of all the companies I looked at. So, where are you on the curve, is the question you need to ask yourself. Now lets' take a look at how do you do it in your business. How do you build this culture? Where everybody's passionate about - everybody's a Diane. 'Whatever it takes, I’m going to serve that customer.' You come up with a compelling vision. What is the customer experience? You have a strong sense of values. There's a professor at Princeton now, writing about UPS, because of all the issues around values, and Enron, and everything else is going on. He's writing an article - a book about UPS and about how strong their values are; incredibly powerful. Anybody ever see a UPS driver doesn't work hard? That's one of their values. If you're thinking about going to work and making money, that's good, but you better be prepared to work hard if you go to UPS. Then an evolutionary process. We talked - Chet talked yesterday about the three P's; incredibly powerful stuff, and I really applaud that kind of thinking. But that has to continually evolve. The problem with the three P's that you run into - how many of you, at some point in time, have run into an employee from a company who couldn't solve your problem, because they were locked in the policy and procedures? Quite a few. Yesterday, went up to my room. The key didn't work. And one of the guys here at the seminar was with me, and he was up on the floor as well, and his didn't work either. So we both went down to the desk. And I leave my wallet in a seminar like this, in my room. I don't carry it around; just takes up a lot of space. And so we went to the desk, and I said, 'I need another key.' And so did he. And she said, 'Well, where's your ID?' And he showed but my wallet was up in my room. I said, 'I can't - have any ID.' 'Well our policy says you got to have the ID; I’m going to have to call security guy, going to have to go up to your room, you're going to have to get your ID, you're going to have to come back down here; going to have the key.' I was late coming into the seminar yesterday because I was doing all that. (Laughter) And then Jay called on me - you all heard that. So I wasn't around.
So, that's policy and procedure getting in the way. Airlines; I tell, you, they can't - what you need to create is a culture where every employee is a problem solver. …(Audio missing) scheme with Vince Fagan, that marketing guru at FedEx told me about the emotional needs, and I had just come from a seminar called Synectics, where it's creative problem solving, and he and I were in this incredibly creative problem-solving process, flying out to Denver. And he had elves jumping from logs and everything else, so I said, 'Describe that to me in terms of what that means to Federal Express.' And he said. 'Well, I can get them in the door. I can get people to try FedEx.' That's not what’s important. What's important was, number one; that they stay loyal; and number two; they tell others. And he said, 'That only means one thing.' This is a breakthrough for him at that time it was a breakthrough. He said, 'That means only one thing. Every person is going to be one of those little elves that sees themselves first and foremost as a problem solver for that customer.' Fred later institutionalized it, saying, 'The sun will not set on customer or employee problem.' And by 'sun set,' he means the problem is recognized. May not have been solved, but it's been recognized, acknowledged, and we're working on it. So your employees have to be problem solvers, and you have to develop an evolutionary process. Let me describe quickly what that looks like. Vision. Ya-Ya Bike; what's our vision? I just got finished writing it. Usually what I do is I write a ten page scenario; I put myself in the customer's head. What's the bike rider want? We have three customers in our business. the bike rider, the member who's the bike store that sells to the bike rider, and the suppliers; the manufacturers who basically have to provide the supplies and things we need. And our job is to put all that together. With our members and with our suppliers. So I wrote that. And out of that came a vision statement. And the vision statement basically is, 'Biking; America's passion.' That’s what I want to achieve. The reason I’m at Ya-Ya Bike, is because I love the concept. But more importantly, it’s probably the most challenging leadership assignment I've ever had. How do you take 1,000 bicycle dealers working with 50 suppliers, and basically change the way the industry and America thinks about biking. We want to make biking America's passion. We can do that if we work together. And that's what we're going to do. So that's our vision. At FedEx, when I was there, I wrote a vision. I was running the Southern Division for a while; I wrote what was called the ideal station. And I created this vision of what that station would look like. And we went
around every employee and read - and it was published in the newspaper. And we created a vision statement around it. Then, values. What are values? Values, basically, are those uncompromisables. Those things that won't let you be an Enron; no matter what happens. Those values that are going to keep you honest and keep you sincerely focused on your customer, and those are the out of bounds. Those are when I’m running down the football field,. I step out, play stops; I take action; I do whatever I’m going to do next. The great example that I have of values was Colonel Sanders. Kentucky Fried Chicken. Colonel Sanders - I thought he was an icon; I didn’t even know he was real. But I worked with a guy name Frank McGuire. He's written a book called, 'You're the Greatest.' And Frank worked with Colonel Sanders, and he tells this story about Colonel Sanders. Colonel Sanders sold out his company. He built this franchise in the 70's and Kentucky Fried Chicken; the first franchise operation. Quite fast foods and so forth. And Colonel Sanders had built this [unclear 3:34] company to Hug [unclear]. And Hugh Blind came in; the president of Hugh Blind, and took over. But there was a clash. A vision clash, a values clash. Between Colonel Sanders and the big company. And one day the Colonel’s walking down the hallway, and he sees this meeting going on; about 50 people in the room, and he goes and he sits down next to Frank, and I guess he was pretty abrupt. He said, 'Frank, what are they talking about?' And Frank said, 'Well, Colonel, they're going to make the gravy out of water instead of milk.' And Frank was about to explain the next part of that; he said, 'Don’t mess with my gravy.' (Laughter) Well, there's no question whether this was - hear more. Frank said, 'Wait a minute Colonel, they've done taste tests, they've tested 300 people, nobody could tell the difference. It's like three cents a serving, and that means $100,000 at the bottom line.' And all this. He says, 'I don’t care. Don't mess with my gravy.' So the president of Hugh Blind says, 'Okay, I’ve had this problem all along with Colonel Sanders; now’s the time to confront him head on.' He said, 'Colonel, whether you like it or not, I’m going to make this - make the gravy out of water. We've taste tested it; nobody can tell the difference. It doesn’t compromise our equality that I can see, and we’re just going to do that, and you and I have problems in the past. I want you to know we're in this for profit; means $100,000 on the bottom line, we're going to do it.' And I guess the Colonel had this habit when something like that happened, he'd do this. He had one of those desk tables that goes like that; gets - turns around, starts bolting for the door. And the president of
Hugh Blinds said, 'Colonel, where are you going?' He says. 'Going on the Johnny Carson show, tell them this shit ain't fit to eat.' (Laughter and applause) So you can just imagine, they did not change the gravy while the Colonel was alive. (Laughter) But see, the point is, he wasn't wrestling in his mind about pros and cons and intellectual understanding and all that - taste testing and all this great marketing. In his mind, that was the value. I guess when they first sold it, they were - this is kind of a funny story - they were at a big party; a celebration party - sold his company to Hugh Blind. Everybody's there and the president of Hugh Blind comes over, he says, 'Colonel Sanders,' he said, 'I want the formula. We need to get the formula into our safe as quickly as possible.' He said, 'What formula?' He said, 'Well the 12 or 11 ingredients that make Kentucky Fried Chicken. We want the formula.' He said, 'You're looking at it.' (Laughter) He was the formula. There was nothing written at that point. Okay, so you got a vision, you got values. Now, we’re into the evolutionary system - goals. We’ve talked about that; you know the importance of goals. The only difference for me is the goals should be inclusive of what I call the CEO of the company. Customer, employees, owners. So a customer goal. And there’s an employee goal. At Federal Express, customer goal was what they now refer to as the Service Quality Index. It measures eight things and it creates an index, and it's shown daily, so they know not only what their service is, but the perception of their service. So you have goals, and you have employee goals. At FedEx, it's a Leadership Index. As a manager at FedEx, I can evaluate you, my supervisor, as a manager. In terms of your leadership skills, I can't evaluate you. Only your employees can. so there's a Leadership Index; it's rated by employees once a year. For the investor, everybody's got that goal, which is stock price, value of the company or whatever situation you're in. Those goals have to be relevant to the people who carry them out. So it has to be relevant. If it's a customer goal, your product or service has got to be relevant to the customer. If it's not, forget it. All the marketing in the world isn’t going to overcome that obstacle. It's got to be relevant. Meaning the goals have got to be relevant to the front-line employees. What does that mean? It might mean incentives; it might mean a number of things that are required to make it relevant. Once the goals are clear, vision's clear - vision is like a compass; top of the mountain-top, that's clear. Goals are clear. It's relevant to me. I, as an employee; Diane, will take the actions that are in the best interest of the company and the
customer. As long as the goals are balanced and relevant to me, I will take those actions. Now, what also makes them incredibly relevant is feedback. So this is what I call a cultural system. When this is in place, you will continue to evolve any way you need to evolve to meet your customer's need. Because the people who take the action are the front-line people, and when they meet the goals, like Diane met the goal, those actions will be applauded, and when they’re applauded, she'll do whatever she needs to do the next time to make it even better. So it's just like - and this thing is in my book; I describe it in much more detail, but basically, any system works this way. If I'm a racoon in search of food, that's how the system works. I have a goal, I’m hungry, I want to get fed. It's relevant to me because I’m hungry; my stomach's empty. I take action to look for food and find it. I get feedback; I fill up my stomach. I get up, turn my faucet on in the morning, get my shower fixed. My goal is to have temperature of water that I want. I keep fiddling the knobs; get feedback, until I get the temperature. Everything you do; everything an organization does, fits into that model. Where it's usually weak is people don't have the feedback to the employees; the employees don't know where we are. They don’t understand the goals. I know I’m in a customer cultured company when I can walk into a front-line employee and say 'What are the goals of this company?' And they can tell me. Boom, boom, boom. How do you know those are the goals? What's the relevance of those goals? And they can answer those questions. Let me give you some quick examples. Patty Lund, as Jay said, on the verge of suicide. Literally, taking his life. He even studied it. He found out that - how many of you heard this? Dentists commit suicide 100 times more than the average person. How many of you know a dentist that's committed suicide? Several people. Interesting. And so - even - he studied it in the sense of how you do it. He said, 'I can slit my wrists in the bathtub, but that takes like 6 hours to bleed it out, and - or I could jump off a bridge in Brisbane, and the problem is, people have done that and they get stuck in the mud, and they just can pull out of the mud. And they're embarrassed as hell; they still haven't done what they wanted to do.' (Laughter) So then he asked the critical question, 'Why am I depressed?' Why are dentists depressed? Anybody want to hazard a guess? Why are dentists depressed? (Audience members shout ideas) Their customers don’t want to be around them, right?
Audience Member: It's a down in the mouth job. Mike: (Laughs) Down in the mouth job! Right, perfect. (Laughter) But the reality is, people didn’t want to be around them. And even though you like the person, you don’t want to be around somebody who's causing pain, or whatever that is. So as a result, people don’t like to be around dentists. Now, as much as we don’t believe we need human relationship, the essence - the purpose of human life is, in my opinion - and as Mother Teresa said, is to love and be loved. When I’m not loved, I feel that. So at any rate, he felt it. Emotionally, deep down. So he said, okay, if the goal of life is happiness, why on earth would I do something that depresses me? Right? It's a good question isn't it? Something we need to ask ourselves every day, if we're not passionate about what we're doing. So he created a compelling vision. 'I want to sell dental happiness.' Now that, to me - I spent a lot of time in a dental chair, and that's an oxymoron if I’ve ever heard one. (Laughter) But that was his vision. Now, he went through 10 years of actually - it's still evolves today, because he applied …(Audio missing) …in talking - now here is the key ingredient to his change, because he did a total wholesale change. I mean, from one set to 180 degrees in the other direction. Dental happiness - met with his employees. 'What's it like to work here?' 'It's terrible.' Turnover in the dental industry is 60%. People move constantly. So 'It's terrible.' 'Why is it terrible?' 'Because you're rude to us.' He was ready to listen; most employees wouldn’t tell you that. But he was so depressed; he was totally ready to listen. So they created together, as a team, what he calls the courtesy system. Now, the courtesy system - that was his values. Very simple stuff. He wrote a book called, 'Building the Happiness in a Business.' In my book there's also a chapter that shows the courtesy - courtesy system is eight things. Its behaviours. When you want something say please. When you get something, say thank you. When somebody says thank you, you say you're welcome, or however you want to respond in your language. Never talk about someone behind their back, or never talk about someone who's not present unless you use their name in every sense. Simple stuff; kindergarden stuff. But as they began to do this, they began to deliver this kind of thing, and they got into this evolutionary process; their goal was to - their vision dental happiness.. They set goals. Remember I said CEO - customer, employee, owner. Every day, for a while, they would meet for 10 minutes, and they’d say, 'How many of our customers would refer like people to us, based on their experience today?' And people would rate that. 'On a scale of one to ten,
how happy are you?' As Marilyn, one of their employees called it, the stress-ometer, because they equated happiness with stress. When you're stressed out, you're not happy, period. That's how it works and I think science shows that. So they did that. Then third, they ran a weekly - not monthly, not quarterly - weekly profit sharing program, and then cover revenue. ;How much revenue did we do today?' And they kept that up. It was amazing what happened. They began to evolve, and now if you go there - I’ve been there like five times. The first time, I’ll never forget it. His advice to you, and you heard pieces of it, is basically this. As entrepreneurs, here's what I want you to do. Lock your doors, take your name out of the phone book, stop all advertising, and fire 75% of your customers. How many are ready to jump at that? (Laughter) Alright! That’s great. So that was his advice. Well, what he did is, it started out - you heard in the interview, by referral only. And what he did is he made it - there's a contractor, a signed contract, that shows 'When you sign up for Patty Lund's practice, first thing you get is a book in the mail, and it's got a hand-drawn colour map on the first page; shows you how to get there. That’s what I got. And when I went to it, you have to ring the doorbell, just as Patty described it, and then you're shown to your individual room. And they leave the door open that much; it's a small room. And then Marilyn can - now, my names' on the door. 'Welcome Mike Basch. Patty Lund Dental Practice.' I was just there to interview; I wasn't even a customer. She put me in, and Marilyn sat down, and pretty soon there was a knock on the door. Why a knock? Because it's my door. And Joanne comes in and she said, 'Hi, Mr Basch. Paul said you like decaffeinated cappuccino and blueberry muffins. Is that correct?' 'Yes, it is.' And then Marilyn said, 'We celebrate tea here with silence, so if we could just honour Joanne as she serves us.' And Joanne served us in Royal Dalton china; in a silver tea set. And so she served us. And then I began to ask questions. I asked Marilyn, I said, 'Is this duplicable?' Because I’d already talked to some customers, and they said - one guy flew from Sydney to Brisbane to just go to the dentist. $800, round trip. And said, 'This is the greatest experience I’ve ever had, and I’ve been to a lot of five start resorts.' And I said, 'Marilyn, if your husband moved to Sydney, and you had to move with him, would you do - could you do the same thing in another dental office?' And she said, 'You mean he gets transferred and I go with him?' I said, 'Yeah.' She said, 'I'd divorce him first.' (Laughter) Tongue in cheek, but true. This place is a happy place, they've got it. They've got
the best business in the world. The only way I can describe it - I talked about spiritual, unconditional love. I was there two hours, I was doing seminars in Australia, two weeks away from home. Stressed out, living for - in friend's homes, but that's always a little stressful. I walked out of there at total peace with myself. That's what he's created in a customer environment. That's a customer culture. I'm going to go through these very quickly. UPS. Great vision. Determined people, working together, can accomplish anything, Determined people create their conditions; they are never the victims of. And there was only one excuse for non-performance at UPS, and that is you weren't determined enough. Wouldn’t you like to be in a culture where all of your employees -and they have 300,000 of them have that determination? Policy book is strong, and they have the same evolutionary process. Compelling vision; we did move from 'Get the packages,' to 'Absolutely, positively overnight.' Strong sense of values, evolutionary process. Ya-Ya Bike; compelling vision. We want to America's - we want to make biking America’s passion; that's out vision. It's not our USP. It's our vision. In our business, we’re dealing with 1,000 - or we will be dealing with 1,000 retailers and 50 suppliers, and eventually consumers or bike riders; we need to build trust. That's - whatever it requires to build trust, that's the beginning of our values. Now, I’d like to very quickly give you a process you can follow, and this will just take a second. I’m going to suggest this. Both Federal Express and Patty Lund did one thing that was common to both of them. Patty Lund in an eight person dental office, Federal Express with 150,000 employees. And that is they created a hierarchy of [unclear 5:55]. They examined why people would not want to do business with them. In the dental office, simply getting employees a flip chart and having your employees or you, yourself list why people don’t want to do business with you or your industry. And then they took an hour a week - they identified those things customers don’t like, they had their employees vote on their top three; they created a hierarchy, and then they solved them. FedEx did the same thing. Eight things, reasons why you would hate doing business with FedEx. Number one; I lost or damaged your package. The last one - the least worst thing I can do is day late. 11:00 instead of 10:30. Identify those things. And then they took employees and they had employees work on solving them. Why not the owner, if you have employees? Why not the owner? Because when your employees do it, they'll deliver a great service, because they’ll have identified it, they'll have solved it. An
extraordinary service delivered by its creators. If you create it, you better be ready to personally deliver it. Now, Jay - and this is the last slide. Jay tells you one thing - I mean thousands of things, but one of the things you get clearly with the way he operates these seminars is, what life's about is giving and receiving. We breathe in, we receive. We breathe out, we give. And that's what it's all about, isn't it? It's giving and receiving, and that's -Jay has you get up to give, because you've received some ideas, you've received something that works for you. Get up and share it; give it to somebody else. That's what makes life work. That’s what moves us up that curve. Now, I've given you what I could give you in an hour, and I hope you appreciate it. I 'd like your help. One of the people that came here yesterday said, 'Look, I’ve heard some great ideas, but what I love about this place is the energy in the room. How many of you would agree with that? (Applause) It's incredible stuff. Where I need you help is this. We're trying to - we're taking - from me, the biggest challenge of my life, is to get consumers everywhere across America passionate about biking. So I’d like you to repeat after me, and I want to do it with gusto and with energy. Biking is America’s passion. Biking is...(Audience shouts 'America's passion') Biking is...(America's passion.) One more time. Biking is...(America's passion) Thank you very much. You’re a great group. (Applause) (Music plays) Jay: One sec. Now, everybody here that I’ve chosen, are expert and original and really definitive thinkers on their subject, to where they could go hours and hours and hours and do you service. And I put them through an insanely unfair process of trying to compress it and then paring it down, and then making it so sinewy that’s it’s awkward, and it's because I’ve got to get enough of our stuff in, and I’ve got to progress with - Mike, I bless him, is here until when? Mike: Until the rest of today. Jay: Rest of today; he's at the tables most of the time, right? Wrong? Mike: Yes, right. Jay: Taking notes. He’s going to continue... Mike: All the time. Jay: ...everything, he's here, he's got a world - he and I go back a long way and I frustrate him in many different ways, many different places around the world, haven't I.
Mike: Yes. Jay: And I - we've been to three different continents together, me frustrating him. But he's a wonderful man, he’s got a heart of gold, and he's got a knowledge base to die for, and he understands…(audio missing) ...animate the spirit of your forces, and I hope you really got something out of it, but I can’t let anyone who's as bright and got the enormity of perspective that he has, just go - all the things you just said, and that wonderful conclusion notwithstanding, what are the three most important other things they should have gotten out of what you're here for, and if they never see you again, and you had any influence on their business or personal lives, what do you think they got to take home and do? Mike: Well, number one -I said it but I didn’t do it justice. This hierarchy of horrors. When I got back over clients after years of people who have followed some of the things in my book and some of the things you've seen. People who have done the hierarchy of horrors say that's the most single strongest thing they can do. And they make it an evolutionary process, so that’s number one. Number two goes back to Jay's stuff. I think this whole idea of setting up a system - make sure you've got the feedback system. When I look at where - big companies and little companies; it doesn’t matter what size; where they fail is they don't have the goals, they haven’t made the goals relevant to people, and they haven't provided the feedback. When you do those three things well, people will act in the way that you want them to act to produce the business, or produce the relationship, or produce whatever you want. Even if it's a new set of procedures, or new policies. Whatever it is. So that's number two. Number three is to really - and this goes back to kind of number one, to a certain extent. Out of that [unclear 1:29] that you define about why don’t customers want to do business? That's where the break through come from. Why don't they want to do business with me or my industry. What Patty Lund said, you know, they don't want the pain, they don’t want smell and - when they walk in. Because smell is the most basic human instinct there is. When you smell something that reminds you of a bad experience, you will turn negative. You have no control over it; unconsciously, you will turn negative. And not even know why. Jay: Or dirty bathroom in a restaurant. Mike: Pardon? Jay: Or a dirty bathroom...
Mike: Or a dirty bathroom in a restaurant. UPS washes every truck every day, to create that perception of quality that people can’t get - because you can't see what the dentist is doing in your mouth. So they tackled each of these things. So the third thing; once you have the horrors, then create that vision. Write, sit down and just kind of – stream of thought. I’m a customer. Put yourself in that customer's mind. And I always pick out a person I know. Like, the last one I did, I wanted to market to mothers of teenagers. And I put myself in a woman named Susan, and I was in her head, and I wrote about her three kids. How her family is losing touch with each other, and how one kid's spending all day watching television. And how when she got bicycles in her life, and now her kids are exercising and she’s got - her husband and her whole family is together again. So I created this whole vision around what it would be like if America's people were passionate about biking. And so that vision will then drive our strategy, it'll drive everything else we do as we move. I’ve only been with the company now three weeks, (Laughter) ...so it'll drive everything we do from here on in terms of building a system, a process that will truly reach out to America's people and get them more passionate about biking. Jay: Thanks. Last question. Well, two questions. Are you going to be available for our strategy panel later? Mike: Sure. Jay: Next question is, of all the entrepreneurs, you've had the good fortune to be impacting - and particularly the ones you've impacted in the five or six or seven, or number of programs of mine you’ve been at. What's the biggest, let's say, leverage that you haven't touch on? There’s got to be one more thing that - it's like where you go, 'Oh shit, I should have said this, but I didn't have that in -' What is it? Mike: It was a hospital - remember I said I got the Harley-Davidson a hospital? And the hospital had an emergency room - this is so funny. And the CEO of the hospital was in the emergency room; he cut his wrist or did something. Went in as a patient. And eight hours later, somebody looked in on him. (Laughter) All during while he was waiting, he could say, 'I could obviously stand up and call attention - but my customers aren’t doing that. They're not paying attention to me, they're not paying attention to our customers. So we put together a group of people; ten people, employees. Spent a day and a half. They devised their performance strategy for - his deal is get it - the average time in the emergency room is three hours and seven minutes. The employees working together; day and a half. Now, took them three months to
implement. Day and a half; came up with the process that basically got them down to less than an hour. Got - as one of the nurse that was in charge of the project, what we call our champion, said, 'When you started, we had 10 people. Two doctors, and admins and nurses working together; now we got 80 people rooting around down there to figure out to make it better for the customer.' End result: they called a census - how many people come into the emergency room, which is the gateway to the hospital for getting business and growing. Jay: So they took metrics? Mike: Huh? Jay: The had metrics. Mike: Yeah, that's their metric. 90 a day, within three months after them implement, six months after our project started; 130 a day. That kind of increase. Jay: That's amazing. Mike: Because the people got involved, they... Jay: The last lesson is? Mike: The lesson is, get your people involved to solve the problems. Don’t solve them yourself. I heard somebody make the comment; and I understand - after Chet's - you’ve got to pig-headed about getting them to follow up [procedure. Yes, you do, but my belief is involve them, get them involved, get them passionate and let them tell you how they’re going to do it. When you walk away from this seminar, you’re going to come up with ideas. Bunches of them. Pick one or two ideas. Bounce it off them, get their feedback, get their involvement. Make them part of the strategy and the tactics to pull it off. And if you do that, you'll see these ideas that normally dive down, just as Chet said; you'll see them begin to take an energy of their own, and at some point you can step back and just watch it happen. Jay: Great. Mike, thank you so much. Appreciate it, man. Mike: Jay, thank you very much. Jay: Thank you. I have the honour and the pleasure of introducing to you four gentlemen that I very greatly admire. they are my four sons. They happen to be here. (Applause) Come up here. This is Jordan, age 14. Say hello. (Applause) This is Zayn, age 12. This is Ridge, age 10, and this is who are you? Sage; we think he's Charlie Chaplin, because he looks like
him, and they came down - we were going to teach you the Macarena. Unfortunately, we don’t have the Macarena after we practiced up in the room for about - I didn’t, but they did. So because I think you need an energy boost, because I'm going to do something very important, we're going to have Spar help us for two minutes, teach you - what, Spar? What are we going to teach them, Michelle? I’m sure you all want to learn the Time Warp, when you go home and show them what you got for $5,000; don't you? (Laughter) So we're going to all get up…(audio missing) I like that. Okay, now my boys are leaving, but one of them is going to stay and work, so he likes tips. The little one's going to work in the registration booth; I don’t know what he's going to register. We told him there's another seminar coming up. (Laughter) I need a tall stool. Is that the tallest one we got? Okay. Serious business now. Do you like Chet? (Audience says, 'Yeah.') And unfortunately, he's got great methodologies. He and I have been doing some really killer stuff together and he was here for all of you, but also, later on, certain ones of you want to talk to him if it's appropriate, but that stuff will transform you, particularly once you get my methodology. The reason most people don’t do as much as they could or should or will, now, with my methodology is they don't have a system. They don’t have a process or procedure. Did you get pretty - did he get really good into the Dream 100? Do you understand the leverage in that? When the big one falls, everyone falls. The great example and it's a composite of that coupled with endorsement. You've all heard the story - and it's told about four ways. It can be about Rockefeller, it can be about Bernard Berue, it could be about Rothschild that somebody went up to them and wanted to borrow money form them, and they said, 'No, but I;ll do something ten times better. I;ll walk arm in arm with you twice, up and down the stock bourse - and a bourse is the stock floor - and after that everybody will loan you all the money you want.' And you have to realize, once you have the big influence, everybody else falls. Alright, pretty hot day, don’t you think? I was talking to someone outside and I said, 'This is probably the best program I’ve ever - not the best program I’ve ever done meaning just it's a great program; although it is, because you guys are great and I’m in a really good mood - but it's the greatest - it's the most forgiving program. I love hot cars, but I can’t drive worth a darn. I had a Ferrari Boxer one time for six months, and I blew six clutches just going out of my driveway, swear to God. And it was $2,000 a clutch, and I thought, 'I can’t handle this.' And when I was talking - I was dating my now wife and trying to impress her, so I talked to her like that and the car would go veering off. But we have a Porsche - we had a lot -
she's got a really gorgeous - and I can't drive worth a darn, but you can mis-gear and it's forgiving. This program is so forgiving, it doesn’t really matter where you start and where you end up, it layers so well, and it's got so many back-ups and so much redundancy, both in preparatory material and the workbooks; and tomorrow when you get the tactical stuff, it's just to die for that you can't go wrong. It doesn’t matter where we end up. I have one issue I’ve got to talk to you about candidly, because it's a great - you guys are $500,000 minimally ahead on this deal and don't know it, and it's something I have to talk to you about, and this is very sincere. And you're the beneficiaries of something that really I wasn’t going to do, but you've done it now and I need to engage your absolute moral commitment to treasure an asset that you are now the custodian of, with absolute respect. Years ago, when I did seminars, I spent millions of dollars. 20, actually. I used to make it a point to give everybody in the room the list of everybody in the room, because I wanted everybody in the room to collaborate, to network, to benefit each other, and after spending $20 million to go across the road and find the 10 or 15,000 people, about 5% of the people who got it turned out to be bad apples, and they turned out to be very self-serving. And they used the list to hustle and to do all kinds of marginal self-serving things, and they decided maybe they weren’t going to follow through, and Jay Abraham didn’t give me value, so they gave it to other people, and it got whored, and it got brandished around, and I was just heartbroken. And I swore I would never, ever, again, on my own give a list to anybody. If you want it, you have to work hard. But Carl, well-intended, because he didn't know my belief system, gave you all a copy. A copy that cost me a half a million dollars to build. A copy that, very precariously, holds in it all of your names, all of the data on you. I have a couple of speakers I wouldn't give it to. I won't retract it because you are in possession of it. I would ask you, I would hold you to a higher level of responsibility, to use it for what it was intended for. To network, to mastermind, to benefit from. I’m a very nice person, I am like so giving most of the time, but if it comes to back to me - because I’m in a point in my life where I don’t want to see the surly side and the self-serving side of humanity. I don’t like it. If I see anyone use it wrong, I will be - you will be smitten. Please respect it and, understand that it's a gift of the highest magnitude; that I won't take back but I would hold you to a higher standard, to treasure and please don't use it imprudently. Please don’t be self-serving about it. I spent $500,000 on it, and please don’t get it out of your possession. I would be more than
upset. Can I have your commitment about that? (Audience says, 'Yes sir, and applauds) I’m going to do something - I have three choices. I chose door number two. I have something I need to do, which is the strategy of pre-eminence. I’m going to do it probably a modified long form, and you're going to have to work with me. I 've done it many different ways. The best way I ever did it was the most free-form. I have a transcript of that. I was up in the room for an hour and a half trying to modify it and I’m going to use it as reference notes. I'm just going to speak to you from the heart. And then we'll go in and out of currency and history, and then at the end I’m going to do a great favour to you. I’m going to take the chapter from my book, which is a distillation on the strategy of pre-eminence, and I’m going have them send it out tonight, and make copies for you for tomorrow. So you can basically - if you like it - so you’ll have a reference mode, and you can put it in your workbook. Okay? (Applause) I don’t need that, I’m just telling you what I'm going to do. But you’re going to have to be tolerant, because this is going to be a little bit more free form babble than normal. I need some sparkling water and a coffee, please. And if I don't do this, I will do you an irreparable disservice. Doesn't roll which is good. Alright. I want to talk openly about something that should forever transform your life. (Audio missing) …...strategy that I thing very few people, other than ones I have influenced, and people have benevolently or selfishly appropriated it and tried to disseminate it, understand. It was influenced by a client of mine that grew from $1000 to - Max Friend - to 250 - I think they were up higher than that - $250 million. It was the entire premise that about ten other businesses that the president of this company built on. I was able to trade them a quarter of a million dollars’ worth of consulting for the privilege to spend a week picking the minds of a bunch of their senior executives, and the president, on what his real strategic mind-set and focus and belief system was. I worked it down to a methodology, and a strategy. I call it the strategy of pre-eminence. I'm going to read from my notes and then I’m probably going to summarize it from a different vantage point, and if you're on to me yet, I like to say the same thing from many different points. Not to be redundant, not for you to say, 'Oh I already heard that before,' but because it is so important, in my mind, to use - so pivotal, that I don’t care how I reach you, I just want to reach you. Do you understand that.
Now it's hot in here, or maybe it's just form the dance. Do you think so? So we'll wait a minute; if it's still hot, we'll tamper it down, but it could be just because we've expended so much energy. Okay, so I’m going to go over the notes and then I’ll free form a little bit. So I had this client that's incredible, I traded him a quarter of a million dollars a time. What I got in exchange was the ability to pick their minds. I had 2000 pages of notes; reduced it down to a bunch of bullets that I don’t have here with me. Those bullets were really reference oriented. So let's start with the fact that these people had a totally different philosophical bent that they used from the get-go. The first gentleman that they shared with me was the foundational pillar, and their success was that they strived, literally, to have enormous respect and empathy with their client. they saw their purpose, this company, that I patterned the strategy of pre-eminence after; as selling leadership, as opposed to just sort of being a wet noodle, and letting people buy whatever they wanted whenever they wanted. They saw their purpose and their role in the relationship with their client, as being a leader. Authoritative, a consultative force to reckon with, in the marketplace. The definitive force, actually. They saw it essential that they telegraphed and communicated and conveyed to their clients and prospects the essence of the fact that they felt the way they felt. They shared their hopes, their dreams, their fears, their desires. In other words, 'I feel what you feel. I understand what your problem, or your opportunity, or your goal, or your concern, is.' They saw it as a very distinct difference, being between just giving information, and giving expert, authoritative, consultative advice. They saw their role as telling people, 'Look, here’s what you should do about a problem or situation, or an opportunity,' and then, 'Here's how, and specifically, why you should do.' And then supporting it with a compelling, irrefutable set of definitive facts. They saw their role as helping people focus on issues they've never fully verbalized before. If I had time - and I was going to do it here, but I’m running late - I would ask you again to write down your biggest challenge, your biggest frustration; as specifically as possible - your biggest issue, your biggest question, and the biggest opportunity you're trying to get close to, and then I’d have you lift your head up and have everybody look at everybody in the room/. It would be liberating, because most people never articulated it. They've never put it into tangible, solid words. And when you do, it's like, 'Wow, now you can get your hands on it.' It's in words; it's solid, it's no longer this elusive, haunting, enigmatic, frustration that I just have a gnawing, sort of a disquieting feeling in my gut. Hold on. Okay.
One of the most critical points I need to make to you here is that so many of us are struggling ourselves, to get clarity about things. You came here hoping to get clarity, and hopefully as we've explained things, if you look at your faces, if you look at your body language; you're feeling more confident, aren't you? You're feeling more certain. You’re feeling more in control. You're feeling less stressful, like the answers are now within you; because you've gotten a lot of the pieces of the puzzle. You are certainly a business owner, entrepreneur, [unclear 4:56] oriented manager, or professional. But guess what? You're also a man or a woman; you're a human being. And as such, guess what? You have the same feelings as everybody else. Your client, your employees, staff, partners, vendors, advisors; they’re no different. They are no different. You have to bear with me because I’m attention deficit and I got a bunch of transcribed notes, and I lost my highlighter somewhere. Maybe you found it. Got one? Doesn’t matter. I needed to do it two hours ago, won’t help now. Here. Thank you though. If I had this two hours ago - where were you two hours ago when I needed it? Aren't you a psychic marketer? You should have knocked and said, 'I don’t know why, but here.' (Laughter) You ever see Close Encounters of the Third Kind? I’m going to start making mounds of clay that look like highlighters. (Laughter) What they're saying is, most people don’t even have a good picture of what it looks like. They don’t even know what 'it' is. They just - like they're trying to grope. Those people could be your clients, those people could be your team members, those people could be your loved ones. We don’t even know - again, they need a picture painted for them. We don’t even know; we don’t even have some of the phrases or clarity on what we feel and what we're bothered by, or what we're excited by, and your job, as the ultimate, most trusted advisor, is to help them get clarity. Articulate; put words, pictures, so that they see that you get it. That's what I’m doing for you, and if it feels good, it'll feel just as good for you to do it for them. And it's not just - and I’ve got to say this -there's three categories of clients. I won’t do that - I’m switching a lot of things in and out, so it's going to be a little frustrating. You have three categories of clients. One pays you, two, you pay. One of the people work for you, the other advisors, vendors that you use. You need them all engaged, you need them all seeing that you see life better and that you expect a lot from them, and you're contributing a lot to them, and you want them to be successful and prosperous, and that's how you get greatness across the board. And that's the only way you'll achieve the levels of growth you want.
With these people that I based the strategy of pre-eminence on - thought that we don’t even know definitively what we want because we're struggling. And your job is to put words to it, to assume - you should understand one thing. And hopefully I don’t come across really as arrogant and cocky. I come across as really knowing where I ;m taking you. We're on a journey. I know what you need. I know you think you're unique and different, and you are in many ways, but you’re not in most ways. And I know where to take you , and I know that if I take you on- there's a lot of routes I can take you there, and we may do a little scenic one, and you do not - you ever go on a rafting trip, anybody? We go rafting a lot. The most impressive and amazing rafting company, Oars, is good friend of ours, a client, and we've gone on five or six tours and we go rafting. It's cool because they pull wherever they want, they go on hike or whatever, about 12 different paths they can. But they always get to the end and it’s always a great experience. And that's sort of what I try to with you, and if you attitudinally realize that's what you're doing for your clients, that’s what you’re doing for your loved ones; it's a pretty neat liberating attitude. Also, people - some people used to - I hope you don't - they think I’m wasteful of time because I do things like bring my kids up or do the time warp. I’m not. You want to liberate and harvest, not harness. Harness, but not constrain your creativity. Let yourself be playful, let yourself be childlike. Man, I rode a bike and did crazy things, you can do that. Are you any less important? No. But have fun. Anyhow, people that help us understand and acknowledge, articulate, and then take action and formulate a definitive and compelling strategy to get a result, normally gain our trust, don’t we? You trust your attorney when he helps you out, you trust your accountant when they help you figure out a plan for you financial planner. And if you don’t then it's their fault, because they haven’t really given enough true value. And educated you enough. Ask yourself this question. I’m going back and forth because I’m making a lot of parenthetical comments, but this is so important that I’ll summarize it in a different way at the end. In your business, in your life, in your critical necessity buying and your indulgent sort of accessory buying, and your vanity buying; man or woman; did you really gravitate towards someone, and people who lead you, who guide you, who appreciate you, who appreciate what you're trying to do, who are empathic but authoritative; not condescending, but really zero in on your needs? You do don’t you?
Why should it be any different with the people you're selling to? I really do get you, even if you don’t know that. I get you at a deep level. So do most of the people here, and the ones that don’t, it's only because they need some connections, and once they make it, then they help you. It's a big difference. These people that I based this on; they felt like their critical purpose was the present views that their clients could trust. Absolute trust. Again, leadership, leadership, leadership, leadership. they saw their role, their function, their purpose, their advantage, their positioning, their pre-emptive position as being a leadership authority; although a benevolent one. An empathic, a [unclear], loving, but a very focused, very, very unflinching, very, very committed. I don’t mean loving in the wrong sense, I mean, the just really love their clients and they wanted the clients to get the best possible outcome. The greatest possible result. The biggest imaginable success. The greatest level of protection. The least amount of pain, suffering, of harm. Does that make sense? They really felt it, and they made all their employees feel it, and if they couldn’t feel it, they fired them. Really. I mean, just because it just didn’t work in their culture. Hold on. One of the things that comes in - it comes back from some of the referral things; these people had great respect for their clients and for their clients' intelligence. But they also had great respect for the value they brought to them. They believe that people inherently don’t trust the system. and the system can be many things. It can be the system of - it could be big, big, competitors. Big business. It can mean the way the government mandates. It can be the tax system, it can be our current way of life. It can be the rat-race. It can be the fact that everyone is relegating everybody to being a commodity, and it doesn’t limit itself just to business. Human beings feel like commodities too. Our wives, our husbands, our employees, out delivery people, our vendors. It goes both ways. And empathy and respect is really a powerful factor. Everyone feels like they are a commodity, so they don’t' feel like they have any connectivity to the rest of the world. the feel static and out of connection. They feel like they have no real purpose other than make your money, or do this. Your job is to make people see they have so much more purpose in a more totalistic and global expanse. It's a real big issue in this. By the way, those of you who are not entrepreneurs or professionals, or managers but you were lucky enough - probably screaming and kicking to be invited to be here; you got the chance to do this in your career. For all the people under you , above you; you have the chance to do this and
touch people inside and outside your business at levels you've never imagined. You can incorporate this into all elements of your life. The company that I based this on, they see themselves - they saw and see themselves - as representing a refreshing alternative to the mundanity, the norm, and the patronage that most people in business represent. They see and saw themselves as there's everybody else and there’s we there's us. And we're so definitively differentiated; we’re so pre-emptively different. They really believe that., and they are. I believe that about myself, and you should believe that about yourself, because you are. They saw- they don't take the premise of wanting to be mainstream, because they think that mainstream is a commodity, and mainstream is non-distinctive, and mainstream has little value. They - this client that I based this on believe that most people are inherently upset, mad, irritated, because they don't trust the system. They need someone to confirm that that viewpoint really is right. Or at the very least, there is a superior approach, a better alternative. Remember I said to you the first day,' You unintentionally are limiting, restricting, impeding the number of clients, the size of the sale, the profits, the repeat, the value of the business. Well, that probably, if you're the right person, here for the right reason; that confirms a gnawing, nondefined, non-verbalized belief that you had all along, didn't it? 'Ah, he was right.' But now I’ve got to prove it, then I’ve got to show you. And when I do, it's very liberating. I have your trust. I could have you - if I did it benevolently - march through that wall, and you’d try if I told you it was in your best interests and I did it because I believed it was. And I wouldn’t breach that. I wouldn’t have you do it if I didn’t. Hold on. They take a very positive, a very hopeful opportunity in this dilemma that everyone is suffering, and they see their role as representing hopefulness. Clarity. Liberating alternative that gets you where you want to be, and they see themselves as probably the only company today that can fully articulate where and what it is you do want to be or get. They take the role of basically conveying to people they're not just being told - that they’re not being told the entire truth, or they're not seeing any option available to them. And they take the role that, 'Here's the truth as we see it.' Here's the truth as we see it; we see it a little differently. We see it a lot differently. WE think, 'That's nice, and there's a good case for that, but we think there's a different, there’s a better, a more effective, more impactful.' And it's a very powerful role. They believe that most people don’t know what focus is until they've had it made for them. I made - at one of the programs, and I didn’t do it - and
there’s a reference here. I took this from another program, obviously, and at the other program, I took a moment and explained the meaning of business life and that was very helpful, so I'm going to, in my attentiondeficit way, explain the meaning of business life for about two minutes, alright? It's really very simple. Two things. I think I said the other day, I had to save you half a million dollars on therapy, or maybe I did it today. It's a process. This conversation is as good as it gets, and that's wonderful. And there’s none of you that are more or less important, and there's no one in your world, whether it's the janitor or whether it's the president of the bank; that is more or less important, and you can learn from everyone; and everyone has perspectives and mind-sets that you can gain from. That's the first thing. The second is, whenever two people come together for any transaction, whether it's business, whether it's love, whether it's fraternity, whether it's charity…(audio missing) ,,, party better off, because you were in their life for whatever moment, or whatever years or whatever action you're in. That deals with your employees - I know you're frustrated because you're trying to get them the most productivity, but you should rejoice and you should try to set an environment, and teach them, and collaborate with them; so they can have the best life, they can make the most money, they can have the happiest family, their kids can go to the greatest schools; they'll be the greatest success, and that should be one of your purposes, and you should bring them into the method to your madness. But it's a very liberating attitude if you can gain it. If you don't, life is really boring, and pretty pitiful. But if you get it, and you fall in love with your clients more than you fall in love with your business, it is just liberating. I’m lost, so I got to find my place. And I got - about making people better off; I wish I could say it’s an original thought. It probably verbalizes something that I inherently did but never put words to, but that I got from the interview of Fran Tarketon, and I think we had that interview transcribed, hopefully in tactical force. If not, I’ll be disappointed. Is it, Rick? I can't remember, but we'll see - you’ll see tomorrow, because we'll give it to you. Hold on. So most people don’t know the meaning of business life. You have be able to demonstrate and show it to people in actions, not words. And just keep in mind, the same feelings that I’m hopefully able to stimulate and stir and open- just pick it up - and you are the same feelings, relatively speaking, that you can open up in the minds and the hearts and the actions of your clients and prospects; and your team, and your vendors, and it's pretty powerful. It really is.
They'll do everything for you because you'll do everything for them, because you really - you have a passion for them, and you see how much of an impact you can make in their lives. They felt - these people felt like a key element of their function was connectivity and to help people take the next steps. That it did no good to say - just give them a data dump of information, if their clients and prospects didn't know what to do with it and why. But there aim was to always connect all the dots. Give them a plan. Help them take the next step. Protect them. Make the next step logical, easy, appropriate, obvious. They saw, importantly, that their role was really their ability to put into words what people wanted but could not articulate on their own. And then to help people get clarity, and then build on them an action plan. I submit to all of you that you’re missing an enormous opportunity if you don’t take that role of verbalizing and articulating - and I go out of my way to do it. You might think I’m crazy when a speaker gets ready to go off, and I nail them for more clarity and more articulation, but doesn’t that make a big difference. Doesn't that open it all up. The same phenomena, the same dynamic, the same methodology, the same tactic I’m using is what you can use. And it works. Not because it’s manipulative, but because it's the most benevolent and honourable and wondrously contributing thing you can do for people. You're helping people get off their chest something that they maybe carried with them for a long time and never - it's terribly relief giving. They watched how - this company, watched how people felt when they found someone who got it. Who understood it? Who cared? I’m going to try to tell you by stepping outside of this experience that I'm orchestrating is that you are a human being. And human beings are immutable, from the time, whether you’re religious or whether you’re an atheist, and you believe God put us on the Earth or fish crawled out and turned into man; it doesn’t matter. From that point to the time there's Armageddon, or we’re annihilated by nuclear holocaust; human nature is human nature, is human nature. And you have the wonderful opportunity to contribute to it at the highest levels, and have the greatest joy in - I’m having a great time. Can you not tell that? I’m having fun. But I’m having fun trying to change your lives forever, not having - trying to be a brilliant platform speaker who's going to get 10's on the ranking. I don’t care if I get zeros. That's not what it's about. It's about changing your life so you can go back in your businesses will be valuable, and you'll be able to contribute to a lot more people and help them and protect them and enrich them, and you'll make a lot of money, and you'll do good work with it, and you’ll retire and have
happiness, and your family will have more of your time and get the best out of you because you won't be stressed out, and that's the same kind of a mind-set as far as futuristically looking transaction ally at the impact you have on people. It's just wonderful. Hold on. Makes sense, doesn’t it? Yes. Okay, they saw themselves selling a point of view. Never saying, ‘Do you want -' never saying 'Oh, do whatever you want, everything’s okay.' that would be to steal. And I’m going to interchange. I believe you have a moral obligation. If you’re going to be the most trusted advisor somebody has; a fiduciary; you have a moral obligation to never, ever, ever allow anyone to buy less than they should, a less combination than they should, and less quality levels than they should, and less frequency than they should. Not for your best reasons, but for theirs, because they will get a lesser outcome. Do you understand that? At the very least, you owe it to them. You owe it to them to educate them. Point of reference. Am I screwing up dinner? When’s lunch supposed to go? You want to go to lunch or you want cold noodles? You make your choice; it doesn’t matter. Okay, presume - i need a glass. This is dirty; I need a white glass, clear glass. Anybody got a clear glass at your table? I'm not going to drink from it; doesn't matter. Could be - it could be - it's okay. This is fine, thanks. A reference. Pretend I am Jay Abraham and I own Jay Abraham’s bottled water shop and water bar, and - what's your name? What is it? Narima comes in and throws a dollar on the bar and says, 'I want a half a glass of water.' If I go, 'Okay, sure. No problem.' And I go and i pour it and give it to her knowing as I do that she needs to get seven and a half more of these each and every day, so that her body's cellular structure will be nourished, so that her brain chemistry will work, so her elimination will eliminate, so her mind will operate and peak, and she'll have the greatest, stress less life, that she'll be greatest contributor to her either - her business, her clients. The greatest mother, the greatest wife, the greatest spiller of water. (Laughter) The greatest - if I don’t at least do everything in my power to educate her so that she at least understands the implications, then knowingly she can make the decision to only have this half. But I exercise my responsibility as her fiduciary; do you understand that? Same thing if she came every two days and bought eight glasses but didn’t in between, and I took her money without first making certain either she was getting the other eight somewhere else or at least she knew that she would be benefited much greater; I’m stealing from her. Doesn’t mean she has to do it, but that’s the mind-set you have to use. Because a lot of people say, 'Oh, I couldn't possibly push her to buy more than they want.'
People don't know what's in their best interest. Do you think they all do? Do you really? How many think that most of your clients really optimize what they could be getting from you whether you sell products or services? Raise your hand if you think most of your clients optimize it. Raise your hand if you think there's a lot of work you could do to help them. So this should be a reference. When you go home, on your desk, put a half a glass of water at all times and use it as a reference model. Seriously. Many people are very clumsy, very self-serving in their efforts to sell. That shouldn’t even be - it just shouldn't be necessary if you don this. It should be just a fluid, natural thing, because you know it'll work, because your intentions are right. And it's like this concept, I said to everyone, - we have a plan we start this program on, and we don't much care where it goes to, because it always works out, because our intent's right. We know you're going to get involved. If it goes in the wrong direction, we - it’s like it’s a raft; if they get a little bit off, they put the oar in and change around. It always goes downstream, it always ends up at the takeout and everyone has a great experience, and if you flip a little bit, that makes it more exciting, doesn’t it? Really. As long as you keep your feet up and don’t get trapped under a rock. (Laughter) I think this could be a little dicey. Hold on. If you live by a belief system that’s genuinely outwardly focused; that's genuinely sees your higher causal purpose as being to enrich and contribute to other people's lives; not just to make money; to bring greater benefit, greater protection, greater advantage, greater financial benefit, greater savings, greater safety, great productivity, greater whatever; it really is a job. It really makes the process so much more enjoyable; you can’t wait for Monday, can't wait for everybody. It’s like, this poor guy came up to me, and I felt so bad, that he said, 'I’ve got a terrible reversal in my business. Maybe here; maybe left,' he said, 'I want to know if you’ll take half the fee to take the home study and let me stay.' It was at 2:00; I said no. I said, 'But I’ll let you make turns, you can make payments for them for 50 years, if that's what you need. But if you don’t revere it, go home.' But I’m very much empathic to people. I know people take advantage of me, but you can be very flexible, but you can also be very business-like. It's really difficult to do if you do not believe and live by what I'm talking about. Seriously. If you don’t believe and live with a focus outwardly - it’s like - and I say it again here, but I'm going to pre-empt this. Most people fall in love with their business, their profession, their product, their service; being the fastest growing company in the market. That's not the
key. The key is to fall in love with your client. Live for their betterment. I mean, like the realtor - don’t think about the commission. Think about, 'Man, I saved this person $50,000. They got a better mortgage; they're going to have $50,000 more of asset value. They were going to buy this house; I was able to get them a house that's 20% better now. It’ll probably be worth $1 million more; their life will be enriched. It'll be a better neighbourhood, every time they drive home; they're going to be so much more joyously relieved. Their stress will be - they're going to wake up and they're going to have such a glorious life; their values are going to appreciate; their kids are going to be able to get such a greater influence. Their success is going to be -' think about that. If you start living in that kind of a mind-set, and stop - never again see yourself as a lowly commodity; it’s pretty powerful, don’t you think? Hold on. To live by this belief system, and outwardly focus, is just so cool. But if you don’t, it's just horrible. Secret to making business really exciting is to be in a passionate awareness and a commitment to a higher purpose; and higher purpose that’s not your own enrichment. Although, duh; the greatest benefit that is bequeathed you for being self - the most selfish thing you can do, is be self-less. And Chet was out there; I said, 'Chet, you'll have 40 great companies coming up here wanting to either do long term deals or joint ventures with me, because they see that we can help them better than anyone else. Not because we're manipulators, but because - it's just so - it’s like in the - and we know those, what is it, beginning of the constitution or Declaration of Independence? We know these truths to be self-evident? It's really power - I’m trying to give you like a key here; this is like really seminal stuff. A little bit awkwardly presented. So the secret to making business really exciting is to be a passionate awareness, commitment to higher purpose. The higher purpose is not your own. It's a different kind of financial psychic or transactional enrichment of other people. That's what you’re focused on. Helping their lives be better; helping them be more fulfilled. Helping them to get more out of the process, or life itself. Whatever you're doing, whatever relevant result your product or service or company deploying its efforts, and they'll be half producers. This company that I based this on saw their purpose as making their client the centre of attention. They saw their purpose to bring people in sequentially. You'll see that when Carl and I are interviewed tomorrow, or when I interview him, or Rick interviews us, or Mac interviews us. And they found - they believe people are on a continuum; they're not all ready at the same point. And they keep bringing them all, and advancing
them. Not just sort of coming in and out. Static, but starting somewhere and progressing them and not starting everyone at the same point, because different people are at different points in their life. That's why I'm hitting you with so many different points; not trying to overwhelm you. I’m hitting you with the same message from so many deferent avenues because - did you ever have a revelation in your life? Did you ever have an epiphany? After you have it, do you ever think, 'Damn, that's always been there. Why didn't I see it before?' Because the convergence of factors, the alignment of the stars and moon; something happened. Something transformed you. And guess what? You saw it. That's what I’m doing for you. That's what you have to do for your clients. All three categories. The one category that pays you; the two categories you pay. Hold on. Keep in mind - as I said, you are a human being. Human nature is immutable. It's been immutable from the beginning; it will continue. When you understand that you are human, the way you react to me or you react to each other is the same way all your clients and all the other human beings will react; it gives you great power. Ethical power; to harness and direct, in a very benevolent, in a very, very heightened and very, very purposeful manner. This company that I built this on, they felt hopefully - they felt very hopeful about their clients. They saw them - they were in the investment field, they were in the health field. They saw older people living vibrant, longer, richer lives. They saw people over 60 having just wonderful sex lives. They saw investors not getting wiped out, but building great wealth and security, and not being stressed and retiring early; and having the time to do everything they wanted. That was their real vision that drove them; it was indelibly imbedded in their minds and in the minds of everyone they hired and dealt with. And that's how they all - when I interviewed 20 people, they all mirrored the same thing. Am I wrong, Mac Ross? Where are you? I’m absolutely right, aren’t I. This is really right on the money, isn’t it? It's powerful stuff. They always embrace their client's situation with hope and promise; just like my hope and wish for you is that you will get so much more out of everything you do every day from now on. That you'll allow yourselves to get so much - got to read my notes, because I won't do justice to them. More productivity, much profitability, so much more connectivity. So much more residual value, from every dollar, every effort, every opportunity, every interaction. Every client. Same philosophical basis what these people live by, and what they communicated to their clients. They had hope. Hold on.
It's like - somebody said something to me one time, and it was really insulting, but for the wrong reason. It was a cynical journalist in the UK that was interviewing me at a very, really wonderful program about this size, and he said, 'Are you like most of these people; you actually secretly sit there and think, "I wonder what those girls would look like naked?"' And I said, 'Honest to God, there are probably a couple.' (Laughter) But I said, 'Truthfully, no. I see everyone in the room as innocent little six year old, four year old, five year olds that I get the chance to bring back to innocence and hopefulness and possibility. And I see them like sheep that have gone astray; baa, baa, baa. And I get a chance to re-excite them, and re-direct them, and re-ignite their passion and their sense of possibility and purpose, and then give them specific -' and that is really what I believe, but I'm not saying it so I'll sound like such an almighty wonderful person. Although if my wife's in the room, hopefully I'll get laid tonight. (Laughter) But what I really am trying to do is show you that what I really believe is that you have the opportunity of doing this for your clients, because you're all a bunch of little children. We're all scared kids; me too. I just either don’t show it quite as badly, or I have passed through a couple more learning curves, but everyone is scared. Everyone wants to find the wonderment of their childhood. Help them, lead them, guide them, nourish them. Give them the confidence, the security, and you won’t believe what will happen. So, these people have incredible hope. Okay, hold on. And also, you'll have so much more appreciation for everybody, and you will have so much…(audio missing)
Jay Abraham Mastermind Marketing 19 …standing ovation; go home and do nothing. I made a lot of money, but I felt like I was cheating you. Now, I don't get a standing ovation; I don't need it. But you guys can't help it. Unless you're brain-dead. I'm going to come at it over, under through; from the front door, the back door, CAT scan; hit you from every pursuit. You think it's possible that what I'm doing; what everyone else is helping me do and everyone at this table and everyone in this room is doing for one another, isn't going to haunt you favourably for the rest of your life? Do you think it's humanly possible that it won't? You could do the same for others. Hold on. Mac, the story of the two Greek [unclear 00:47]. Who were they? Perecules and Damocles? Which one was the professional? [Unclear comment from Mac 00:54] Which is the one that they followed? The
general? Okay, the story about - you want to tell it? So I tell it wrong, but it doesn't matter. Two stories. There's - Greek - Greek battling Rome. That's right, Sparta. Who cares? (Laughter) Somebody's battling somebody. There's these two people that try to mobilize everyone to go to battle, right? Is that okay? One's professional order named something, the other's a lowly general farmer. You head the story every way; it doesn’t matter. He's not as profound a communicator, right? The order comes up and from every filament of his professional being; [unclear 1:38], and articulates and compels them, and when he's done, everybody goes, 'Whoa. God, that was the best speech I ever heard. Bravo, bravo. Kudos, Kudos. Encore, Encore.' Then the - it could be the general; or my interpretation was a lowly farmer who had a passionate connection to the land. I like my story better even if it's not true. And felt his family had been there for decades. He couldn't possibly imagine his children not continuing there, not enjoying the same joy he had. He couldn’t imagine the beautiful purity and the virginal - the greenery being desecrated. He couldn’t - and he talked from his heart, and he wasn't eloquent. He was passionate, and his felt - he loved Greece. Greece? He loved Greece, he loved the people. When he was done, you know what they said? 'Let's march.' So do you want people want to say how cool your advertising is and how clever your marketing is, or do you want them to march with and for you, because you're looking after their best interests? That's the difference here, that's the difference here. People have to recognize your advice as a solution - excuse me, let me finish this. You don't want them to say, 'What a great ad.' I must - they have to recognize your advice as solution to a problem they feel emotionally, as well as rationally connected to. Those of you who can't understand how somebody can't see - you ever do something and say, 'I don't get it why they can't see the logic in this?' or 'That's obvious?' ITs because you didn't reach them on the right levels. You didn't understand their reality. Like I quoted yesterday. the Eastern philosopher, Krishna [unclear 3:16], and somebody gave me the book and I can't remember - what's the name of the book, whoever yelled it out to me? If she's still here - hopefully she didn't leave. That book was - he said, 'You've got to take the time to observe, understand, examine, evaluate, reflect on, empathize with, how other people see life.' Don't have to agree with it, but if you don't appreciate and understand it, how are you going to take - how are you going to lead
them, how are you going to help them, how are you going to resonate, how are you going to be able to guide them? How are you going to help them get what they want, if you don’t care about what they feel? They have to recognize your advice as a solution to a problem you feel emotionally - I said that. Okay. I've shown you already how one little shift can make the biggest difference in the world. Well, you got to do that for your clients, all three categories of it. Okay. What you can be providing people can either be a great result or a good or better feeling, or both. And it's very important you understand that. Maybe you don't have a distinctive advantage on price or performance, but maybe you have massive [unclear 4:22], the way you can get into their awareness, into their - you can empathize. You can acknowledge them. You can respect them. You can empathize, you can advise them. Everybody - individuals, people, your clients, your employees; they want to, so very badly, to feel good about themselves and the way they conducted their decisions and their life. More people take less action because they're afraid it won't be right, they're going to look dumb, or they will have screwed up. Your job is to acknowledge that reality, and to say, it'll be alright. The world won't collapse. Something happened earlier, and I was really livid about something, and I said, 'It's okay. It didn't please me - it'll be okay. We'll get through it. No big deal.' People do more things to curtail making gains, because they don’t want to look foolish. This is where risk reversal, both financial and psyche, comes into being. They'll work harder not to look foolish than they will to work to an advantage. It's human nature. Don't argue with it; accept it. Now, because I want to get you fed, I’m going to stop this, and if time goes on, I'll continue it later, but I'll give you - no, no; I'll give you a shorter version, because they're some other points I didn’t make. So my belief is that each and every one of you have to decide you're going to be the most trusted advisor. You're going to be their fiduciary;. As one, you're going to fall in love with your clients, not yourself. As one, you're going to deal with people who buy from you as clients, whether you verbalize it that way or not; you're never going to call them customers, you're never going to call them patients, you’re never going to call them - whilst everyone is leaving, I'm going to give away something free here. When it's here - and you’re not going to know about it. You know why I call everybody clients? Some of you who have been around me, and a lot do, because - look it up in a Webster's. A customer - I mean, we're in a world where the whole world is - there's like two different elements of the world trying to smack us down to commodity status and
marginalize us. Consumers who are getting better educated and want to just let us have no money to stay in business, to nurture and relish, and nourish quality people and quality service and performance, and you've got competitors who don’t want anyone to see us as different. We can't accept that. We've got to draw a line in the sand, and decide that once and for all, we are proprietarily unique. We are different. The way to do it first of all is not call anybody a customer because you look it up in a Webster's, it says 'somebody who buys a commodity or service;' you're saying 'Hey, I’m worth nothing, I’m a generic marginalized commodity. Have at me. Want me to cut price? Sure. Here, take a little bit more margin; is that not enough?' Same thing, unfortunately, even patients - patients are not - they're somebody getting treatment. Clients; look it up in Webster's. 'Somebody under the care, the protection, the well-being of another.' It's a much more loftier role. Much more spine-tingling, heart palpitating, powerful thing. When you're falling in love with them, you will never, ever, ever again allow them to buy less than they should, less quantity, quality, combinations, frequency. Because they're stealing from themselves and you’re facilitating and contributing to it, and it's illegal. It's certainly immoral. You will always tell them what you really believe and why, and what's in their best interest. You will polarize. Some people will not like you, and that's okay. Five or six people left at 2:00. Think I'm traumatized that I lost $25,000? No, I’m very gratified that I gained resonance and connection with 645 of you. And I learned a long time - actually I learned this from Howard Ruff. Polarization is very good, not for it's pure effect, but because you've got to be committed to serve a category of people, and you can’t be all things to all people. Better to be loved or hated than tolerated, because unless you really do something terrible; unless you kill somebody or rape their wife, or do something horrible, they don’t have time to hold a grudge. They just won’t buy with you. But if they love you, man; they'll do anything you ask. They'll move through mountains, won't they Mac? And the key to - we're giving you all these great marketing things, but everybody thinks, 'Oh what manipulative things do I have to say or do?' And we're going to give you great scripts and Chet's going to teach you this. But the truth of the matter is, once you understand the strategy of pre-eminence, it's all about how much more value do you have to render that is appreciated, desired? And the key is, you've got to be seen, because you are the only viable solution to a problem or an opportunity that they've never had verbalized before, and because I want you to get off to lunch, I'll say only that the strategy of pre-eminence should
underpin everything you do. the ads you run, the sales approaches you use, the culture that you develop, the relationships you have with your people. Hopefully, the relationships you have with your loved ones. I just think it's the coolest thing in the world, and I haven’t done it justice, but - and after lunch we'll come back and - Rick, what are we doing after lunch? Rick? Oh, there's some messages and announcements I got to make. What is it? Name tags. What's the message about name tags? [Unclear comment from audience member 9:41] It's also your entrance in and out, isn't it? We don't want people who aren't here. We found somebody who didn't belong here; we very graciously offered - they didn’t know that they didn't, and they couldn’t afford it. We gave them very great terms; didn’t want it. And we asked them very nicely to leave, because they didn't belong here. Some people we don’t - keep it, because it's a souvenir too; you can frame it when you get home. Honestly. And you want people to know who you are, because, again; if you get what I’m all about, and if you don't, you shouldn’t be here; you want somebody to feel comfortable to say, 'Hi, Greg, let's talk.' You don’t want someone - you don’t want to feel awkward. Are you more elite than anybody else? Make it easy to do business with you, don’t make it difficult. Make it easy to contribute. Make it easy to feel - willingly share. One last thing. I've got to tell my story about Australia again, because I think it's important, don’t you? Interesting? I’m going to tell it real quick. I'll just tell the bottom…(audio missing) The only way you'll ever become the most interesting person in the world, is to become the most interested. And to listen. The only way you’ll ever become the most important person in the world is to make everyone around you feel and know that they are important. The only way you’ll ever become the happiest person is to make everyone else happy. the only way you'll ever be the most respected person is to respect, and it's a mirror image of whatever you want, and it's the most liberating - like the secret is there's no secret. It's real easy. Okay, Rick, what do you want me to say before I let them go? Have a great lunch, and when they come back, who are they going to be with? An hour and a quarter lunch. Remember - stop; before you leave, all of you who were on - in the line and didn’t get done, and all of you who stood up as users of each of those techniques that we showed, who promised you we'd sit at the tables, share what you did, how it did, what the impact were; take your plate and go to someone else. Please uphold your commitment. I trust that you will. Anything else? Thanks guys. An hour
and 15 minutes. [Audience chatting to each other, music playing until end of audio] Rick: Our next presenter is a close associate of Jay, obviously. I know him because I’ve been working with him for the past week, trying to formulate his presentation, and help him get some of his material to you. One of the things you need to know is that his material is on the bonus CD. So Jay thought his stuff so vital, so important, that he and Jay - or Jay and him, worked out an idea to get the material on the CD and maybe he'll talk about it in a little bit. But he is a strategic consultant, executive coach for Silicon Valley companies, and financial institutions. And I’d like you to give a warm welcome to Paul Lemberg. (Applause) Paul: Thanks, Rick. Thank you. Am I on here? Good. I’m counting on Rick to do the slides. I don’t have ADD, but I do have a bad memory. (Laughter) So the slides are - I’ve got to look at slides to be cued. I have a confession to make. I’m a little embarrassed about saying it in light of all that we've heard for the past day and a half, but I don't feel as if I have room to take on any more work. And I don’t know, I ;m wondering; I wonder about that. As I say it, I’m a little embarrassed, and I wonder if anybody else feels that way; that they have room, given everything that they're doing, all their projects, all their companies, all their tasks, everything; that they have room to do more than they’re currently doing. So, a show of hands. People who don't feel like they have a lot of room to take on more. Yeah, that's kind of what I thought. It's about half the room. And the rest of you; about how much room do you have? Do you have room for about 10% more things? Show of hands. 10%? 20%? Hands down - hands stay up for twenty - 30%? These guys aren't working very hard. (Laughter) Audience Member: no, we're going to work smarter. Paul: Right, you've got to work smarter. I'm going to talk about strategic focus, but on the CD is a program called double your new business opportunities, which is how I met Jay. I decided to create a strategic alliance. And I called up Jay to talk to him about this, and I ended up as part of your bonuses. And I ended up here. So, flip to the next slide. Can anyone count the black dots? (Laughter) It’s hard, right? Can anybody do it? Is there anyone who can count the black dots? You can't. No, you can't count them. You can assume how many there are, but as soon as you look at them, they're gone. I feel like that's the issue of focus here; you see the black dots in your periphery. I thought they were in my periphery. And then when I went to look at them in my periphery, they're not there either. So we'll talk about
more of those later. Why don't we go to the next slide? I got this exact statistic from my friend Tom Mason, who is sitting there. '62% of all business of all kinds, fail within the first six years.' And for franchises, it's even higher. It's supposed to be lower, but it's actually higher. So why is it? Why is it that those businesses fail, why are businesses in trouble, and what can you do to be successful with the material here? So who was it; was it Brain Tracy who said it? He said - there he goes; he gave it away. 'What matters most about this program is what you do....?' (Audience says 'Afterwards.') 'Afterwards.' Right? And we come here, and there's - we already have ton to do. Most of you admitted that you don’t have room to do more. What I loved about the strategy of pre-eminence, is that it doesn't require me to do any more. It requires a change in being; I might have to be differently if I’m not already being that way, but I don’t actually have to do any more. But I’ve already got a list of about 65 things that I now want to do, and we haven't even gotten to the tactical part. Right? Who's list - let's count lists. Who's got a list of 30 things? 30. 40? You guys have small lists. 50? Alright, upwards of 50? Okay. Anyone upwards of 100? We have a lot of things to do, there’s a lot to do here. I’m going to move this, before I fall over it. Slide? So, the beginning of the program, Jay asked everybody who had taken the grounding material, to come up to the mike and talk about what they had done with the grounding material and how they'd profited. I did a little quick calculation. It looked like 3% of the audience had actually taken action, with - I don't know; what does Jay say? $80 million dollars' worth of material, that was being handed to us on a platter. (Laughter) $80 million dollars, and 20 years of stuff? And there it was, and only 3% of us took action on it. How come? Somebody said to me this morning that yesterday was like a fire hose. And he said it in a good way. 'It was like a fire hose; the material.' All this material, coming at you, all of these ideas. The problem with the fire hose; at least for watering purposes is not much of the water lands there. It goes everywhere else; it bounces all around, but it never gets the chance to soak in. Each new bit of water that comes out of the fire hose, drives away the previous bit of water before it has a chance to soak in. So what happens? It just - it ends up watering the lawn. And if you try to water your lawn with the fire hose, you turn your lawn into mud. So fire hoses are great for this kind of subliminal grounding, and I think that's what Jay's talking to us about. This kind of subliminal, background of information, but what we really need to be able to implement the ideas, is to turn the thing down to a trickle.
I don’t know. That's how I feel. That there's so much to do, I don’t know what to do first. And the whole issue of strategy is to figure that out. Okay, I want to talk about something else for a minute, and then we're going to get back to it. I'd like to see if you would stand up; because I really want to clarify this. How many people here are oper - no, no; you don't all have to stand up. (Laughter) How many people here - see, you were quick, and I like that. How many people here are operating more than - I’m going to say two major projects; that might be two businesses, that might be two completely disparate projects within the same company structure; but basically operating two businesses? People, stand up. Stand up. Wow. Look at that. Just look around. So everybody here is doing more than one completely - one item having nothing to do with the other type thing, aren't you? Boy, that is distracting. Okay. Why does that happen? Why does it happen? Go back a slide, if you would. It looks like it’s an opportunity. I was with some clients this week, and what we ended up doing was cutting out a whole big segment of their business. And the biggest concern about doing that was that it'll help us cover our fixed expenses. So, as entrepreneurs, we say, 'Wow, we've got fixed expenses, and some of us have significant fixed expenses. We've got all this overhead, we've built up businesses, and there’s a lot of fear. There’s a lot of fear that there's not going to be enough customers. There's fear that there’s not going - clients. There's not going to be new clients. There's not going to be new cash flow. And an opportunity comes along, and we grab onto it like it’s really an opportunity. It might be a distraction. It's always cash flow. Right? Fear leads us to grasp on to every [unclear] business opportunity which comes by, because we think that it's going to provide - and it will. It will provide cash flow for us. So we say, 'Wow. I’ve got fixed expenses, and I’ve got to cover them, and here's an opportunity of something I might be able to sell to my customers - my clients. So I’m going to do it.' Or here, 'Here’s another opportunity; that looks really good because I can grab on to all these clients over here, and that'll provide some cash.' And I come over here and I do the same thing, and one thing that I’ve noticed about entrepreneurs is we're very sensitive to cash flow. So we say, 'Huh; this'll give me more cash flow. I’m doing it.' Okay. Al Ries. You know Al Ries of positioning fame; Ries and Trout? Ries wrote a book called 'Focus,' and it's a pretty short book; it’s about 150 pages. It's great. It's on one thing. It's on focus. And it's just example after example after example of focus. And he says in case after case, every single company, and the one that stands out is Coke and Pepsi. And you have Coke, which is a soft drink company. And then you have Pepsi, which
is basically a soft drink company, but it’s also a restaurant company, it's also snack food company. I don't even know all the other things that they're in. But if you compare their market value on a per-share basis, their market value for Coke is higher. And if you compare, according to Ries's research, every single company where you have focus company and a diffuse company; the focus company is worth more. In every single case. So, does that really relate to you as entrepreneurs? I don't know. Maybe, maybe not. I throw it in as something to think about. I'd like you to do this, just for a minute. Everybody take out a sheet of paper. You've all got sheets of paper that they're taking notes. Just write down, quickly -we'll spend 30 seconds. Write down all of your major projects. Go. It's not a Rolex, but it will keep time. Look up if you're done. I'll know if we need more time. Y'all need more time; keep going. All your major projects, all the things that are bringing you money, that you want to use to bring you money, that you think one day if you do it well, it will bring you money. Things that you want to do that won't bring you money but somehow fall into your business; all those things. Just keep writing them down. If you go past 30, go to the next side. And count them up; write a number next to them. How many they are, so that we know. We want to get data out here. Alright, I’m going to stop here. We have to do a countdown to see how many it is, right? You start at the high number and go back? I always mess this up. Does anybody have more than 50? Nobody could write that fast. Okay, so nobody. More than 40? 30 or more? See, I didn’t need the second slide. 20 or more? That's not that many; this isn't bad. 10 or more? That would be between 10 and 20. And then five to 10? Okay, so that’s two-thirds of the room. And then five or fewer? I'm double counting, but that's okay, we're not statisticians. Okay, good. So that's actually a manageable number. Five projects, ten projects; somewhere up to 20 projects; but for at least two different disparate businesses. Next slide. So what is strategy? We've talking about strategy, and one thing we know is that if you get a bunch of strategists in the room, everyone says it’s something different. So, what strategy is, and this is sort of a military definition; is strategy is the deployment or arrangement of your resources to produce - and the selection of tactics and tools to achieve your objectives. I'm going to say that again. It's the deployment of resources and the selection of tactics and tools to achieve your objectives. So that assumes a few things.
One, that you have objectives, which most of us have; and some don’t. And then it assumes that there are scarce resources. Go to the next slide. By definition, resources are scarce. You see, if you have infinite resources, you don’t need strategy. Militarily, the force with the biggest resources just does a frontal assault. And if your large Fortune 500 company, who is your competition wants to crush you, they just march forward. And they just roll right over you. So that's not a big time strategy. If you have infinite or very, very, large, hard to exhaust resources, you don’t need strategy. You just do whatever comes to you and usually works. Next. So by definition, resources are scarce. So, what's leverage? We've been hearing a lot about leverage. And what leverage is, is when you're inputs are low and you're outputs are high. So leverage was Archimedes; remember Archimedes said, 'Give me a lever long enough and I can move the world.' And what he meant by that was if you had a big enough stick, and a place to hang it, he could move something very large. Low input, high output. So increasing your leverage is very specifically keeping your inputs the same and raising your outputs. Or lowering your inputs and keeping your outputs the same. So far so good, right? This is going somewhere. So strategy is positioning your resources for the greatest leverage. Right? You can do things with your client list. And depending upon what you do with your client list, you'll get more or less leverage. If you were in Mac's clinics last night, you find that you can get more or less leverage out of an ad by how you write it. And then if you fit it into your business strategy, you can get more or less leverage out of it. So everything that you do, you can make a strategic decision about, and get more or less leverage by how you position it. So now we know what strategy is. And then we'll figure out what we're supposed to say next. Strategy is using your resources in the maximum way and positioning them in the maximal way, and selecting your tool; because remember, I'm assuming that you all don't have infinite amounts of the most scarce resource, which is time. Which is where we started. Time is the scarcest resource here, and then my guess is the next scarce resource is money. And then after that, I don't know; it's different for each of us. So we know what strategy is. So then we come to the hard part, which is that we live in a world of vast choice. And I have this word - a lot of people don't like this word; I love this word. It’s one of my favorite words. And its sacrifice. Sacrifice is an ugly word for people. But what sacrifice is, is giving up something of value, forfeiting something of value for something of even greater value.
And this is a key strategic issue, because as a strategist, you have to say, 'How am I going to deploy my resources? Which opportunities am I going to choose? Which of these - how many tactics are we going to learn?' 93 different referral systems. Wow. I am awed by 93 different referral systems. Which one are you going to use? You have to make sacrifices. You're going to make sacrifices on behalf of your clients. You're going to choose which ones to serve more highly than others. You're going to choose which projects to underwrite. Sacrifice. Next slide. Priority. This is another word people struggle with. You ever hear people say they have multiple priorities? (Audio missing) ...number two priority. There are no number two priorities. Priority means first. (Laughter) Priority means first. When you make your priority list, there's the first priority. Everything else doesn't matter. Why? Well, if you have a well-ordered priority list, you do the first item, and you go back to the list to see what the priority is now, because the world changed. You did the first thing, and everything else is different again. You know what the bad news about being the second priority is? You may never get done. That's really important. So now we've got sacrifice, and we've got priorities. What else do we have? So it’s all about opportunity costs. Is everybody familiar with the concept of opportunity costs? (Audience says 'Yes.') This is a really critical concept. Opportunity costs simply says that it costs you to do something in part valued by the thing you don't do. Does everybody follow that? That each thing that you choose to do bears the cost of the potential profits of what you don’t do. And that is the fundamental distinction of strategy, so we're stacking them up now. We've got sacrifice, we've got priorities, and we've got opportunity costs. I’m going to switch gears a little bit here. (Audience member: Repeat one more time, what...[unclear 1:25]) I’m sorry, say that again. [Inaudible 1:29] Opportunity costs means that everything that you choose to do, the things you actually choose to do, bear the cost of the things you - bear the potential cost, or the potential profits, of the things you choose not to do. So for example, you have two opportunities; we'll make it simple. You have two customers that you can call on. One of them's local, and one of them is somewhere not local. For lack of a better example. And you choose to fly to the one that's not local. Well,, you have an opportunity cost there, which is the sale that you don’t make to the one that's local. That's a really simple example. In your businesses, if you have more than one business, and 90% of the people here have more than one business; then the time that you spend on Business B takes time away
from Business A. Now I’m making an assumption. I make an assumption that Business A could still use more of your time. And if that's not true, go on to Business B,C; etcetera. But if it's not true; and I don’t believe it's true for almost anybody here, just from people I’ve spoken to; that every time you work on Business B, Business A suffers. And if you got Businesses B and C; when you work on C, B and A suffer, and so on. And the more you've got, the more mightily they suffer. So, I was talking about freedom. See this - I don't know if this is uniquely American, but I’ve only really studied it with Americans. Americans believe freedom means more choices. Right? Freedom means options. Who equates freedom with options? Am I the only one? Yeah, it's about half, and there's always the fact of the ones who don’t raise their hands. Because they're embarrassed. Freedom means more choices. Freedom means more options. the freedom to go where we want, to send our kids to school where we want, to buy where we want, to shop where we want, to travel where we want. There's a lot of freedoms that we enjoy, but us as Americans, we believe that freedom means more choices. And I say that we carry that into our businesses, which is that we want more choices. And then, here comes that old business opportunity that we had over there. And why can't I do that too? I looked at this, saw there was a way to get to my house, to here; and there were about 100 different ways that I could go. I had a lot of choices see that's very American. If you drive around Lvov, which is a city - it’s now in the Ukraine; my father was born there. It was named Lemberg, which is my name; when he was born there, and it's gone through a few names, it's been in a few different countries; but when you go to Lvov, there's almost no roads. There's a few roads; it's an old city; it's seven/eight hundred years old. there's a few roads; they're all pretty old, like seven or eight hundred years. But you'll be driving down a street and it's a street in a city, sort of like this one - not many are like this one. But you drive down the street and all of a sudden the road is gone. They just stop. If you want to go from Point A to Point B, there's only one way to go. You can’t go the other way; you don’t have the plethora of choices that we have. Next. We also think that rapid growth necessitates doing more things. This is a lot of build-up, but we're getting there. That this necessitates doing more and more things. We say, 'I've got to grow faster; that means I have to do more things.' And we come to seminars like this, and it would be great if we walked away with the one or two or three things, but we walk away with these big long lists of things. And then, we got to cocktail parties, and we brag about how much we're doing.
And we're going all this stuff - 'Oh, I’m working 16 hours.' I used to work 18 hours a day, and I thought it was a badge of honour. I worked 18 hours a day, I took a half day on Sundays; that was like 5 or 6 hours, and I thought I was in nirvana. And people thought I was successful. It was really a success thing, right? Work harder, it's a success. I got more on my plate, it's a success. You can’t beat anybody, it's a success. I did some work with a consultant; a man I hired to work with me on my business, and the first thing he said to me is, he said, 'Geez, this business sounds really great.' He says, 'Yeah, you're in the top three percent of all consultants in the country.' I said, 'Wow.' He says, 'And you're working too hard.' I said, 'What do you mean by that? I only work about 50 hours a week.' He says, 'Yeah?' And then he says, 'And look how hard it was to get this meeting. And it wasn’t my schedule.' And there it was; I think that, 'Hey, I've got it all handled.' And yet it took us 10 days to get a phone meeting together. Right, what does that say about our schedule? And then we wear it like it's a badge of success. I'm going to say that the only true freedom comes from commitment. That the true freedom that you have; the true freedom of action; the true freedom to blow your businesses through the roof, comes from a hundred percent total commitment to your business. I will illustrate. Does everybody know this story? This is one of those old speaker stories. So Hernando Cortez, who is one of these people that came and conquered Mexico, to be specific; he came and conquered Mexico, (audio missing) …was working for the Governor of Cuba, and Cortez lands there, and there are a lot of Mexican natives. They were Aztecs of some variety, and it's a very special name, and I’m not going to do it the injustice of trying to pronounce it. They were Aztec variety people; there were lots of them. There were probably 50 times the force that Cortez came with. Cortez says, 'Uh-oh, we're in trouble. This isn’t going to go well.' And then, so what's he going to do? He wants to go back to Cuba. Well, if he goes back to Cuba, Governor Velasquez is probably going to fire him, So it’s not going to go well either, because he'll get fired, you get disgraced, you go back to the country, you end up penniless; it's not good. So now, he's trying to figure out what to do. There's going to be a mutiny. His men are about to mutiny. They're sailing back to Cuba whether Cortez likes it or not. Cortez says no way; sets the boats on fire. What are they going to do? Now they have to fight. And they fight for their lives; the rest is history; the Mexicans aren’t happy about it.
But that’s Cortez. Next. (Laughter) This is my favorite. We were talking about the Greeks before, so we'll keep talking about the Greeks for a minute. The Greeks; the Spartans, specifically, were fighting the Persians. There were 4,000 Persians, and there were 200 Spartans. Leonidas, the king at the time, knows this is not going to go well. No matter how good a strategist he is. But he does the smart strategic thing. When you're a little entrepreneur fighting a Fortune 500 company, and he concentrates his forces. And he finds a little defile where two cliffs come together, and he positions all his men there, and they begin to fight. Now, this is a sort of a Renaissance painting and that's why they're naked. I don’t think they were really naked, but they wear red cloaks. Does anybody know why? That's right, because they couldn't see the blood. They knew it wasn't going to go well, and blood's depressing. (Laughter) Your buddy gets stabbed, and it's very - it doesn’t hep your morale. And then you get stabbed, and it really doesn't help your morale. But they were there, committed to saving Sparta - not Greece; we're going to mess it up again. to saving Sparta from the Persians. Well, the truth is, they lost. But they had huge freedom of action, and to me, this represents the ultimate in commitment. Where they said, 'You know, we're going to take some lumps here. But we're going to do it in style.' (Laughter) Very big commitment. Audience Member: They won the war, though. Paul: Ultimately, the Spartans won the war, but it wasn't - this, by the way, was the battle of Thermopylae, which is a pretty famous battle. You've heard of it; not known what it meant. This man obviously knows his history; and the Spartans ultimately did repulse the Persians; but not in this battle. Next. So, let's get to the meat of this. You will walk away from the seminar, like, it's a guarantee. You are guaranteed to walk away from the seminar with: 500 things to do, and at least a hundred new - you have two, maybe three already. A hundred new business ideas, and at least 50 possible joint ventures. I guarantee it. Jay's not here; I am guaranteeing it on his behalf. (Laughter) So that's what's going to happen. Check it out. 500 new ideas, 100 new business opportunities, and 50 - count them; 50 joint venture possibilities. And you all are going to be like deer in the headlights. (Laughter) 'What am I going to do?' You go home - what is it? It's not going to be Monday, but it's going to be Tuesday, and then maybe if you're flying, maybe it'll be Wednesday; but sometime between Tuesday and Wednesday, you're going to do the smart thing, which will be to rewrite your lists. and you rewrite your lists and you go, 'Oh my God.' (Laughter)
And then - the good ones. I’m using a judgement. The good ones are actually going to be able to winnow through it, and then the rest of us, are going to get back to work, or whatever it is that we do; we're going to get back there on Tuesday, or maybe it's going to be Wednesday, and we're going to do what? Business as usual. Right? I don't know; you've been away for five days, do you think there's issues waiting for you back at the office? (Laughter) Think you're going to have stuff to handle? How are you going to handle those 500 red-hot ideas? What are you going to do about those 50 potential joint venture partners? Each one is worth at least an extra seven figures to your bottom line. (Laughter) Right? Talk about distractions. Well, we talked about the 80/20 rule, right? 80/20, 80/20; I don’t know; it’s been updated. It's 90/10, now I heard its - what did Fran say? It's 95/5. Maybe it’s 99/1. You get the idea right? There's some things that work and some things that don't. There’s a small number of things that produce the results that you're looking for, and then there's a large number of things that don't. There's a small number of things that give you the bulk of what it is you're trying to do. There's an interesting statistic for computer programmers. Any computer programmers here? Okay. What's the ratio of a really red hot programmer, to your average one? In terms of productivity? Ten X. Ed Gordon, who is sort of the emperor of programming methodology… (audio missing) …to one. That's a productivity ratio between the really, really, really good ones; and they're not as rare as they sound. But the really good ones there's one in every company, by the way. And then they normal ones not even the bad ones. We're not talking about the bad ones; we're talking about the normal ones. A hundred to one. Who's the top sales person in a company with multiple sales people? Anybody here? Anyone who sort of fits that description? Okay, you. How much more do you produce than the average rep? Man 1: Crikey. Paul: Roughly. Ball park. Man 1: About 6 times. Paul: About 6 times. So I can't do the math in my head standing on the stage, but that's a lot. (Laughter) Thanks a lot. So the trick is, knowing which are the 80 and which are the 20, right? Which are the 80 and which are the 20. Which are the 80% of the things that aren't worth doing, which are going to produce 20% or less of your results, versus the 20% of things which are really worth doing, which are going to produce 80% of your
results? And then, because we had 500 things, 20 isn’t enough; because that's still 100 things. So now we need to do the 20% of that, so now we're down to about the 4%, and we probably might even want to do the 20% of that, which is about a point and a third; which times five - that's about eight things. That sounds good. You might want to cut it down from there. So, now we're thinking strategically, and while we're doing that, if you’ve bothered to look at your business, and this is a good place to start. Make a list - you might want to note this down, because you won’t do it now, but it's worth doing. Make a list of all the things that you do in your business. You might go further and make a list of all the things everyone does in your business, but you make a list of all the things that you personally do in your business, and start to rate them. Which ones produce result, and which ones don't? Which ones make a difference, and which ones don't? So, the movie City Slickers - Curly says, 'Do you know what the secret of life is?' He says, 'There's just one thing. You stick to that, and all the rest of it don't mean anything.' And Mitch says - Mitch is the Billy Crystal character. He says, 'Yeah, but what's the one thing?' And Curly says, 'Kid, that's what you got to find out.' Next. So how do you figure out what to do? This is a quote; I don’t fully understand it, but I like it. (Laughter) "One should not always think so much about what one should od, but rather what one should be." Just remember that. Let's go. (Laughter) Go forward. Start with what you want, right? So strategy; what's strategy? Strategy is the deployment of your scarce resources; money, time and whatever other scarce resources you have; and your selection of tactics and tools to produce your objective with maximum effect. Alight? That's the complete definition of strategy, so where do you start? Start with what you want. So what’s the context for that? What’s your highest purpose? So your business has purposes. Jay was talking about higher purpose before, and I'd say that’s a personal decision, whether your highest purpose is making money, or whether your highest purpose is transforming your customer - your client; or whether your highest purpose is something else entirely. But you have a higher purpose. And your higher purpose is served or not served by the actions that you take. So, you see strategy strategy is a military concept. People don’t like that. A lot of people don’t like the strategies…(audio missing) …military concept, then where are you? Well, you're into killing people, or maybe - at the very least you're into competition. Right, so as soon as you're into competition, it’s a whole other ball game. But - during World
War 2, the French, at the beginning of the war, had as many men and weapons as the Germans did. The French didn’t know this, by the way. (Laughter) And that was really the problem. So first of all, they had a failure of intelligence. But everybody thought that the Germans totally outweighed them, and the French sort of hunkered down behind this very long fort called the [unclear 00:31]. And that was their strategy. They picked a strategy - it was a defensive strategy; it was a bad one, as we know. And they just sat there behind the wall, and then the Germans ran around the wall and then France sat out the war. (Laughter) That is a perfect example of what you do with your resources that makes all the difference.. You have scarce resources, and in this case, they had bunch of men and weapons. And you've got a bunch of salespeople, and client lists and products that you're developing, and so on. How you deploy them and what you choose to do with them, makes all the difference in the world, Remember, the Germans and the French were equal. They were equal in every respect. Except outcome. They were equal in every respect past outcome, save strategy. And then, very quickly, they weren’t equal anymore. Because one strategy went up against the other, and the French strategy caved, and what was left was nothing. So, what's your highest purpose? So what is it you're trying to accomplish, and then, what's your greatest contribution to your highest purpose? Now these are vague. We could get into worksheets and all sorts of stuff about how to make them less vague. You know what your highest purpose is. Be clear about it. It might take you a sentence, it might take you a paragraph; it shouldn’t take you anymore. What are you trying to accomplish? And then measure every single action that you take against that. There is no simpler way to define strategy than that. Measure every single action you choose to take against that. And if you do just that, that’s how you manage the 500 things, the 100 opportunities, and the 50 joint ventures. Because what will happen; most of them won’t really matter. Most of those 100 business opportunities will be distractions. What's your biggest payoff? You have these hundred - I know it’s not a hundred; but you have these 50 - and maybe it’s not 50 - joint venture opportunities. Or these business opportunities, or you've got the three that you're doing now. Wow, three's a lot. Could be five, could be more, but not for most people. So how do you get it? You do the math. This is the ugliest slide I’ve ever seen. (Laughter) The next one might be uglier. These are in your book, along with a few other things, but the gist of this is really simple. No, go back, go back. You want to figure out what's
the results. See, people, I have been at these things. Not Jay's, but Jay's and other people's; where you meet a lot of people. 'Gee, there’s 750 people in the room.' If you can’t come up with 50 joint ventures, you're asleep. So you’ve got your 50 joint ventures, but you haven't bothered to figure out what they’re going to earn you. They seem like good ideas; they seem like good people, you think there's some synergy, but nobody does the math. So you got to do the math. What's the payoff? How much is it going to earn you? Enough. Good scenario, a middling scenario, and a crummy scenario. And then you rate probabilities, and you don’t know. You don’t know, but you have to start somewhere. So you make it up. You say, 'Well, it's 25 % good and 50% middling, and 25% bad. That'd be a decent place to start.' And then you throw in some of Jay's strategy, and some of Chet's strategies, and all of a sudden - well, maybe you shift the odds up. But you do the math and you multiply it out, and you put a number on it. And then what do you do? Well, you do it for everyone. Now this is a very short table; I think it's got five holes in it. You need about a hundred of them. But you start doing it with every single one. Takes a little while, but it's less time to invest than the work you’re going to do building this business. Or the opportunity cost that you are going to suffer in your core business while you're running around with those 50 joint ventures. One of them might really pay, yes. Audience Member: What does the 'W' mean with the brackets? Paul: Ah, the 'W.' Yes. the 'W' is very important. So we have - I'm just going to go through this quickly. We've got an opportunity to name; we've got the value of that opportunity. All that great calculation you did; you must do this. People who aren’t good with arithmetic, get your kids to do it. (laughter) Do it on a spread sheet. This should be done on a spread sheet, right? This is not hard on as a spread sheet. You have to just plug in the numbers. But you’ve got the value. But then there are ancillary things, like the availability of resources. So what’s this going to take away from the rest of your operations? You’ve got the likelihood overall, which is your best guess. Now you've done some probabilities, but this guy says - 'You know, in a reality, this probably isn’t going to happen.' Do you have any businesses like that? I’ve got one. I’ve got one and since coming here, I’ve decided I cut it off. But it's like, 'Hey, what's the real probability of that happening? Am I really going to peel off my precious time for that? I thought it was cool when I said yes, but now I have to go back and say no.' And then there’s the last thing, which is there's ancillary benefits, and each one of
these gets a rating, and then each one has a waiting. So for some people, the value, right; the money out of it, may be the most important thing, and you'll rate it a nine out of ten. And those ratings - it’s actually a one out of four; you get one out of four. So that money might be a four, and then the ancillary benefits might be a three, and resource development; you don’t care because you believe in infinite resources. So… (audio missing) …multiply, and you come up with some numbers, and that allows you to take kind of an objective look at some subjective criteria, and say, 'Well, I can do one. Maybe one more.' And those of you who are good for 18 or so hours a day; maybe you can do two more. But you start to rate it and you make choices. So about this 500 things. So, Yogi Bear says, 'When you come to a fork in the road, take it.' (Laughter) What are the three opportunities? Pick no more than three. Those of you who have two, you get to pick one. You can't work - how many businesses can you really work on. Who works really well on four different businesses? I mean really well; top performing? Who's working top performing on all three different businesses? Good. That's an amazing person. Two. We got a few here. So we got two top performers out of a room of 750 people, and I'd say that's probably about right. Now, just for a show of hands, who are working really well on two businesses? Really top performing on both businesses? That's my concern. So, I’m really generous, and I say top three. You might want to pick top two; you just might want to pick the top one. Okay, this is going to - I'm going to finish this quickly. This will hurt a lot of people; you'll be offended. I'm going to say it anyway. Work on your strengths. Hire people to handle your weaknesses. Do not work on them yourselves. Either hire people, or outsource them, or job them out, or flat out don’t do them. But work on your strengths; that's where your leverage is. Pitchers practice pitching; they don’t work on their batting. Quarterback - we have some hands - quarterbacks do not practice their kicking. Why not? There's no point in it. Torpedo your weaknesses; get rid of them, get them out of your businesses. Next. And then there's the thing called the trim-tab, and this is very important; and then we can wrap up. Buckminster Fuller had this concept. And Bucky said you have this long - I know there's a Buckminster Fuller devotee in here who will say this more eloquently, but I'll go ahead. You've got this long ship; you've got the Queen Mary; it's a big long thing. And way down at the other end, you've got the rudder. Now, the rudder's the size - I don't know - it's the size of a small house, on the Queen Mary. So it's not that small. It's not like the
rudder on your little sailboat. But you've got this rudder, and the rudder needs to turn the boat, right? The rudder turns this way, and the boat goes the other way. Well, you've got his big house sitting in the water, and it's moving along at 35 knots. How easy is that to turn? It's not very easy to turn. So that's the part of your business that's hard to turn, right? You've got this sales engine, and it's working sub-optimally, and you've got this marketing engine, and it really needs help, but hey; these things are going full steam ahead, and it's hard to really interrupt these things when they're contributing to your fixed expenses. You don’t want to mess things up. Right, so the way it works is they put a trim-tab in the rudder, and what the trim-tab is, is it's a little thing; it's only about the size of a door. That’s small on the Queen Mary. And that thing can open without a lot of pressure on it. And the water rushes around the other side, pushes the rudder the other way, and voila; the boat turns. So Buckminster Fuller said that he was a trim-tab. That he was one little guy who set out to change the world, and the way he did that was by looking for the places where he could act as a trim-tab; being a little guy turning this way or that; turning the rudder this way and that, turning the boat this way and that. And that's what you look for in your businesses. So you take that list of five… (audio missing) …the winner went down to the top three of the top three. And then for each one, you just make sure, 'Is this for a top three project? Well, yes it is. Now, why am I doing this thing anyway?' So define it again; go back to the strategy within the strategy, which is what are the optimal results for this action item? And then, how much better are those than the current results? So you need a weighting factor again, but you want to say 'Hey, that's really better, and I'm going to do this one,' Or, 'It's not really better and I'm going to look for the next item. And then, is there another way to get leverage? Remember, we're looking for low input and high output. So you always want to compare whatever it is that you've got to whatever other way you can do it, and just keep sorting. Hey, you're going to have 500 different ways to do it. you've got 93 different referral systems. You can sort through and find the one that's going to be really killer for your business. So, what will happen if you don’t do it? That's the last question. What will happen if you don’t do it is good. It’s another way to sort it out. If you don't take this action, and it's really not going to harm you, you probably don't need to take it. And then, if all these things, all these questions you've just asked about that item don't compel you, go to the next item,
and keep going. Peter Block, who's a pretty interesting writer, wrote a book. It's a good book. I like the title the most. And the title is 'The Answer to How is Yes.' And I think that's a really powerful question. Which is once you've decided what your strategy is and you've figured out what your major actions are, now how do you execute them? The answer is that there's a way. Once you're down to the short strokes, you know that there's a way. And there's no right answer. The only right answer is what works. So, I don't know; who was it that said this? Someone - there was someone talking yesterday who said that their business was shooting along just fine, and they weren’t doing anything. So he said - I don't remember who it was - who said that, raise your hand? It was you. He's not doing anything. He's sitting here - he is in hog heaven. Because no matter what he does, it could probably have a positive impact. So some of you who don't know, once you sort out your objectives, once you plot the major backbone behind your strategy; if you don't know what to do from that 500 list and everything's passing the tests, just pick it and do it. And then just run with it. So, can you count the black dots? Focus. The answer is strategic focus. Thank you. (Applause) Jay. Jay: That was good. Give me the biggest, besides strategic focus, and I've got a piece of gum in my mouth - apologies. Paul: Okay. Jay: What's the biggest thing - Paul wanted to do more but he didn't what's the biggest thing you had to take out that you wish you put back, that only takes a minute to explain. Paul: Darn. Take Fridays off. (Laughter) Jay: Serious? Paul: Yeah. Jay: Tell me why. Paul: This is counter-intuitive right, because where did we start? We started where people don't have enough time. So I don't know; I’m with Gerber on this one. Which is that you need time to figure out what the heck you're doing. And if you spend all your time executing, you don’t take a lot of time to do big picture. That's one of the reasons for a conference like this. And people come here, in part, so that they can actually get a high level view of their business.
Jay: Great point. But you know what I recommend, and I didn't really say it. I recommend they try to stay over a day or two, and de-brief themselves and their team on what they got; because on Monday morning, they go right back to status quo, don't they?
Paul: Well, that would work beautifully. Jay: It would. Paul: We talked about that a little bit. Jay: We should almost - I mean, this is funny. I used to have a lot of clients that had scheduled like, weekly or bi-weekly calls with me, and if I gave them a directive and instruction; and this week's call, they haven't done it, I'd say, 'Fine, you've allocated the hour - you've paid me, but guess what you're going to use it for?' And I said, 'Next week, hopefully, i won't be redundant, but until it's done, I’m not going to give you the next step; why?' But that’s good. Go ahead. Paul: Every CEO I coach - I’m easy; I say the same thing. 'Take Friday off.' And they'll go, 'I can't do that, I have too much to do. I'm working 12 hours a day as it is.' So I - they're paying me a lot of money to tell them what to do, so eventually they say, 'Okay, well I 'll try it.' And it's not like, take Friday off; go to the golf course and the movies. You can do that, but it's take Friday off, sit at home in the kitchen, drink a lot of coffee and think about your business. Jay: Yeah. Paul: They do that, and all of a sudden - so what happens is the next week, they have ideas. Jay: Yes. Paul: And they have fixed problems, they have had conversations with people they've been meaning to have. What they have is clarity. You don’t get clarity with your head down. Jay: No, you’re right. There's - Mark Victor Hansen knows the person who has the original reference notes from Think and Grow Rich; and I asked him one time, 'What’s the biggest insight that wasn't in the book?' And he said it's that almost every really significant icon that was interviewed, would work like hell and they'd take time off. They'd work three months on and take a month off, or work three weeks on and a month off; and he said - and they did nothing. Joe Carbol wrote a really seminal book; a little
book on advertising called, 'Tha Lazy Way to Rich,' and he said all his great ideas came when he was swimming, or bicycling, or shopping; and he said, 'What does that have in common? Nothing?' But he said your brain was able to do what it did well. My big - it's not a regret but when I met my wife, before we had all our wonderful little boys, I would sleep in, I would sit on the floor and watch every Perry Mason for two hours before I started my day, and she thought I was watching Perry Mason. I really wasn't. And I would just walk around, or I'd go out for four hours, shopping, and let people try to sell me; observing and thinking. You really mean - you got to grunt - we try to squeeze all those incredible, creative ideas, and your mind is so much more powerful; just let it work the way it was designed, and that's - let it be free for a while, and then just make sure of one other thing. When it flows, have something handy everywhere; pen, pad, backup tapes... Paul: Digital recorder. Jay: And have back ups, because - and know how to do it, because once it flows; you think you’ll remember it. You won’t. And if you don’t - this is a very, very key phrase. If you don't make it a prisoner forever, on some form; preferably written as well as audio, you will regret it because your brain will give you a million and a hundred million ideas, but if you decide to dis-acknowledge them, or to discount them or be abstract and generic and think the outcome - 'I'll put it in the morning, I don't want to get up, or it's too simple; I'll remember it; it's so easy.' It won't, so... Paul: [Unclear 4:08] of course, if you don’t use the ideas, your brain will stop giving them to you. Jay: Exactly right. Touché. Alright, thank you so much. Paul: Thank you Jay. Jay: Appreciate it. (Applause) Are you going to be here for the power panel? Okay. Rick, work out with Michelle - dinner. We're choosing dinner for you. At lunch, did you guys all do what you said you would do, and people shared their ideas? Was it powerful? Was it extraordinary? And imagine doing that over and over again, and we're going to try to give you at the end of tomorrow; a process to do that yourself. A couple of points. Mac wanted me to do something, and I want to make a point. He was concerned that maybe you mis-interpreted what either Fran or Mark Victor Hansen, or Brian said, and I want to amend it, and I want to correct it. And I want to really address it and attack it.
What they said - not negatively, but they believe in general that it was no longer the old 80/20 rule. That it was now the 95/5 rule. The 5% of the people were doing 95% of the real achievements, and they were lamenting about that and saying most people don't do anything. And I would agree. But, you don't think of yourself as the 5% of people in this room are going to do well, and 95 aren't. You guys are already - you've discriminated by being one of - 650 in the room, but we offered it to a million people.
So first of all, what is 650 compared to a million? It's far lower than 5% isn’t it. Number one. Number two; ten people left. I lost $50,000, and one of them was the young man who wanted me to sell him - staying here for the same price you would when I offered him terms for life, and he wouldn't take that; because I thought he basically had no conviction and morality. But you're already past another one. So I can’t make you implement what you've learned, but I could tell you; unless you wrestle yourself to the ground and don’t let yourself, your subconscious, your mind, your mind-set - if I do what I hope I'll do by this time Monday night, you can't possibly be the same person you were. You can't possibly. It is impossible for you not to achieve far more greatness. How high and at what level? Sort of depends on a lot of things. I used to operate at a higher level. I'm more laid back now. If I find 10, 20 of you that want to work with me or me and Chet, I'm all for that. But if not, I have a lifestyle; I service it; I have all kinds of wonderful friends, and I drink of their intellect, and I have a good time. You've got to figure optimally what you want, and that ad that Joe Carbol wrote; he said, 'Man, I make about $3 million a year, and I’m pretty darn happy.' This was in '78, and I knew him; he was a friend. He had two great houses, he worked about 3 hours, two days a week. He swam the rest of the time, he bicycled, he was a big man. He smoked great cigars and sat on his veranda, which the back was - both - two different houses, was the Pacific Ocean; and he was happy, but he said, 'I've [unclear 7:16]; they were more aggressive, they were younger, they were more focused, they had a bigger - something that they wanted to do,' but that’s not a problem. The only problem is realizing that after you have your first break through and you make 100 grand or 500,000 or 20% increase, don’t stop there. Listen to what Chet said, listen to what Paul said, listen to the power panel we're going to do. Develop a system that keeps sustaining, adding, building, layering, layering, layering. Next question, or next point. How many people in this room are re-attendees? How many in this room are re-
attendees who got at least one breakthrough that was meaningful? Go to the mikes real quick. Real quick. Because Mac feels like you have a moral obligation; because you got to come back at a better deal; to contribute at a higher level, so I want to deputize every one of you. That you have a purpose and you a higher causal purpose for the rest of the endeavour; to help everyone in the room get more out of it. To help everyone in the room see what's so unique and special about this. Help everyone in the room open up and contribute better. Quickly, tell your name, tell the business you're in, tell the big break - tell what the difference meant to your business, and tell them the biggest thing you got form it, and the one thing you'd tell them they should focus on right now to get from what's already happened and what you know will happen in the next day and a half. Go for it. Man 1: Tom St. Lois, marketing strategist from Toronto. I’ve been reading your stuff and coming to these things for a long time, but the first break through that meant a lot to me was that as a consultant, I thought that if somebody called me and said they wanted to meet, I had to go there and meet with them; spend a lot of time, empathize like hell, then write a proposal and follow-up. So I did that, and it took a lot of time, and it was crazy. And at a certain point I was burning out on following-up, writing proposals and all that sort of thing, and then one day I thought, 'Well, this risk reversal thing is kind of cool.' So I wrote a script. And the next time somebody called me, I said to them, 'We’ve got this process; it's called a marketing audit, whatever.' And I read the script pretty well. I said, 'If you pay us in advance, we guarantee you a whole bunch of stuff.' So they said, 'Come on out,' and I went to the meeting, and when I walked in the door, the receptionist said, 'Tom?' I said, 'Yeah.' She said, 'Here,' and she handed me the cheque. And I went and sat down; and before the meeting I already had a cheque. In that case it happened to be $500, and that’s a small amount now, relatively speaking, but it was a... Jay: How long have you been doing my stuff? How many years? Man 1: It's about 15 years. Jay: That's a long time. Man 1: So the fact that I could walk into an appointment; they'd hand me $500, and they were already a client before I met them, and now, instead of a proposal I could give them a report, and it would hook them into wanting more services; that was amazing to me, and the biggest implication was you can make it up. You can make up the rules, and if you
articulate them clearly, with confidence, congruently, people will go, 'Oh, okay.' Because they don't have an agenda to refuse your rules. If you have a clear agenda, they'll be swept into your agenda. Jay: Good, that’s good. And is that what you want them to make sure they get out of this? Man 1: That's a great thing to get out of this. Jay: Okay, thanks. Okay. Man 2: Alec Thomas, with Performance Marketing Group. We do internet marketing for real estate agents and others. What I got out of this this time around, or what really hit home again, was the referral. Use referrals to create new clients. Jay: Did you get anything out of the previous one that impacted your business? Man 2: Yes, absolutely. Jay: What's the one thing that you did most, and what's the impact it had? Man2: Previously it was strategic alliances... Jay: How many did you set up? Man 2: The impact was - set up a couple of them, and back then it made me switch businesses, and now I’m doing a lot better. Jay: In the business you're in? Are you still in - strategic...? Man 2: Yes. Jay: Strategic alliances? Man 2: No, I need to set up new ones now. That's... Jay: See, that's why people come back, and that's why I bring more experts than just my basic marketing, because the marketing works if you work it, but the guy's going to teach you strategy and the difference between strategy and tactics. We're going to get you to work at a higher level, aren’t they? Man 2: Yes, they are. One other thing I'd like to add, about referrals. It's a two-step thing. One of them was where you give - compensate people for referrals. You can do it in two steps. I give one type of compensation for just a referral in general, but if the referral signs up in seven days, I give a bigger one. And so they go out and resell for me. Might want to try that.
Jay: Good, thanks. Mike. Man 2: Mike Fry Francis, Fortune Cookie... Jay: How many you been to? Man 3: [Unclear 11:34], this is my 10th. Jay: Is it really? Man 3: It is, I’ve been to - six major and then the [unclear 11:39], so this is the 10th one. Jay: That's amazing; 10. Okay. Man 3: I'm into pain. (Laughter) Jay: They call him a marketing masochist. Man 3: But my background; I always preface it, because my background was totally entertainment my whole life, and then I got into marketing with the business, and I had to literally learn marketing from zero, from an entertainer’s point of view, with no college, no business knowledge, so I've always big on goal-setting and set a lot of goals. So this is my - everything I’ve ever done in my business is 99% Jay. But my biggest insight was really the amount of incredible contacts I've made so far. I'd had two really incredible, kind of unbelievable things that happened; people I met here, that was really neat, and - so anyhow, bottom line is, the contacts here my number one thing I would say is, no matter what problem you have, there is somebody in this room that can absolutely, positively solve it. So look for them, because they're here. There's probably four or five people. Jay: Thank you. Only because I got to go fast, but make it real rich. Man 4: Gary Smith, Bel-Air Express; 24 hour air express company, competing with Federal Express, on a very small level. My biggest break through right now is that the little things in the business yield huge opportunities. Jay: Good, goo. Man 4: I do not need another new customer. And I can just work my 600 client database. That's the biggest breakthrough. Jay: Thanks. Woman 1: Eileen Silver, I’m a metabolic weight control specialist. I came in August, and I remember saying this to you Jay, that my breakthrough then was that I was stepping over dollars to get to pennies. My
breakthrough now is I’m stepping over dollars to get to pennies. After I left in August, I went back and I feverishly started writing scripts and doing all kinds of big projects, and I never implemented a referral system, which could have instantly made me hundreds of thousands. Jay: That's right. You've got to be pragmatic. I'm an opportunist; an ethical one, and a pragmatist. Do the easiest, fastest, highest or easiest yielding things first. Then you'll have the cash flow to fund the more difficult and the more complex, so you can get other people to do it for you. Good work. Woman 1: You could hire some help. Jay: Great insight. Thanks. Bob. Man 5: Hi, Bob Rossman. Horse-racing. My breakthrough was learning how many times you can go to your customer database. I used to market to clients and if they didn’t join up, I would market at half-price, and if they didn't take that, I would offer them a free service, and if they didn't take that I thought they were dead. And Jay told me that they still had value, so I went back after the seminar, to the people who hadn't taken the free offer over the last couple of years, and I made them the first offer again. Full price. And they took it. (Laughter) I was amazed. And so now, the basic rule is that you get half each time you market to them, and so we just keep marketing and marketing and marketing to them. Jay: Until it stops paying off? Man 5: No, actually until we lose only half the money. Jay: That's a great insight because you've got such residual. So what did you get now that you maybe saw differently? What - did you get something new so far that you didn't think about? Man 5: Yes, I’ve actually limited the amount of sales that they can have, and I've never taken referrals because I was concerned that it would allow a leak of information, and I'm going to set up a referral system and trial; letting people have information every day. Jay: Good, thanks. Thanks a lot. Man 6: Dan Bantly. I have the Pennsylvania Institute of Taxidermy. Jay: The Pennsylvania Institute of Taxidermy. Man 6: That's right. Like Mike, I think this is my 10th - 9th or 10th...
Jay: Did Michelle tell you what she bought me; my daughter? For Thanksgiving, she bought me a stuffed turkey. We were going to deliver it here but it's - I swear, a stuffed turkey. (Laughter) We should go out to my beach house; it's at my beach house. We should bring it out. It's a full turkey, stuffed. Have you done a lot of stuffed turkeys? Man 6: Probably not the same way you have, but... (laughter) Jay: That was a tight dig. Go ahead. Go ahead. Man 6: When I first - like I said, this is my 9th or 10th one of these I’ve been through. I think the biggest change is when I first started coming, my business was really in trouble; I thought my market was gone, I thought it was pretty - it was kind of the last chance, I guess. And through all these years of coming and…
Jay Abraham Mastermind Marketing 20 …learning these things, it gave me a change in mind-set. I know that right now, I see so much opportunity in everything, and for the past two years, my classes have all sold out. 2003 is almost all sold out, even before 2003 starts, so... Jay: Lesson? What's the lesson? Man 6: The lesson is if you stick with whatever you're doing and don't give up on it, there’s a way to make it succeed, but you just have to find a way. And be patient; sometimes it takes a little while. Jay: Good, great, thanks. Got to hurry you a little bit, please. I appreciate you, but go ahead. Man 7: David Shelling, I’m from Boston. I’m a technology marketing consultant, specializing in software marketing, and I came to a programme about 10 years ago, and the thing that impressed me - a lot of things impressed me, but one was that we can make the rules. And that allowed me to expand from what I was doing, and I’ve been sort of trying to preach Jay to anybody who'll listen, for the last ten years. More recently, one insight was trying to keep the value of what we deliver. Not let people degrade us and turn us into commodities, and using education to do that. A lot of the salespeople I work with, they're willing to discount very quickly. They're not willing to stand up for our value, our own worth, in order to service the customer. So we're giving in a lot, and being beaten down, and I think that's a problem that a lot of companies are having, and by educating the customers and showing them value; showing them the hidden assets, we can really help them.
Jay: That's great, thanks. Man 8: Hi, Dave Rego, Indianapolis. How you doing, Jay? Jay: Good. Say hi to my Mom when you get back. Man 8: I will. I’m in energy management, and I came to X-Factor in '95, and... Jay: That was a good program. Man 8: Yeah, it was great. And then what really flipped me out was when I got PEQ about a year ago. And I'm like - it was funny, because Paul just said, you know, you've got two/three hundred ideas, and that's kind of what I’ve been swimming with for literally almost a year, and this's just been great for focus. Jay: So what's the most important thing you're going to do now; first? Man 8: Referrals. Jay: Okay, good. Man 8: Sales 101. Jay: That's good. I mean, anybody that doesn’t get that - the reason I had everybody do it for an hour and a half was that's like - you've just got - if you take one or two or three or as many of them as possible, you got a guaranteed increase in your business that's geometric; if you just apply and systematically sustain it. Man 9: Hi, I'm Alan Rubenstein, Generation Investors. We put together short term bridge loans for our investors that are in 12% safely. I was here 1996 with you, Jay. My previous business; dental supplies. And we were doing $12 million at the time; Jay was kind enough to directly suggest I do specialized seminars, educational seminars for the doctors and dentists in our market place. They were very successful. we got hundreds of new customers. I sold the business three years ago; we were doing $25 million, and we got paid on that. So... (Applause) Jay: That’s pretty impressive. Man 9: Yeah, we appreciate that. Jay: But Alan, come back, come back, come back. What's the big idea, though? Give us an idea. Don't walk away. You took something, you made yourself tens of millions of dollars; you left us like - we're panting.
(Laughter) We're sitting here, it's like Saturday's serial. Who's the persona that was always on the railroad tracks until the next week? Man 9: No, I’m just going to say that I’m in a new business now; I’m starting from zero, and Tom St Lois gave me another great idea, so thank you Tom; which was... Jay: But what would you give these people? Man 9: Well, every idea's a good ideas, which he said, 'Get interviewed by a radio guy. Now you're an expert.' Both of them are the same line. You want to be the expert in your marketplace, you want to give back to your customers. You get new customers and your get credibility with your old customers. Jay: Good. And don't forget, write a book. Or have somebody write one for you , even if it's ghost-written. Man 10: Dale Maxwell, Dalemaxwell.com and a bunch of other websites from there. The most important thing that I’ve written down is to repackage and repackage and repackage the information. Jay: Could you be a little clearer? Man 10: Well, I was attempting to be clear with the repackaging of the repackaging... Jay: No, I mean, a joke. I get it, I get it. I get it. Man 10: So, I have books and the books need to be tapes and the tapes need to be videos and the videos need to be CD's, and... Jay: If you think about this, and this is not to take any of the thunder away from most speaker/consultants, but all they really do is they've got a message. They can give it as a key note for two hours. They can stretch it as a day-long on sight, for $5,000. They can bring it down for a half an hour, or they can do it on tape for $2.95, and they sell a thousand of those and they get four or five people that will engage them to speak, and they inherently do it, but basically figure every spectrum on the arc, and address it. More, less, etcetera. And don’t be afraid to give certain things away. We do. Or charge a fair price, and you can do a lot of things that- we have lead products like my money-making secrets that some of you bought for $400; is a lead for a five to $25,000 seminar. Pretty good lead. But everything is - that's good, thanks a lot.
Man 10: You're welcome - and I have been giving away. I’ve given cards to people to download one of my books for free. Come see me. (Laughs) Jay: It works. Okay. Good. Man 11: Yes, my name is Pat Solis from Houston. Jay, I wanted to - I’ve been coming - this is my fourth seminar, and I have to say it's been the best one of the four, although the third one that I came to was the work college, which was quite brutal, but what I wanted to share with the group is, that I’ve used many of the principles that Jay's talked; since '94 I’ve doubled my business through the principles. But when I came - originally I came here with the idea that I was going to refresh my skills and teaching that Jay teaches, but the idea that I shared with the group on the first day; the one where I joint ventured with the law firm. I've had six people come up and tell me that really rung their bell. One of whom said that it was worth the trip for her to figure out how to solve her problem with a very similar situation. Jay: That's good. Man 11: But I just wanted to tell you Jay; it's been great and the program that I did at the work college; I put it on back burner for seven years. The weight loss business; and there have been four people at the meeting who want me to bring it back, so... Jay: That's good. Okay. Please hurry through; only because I've got to get John on. Go ahead. Man 12: Sure. Dan Holbrook. It’s mortgage, real estate and broadcasting, I guess. I've been going to your events for 10 years, actually, and this event was good because it helped remind me what I knew but didn’t implement for eight years, and I was feeling kind of bad about that. But one of the things that I was reminded about was the strategy of preeminence, and I’ve done that actually; very, very well. I wanted to change the way real estate services were delivered, so I started broadcasting radio one day a week, and now it's 3 hours a day, five days a week, 27,000 people in an hour delivering in the San Diego market. It's made a significant, dramatic impact on people’s lives, and it - trying to figure out, 'Okay, now how do I bring it back in dollars and cents?' And I think the connectivity of bringing all these pieces together; it's not just one strategy. It's a whole series of them, and there’s a financial, spiritual and emotional benefit that’s driven from that. Jay: Thanks.
Man 13: Hi Jay. Martin Wales, Customercatcher.com. We grow your business by bringing you clients until you beg us to stop. (Laughter) When I first met Jay, I was working at a company, and since that time, I quadrupled my income, but what I’m up here to say is, we talk about public relations. One of the first things you taught me was help people get what they want to get what you want. And I use that in public relations, and now I get about $1 million a year in free public relations, which is really my advertising revenue. And sort of the corollary of that is, I make as much money marketing my business as I do actually selling my consulting services, so profit based marketing; where you actually make as much money doing the marketing as a speaker selling information products, as you do selling your consulting. Jay: That's great. I like that. Great. Thanks. Spar? Spar: Jay’s the first person who thinks it's normal to sell a video for $500, which he did to me seven years ago, and I thought, $19.95 was a lot to spend prior to that. (laughter) And this is my third event, it took me seven years to think that spending more than probably $1000 on a seminar was high, and this has paid off infinite amounts; hundreds of thousands of dollars. The biggest thing is, all of us are smarter than any one of us, and the synergy that happens in a room like this, meeting all the people, and the ideas that they have brought me, not only in this seminar but other seminars; have been really good. The biggest one is also the simplest one. I tend to get a little distracted, and so for Mark Victor Hansen; every time I reach for my credit card, which seems to happen a lot; I put this card, which he was suggesting; just write your three top goals on a card. It was so simple, and for somebody that's as distractible as me; every time I paid for something now I’m going to look at this card with my goals on it. Jay: That's good. Thanks Spar. How many for you? Four, five, six, seven? Tell me; I don’t remember. Woman 2: This is seven. Jay: Wow. Woman 2: And I should be a billionaire by now, right Jay? When I came to the first one in 1995, Jay changed my life, because he said, 'Revere your business.' And that was kind of a shocker to me, because I came out of hospital administration, dealing with blood and guts, and I thought selling stuff was trivial. And Jay said revere your business. And it just changed my entire attitude about what I was doing. And it's never really been so much about money; I am happier than I’ve ever been before. I have just a ball with the business; but I decided at this seminar that I’d really like to get to
about $5 million - I’m a little over a million now; and Chet Holmes taught us how, so thank you. Jay: That’s great. Alright. David. Man 15: Hi Jay. Jay: How are you? Man 15: Wonderful, thank you. My name is David Carrington, I'm president of RacingUSA.com, America’s online headquarters for Nascar merchandise. This is my - about 8th time, I guess. Jay: When he travelled to the UK - David's a trooper; he's a cool man. Man 15: Well, it was interesting to go to the UK, because we were investigating opening a European office, and what better way to decide if there's a market for you than to go meet with 650 people in Europe, and after that event we decided that wasn’t the right decision for us. I'm going to say one thing, and I'll try to be real brief. In the last session I went to four years ago, I just recovered from cancer, and was trying to decide what I wanted to do with the business; and Muriel got up, made one statement out of three days and said, 'It took me six years to do my first thousand dollar day in my retail store, and I did my first thousand dollar day on the internet, in six weeks.' I turned to my son, said, 'We're going to open an internet site.' (Laughter) We had four stores at the time. The seminar I think was in June; it was in that summer. By August we opened our site. We had our first sale on September the 11th, 1998. By Christmas, our internet was our largest store. By June it was larger than stores one and two. By Christmas it was larger than all four stores. By the next January, we started leasing out our stores. (Laughter) We were in the computer business; we sold the computer business, and now we're primarily and internet retailer. The one thing I'd like to give to this group is the most powerful concept we got out of all this is educate your customers why it's in their best interests to do business with you, and not your competition. Several years ago - or in the computer business, we found ourselves competing on the nebulous things of quality, service and price. We believed we were quality and service; we were being competed on with price. And so we felt like we had to change the rules. We either had to compete on price, or change the level of competition so that our competitors had to compete with us. And so what we developed was a 16 step detailed selling system that worked with the prospect in order to set the agenda; the decision criteria,
the goals and objectives; so then when the competitors came in, they would have to compete on our terms instead of us competing on their terms. And that made a tremendous difference in our business, and as I said last October, we sold it; so now we're primarily an internet-based business. Jay: Thanks David. Okay. (Applause) Audience Member: What's the website? Man 15: RacingUSA.com Jay: Okay. I didn't mean to divert, but Mac felt that you should know; you shouldn't feel that people came back because they weren't successful. A lot of people go back and they'll make 100 grand or they'll make a half a million, or they'll get a 30% and they'll think that's all there is, because they don't understand process training. The ones that get it, they come back over and over again. I'm not trying to sell you, because I don't really want to do that many. This is the first one of these I've done in seven years. Just get a lot out of it- that stated, you're in for a treat. John [unclear 7:06]. Fabulous man; brilliant man. Remarkable man, interesting man. Did a billion dollars in real estate transactions and got bored with it. Spent three or four million dollars of his own money studying all kinds of elements that distinguish superior performers; sort of a modern day 'Think and grow rich.' Was raised in Chicago, foster homes - I got his stuff, I don't need to look at this. Basically, he decided he wanted to study and understand every key element that distinguished super achievers form everyone else, at a very, very granular level; and he shook it all up and he became one of the pre-eminent effectiveness coaches in the field. He handles a lot of Silicon Valley CEO's, he handles CEO's around the country. Cool man; he's got some really powerful distinctions. He could go for probably six, seven days; and we're actually going to do a six day or five day program with him, but he's tried to distil down the core essence of what he has learned about number one; strategy. Number two; effectiveness. Number three; ultra-productivity, and really, having control of your business so it doesn't control you; and he was named the speaker of the year as far as guest lecturers at Stanford. He's a really cool guy; he’s a good friend of ours, and he's got very, very original work that you should take a lot of notes from. John, come on up. Sorry we got a little late start. (Applause, and music plays) John: Albert; nice job. Love the tunes. Alright everybody stand up. Come on, get on up. Stand up, stretch it out, this is like - I know - you guys are amazing. Amazing. I mean, I went through MBA school at Duke. I got three
hours a sleep a night for a year; blood pressure shot up to like - the doctor came to my house; he was so worried about the test results. He said, 'Buddy, you can't keep doing this.' So this pace is even worse. (Laughter) It's unbelievable. But this is a preoccupation with providing value. Up top, come on. Reach for the sky. Like that. Give the person next to you a high five; double; boom. (Audience does) Give the person across from you a boom. Alright. Now sit your bones down. Getting rowdy, out of control. Out of control. Story of my life. Hey, it’s the holiday season; has anybody noticed? (Laughter) Well into December now. And Christmas lights out and about, kind of cool. And gosh, I don't know but it's a special time of year, and here we are sort of cooped up in here, and we're like focused like a laser on [unclear 2:32]. Things like that. That's okay. Especially if we believe what Arm and Hammer said, which is what I think is some of the most profound discussion I’ve ever heard, and when he said that the highest calling a man can have is to become a philanthropist. How cool would that be; to be like Santa Claus for your family, and - you know. But a lot of what you're learning here genuinely can - and it has; made that possible for a whole lot of people at various levels. So because it's the holiday season, I’m going to start with a prayer. It's a no-denominational prayer. So for those of you who think about the sky, think about the sky. For those of - I completely respect and recognize that there are; in a group this large; various people with various views. But in light of the season - I just thought, 'Come on guys, it's Sunday; yesterday was Saturday, the Jewish Sabbath, and so we're going to kick it off with a little prayer, okay? Here we go. This is called the Unity Prayer; and a very cool guy gave this to me. "The light of God surrounds us, the love of God enfolds us. The power of God protects us. The presence of God watches over us. Wherever we are, God is, and all is well." Okay, so thanks for letting me get that out of my - it's not like I’m like a freak or anything, in this area. (Laughter) Not that that's bad, but it sort of settles me down a little bit. So, I want to ask a few things before we get cooking here. I'd like you to stand up; I'm going to do a quick survey. I always like doing market surveys; I need to understand who I’m talking with so I can try to make comments relevant. How many of you work for organizations that have less than 10 people in them? Please stand. Don't be bashful; I really need to know. These lights are like - okay, good. Please sit down. That's like what do you think? 65, 70%? Very good. How many work for organizations with less than 50? Okay, good chunk. Good chunk. How many above 50?
Alright, very good. About, maybe 12%; who knows? And the last group looked like it was about 30%, 25%. Very good. First thing i want you to do. Think about this. I want you to make a list of actions that you're going to take as a result of what you hear tonight, with me, and over the course of this event. I'm moving into execution. I'm a transition point, along with Paul. You know Jay - the amount of time that Rick Duress and Jay and Carl Turner, talk about superstars, whoa - Terry and Michelle, and Debbie and Tanya - I’m going to leave them all out. Let me just say one quick one on this. When you see these people who are like - walking dead around here, go up to them and give them a high five, okay? Give them a high five or something, because you cannot imagine - I know some of you can't - how much work it takes to put something like this on. It’s remarkable, and they have done a phenomenal job. (Applause) Don't you think? Yeah. Yeah. Yeah. Yeah. That's for you; all you guys. Rick, tell those ladies out there, will you? Tell those ladies they got to standing O. Guys in the back, sound. Visual maniacs, etc.; please tell them all. (Laughter) Take - keep a separate list; separate notepad, whatever it is, of the actions you will take based on the stuff that you hear here. The stuff that's most relevant to you. The second thing I want you to do is set up an appointment with yourself. Treat it as if - this is an appointment with the most important person in your life. And you should set up at least one, but all I’m asking for is one, because most often it's like taking the first step. I was down in the gym earlier today during lunch, and there was a guy down there, and he didn't look real happy. He was sitting there on the bench, and he was like - I could just tell he had that look on his face. 'Why am I here?' I said, 'How you doing, bud? Congratulations for being here today.' And he said, 'Yeah. Okay.' (Laughter) I said, 'I have the same trouble sometimes.' It's like one arm is pulling on the car, and the wheel going - get - 'You got to take this exit, this exit; this is the exit ramp to the gym. You got to go.' And the other one's going, 'No, I want to go home, and sit on the couch.' Or whatever. So I get into this conflict and - anyway, this guy was having the same kind of deal going on and - I just said, 'Think about this. I play a little game with myself and I say, "If I just show up for five minutes, if I just show up for five minutes, and I leave." And I leave. I'm going to pat myself on the back. If I just put the feet on the ground, in the gym, or on the bike, or whatever it is. Five minutes, if I’m on the bike five minutes, I'm like highfiving in the mirror, okay?' (laughter) And I just - and then I say, 'And the
other thing I try to do is I focus on not the process, -' (Groans) or whatever it is (audio missing) …how you feel when you get out of the gym. It’s sort of - the glow; whatever; just focus on that feeling. 'I’m going to feel this - it's coming any second. It's going to be there any second.' (Laughter) So those two things - and the guy just said - he got up off the bench and he shook my hand, and he said, 'Are you a doctor?' (laughter) And I said, 'No. Just consider me an angel in your life.' (Laughter) So I just walked away, and he was like - (Laughter) He wasn’t sure, because I didn't shake his hand or anything, because then he'd know I was human, but anyway. So you might want to think about the same kind of thing, guys. You know, in terms of getting started. A lot of the tricks - the trick is to execute. And whether we know it or not, whether we like it or not, we're caught up in a game of execution. The winners are going to be the ones who execute. John Chambers from Cisco Systems, to this day, says execution is everything. Cisco - do you know; what a story, right? First company in the history of the world to reach a market cap of a hundred billion dollars, and they did it in 12 years, only to be worth than G.E and Microsoft two years later; with a market cap of over 500 billion. At the ripe old age of 14. Well, needless to say, they’ve gone through a few transitions, as has everyone else. But I remind us - I just want to remind you of one thing. One thing we can learn from September 11th, is how fragile this whole deal is. And I’m not going to be a downer here, but I just wanted to remind you that we're going to be like unbelievably lucky; phenomenally lucky, if we don’t have another one of those or potentially worse, interruptions. Whatever your political beliefs are, but they - based on what I'm reading, and what I know; boy, the next few years look like it's going to be something else. So what I’m saying is, if there was ever a time to sort of button up, lace them up, leave them up, lace them up, tight - poof; and get ready; I think this is the time. I think this is the time to turn the corner; to do things a different way. To focus on relationships in a different way; whether it's the Dream 100 concept of Chet's, which is a home run waiting to happen, or what Jay said today about transforming clients into friends. Whatever it is, earning trust in a different way; separating yourself from the competition, cultivating a great core story, a USP, mission statement; whatever it is. I think this is the time you got to do it. But the other thing we have got to do, and the single most important thing we have to do is figure out a way - a plan to execute on all of this. So the second thing - as I mentioned; set up an appointment with yourself. It should be at least a three hour block of time, for when you go home; to basically go back
through your notes, and if you choose to, the hand out materials; which are to say the least, voluminous. (Laughter). Okay? I mean, come on? I mean, the planes. I'm concerned about the LAX plane. (Laughter) You got to be kidding me. Jay? But it's phenomenal stuff. So - by the way, anything I'm going to talk about today is contained in the manual that you got today, and it's all explained in a lot better way than I could possibly ever do it up here. With my stomach churning, and my voice going crazy and - this is a nerve-wracking experience; let me tell you something; being up here in front of so many people. This is - alright, so I ;m not going to focus on that again. So I got to get off that. (Laughter)Shouldn't have done that. Shouldn't have done that. So, everything I 'm going to talk about today is contained in a white paper, in that three ring binder. Get it. It makes sense. It's like a 40 page deal, and it's entitled, 'How to Create the Ultimate Business Leverage,' and contains a lot of very specific information as to what we're going to talk about. Alright, the third thing I want you to do, and this is the last thing I'm going to request you to do today, is team up with someone on an on-going basis, to follow this up. There were some studies at MIT and the University of Michigan, School of Psychology, that - Educational Psychology - that had to do with retention. Co-opted retention, meaning retention that was made better because it was shared. Because there was accountability created, because there was a sense of team work created - here’s how you do it. What I would do is I would find at least one other person here - it doesn’t matter where they live or where you live, because you can do this by phone. And you set up a regular schedule, on the same day every week, and you just spend 45 minutes, 30 minutes; an hour. No more than that every week. And what you guys do, the first meeting is all about, 'Let's set up an agenda for what we're - how we're going to attack this material. What are we going to go through first? Let's talk about your business, let's talk about my business; let's figure out what's most important. Marry the two and come up with an agenda.' The agenda might have 30 sessions. Fifty sessions. Doesn't matter, whatever the number; but make that the first session. It might even take you two to get that down. Email it to one another, fax it; whatever you want to do, and get to work. Alright, and get to work, and take yourselves through it. And ask one another, 'How have you done? What have you done? How have you done it? With whom have you done it with? What's working? What's not working? What are your goals? You said you were going to do this last call, why aren't you there?'
And do not ever hang up the call without asking one questions. 'What's our next step?' I don't think you should ever leave a meeting - now I’m talking execution here, okay? I'm going to provide you guys with seven tools out of 71, in a program that Jay and I - he mentioned the program that we're going to do. It's called Strategic Execution; it's not a commercial for it, it's just a matter of fact. Seven out of 71 tools. But these tools have a lot to do with execution. And so Jay said - 'I really want - at this time in the program, I think they really would need something that has to do with how to overcome the deluge.' We're [unclear 7:20] with information, but starving for knowledge. And so I said, 'Fine, Jay, let me see what I can do.' And here I am. So - but go ahead and team up with someone and ask that question. And you should also remember to ask that questions whenever you’re making a presentation. Some people use the word pitch. It's still sort of gags me a little bit, but whatever. A meeting, a phone call, a staff meeting, a prospecting meeting, a brainstorming session, whatever it is. Ask yourself what's my next step? What's your next step? Get to clarity, move things along, create accountability and a reason to get back in touch with someone. So that's a discipline I learned in real estate from a master, who thank goodness, I got hooked up with him, and the rest is history. So, now what we're going to do today is talk about these seven quick things. One thing is the web of entanglement. This is the number - what I feel is - the number one problem that everybody in this room, pretty much, is faced with today. This is a major obstacle to progress, to success; and I'll try and talk about it, and I’m going to go briefly here, okay? And then we're going to get into what I call the executive survival kit. This is what you've got to have in order to survive, much less prosper. And these are the things, these are the tools that have, I believe, the most to do with execution, out of anything I have ever read, seen, what have you that I have seen in my lifetime and Jay mentioned that we have a research end of us - what we've been [unclear 00:10]; we've funded it and - but we've had over 25 researchers, many of whom were PhD candidates from Stanford and Cal; going through topical areas that have to do with two things: high achieving individuals and teams; anthropology, psychology, ed psych, sports medicine, comparative theology, philosophy, Asian studies, historical achievement patterns; whatever, and provide to me the best stuff that has the most practical impact for people today. We've been doing that for 10 years. It's over 10 years. So we have almost a gig, if you can believe this, of Word files, that are synthesized, organized - just by study; by topic; on what individuals and
people can do to improve their lives, hence the stuff I do in the coaching area; and what teams or organizations can do, whether they're two person organizations, or 20,000 person organizations. So what I’m going to give to you is based on that, essentially. Based on this research. And the bottom line is it works. So here's what we're going to do. Let's go to the next one. We know we live in crazy times. It's the age of uncertainty, according to the business media. A deficit sworn by 400 billion; yes, it does change quickly, and many businesses are struggling to stay alive, and if you think it's bad now, guys - I know, God bless - I hope we can do real well here, but I believe we're heading into the most volatile period; economic period in the history of our country, over the next 15 years. The seven economists that I follow don't necessarily share that, but the majority of them do, and that's why I think it's just - I’m imploring you to get more buttoned up about how you do things. The number of multi-millionaires in the Silicon Valley went up by ten-fold in the 1990's, and now it's come all the way back to 5% of them are intact. 95% lost it all. There are houses on the market, there were people who exercised their options, and then doubled down. Bought more stock, wrote it all the way down only to have Uncle Sam knock on their door and say, 'Where's my cash? And we only accept cash.' And they're selling their homes and moving into apartments, and these are very bright, educated people, and it's really something else. So, September 11th; corporate greed and institutional distrust; are forcing people to do some serious should searching about what really matters and where to go from here. And as I mentioned, how delicate and fragile is our economy. So there's a growing conflict between our personal and professional lives. And small businesses? Boy, we are so dependent on this pendulum effect that I - I call it the drift effect, and here's what generally happens. This is probably the biggest single organisational, strategic problem that small companies never seem to be able to get out of. And as a result, they never grow to the next level. And they go from sales to fulfilment. It's sort of like a boat, moving in the water. And the captain gets on the top of the boat and says, 'You see that island over there? That's where we're heading. Boy, it’s palm trees and coconuts, guys. And lots of suntan lotion. And brewskis for those interested.' (Laughter) Yahoo. Guy from Texas down here. Nah, I’m kidding. So he yells, 'Everybody over to the starboard side of the boat.' Everybody floats over. Everybody could be three people, okay? Whatever it is. And they're starting - 'We've got to get
deals, we got to get the pipeline filled; we've got to get going, come on you guys, we've got to generate some cash flow or we're in trouble here. What are we doing?' Bam. And all the focus is there. And then pretty so the pipeline gets full and somebody wakes up and goes, 'How are we going to make all this stuff happen? We may be in jeopardy of over promising and under delivering. This could be a problem,' Captain runs back up the stairs and goes, 'Everybody over to port side.' Fulfilment. (Makes noise) Everybody scampers over to the port side of the boat, and they start thinking about fulfilment. This continues to repeat itself; the syndrome; constantly. For years. And what happens is the boat moves like this is the water. (Makes noise) And it’s got a power source but it’s not exactly flowing super straight towards that beautiful island that everybody was envisioning in the beginning. So this is a problem. And it’s a major problem with organizations. So what do you do? One things is you - one recommendation is start thinking about three things. People, processes and technology. There's an enormous amount of leverage, as we have seen, with the email success stories and so forth, here. Wow. Carl and Jay will talk about that tomorrow; what they did for this event. I can't wait to hear that. That was such an amazing example of marketing by email, but - so now I talk about something called the web of entanglements, and it's like - I’m not talking about the internet here, guys. I'm talking about a spider web, and my wife hates spiders. If she - I have to - if there's a spider in the house - are there any other guys like this? 'Honey.' Does anybody - well, that's what I get all the - if we have a spider in the house, I have to get it. You too? Yeah. So I'm the hero, and she goes, 'Thank you.' Gives me that look; every time - and it's like, I'm getting sick of killing a living thing. I'm sorry, but it's starting to bug me a little bit. (Laughter) I don't know if I’m getting soft, being in Northern California too long, or what the deal is - I don't know what's going on, but it is starting to bug me a little bit, and I told her about that. Silly me. We're dealing with that issue. So - well we're talking. Exterminator - I don't know. So I don’t have to know about it. Do it when I'm not around - this is weird. I'm getting neurotic. So the web of entanglement is a very real thing. I think this is public enemy number one, and I think this is what we're all going through, and it's complete major issue, problem, conflict; between our home, our personal and our professional lives, and it is crazy. And it is based on five things. And the five things, in a nutshell, are - we got - I talk about harder, faster, longer. Where does that come from? In this country, most of us
have grown up in what we call a Judeo-Christian work ethic. I got the laser and everything - thanks Chet. So what we learned is, you got a problem? You got to work harder. You got an issue? Got to work faster. You got a competitor? You got to work longer. Harder, faster, longer. That's the answer to getting ahead in America. Well, that works for robots, but it doesn’t quite work as well for human beings, especially human beings where 78% of the active businesses are service businesses, with a tremendous reliance on knowledge. On synthesis. On information. Might have worked a little better in the machine world, but not now. So what we've sort of grown up with, is schools and so forth is a harder, faster, longer mentality, and I am saying that it's a death trap. The second problem is experience; accumulated experience. It creates a past based sort of feeling. Every transaction we've made after we get out of school or whatever; ever transaction - there's hundreds and thousands by the time you get to my age - carries with it responsibilities. You had to do a contract, you had to do emails, you had to do letters, you had to do presentations, meetings, meetings and meetings, and God knows what. But a lot of these - this is the curse of experience. The problem with experience is that it winds up being loaded up on our backs, and we start carrying it forward in life, and it really becomes a burden. Because we become past based in our focus, in our conscious minds. We become past based; that’s a problem. It's a scourge. So, the third problem is expectations. Everybody in America's got super high expectations. All you got to do is listen to the 1.3 million messages we absorb a year from the media, and if you're not driving a Mercedes or a BMW, or living in the right neighbourhood, and if you don't have 14 vacations a year, there's something wrong with you. God. And, to boot, if you're not in the 18-34 year bracket; which is where 90% of the media and advertising is focused on, boy, you’re really a loser. (Laughter) You know, because you're like, dead, already. Just might as well kick it now. That'll change, let me tell you something. The demographics of this country are changing so that'll change. Cha-ching, cha-ching; we’ll change that. So the next one is habits. We got big problems with our habits. Habit patterns. And habits are accumulated behavioural patterns that cannot be changed except one at a time. And the law of substitution has to rule here, and if it doesn’t you’re dead meat. In other words, the only way to break a habit is take one at a time. Substitute a favourable behaviour for that negative behaviour, and focus on short term benefits, for breaking the habit. Or for minimizing the habit, or whatever it is. So I say changing
the habit - we got a lot of bad habits when it comes to time management. When it comes to business practice; focusing. Relationships, phone mannerisms. Whatever. And it's hurting us; hurting our business. The fifth problem is how we conceive of time. Time stacking. We're all stacking time. We want to do 14 things at once. Want to talk on the phone, sip our Starbuck's coffee, put some input into the computer, read emails, yell an order, throw a paper airplane - I don't - but driving down the freeway, you see these crazy - 75 miles per hour, got the computer terminal by the side, tapping away, and the headset on. Man, they look like John Glen, 30 years ago. (Laughter) And they're all like caffeined up to the max, and - saw a guy the other day. Couple of kids in the backseat, and they were going like this, so you know there's tunes playing in the car on top of it. Guys' on the phone - hey, time stacking. It's just - well, that’s not a good thing. For achievement, for execution; that's not a good thing. We actually need to do something called time chunking. We got to get back to that. And I'll explain that in a little bit. So next is a beautiful quote by Einstein, which is, 'The current problems we face cannot be solved at the same level of thinking with which they were created.' The current problems we face cannot be solved at the same level of thinking with which they were created. Now, I could talk about so many examples here, and I feel a little bit 'Ugh,' you know, because I - but I can't - but I know you guys can think of a lot of wonderful examples on your own, and I'll try and point out - so - go ahead. Yeah. So now we got to fight the fear of change. If it wasn't bad enough, now we got change. And change - every time our equilibrium gets challenged, we try to what? Natural - it's natural human instinct. We try to get back an equilibrium. Whether we're physically, mentally, spiritually, emotionally out of balance, we try what we can to get back to short term equilibrium, and it doesn’t really work that much because of fear of perfection, and some low self-image stubbornness and learned victimization; and the whole world, as we know, hates change. So in our society the focus is also on improving weaknesses. So tool number one is Strengths theory. Alright guys, focus in now, alright, because we're going to move here. But it's going to be some pretty awesome - I hope it'll be some pretty awesome stuff. How many of you know anything about Strengths theory? Nice and high. Okay. not too many, just a few. Alright, let me just net it out. We spend an entire lifetime working on our weaknesses. Most of us. And all we get are a lot of really strong weaknesses. (Laughter) You can raise yourself all the way to mediocrity, by focusing on your weaknesses. 'I'm
going to make sure - I hate math, but I ;m going to be good at it.' 'I hate computes but I’m going to master them.' 'I hate speaking in public, but I’m going to be great at it.' Hmm, no you’re not. (Laughter) There’s a few little things, like personality and temperament, learning modalities, neural biology recordation; which means that your brain is actually formed in a certain way; genes and so forth, and you have natural predilections to have strengths in some areas and some weaknesses in others. So, what you got to do is stay away from the weaknesses. Well, you can’t stay away from the weaknesses, because that’s part of my job. Well, you can delegate the weaknesses. You can begin to figure out what kind of strategic alliances you need to make with people. We can trade off those weaknesses. How about I'll take something that you're horrible at that I happen to be great at, and you do the same for me? We do that all the time in organizations, and it's very powerful. So, for those of us who are all focused on the academic problem. Entrepreneurs have a lot of impetuousness - not all of them, but a lot of them do. So they have a lot of impatience with school, and I know that we have - there’s such a hang-up with education. 'I can only go so far; I didn’t get an MBA from Duke, or Harvard, or a PhD...' Well, these numbers are real okay? Over 50% - from US News and World Report - over 50% of all CEO's and Fortune 500 companies had C or C minus averages in college. 65% of all US Senators come from the bottom half of their school classes. 75% of United States Presidents were in the lower half club in school. Over 50% of millionaire entrepreneurs never finish college. And the average millionaire entrepreneur has gone banko 3.75 times. How's that? No, it’s about practical application. That's what I think. I think theory is great, but practical application is really where it's at. Otherwise, every professor we've ever seen would be a very wealthy person. (Laughter) But that’s not the case. I say that with great respect, because I’m a guest lecturer at Stanford and US Berkeley, and I love those guys dearly, but that’s the way it goes. Now, let's talk about failure. You know, the entrepreneur's ability to handle failure. It's a real deal. Bob [unclear 8:43], great maniac that is he. Great athletes frequently hold double records for both accomplishments and failures. Babe Ruth, right? Major League record for strike outs and home runs. Sammy Sosa might break that. Barry Gonzo might break that based on his - in baseball, anyway, I won't go through all the - but entrepreneurs have an ability to bounce back. They have a tolerance; a higher tolerance for failure, than what we call bureaucrats, which I’ll get into in a second.
Go. The entrepreneur versus employee. I talk about the entrepreneur versus the employee mind-set. Employees make lousy entrepreneurs, and entrepreneurs make lousy employees. Generally speaking. For lots of reasons, and this has to do with Strengths Theory and so forth and ties right into it, and you just need to remember that and stop trying to force it. It's sort of like the firm that typically wants to take the highest achieving sales person and make them the manager, because he knows everything, or she knows everything about the business and is totally respected; and so forth and so on. Disaster. And it happens over and over and over again. So remember, employees tend to make lousy entrepreneurs, and entrepreneurs tend to make lousy employees. Now - so that's the first tool. Strengths Theory. Now why - God, John, I got it. What do I do with this now? What? We're going to start to apply it. The focus chart. We're going to talk about a tool that increases clarity on the [unclear 10:24] with the [unclear] of responsibility. You know what (audio missing) …think the starting point, there are some things that you need to do, individually, and there are some things that you need to do from a business perspective. And if you try to just focus on the business, and you miss the stuff that you should do as an individual, to strengthen yourself and increase your self-awareness and do some other things; make yourself better, it won’t; work. And the same is true if you're thinking too much about yourself individually. Your strengths, your weaknesses, your limitations, you problems, what hasn't worked in the past, or whatever. So you got to focus a little bit on both things. So I think the way to put those two things together is in a tool that I call the focus chart. Here's a sample. Now. again, this is all explained in the white paper. I hope that the first assign - now, you know what? Is Jay here? Oh, too bad. Because if he was I'd ask him for permission to give you guys some homework. Okay, because I’m going to tell you something. I think - let me try and explain this, and I don't want to assume anything, but I hope that you might find that some of this could be unbelievably vitally important to you getting off the runway when you get back with these concepts. Jay, I just had a quick question. Would it be okay if I gave them a little bit of homework? Jay: Is it for tonight, or for [unclear 1:33], or for... John: no, for tonight.
Jay: Let's see. Do we have any other homework assignment. Yes, go ahead. John: Oh good. (Laughter) Jay: But not more than four hours, John. John: Oh, no, no, no. (Laughter) I'm telling you , if you guys do this, I’m going to get a lot of hugs tomorrow. Alright. So - and high fives, sorry; for those who are a little - (laughter). I understand, there's - gosh, we're all different, but it’s cool. Okay. This takes the normal professional person 20 minutes to do a first draft of. 20 minutes. This is called a focus chart. I would like you to take out a piece of paper, draw a circle in the middle of the piece of paper. I would like you to show some blocks on the sides. I want to show you some blocks on the sides. Now, here's what it contains. Remember I said you got to do - there's a few things you've got to do, and if somebody said, 'Nah, you don't have to do that,' they're full of it. We have to work on us. And then we have to work on the business. And I think to marry those two things, the very first step in executing strategically is to get really clear on your what's and your how's. The circle answers your three most important priorities at work. Now, don't worry about is it 40%, 20%, 80%, in one area or another. My three areas are consulting, product and service development, and speaking; because I got some books coming out next year and whether I like it or not, I guess I’m going to have to do all this stuff more. (Laughter). Anyway, so - but anyway, those are my three. Everybody's got three. From United States Senators; who have a very complicated life, to Chancellors of universities, to lone attorneys or accountants; widget manufacturers; whatever it is. I just want you to think for a moment; reflect. What are the three bottom line responsibilities that are the most important things - if you were describing what you do to someone - for someone, these are the three things that I do mostly. I may not be 100%, but it'll be over 80% in those three areas. Here’s an example on the board; there’s one I think in the white paper. Marketing, strategy and execution. How about sales and marketing? Sales; don't forget sales. For the amount of small companies that were here; because we're chief, cook and bottle washers, right? We got to sell. So sales and marketing is probably going to be one, and I would combine them. Then there could be strategic relationships. The Dream 100 of Chet's, which I think is phenomenal. Originating and growing key relationships. And then whatever your third one is. Presentations - whatever it is. Producing; production. Widget manufacturing.
So the circle, right here, for anybody who can actually see that red dot; these are the what's. And the boxes are the how's. So this is what you do, this is how you do it. The boxes should correspond to each one of the three areas within the circle. So when you say sales and marketing, I want to know, does that mean emails? Yes. Presentations? Yes. Conferences to sharpen your skills? Yes. Does it mean meetings, preparation? You bet. Everything that - everything that goes into - anything that takes up your time should be on that list. Okay. So now, when you have a customer or a prospect, and you're trying to separate yourself from the competition, one of your vital tools will be a reproduction of this focus chart. When you show this to a prospect or a client, what you’re saying is, 'This is what I do for you. This is what I do and how I do it.' And if you take just five minutes and take them through it, they're going to be blown away. Because it's clarity. Clarity is power. Mushy thinking is dangerous. Mushy thinking puts you on the endangered species list. Clarity is everything. Now, if you got to a holiday party, and you run into someone, and you're talking about success. So, 'How you doing, Bob?' Bob's got a margarita or whatever. 'Bob, how you doing?' 'Good.' 'What's going on Bob?' 'Well, you know, another year, going by. Things happening. Family. Tape on the floor.' 'Oh Bob, that's all fascinating, but how's your life? Bob , what's your definition of success?' 'Success? Well, I don't know. Freedom? Money? Laughter?' 'Bob, it's been so good talking to you, but I got to go to the restroom.' (Laughter) What I'm saying is, I'm not trying to be rude, but mushy thinking is a repellent. And so if we can't sharpen up, what we say and how we say it to people, we're dead meat. You know, somebody asked me, 'Okay, Mr Smart Guy,' at one of these conferences; 'What's your definition of success?' And I said, 'Success is a progressive process to achieve and maintain peace of mind through balance; continual improvement and the realization of worthwhile goals.' (Laughter and applause) No, thank you , thank you. Not trying to be a smart guy here. (Laughter) But you know, this is a real important thing to think through, what is success? And that's 28 words, if I remember. And you got to do it under 30 words, for all kinds of reasons I won’t get into today, but - so that's the focus chart. Do one tonight, guys. And you will see - it's a hiring tool; it replaces job descriptions, it changes as your job changes, it will keep you straight, it will add phenomenal productivity to what you're all about. Next one.
We're going to skip a few here. Keep going. Oops, go back one. Thank you. Close your eyes. This is tool number three. Quick one. Close your eyes, close your eyes. You're on a desert island. Now I'm going to make it more dramatic. You're on that plane with Tom Hanks, that went down in the drink. (Makes noise) Bam! You find yourself, luckily, on a raft. It's cold, you wind up on the beach at sunrise. The only thing that works is your cell phone. But the problem is, due to a whole lot of reasons, your cell phone doesn’t work for more than five minutes every week. Now, you call in, and they know you're down, but they tell you,' It's going to take a little while.' 'How long before I’m rescued?' 'Few weeks.' 'Few weeks!' 'Yeah.' 'Okay.' So, in the meantime - you're can open your eyes; now you're there. Now, here's what you got to figure out. How do you run your business when you got five minutes a week to call in? Well - I’m really cutting it down here - trying to get down to the beef, but here's what I’m trying to drive at. One of the most powerful things you can do to execute properly, is figure out what kind of results you really need. What kind of results you really need. Five of them. Pick five. What are the top five indicators of success that you have for your business? It could be number of contacts made. Number of presentations made, number of widgets sold. A CEO would have like, revenues, accounts receivable, revenues per employee, if it was more sophisticated; the CFO might have cash flow or fixed or variable expenses. Stock price, number of employees. Whatever it is. A VP of sales marketing might have the number of new clients. Number of products. How many in inventory, if inventory's an issue for you. Number of hits on the website. Whatever it is. So you need to use these as performance measurements. And so the point is, if you use the desert island top five, along with the focus chart, you're getting somewhere. You're starting to really get somewhere. Because why do you want the top five? It will tell you what you need to be focused on every day. Every week. And it will tell anyone who deals with you, or who supports you, the same thing. That should be posted. It should be up, you should have meetings about it, even if they’re with yourself, and you should review this - your progress on these top five indicators. It’s sort of like a pilot who's driving and he doesn’t look at the fuel gauge. He doesn’t look at his altitude. He doesn't look at his pitch. I don't know if I want to be on that plane. So it only makes sense. And so there's like 158 things you can choose from. Financial indicators, operational indicators, strategic indicators. Hey, gimme the bottom line. What are the five most important things that tell you that your business is doing well? Or not. That's all I want to know. What are the five?
So I want you to come up with those five - part of the focus chart. That should take you five minutes. Maybe 10. Next. Next thing I want to try and do, is I ;m going to try and blast a little bit on your concept of time, and this is where I talk about time chunking versus time stacking. But one of the secrets to making the most of time available is understanding the difference between fixed and variable activities. Right now, here's my story. We’ve got a week; five days. Let's say five days. I know a lot of people in this room work a lot more than five days a week, but think of it this way. Five business days. Five mornings, five afternoons. When you start looking at that focus chart, and you're looking at the what’s in the middle' your top three priorities and responsibilities; and the how's on the side; and then you look at your desert island top five. Why can't you schedule in advance stuff that needs to go in? The stuff that Paul talked about that is really priority? There’s that classic example from Stephen Covey, of the big glass pitcher. I use this in - I got a non-[profit organization for kids, that my wife and I are very involved with, called 'How to Get an A in Life.' And we teach teenagers life skills from the research. So anyway, we have like a big glass pitcher, and it's like this tall - it's about that tall, and it's about that big around. Put it on the table, and I take six river rocks, that are like as big as my hand, and I put them in there one at a time, and I ask the kids- and they come up to the top; you know, strategically. And I ask the kids is it full? And they're thinking - their context is the big rocks. And so they say, 'Yes.' And so I reach under the table and I’ve got a pitcher of gravel filled with rocks and stuff, and I pour that i, and I juggle the thing around, and I go, 'Is it full?' Now, half the kids can’t stand me because they know I’m going - they think I’m going to manipulate them, and the other half - because I ask them, 'Is it full?' And so the other half - but half of them go, 'Yeah.' And then I reach under the table they can't see what’s under the table - I reach under the table and I pull out a bunch of fine sand, and I dump the fine sand - really fine, white sand. And so I jiggle the thing around, and it takes like half a gallon of fine, white sand. Even though it looks full. And then I ask them again, 'Is it full?' And most of them say 'No,' because they just don't trust me any longer. (Laughter) I hate that part, but I earn their trust back, but - I reach under the table again, and I get a pitcher of water. And I dump the water in, and - I’ll be darn it, takes like a half a gallon of water; this bloody thing. And now I go, 'Is it full?' 'Yes it is.' Here's the message. It's such a great visual. I would have brought it here, but I would have broken it in transit…(audio missing)
…said, the big thing, it's kind of a cool thing to see. It's very simple. You got to start with the big rocks first. And every day, every week. Because if you don't, the sand, the gravel, the mud, the muck; fills up your 24 hours. Okay. And it's a poignant, important, visual representation; I think; the best one I’ve ever seen, even though it's so classic; that speaks to time chunking versus time stacking. Time chunking is proactive. Time stacking is reactive. Time stacking is - when we're treating everything as an equal priority. And time chunking is 'Whoa, wait a minute. the one thing I’m going to do is I'm going to spend a little more time planning.' Planning what? 'My agenda. Who I’m going to talk to, what I'm going to do, how I’m going to do it.' So in this new economy that we're heading into, the one thing you guys got to do is think a little more. We all got to think a little more, and that means make time for planning what you're doing. And a wonderful book called, 'Good to Great,' by a colleague of mine that I really respect; that was a co-author of 'Built to Last.' The gist of that book is all about discipline. The need to get back to discipline. It comes from a big company perspective, but its - a lot of that relates to the small companies as well. We just need to get back to a little more discipline. And push back on the insanity. And go somewhere and plan the week. You're not looking for perfection, you're not going to hit 100%, and just like this seminar, if you're expecting 100% return - you're going to get more than that, but I want you guys - lighten up. It's okay. If you hit 80%, it's out of the park. Your life - I’ll see you in Hawaii. Whatever you want to do. If you just focus on fewer things and do a better job with the fewer things, no one will compete with you. Alright? So time chinking versus time stacking. I want you - my whole thing; my gift to you here - time chunking. Plan ahead. Okay, now on the other issue of 'I don't have enough time,' there's a great quote that says, 'Don't say you don't have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pat Stewart, Michelangelo, Mother Teresa, Leonardo Da Vinci, Thomas Jefferson and Albert Einstein. We really do. How many work hours do we have? If you work ten days or ten hours a day - ha, ha, ha. Some of you guys say, 'I work 10 hours by noon, dude.' (Laughter) And I believe it. It's so exciting to be - no, I’ll talk about that in a minute, but this is a real issue. So basically 2200 hours a year is what you got. At 10 hours a day. When you take away weekends and two weeks off, you got 2200 hours a year; and my question is what are you going to do with it? Are you going to let this reality - let people,
circumstances and events dictate to you, or are you going to dictate to it? Come on guys. Let's step up. Let's exert some more pressure on this. Let's make it happen. And there is no simple way. Go ahead. Good. That's good enough. Yep, back one. Sorry guys. Now Rick, I want that 20 seconds. So there is no simple way. And the dis - Rick's like, (mumbles). So the discipline is essential. Dr. Seuss; he said, 'I go to my office everyday -' you know, a lot of artist who do the same thing; they're so cool. Writers - I hate writing. But I think - anyway - I think I’m good at it, but the only way I can write is if I do it every - at a certain time every day, for a certain amount of time. Sometimes I don't come up with anything. Nothing. Nothing at all. But I do what Dr Seuss says, which is 'Sit down. You ain't leaving until you're done. Until the clock says "X, you're not leaving."' So I think there’s some real knowledge - some real intelligence in getting into patterns in life. Rhythms that you're in charge of. Setting appointments with yourself. To do the stuff, like, prepare, like read. Bill Gates takes two ten day vacations a year, just to read. With no family, no distractions; up in the mountains; see you later. And he takes a junior - Kmart - whatever - bags of books up there and he just reads it. Next. Now, here's how to know whether you're time chunking or time stacking. Real quick; this is not homework, but this is a great tool that you should use for the future. If I were to follow you all around for six weeks and do an official time and motion study on you, that really happens in life; I could tell you to the minute what you're spending your time on and exactly what your - based on your objectives and what you should do and what you shouldn't do -want you to start bagging what you ought to do more of. The best way to do it is with these two circles, which are discussed in the white paper. Answer the question: where do you currently spend your time? If you had to allocate it, draw it out, in an average day or week, and talk about hours; don't talk percentages; it's too vague. Talk hours. You can use a day or a week. But that's the time frame you should look at. Where - if I asked you, 'So where do you spend your time?' If time - if we can all agree it’s the most important asset; where do you spend it? This is a great way to show me. It would be a great way to show yourself, most importantly. And then, based on your top five indicators, and your focus charts, and the strengths theory, I could ask you, 'In light of all that stuff, where should you spend your time?' And you would draw another pie chart right next to it; where should I spend - and limit the activities to no more than
six things. Because when you really get down to it, you'll figure it out that you don't need to go deeper than that. Keep it simple, But now that you go the pictures in your mind, and they're right in front of you to compare, you can do your own biopsy; your own diagnosis; to figure out what needs to go, and how I’m going to delegate it or reduce it or eliminate it, and how I’m going to get back on track. To 80% alignment. We'll never get to 100%, it's just not real; we'll get to 80. Alright? Next. Revitalization. This is a quick one. Par - I have tool number five for you…
Jay Abraham Mastermind Marketing 21 …it’s - is another - it's a broader framework - it's about how to think about time. A tired businessman is one whose business is usually not a successful one. There’s something called the law of attraction. If you're tired, beat up - I love the discussion between Jay and - help me. Thank you. On revitalization, right? When Paul said - Paul - when Paul said, 'I would take Friday’s off?' You know what? That's flat brilliant. I don't know where he got it from, but I can substantiate it with a couple of phone books of research, and all I’m saying is right now, if I - on a one to ten - if I graft your level of effectiveness based on the quantity and quality of output; the stuff that matters most; if I graft your effectiveness; which we do with clients, the average professional in America today is somewhere between three and four, on a daily basis. Three and thirty and forty percent effectiveness, okay? In terms of what should they be getting down, priority [unclear 1:27], and so forth and so on. Well, I say, what would happen if you doubled that? 'Doubled it; how do I double it?' 'You take more time off.' You see - it's a funny thing happening - it's called the revitalization effect. And it’s now in the medical books - Duke Medical Centre, and Stanford Med Centre and some other studies have documented this; and it's an amazing thing, but human beings are not robots, we are cellular beings, and we need to revitalize. Four pools. We got body, mind, spirit and emotions. When one of those four reservoirs runs dry, it just throws the rest of it off balance, and we become unattractive to deal with. When I say unattractive, I’m not talking about how pretty we are, or anything like that. I’m talking about something happens to the way we talk, how we say things, what we miss, our awareness, our memories, our ability to connect with people at a deep level. Something happens. We're putting obstacles in the path. So my suggestion is, you take that one real seriously, is to absolutely start taking more vacations. And you need to take vacations where you do not work. If you think revitalization comes by taking a file to the mountain house, making a little call, having the pager
on; the minute that pager goes off, for that day you've ruined the revitalization effect at a biological level. Okay? So it's either you're off or you're on. It's like that movie - 'Hands on, hands off. Wax on, wax off.' You're either on or off. Choose it, but the most important thing is - think about this. If you took eight weeks a year off based on the - the fact is that we get between eight and 14 days of peak performance when we're revitalized. When we come back from a vacation, don't you feel like things don't get to you quite the same as they did when you left? You're better able to synthesize complexity, relationship issues, politics, sales cycle issues, closing - 'Hey, this is what we need to do over here.' 'Well doggone it, why didn't you tell us that three weeks ago?' 'Well, I wasn't rested.' But don't you feel more - you get eight to 14 days off, according to the revitalization effect, of peak -you get eight to 14 peak performance days. So if you go through the numbers, and multiply what that means to 220 work year; if you took eight weeks off, you'd wind up doubling your productivity, going from a three or four to a seven to eight, working 180 days a year, and having a heck of a lot better time. And by the way, being a lot more interesting to be around. You know, it's like, 'Jack, what did you do?' 'Well, I just climbed Mount [unclear 4:24] the other day. What'd you do?' 'Oh, I made coffee at the office.' (Laughter) 'That’s really...was it good?' 'I don't know.' Eeyore - I mean, come on; how you going to separate yourself from the competition? You got to - guys, God gave us these bodies, these minds, this spirit, our emotional make up. The Japanese have a word for over-worked by death. Mitsunumo. I don't want you guys to suffer from it, and I’m not going to either. Guaranteed. But this research is really huge, and I’m going to tell you what happens to your results is going to be phenomenal. So, do you take enough vacations to revitalize? Again. And then we got all these stats we can run through keep going. (Mumbles.) Ah, the work day has increased tremendously, and the pressure increased tremendously; I want to get to tool number six. So now we get to decisions. Next to last; these will be very quick. And this is the average professional in the United States today makes 1327 decisions a day, according to time and motion studies. Okay. Now, most of those are at the subconscious level; no doubt about it, but you know what? Some of them rise up; they bubble up, and we got to think about them. Wow. Habits. Did he say habits cause the web? That's one of the factors. So we need something to help make decisions. As I’m looking at all this stuff, I’m wrestling with it too, and I’m saying, 'How do I make use
of all this great stuff? I’ve been attending a lot of these sessions, and taking notes like crazy; how do I get the most out of these incredible minds, and all this great stuff?' Well, one of the things we’ve got to do is we've got to have a way; a mechanism for sorting through the stuff. I just can't look at it and go, 'You just need to focus on true priorities.' 'Okay, I got that.' I don’t even know what a true priority is. I mean, I do; but I used to not know. I used to kind of think I knew, but I really didn't know. But after you're done with the focus chart and the desert island top five, and so forth, you'll have a much better feeling of what is important to you, what you can act on when you use these tools. Next. There are ten ways to make a decision. Go ahead Rick. Go again. Again. Go ahead Rick. There. Alright, now this says nine. There's ten. Let me go through them. Here's how you guys -I'm suggesting. This is a great filter for you to use, to help you decide what you ought to do. What you ought to focus on after this session. One is figure out probability. I used to use this important modicum of time, money, probability. Probability is the most important thing. If I’m going to work on the deal, it's got to have high probabilities. How high? 70% or more in the first phase. And how do I do that? Qualify the heck out of it and so forth and so on. Money. It had to meet my minimum income requirement per transaction. And then time. I couldn't - have to rewrite the Magna Carta. So what's most likely to occur has to do with the activities you're thinking about; say, 'Is this really likely? Does this have an 80% likelihood or better, of turning into bucks for me?' 70% - but I wouldn't go any lower than that. And that’s one of the biggest overall impact to my business. Quickest impact. Which of these activities that I'm looking at in all these books, and ideas, is most likely to generate the quickest impact, from a time stand point? It could be financial, operational, whatever. Most permanent impact? What's least disruptive to our existing operations? That may not be a factor to you guys. What’s most visible to key stakeholders? That might not be a factor, unless you have an investor involved or some stakeholders. Quickest pay back. What's going to produce the quickest pay back to me? What involves the least up front cost? This is normally very important to us. Should I create a website? Well, how much does that cost? Well, should I work on two of the marketing ideas from the Parthenon? How much will it cost? This is another - it's a critical issue guys. It'll help you sort through? And what's easiest to implement? The last one I’m going to add - easiest to implement. I don't want brain
damage. I don’t want - I want to keep it simple if I can. I don't know; call me a fool. I like easy. I like easy more than hard. If you have a complex, tough task; give it to the lazy person. They're going to figure out the best way to do it. That's what I think. So, easiest to implement. The next one is what is most consistent with your strengths? Your core competencies. So what I would then do is use this list, pick the top three or four, and sort everything according to that. So last one. I'm going to close here with the seventh tool - triple A's. And here it is. Triple A's. I'd never have a meeting, or I'd never got through this; I'd never think about something like this - I mean, I have a separate list in my own bag called Triple A's. Assignments, Actions and Accountability. That's triple A's. These are just - 'What should I do, when should it be done by, and if it's not me who will do it, who is it that is responsible; singularly responsible? Along these lines, some other stuff to sort through that'll help you, is look for instant impact ideas. We call them Triple I's. Instant impact ideas. Million dollar ideas, is the next one. Look for million dollar ideas. Big, big ideas, that can take you a long way quickly. Triple A's; Triple I's, million dollar ideas; the acronym is AIM. You can't focus if you don't AIM. Good way to remember it. And for all the other stuff, that we hate to let go of, we hate to let go of; don’t let go of it. Put it in the parking lot. Alright? I have something called a parking lot for great ideas that I really want to get to; I really want to do, but I just can't do it now. Those used to drive me nuts because I'd try to do them anyway. But now I set up an appointment with myself for two months in advance, and that's when I get to the parking lot ideas. Okay. That's seven quick hitting tools for executing. How do you take this gold, mine it, kick butt with it, have a life, and truly out-execute your competition? Grow your business. Execution is everything. You've just learned about focus, strengths theory, decision making, time in a different way; I hope, and how to really sort of synthesize the noise. How to reduce it down to a manageable bunch of stuff? I got to go; it's been a super honour, and I really mean that. Thank you guys very much. (Applause) Thank you. Jay: Wow. John: Thank you guys. I'm done. Jay: No, no, you're on the strategy panel so just give us like 10 minutes and we'll be back. Thank you.
John: Thank you. Great. Thank you. Jay: John - all of the speakers, besides coming here to give to you, are going through performance hoops, because he normally would never do an hour and 15 minutes; he would do two or four, and then you would basically prefer doing two or four days, and we say you got to try and give the big payoff to everybody. Many of these people have so much more depth; it's like I could do 86 hours myself, and we're trying to give you the best, integrated Jay Abraham marketing mind-set strategy and then get all these wonderful people. John will be on the Power panel in about 15 minutes. We're going to work on trying to get a whole big, full, two and half to four day event with John; or five day - we haven't figured out what it’s going to be yet. But get what we're doing. We're trying to compress the big message. Do you understand that? The Pareto principle essence; because I don't want you just to have a lot of great marketing ideas, I want you to put them together strategically, but thank you John for letting us play havoc with your [unclear 00:02] and very, very, very, great wonderful message. Okay, here. That deal. I’m going to reconcile for you really quickly. Rick says that maybe I frustrate you guys because I talk about Power Parthenon, I talk about force multiplier, I talk about focus; anybody gets' daunted and - I’m very simple. I get a big overriding strategy that I’m trying to reach. Then I break down - I’m a pragmatist and I’m very logical, one-on-one. What's the easiest - first thing I do is look for the low hanging fruit. I use that to generate the cash flow - first of all to do two things. To validate the viability; the productivity, the power of my methods so that you're really feeling good about them, and everyone in your organization sees demonstrable validation. Then you use the cash emanating, to fund the longer, more strategic things but the key is when you find one activity, one approach, one promotion that works; most people stop there, and they do it, at best, intermittently. They don't do it systematically, sequent - your job is to bring it all down to pragmatism. Easiest, fastest, safest; least time, money, effort, human capital to start with; just so you get a validation a little bit - or a lot of capital; then the goal is; can you turn that into a sustaining; whether it['s monthly, quarterly - at certain intervals. If the answer is yes, you do it. If it's no, you use the money to go to the next activity that's going to have the most sustainability, and you keep using it to parlay, and you keep building layers and pillars. Layers and pillars. And you understand you’re working on the geometry, but it's taking you 20 years to get to where you are, or ten; if it takes you six months or a year to get into this, you take the first easiest thing, and
what I would think it would be is - the Jay Abraham 101 says you got all kinds of stuff in motion right now. You identify and inventory it, as i said yesterday; what it is. And it's like, 'Can I make it better right now? Better headline, or a better approach or add something to it; or take the money or the time and use it somewhere else. That's the first thing you do. The next thing you do is referrals, and all the things that take almost no time and effort; but gives your residual. the next thing you do is you work on the two other ways to grow a business; in selling more things more often. Then you try to reactivate it - just do the things that are logical. Does that make sense? And you keep building; but when you have a breakthrough, you don’t go, 'Okay, great. Stop doing that, let's do another one.' If it is sustainable, the first thing you do is put that in place so it'll keep coming in, being predictable, being systematic, being projectable, being budgetable; so you know that you're going to get $20,000 a month from this; every time you get a new thousand lead, you're going to get this; so you can forecast it, and you can use that money and don’t use the money. I live - I have a beautiful home in a very conservative neighbourhood. I have the biggest home in the neighbourhood; it's by and large well overbuilt for the neighbourhood, and it's probably - lose $500,000, but I sold it; but I had so many people that I helped when I got started, who if they made $10 million, they’d buy a $25 million house, and their debt service would be 100 or $150,000 a month. And the first time something didn’t work in their business, they were screwed and they lost everything. You want to not take all your money and put it in your lifestyle, until such time as you have an asset that’s so valuable that you know it's going to sustain. You want to put it back in the business, because that's where the leverage is. A thousand dollar test - if every month you test 10 things with $10,000, you'll probably find three winners; and it doesn’t matter there's 7,000 you lose; and one of those three winners might be worth $200,000 a year, if you systematize it; but it's very logical. So you're working on the geometry of the business, but you're doing it one bite at a time. Does that make sense? And be pragmatic; don't go for the home run. I mean, what I say is easy. I’m not a sports enthusiast but it's like casing the bet. If you go for the home run and try to hit a home run, you probably won’t'. If you say, 'I want to -give me the bat, and I’m going to single.' If every team playing baseball; everyone at bat got a single, and the first time at bat, they'd be like 50-0; I mean, they would kill you with just singles.
You'll find home runs if you just try everything, but go pragmatically. The least - the fastest, easiest, safest, least costly, least time consuming, least capital; or human capital - do that first; because all you want really, is a validation that Jay Abraham isn't full of beans, isn’t it? And you want some money; if you spend $500 and you get back $3,000; you parlay it. And you parlay it. And you parlay it, but don't stick into your pockets and say, 'Oh, man, let's go out to dinner and have a big party.' Do the opposite. Please. We're going to take a very quick; 10 minutes. We're going to reconfigure, we're going to - still come back to the same tables because it’s too much trouble to change - we're just going to feel the water. And we're going to do the Power Panel for an hour, and get you off to dinner, then we're going to come back and do some fun things. So 10 minutes and we're going to start. Put on some very fast, motivating music for me. Yes sir? He was invited. He didn’t come. Yeah. She was invited, absolutely. She's got - she's a very interesting woman. Alright. Wow, what an auspicious group. You're going to see now. Okay, wow. So we're going to do a power panel. One, two, three, four, five, six, seven, eight, nine, ten. We're going to ask maybe six questions. Each one's going to have about a minute to answer. It's going to be a raw shock at the highest magnitude. First one answering has all the pressure. Last one's got - well, actually, the last one; with this long of a group has a lot of pressure to; to be brilliant. It's going to be a demonstrable evidence of how agile and proficient the minds are. So I'm going to ask some stream of consciousness questions. This is a strategy panel, so we're not going to talk about tactics. So the biggest first question I want now - I’ve already introduced everyone to you when you were here in the beginning, and rather than waste the time - well, I didn’t introduce Don. Don [Unclear] is a colleague who's specialist in very quick, instant changes, and he's that's right... Don: Somebody likes me, yeah. (Cheering and applause) Jay: ...And he came down to be here. Okay, stop, stop. Don: Yeah, thank you. Jay: And we're going to vote for your best strategic thinker at the end. But - so we're going to start. Okay, we got all these entrepreneurs in the room. We're talking about strategy. What would be the one most critical piece of actionable advice that you can do in one minute or less, that'll have - that will go further to transform these people when they get home; than
anything else you could tell them? Andy? And you can pass if you want to pass it. But you guys, this is a game we can play very freely. Scott: This is will be... Jay: One minute or less. Scott: ...purely from a sales perspective... Jay: Strategic, remember? Strategic; it's got to be strategic though. We're talking strategy; you've got to put your mind through this strategic screen - filter. Scott: ...think the sales process and women stick to it. Andy: I think once you've decided what you want to do, which is your strategy or should drive your strategy, I think the next question to ask is, 'Who can I find that already knows the how?' Scott: I think that the thing you got to focus on is really zeroing in on one thing and really looking at how you can strategically and tactfully implement that within your operations. Jay: Stop one second. For those of you who don’t know, Andy, you know Edmund Neil owns a very, very large company; very successful man. He's engaged and probably picked the minds of some of the best people. He's a partner with me in the Ed Edge business that we're going to do. We'll tell you about it later. He's a partner with Marshall. Marshall is a client of his. He’s one of the brightest men I’ve met. Marshall has utmost respect for him as a business person, because he follows what he learns and he's a brilliant, brilliant person at translating theory to applications. Scott, I’ve already introduced but I'll introduce him again. Scott Holmen; he built two companies from scratch, to a $100 million each, sold them; and he has taken a methodology which is very unique and combined a lot of the stuff I do; other people; and he's figured out how to bring it down to action co-efficients, one step at a time, and he also figures out how to find the hierarchy of opportunities in your business. And then basically, make everything happen. Alan Coleman is a colleague of mine, and he's involved with me in a really interesting business, and he’s formed a methodology that he's going to talk about after dinner, called, 'Rethinking Inside the Box,' and it's a really, really cool matrix for finding massive windfall opportunities.
Sri Rau is collaborating with me on a book. He writes - he's written articles for ten years for Forbes, and a bunch of other financial publications. He is a professor of marketing at Columbia. Marshall has got a 400 plus IQ, and he's the most bright guy and he's going to learn to smile more. (Laughter) But he understands - he understands the intricacies of bridging innovation with optimization. Mike Basch you know; Don you know. Don I just introduced and John knows all about instantaneous conversion and peak performance. You know Chet, you know Paul. My name is Jay Abraham. (Laughter and cheering) Is that Scott, go for it. You already did it? Scott: So no, I wanted to kind of add - so when you go to look at implementation, there's really three categories I think strategically you should look at. Number one is, a lot of you are learning a new strategy, new thing to implement here. And that's going to be new within your organization. But don't discount it. If you're already doing it now - because a second opportunity with its huge amounts of money, is being systematic. And what that means is taking a look at what you're doing right now. Are you doing it only seven out of 10 times? Because if you are, you're leaving 30% of the opportunity on the table. And then the third area you hear, is each one of these ideas - so it can be new, it can be make it more systematic. And again, I always ask how many times out of ten are you doing it? And the third one is where you take a look at your success formula; what you're doing well now. And look for an element that you can one up, as Jay would say, or you can improve. So, as you listen to these, don't discount them because you say, 'I’m already doing that.' Take a look - can you one up it? Can you systematize it, or something new or an element you can add within your organization? Alan: Let me ask you all, how many different acronyms have you heard in the last two days? Anybody? No, not too many. How many have you heard? 10. 15. 20? 35; thank you for counting. My sense is, pick one of them, and make it apply to positioning. Jay: Don’t mean to interrupt. One thing - Alan basically also, by day, helps major corporations and law firms formulate very sophisticated strategic litigation counsels, so he understands strategy at a very high level. Alan: Thank you - I think. (Laughter) Basically, to me, you need to evaluate your position in the marketplace at least once a week, and maybe you do that in the beginning of the week, not at the end of the week. And you look at where you are, where your competitors are, what
you clients say they want. What you're delivering, what you're not delivering, what's been rejected. But always look at positioning. Sri: I think the most important thing you can get out of this meeting and the days you're spending here is to come alive with possibilities. It's the mental barriers that you have that you have to break down, because there's some really incredible insights that you can get. Let me give you an example. This is something Jay's been advocating for a long time, and I was doing in independently. You look at every business and see what's their business model. And about - roughly a couple of months ago, Jay and I were talking, and it turned out that both of us had independent relationships with a very well-known firm; unfortunately I can’t name it; and both of us were very impressed by exactly the same thing. Here is a firm; a very successful consulting firm, that figured out a method to get clients to pay the firm for pitching it. Now, think about that. Jay: Pitching purposeful - so basically soliciting them. Sri: In other words, the firm figured out how to get potential clients to pay to be solicited. How's that for a business model? (Laughter). Man 4: Most people think in terms of customers, suppliers and competition, but there's another key component that can dramatically shift the way you do your strategy. What's the last - which one's missing? Well, employees too. I'll put that in there. What else is missing? There's a thing called a complementor. If you're in the vitamin business, maybe you can look for somebody who's a physical fitness coach, because they're going to complement you vitamin business. You look at Intel and Microsoft; they work hand in hand, because...what? The better the chips are, the more sophisticated the software can be. So if you start to look at your business from who are the people that are logically your complementors, it's spelled with an 'e,' not an 'i.'' And if you think that way, you're going to find there's a whole bunch of people who you can complement with and it'll totally expand your ability to market and sales just go way up. And then you can often make your competition a complementor. I mean, in New York City, they just got together all the museums and created this one day museum pass. And what they've done is they've doubled their sales because you get the one pass, and of course they divide it up, but it brings people into New York; they advertise jointly and now all the museums had - doubling in their visitor base, by complementing - and even though on one level they're competing. So if you can make your competition a complementor, or if you’re willing to see where these complementors are that deal with your business, you'll be amazed at how easy it is, because you are a solution to something
they have, and if they can get an equity deal with you in some way, it's just amazing if you start thinking in terms of complementors. Jay: Good. Man 5: To me, it's four steps. We’ve talked about all four. Define your client. Who are you trying to reach? (Audio missing) …got to be the beginning of the strategy. And then the experience you're trying to create for them. And by experience, I don't mean just when they purchase from you, but what they see of you. If you’re in the trucking business, what your trucks look like. When you open the door, when you answer the phone; what experience should they have when they do business or at least deal with you in some way? And then from that, develop the plan, and then execute. Man 6: Well, I got so much stuff floating around in my head; I used to think I was indecisive, but now I’m not so sure. (Laughter) Man 7: We'll decide that for you. Man 6: I got a couple of quick ones, I think, that might help here. One is an off shoot. You know what, it’s kind of cool, when you hear somebody you think of something else and it might related; might not be related; but I really like the idea of a complementor, with a slightly different twist, which might be a little more purposeful. And that is that to find a partner in execution is probably the single most valuable thing you can do from now. A partner in execution. And whether you call it a mastermind, or a Board of Directors, those are great; but they take a lot of time, you have to give a lot to them in order to keep participation up. That is, when you have a lot of people looking in on your own business, and sometimes it's a little melodramatic and unnecessary, so - but I think if you can just find a mentor who's really wise; who's been through some war, ups and downs, maybe even two; and you just make it your responsibility to be in touch with those guys, or ladies, every now and then, I think you're going to be super. And your probabilities - and I won't get into this - all the research and stuff that we're aware of on this stuff. But Michael Jordan has a coach. Jack Nicholson has a coach. They have for - Tiger Woods has got - not just coaches for their sport. Coaches for life. 82% of the CEO's in the Fortune 500 have coaches. They don't want to talk about it, but they have them. These are advisors; formal and informal. And then the last thing I'm going to say quickly is pass the torch. A candle loses nothing of its own light by lighting another candle. So hey, don't be paranoid that somebody's going to get my secrets. You know, so many of us are so careful today. And I tell
you, there is wisdom in that, but I believe there's far more to be gained by being open, out there. If you think you can add value to somebody's situation, or somebody else, for any reason; you grab them by the throat not really - and sit them down and say, 'You know what, we really need to talk about this.' And I just think if you're open and giving, your whole mind-set becomes serving others and the right people are going to show up on your lap, and great things are going to happen. You're going to get burned; what's new? Big deal. Move on and grow. Jay: Good. Man 8: I would say my answer to the question I thought I heard, is - yeah, so - whatever question I heard, here's my answer to it. How do you take all these ideas; because there are so many multi - gazillion dollar ideas out here that are being thrown at you; and how do you take those ideas; or which ones do you take and how do you make them actionable? Because I think that's really the key - you can hear a lot of ideas and each one of us has probably at this moment in time, a thousand different thoughts going around our head. So which are the ones that sink into your brain, that cause you to take action? For me, the distinction is the difference between recognition, and installation. You recognize a lot of great ideas. Which are the ones that become installed in you at a level deeper; at an emotional level? On a level that causes you to act upon those ideas? That's the difference that makes a difference, as far as I’m concerned. And then it becomes, how do you learn how to take the ideas that you like, that make sense to you, that work for you, and get them down to a level where you don’t have to think about them, you don’t have to try so hard to make them happen; they just become as natural as breathing, brushing your teeth, getting angry, falling in love; whatever it is you do well automatically. Those are the things you want to be able to do with the ideas that make sense to you, and have them become installed at a level that causes you to move on those ideas. Those of you who are interested in learning more about installation of ideas - how many of you would like to learn more about that? Raise your hands. Okay, good. I may do a little piece later tonight, probably about three or four this morning, when it's finished up. Jay: That's right; that’s about the only time we have, but we'll try it. We had a full house until two thirty last night. Man 9: What was the question? I'll just make up an answer. My answer is - thank you. My answer is; I’m going to go with Jack Polantz on this. I’m
going to go with Jack Polantz, and I'm going to give you the tactical solution, so the - pick the one thing that you're going to focus on. And I went into that already, so I won’t do that again. Pick the one thing - and then break it down, so there's only four things in your business that you could work on, which are sales, marketing, finance, or delivery of your product. So pick the thing - that area that you believe has the greatest leverage for you, and then optimize one part of it. Take a page from Chet, which is whiteboard the thing. So you decide - choose which is the thing you're going to optimize, and use that whiteboard process with your team. Create a process and then test it cheaply. So that's my general allpurpose advice. Jay: That was good. Man 10: What he said. Man 9: No, really, I totally agree. Just take something - the thing that has transformed companies that I’ve worked with is that one hour a week. That is just working on the business, and that's designed to improve the business and it's incremental, that it's continuous, and just don't expect big leaps because that will stop you from doing those meetings, and you'll throw out the baby with the bath water. A lot of clients that I work with they say, 'Well, we used to have meetings but they just turned into bitch sessions and we stopped doing them because they really weren’t' that productive.' That's bad leadership in a meeting, because it's no way you can have a meeting that's not productive, if you have good leadership. And that means putting those problems on the whiteboard and solving them, and looking to do it a little piece at a time. Jay: That’s a great point. Because you have the mike, I'm going to give you the chance - but you can pass. Think of a company that demonstrably is a great model for all these entrepreneurs to look towards, and give us again - in one minute. This company, and here's what it is about them you should learn from and try to model. Don't have to be a big company, it can be a company that - the bigger the company, the easier for you to describe in one minute; but can be John down the street who's got a drycleaning; he does it perfectly. But one company that they can think of modelling as a reference, and what it is that company does that's so powerful and so illustratively appropriate for them to think about. Man 9: Okay. When I was going over the strategic objectives, and I was showing like, 12 or whatever number of strategic objectives; think of a one of the most powerful strategic objectives you can have is to be the educator in your market; to be the one place where everyone goes for information. I’ll give you a great example of a great company that started
off ten, 12 years ago; they were non-existent, and today, I don't know what they do, but it's probably something like $25 billion, and that's Home Depot. And they said, 'When you come to our plumbing supply place, we got a plumber in there. Joe' been a plumber for 27 years. Well, if you want plumbing supplies, you want to go to another place where they go -' and literally, I had this experience where I went into a lumber store. I tell a whole comedy skit around this, but the customer service guy said, 'I'm sorry, sir, we're not allowed to give advice.' (Laughter) And you know, I’m serious. they couldn't give advice in case i built something wrong, whereas at Home Depo, they sit you down, they'll draw you blueprints. They’ll teach you how to be a master of home improvement. they created customers, right - move up the pyramid, like I showed you. They took people who didn't think they could do it, who weren't really thinking about it, and they moved them up the pyramid. So a great example of a company that became the leader by being the most educational in their market. Great advice for everybody here. Jay: Okay, good. (Applause) Encore, encore. Man 10: Does anybody know what Quicken does? Yeah, you all know what Quicken does, right? My company of choice would be Intuit. I'm a software guy, so I think about software. Intuit is a - I don’t know; the third, fourth - they're one of the largest software companies, and they are known for one simple, totally easy to grasp product. And then their line extensions are simple, totally easy to grasp products that are in the same space. Now they're pursuing a vertical strategy, which are simple, easy to grasp products in the vertical. So they follow my notion of focus. Good company. Thank you. Jay: Double bravo. Man 11: I’ve worked with a number of companies, and one that stands out to the question that you said, is - as a kid, about 25 years ago, I had the good fortune of being around my father, who was a senior Vice President for General Electric. Worked directly under Jack Welch, when Jack Welch came into the company, and at that time, as a teenager, I got to see how Jack developed his whole theory and system, and the resistance that was in place as he started to change the whole nature of this whole company called General Electric. And one of the biggest resistances that was there, as a result of my father; being an engineer at that time - being a nuclear physicist; was that Jack said, 'Tell all your employees to come and talk to you and tell them what it is that they do well and what it is that they don['t like doing.' Now this was a really foreign concept back around 25 years ago., because the whole business
model was based out on seniority, and nobody ever asked, 'Hey, do you like what you do? Are you good at it? Do you want to be doing this?' And so that was one of the first steps that he took for getting people to be in their jobs, in positions that they did well, that they were good at. There was a lot of resistance to that initially. Over the course of two years, I watched my father go through this process of saying, 'This guy Jack Welch; he's a joke, man. He's trying to change this whole company around. It's a complete disaster,' to 'Well, this guy's really got some great ideas.' Now, in the course of that process, a gentleman by the name of Bill Anders, who was an Apollo astronaut, was also there at the dinner table, through all these discussions that I would watch go on. And Bill Anders took this model from Jack Welch. Number one; get people to do what they loved to do; and then number two; take the company that you have and only find things that you do in your company that you're number one or number two at. Get rid of all the rest of the stuff. Number one or number two. To answer your question; how do you model that? Bill Anders took that very same concept, went to General Dynamics and within a course of almost two years’ time, did the same formula; the very same, simple formula; and left in less than two years with a $120 million of options and other things, as a result of just that simple formula. So... Jay: That's great. Man 11:...to answer your question, there's a model for how you might do... Jay: That's great, that's great. Thanks. Man 12: Jay, this is one company that's doing it right, as an example of these... Jay: And what they can learn from it, but it doesn't have to be a big one, just something that's going to be appropriate for them; not just one that's a great huge behemoth, but somebody who they can actually bridge and connect to. Man 12: So I’m sort of scanning Wall Street Journal, Fortune - my own experience, large companies, mid-sized companies, small companies, and... Jay: Local providers? Man 12: Yeah, and you know what I’m thinking. What I’m really thinking is, 'What would be of most value to the people who stood up in my earlier survey, and to the people in this room right now?' It's not asking a large or
mid-sized company, 'What do you do that makes you so great?' Not that some of that stuff is not critically important, like what was just said here. Be number one or number two; what is that about? Strengths theories and natural extensions to core competencies. That's huge. But you know, I’m going to make a quick suggestion that you talk to somebody in this room who I just happen to have personal experience with, who is in this room; therefore he's accessible. You could get to him, and his name is Gil Shower. And I just think, if you want to know somebody who's doing some things right; he’s tripled his business in the last year and a half or so, while most of his competitors are down or hurting, and he's a very brilliant marketing implementer, and he's a terrific guy. He's here, and so I hope that a lot of people will now attack you, Gil, over the next day, and - stand up will you Gil? Come on, Gil. There he is. Gil Shower. Okay? So he works in a small business, but its very relevant to - I think, a lot of what you guys are doing, and check him out. See what he's got to say. What he did. I'll let him answer the question. Mike: I’m going to pick the behemoth; UPs. I talked a little bit about them; worked for them for 8 years. In my opinion, they're the best managed company of the last century, without exception. And I base that on they've made over $70,000 millionaires. That's more millionaires than any company in the history of human kind has made, and the reality is if you get to middle management, you cannot help but graduate a millionaire by the time you retire. They just manage well, and they do things that we can all apply to our business. Tremendous sense of values. They wash every truck every day. Why? Because I don't know whether you're handling my package well or not, except when I see a clean truck and a clean driver, and a driver that's serious about what they're doing, and courteous about their business. My assumption is, you do that well, you do everything else well. And they just do a number of things just incredibly professionally. They measure - when I was with them, which is in the 60's, they would have a five driver centre, and they'd have a clerk at night, working four hours, measuring the results of each driver each day. And that clerk would then give the information to the manager. The managers would talk to the drivers the next morning about their performance the previous day. It’s that type of attention to detail at every level. Another thing they did which we could all do - because cleanliness was so important to their image to the public, they would, for example, when I would go out and visit a supervisor, I would obviously check the station, and I called one of the district managers - a personal friend of mine - one day, and I said, 'What are you doing, Verne?' And I hadn't seen him for years, but he was in
Cincinnati, and he said - I said, 'What are you doing in Cincinnati?' 'Well, I'm sitting in our station watching our station manager mop the floor by himself, because his floor was dirty when I walked in here.' And it's that level of attention to detail that I think makes them excel, and every company - for example, Patty Lund and the other ones that I was thinking about - makes them excel as well. Unknown man: Then he fired the cleaning lady. Mike: Then he - no cleaning service; get it done. Jay: (Laughter) That's right, stereo [unclear 4:08] In living stereo. Marshall: Without a doubt, the single most impressive company I ever met is a little company down in Hammond, Louisiana, and he's sitting right down here; Edwin Neil. I’ve been with him for about 18 years; he hired me as a consultant and I was sitting with Dr. Deming and he walked over to me and he said, 'You seem to know all the answers;' he'd seen me sitting in Dr. Deming’s class. This was at NYU. And he said, 'I can't afford Deming, but I can afford you.' And at that point, I was basically - he said, 'Maybe I can afford you,' which was kind of a nice thing to say. And he paid me - made an offer to pay me, at that point, more money than I'd ever expected, and he said, 'I just want you to come down and work for my little company.' And I've been there now for 18 years and watched it grow from just a few people to over 1000, and watch it - he's not netting more than he was grossing when I first got there. And what he has, I see, is enormous ability to see the potential in whatever your value proposition or the lack thereof, and if he sees it, he’s totally patient and committed to supporting it in a way that - I mean, I watched him deal with his people and the space he gives them to make mistakes, and the enormous love that is generated with everyone he touches, so if you get a chance - this is probably going to hurt Edwin over here, but that's probably one of the finest human beings and probably has one of the best success records in business I’ve ever seen. It's a little company, an hour north of Louisiana, and he's right there. So you Edwin: Marshall's the president of my fan club. (Laughter) Marshall: That’s not true. I’m one member of a huge fan club. So that's he’s got about eight companies, so you just have to decide which one basically let him listen to what you’ve got, and if he resonates with it, you're probably on the right track. Thank you. Sri: Have any of you ever bought any stuff from a company called Patagonia? Raise your hands. How do you like it? Patagonia is a
remarkable company, and there's a lesson here which I think is very applicable to all of you here; in fact I think that that's one of those - if you do this, you'll be successful in your life, type of deals. What happened was he was a mountain climber and he found that he simply couldn't get clothing and equipment which he was happy with. So he went out and designed extremely durable clothing, very good clamps and all the kind of stuff you need for mountain climbing, and that's how the company started. And there are a number of personal policies that he put in place, but basically what happened is all of the equipment he sold was designed by him, for people like him, and he doubled up the following, which was incredibly, incredibly loyal. And the lesson that you can take away from this is, for your company, you are the customer. And if you design your product and your policies so that you would be ecstatic, there's no way you can fail. Man 13: Enron? (Laughter) World Com. Arthur Anderson? I don’t learn strategy and theory very well until I see tactics first. And that's what we're going to talk about in a little bit later. Jay: God bless you. Man 13: There is a company - bless you - that I want to talk about just for a moment. It's not the biggest or the best, but it’s done something intriguing. It's a company that started about 10 years ago. I'll give you the name in a minute, you'll all recognize it. They developed a product initially by mail order. They opened retail stores all over the country while they continued their voicemail or phone mail. They have websites. The competition in this particular field is extraordinary. The prices continue to drop. The customers have absolutely no loyalty to the product or brands that are out there anymore, and their business has been flat. The company is Gateway. Gateway has just done something that I urge you all to try to do. In looking at all of the problems; instead of trying to fight to come out with a new gimmick or a different looking computer or a different looking screen, they looked at what else their customers were buying. They looked at what else their customers were buying that might, in some fashion, relate to their basic business. If you haven't seen the TV ads yet, or the magazine ads, you're about to see an enormous campaign, because they're now selling digital cameras and plasma screens. They want to get more people in the store. I’m sorry? $3,000 ones. [Inaudible comment from audience 2:12]. They're greatly discounted; correct. [Inaudible] Have you seen this? Jay: Is Bob Proctor in the audience? Are you here? Is he here? No. Actually - ironically, the general manager of the retail initiatives was supposed to
come as my guest, but - maybe he came early. He was going to come today. Interesting. Man 13: So the message is, whether your business is flat or not, whether you have one product or multiple product lines, look at what your customer's,; your clients, are purchasing or needing or buying, and see if you can add them to your bag of tricks. One of the examples I’m going to share with you later tonight, at about probably 3:30 in the morning, now, is the company that went from 30 products to 300, and most of the additional products were products they bought from their competitors. Man 14: How many people have received a Victoria's Secret catalogue? (Applause) Come on. How many have received more than one? Two? Ten? The strategy.... Man 13: How many collect all the issues? Man 14: How many men - you got to be honest with me - how many out there have flipped through one? (Laughter) I tie in the strategy that Chet teaches about top of mind awareness, and I want to talk about the tactic which is, all too often I hear people tell me, 'I don’t feel comfortable mailing more than once a month, or once every three months.' And I would say the vast majority of my clients, when they come to me, don’t even mail monthly. And the amount of opportunity that you have when you mail on a regular basis is enormous, as Jay has demonstrated with 650 people here, getting 650 different campaigns. Victoria's Secret mails up to a hundred times a year. A hundred times a year. And I can tell you without being inside their office; if I were sitting in the office of the CFO, he'd have a little thingy wrote down there, and all they care about is marginal profit. They keep mailing until their marginal profit no longer delivers, and so I think it's a great example of - among other things they've done, a company that's used the direct marketing medium, and consistency to create top of mind awareness in their industry. So the message here is, if you're not mailing on a regular basis, you need to amp it up until it no longer pays off. Man 15: The company that I really love to watch the most is 3M. How many of you guys know who Deepak Chopra is? Do you know? You've heard him speak at least on some occasion. Well, we did some well-being seminars in the early 90;s and Deepak was a speaker with us, and he said something to me once; on the way to the airport. I’ll always remember it. He said, 'The key to longevity is infinite flexibility.' And if you look at 3M, that’s kind of the cornerstone of how they operate.
The other company I love is Johnson and Johnson, because they're a company with great integrity. So the most sustainable part of any organization is the culture of the company. And the culture is always driven by the values, so when I'm looking for companies I love, I look in two places. How flexible are they, and what is the culture of this business? Man 16: Okay, I’ve got one company that comes to mind, then I’ve got an individual that comes to mind, and most of my work is done in the high tech world, so I’m a little biased there, but to me, my favorite one is Cisco. And that’s because I think they've defined their fundamentals, and they've done a great job of paying attention to it, and every Monday morning, the high level executives and all the sales reps get on the phone, and they have what they call a Monday morning commit meeting. To me, it's really not about the sales part, it is about they defined what's important to them, and then they don't just talk about it, they check it out every Monday. So whatever that is, so that has to do with John's focus wheel, really. I think that's a great example of that. And then I have a sales VP who comes to mind, because when I think of him - I’ve worked with about 900 sales VP's in the last two years, and only about 1 and a half percent of them actually know what they're doing. And it sickens me to even say that; but about 1 and a half of them really know what they're doing, and that is a very similar thing. They know what their strategy is, they focus on how they're going to execute it, and then they pay attention and then they make sure that the stuff gets done. So to me, it's define your basics, however that is for you, and make sure people get it done. Jay: Good. We only have time - and we have to be so fast, because if I don't get you into the room before nine, they won't serve us. Wretches that they are, so you got less than a minute to try to answer this, and if you can, pass. Those of you who have had the fortune and the ability to be in the room and watch all the other speakers and the interaction, what's the one activity, event, occurrence, incident; positively, that happened so far that you’ve observed that has the most strategic importance to all the people here that you would recommend they really refocus on, as far as just thinking about and listening to the tapes of, and doing something about; and if time allows, in your one minute or less; what's the one other thing you'd leave them with that'll make them more successfully strategic? So as much of that in one minute or less, but you got to be really quick, because I've got to stop and get them out at the end. Thanks. Good. Andy, pass?
Marshall: I can think of something I can learn from Dr. Deming. Theory plus activity equals knowledge. And you knowledge is really where intellectual capital is really the most valuable asset of any organization. So I think the thing we've constantly been reminded of here is to go home and do something. and I think that's the single most important thing we have to do. Jay: Great, thanks. Alan: And I would say - there's a bunch of people here in a lifestyle business, and there's some of you here trying to build a - actually build a business. So if you're doing a lifestyle or building a practice, or you're building a business, decide which one you're in and then adjust your life to fit it. If you're in a lifestyle business, take eight or ten weeks of vacation, and if you're trying to build a real business, then make the effort and the commitment and get it done. Jay: Great. Good point. Man 3: I think probably for those of you that have heard the other day there was the survey about how big you want to grow, and hurt - most of the room I saw was at $10 million when you started your business. And I think strategically, what you have to think about and understand is there are strategic levels in every business. You get to a million or two million, and you're doing everything yourself. And once you grow beyond that, you now have to start adding layers, and as you add layers you have to stop and change your business, so that you now become more of a delegator. And for those of you that have already done that, and you approach that $5 million, $6 million - maybe it's $10 million; you start having to look at changing your business again. You have multiple branches; you've got a more complex system, you've got to have more complex computer systems, and as you grow beyond that, you have a whole new strategic shift you need to make again, because now you're going to start attracting much larger competitors. So I think that for those of you that sit out there that say, 'I want to grow,' you have to go back and think about how you're going to strategically reposition your business. Maybe it means you need to start developing somebody more. Maybe it means you need to hire somebody. Maybe it means you have somebody in your organization that you really love, you made Vice President of whatever department when you were small, and no longer is that going to work, because when you go to hire that person, you have to think - if you're at $5 million, you need to be hiring people that are going to take you to 10 and 20 million. So I think for those of you that want to grow, you have to really stop and think about where you're
at, and strategically how you need to shift your business so you can grow to the next level. Audience Member: Great advice. (Applause) From a guy that's done it twice; to a hundred million dollars. Alan: Probably the most practical advice I’ve heard in the last year came from listening to the PEQ tapes that Chet and Jay did a while ago, and it has to do with something that Chet said. How many of you get aske about 20 times a day by somebody; 'Got a minute?' Anybody asked, 'Got a minute?' by somebody that works for you? Well, one of the things Chet suggested was that you put a sign outside your office that said, 'Got a minute's between 11 and 11:15 AM.' (Laughter) And I actually tried that. And I’ve actually now trained staff to do the same thing. To be able to say, when somebody comes up and wants to interrupt the flow of what you're doing, to say. 'Would you come back in 15 minutes?' Or put your phone on 'Do not disturb,' except for clients. Take the hour that you’ve heard people talk about, and make that your hour, or your half an hour. And if you can do it 15 or20 minutes a day, to do what you want to do that nobody else can influence - I have found a minor practical suggestion out of 22 tapes that were part of that seminar 33. Well, I’ve only gotten through 22. I didn’t get the second volume yet. Remarkably able to get much more control over my work day. Sri: In volume one of the file; I presume you got it yesterday, there was a beautiful booklet with an orange cover called 'You Squared.' Did any of you read that? What do you think of that? Absolutely. One of the big advantages of being on Jay's mailing list is he puts you in stuff with some puts you in touch with some really, really incredible stuff. I wasn’t aware of that before, and I’ll now go back and probably buy everything else that the author has written. But anyway, coming back. As a professor, I have a tendency to get dazzled by the intellectual brilliance of all of his ideas. And I think one thing that I needed to learn; and this happened recently, by the way. I was talking with Jay and we were bouncing ideas off each other, and it was absolutely a wonderful session, and then we said, 'Let's write a book. And I was thinking, 'Maybe someday we'll get around to it,' and he came back with, 'Well, can you have a proposal ready by next week?' (Laughter) And that's how it started. We didn’t quite get there, but we do have a timeline, and it has started. So my sincere advice to you is, you have many good ideas; there are methods of prioritization which many of the speakers have given. I think some of what Chet Holmes said was wonderful. Take action.
Man 4: For me, let's just visualize that you’ve got a fruit bowl in front of you, and it's got some grapefruit in it. What happens to the fruit when you take out the bowl? Goes all over the place, right? And I think that - two things that - both of the brilliance of Jay and also Chet over here, was that how important it is to set the context for whatever you’re offer is. That he talks about market data, and Jay uses a little thing about his Porsche for $65,000; and one guy said, 'No, I won't buy for 65;' and then Jay changed the context, and of course now, it was a yes where there was a no initially. You were talking about the importance of being the master of the data - looking at the data of the particular profession you're in, not looking at the particular specifics. Setting the context, which makes it = the proposition - irresistible, and my experience over and over and over again has been that the failure to think about the context that’s going to make your offer irresistible, which both of them were saying; is critically important. So what is the context that you need to establish initially, so the fruit doesn't fall all over the place? Mike: I'd go for referrals, but not as a way to grow your business, although, obviously it’s a great way to grow your business, but as a way to measure how well your customers love you, and how much they want to do business, and tell others. And one thing that concerned me for many of the referral programs; and I think somebody said it: it's not a matter of paying your customer to do it, but giving them service so good that they're doing a noble deed by telling someone else about it. That's what Patty Lund's doing, and that's - most people would rather do that than they would receive payment; although it depends obviously on the product; but I think that way of generating a caring - there was a survey done in Houston that I think was very interesting. They checked - they did a satisfaction survey in customers. And they asked customers, 'On a scale of 1 to 10, how satisfied are you?' And they surveyed 10,000 customers. And what they found was there was no correlation between customer satisfaction and repurchase rate. Interesting, isn’t it? If I had a satisfaction level of nine, versus a satisfaction level of six, there was no difference in whether I repurchased or not for those products. Then they asked the question - different survey but 10,000 additional recipients - when you asked the question, 'How much do you love doing business with this company on a scale of 1 to 10?' There was like .91 correlation. Which means almost directly proportionate, which means when your customers love doing business with you, it's an emotional reaction; emotional interaction, emotional relationship that you're dealing with, as opposed to just simply an intellectual, 'How satisfied am I?'
Paul: I would just be brief here, because it won't take long. Theoretical construct, practical application. We need theory and practice in order to achieve break through that’s great and critical. I just think, guys, where you are right now - most of you - that the trick is with the execution. You could take a mediocre plan and execute it really well, and it'll win. You can take a great plan, great idea - how many have we seen [unclear 11:16] where they couldn’t'; get off the ground; couldn’t get traction? Couldn't go through a stage or process. Couldn't recognize that there were six stages of growing a business as a business evolves. Great comment made earlier that - the stages of a business. You get to $3 million, you get to $5 million, $10 million; by the time you get to $100 million, you had to reinvent yourself about eight times. That's legitimate. So I would just say the one thing I didn’t say about the executive survival kit, which is, you should not only do it, but you should make sure that everybody in your company does that. Does a focus chart. Does a time usage chart on a regular basis. You teach them about time chunking. They use the decision filters so you don't take forever to make decisions. You keep track of the decisions you make, including those you postpone. And you have a way of either dealing with them, or putting them in a parking lot for some future - and then the Triple A's - Triple A's, Triple I's - you know, all this sounds kind of 'Ugh, triple, triple, dipple.' But I’ll tell you, it flat works. When you're dealing with people - as long as we have to implement with human beings, you got to keep it simple and you got to stay focused. So that’s it. Man 5: I would like to - I guess the question for me was,' What's the thing that I heard, or that we heard, that stood out, and how do you learn it?' Jay: That's got the most relevance... Don: That's got the most relevance. This whole piece of having people stand up at the microphone and share what it is that they got; the big aha that they got - is real powerful, because each one of you gets something uniquely different, and when you talk about it and when you share it with somebody, that hammers it down into your sub conscious mind that much more deeply. The second thing I would add to that is if you can hear those a-ha's or the ones that you get for yourself or hear from other people, and then put it into a headline, where you actually make a title for that a-ha, and now you got the - 'I got this.' Now what's the headline, write it down as a headline. This is what you’re learning here; marketing. Take the a-ha, put it into a headline, as if you were going to sell that segment, that topic of what you learned, to the market place. Then you will take this information, the
lessons that you learn and make them actionable and put them into the area of marketing. In fact, I’d like to suggest that if you stand up and share what you've learned, put it in a headline form thereafter, and then let's the headlines, and if you send - email those headlines to me at Donwolf.com.... Jay: No, send them to me; I’ll do it. Don: Oh, send them to Jay. Thank you. Send them to Jay. Get them right there and use those headlines to maximize the information that's here. Why not? Why not make use of it in a marketable way? Thank you. Man 6: I like that. Don: Thank you. Man 6: I like things that don't cost me anything. Particularly in terms of time. You get a lot of leverage out of something where the input was very cheap, and to paraphrase that, [unclear 14:29] slide. It’s not what you do, it's who you be. And I think the whole strategy of pre-eminence is about being. It's about who you decide to be and who you're customers are going to be - your clients are going to be for you. So I like - as far as choosing one thing here, I'd say it's the strat3egy of pre-eminence, and it's very low cost. It’s very high leverage. And it's all about who you be. Jay: Thanks. Speaking of which, as a gift, sometime between now and when you leave, I’m having the first chapter - the chapter on the strategy of pre-eminence from my book, which is a talked down, clarified, [unclear 15:10], reprint it so you can take it home. (Applause) No, no, I already told you, but I am doing it. Go ahead. Man 7: I’m just going to add to what Alan Coleman said about the 'Got a minutes.' That is a really profound strategy, because almost every company in this room manages by 'got a minute' meetings, but I want to add that that doesn’t work to say, 'Oh you can't meet with me,' unless you're having those weekly meetings, where you’re moving the company forward, so it’s sort of just - stretch it out a little better is that, have those weekly meetings like - most of my time management stuff came from working for CEO's of billion dollar company's, and you don’t just call up a guy who runs an $18 billion company and say, 'Hey, you got a minute?' You could call his secretary, you get on his calendar, you're well organized, you know what you want to talk about. You make every second count, and if you treat yourself like that, you'll make every second count, and you'll get twice as much done in the same day that you work now. I've already told you; you're not going to have to work 10 times harder. It's just about working ten times smarter.
Jay: Good. Unfortunately - so here's the deal. I got a couple of comments real quick. Number one; Troy [unclear 16:23] is going to be talking tomorrow. He's going to have real - are you here Troy? What’s the title? Yeah, the title you’re going to give me? How to know your clients better than they know themselves. And if you want to come to it; it's at 7:15; he's got a personality assessment you should take of yourself, which he'll hand out, and it'll be very useful, so get it on the way out. Number two; if you have a temporary name tag, talk to Tanya or Debbie. Number three; a lot of people said I don't want to you, and they haven't talked to Chet. Chet's here representing my interest and his interest; if you want to talk to him, he'll be around, because I have a dinner I’ve got to go to. And talk to him if you're large enough; if you got interesting enough stuff. And then what are we doing when we come back, Rick, because I don’t have the schedule? [Inaudible 17:12] Alan is going to do a really killer session on rethinking inside the box. I'm going to do some imposters. Then we're going to do Dave Wagonford, and Mac said if you're up for it - I got to find him if he's still up for it - he'd come back at 11 or 10:30 and do another section, and we'll see what we're going to do with some other people. Anyhow, anything else I missed? Okay, one thing. Dinner - I want each one of you - you're obligated - you had some incredible insight today didn’t you? At least one? Figure out what that one insight is , the action - you better share it with everyone around your table, and if you're - an hour and a quarter for dinner. Be back please. Thanks everybody. You guys were great on the panel. (Applause) Get over there quick. Thanks guys. Be back at 10:15.
Jay Abraham Mastermind Marketing 22
Jay: Ahem. Okay. (Whistles) How was the dinner? I’m - meals away. How was dinner? Did everyone share insights? Good deal. We got a couple more rounds for tight, and I hope you have energy because I want you to but before we start, I got a couple of things I want to go over. The first one is I have very - everyone who’s gone to my programs knows that basically I give away the store; I got nothing to sell. I don’t want to sell. I look for clients, a little bit - joint ventures, as I said. I’m going to do barter later, maybe you guys are a car dealer; I’ll trade you for a car. You got a hot sports car, I'll trade you for that, because I like stuff like that. But I got very little to sell. But I got a chance for you to be a guinea pig on something, and I’m going to tell you about it, I'm going to tell you why I’m doing it, I’m going to tell
you why you might want to do, I’m going to tell you why we’re doing it and then I want you to think about it. You met Marshall Thurber, who's like the brain incarnate. You met Edwin, who’s got this massively successful company. Well, they started this business called Ed Edge, and Ed Edge is what Marshal and Edwin do, and they find - they read 40 books a month, and they find the most important book and then Marshall analyzes it, and then Edwin and Marshall - and Edwin's wife get on the phone with the actual author, and they interview the begollies out of him or her for 90 minutes, and then they turn it into a CD and they send it to all the people. I started reading them and I just got blown away at how much better it was than a typical stupid summary, which you paid a - somebody $30,000 to do and it was rally superficial; because Marshall's got this incredible discriminating ability to analyze and that's why I persuaded them to give you, basically, 39 issues of them - the written analysis; which is what the CD-ROM is, but I said, 'You're missing the boat.' And the reason that they did it - they didn't do it for money, they did it because it gives them a chance to pick the minds of some of the greatest people in deep - not offcolour but off site type, where they can talk to them about very probing things and ask them penetrating questions for two hours and get incredibly - like, I was on the phone with the guy who do the Deviance Advantage, and what was the other one we did, Marshall? Where are you? [Unclear 2:32]. and I just - I find that it's stimulating me. So I love interviewing people, so I’ve become part of the interviewing process. They do it just because it's a pulse for them; they have direct access to the source, for hours, and I persuaded them that it would be so much more dimensional, if after you got the book - basically, their motto is, 'You got the book.' Then you got the analysis, then you got the interview on CD with the author, and you also got the analysis on CD, so you had it multi-modality; and I said, 'But there's one more dimension that's all important, from my vantage point, and that's what’s the action co-efficient?' And I said, 'If you give me these analysis to give to people, I'll do just 12,' and we only ended up with 5 because of - you got all 39 in your thing; but we did only five of them, because the printing constraints at the last minute. But I said, 'You'll see that if 650 read the analysis, you'll get 600 different insights,' not that any one of them is bad, but combining it - it's going to be fabulous. And I said, 'Why don't you take it to another dimension? Let's - I'll get involved, I’ll help market it, but let's have an additional concept where once a month, after they've gotten the book, after they've gotten the analysis, after they've listened to a probing, penetrating interview for 90 minutes or so with the actual author; then let’s have a 90 minute
conference call where we'll pick out actual members, and we'll take the most universal situations and the most unique - and we'll talk about applications, and we'll have reading room, and dialogue, and we'll also have everybody that has a business they want worked on; put it online and let all the people contribute perspectives.' And I got very excited about that because frankly, we want to grow from it. Not very profitable, but we're going to do it. Basically it's going to be, you get the book every month, you get the analysis of the book, you get the interview with the author on CD, you get the analysis on CD, and then I’m going to do with Marshall and Edwin and his wife, a really killer 90 minute group conference call with all the subscriber members; where we do hot seats and the like. It's going to be $75 a month, and we're going to do - if you want to be a guinea pig and you want to try it for three months, we'll let you try it and if it doesn't have value, you can cancel and send it back, and you can have your money back. You don't have to do it; we're going to take it in the outside market. We're doing it - not to make money. We'll probably get two, three thousand subscribers from it, but it's going to be an intimate group. We're doing it because we want: number one, to pick the minds of the authors. Number two: to get - I want - I do this kind of interactions; because I want to see the dynamics, I want…(audio missing) You can do it or not. We don't want you to sign up tonight; we want you to think about it. But if you want to do it, let us know about it tomorrow, because I got to set up some times for the call. Marshall, you got anything you want to say? Marshall? (Whistles) Marshall. When he's brilliant - the one thing is he's not as attention-deficit as I am, but it's a different kind. (Laughter). Smiles - now he's smiling. Is there anything you want to say? And we're not trying to sell you - we’re just trying to invite you to be a guinea pig for 90 days and help us perfect it, because once we have some testimonials and stuff, we're going to take it to the outside market at a higher price. But no-one's ever done this. They only have a superficial single analysis that somebody who doesn't have a clue about business, and isn’t on the front lines of capitalism, does; and it's tepid. Just show them what you do. Tell them what you do. Marshall: I need a mike. Jay: They didn't know you were going to do this. Where’s a mike? And I'm just excited about interacting with people, so I just get hot about the dynamic of all the different perspectives. Let me do it. Yeah, but that doesn’t mean - I can't turn my computer on. Go ahead.
Marshall: [Inaudible 1:11] ...to an author? Okay, so that's what this is about, originally. Jay: It's incredible. Marshall: And so the idea behind it, what Jay was saying, 'Listen, why don't we just...' Jay: Stop a minute. Why did you and Edwin decide to do this? To make a lot of money? Marshall: No, there's... Jay: there's no money in it. Marshall: No. I’ve been doing this for 20 years with my clients, and I just send out the books. I sent out the book with a summary, and I sent out eh summary without the book, because I didn't ethically - didn't feel it was appropriate. I had over 60 people I had every month getting these books, Edwin says 'Why don't we make this a business?' And I said, 'Well...' and he said, 'Because...' So we did. Even though the money isn't really there, we just did it because how would you like to be in front of a thousand executives every month? Jay: Marshall has a thousand Fortune - one thousand executives, and he sends it to them, and it's really neat. But - go ahead. Marshall: And so basically what happened is then we call up the author and say, 'We've got a thousand top executives across the country who this book is going to, along with the analysis. We were wondering if you would be willing to answer a few questions about your book?' Jay: How many said no? Marshall: No one said no. (Laughter) Jay: And I listened to them - it's killer. I mean, we were on it for two hours and the guy apologized for having to go back to Harvard to a meeting, because he wanted to be on it with us longer. [Unclear 2:20] Marshall: Right, and so the whole idea - if you look in there, there’s a little flow chart. Since I've been with Dr. Deming, it's hard to do things without a flow chart. So if you've got your little sheet there, real quickly look inside and you'll see how this goes together. Our idea was, we'll send it to you, the interview and all the stuff, and if it looks like it resonates with you as a person and you'd like to have your company featured, you'll submit a little - something to us that you'd like to be part of it.
Jay: To be a case study. Marshall: You’ll be a live case study, and Jay said we'll take the one that has the most universal appeal, and a couple of you that are way out on uniqueness, and then we'll make three cases and we will then interview you while everyone is listening. They'll get the case material up front. Now, if you don't get selected as a case study, and you want to be, you'll go online and you'll be available for peer review, and also we'll look at it too. Jay: Let me interpret. What he's saying is simple. What he's saying is we're going to basically do big time what we tried to do at the mike, and what we're going to do also is, for those people we don’t choose, you're going to have all the other subscribers and member have a chance to give you all their advice continuously, online. We frankly - we're less than after the insights, do you get this? We want the insights. We want enlightened people to give us the insights, because they're worth a fortune to us if we act on them. Go ahead. Marshall: So ultimately the idea was you get a chance to get as close as you can to their book and have it practically applied, with some follow-up, hopefully, and then we’ll be able to see how effective it is. Because what's the value of one idea implemented? Jay: Implemented; key. Marshall: Implemented. Jay: But that's the whole key. The key is not how great the book is. The key is me and they, but probably me more, in the beginning, on the phone, saying 'Okay, you read it. What's the action co-efficient? What are you going to do? What do you think it means to you? What’s the big insight?' And taking it to a dimension that no-body does. And then us being able to ask the author questions to die for. I mean, we ask some good questions, didn’t we. Marshall: Absolutely, so if you want to look and see what you'd get in something like this here: As the future captures you, you get the summary, and you'll see the CDs are here. Jay: And Marshall just asks away at the authors, and they all say, 'Sure, sure, sure, sure, sure.' Yes? [Inaudible comment from audience member 4:26] We're going to start the calls after we start the service. (Laughter) Marshall: A month....
Jay: No, it’ll be monthly; every month. But a month after you get the stuff. [Inaudible comment from audience member] Oh, that's what I said. I’ve got to find out how many of you guys - if there's enough here I'll do special calls with you guys. It'll be - it doesn't matter, because if you're not on it, you'll get the tape and the CD-ROM. Marshall: You'll get the tape each month afterwards, if you're on... Jay: But it's going to be the most - you’ll tell us, because if enough people want to do it, I’ll take a vote on - like I have everything else I do, and say, 'Okay, what is the most of you - the most available,' and we'll try to be the most accommodating to the maximum number of you. It might be an evening, it might be an afternoon, it might be a weekday; I don't know. But we're pretty flexible to the consensus of th3e masses. I don't know yet. We're just basically - they got this service they do just for the heck of it; they don't make a lot of money on it; they just do it, and Marshall does it for his own intellectual well-being, and also to really blow the minds of his clients; that he goes through 40 books to find one and then he's not been turned down by an author and he asks more penetrating questions, and it's really amazing. And I said, 'That's cool, but the ultimate is taking it to action. Is having a bunch of people show you what different things they got out of it and then forcing them to say how and what they’ll do to apply it and having them help each other
Jay Abraham Mastermind Marketing 23 Jay: I would suggest you consider thinking about it a little. I know it's late now, but I don't sense a lot of passion because Alan is basically very analytical and scientific in saying “Hey guys, here's how you make a lot of money easily and safely right in your own backyard,” I think, isn't it? Speaker: And we'll be back. Jay: And we'll be back again. Thanks a lot. Thanks Alan. Yes sir. (Audience applause) Speaker: Given the chance, one thing I would like to actually validate. Jay: What? Speaker: I'd like to validate what Alan does. I've listened to for the last 12 years... Jay: And it has changed your life?
Speaker: Absolutely, but what Alan does what we've been doing for the last three years. Jay: Does it work? Speaker: Yeah, phenomenally, it has allowed us to create a structure to now do this layering that you discussed in terms of force multipliers. We've been able to quantify hundreds of thousands of dollars for individuals and millions of dollars for our company based on an implementation program that's very similar to this, but it's kind of like hammer and hammer. How did we get all these ideas of Jay in your business and it's very very similar to what you've been doing and we've been... Jay: It does not make sense? Speaker: Absolutely. It's a reflection of what we've (unclear 01:08) Jay: (Unclear 01:07) final version but that's pretty, pretty close, good thanks. Yeah, it's interesting. I was at dinner with a group of colleagues and we were talking about the wonderment of entrepreneurs large and small also, the challenges and that most entrepreneurs in the world and I'm not ascribing this to you, but in might hit home, tend to be so tactical, and they can't really appreciate things that aren't exciting or aren't instant gratification and that's not a weakness, but that's an area of your being that you would benefit from fortifying, stated a little bit politely, from fortifying because I think that that's a weakness. I think it's an area that you guys, I think that we entrepreneurs like instant gratification and excitement. We don't always have the discrimination to seeing the longterm. It's like Ted and I have worked a lot of his programs with large, medium, smaller companies. Twenty million, twenty five, we tried to do with one million and (unclear 02:07 ) see what happens we found that they didn't have the disciple to go the distance, to stick with it period long. We just wanted to see what would happen. We did like twenty of them at a time in group and we were tragically sad because over the long (unclear 02:19 ) engineer the kind of growth to the higher level you need and you've got to decide if just trying to live past pay day or your trying to engineer the kind of growth levels that will become sustaining and systematic and I'm not trying to be, I don't want to castigate you or reprimand you but really respect for loving and contributing even late at night, but I would challenge you if you're not turned on and to think about some of the power and elegance, simplistic and seemingly understate areas because that's where the real wealth comes from most often. Okay, David where are you?
David:
Right here.
Jay: Okay, I need...I'm sorry, where did you come from? You just appeared out of nowhere. You're smiling. You're happy about something! Lady: I'm so excited! Is that an (unclear 03:07) list? Is that enough for us to get excited? Jay: Yeah. Lady: Da! That's the list. It's the new name. Jay: That's good. Thank you. Okay. I need one to two minutes. Stand up for two minutes because I've got something so intellectually stimulating, but we need some music for two minutes. Just give us a little energy here, something fast for two minutes and then turn it off. Give us a little energy. Two minutes and then turn it off and David, come up here. We're going to learn about barter. We're going to learn about innovative thinking, we're going to break our paradigms. We're going to blow our minds. We're going to rock our conceptional world. Oh good! (Unclear 00:00) have fun; it's going to be cool. Fun, fun, fun. Okay, so it's 1970 something. What would it be? David:
73.
Jay: 73. I'm this very, very ambitious, very fanatic entrepreneur kid who has had a succession of relationships with entrepreneurs who wouldn't give me a salary but would give me a chair in the corner of their office and a chance to do stuff strictly on performance and I could either eat or starve based on my performance and interestingly I ended up in a place called Holiday Magazine which rolled by the Saturday evening pros Curtis publishing, remember that? David:
Yes I do.
Jay: So I go in there looking for an opportunity, I'll do anything because I'm hungry and they had traded for the most eclectic array of items, didn't they? They were like five or six hundred thousand dollar worth of travel to weird places nobody wanted to go or airline tickets to one location that you can only get to on a Sunday night and some other good stuff. Captain Mike's (unclear 01:19). David:
Terrible.
Jay: Anyhow, so wanted the cash converted and they didn't know what to do so I got into (unclear 01:25) figuring out and somehow we connected and you bought it...
David:
Right.
Jay: And the first thing he taught me was how to buy really astutely. Dave is a master of barter. David (unclear 01:38) has probably traded, how many hundreds and millions of dollars have you (unclear 01:42) David:
Five or six hundred million.
Jay: Five or six hundred million with the barter. He's had his clients big companies like... David:
Carnival Cruise line for seven years.
Jay: Carnival Cruise, who else? David:
Right. DHL.
Jay: DHL, who else? David:
Western Hotel.
Jay: Western Hotel, who else? David:
Sheraton.
Jay: Sheraton, anybody else? Chrysler, Mazda, anybody else? David:
Right, right.
Jay: Yamaha. David:
Yamaha motorcycles.
Jay: Anybody else? David:
Kawasaki.
Jay: Kawasaki, anybody else? David:
About 3000 radio and television stations.
Jay: Okay, so he's been around the block. So back at the (unclear 02:14) I got $500,000 worth of really cool stuff and I'm going to get out 10% so I think well god at least worth 490 or 480,000. So I call around and can't get an offer and Dave says, yeah I'll buy it and what did you offer like 25 grand? David: Well I overnight Jay a check for 10 cents on the dollar. Jay: Yeah, and he said, it's always good for three days, (unclear 02:37) good for three days and he said, show (unclear0:02:40 track2), tear it up,
send it back or whatever. And I said, they would never do this and he said, well its okay. David: I gave an envelope with a stamp on it. I said if they don't want it that's my offer. Just mail it back, no hard feelings. It's really hard to send back money. Jay: Yeah, and that was my first education. So then I was fascinated because he was so, he was educating me while he was negotiating with me which was very gracious. So we fast forward. I moved to Santa Barbara couple of years later. David trades for Peter Lawford, (unclear 03:18) it was Edward....was that it? David: Louis (unclear 03:26) Jay: (Unclear 03:26) and Metro Goldwyn Mayer's house on the beach and I'm there and he's got like an acre on the sand. He's got three stories and an elevator he traded for, he traded for furniture and he's paying the guy in (unclear 03:35) and I'm thinking, he knows something I want to learn, because he's having fun and he's got; he takes me to his house and he's got in one room you know like 500 guitars and the other room he's got like 150 watches and in another room he's got certificates for all these things and what ensued as mentor-ship of sorts, I had no money, I was a pauper. I drive Sunday to meet him. His wife thought he was crazy to give me an hour or two of really wonderful, wonderful mentoring and then I was broke, he gave me a certificate for dinner for my wife and family on the way home which is was very gracious which we appreciated and we've stayed friends and we've stayed, I hope mutual admirers. I just think he is the brightest most inventive mind I've ever seen and I think barter is a metaphor for thinking non-layer whether you trade or not. I've tradedwhen you bill $5000 an hour and it's $40,000 a day and it's $5000 for a home study or $25,000 for a seat in a live main program, you can trade pretty; I think I've done-I've been a pretty good student, don't you think? David:
I sold Jay one of his Ferrari's by the way.
Jay: Yeah he did, he did. But David traded for it. I bought it, but David traded for it. It was a nice Ferrari. He tried to sell me a (unclear 01:12) and I just didn't want it. What are some of the interesting things you've traded for me? David:
Oh well, I tend to over trade sometimes.
Jay: It's a sickness, it's a sickness. We love to trade, like I said, a guy may want to trade me a car here and I'll do more for them if they paid me cash because I just love to trade, don't we?
David: Yeah, I'm not supposed to sell anything here but I will tell you I have 4000 watches in my house. I can't get to the washer or the dryer. Jay: It's because his house is full of watches. David: Jay.
They're to the ceiling. Anyone here is a watch buyer, contact
Jay: You have any guitars. How many guitars did you have then? David:
16,000 guitars.
Jay: When you traded for Mazda, how many Mazda did you get? David:
1,100 Mazda.
Jay: When you did Chryslers. How many Chryslers did you get? David:
We didn't have to take possession of all the Mazda.
Jay: How many Chryslers did you trade for? David:
1,000 Chryslers.
Jay: I mean, it's like, I mean you did DHL. How much did you trade for? David:
$6 million worth of DHL.
Jay: But David, tell me, I traded with $3 million of the radio advertising on (unclear 0:02:10track3). David: Right. Jay: It was pretty good. So over the years, I've realized that barter is not just a fun, fun and exciting sort of aside, it's a profit center. It's a way for companies to dramatically increase their margins, to dramatically expand their profitability to give themselves almost unlimited buying power, to be able to tremendously grow and expand your quality of life, your business. I thought David, it would be fun for a just a little while to sort of go through some of the various ways. You remember, because I don't have any of my notes. You got any? David:
Oh yeah, I have some notes.
Jay: So, what I'd like you to do is give them a little soliloquy because I'm tired tonight and you probably, I mean poor David, I want to get your mind exposed to so much (unclear 03:02)as far as barter fun, barter trade and barter, my brain is tired tonight, (unclear 03:08 ) trades, who else trades, who has ever traded for anything?
Audience: I've traded for (unclear 03:14) the doctor. Jay: Okay, that's pretty impressive. You all should consider trade. Let me ask you this question before, if you have any; does anybody sell a product or service that has any margin in it? Only a few of you? Okay. So it's like I am a car dealer (unclear 03:30) biggest Mercedes dealer they do $400 million a year, friends of mine. I was talking the other day and said, you make a lot of money? And they said, well we make good, let's say they make 3 to 4%. I said, well, of the remaining 97% that's payables, how much are the kind of you know, are service type expenses. They're like $50 million dollars. Well, I said, well, what's the margin on a Mercedes? 15%. Well if you just traded that, if you just traded Mercedes instead of paying cash, you would be making like four times as much money, oh but we don't trade. And I said, yeah, but maybe you should and then I said because a Mercedes is so priced, it's better than cash, you can probably trade two to one. We don't trade. I said you could probably even trade a four year old lease, at the end, take it back and so you're getting all the stuff up now you're paying for it about 10 cents on the dollar and you're getting it almost interest free. We don't trade. We don't trade. Give him a little quick (unclear 04:30). David: Exactly what he said. A lot of people; trading of course predates money. The transaction is exactly the same as money except that you don't pay with money, it's the only difference. A trade is a sail. It's additional business. If you make a trade deal and get something you can use, something you need, so something instead of money. Jay: Or something you want. David:
Or something you want.
Jay: Where you wouldn't have the money or wouldn't allow yourself to buy it on your own. David: The phrase due bill, how many have heard the phrase ‘due bill’ before? Jay: Due bill. David:
You're probably from New York.
Audience: Yes. David: New York is where the phrase started in the 1920's during the crash, nobody could pay the bill. The bill was due. The favor would come around the restaurant who is now broke and say, look, the bill's due, give me a ledger, you owe us $400. I'll eat here. That's how the due bill
started. If you go to a person who was alive during that time and use the word due bill, he starts to shake and shiver. So we don't use that word anymore. So New York, still to this day, totally understands trading, barter, due bills. As you go west, they understand less, not too much here and we have a company in Hawaii, they don't know what we're talking about in Hawaii. The farther west you go, the less they understand. Yes sir? Audience: Can I give a real live example that happened to me on Thursday? David: Yeah, you want to go with the mike there? Trading is a way to take your product that isn't selling, gets rid of it at full retail and advertise the product that is selling. Jay: Convert it some other form of product or service you need. Now David, I'm going to modify and embellish and challenge his comments because he lives predominately in a world of getting bigger companies advertising. They'll trade their goods or services for advertising. That's the easiest and the best and he'll explain it to you why, but I've helped, just clients, not as a service provider, I've just helped clients do millions and millions and millions of dollars by figuring out things we needed and trading either our products or services for that or triangulating it to somebody else who wanted what we wanted using what we got for them to pay what they wanted and with all the debt settled, we'd save 30, 40, 50, 70% or we'd get cash we never would have had or both. Marvin you want to talk real quick? Marvin: Yeah, I was looking for some radio advertising in the States. I spoke to a guy in Chicago who wasn't, didn't have any time to sell, but he said there was a fellow who had clear channel to sell in Florida. So I phoned him and he said he had $20,000 worth of clear channel advertising open, open advertising, anytime I wanted on any clear channel station in US and there are just hundreds of them and he (unclear 07:22)20,000 barter blocks. So he said, what do you have to trade. I said, well, I'll give you 20%; I'll trade 20% of the value of the prescriptions that I needed customers that are on barter that would buy from me. So I got $20,000 worth of advertising and I haven't paid anything yet and if people order the prescriptions from me, I'll still make about 20% and I'll...using the barter. Jay: You didn't do a trade. You really did a PI. David: Yeah, that's called a PI, percentage inquiry.
Jay: But that's-what you did was good, because it's a contingent type of a way to control a lot of advertising, if it doesn't work, it'll not cost you, but it's not really a trade. David: Right, but that's... Jay: Really, it's one step before. David: That's not too good for the radio station, but real good for the buyer because, the radio station doesn't ever believe you're getting the right count... Jay: They won't get any money for it but they've got unsold time so it's doesn't cost him anything. Continue on about the insights. I'm sorry. David: Okay. One of the things about trading that over the years I've learned is people either get it right away or they don't ever get it. The first account I called on, I started New Orleans was a restaurant, I went to the television station, I said, who owes you money? They said, this restaurant owes us $4000. I said would you take $2000 for the bill? They said, yes. So I went out to the restaurant and I said, Mr. P, you owe the station $4000 you can't pay, he said, that's right. I said, I'll take $4000 worth of food if you'll sign these little gift certificates and I'll go pay your bill. He looked at the gift certificate and he said, when they eat, who pays for the meal? I said, let me start over. (Laughter) You owe the television station...and we went through it three times, didn't have a clue. Didn't know what I was talking about. Six months later, the restaurant's gone. They sued him and the roof fell in. So I almost have tried to stop, trying to educate people, but I think almost everybody in this room probably understands it's simpler than money and nobody looks for the catch. What's the catch? There isn't any catch. Instead of...Mike is here from the fortune cookie company. I traded him 1,200 fortune cookies for a wrist watch that's he's probably wearing tonight. Are you here Mike? Jay: Mike, where's Mike? You're wearing your wrist watch? It works still, doesn't it? (Laughter) David: So, I got fortune cookies which I can use for Christmas gifts, Mike got a wrist watch. It can benefit both parties. Also if you are a dentist or a lawyer, you have extra hours. So you can take those extra hours under your full rate, trade that for something you need and can use or want. That's terrific, you've increased your business rather than
reading Time magazine, you've worked a few extra hours, you've got something. Jay: My mother-in-law has a $25,000 new face that a plastic surgeon did for her because I helped him improve his business. I have a credit for another dentist in Chicago anytime I want for $25,000 worth of cosmetic dental service for anybody that I want. It's pretty cool thing. It's a pretty cool thing. David: We bought a radio station in Carmel Valley that was in trouble and it needed a lot on engineering work. I hired an engineer in Middle of Texas to come over and do the work which was extensive. I traded him for two breast enlargements for his wife with a plastic surgeon in San Francisco. She got the breasts, I got the work, he got happy! (Laughter) Jay: What did the plastic surgeon get, advertising? David: The plastic surgeon was an advertiser, right. So once you get trade like I have the watches, I've got to do something with them and... Jay: You end up with one or two things, you either trade for products or services you would end up using in the course of business or you trade and you got it. You got to ultimately what’s call cash convert or you’re not the smartest dude in the valley. David: Right, if you take radio or television, an unsold spot evaporates tonight. It just evaporated at midnight. Jay: You don't use it today. David: Every hotel room that was empty here, evaporated tonight. Jay: Why don't you tell us a trade. I'm just going to interpret, it's like this hotel has, let's call it 700 rooms. It's filled probably because of you guys. Tuesday, it'll be empty, probably, don't you think? David:
Oh there is 300 empty.
Jay: There is 300 empty. Those 300 have a rack value, rack rate of, lets call it $150 a piece. $45,000 worth of value evaporates everyday if they don't fill it, but if they trade it, whether it's used or not, they put a time limit on it, it's very interesting, because it really is used (unclear 12:12) even if it's not exercise, does that make sense? David: Right, right. One of Jay's customers who has been here a couple of times, his best friend was a advertising manager of Microsoft
and he called me a few years ago. I don't think I've ever told you this story. Jay: No. David: We spent a year trying to get Microsoft to trade and the fear of the advertising agency was, just to give you an idea, I said, all we'll trade is the office package, because it was expensive. I think it was $800 at that time. Jay: Cost him like what? David:
$2.50 cents.
Jay: So then, they're buying advertising and writing a check for cash. So every time... David: I was going to get all radio and television stations take the Microsoft packages, give them to clients, use themselves... Jay: It would have been like a 98% discount on their advertising. David: Yeah. The fear was and the marketing director said this. He said, ‘if Bill Gates ever finds out he can buy $800 worth of advertising for $2.50 cents, we're finished. He won't spend any more money.’ That isn't totally true but he never did find out. We sent emails to Boomer who is now the president, this went on for a year. Jay: So back to the ranch, because David is neither attention deficit, but he's letting me guide tonight and it's been a long day. You guys, there's like 14 or 15 really cool ways you can use barter. Do you have a list of them? David: Okay. One way is to get cash because if you barter for something that; everything is salable. If you barter for something and then turn it out to cash, there's a magazine in Arizona that trades in about every six months. He calls us like Jay did and we buy his excess trade and it can be hotels all over the country. It makes a couple of payrolls. Jay: That's about a third of advertising you'll see in travel type publications, is not been paid for, it's been traded. You know, it's like, I just got, I have in my office, I have 10 round trip vouchers on South West. This is funny, here is how it happened, a concessionaire from South West gets partially paid in, South West pays in vouchers. Okay, I didn't know that, did you? David: No, I didn't know that.
Jay: That's pretty nice and they (unclear 0:00:40 track 4) preemptive, they're really preemptive, so they really treat it like cash. He wanted a $2000 home study. He called and said, I've got $2000 worth of vouchers, you want to trade? I said, sure, a home study cost me, not this home study, no no.... (Laughter) He only wanted the tape. This home study cost me probably $1,000, but the old ones only cost me 30, 40, the one in 95 because I really didn't have a lot of bonus. I just had the tapes. I said, sure send you the tapes. We spent $30 sending the tapes. He got a $2,000 set, because that's what I charged him for, he sent me the vouchers, I'm sitting in my office, Terry are you here? I got $2,000 worth of South West vouchers, can use anytime, they're pre-emptible. I don't really want them because I don't like to fly South West, I don't like to stand in line, but... David:
I'll buy them from you.
Jay: David will buy them from me at some.....what's the discount? David:
Sold, I'm going to give you a watch!
(Laughter) Jay: Speaking of which, where are my dive watches? That's good. But anyhow, the point is, it's really fun, go ahead. David: The trade clubs is another way you can trade. How many in here are in a trade club or have been in a trade club? Yeah, we've got quite a few here. There are several big ones and they're very healthy right now. As business gets slow, our business gets good and as the economy comes down, we look to trade with the company that's in trouble but not going under. Jay: And who have enough ethics and integrity, they'll treat the trade like cash. David: Right. There's a club called (unclear 02:16) which is in Chicago, Long Island and San Francisco. They've got 30,000 members, when you're in that club, you can use your credit at any of those places. There's a club in Florida called ‘The Exchange.’ It's on its 30th year. There is 2500 members in Orlando and Tampa. There are 45 hotels in Orlando, 60 restaurants. There's a club in Chicago that's got at least 2 or 3 thousand members. They have so many restaurants, that they'll say what hotel are you in, well there's one right across the street, and they'll say, what will you have?
Jay: Who has my book? Who has my copy of my book? Somebody has signed one for it, who's got it right here with them? Has anybody got my book with them here? There was a gentleman who let me sign his book, he might have gone to bed, but, anybody got it here? No? Because I have all the list of all the barter ways, do you have it here? You've got it? Who's got it? We've got a list of all the different ways you can trade. You have got it on you? David: I've got it somewhere here. ITEX is another big club which Jay has been prominent in. Business Exchange International is probably the oldest club. It's headquartered in Burbank. It's all over the country, all over the world in fact, but these clubs are good as long as you don't let them get too far ahead of you. Another way to trade is called a closed end trade, where you want a carpet in your house and he wants a new set of dentures and it’s closed down. Nobody owes anybody at the end. It's like I sell you a service and you write me a check. Closed down. You shouldn't trade for anything that you don't really need. Don’t' trade just to be trading. I have that problem. (Laughter) Jay: It's like a sickness (unclear 04:05) it’s like alcoholism. David: I'm a selloholic. I don't think I ever told you this one either. A selloholic, I have to have-that's why I traded for some fortune cookies. We were told don't sell anything. I didn't sell anything; I traded a watch for some fortune cookies. I feel good now, because I made the transaction today. I got the fortune cookies. Jay: 24 hours worth of relief. David: Right. I'm relieved so I'm thinking about probably others here who are selloholics. I'm thinking about starting a club, a 12 step club where you'll be assigned a buddy and when you have this desire to sell something, he'll call you up and pretend to buy no matter where you are. (Laughter) Jay: So, do you have the 12 ways or the 14 ways, do have the list on you, because, you guys have to understand, barter can do so many neat things for you besides just improving your margins, reducing your expenses, giving you more clients. You've got the book? Audience: Yeah, I just want to ask a question because there's a company that wants to do business with me and the fee is $10,000. They say we have $2,500; will you take $7,500 in our unique printing? I'm inclined to
look for ways to do it but I remember listening to the tapes, and Jay says all I got was Christmas and I got these bill boards and you know, I've read that over and over again, my mind goes tilt. Jay: What's the question? Audience: My question is give me a few suggestions of how I can really creatively triangulate that credit. Jay: Can I make a suggestion first? It's late and we've got a tough day ahead...let's try to get...I want him to see at least 10 of these ways to use barter first, because the one is basically to reduce your cost of payables, your expenses, right? David: Or you can use it to pay a bill. You can get your lawyer to take some barter. We have some lawyer on barter. You can use it to pay the bills that you would have normally. In Tampa, we have three radio stations; we bartered our phone bill completely with a new phone company out of Dallas. The bartered is a T1 line, internet and everything... Jay: And they get advertising? David: With Verizon, the phone company, we bartered $165,000 worth of yellow pages ad. I have a full page yellow page ad, 50 yellow pages all throughout West Florida. This is promotion. Barter is a way to promote your business. Barter can be a way to get anything you need if you’re in a large trade club; it's like the yellow pages. You can look down the list and here are the dentists, here are the plumbers, here are the electricians, here are the carpet dealers, you call up and say I'm a member of The Exchange and you trade. The members pay approximately 10% cash for each month based on what they spend. You eat $100 dinner; you pay $10 at the end of the month. You can use it to pay employees. You can have employees work partly on barter. Question I would have for you, is you have a $10,000 service that you're going to provide? Jay: What does it cost him to... David:
What does it cost you to do that?
Audience: Just thought and time. David: Well you've got to take the $2,500 and the printing even if you don't want the printing. Audience: Just give me some suggestions. What to do with the $7500 of printing.
David: You can put it into a trade club and draw on anything they got. Trade clubs can always use more printing. Or go to your favorite restaurant, give them the printing and get some $7500 in food. Audience: Okay we have a guy here that's...and it’s Canadian Dollars which go a long way. David:
Then I wouldn't deal with them at all.
(Laughter) Audience: You have a Rolex watch? David: Yes sir, the story? Yeah. I haven't paid for anything that I've brought with me tonight. I got this watch 22 years ago in Honolulu. I gave him $4,400 worth of KITV television time. Jay: You traded time? David: To a pawn shop. Pawn shop gave me the watch; I gave him $4,400 worth of TV time that he used to advertise his pawn shop. Jay: Go ahead; do you want to ask a question? Audience: The other party, the TV people, what did they get? David:
I gave them bumper stickers and two cars. Two leased cars.
Jay: Lease cars. David: I gave the station that carries out (unclear 08:20), I gave $65,000 pairs of sunglasses and we put (unclear 08:25) letters on the face of the sunglasses. Jay: Nobody's got a copy of my book? Nobody's got in their possession of it right now, here at the table a copy of my barter book? I mean my book on how to get everything you can? Somebody brought it up and let me sign, nobody? Okay. Next time I'll do it. We have a list. So one of them is how do you grow more clients? David: Well you can grow more clients because some clients can barter with you but they can't give you cash. We obviously, when we have a sale staff that goes out and tries to sell advertising and they don't go out and try to barter but (unclear 09:03) I'm really short of money and it's something we can use, we take it. I had an old lion person, we bought a radio station at Monterey, California where we traded the down payment of furniture for the owner's lavish condo in Mexico and the old line manager didn't understand trade. I kept him on and I said, well we're not
looking for trade, but if you bump into somebody that asks you if you can trade, and you know it's something we can use, something good, take it. Otherwise, if you think it might not be any good, call me. So I'm in New York and I got a call from him and he says, ‘I met a client and he wants to trade and I don't know if what he's going to give us is any good.’ And I say, ‘what is it?’ He said, ‘it's a supermarket.’ (Laughter) And I said...’anything on the store.’ So when I came back, I said sign them up. He signed them up for a couple thousand dollars. I came back and I said now, sell it. He said, to who? I said, you've got to find somebody that eats! So I said, go get your check book and come back in. He came back with a check book. I said; write a check KNRY radio $1,000. I said, you now own $2,000 worth of food. Take it home to your wife. You're a hero. I thought, now he's got it. Two months later, he's out making calls again and I get another call because he has a trade that might not be any good and he says, ‘I have a guy that wants to trade a lot. He wants to buy our sports programming, but he doesn't want to give us money. He wants to give us trade.’ I said, what does he sell? He said Shell gasoline. I said, okay, of course, you know gasoline. I said, ‘sell the gasoline for 25 cents a gallon less than he sells it to people we know.’ We don't have advertised it, but we call our clients and first he said, who would I sell gasoline to? I said there's got to be somebody that's got a car. (Laughter) He never to this date doesn't understand. Jay: Tell about the origins of home shopping. David: Oh, Bud Paxson of home shopping who owns Paxson ad TV, he started the home shopping network on a small radio station. Jay: It was a friend of yours? David: I know him for 35 years in fact, I traded him a motor home when he had a little radio station in Sarasota and owed me $4,000 and he could only $400 a month, but he would put me in a lavish beach front resort the weekend the time it was to pay the $400. So I would drive to Sarasota 12 times and get my $400 and bought a $1,000 stay in there in the lavish resort. He went out of business in Sarasota, turned off the radio station. He bought a little radio station in Dunedin, Florida which is near Clear Water, was failing with that, couldn't make the payroll, people were screaming at him and he went out and he traded 400 electric can openers
with a manufacturer and then at the trunk of his car, and he takes them down to a hardware stores, sells them, gets the money, goes back and makes the payroll, the station is saved now, temporarily. So at that time, I had Carnival Cruise. So he said, let me advertise Carnival Cruise like crazy and I'll sell these cruises on the air. So he'd go on the air and say, I have a $500 cruise, who will give me $200. Some guy would say I will give you 200; he'd give him 24 hours to come down to the station with the money. In the meantime, a travel agent would hear it, call Carnival and say, have you gone mad? They would call me and say, who is this idiot Bud Paxson giving away our cruises? So I'd have to pull away from him, but he started auctioning stuff on the radio. Small radio station, survived, found a money man Roy Spare and said let's try it on cable television. He tried it on one channel of cable and it worked, they were making money but everybody said, well that still isn't any good because there's a lot of old people in Florida, that's the only reason it's working. Spare bought enough link and the rest is history. There are people in Clear Water that have put in $10,000 that turned that into a $2 million ocean front house. His stock went up faster than Xerox. Something like unsplit, something like 10 to 400 dollars in a period of year and a half. He sold out, walked out with $250 million instead of buying radio stations, he bought 46 radio stations in Florida for $150 million and then here came Clear channel. You all know who Clear channel is. They have 20% of all the stations in the country now. They have 1800 stations and they're about to get more and they said, how much do you want for these stations; you've got a 156 million at? He added $500 million to the asking price, he'd only had them one year and they wrote him a check. He lives in a house in Palm Beach that he said is so big, he has rooms that he only visits on Christmas. (Laughter) Jay: Tell them about your experience with Chrysler, with Mazda, with DHL. David: Chrysler Corporation, the last year that Chrysler built the incredibly long, oh, this is the book. Jay: It's got all your list of things you need. David:
Okay.
Jay: You can go through them.
David: Chrysler Corporation had 10,000 cars that they couldn't sell and they built them anyway to keep the factory going. This was in the early 70's and a friend of mine in New York, John Small called them during their Christmas party and the marketing director came out and said, do you want to trade? The man's looking at 10,000 cars on this field covered with snow, starting to rust, he said, do I want to trade? How fast can you get here? He flew out there and made the trade with Chrysler. So we traded the imperials which was car about as long as a Grey hound bus. Jay: That is terrible. David: Yeah, when people, they just weren't buying them. They got about 7 or 8 miles to a gallon. But the radio station or the television station or the newspaper didn't care because it was going to be a prize. They are going to give away a new Chrysler. They didn't care who was orange and as long as it was, it didn't matter. We traded 1,100 cars in six weeks, but even then, the ad agency tricked it up a little bit by saying we don't want a TV station unless they'll take 35 cars. So I flew out to Hawaii. The rest of the country was (unclear 01:00) Hawaii, I flew to Hawaii and I went. There were two television stations that I could give 35 cars to. I went to the first one which was the NBC station owned by a father and son. I said, I'm here with 35 cars. I'm going to give you the pink slips today, that's like $500,000 worth of cars, even at those prices, and he said, I couldn't use 35 cars and I said why not, and he said, well it's just me and my son, I could use 2 cars. (Laughter) Now these are cars that he's going to get free. If I was going to give you 35 cars... Jay: Its unsold advertising. David: Couldn't you figure out something to do with them? So I walked out and I was also told in a little station (unclear 01:40) go out there and give the Chinese owner two cars, because the dealer wanted them. So I went out, I had all the brochures. I'm here to give you two cars and the guy fell asleep in his chair. This was ten in the morning. So now I've made two calls in Hawaii, the one guy wont' take-I can't give him away, the other guy falls asleep. So I go to channel 9 which is Cecil Heftel who now owns a huge two big stations here in LA, but at that time he owned channel 9 and out there I'm talking to the girl out front and I hear him hear cars, he says, cars, he comes running out. How many cars can I have? I said 35. He said, can I have milk trucks? (Laughter)
I said, why do you want milk trucks? He says I own the foremost dairy. I said let me call Chrysler. I called the marketing director of Chrysler, can he have milk trucks? Yeah I don't care, give him milk trucks. (Laughter) He calls a limo to take me back to the hotel. My commission was 20% of the cars. So now I own 7 cars which I was selling, $10,000 for $6000. Not hard, anybody I called bought one. So I'm sitting back at my trade out at the Royal Wine Hotel, and I said, my god, I just made $42,000 in 15 minutes. Just had to sell these cars. We sold 1,100 cars in six weeks. Jay: Tell them about Mazda. David: Mazda, I'm driving along in Long Beach when I moved out here and I see all these Mazdas, Mazda had a car called the Cosmo which had the first wankel engine. It was awful. It leaked oil, I got 7 miles to a gallon. No dealer would touch it, so the field is full of these wankel engines, it didn't work. Mazda had a big office out here and I went to the Asians at the office and I showed them the contracts with Chrysler, look what we did, we can do the same thing for you. And so he said come back Monday. So I came back Monday and they had a consensus meeting and he said, we like it but we can't do it. He said if we trade the car, I used the word trade, mistake, if we trade these cars, we'll be losing face with Toyota and Nissan which was then called (unclear 04:04) and so I said, oh, lost another one. I'm starting to drive back, and I thought, wait a minute, I got it. I turned around and went back. They thought I'd lost my sun glasses, I'm back so fast. I said forget the trade, I want to buy these cars. Buy? They've been trying to sell them for two years. I said but I want to pay you with radio or television time. Oh that's okay. (Laughter) We made the deal. Jay: What about DHL? David:
DHL was trying to.
Audience: What did you do with the Mazda? David: We gave them to stations and the ones we ended up with, we sold. My lawyer drove a Mazda, my accountant drove a Mazda. (Laughter) Jay: (Unclear 04:46) Two things. What business are you in?
Audience: Medical (unclear 04:52) Jay: If you had employees and they wanted a raise, I'll tell you what, I won't give you a raise, but I'll give you a brand new Mazda. Or if you had, if it was ethical, and you said okay if you buy $100,000 supplies, you get a brand new Mazda, there is all kinds of inventive way to use it. David: Stations use it that way too. In addition to giving it away, they'll go to Budweiser and say, give us a 52 week contract on the dodgers and we'll throw in a Mazda and give away. Jay: Which you can give away on the air. David: And they get the order instead of the other stations. So it's a tie breaker. Jay: So talk about DHL. David: Oh DHL had 70% of the international market and only 1 or 2% of the local market and they needed money to buy a television schedule and they were short of money. So I negotiated with them that I would buy them $2.5 million worth of television time and I get $5 million worth of DHL and I couldn't sell it to any accounts that they had, but I said give me the 100 accounts that federal has that piss you off and they gave me that list and up at the top was 3M company and Dean Witter and we sold $650 worth to Dean Witter. We sold all together $5.8 million in trade. I don't know if we made any money. This deal was so complicated, I'm not sure and I didn't want to know. If you've ever made a deal, it was so complex. You don't really want to know. It's like when you buy a car, you don't want to know what the neighbor paid. Jay: Or what you’re real (unclear 01:03) cost you. David:
Yeah, somethings you don't want to figure out.
Jay: But, when it was done, the point was after the trade was done, most of the accounts that started on trade ended up... David: Dean Witter is out to this day, because it's really complicated for a big account. They had to give them a good deal but there's tremendous price cutting in that business which I didn't know going into it. So my trade wasn't worth as much as I thought because of the way they cut prices. They were selling a $15, federal was selling a $15 letter to 3M company for $5 and I couldn't get down to that. Audience: What about taxes?
David: Trade transactions exactly the same. It's a transaction. As long as you don't use the trade personally, it's not taxable, it's expense. If you carpet your business, that's your capital expense. Jay: (unclear 01:54) when I do things (unclear 01:57) I file a barter 1099. David:
Right.
Jay: I value it at what it would be if I were going to sell it. David: You don't have to evaluate 100%. Audience: Does it trigger (unclear 02:05). Jay: (unclear 02:05) auction or something. David:
Yeah like a quarter.
Jay: So I do value, because I wouldn't pay that retail price. Audience: Does it trigger ISS audits? Jay: Pardon? Audience: Does it trigger ISS auidts? Jay: I'm the only client in my (unclear 02:08) that files. I don't want to ever have anything that I want to do with document because I don't want my... David: We turn everything to cash. So and then we claim the cash. Ideally so much trade, I'm on a cash basis. Jay: But barter exchange, they issue 1099 and you've got to deal with it whether you do it corporately or use it individually. It's not a way to avoid taxes; it's a way to get leverage. Wouldn't you agree? David: Yeah, about ten years ago, the IRS said hey these trade clubs is a great place to find tax evasion and they went out and the trade clubs got all nervous and for every dollar they collected from some poor doctor that had 13 dinners, it cost him like 100. Cost him 100 to get a dollar. So they don't do that anymore, because you're talking, in most cases, real small transactions. Audience: Is it in your literature that you can recommend that talks about the intricacies of that? David:
Jay's books (unclear 03:15).
Jay: (Unclear 03:15) because my publisher says that I get a dollar a book from-but there's a chapter which in the book explains it really neat and we actually; would you do that one hour tape we did for you. That was pretty good, didn't you think? David:
I've heard the long one. I haven't heard the one...
Jay: You never got the other one? David:
No, no I never got that.
Jay: I need to get my tank, my dive watches. David:
I don't have dive watches. I went through every watch.
Jay: Alright. David: He wants dive watches. If you want a dive watch you have to pay for the seminar. Audience: I do business with ITEX. How would that be different than the way you do business? Jay: Well most of it, David does, one-to-one. I'm on the board of directors of ITEX, I understand it very well and where are you at? Audience: I mean, there's no ledger or anything that says... David: I don't deal with the general public. I deal with people that know me but I don't... Jay: David deals direct. He doesn't (unclear 04:10) David: I call up to buy stuff and I call up to sell stuff to people that I basically people that I know. Jay: David will go to a radio station or to a chain and he will either trade for something they want and then get advertising and sell it at a discount to an advertising station … David: Right, we call it a time bank. We bank space or we bank time, which means we own time on that station. Jay: Why don’t you explained … Audience: But you’ve got to be holding some credits and things sort of out here, but you’re just not doing anything officially. David:
Yes, yes right.
Jay: David speculates. You don’t want to be in David’s … David likes being in his position. You don’t want to.. David:
Yeah, it’s very negative cash flow business.
Jay: David’s got all kinds of stuff, I’ve known him when he (unclear 00:25) he couldn’t get inside because he was holding the inventory, right? Audience: Carnival's an interesting story. David: I’m down to two rooms now. One time when I had a little house, I had 40 motorcycles in the house, 20 in the living room, 20 in the garage. Yamaha. Jay: He was sitting with a Ferrari that I took from him, and what did you have, you traded it for a lot of cars. David: Yeah, a lot of cars. And we traded with a lot of airlines that went out of business; we got burned on each one. So, we traded with World Airways; I said World will always be there; gone! I’m glad I didn’t have United. The first thing that is knocked out in a bankruptcy is the trade credits. So, you want to be careful that you want either get what you want when you make the trade, or be sure you’re dealing with a company that’s going to survive. If they go down, you’ve already delivered and you’re out. Jay: Or get yours upfront. David:
Yeah, try to get it simultaneously.
Jay: So, tell them about Carnival, because that’s an interesting story. David: Carnival started with one little ship; it was called the Empress of Canada, and it was a really beat up awful ship. When the ship first came to Miami it was immediately attached by the Sheriff because they hadn’t paid some of the bills. And it didn’t even sail the first week. The second week it sailed out of Miami and hit a sand bar; it was on the sand bar for three days, all bent up, didn’t have the money to fix the bottom for a year. It wasn’t going to sink, but it was bent, but it was the best that ever happened to him. Television came out; cameras; they opened the bar, but he is drunk on the back of the ship stuck on the sand bar, while they’re trying to rip it off there. Carnival is now one the largest cruise ship in the world. Until it was in business, seven years, it never wrote a check for advertising. We were in a hundred market 52 weeks a year using empty cabins, but we created a monster. The ship sold out and we couldn’t (unclear 02:18) out of the trade, we had people waiting two years
to get on the boat. People would say I’ll take any sailing in the next two years, and I’d say we don’t have any. Jay: Yeah you’ve got to treat it like cash or it doesn’t work. David: Right. Carnival did not treat it like cash. Jay: One of the most interesting guys who ever used to trade was Tanner I think, because he used cash as trade. David: Yeah, Bill Tanner, who’s kind of the father of our business, who did a little time for tax evasion. But he got out of prison, and he now owns the second largest bank in Memphis, which used to belong to Jake Butcher, who is doing a lot of time in prison, who promoted the world’s fair. Tanner would give stations American Express cards. While you can imagine if you had a station, here’s an American Express card, give us 2to-1, 3-to-1, whatever, charge what you want. In those days they didn’t have the computers that could immediately stop a card. So, one station in North Carolina overdid the card in one month by a $100,000. So now, he’s got to pay the bill. He had all these cards on one account. So he’d go out, and end up practically owning the towers. I mean he’d go there and the guy would sign off enough time forever. But he was the largest American Express account for 10 years. Jay: He’s got more stories that will just delight you, but I wanted to stretch your mind to positives. Let me go through a few of these concepts, and we’ll see if there is a couple of questions you might have, and we’ll tell a couple of more stories, and we’ll close for the evening. I just lost...okay, here we go. So okay, number one, you can be a middle person. You can find somebody who has got something in excess, you can find somebody who needs it, you can be in the middle and you can make more money than both sides can. David: Absolutely, you can get commission from both sides. Jay: Easily, because you’ve got the vision to conceptualize the transaction; most people don’t have the idea. Number two, you save cash on capital expenditures. Whatever you are buying, if you’ve got something you can trade directly, if you’ve got any kind of margin, you were going to buy it anyhow, that margin just comes right to the bottom line, and if your product or service is more desirable than the product or service you are buying, you can trade to your advantage, 2-to-1, 3-to-1. David: Whatever you can go (unclear 04:28), right. Jay: Part of the increase is to your total sales.
David: It’s part of your sales. Jay: So basically, if you know you would sell a million dollars, and if you could sell an extra 500,000 against stuff you would have bought anyhow, it can actually be very very advantageous because it can get your efficiency, your productivity, your cost to sales per unit down dramatically. Barter lets you pay operating expenditures, even payroll as soft dollars. David: Right. Soft dollars and an Englishman; one of my first accounts was a fantasy motor unit, Disneyland. I flew out of here, I was signing him up, and we were going to advertise up the west coast to stay at his hotel and use hotel rooms. And, he said, I got it. He said, you’re going to let me advertise radio up and down the California coast with a soft dollar. I said, what do you mean soft dollar? He said a hard dollar is when I pull the check book out; soft dollar is when I use this room. And it does, it lets you pay with a soft dollar. Jay: So, talking about Sheraton Gold, because that’s interesting. David: Sheraton Gold – Sheraton did about 10 million a year for maybe, twenty or thirty years, and all the advertising Sheraton did was paid for with the Sheraton Gold certificates. Even major newspapers took them because you’ve got people traveling. Hilton at the same time that we're standing in said we don’t trade. So Hilton wrote millions and millions and millions of dollars worth of checks while Sheraton was using the rooms. Jay: They were just using unsold rooms. David: Yeah. Jay: And, they would only honor it if the room was unsold, and so incrementally cost them the cost of the maid, the sheets; the overhead. Barter lets you pay…again; you can bring your own currency or scrip that is useful only at your place of business. David: That’s another thing. If you print up some…almost every restaurant’s got gift certificates. But no matter what business you’re in, if you print some gift certificates for your business or your services, it gives you something to hand them if you make a deal. I always tells a restaurateur, let’s say the stove breaks, you’re bringing in the guy to fix the stove, and he says its $600 to fix the stove. You say, okay I will give you $300 cash and $300 in dinner certificates; he’s going to take it. You just saved $300, and you can do it in every phase of your overhead. Jay: But this automatically get terms, credits, and discounts far better and easier than you could ever get pay in cash.
David: Right, absolutely. For some reason, radio and television stations will make a better deal on trade than they will on cash. I’m in the business all my life, I don’t understand it, but I take advantage of it, and you can too. I don’t know why. Jay: And breakage. This is before the ethical question the gentleman says, I’ve traded tons of things I’ve never used. And the guy that traded with me is ready for me to exercise it, but he’s never used. I traded $5,000 of tiles, decorator tiles, 20 years ago when I was doing my first protégé, and we were going to do it in one of our houses, and we just never got to, don’t even remember who owes it to me now. But, there is a concept called breakage, just like there is (unclear 01:18) predictable, all kinds of other factors and other elements of business you want to talk about? David: Breakage is the unused portion that expires. Let’s say you issue a million dollars in trade and it expires December 31st, ’03. It won’t ever all be used. Jay: But you will if they bring it in, you will honor it, but truth of the matter is they won’t, if they use it all, they will usually not use it exactly, so you will make profit out of it, because you will have to pay the cash difference. David: Right now I’ve got $30,000 worth of Wet n Wild, which is a big water park in Orlando that has to be used by December 31st. Do you want to get onto a water slide in Orlando in December? I don’t think so. So, that’s going to be wallpaper. But I got it for airtime, and they’re going to renew, so I’m not … Audience: Canadians will buy it. (Laughter) Audience: Can I just give you my very best one? I’ve got a timeshare in Ocean Shores, Washington for $5000 barter dollars, a red floating week, and it’s in RCI, so you can use that to go anywhere in the world. Normally the face value of that timeshare would’ve been $20,000, the original buyer, and there’s many, many, of those available on barter, so if anybody’s just traveling and they’ve got timeshares, it’s a great deal. Jay: You get cash conversion, we talked about it. You can basically get items, and when I was; the concept that I put in, I don’t know if they followed it afterwards, but the new concept at the magazine that I was working with when Dave and I met, he was a great guy – they were a quarterly magazine. They would sell advertising months before the issue came out. The new concept was you trade at face value for only for
products or services that you know you can sell on the open market for at least 50 cents on the dollar. They would trade at full rate. If rate card was $10,000, their actual incremental cost may have been $1,000. They would trade and get the trade credits. Now, the publication wouldn’t come out for 2-3 months. They wouldn’t pay the print bill for a month or two after, that’s six months. They would take the item for $10,000, sell it for $5,000, not pay for it for six months, have a $1,000 embedded cost, and make five times the money, which is pretty cool, by cash converting. That’s pretty cool, isn’t it? Something, something, but that takes an enlightened mind. David: Yeah, more time to pay with trade because if you wish you a gift certificate until the certificate comes back you haven't paid anything, might not come back for six, eight, nine months. For cash, you've got to come up. Jay: An analogy which is in trade but, American Express I don't know if they still do but when they own the traveler’s check market, they made $100,000 a year on the float and the float was the fact that, it's like every time I go overseas I get $5,000 of American Express checks, I’ll use a 1,000, I’ll come back, throw them in the drawer and won’t think about it until next year. Well that's $5000 they had to use up for year interest free. David: That's right. And then, some of the checks are lost and when they're lost, that's it, they're gone. Audience: What do you trade the radio stations and the TV? David:
Anything they want.
Jay: Give us all the interesting things they want. David: I had a station in New York that carried the Mets and they wanted to send the Budweiser distributor to Bermuda with his family and they didn't want it on the books. So I sent him to Bermuda on the family and I took some air time. so... Jay: But you got carpet. David: Oh carpet. Jay: Cars... David: I traded a radio station here, their transmitter. They needed a new transmitter. Jay: (Unclear 05:01) tower, and what did you get?
David: I got a commercial for the day for the transmitter. There was a used 10,000 watch transmitter, I traded it with K-Rock, if you know KRock radio a la and that’s a large station here now and I got a spot a day. So the spot was worth about $200, so I got 6,000 a month in air time for four years. That was 400,000 in air time, transmitter cost me $10,000 and I traded out the helicopter that dropped it into the building. Jay: Anybody live in Salt Lake? Jeff you live in Salt Lake? Anybody live in Michigan and Tri-Cities in the Michigan area? Anybody who live in let's see, not Lake Tahoe, what's the gambling city by Lake Tahoe? David: Reno. Jay: Anybody live in Reno? David: Carson city. Jay: Okay, I was the most advertised person for about three months in 400 stations in the... David: 6 were in Reno. Jay: Yeah, and I was on 9 stations in Salt Lake, wasn't I Joe?. I traded Citadel who was a public company. I traded $3 million worth of consulting speeches, products. I did (unclear 06:18). They ran on TV. I did gift baskets for all the advertisers. I created a newsletter that we did for them for two years. All total hard cost was about 50 grand and I got $3 million. Now, I ended up just using it to promote the heck out of myself because it was a giggle and we didn't know-we wanted to use it for direct response and it was a B market and it was not good, but I got $3 million (unclear 06:48) you can do all kinds of things. The point of this really is to stretch your mind and your paradigm and your imagination with what’s possible. So you should be doing trade. He'll consult with you and if you've got a good deal he'll take a piece of it, but he's here just to blow your mind with fun stories. You've got any other real points you want to make? David: Well the, when you trade, make sure you're trading with somebody that is legitimate. There's lot of people wandering around saying I have this, I have that, that don't. Jay: Or there are services out there that will rip you off. They said I'll take all your unsold inventory and will give you discounts on advertising and that’s a rip off. David: Doesn't mean anything. There are companies that say, I'll take these tables and I'll give you savings on things you buy. They just mark the price up and you end up getting nothing for the tables, but your books
look good and a lot of this is for public companies for the books look good, but you’re not really getting anything. The only way to trade is to trade something where you get 100%. But if you're using your trade to-you can use it to lower the cost of something you're going to buy anyway and even if you save 25%, you were about to write him a check for 100%, now you wrote him a check for 75%, the trade lowered your cost of acquiring that product. Jay: Who here has personal services in this room? Who sells services? Anytime you could trade-if the incremental cost is high, but anytime you can trade your services to any entity, organization, individual that has either great influence in your market place community or be the probability, once they start a relationship evolving to cash, or somebody you would be inclined generically to buy or would love to buy something you know, from, you can't lose. You can't lose if it's something that is precious and it's limited and you have no-it's hard for me. I can always for $40,000 a day find a day. I can always find an hour for 5 grand and it's like, it's not a big deal. It's hilarious. My house is like, over the years, it's been like a zoo. David knows the kind of things I've traded for but I'm unique as I am (unclear 09:03). If your value is $200 an hour and you got 7 hours a week that are not being used, you could trade what you do for anything else but at the end of that they get ethically hooked on you and then they evolve to cash or you start going out every Friday night with your wife which is just indulgent or you do your Christmas party on trade or you get your printing on trade or… I mean it’s just like spark, have you traded much spark, are you still there? Have you traded ever? Audience: I’m right here. Jay: you traded ever? [Chuckles] wait don’t tell me about rigidity man’s genitals. I don’t want to hear it. (Laughter) Audience: Every year I trade about half a million dollars a year and… obviously in… in the presence of a masters and I’m willing to learn how to do another 4-5 million if that’s possible. Jay: But it’s helped your lifestyle, it’s helped you context… Audience: Oh god, I’ve traded everything from cars to stocks to.. Diamonds to.. you name it, furniture… Jay: But the point is almost everybody incremental… even if you’ve full, if incrementally you put another ship down and it cost you, you know the incremental cost was 10 cents on the dollar and you can get the stuff you
would‘ve paid three times that you need for your home or life it’s still very worthwhile if you can convert it. The point of this all, is stretch your mind and if you don’t do barter, stretch your mind to see how many more creative, innovative and non-linear ways your mind can work because David I believe was a seminal force in getting my mind to start thinking non-linear. I don’t do very much anymore because I want to make more money and I got a bigger sickness from here, I’ll trade for bigger things that I don’t want, and then I got to figure what to do and then I got to fulfill on it. And... And but the point is barter is wonderful if you use it with discipline but the mindset of barter is even better because it lets you look at life from a possibility based paradigm, would you agree? David: Okay let’s go back to our client, may be you can think of any other way to sell it too or you were worried he wouldn’t pay you but he’s got something you can use. Jay: Or let’s see you keep your money, that’s right and turn them into great allies or profit centers. David: You can go to… we’ve gone to receivables and said we had a restaurant recently that owed $500 and we said alright we’ll lead here, and now we have a friend, we’re not suing the guy in small claims court and our manager weighs 300 pounds. (Laughter) Audience: Just…just one example is that heart sculpture, the base of that cost $1200, it’s a… it’s a four inch black granite, polished on five sides piece of stone, they want $1,100 for it. There is a guy in head stone business that he’s… he’s wanted one of my paintings so I traded him granite, I don’t head stones but I need bases for a painting but the painting… Jay: And it’s nice granite right? Audience: Yeah, it was… and it was limited edition graphic that cost me $200and I’ve now got $6,500 worth of… Jay: Granite you didn’t have to buy. Audience: Yeah. Jay: So that’s a great functionality but the point that I want you to get is if you never trade in your life, think about trading because it stretches your mind and you can translates that into non-linear cat scan way of looking at possibilities that I think is inherit and is integral to really adapting the strategic mindset that I stand for, I really do. Thanks.
Audience: And I want to say one another thing, I appreciate your input because I’ve been thinking of the… what did you call? The line… Jay: The linear. Audience: The linear trade what? You know… Jay: Close in? Audience: Yeah, art for whatever the thing is. Jay: Right. Audience: It just occurred to me that I can actually take it to… Jay: Triangular, like math problems. Audience: Yeah, I could add… Jay: I mean his arts is tens of thousands of dollars, could he triangulate? David: Your arts beautiful by the way, I’d like get my hampers… this is beautiful. (Claps) David: Let’s work out a trade. Jay: How would you like to take and watch retailers in Santa Barbara? Audience: I had a record store for a number of years in Manhattan and I used the BXI trading Co. Op. and they actually have brokers who buy and sell the barter for them and they went out marketed my store and I gave them $25-$50 gift certificates and just about everyone I gave out which was thousands of dollars were used by people who would never even hear heard of my store. David: Absolutely, BXI is very strong in New York. Audience: As sparch, these gentlemen in masters are here and been studying for a long time, probably about seven eight years in terms of barter and I’ve done some pretty interesting things myself. I make you an offer - if anyone is so busy with their normal marketing but would like to explore some possible barter possibilities, profit centers within your business, please see me up here for the next days also. Audience: Well, I’m actually frustrated, because I sell advertising editorial space for a women’s newspaper, we reached 300,000 women in the Chicago land area and talking about art I got three women artists and
we said we’ll build them, we’ll ghost write for them, and at the last minute they all backed out, we were going to give them two for one, twice as much whatever their stuff was we were going to give them Ad space of which 300 educated resourceful women. So I’ve come… Jay: 300,000? Audience: 300,000 (Chuckles) Jay: Or you could triangulate those are two really good trade clubs in Chicago both are legit and huge. Join one of them, let anybody in the club use your magazine and let the women pick out what they want out of the club. You’ll get the art, they’ll get what they want and you’re… use your… you brought a third person in? Audience: Well the thing is my publisher owns a charity auction company so we want high end products in exchange for exposure and because we want to… Jay: Cash convert it. You want to cash convert it. Audience: We want to basically get the exposure like get Oprah and stuff to come to explore our business and people are turning us down they’re like well my business partner… Jay: You guys rather meet because you can probably help him… can we spend some time with him? David: Okay, yeah. Audience: You know I’m in a service, a business and I thought, boy this just leaves me on the cold because I don’t have anything to barter with. Jay: What about insurance? Audience: I provide insurance and long term care insurance policies, I have nothing to do with what they cost or I can’t exchange them for anything, so… Jay: What’s your… what your commission rate is? Audience: My… yeah commission 30%. Jay: You can try that. Audience: Well there is a law in California that says we cannot.. pay a person to give commission to anyone but…
Jay: Did you buy a policy and pay the first year and trade that? Audience: You know, this is what I came up with sitting there, I was totally amazed with my brain, thanks to you and I’m like okay, wait a minute I can pay for referrals. So if somebody promotes my business say a financial planner, he wants a policy he doesn’t sell long term care insurance. I can give him returns that cannot only pay for his policy but his mother’s policy and his wife’s policy and all of a sudden there could be he or an attorney or all the other people that I’ve work with, actually we could have an exchange, I don’t know… It sounds… I know it’s illegal but I never would’ve thought of that. Jay: I can tell you and you have to check for legalities but I know a lot of people in places throughout the country who would buy the first year for somebody. David: Particularly in life insurance… Jay: Yes because they got 90% commission. David: It’s almost all commission first year. Jay: They got the front, they get it back and they get something they want, somebody gets the first year of their insurance paid for… Audience: You can’t… in California you cannot give the kick back, you have to be strict… that would probably… Jay: But can you buy… can you pay first year? I’m not saying a Kickback. David: You can collect your commission and you can write a check for what… Jay: If tomorrow morning you came to me and said Jay I want to come to your program, I’ll trade you… Audience: (chuckles) Jay: The first year of a $5,000 premium on a life policy and I said okay and you write a check to the insurance company, I pass the physical; you have… you know you get a commission on it. Let’s say your commission is 90 % you get $4,500 back, I don’t know but I suspect that doing it correctly, it’s not illegal. Audience: I think if you gave me leads. Jay: Is it? Audience: It is still illegal.
Audience: Wait I have the answer for you, I checked in to the legality… Audience: Where are you? Okay. Audience: I’m working with a long term care provider. Jay: Is that illegal? Audience: That’s illegal. Audience: She’s not allowed to split commission with anybody in state of California. However, you’re allowed to pay a fee... Audience: Yes. Audience: To somebody as a referral source, so you do not use the word commission, you’re paying a fee… Jay: That’s the attorney? Audience: Yeah. Audience: It’s the fee that you pay somebody and it cannot be contingent on what the long term care policy is… Jay: Alright. Audience: So you can’t go in and sue me for what you’re going to sell. Audience: Right, and that’s where my ‘aha’ was, my ‘aha’ was that I can pay a fee for their… even for more referrals from them and then … absolutely that money can be paid for their policy. Jay: Doctor (unclear 09:43) we are going to do these 4, because I need you fresh for the finale day, we’re going to stop and save it as an epilog, gentleman. Audience: Okay, yes a good example my wife was bugging me about garage. We needed to put carpet and stuff on the garage floor, we managed to find the guy who will do it as a great job and he was great at doing garage cabinets but terrible at marketing. I gave him some marketing consulting and he did the garage cabinets for free. Jay: It worked out? Audience: It worked out perfectly and when I got back I got someone else to do the floor … the coating on the floor at the same time as… Jay: That’ great. Wait, wait.
Audience: How does the dynamic of your business change when the economy heats back up? Jay: During the internet boom we died because everybody was all wash and cash, I mean everybody had so much cash on these $5 stacks were for free… Jay: Its flourishing now as you can understand. David: Right now it’s getting better every day, every month. Audience: So it’s countered circle, Thanks. Audience: When you cash convert, is… is the market same all the time? Is it always 30%? David: No you … that’s something you could call me about if you have something to cash convert… to find out who buys what. Audience: Does it functional? David: We deal with 99 cents store, David Gold and I had a truck load of half bottles of wine and it was awful wine, just terrible. Jay: Did you traded for advertising? David: I traded for advertising. Jay: (unclear 11: 05) David: The Company in Seattle went broke; I had my house literally full of wine, so I sold it… I sold half a bottle of wine to Dave Gold for 25 cents about 20,000 of them. He sold them at retail, 2 bottles of wine for 99 cents at the Welcher’s store and almost cause a riot. He ran in his full page Ad Wednesday only there were 3,000 people most of them.. winno’s. (Laughter) Jay: So who read that paper? Audience: Does the cash conversion rate fluctuate? Is that… is that a negotiable thing or is that… Jay: Oh yes every… everything’s got a value might be… people say what I cash can convert… could be anywhere from 10 cents
Jay Abraham Mastermind Marketing 24 Jay: Alright, We ran it on a full page Ad Wednesday only there were 3000 people, most of them..wine out so..
(Laughter) so, wait… David: Wait… who read that paper? (Laughter) Audience: So… does the cash conversion rate fluctuate, I mean is that… is that a negotiable thing? Is…is that… Jay: oh yes everything… everything’s got a value. It might be a… people say what can I cash convert? It could be any convert 10 cents to 70 cents. Audience: Okay, the other quick question is on the airline miles, here there’s like a billion dollar in airline miles, is that something people can barter with? Jay: My son buys them; he has a travel agency in Honolulu. He buys and sells miles but he doesn’t barter. Audience: Is there a cash conversion rate on those things? Jay: He has a figure that he’ll pay for them, but he buys them all the time. Audience: I am here actually on Trade with Jay so I know it works. [Chuckles] But my question, actually… I am also a member of Itex I found that Itex is more on a lower denomi… value denomination, they really don’t do what we do like our rate card is 10, 20, 30 thousand dollars. Jay: They’re not optimal in local (unclear 01:12), but the barter clubs are really more for smart. David: Itex in Sacramental is terrific. Jay: Yeah that’s what it is. Audience: Yes. (Unclear 1:18) Great office in LA is practically not existent. So where is? Who is and what of? Jay: But you got the tapes years ago, anybody got a… anybody in northern California, Sacramento or LA who has a business or service they’d like to blow the mind of market and anything good to trade for, we’ve got basically, potentially million dollars a month in the most wild and incredible LED signs at the best of locations in all of California and we are open. Audience: Perfect. Audience: You have any cars?
[Chuckles] Audience: Let me say one thing just real quick. Jay: Alright go ahead. Audience: Dave, I was here at your 91 summit, and then by Alex Thomas. David: I remember you. Audience: I am the one that set the deal with Microsoft; they were going to do a 110 million with us. But then what end up happening was, I emailed Bill Gates a couple of time, he put me in touch with Balmer. David: Right. You were emailing Balmer, right? Audience: Yeah I was emailing Balmer. David: Right, okay. Audience: And what end up happening, they had me go down to their marketing agency down the Portland a couple of times. David: Down the Portland? Audience: Right. And there they kind of slammed the deal a little bit. David: Right. Audience: But they were still interested, but at that particular time that was right when the anti-trust was coming out with Microsoft… David: Okay may be that was one of the big factors. Audience: That was one of the reasons because I presented to them, they were just introducing Windows 95 and their slogan was “Where would you like to go today?” and I was going to… We were going to trade them some drive time. David: Right. You sent them an email offering to buy how many millions of dollars worth of software? Audience: 110 millions. David: 115 million. But Balmer was Marketing director, he’s now president. He got an email from this gentleman saying I want to buy 115 million worth of software, and that was returned quickly. Audience: Yes, it sure did.
Jay: Okay that’s funny that’s cute. Okay last question tonight. Audience: Just in the last two weeks, I’ve been working with Itex and I’ve had a credit for a quite some time but I’ve been looking at their websites rather than talking to various brokers, in last two weeks I’ve been in touch with about four five brokers around the country and suddenly I’m seeing that there is a lot more stuff out there. David: New York very strong, very good Manhattan. Yeah. Audience: Well… Jay: Its economy to more people who are trying to preserve their cash and… and consciously, strategically, reactively Barter is appealing to them more. Audience: And one of the things they’re asking where do you travel, and so I gathered together the various cities we travel to and they’re coming up with places close to where we already staying. So there’s lot of different things, you got to do something. David: You have to work that way. You have to work it, it’s more work than money. I mean money you just give him $100 you’re done. Trade is more work, it’s harder and it’s more profitable. It’s extra money, its profit centre for your business or service. Jay: Okay because we’re all tired, we’re all done. What time tomorrow Rick? [Claps] Jay: Those of you either one, you don’t have to but Troy Tate is going to do a really interesting session that’s optional at 7:15 if you’re… if you’re… Audience: Who wrote the book? Jay: That’s my book, it’s just my book. I have a section on barter and it was inspired by David, it’s just… you can get it on Amazon, you can’t get it… I don’t sell myself, as soon as I publish, getting everything out of all you’ve got. David: Terrific book, very good book. Jay: It’s just has a very good section on barter. (Unclear 04:56) [Blurred]
Jay: Thanks a lot, have fun guys. Speaker: So it is… and it is special he was Jay’s counsel for the last fifteen years. He also has a training company which focuses on optimizing human performance. He’s also been general counsel for a NASDAQ company and is currently working with Jay on several opportunities, working with other clients on this particular technology. So luckily I got to see this because of… I did the workbook and I think it’s pretty cool and I’m interested in hearing about this, so I’d like you to welcome Troy Tate. [Claps] Troy: Yeah. Thank You. Hello everybody it is early, and lucky I’m an early bird. They originally schedule me for like 10:15 to 11:00 and that would’ve been the 1:15 to 02:00 and I’m sure I would’ve been in coherent to all of you because I’m a morning person, so when they set out the early bird that was just what I wanted to have. Now you guys have probably not had any extra time to fill out your profile, anybody who actually did? Audience: Yeah. Troy: Alright. Good, how many of you who took the profile came out with the most number of reds? Reds, you know I would expect most entrepreneurs here are mostly Red are or… or not more than 50% but more Red than anything else, so stand up all the Reds. Okay so we do have a good number. How many of you scored with the blue? Okay we have a few, oh two, three, and four… usually it’s the most blues in the companies. How many Aqua? Aqua, Aqua see… okay they’re undecided, well, we’ll talk about that [chuckles] they do blue, they do aqua, they do whatever they want. And how many yellows? Okay, okay so and how many don’t know and they’re waiting to find out? A lot, okay it’s great. Okay we’re going to talk about something that I think is fascinating, if you get this I’m telling you it’ll be so powerful on how you deal with people. Because most people do not know what drives them. They’ll go through whole life thinking this is the way to look at life and will have no clue what’s behind it all. If you have the clue and they don’t and they’re your clients or they’re your employees or they’re your business partners, you’re one step ahead because you can get right through the gate to the motivational trigger and make the difference. So we’re going to talk about that today. Now before we do I would like each one of you to think of a particular group that you want to focus on listening to this today. If we have a purpose in mind and you’re listening to a speaker and you have exactly what you want to get out, you’re going to get a lot more insights than you
generally listen. So if you’re looking to understand your clients better, focus on that. If you’re understanding your employees or understanding your business partner, focus on that, and focus on particular person or two. Now write that down, who is that you wanting to focus on? Okay, I don’t want you… just write it down, I don’t need you to tell me, just write it down - who it is that you’re focusing on and why…. What you want more out of that relationship, maybe it’s a client that just bugs you badly… you know just trying to get to the next level of particular client and there are things about them that you just don’t connect with but you certainly want their business. May be it’s a colleague or an employee or an executive team but write that down and when you’re taking this information with that 80-20 rule, we know that 80% of what I say is great as I think will be for you, you’re going to be… So go for the 20% and get the insights. This will be fun for you, okay and we will go. We all know that max that no business can succeed without people and you can’t have sustained long term growth without meeting the needs of the people. Now those people who think that everyone has generic needs, are missing out on the boat. Those people who think as long as I throw my money out to my employees or as long as I do this with every customer, are missing out on power to effectively make it to a next level by addressing the specific needs of that individual, so let’s go to a different level. This is a powerful thing if you understand your client’s core triggers, if you really understand and know how to communicate with them in their language, then the likelihood of you being able to get through the gate and have them come to yes is going to be far greater and even so you’re going to find you’re not only going to get that initial deal but you’re also going to get long term relationship because you’ll know how to speak with them. Okay, the key is getting to know it’s not what you say, it’s how you say it that’s going to make the difference, It’s how get through that gate because otherwise you may have the communication clear in your own mind and it’ll be muddled. If we’re talking about people who are thinking of their employees or executive team and motivational - Coses and Palmer said this “leadership is a reciprocal relationship between in those who choose to lead and those who decide to follow”. Now someone said in the prior session about the fact that if you have enough passion you can make sure your business is successful. But to me in long term it won’t be as long as you don’t understand and address the needs of your people. So if you’re going to be leading you got to get both their head and heart. They may give 50 or 60 or 70% of it voluntarily because they need the pay check but if you want to get the 100% of it,
you got to get in their head and heart and have them what they want to do. That’s what the best companies are they have the best cultures as they know how to tie into the needs of the individual. This is a very interesting thing, I’m general council, I was a trial attorney for 15 years and I have been general counsel for company where we do a lot of… it’s you know 3 or 4000 employee Company and the vast majority of people who’ve been terminated from those companies involved personality conflicts. 80% of them have some aspects there where someone doesn’t get along and it affects their performance, it affects their confidence, that’s where you could lose a ton of money. Let me tell you about the cost, this is unbelievable but it came from Harvard Business study, the average cost to replace a particular employee individual is 50 to 100% of that annual salary. That’s how much it costs in long terms of lost time, down time, training, going down sending the ads trying to bring them in and all the other things that go with it you, lose a whole bunch of money. But if we do it on the customer end or other cause of course we have a lot of harassment lawsuits, we have a lot of discrimination lawsuits, a lot of absenteeism but on the revenue end, poor relationships with the customers will ultimately under mine every business. So the key is if you don’t have the relationships and you don’t know what drives them and you don’t address that, you won’t in the long run sustain success. Okay, we’ll talk about personality now, this is the key to understanding the people around you’re trying to deal with and yourself, each one of us is a blend of two or more of the four basic temperaments. There are four temperaments, I use colours because colours tend to be fairly neutral but you’ve heard it around there’s disc, there’s all sorts of companies who have personality paradigm used for, but each one of us have two or more in eight temperaments. And we start with that - Anent is a part of it, it’s a drive, it’s a basic desire, it helps us understand what makes us move. How many of you are parents? Okay how many of you have two or more children? Okay, would you agree with me, particularly mothers here that they are not the same even after the shoot…? I mean not even the same in the womb, is that true? And no matter what you do, it doesn’t change it. It is very… I am the father of four girls, I know, a lot sympathy I get when I say that… [laughter] I have a marriage trust fund that all you can contribute to later, but 17 to 7 and every one of them came out of the shoot differently and it wasn’t anything we did. It was right from the get go and that’s where people
have anent personality drives. The first one wanted it now [chuckles] and when the puzzle piece didn’t go into the puzzle it was like [baby scream] you know, no patience and wanted to get moved what they wanted and move ahead. The third one didn’t wanted to come out at all, we actually had to induce after two weeks later, they all have their different personalities and all of you will know as well when you have your own children . Now I’m going to go through this quickly but Krepark started this whole thing when he decided to save four different temperaments based on the fluid in your body, and all of those who don’t have anything but blood go [baby scream] you know yellow bile, black bile, flam, but any event let’s get down to some basics [chuckles] let’s go to colours because if I use those kinds of fluids many of you will be ashamed of being melancholies and phlegmatic you know that’s the stuff that comes up when you cough, and black… This is what we decided to do, let’s get it down to colours. Everyone one of you has only one anent basic trigger and the trigger is what is the most influential part of what you do, what you say and what you think. It’s a behavioural trigger and with red that trigger is taking charge and I would say also power not power in good or bad but it’s making things happen. The basic trigger for those who are blue is a combination and it weighs differently on each person basically its perfection wanting to have everything perfect. Sometime people might see that as anal [chuckles] and connection, wanting to connect with others at deep level, so it’s more of people orientation where red is more of thing orientation. The basic trigger for Aqua’s is peace, tranquillity an at any cost, in fact one of the people here told me on the first day that their company is named Serenity transformational company, who’s that, is there anyone who has? Yes that sounds like someone who loves peace, Serenity transformational and what was the last name of the company? Audience: Tours. Troy: Serenity transformational tours, Peace, giving you that freedom from all the confrontation, from all the turmoil in life. And then there is our last trigger which is fun. Now if you observed the speaker in first couple of days, it is such a crack up on your nose to watch them because you see them in action, they bleed their colours. [chuckles] We started off with Brian Tracy, what did he say was the key to everything? What did he value more than anything else? Action… Move ahead… move ahead, If a door slams go to the other door, Get it, Target, Focus, Lock in, true Red. I mean, Jut Red, Red, Red knows where he wants
to go, knows how to get that and he shares with you, all the things he share with you based on his values his particular temperament which is “Action Gets you to the Goal”. Okay, then we heard on the telephone Frank Tarcantin what was his emphasis? People, he talked about before I make any decision, I’ve got to have these great people around me, I’ve got to talk with those people, get their input, really listen to them, understand them and get to decision made through the help of people and I can only achieve great things, when I have great people around me. He’s telling you Blue. Okay. And then you have Jay and Mark Victorhanson, the A.D.D. twins [chuckles] and what do they say? It’s fine… It’s fine you know I can’t even… I write notes all the time and then I forget about it, I mean living with him as his attorney for last 5-6 years, is an incredible venture because you know no matter what you give him, it better not be an original, you’ll never get it back again, he can’t find his notes, he can’t find anything, he’s always in the moment and you’ll find he and Mark Victorhanson especially when they talk about his 50th Birthday party, that’s fun okay and Jay’s wife is fun, so both of them have a trigger of fun, it’s quite a hassle. Look at every person has great assets they bring on the table, and recognize that with your customers, I mean your clients, with your people; they bring great gifts to the table. Some people see life only through their own values and will only hire those with the same values but if they do, they miss out on the best thing they can get which is the success of all of these that they all bring to the table makes the company that much better. Red its initiative in focus, they’re locked in, they are zoned, they know what they want to do, and they know how to get there. They know how to make decision, deciding anything is not a problem, taking a leadership role is not a problem, because they are determined to get to their point. Blue, is quality in an organization they are the ones that make sure in the background that things happen, they happen when they’re supposed to happen, they’re scheduled, they’re disciplined, look what they bring to the table, you tell us what to do Red and we’ll make it happen or let’s make sure we do the highest quality, so they can be in leadership position as well. Aqua, this is the thing that many don’t understand is they bring great balance and clarity; they are not ego oriented people. They understand what’s going on and they can see everything in the mirror and everything they say, in fact they in the legal business if you found an aqua attorney, someone would say, some position they go, “oh that’s good” and the
other side would say “oh, that’s good too” [chuckles] and they hear and hear you know and they move back and forth because they don’t have this dogmatic view of life and they can bring out the best of the two and bring people together. Warren Christopher is a great Aqua in terms of how he did that and there were other aqua’s who were president, Jimmy Cater bringing Egypt and Israel together. Then there is animation , Yellow bring enthusiasm, animation out of the box thinking that’s Jay Abraham, just totally out of the box and everything he does, like when you dealing with him in a meeting for about an hour it’s like having a channel changer and you’re not even having control of it. [chuckles] every two minutes, “ wait…wait Come back Jay” goes to another thing it doesn’t sustain for a long period of time the same thing and he forgets everything he talks about but he is so brilliant when he is in the moment, he’s phenomenal, I mean when you’ve see him working with clients and I’ve seen him working in lot of situations, he is phenomenal how he zones in, gets it all done, he won’t remember a thing afterward so that’s why everyone records the notes but he just gets to the heart of the matter, it’s just a great talent. There are other factors affecting personality, I really won’t go into it, except we all know that our background, our family, all sorts of things can affect our personalities and it can even affect what our core drive is. We may have a core drive of Blue and yet we have strong red parents telling this is the only way I’m going to value and so they literally get little screwed up because they’re not even sure what drives them, they have this mix messages going on in their lives. Okay let’s start out with Red, they take charge and their initiative focuses are their natural talent. You want to get people in your company, you want to get your customers or clients, you want to understand what drives them and if it’s people in your company you want them to be place that they can have their natural strengths magnified and their weaknesses made irrelevant. So if their drive is initiative and focus and they want to be decisive you find the right place and right position where that kind of personality will work. Think of the strengths of a powerful red. They are Bold, absolutely bold, no fear, risk takers all those who are reds again? Anybody in red have a problem making a decisions? No. [Chuckles] Scream if you do. They usually know what to do, when to do and they base their life on getting most done in least amount of time possible, they’re very, very direct people, they’re resource oriented. I have a situation where- has anybody ended in Cabo-San Lucas, raise your hands.Has anybody been to Cabo-San Lucas without getting
proposition for time share program? [laughter] now that’s a feet, that’s a feet, and we went there the first time this year with my family and we made it through that, it’s like… that… that you know you come out of the airport and there’s 50 people and we reject it all and finally get to the hotel and we can have this… and we finally said okay we’ll try one, we haven’t tried it in 15 years. So they put us with a sales person that morning, and we had breakfast and said all your family will have breakfast and we’ll listen to this and so we went through it and the guy was just so nice and this is no pressure and we liked this and he started to say the things, well the problem is he didn’t know that I have trained the time share people of Marriott and Hawaii few years ago, so I knew the positives and negatives of all this stuff. In the event, he was so easy going, this will be easy when he was all over I will say no and we will walk away. So we’re getting to that point, we’re going through and taken a look at it and just when we’re about to say no and walk away he said “I need to turn you over” and then comes this guy [chuckles] in comes this guy “what are the sticking points, you know alright he is the red you know, “what is the wrong thing, what we need to solve?” you know high pressure, you did this do that you know “why did you get your family here? You only get you family here if you intended to sign for this and then buy this time share that’s the only reason you could do it” Oh I did okay, you now I have problems with re-sales. You don’t worry about re-sales I’ll pencil out and all this high pressure, does anyone has that kind of pressure thing? [Chuckles] It’s like you wanted to resist [chuckles] and the more you resist the more they press. Well, that is a red but negative red approach to sale and if you experience it… it’s not fun if you do it, it’s not fun for your clients. The fact is most clients may not like that approach unless they too want to get the positive and negative and make the decision and in that case when I finally said “No, No“ and then my wife said let’s just go and he goes “oh, so your wife wears the pants in the family?” [Laughter] “Oh boy you’re really trying to endure me, I’m just loving the rattle, can we stay here for another hour and talk to you?” And anyways we left and a negative red salesman I’m surprised that he get so many sales or why he is the one they chose to close the deal. But they have very positive red salesman who know when to press and when not to press because reds know the target and they’re not about to give up so if they do it in very skillful way they are some of the best salesman around, and clients will get to… But let’s talk about these weaknesses, now those of you are red
will remember all the strengths on this charts, and you’ll forget about all the weaknesses. [Laughter] Reds tend to not think of their weaknesses it’s not in their agenda, they know and they execute self-confidence, it’s part of them, they do not want to focus on the bad, they want to focus on positives and they also want to focus on what their strengths are. Now someone said that self-confidence is learned, I’m telling you, how many of Reds think that you kind of were born with lot of self-confidence? Usually it’s the case, my daughter is the fourth daughter came out of the shoot you know I know exactly what I want, I’m going to get it, and when I’m want to get it I’m going to get it. We battled with you at age 3 in a way you just think you would dealing with an adult. Self-confidence, you don’t have to learn any of this, it came out of the red and that’s because their natural desire is to have power, let’s talk about their needs, this is their needs. They want to be right, not only they want to be right, they need to be right [chuckles] Now those of you need to breath, that’s the same level that red needs to be right, you know it’s kind of gut level, so if you want to get red to say you’re sorry and they’re sorry, it’s not in their agenda because if they’re not right then they really not a value ,they want to have the opportunity to make sure they’re right and you’re wrong. They want to be in charge, they want to get credit for achievement and to be confident and to be efficient. So their drives are all base on getting to the point as fast as they can and doing it in a way that shows they get their achievement, they’re the people who build the bridges, build the companies and then move on to the next project. Okay so with those needs in mind, keep those needs in mind when you’re dealing with someone who client is a red. They want to be right, they want to be get to the point, the bottom line and they want to be efficient, okay this is quick slide but recognize those are red once who are very cline to take what is great strength in sometimes carrying it to extremes, workaholics are generally Red and Blues. Reds because they want to get to their goal and they’ll do everything it takes to get there, so they will work you know the 16-18 hours a day, those speakers we’re talking about generally you say they’re Reds or Blues, rarely do you have lot of yellows or aqua’s do that but reds and blues they like to do, they have this born leadership capabilities but it gets to the point where they decide for everyone else, and that’s where it could happen but if they sustain their strength they’re awesome. Okay. Audience: [asks question]
Troy: Yes in book two, thank you for asking, there are slides under my section in book two, in fact most… all of these slides, there are few slides that I changed since I submitted the materials but most all slides about each of the personalities are in your book. So, I would again focus on particular relationship you are talking about rather than trying to take notes, get the insights and write down the insights. Yes. Audience: [question] Troy: Oh the slide? No. I’m going to make you guess, go look. Audience: [laughter] Troy: The answer is all of the slides give you the strengths, the weaknesses, the needs, how you deal with them, what you don’t do, what you do, do and how you determine what people are based upon nonverbal and verbal things it’s all there. It’s almost I’ve given you the Essence of being able to understand these particular personality. So focus then on who is doing, what are those persons doing you’re trying to deal with or understand where they’re coming from based upon them and don’t worry about getting this content down. As you’re listening to it, see who do I think is red? Mean, who it is that I am dealing with, is red? And how do I deal with him better, don’t focus on this content because it’s there in the book. Now if you want to determine what they bleed, they’re tend to turn the table red, they ‘re the ones who want to get to the point, how often do they say the point is, when you go in there and talking with them, they want bullet points, they want not only problems but solution, what did Brian Tracy said he valued? Solution oriented people. Don’t come to me unless you have a solution, don’t waste my time, when you come in know exactly what are you going to say, know how to say it, and get to the point. If you’re selling me a product or a service, don’t waste my time. This is such a funny story. I was getting a water purification system and it was a blue salesman and he had this 27 page, the kind of journal type thingy, he wanted to go through, he learned it, he learned every slide, he studied it, and he knew it. So he started the process and the first he did the taste test and it was great and I automatically thought I wanted get the system, I just want to know what the cost is, so I go “okay I got it” so he say no.no.no then he goes through, [chuckles] another five- ten minutes, I said “I don’t understand it, just tell me what is the price? How do I pay it? What’s the price?” “NO I’m not finished yet” [chuckles] and I tried to interrupt and we finally said “Look stop just tell me the price and let me go with it and I’ll
make the decision” but the blues often times want to, they love details so they want to make sure they have done everything and present everything and not miss a fact and red who’s the buyer, who may be your client if your blue may not like that. Get to the point and make it happen. They often say I need, I need this, I need that, get it here, get it now, they’re not wasters of words; they want to be very clear and concise. Now here’s how reds control they control by intimidation and force of action, they will exude self-confidence looking out for number one was probably written by a Red. okay, because they know what’s there in their self-interest and when they listen to you as you’re trying to sell them a product they want to know immediately what’s in it for me, how I’m going to get it, when and how. Okay? They want to make a decision now, they do not like to dive into details too often unless it’s something that’s particularly too fascinating to them. So unless you do they will intimidate you with their force of their will and the way they want it and the way they want it now, they’re very direct people. Reds do not like people who don’t look at them in the eye. Two reasons why, one they think they are either lying or they’re in competent both of which they don’t want to have [chuckles] around them. So if you’re dealing with a red you better have the eye contact, you better know what it is that they want and how to get it and know it and in very clearly concise way because that’s all they want. Personalities, a variety of reds in our lives you know if you’re riding on left in politics you’ve got James Carvol , on the democratic side you’ve got Rushlin Bond on republican side, it doesn’t matter what philosophies they have, and you’ll find reds everywhere. And when they do it they are very, very good at knowing this is what’s right, I’m right, you’re wrong and just believe me you don’t have to you know, it doesn’t matter you’re going to be wrong unless you believe me and follow me. But mother Teresa is the interesting one, why would you think mother Teresa was a Red? Audience: [answers the question] Troy: Yeah but what was so powerful about mother Teresa? So, she has a sense of purpose, which is a red, and she went about making sure it happened but she was able to take on the character of the other colors, she was able to take on the blue’s compassion, and…and the balance and all those things so she’s one of those character people who start out as red, if read any biographies of her, she had a vision, and she knew how to get it and she knew what to do to get it, and she was willing to do whatever it took to get it and adapted and learnt the greatest traits of the other colors as a way of getting there and that’s a phenomenal example
of someone becoming a character human being even though when they start out in one color, it’s a really good example. Then Jessie Jackson, I mean every ones wrong, I’m right, I mean I’m right, every ones wrong no matter what in their very critical they’re negative red. Hilary Clinton, how did she deal with Bill’s adventures? Audience: [Laughter] Troy: Very practical, very pragmatic politics will do what it takes to maintain power and move on. That’s a red approach to her, wasn’t an emotional thing, it was how do we stay in power. There’s nothing against that, that was what probably what saved him that she said let’s do what we need to do and move on, and she’s very pragmatic and power oriented. Does anybody know what Bill is? [Chuckles] We’ll find out. Audience: Yellow. Troy: A yellow. Okay. [Chuckles] They like to have fun, very charismatic people, we’ll get to that. But here’s the nutshell and this is the slide I don’t have in your book so you may want to take a few notes. What they want from fiduciaries? Jay said its client not customer. Here’s what a red customer or client wants from you. Okay? They want you to get to the point, give them the bottom line, costs and benefits, how will it benefit them and they are ready to make a decision, they don’t want to waste their time on what they think are irrelevant material. No matter what you may think about your product or service, if you sense this person is pushing and pushing you’re probably dealing with a red and they want you to get to the point. The bottom line this will work for you and they are the ones that people love at seminars or at places when they try to sale products because they will instantly make a decision and they’ll go with it. So this is probably very, very powerful stuff if you can learn this is what the type of person is that I’m dealing with on the other side of the table. Get to the point; they want you to show a lot of confidence and competence. They may ask you a few questions and if you look them directly in the eye and you do the red game, the red game is I know what I’m doing, I know I’m great, I know my product is great, then you will have the red with you and they will go with you and they will be your customer okay. The key to them is to show them competence, confidence, get to the bottom line, make their time as valuable as can be so you recognize don’t waste it and you’ll get there. And stay with logic. You don’t need to go to red and say it’ll make you feel better, may be unless you’re doing Tom’s or something but in terms of decisions or products they don’t need to know how they feel, it’s not an emotional decision with them, There’s some little emotions with all
decisions but with them it’s just logical as it can be, let me know the bottom line. People bleed their colours Margret (unclear 01:15) said I’m extraordinarily patient provided I get my own way in the end. [laughter] To wear your heart on your sleeves isn’t a very good plan; you should wear it inside where it functions best. [laughter] Now what is the iron lady telling you about her character? Audience: She’s Iron. Troy: That she’s iron, and she’s not going to sit there and take you wasting your time with fifteen pages of details no matter how much you like the details or she’s going to like it if you start mooding with her “ you just stepped on me?” she is going to say “out, I don’t need you, move on.” So they don’t want any of that kind of mooding, what does red sound like? [Song plays] I’ve got the Power! Okay? I’ve got the power. Any of you know the group Queen? I mean, that was a red group. I mean look at their songs, another one bites the dust, and you know someone dies another one bites the dust does that show a lot of sympathy? We are the champions, I mean it’s just a red group and also the red probably loved that group a lot because it gets… resonates with them. They like the power. Powerful red occupations what’s so powerful about it is policeman likes their job not always because they’re in charge but because they have a gun. [Laughter] They can enforce it and the surgeons and emergency doctors love or are mostly red because, with surgeons they are in charge they get all the prays and accolades where all this people get this prays and accolades tell everyone what to do and they do it, and they walk out right, they’re not having to establish a bond with the patient they just do the surgery. Same thing with the emergency room, it’s all adrenaline, get in do the plumbing and get out that’s what draws reds to those particular professions in the medical field. And so if you see those trial lords, boy carry a lot of reds in trial lords, they love the Win-lose they love to win and they love to beat people in that kind of competitive environment so you will find the reds gravitate to a lot of things and especially business executives, the vast
majority, I’d say the majority of CEOs of fortune 500s are reds. They rise to the top, they know how to get there, they play the game of politics better than any of the four temperaments and that’s reds. Okay let’s talk about blues, Blues! This is the part of the slides, blues want to connect and they want to do things perfectly , sometimes it gets a little excessive one way or the other but they want perfection and connection, and with that they bring great talents to the company, they are the ones who make sure all the details are taken care of. If you’re dealing with a blue client and if you have beautiful cover on what you’re presenting to them but inside there are mistakes, you’ve lost the blue. They will look at the details and when they examine and find they are not there, they will not trust you. Trust is critical when we talk about fiduciary or client relationship, trust is essential for a blue and you have to earn their trust if you’re seeking to get their business. Look at their strengths, now blue come to this thinking, their weaknesses more than their strengths, they are more concerned about imperfection than about their strengths. So when I list the strengths they’ll probably forget that, but when I go to the weaknesses they’ll realize oh, there are few more weaknesses I had I even forgot about, you know, it’s one of those things where they always want to be better people and so in the situation where it say a blue, they are always trying to be better and they always trying to make sure all the details are covered and that everyone understands. Now where a red has a laser like beam to get where he wants be, blue often like to go to a little bit on the side, they want to get the whole picture, they’re not zoned in a line, they’re more into big picture ,kind of people from the sides. And, so they have great talents, like I said, Frank Tarcantin is blue or at least that’s what he seems to show when he was talking to us, who else is a blue? Well, we have, there are couple of presidents who are blue and one of them is Abraham Lincoln, and you can tell he is blue because he always wanted the best and he did go through mood swings, and he was one of those people who had desired to always do better, but in this situation they are meticulous, they’re planners, they’re organize, they know what they want, they know how to get there and they have fun doing it. Not fun in the way yellows have fun, their fun is making sure everything is covered, they love order, they love structure and they love to stay inside the box. Now some of the weaknesses are they don’t delegate well, I had a blue who was a… who I knew who was… they have hard time delegating, so they are kind they will tell you what to do on a task and they’ll turn around and they’ll look over your shoulders and they say “Now that was good, that was great. Good job, may be you ought to try this and may be this and may… can just take it and bring it back to you? ”
[Laughter] Because blues thinks that no one can do quite as well as they can because they’re very quality oriented, so they don’t know how to delegate, and so they’re very hard on themselves and they’re also very high in terms of their expectations on others and if you want to get to a blue you take the time meet those expectations. They’re very, very given people but they’re very demanding people as well. Okay look at their needs, this is the things, if you’ve a blue clients what are their needs? They’re telling you they like to embody quality, they want to be understood and appreciated, and okay they also want to have structure and feedback, remember what I said about Frank Tarcantin? He said I want to hear from all the people that, who might be experts and the things they have to say and share with me that I don’t know. They want the feedback, they want the structure and they want to be secure, they’re not risk takers they are risk reversal. So what do you do when you’re selling to a blue? Risk reversal, make sure their guarantees, make sure you give them all the details when they ask for them but risk reversals are the very powerful tool with the blues, because they don’t want to take risks and if you can make that easy for them and help them see through the guarantees of risk reversal, you are very close to getting that blue with you. They also want to be treated fairly, okay, again I’m going to go quickly through this and it’s on one of this slides they’ve natural strengths that are carried to extremes and then it becomes compulsions. Blues are like I said earlier sometimes those who become compulsive are annal, you know those people who wash their hands 15 times or they have to have their everything in right order on their desk and there’s nothing that’s ever stray, those tend to be blue people. Everything has to be structured, organized; doing what it’s supposed to be doing, there is no room for chaos with a blue. Now they’re also thinkers and feelers, they’re very sincere they observe details, anybody know any blues, have any blues in mind? Okay they’re all around you and if you know in fact if you have the … the people I’ve trained in most companies there are more blues than any other colour in the businesses I train and it’s because they tend to draw blues and probably there are more blues in the world than there are any other three temperaments. They’re out there to make sure it happens, they don’t have to be on front page, they’re always behind the scenes making sure everything gets done and when they’re leaders they have the sense of teamwork comradely, they want to make sure their whole executive team is working as a unit,
whereas the red is more concerned in making sure it moves forward and action takes place. How do blues control? By moods, by guilt trips, by indirect suggestions as I mentioned to you, you have a red parent and a blue parent they’re trying to get their daughter to clean her room, blue parent says “ I work so hard so hard for you and I’m tired of it, I’ve done this, I’ve cleaned your room, I took you to the store, I bought you clothes I did all these things and you don’t appreciate me and if you don’t clean your room right now, you can’t expect anything more out of me.” You know that’s the blue, they called it blue lecture, put the guilt on that they’ve done so much for you and here’s how red treats it, he goes from a paragraph to a sentence he says to the daughter “ If expect me breathing in five seconds, you better clean your room.” [laughter] Very good you know, the cause, effect they know the choice is very clear life or death, room clean. Different approach, same thing but the blues really want to connect and connect at the deeper levels and that’s how they do it. Personable blue personalities Tom Hanks , he is very strong blue, and Tom Cruise as well and as I said earlier AB Lincoln, you know the most powerful blue in this world right now is Oprah Winfrey. She has used that quality to endure herself to the masses, because even in her first episode of Oprah she talked about all the weaknesses she had all the things she had to overcome, well that’s what a blue does, blue wants to let you know they have imperfection, they want to real, they want to be genuine, they want to be sincere and if they’re not, they feel bad about it themselves and they spend a lot of time feeling bad about themselves, look at the perspective of red is Future okay. How Do I get to where I want to go? The perspective of a blue is a Past. What did I do wrong, how do I deal with it? So they will take the issues of mistakes they made or other family of origin longing to the decades [chuckles] and their entire lives because they want to work it out and they want to get resolved. They are very past oriented people but they have this incredible talent for being … [chuckles] incredible talent of being able to connect with people and be personable and that’s why I call them personable blues because they’re more people oriented, they’re more you oriented, they really care about making sure that you’re satisfied so if you do it to them, if you sell a blue and you say “By your trust and by the follow-up customer service this is what we’re going to provide” then you’re going to endure them, now interesting thing bot red is that they’re very much easier to get as customer or client but
with the blue if you get them, blue will last far longer. Even if you do things that will dissatisfy them they’ll complain about it but they’ll stick with you cause they’re loyal people, so a blue is worth more as a lifetime client than the red because the red may find different advantages and disadvantages down the road and if you got a blue they may even see that but they’ll stick with you because they like you or they just like your company even though they see the flawses what you presented to them. So here are their expectations, and you better get it, especially those of you who are red, if a blue is sharing something with you and you cut off and go “ I understand… be…da.da.da” you’ve lost him, you really have to show the ability to empathise, ability to understand where it’s coming from, you may have to learn about their family or all those kind of things that are meaningful to them and then when you do and you take the time even though you may be thinking you’re wasting you’re wasting your time, you’re getting a client for life. Okay so think about it, you’re focusing on a big picture; you’re dealing with those who are clients, who are blue. The big picture is earn their trust, listen to them, appreciate them, show appreciation in not only what you say but doing the small acts of kindness which they will love you for and they will not let go of you for life time. Those are the people who go to the companies and stay there for their entire career. They do not like change and so if they’re going to stay their entire career in company they don’t like change in terms of the relationships. And that’s what you should work for when you’re dealing with blues. They want the risks reduced and they love sincerity and quality. Here’s a blue, blue, sometimes I lie awake and night and ask where have I went wrong, and then the voice says to me “This is going to take more than one night” [laughter] Charlie Brown is a blue. And what’s Snoppy? Yellow, who cares? He’s up with the red Barings, give me food I’m going to have fun, I don’t even want to think about those things, so Charlie brown is the epitome of blue. What is blue sound like? (Song) Troy: I'm not half the man I used to be. Is that blue? There is a shadow hanging over me, a cloud, a dark cloud, that's the blue and you get it with a song, you know the powerful thing about the Beatles is if you look at them, they have 4 member of their group; every one of them is a different temperament. Now do you understand why they got to millions and hundreds of millions? George Harrison, Aqua, everybody gets along with
George, its okay he's peaceful, here comes us son little darling you know, all of his songs are kind of like that. Then you have John Lennon, Red okay and then you have Paul McCartney, blue and Ringo Starr, yellow, I mean he's always having fun, he was just... he was the really fun lover of the floor. So they were able to bring a whole their group together and look what they did what they did when you bring all 4 temperaments together. That's the power of having all 4 colours. Okay, some blue professions well quickly you are talking about musicians, authors, etc. Okay let's get in this fast, I've got a... I am trying to take something that takes 3 hours and condense it into one hour, so I got to go faster than normal, I apologies for that but we have a time constriction here. Yellow, aqua’s they love balance, they love clarity. They are the ones who don't give you a lot of feedback but they have so much going on inside of them, that if you take the time to gain their trust you will got a lot out of them. They have a great ability to see things from an objective view point. Blues and Reds tend to be fairly dogmatic and deeply grounded, aqua tend to go with the flow, okay. That's why aqua they go with the flow, they are like water; and they'll be easy going and they'll take things and even when you abuse them they'll take it, or you criticize them they'll take it and they'll be fine, except they’ll have a little trash can inside of them and they'll do again and again and the trash can ultimately get a little fuller and fuller and I am sorry for the person who actually put that last piece of trash in the trash can. Whoever had an aqua postal worker? You know guns down 30 people and what happen when they have the TV interview later of the neighbours... Oh such a nice man, so... even there's nothing wrong with him, I never saw him angry. It’s because an aqua had this garbage can filled to the brim. They have great strength, their ability to be kind; they'll get along with everybody, mostly everybody because they value kindness. It’s like the Thumper rule - If you can't say anything nice, then don't say anything at all. So they want to say any unkind things to you, but if you say unkind things to them, you are on their bad side immediately. If you are rude to other people you get on their bad side but they won’t let you know, that's the problem they don't give you as much input. They have great strengths, they are adaptable, they can go where ever they need to go, and they are very independent. They... Henry David was an aqua. They can go of their own to make sure things happen but they are not the kind of people, who want to let you know where they are at. Because it’s all going on inside though, they are
very, very logical people. They have some weaknesses - if you listed those weaknesses on your resume and you try to get a job, I mean different fearful plus and minus, so suddenly stubborn, aimless, lazy and enthusiastic stubborn, uninvolved... I just like change. I avoid conflict and I am indecisive but other that I am the person you need for the job. They are... but their strengths are the things that people don't recognize. Aqua have this great power. One of the most character aqua is Gandhi. If you listen to Gandhi and you realize what he did through non-violence overturned an entire British empire, the power was in his peace, his peace motivation but he had learned the strengths of the red and the strengths of the blue and yellow and if you listen to him unlike listening to Margaret Thatcher, you'll hear quotes from him that shows he values blue, quotes from him that shows he values red and quotes from him that shows he values yellow. So the facts of the matter is he's really can to take on the great strengths of all the colours and deal with him own inner-core strength of peace. They are the people you should listen to and draw out, and so if there's a customer you have is not listening or not responding to what you're saying, give them time we'll talk about that. They need space, they needed to be accepted, and they need to be independent and they like harmony. The interesting thing about aqua is that they are like the other 3 temperaments in at least one of their needs. They can identify what the other 3 temperaments. They are the one who're most inclined to be able to take on any temperament and do it. For example, the world of business is the world of red. If you have an aqua often times they can go into the world of red and act red, if they have this balance to... in fact if any of you have scores that were all close together most likely an aqua, most likely if they are close together is most likely and aqua because they flow into the different one's and there's no strong undercurrent and saying this is the way I want to look at life. And that's what makes them powerful because they can really, one's they get over their fear, they can really get great things happening. Their biggest stumbling block is fear, just what like read their biggest stumbling block is humility, but the blue's is getting over themselves you know not worried about the past, gets future oriented and present oriented... everyone has a stumbling block. They have natural strength, we had... in our company we had this turmoil going on - one of the leaders who has just came to the company and was there for 3 months and he left, just abruptly left and then... So they tried to have a team take over, this is a division of a NASDAQ company and the team was causing all sorts of... And then this guy comes from Atlanta and he says I’m going to get this
solve, he was this red with blue and he was giving different messages and it still cause a lot of turmoil. Well this aqua came at the front and say look, I will take the job and he convinced this guy from Atlanta to the job and over the period of the next six months where they resolve this up and down, he brought it to a flat line. See aqua’s don't have politics in their nature, they are not thinking about power and they are not thinking about fending people, so what they're able to do, is they are able to get people down to a level where they can start listening to each other again and that was the power of what he did. And he did it just in his own nature, he didn't put pressure, he didn’t put guilt trips, he just said this is what we want to do and I expect you to do it and the people did. So the power of an aqua leader can be pretty impressive at times. They have relaxed body language, unlike the red that needs to have eye contact, aqua’s don’t need eye contact, they don't need to look good to impress you. They are very casual people, in fact they just like hanging around without the suit and tie, even if they are required to do so. They may be a situation where they wear their suit and tie and where they wear their sneakers. They are just a casual nature to them; they are not in the business to impress you, unlike the red and blue. So if you deal with that kind of a customer or that kind of a client or that kind of person on your team; recognize that they are probably is an informal nature to them and they have an aqua nature. They have dry humour, tend to be a soft voice and they get their point across. Now there have been President of Iraq as I mention earlier, Jimmy Carter was and George Bush. And if you saw what happened in desert storm, you will understand it was the aqua that made the different. Because when they crossed over and they got into to Iraq, it was the aqua that said ‘okay we have done enough, we have repel them, they are no longer there where they were before, let’s stop. Now if it was General Schwarzkopf that was in charge, Iraq would been annihilated okay but it was the aqua’s said no we did enough, we did what we say we would do, you cross the boundaries, we put you back where you belong, so let’s back out. And it’s amazing how that temperament really is the primary force in guiding those - every one of us and that’s how it guided George Bush senior. Now here is how - it’s so interesting because some people don't think aqua’s control and the way they control is just the opposite of what you think control is. The more you try to push an aqua, if you’re selling to an aqua, the more pressure you put on them, the more they will resist. They are stronger than you can ever imagine, they can outweigh you not
matter how long it takes and what they'll do, is they will be very indirect about it, why don’t you call me and then they will never be there to answer the call. They will do everything they can to avoid having to tell you no, they may send you an email two months from now and say no, so they don’t have to have the direct confrontation telling you they don’t want the product. So what you have to deal with is the situation where you have to gain their trust to draw out where they are coming from and that only comes from gentle nudging, we will talk about that. First of all the personalities, Michael Jackson now when he gets on the stage, he is like a yellow but when you get him in interviews, he is aqua. He is very soft-spoken, he is very kind, he talks about all sorts of things that mean something to him but he doesn't have the same presence offstage because he has that nature that peace loving nature. Albert Einstein, most of the great thinkers of the world are aqua’s because they are logical, they are in their head, they want to reflect on the deep truths. They are like serenity, they like meditation, they are very good at journaling. Aqua’s are probably the best at journaling because they loved, they work well with the pen and they will work well with reflecting on their thoughts and writing them down, so those are the kind of personality. Now don't think they are not competitive, some of the people at the top of the sports field are aqua’s. Tiger Woods, at personality he fend no one and yet he is as competitive as you get. In the area tennis, Pete Sanford said, ‘don't think they are not competitive, they are very very competitive when they want to be, but they just have a gentle nature to them and they tend not to offend anybody.’ And Kobe, now he's got more more bold as time went but when he first started with the Lakers, he would just go home and be with his family, wouldn’t interact with any of the other players, he just kind of be on his own and now he is really starting to come out a little more, I think the shacks had an effect on him. So that's what people think peaceful aqua personalities are like. Here's the key and this is not in your book, so think about this person or persons you’re talking about, if you're trying to influence an aqua low-pressure, remember they want peace, the more pressure you put on them, the more turmoil your brining to their life. You're not being an answer to what they need, your being a problem okay, so you got to do the gentle nudging though and so requires consistent efforts. Now a friend of mine, share his aqua share with me this, a product, the person called him up and he thought about the product and he said, ‘okay I'll think about it’ and they call him up a couple weeks later and they talked a little more and he said ‘he still thinks about it’ and then one more time and finally the salesperson is just tired of it. I mean he tried three or four times, looks like
he's getting nowhere, he is getting little feedback and then out of the blue that salesperson because my friend told me, he would call in three weeks later and said, ‘I want it.’ Because when he doesn't feel the gentle pressure and nudging, I mean when he doesn’t feel the high pressure and he has a chance to reflect on it, that's what they do, they reflect on it and they make a decision. Now what works well? Blues also works well with aqua’s risk reversal. Now it’s an interesting thing, they will want the guarantee or they will feel-good about the guarantee and feel good about the risk reversal but will they ever return the product? No, why? (Audience unclear) They don’t want to offend you; they don’t want to hurt your feelings. So they will want it and that will be a very good criteria for selling to them but what's good about it, is you don't get the returns. So like the blue, they can be a lifetime client, why? Because they won't get around, it takes too much energy to change to another supplier and if there's something that goes wrong, they don't want to offend you. So the aqua’s and the blues are the toughest to get but when you get them, you get them for life okay. There is different reason for different motivations but stick with the aqua's gentle pressure, saying can I call you back in a week? Can I call you back - those kinds of things move them forward a little bit every time until they make the decision and once they decided on you, again they don’t want to go through that pressure again to making a decision, so they will stay with you, it will be much easier for them and when you know this, it’s very very powerful. Henry David Thoreau, I mean who else will go walden pond and stay there for two years, not talk to anybody but the animals and be able to love it. It is aquas because they do not mind being in solitude, they never get lonely. And he said, ‘I went to the woods because I wanted to live deliberately to front only the essential facts of life and to see if I cannot learn what it had to teach and not when I came to die, discover that I had not lived.’ Now those who rock was here resonates with him because they love to reflect on deep truths, they love to think about things, they love to get into themselves and really come out with the answers and everyone knows and aqua and anyone think they know an aqua around here? Okay. Has anyone experienced the aqua stare? The aqua stare is this, your talking to them and the lights are on and no one's home. (Laughter) And it's not because they're not thinking, they are going through 15 other
things but they don't want to be unkind, thinking about 15 other things in there mind and they are talking to you, you're talking to them and you're seeing no response, it’s like these eyes open but you’re not sure the person is conscious, you’re not sure what, that's the aqua stared. Now if you’re chilling with the customer or client just realized, hey I got a clue, this may be an aqua here because that is what they do. There is so much going on in their mind and oftentimes they will just look at you and they don't feel the need to really pay attention to what you’re saying. So occasionally get them back to reality and ask them a question or two and you will get to know. Now what does aqua sounds like? (Song) Anyone knows Simon and Garfunkel? They are aqua, aren’t they? The sounds of silence as you read your Emily Dickinson and I my Robert Frosts, we have no time or place for book markers or memories that are lost, that’s aqua, listen to that , an aqua has identify that. Enya has a lot of both the blue and aqua tour, those just soothing sounds, ethereal sounds, draws a lot of tune. So if you’re in with a client's office and they are listening to that music, guess what? There's a clue there, occupations Dennis, you know why Dennis is Aqua? Because they can talk to you and you don't talk back. So how is it going?( ahhhh) They could be nice to you and they tend to be aqua. If they are psychologists, are the one who sit down and will nod and they will listen to you for an hour, you won’t get any feedback but they will continued nodding because they're very good listeners. And why FBI agent though? Why FBI? Is because they do it behind the scenes, they don't have to go and confront the criminals all the time, they put the pieces together logically and creating a case for an arrest. Often time you will find FBI agents – you saw what kind of doctors, I already give you a clue what kind of doctor's, they are anaesthesiologist. They love to put people to sleep. (Laughter) And they're not - they don't worry if you get bored, they are not bored and so oftentimes you may think they may bore you but they're not bored themselves or you may think you're boring them, they aren’t. They are very interested, they just don't get bored. Okay now we come to yellow, this is the Jay Abraham school of fire and Mark Victor Hansen, they are true yellows. J and Mark do what they do best as yellows.
(Drum roll) Fun and play, I mean what other concert do you go, I mean a concert is now a concert. What other program do you go to or you doing the YMCA and whatever dance they were doing yesterday, I mean that’s J. J love to have fun, they are in the moment type of people, they are very present oriented. Okay so the reds are future oriented, what is it going to mean to me, how do I get to where I want to go. The blues are past oriented, what did I do wrong? How can I do better? The aqua’s are go out and the yellows are in the moment and they love it, in the moment, they have great talents, animation and innovation. They are out-of-the-box thinkers, they do not think inside the box, that’s what made J so incredible because he is always doing things outside the box to bring them to you because he hates structure. He is not a structure person, don't believe he is an 8 to 5 person; this man will work spiritual hours, 24 hours to 2 to 3 days in a row and then take off. He doesn't like the constriction of the box, okay. And that’s what yellows often do, their very very present oriented people, they are the life of the better offer, when they make a commitment to you to meet you for a sales meeting but if someone comes along with a better offer between now and then, ‘hey you want to go skiing?’ Sure. You may not have someone show up at your particular event because they are the life of the better half, why waste my time? Saying I’m committed to go to some sales meeting, instead go skiing. Well that’s the way yellows are. So don’t get mad at them, they just found a better offer. They are the impulse buyers, they are the buyers who said, ‘well this sounds good’ but they don't do it like reds and say what’s the advantage and disadvantages; it’s like does this feel good? Is this fine, is this (unclear 01:13) I’m going to buy it. So they are very – if you want instant sale, it’s very good to have a yellow, very good. They have great strengths, they are animated, they are enthusiastic and when they come to a company, where do they go? Where do you find most of the yellows in the company? Audience: Sales Sales, this is it right? Sales and marketing, anybody who took the test is yellow? Stand up. Oh okay, so you guys you love sales and marketing because you love people right? The yellows are those who really can engage you, they have great stories to tell you. I was doing a negotiation and we had to negotiate, it’s a $2 million it was a lawsuit. I was a (unclear 01:57) at the time; well actually I was General Counsel. And there was all this battling between this red female attorney on the other side and our blue male attorney and they were sending all these nasty letters, and I was thinking ding, ding, ding, ding, you know $10,000 a letter of variety
and I decide let’s get to the General Counsel on the other side. And he had shared with me a couple of times when we were in depositions, all these stories and I thought this guy got to be yellow. You know he was laughing and talking about all the things he did, so we invited him out from Georgia out to California. And I talk to our CEO and I said this is how we are going to negotiate this, let’s listen to what he says, let’ talk about things, let’s talk about stories, hopefully you will have the interest as he will. I don’t care how long, it might take an hour and a half to two and then when it’s all said and done, he will probably give you a bottom line and hopefully you will get the number you wanted and then you will agree and then he wants to come out and play some holes of golf afterwards. So sure enough, that’s what happened and luckily and CEO had a lot of yellow in him, so the red would have been different would have been crazy during this negotiation because for the first hour we just talked about fly fishing and horseback riding and all sort of… it’s like this is a negotiation, I mean give me a break and then the guy says, ‘okay we are going to get the business taken care of’ and then he took out a check. He says, ‘this is what we will pay you’ and so I went in the other room with the CEO and we said, let’s pretend we are talking, it was pretty good numbers what we wanted, we said we wanted a little more. So we came up with okay, give us the money and do a few other things, and we knew the yellow wanted to go golfing, okay. So if we could get enough of the other things, that were just enough for him to swallow, we will be okay and so we throw in a few more terms and they were terms that was beneficial that’s all doing another forum, getting some more business and sure enough he said okay and immediately he said let’s go. And he and the CEO went off golfing for 27 holes, so.. That’s what yellows are all about, if you know that, then you know how to deal with them. They are a little undisciplined, disorganized, impulsive, forgetful, clutter, etc. They tend to talk too much; they talk and think, okay. Blues think and talk, yellows like to go into the room talking, there style is one where they like to get the attention of people, they loved to be noticed, they loved to be praised, they love stimulation, so if you’re going to get yellow to go to buy your products, stimulate them, make it fun, make it interesting, make it something that they will be interested in having and also make it easy. They are not the kind of people who reads those manuals from cover to cover, you know how you do install something, they want something that has like 3 steps, get it in, plug it in, turn it on, that’s great. They love flexible without structure and so when you get to that, you not find it sometimes they go to extremes and extremes here are they often
times can become sociopaths in the sense that they will they not let the truth get in the way the way of a good story. And they will do whatever they can to con you, if they go to extremes. And they tell stories so well, I’m sure all of us have lost some money in life from a yellow sale person, who is a negative yellow in the sense that they will tell you whatever they think you need to hear in order to get the sale. Because they love the engagement and they love the art of the sale and in fact the thing that J enjoys most when I deal with him, and we do the deals is he loves the art of the deal. The most exciting part is negotiating the terms of the deal and as his attorney; he has never done a simple contract. He has all these elements here, what happens here, what happens there and he loves all this stuff, he just strives on it and when there is time to implement, he wants to make sure everyone else does that. Because he will come in for his moments of brilliance and the rest of us will take care and deal with the details and make sure it happens, but he loves the art of the deal and that’s what yellow do.
Jay Abraham Mastermind Marketing 25 Troy: Anyone else does that. Because he’ll come in for his moments of brilliance and the rest of us will, you know take care and deal with the details and make sure it happens but he loves the art of the deal and that’s what Yellow’s do. They’re fun to be around, they’re loud, they’re easy laughs, they speak and think as I mentioned. Okay, here’s how they control; charm, if a yellow daughter or son, they do the pouting, “oh no don’t” and they walk away but they’ll somehow get your attention. They do not want to have you not notice those popped yellow personalities, as I told you right. Bill Clinton- yellow, they’re very, very good at creating commaderie, they’re good at getting people to forgive them, and they’re good at forgiving others. Jay is very, very forgiving. No matter what people do he forgives very, very quickly. It’s because they want to be in the present moment, forgiving, not forgiving ties them up in the past, so they move on. Okay here’s the key thing. And this again is a slide that’s not in your book. Here’s how you get to yellow. It’s an easier job than with most other temperaments. Probably the easiest in the sense. You make the product your tasked quick and easy to learn and use. You’re fun-loving, you really enjoy if they want to share a story, if they want to have a laugh, and they want to have you sell them while they’re doing roller-derby or whatever, you go with them and you have fun with them, okay. And then, notice and praise them, be upbeat, lighten up and have a lot of commaderie. Now when you do that, you get them but remember the yellow’s life is the life of the better offers. So they’re easy to get in but not so easy to keep.
Because if they come up with a better offer and it’s funnier, they’ll leave that. Oh back? Okay. They love stimulation. If you’re going to sell to them, make it stimulating, make it something that’s exciting, involve their emotions. They’re emotion based more than logic-based. So if you make it exciting for them, you’re going to have to make a difference. They’re very upbeat and they want you to be upbeat, if you’re depressed, if you tell them about your problems, you’ll probably lose a yellow very quickly. They’re just optimistic people. They wake up happy for no apparent reason. Get that? A lot of people don’t get it. They wake up happy for no apparent reason. They’ll just be happy and all the things that are going wrong in their lives and they’ll just have a smile on their face. With yellows, optimism is a natural quality for them. And another thing you won’t get if you’re not a yellow is they love themselves just because they breathe. (Audience laugh) Reds and Blues don’t get it. Whites can get it up here somewhere but yellows live it. They love who they are. They’re just fun loving. Got to love me, got to love me, got to love me and they’ll walk around and they’ll really get people to love them, because that’s the power of yellow. So you’ll get the quick sale but you have to work to keep them. You better stay fun with the yellow. Is that enough time? Okay, seize the day. In fact I’ve done some presentations, a few yellows walk up to me and out of their wallet they pulled out the card “Carpe Diem”. (Music Playing) Sound yellow? There’s a party going on right here. Various occupations but let me get to what you have in your books, but look at this over. They are people, they bleed their colours. Look for what they’re doing. Look at the clues that are coming out of them. How they’re sharing things. If they’re speaking very fast like Brian Tracey did, point-point-point-pointpoint, I mean that’s a Red. A red likes to get through it fast. They want to get to the point, they want to move ahead. They’re very articulate as they’re doing it. They’re usually a Red. If they’re more round about and they talk a lot, they don’t get to the point as well but they like to share things that are on the outside as well as the middle, more likely a blue, okay. If they don’t share that much and you get very little input from them, more likely an aqua and if you having fun with them and if they’re very upbeat and easy going and just having fun then you’ll get a sense of a yellow. Their decision factor I’ve mentioned that how they communicate; reds are loud, they tend to be loud and yellows tend to be loud, blues can be middle of the road and aquas are soft.
This is in your book so you can take a look at it, decision making style. Eye contact as I mentioned is a very critical thing, don’t worry about if you’re a red trying to sell an aqua and they’re not giving you eye contact. It’s not in their nature to want to do that, if they don’t have to. And Blue’s if they do not trust you may not give you eye contact. So you’ve got to earn their trust. So take the time to understand what motivating them is; power if it’s red, perfection and connection if its blue, peace if its aqua and fun if its yellow. Okay this is also in your book, we won’t have time to get to it now but take a look at it in your book. This is an awesome table, if you’re dealing with a company where you’re trying to understand the people on your team, you can go through all of these things and you can look, without even taking the profile and understand what a person is all about just by how they handle the various things that work, okay and that’s also on the other side. So this is in your book, no need to write it down but we’ve talked about most of these traits. The last thing I want to mention is that all of us have personality bends. They’re not just four personality traits, they’re four temperaments and what you have heard sometimes, you’ll say well that matches me but there’s a few needs that I have and want that’s not what I see in most of me and the others. Anyone had that experience? Yeah. That’s the personality blend, okay and if you took the profile, you’ll see that probably that the needs of the second one or the next highest up on your profile. The fact is you may have a few needs from a secondary or a tracery colour. But that doesn’t change the most influential factor in your decisions and in the decisions of your clients which is that core motive or that core trigger of one of those four temperaments. So if I’m a red, for example, let me give you an example of this. I may have strengths of being a self starter, taking charge and yet a secondary personality of loving people. And really being exciting, but I may also have some weaknesses as well. That’s what we’re all about, we’re all unique. I’m not saying they’re four personalities, I’m saying they’re four temperaments. So you will not always get clear messages about who those clients are. They may send out different signals, okay and so you have to throw trial balloons at them. Oftentimes, it may not work the first time but then you’ll get it later on. There’s nothing wrong with that, you’ll just understand it’s not working. So in this case, they may have the strengths of both and the weaknesses of both. There’s some that will have nothing but weakness of all four colours and those people, don’t sell to them. You don’t want to have them in your life. Because they are really kind of screwed up and they don’t even know what they are. So stay away from those people. Now, here’s another interesting thing. If they have a core temperament, for example red, they may want to be right or need to be right and be in
charge but they also want to be noticed. And to have flexibility, you may get confused. Oh you may say this is yellow person so I’m just going to have more fun with them, then they cut you off when you’re trying to share a fun story, then you know, no that’s not the primary core. The primary core is red. Yes, they’ll have fun when they need to but they want to get to the point. And you’ll learn that very, very quickly if you start wasting the time of a red. Remember the core temperament still governs your communication style. That’s what makes the difference, okay, the core temperament. Now you’ll find in your books and these are really good, really good prompters. These particular things, if you look in the books, I think section 10, there are steps to say what to do for a red personality, what to do if you are a red personality and you’ll have that with respect to each one of the four temperaments. And what you don’t do is well, okay. So if I’m a powerful red, here are things that I can improve on. Here’s how it can make me more effective and here’s what I shouldn’t do and then you’ll see here’s what I’m dealing with if I’m dealing with a red personality. What I should do, what I shouldn’t do. They’re really good, really good prompts, stuff you could put in cards or something. Maybe you could write them in cards in fact we have a product like that that helps you when you go to the meetings and understand okay, here’s what I should do and here’s what I shouldn’t do. I’m telling you this works. It is so powerful. When I deal with negotiations for Jay, I really get a sense immediately who the person is. And when I get a sense of who they are, I adjust my style to that. Not because I’m putting on a façade but because I understand and value what their temperament is. And when I value what their temperament is, most of what I’ll be communicating will get through, right through the gate to where they’re at. And make the difference rather than getting muddled because I’m speaking to them how I want to be treated. If I’m speaking to them how I want to be treated, I will lose a lot of clients because two thirds of them or three quarters of them won’t agree. That is not how they want to hear the message. No matter how good the message is. So the key is to understand and value that and then you speak in that language. So as I mentioned before, take a look at this after when you’re doing your debriefing after this whole thing is over, take a look at all these things and you will find, I promise you with the people and particular persons you need to get in a better relationship with, whether they’re clients, whether they’re employees, whether they’re partners, these will be very, very valuable. I know they will and you’ll have an opportunity to have a great time. I’m going to end early, because going through this is too long to take more than five minutes. So let me talk about the last
thing that really doesn’t involve your clients or customers, it involves you. You will have in your companies or in companies of people who you work with, people from all the different temperaments. And if you want to get better, if you want to get character and be really influential in all aspects of your life, find a model of someone who is red. If you’re having a problem dealing with a red, go to one other person in your company who is red and ask them how to deal with it. You have experts in every one of the four temperaments in your company or in the business circles you run around in. So use them as your models and as your mentors and how to deal with that type of person. And if you have a blue, do that as well, but if you really want to, get to a level where you can embrace all four and you can be effective no matter where you go with no matter what type of personality then it’s the process of charactering. And that process means, you don’t work on your weaknesses, remember what you heard before, don’t work on the weaknesses that are naturally yours, go after the strengths that make the difference and you’ll find those strengths that are not naturally yours in one of the other temperaments. And if you use a model, someone who naturally exhibits that and you follow what they’re doing and learn what they’re doing, take it in and instead of doing that you’ll find it’s the antidote to a weakness that gets rid of the weakness without ever having to focus on the weakness. So find models in all the other temperaments use them as mentors, use them as advisor, you can say you have all the expertise you need in your company. I love this quote; “two roads diversion of wood and I, I took the road less travelled by and it’s made all the difference”, that is the path of those who are going to be the most successful in life by really understanding what makes every person tick, by valuing what makes them tick and by very much taking it on and embracing what makes them tick. So you have the strengths of all four temperaments. So go out there, do it, have fun this is really, really fun. I recommend that you go try it out, try it out with a person today, try it out with someone you know, talk to each other about it, the more you get comfortable with this, the more awesome it is in terms of the power of it. And the thing that I’ve learnt about truth is, it may not have a lot of pizazz in the beginning but the more you try it, the more powerful it gets. I’m telling you, the more you try this, the more powerful it gets. And this will be a very, very powerful tool in helping you be successful. Thank you. Jay: Wow that was great. Troy: Thank you.
Jay: Terry, where is Terry? I need Terry. Is she around? Can you find her? Okay. A couple of announcements, you guys have gotten the third workbook, right? Audience: Yes. Speaker: Let me tell you what it is. Let me tell you what it is. It's all tactics. Right, Rick? Rick: Yes. Jay: Yeah, okay. We did 40 or 50 seminars over the last - before I burnt out on doing seminars and I did all kinds of different elements of 50 Ways to Grow Your Business as far as the tactical ones and we had people to mike's and we collected the best of the best and we transcribed them and semi-edited. I probably spent a hundred grand doing it. You could take a deeper but we thought if you could take a look at collective composites of the best 20 or 30 or 40 ways to do promotions to sell, to lead generate, to buy client, to break even, to set up strategic alliances that would be good. Here's (unclear 01:24). We want you to be very successful, we want to take you to a very delicious pond of water and we hope you want to drink plentifully and continuously and nourish yourself. And volume one is got multiplying effects to current ad of sales. A lot of stuff Mac Ross did. Then it has got multiplying effects of your current ads and sales with Drew Kaplan and it's got ad clinics. Mac used to do ad clinics like he did the other night to those who were there. Every session, we took the best ones that were the most illustrated and we had them transcribed. Developing and improving your USP, we used to do session on session. We had those transcribed using PR instead of money. We had a PR expert go through how the heck to keep your wallet closed but your impact nation or worldwide. The next one was using PR instead of money with another ad person. I mean another PR specialist, then referral strategies, I did tons of them, we transcribed them. Then set up your own external sales department or agents. We did that, setting up your own external sales departments agents with somebody else. We did the advertising comprehending skills again in different version with Mac, advertising comprehending skills with a different advertising expert in the UK. The other strategic alliances with me and a guy in Australia, three ways to go business featuring when I was doing Tony Robbins totally analyzed. It was a great business in another form, so you could see it from so many advantage points. Power prints was a geometric business growth analyzed about seven ways to (unclear 02:51). I think, act, and transact like a marketing genius.
A guy that tried to model me 10 years ago and forgot what I did that I didn't know I did. Maximize your assets with another guy who'd been a partner of mine for 10 years and tried to articulate what he saw that I did from a different vantage part. How to make an offer that no one can refuse. Mac Ross and I just went through about a hundred ways to do that. Creating a solid back in and dramatically improving what you do. I always have a look at businesses and here is how you add more to this, here is how you extend it three, four, five, seven times. Making things happen, just how to get your ass in gear! Reactivating old clients - I did a big session on that. Reactivating old clients with Mike bashing and stab at it, these are all transcribed. And so I'm talking about probably you'd have to spent - you're already here. You're already went passed it, two o'clock deadline. I was talking to Rick I'm waking up, I was up until four working on how to make today the best day of your life and I said interesting things 'cause couple of you still complained about the wet noodles and… (Audience laughs) Jay: Did they? (Audience laughs) Jay: And I said: "You should give me back our money. It's a waste!" and I said: "Rick, these people wouldn't know if I just did!" I could blow you away with the most superficial stuff. Believe me, I'm not saying this to patronize you and you'd be very happy when you left. We were up until what? 3:30? Trying to figure out how to make this the best day of your life and because we care that much about your outcome because we want to be a role model for you to care that much about your clients' outcome all three segments. And we want you to have this because if I don't cover everything, I chose to do this a certain way. Originally, this was designed to be a program for my internal people who'd already progressed a long way on the Jay Abraham curb and I didn't really think I needed to do a lot of the basics and I was going to bring all the strategic people to make sure they got their butts in gear and did stuff with it. Then so many of my friends said, ‘oh can I invite our customers, our clients, our subscribers? And I said sure. So blending, trying to make sure you get all of me because, Chad said: "Jay, almost sadly." and it was very, very he said, ‘so these guys don't really see the intrinsic value of your brain that worked, because you've been doing all these extra things because a lot of these experts had very rigid schedules we had to work. But today, we're going to blow your mind just so you know that there's something up here besides the ability to bring a lot friends together. We're grabbing attention right away; it’s like get it out of the box. Headline
athon, Mac did two or three headlines athon it was like "Bam! Bam! Bam!" Here is how you create headlines. Here's how you extrapolate it. Here's is how you modify. Here is how you borrow that headline. Here is your model. Then we had somebody else who was a very strong and a multihundred millionaire advertising guy, do his version of it. I like you to see different versions because there's no right or wrong, different people come at it very differently. Another person gave his sales, basic sales course. Mastering marketing to the core secrets, I just brought it down, here is this, this, this. Thinking outside the box with John (unclear 05:45) a different session John did the first time that was I think blow your mind great and you ought to read that because it was totally different when he did it. We blend together and just be really a great bridge to get in yourself about seven times more productive and freeing you from the yolk of stress and negativity like that, and I wish I had time to explain it. I have nothing to gain by titillating because you're already here for the duration. I'm just saying its cool stuff and we spend about Audience: All tactical. Jay: Yeah and we spent about 30 grand getting it printed up for you so enjoy it. How to buy your weaker competitor and exit strategist, selling intangibles or conceptual ideas by mail or space positioning powers, you just do segments in there. Publish your own book. Transform yourself into your business and leader in the field of marketplace. (Unclear 06:26) who sells 40,000 people publish a book. Publishing your own book featuring Jeff Herman and another guy qualifying leads upfront, I just want you to notice a lot. I pray you do something with this; I'm so respectfully disappointed that 82% of you did nothing with the grounding materials and 12% of you had 5,000 to 500,000 dollar win-folds before you came it, It's just something to - is that me? Is that coat? Somebody locked in the closet? (Audience laughs) Jay: As Bobby here you got to stop, I’m sure he's got a real short window. Is he here? Audience: No. Jay: Okay, we thought our surprise is really interesting; we had Robert Allen who has written five or six best sellers. He is Mark Victor Hanson partner; they are both on tour right now all over the country with their best-selling book. He agreed to do something really cool for 15 minutes but we sort of screwed him up. We thought it was at CNN where he's doing a bunch of - he is on CNN today for interviews but it's not. It's like a half
hour away and it's different. Terry, where are you? Raise your hand. Walk up here, everybody who talked to Chad Holmes or everybody who gave me their card. We got lot of you. We want to interview you. We want to write some set some stuff up with because we want to be the best - not just the best for us but the best situation. Chad needs to get - he's going to initiate dialogue with you today before he leaves and - it was just a list. I’m going to name some people, Terry is my assistant, find her, she is going to set-up like five or ten minutes today, so at least we can get something started. Everybody who came up to me, came up to Chad or should have come up to me or should have come up to Chad and just set up some times that are convenient. Dawn Camp, Kevin well he writes as bad as I. Kevin (unclear :08:09) I can't pronounce your last name, Scott Milburn, Emmanuel Olli, Wilson Clam, Howard Philips, Robert Marshall, Wendy Robins. This is terrible, my writing is better than this. Eric Gunther, Patrick Boggs, Chad Decort, Donald Yakurt - if I've mispronounced you, I'm sorry. Joe Kennedy, hi Joe you sent us a lot of e-mail, you were worried you weren't going to be here. Where are you? Raise your hand. Raise your hand. Where are you? Do I read emails? I do, don't I? Audience: Yeah. Jay: Can't get away from me. Greg Baron, are you here? Okay. It will help me just process and get in an incept so we could make the most and really start a dialogue fast and bring something good, Blake blacksmith, Doug Philips, rest not? Okay. Find Terry at the soonest break, because Chad's here. He's got a meeting at 5 o'clock and he has to leave and I want to have all of you spent five or seven minutes. So we can get a debriefing, we can figure out because I'm not going to have the time myself. Anyhow, this is our gift and this is not another paper way. For you to have experience this auditory, you would have had honest to God. Spend about the average program was 36 to 86 hours - say 40. Time's about say conservative 40 times, 40 is. 16,000 hours you would have to spend. You have to flown out to 40 things that would have caused you at least 80,000 dollars or showing you Jay Abraham in action but I want you to appreciate this. You would have probably spent another grand for the hotel and food, so another 40,000 dollars. You would have probably not retain very much of this to get this transcribed yourself. To listen to it again when it taken you that amount of time which you wouldn’t have done to have it transcribe yourself, would it cost you basically 16,000 hours. That's about 3 hours transcription per hour which is 30 that's 48,000 hours. Time is about 40 dollars an hour. Somebody's caused you as 16,000 or 160,000, I did that. If you don't use this, shame on you and I
just demonstrate you had a value of piece of paper too, didn't I? Okay so I did two things in (unclear 10:20). If you don't get that and use it, shame on you twice, okay. What? (Audience claps) Jay: Okay, we got a problem, because I said we got to (10:35). First off, let me give you the day. We're going to work on business. I'm going to have to demonstrate to you that I know my business and I'm going to spend a couple of hours showing you that I'm really not trying to avoid confronting, demonstrating very marketing technologies and I really do have a (unclear 10:51) of knowledge residing in the catacombs of my mind to share with you. And then we're going to have Whitthin Churchill talk a lot about email marketing and then because all of you want to know about the web and the internet and because I have a certain perspective but guess what, how many people in this room have figured out at least one element of either e-mail or internet marketing, positioning, or collaborative marketing, using it as an extension of your existing business to communicate, to cut cost, to access business and it's making you money. Stand up. Well guess what I'm going to do for all of you who have it? And I'm not going to have to do this seminar. Do you want to guess what I'm going to do? What do you think I'm going to do? I'm going to have all these people come to a mike and we're going to basically - Robert, are you there? He'd probably say yes but nobody can hear it. (Audience talking) Jay: Okay, one second. I'm going to have all you guys give yourself basically about a billion dollar compressed seminar in about an hour and a half. If you don't take a lot of note, shame on you. Okay, Robert! Male Speaker: Robert, they are just calling you. Speaker: Can you see me? Robert: I'm here. Speaker: Can you see me? Robert: I can! Jay: You look very (unclear12:09) I like your (unclear 00:12:10) Do this, so I can show how incredible in real time it is. (Audience laughs) Jay: How is the tour going?
Robert: Doing very well. (unclear12:18) too early in the morning. (unclear 12:20) two wide TV this morning, one tape and then just remote right here. Jay: This is the most important. You do good here, they are going to probably tell everyone. You know, all these people have influence on probably there's 650 killer entrepreneurs here, who is probably on an average have 3,000 clients, members. Some have a100 - 200,000. You got influence (unclear 12:45) all our books but got inspired them and I'm going to tell them what we talked about. Okay? (Audience laughs) Jay: You can do it! You can do it! Robert! (Audience cheers) Jay: So Robert, besides writing five or six best - selling business books, besides being one of the most brilliantly audacious marketers in the world, is one of the most resilient and one of the most strategic minds I've ever met. We asked him if he would do 50 minutes of heartfelt counsel of recommended attitudinal strategic and ideological suggestions for what you might want to do when you go home and what he has learned about business life, in his travels, and travails and I'm going to just let you go for that it, but let me say he's a dear friend, he's a brilliant man, he's a very generous man, he's understands a lot of really critical stuff about making money and sustaining your business. He's been through some very interesting personal stuff and he wants to share something with you. I'm going to let you have that and I know you're on a tight schedule. We're very appreciative and we can sell a lot of books if you really inspire us. (laugh) Go for it, man! Robert: Alright, thank you! First of all, I want all of you to wave your hands, so I can see you. (Audience cheers) Robert: Alright! Thank you! There we go. First of all, I understand that Jay has been incredibly generous and has been given every one of you a copy of the One Minute Millionaire book. Is that correct? Audience: Yes! Robert: Would you give Jay a very big hand for doing that? (Audience claps)
Robert: Also I want you to realize that you are literally in the presence of one of the greatest marketing geniuses in the world history. I'm not saying that because I know Jay, I'm not saying that because we have been friends for years, I'm saying that because the following his advice, this guy advice right here, generated tens of millions of dollars in our business that was not been there if it hadn’t been for his genius. And so I'm speaking from personal experience, having written very, very large check to this man over the years, I'd like you to know that it is paid off enormously and thank you very much Jay for that. Jay: Robert, thank you for your acknowledgement. You're graciously welcome. Robert: I came to Jay back in the early 80's, we were launching a book called ‘Nothing Down’ and made this crazy statement with someone you might heard (unclear 02:30) please take away my wallet. Give me a hundred dollar bill and in 72 hours, I'll buy an excellent visa using none of my own money. And we were launching a series of books and seminars at that time, the book nothing down just appeared. It was quickly becoming something that was waving on my (unclear 02:47) imagination. It was becoming the number 1 New York Times best seller. I'm just from a small town of southern Alberta, Canada. It was wave beyond something that I can possibly imagine, I remember flying down to (unclear 03:01) California, just sitting in Jay's house and I'll never forget the conversations that we had there, it was very extensive conversation by the way. We're very comfortable conversation for me. Jay: It was interesting, I remembered it. Robert: What was the name of the book that you gave me from? Jay: Scientific advertising of my life and advertising one of the two. Robert: Yeah, I was so excited to advertise it which I have but in our house we have fiction bathrooms and non-fiction bathrooms. Jay: (laughs) Robert: It all depends what I want to read fiction that day while I'm enjoying. Jay: I understand. Robert: You got it? And in our master's bathroom, I have a copy of scientific advertising that I pick up and read, you know.. Jay: It's almost 20 years.
Robert: Even to this day. Jay: Just 20 years ago Robert: (unclear 03:50) Jay: That's great. Robert: Using that experience from that point on, we created a series of seminars. It's over a 100,000 people and 500,000 people. It's already 50 million dollars and (unclear 04:04) and then with my partner Tom Peter with Jay to help, we helped to market over 20,000 people and 5,000 dollars a piece in the real estate seminars. Great success on my career but I'm here to talk to you is about the success, because every once in a while, you’re going to experience (unclear 04:22) in your career when you're going to lose it all. If you really roll the dice, if you're really an entrepreneur and you're going for it. You're going to make mistakes from time to time and that mistake happened for me in 1986. Some of you might heard me talked about it, but everything was flying high as I could fly and then we're going building a beautiful mountain cabin 10,000 square feet. The most magnificent architecture you could possibly find right across the valley from (unclear 04:48) dream home in Sundance, Utah and an avalanche came down one February the 13th 1986, and so we say it changed my life. (Unclear 05:01) you know you've moved along in your businesses and every once in a while you might get blind-sided by things that you haven't anticipated and Jay mentioned that one of the words that you could put beside my name is the word resilient. As the matter of fact, you just read some very interesting research that shows that entrepreneurs are the bunch of the group or some of the most resilient people in the world. And why is that? Because we bounce back from so many things that have struck us in the blind side, I want to ask you, how many of you have ever lost money trying to make money? Let me see raise those hands. Sometimes as entrepreneurs, we are very independent bunch, we want to think that we did it, one of the reasons we leave corporate America or we leave working for somebody else, is because we want to believe that we can pull it off on our own. We want to be our own boss. Sometimes, that's the big weakness that we have as entrepreneurs. We try to do all by ourselves and we don't bring the powerful people to help us. What I'd like you to do is – now that you have the One Minute Million Dollar book, I want you to go to the website at oneminutemillionaire.com and I'd like you to… Jay: Going to leave you alone, Bob.
Robert: (Unclear 06:14) so hot surface. Did Mark talk about that when he was talking about it the other day? Jay: No. Robert: There's a survey that talks about the four different styles you need to be as an achievement, if you have people that you're working with now, you absolutely need to know what your team consists of. If it consists of heirs, owls, horses and squirrels and I'm not going to describe what those four terms mean but I'm going to tell you that each of you needs to be one of those styles and each of you needs to have a team that's based on people who have the other styles, because most of us just like Jay right here, Jay is a brilliant, creative, he's the heir. He just rocks in the (unclear 06:53) he can but Jay you have also people on your team that follow some detail that you're not good. Aren't you? Jay: Sure, lots of them. Robert: The answer is yeah. Jay: Yes, yes. Absolutely, certainly. Robert: I need you to (unclear 07:09) those kinds of people back then, you know, back in 1986. That's everything (unclear 07:15) population that didn't follow my intuition. Each of us as entrepreneurs have these (unclear 07:21) hunches that really kind of let you know what the deal is, whether it's a good deal or bad deal. Sometimes, I say that our hunches are a result of flickering flames of truth that each of us have inside ourselves. On the either side of these two, these are flickering flame of truth, are these two bullies. One is a bully of greed and the other one is the bully of fear and frankly it depends upon which bully you listen to. Sometimes you listen to the bully of greed and say "Yeah, let's go for that! Let's make millions!" The real question I want to ask you there, is have you ever listened to your intuition on that? Can someone get me a glass of water? Jay: And Bob, one second, if you can't, I don't know what are people - it's a little bit of feedback and they think it might be - is there anybody there that can adjust where your position is to the mike a little bit, because we want to hear clearly everything you're saying. This is (coughs). That's great! Thank you! Where's Nick? Nick where are you? Male Speaker: We're trying to get away. Jay: Is that better? Help me tell them what to do. Make it better so we can make sure we hear every word. Is that better? Robert: Can you hear me okay?
Jay: That's good. You're great. Robert: Is that better? Jay: Yeah, can you hear me now? Can you hear me now? Robert: I'm going to come down a little bit closer to the mic. Jay: Okay, how do we adjust it? (Audience laughs) Jay: Stay right there. We'll fix it, it's not a problem.
Robert: (unclear 08:49]) Jay: With our world class technology, okay. I love doing live-demos in real time. (laughs) It's seamless. It really impresses you, doesn't it? (Audience laughs) Jay: Okay, this reminds me what live TV must have been like in the 50's. Go
ahead. Robert: So follow your intuition, follow your intuition. In this case, this is back in 1986 - can you hear me now? Jay: Pretty good. It's nice. It's good as it can be given the technology. Go for it. 1986. Robert: There you go. The technology that the entrepreneur is to figure out what you're - what that intuitive hunch that you have is and do not be persuaded by the bullies on either side. The bully of fear and the bully of greed, those are the two things that get you the most trouble you can have as an entrepreneur. In this case, I followed the bully of greed. There's a huge piece of real estate - I mean block in the city I was investing and I just had to have it. It was an ego plenty. It has nothing to do with intuition and I bought it and it turned out to be huge mistake - a big, big mistake and then followed up by avalanche that came down and swipe out my mountain cabin. The base has to buy this one big block of the city. I had put up everything I own, my real estate…. Jay: Virtually you were egoist at that time, right? Robert: I was egoful. (laughs) Robert: You never been there?
Jay: No, I've never been the ego land. Is that like Lego land? Robert: (unclear) ego land. (laughs).Been there, done that. Jay: Possible. Yes, I have. Robert: Divided a big piece of property. I had to put up everything I own and one of those pieces of realty was our beautiful mountain cabin 10,000 square feet, the most magnificent architecture and when an avalanche came down and wiped it out, destroyed it – literally destroyed this mountain cabin. The insurance was not paid insurance because it was an act of God. What else is there? You know? (Audience laughs) So they wouldn’t pay the insurance and literally within a 90-day period time, I had a 10 million dollar net worth that was below 3 million dollars in the hole. It was a very devastating, horrible, rotten, terrible experience. What you learn from not following your intuition but more importantly, the lessons I learned from that, is it did really wipe me out. It just took me to rock bottom, I don’t know if ever anyone of you have been there before but that's where I had to start from again and I had to follow my intuition this time and say what do I want to do with the rest of my life? One thing that happens when you lost everything because the most magnificent, clean, clear, starting from nothing experience is you get to ask yourself the question: "Okay, now I have nothing left to lose." A lot of you guys have too much right now. You have too much stuff. The stuff of your life is kind of blocking you from really doing what you're born to do, because you're afraid to lose your stuff. But once you've lost all your stuff, you had this very clear mindset and say, Okay, I don't have anything left. I've nothing left to say, I don't have anything to protect, just all gone. Now what I'm going to do with the rest of my life? And starting from that position, I said we are going to start from scratch. I can do the same thing I did before, this I’m going to do it smarter this time. Before when I made up the money, nothing had happen so quickly. I mean millions of dollars in retail market; it was just like almost 2,000, I didn't appreciate it. This time I said we'll make it again, we'll make it smarter and I'm going do what I love to do. As an entrepreneur, you don't want to just launch a business because it's going to make you some money. You have to launch your business because it's what you believe in. It's what you're passionate about, then I had to start
from scratch. I remember the first time when I teach Jay having session here because this time I was teaching people who taught that I was rich and the truth of the matter was flat broke. I was totally bankrupt and I was teaching about money. For the first time in my life as I stood in front of
them, I felt this twinge of guilt. One of the twinge, it was a horrible rush of guilt to save myself. Here I am just mostly talking about wealth and how to
make it and I have less wealth than the audience that was listening to me and I said you know, I’m going to tell the truth. For the first time, that felt wrong, doesn't it? (Audience laughs)
Jay: You're going to reveal more of yourself, than you had before. Robert: I'm going to tell the complete truth and I said to the audience, they paid a thousand dollars to be there. Supposedly talked to the group and I said that you know, there's not a person in this room that has lost more money than I have. There's not a person in this room has the worst credi t rate than I have. There's not a person in this room who have less hope than I have. But guess what, I'm going to use the same principles that I'm going to teach you, this is back in 1986. That I'm going to use those very same principles to take me back to where I was, faster this time, but this time to make it in a way that would last and to make it in a way that was permanent. As you entrepreneurs was there, I want you to realize that you're a very special breed of (unclear 4:08) in this country, this country doesn’t work without you. You're like that little bird that I thought in Hawaii when I was there with my wife and there's a little sparrow was landing around my breakfast table and I was flicking crumbs off my breakfast tables to these sparrows that were there. (unclear 04:28) of crumbs like crazy and I thought that there was an entrepreneur in this group and I wanted to check it, so I put a nice big piece of muffins right from the edge of the table and this one capital bird lying on the table and he was really skinnish and he was worried about me but he finally came over and got that piece of muffin nibble up and then dragged it off the table. So this lands on the ground and all of (unclear 04:50) we have another entrepreneur in the group. I put in that big chunk of muffin right there on that closer to the table and once again the entrepreneur of that group, he just pecked away and then he dragged it off the table for everybody else. That's what entrepreneurs are, that's what you are. You're that bird that dares do what none of the other bird dare do. You're given a God given gift to do things that people don't dare do. And the only thing I’m going to try teach you from this point on is that you follow that intuitive hunch that you have. Check with it regularly, check with your intuition. You got to know whether the deal is good or not. You don't even have to look at the numbers. There's something about the mechanism of your body that's the most sensitive, collaborating mechanism in the world. You can kind of know it. You can kind of
sense it. The people you're playing with, the deals, the numbers, the properties, whatever, you’re going to kind of know instantly. You will know
whether it’s good or not. And then you go back to numbers just to verify whether or not your hunch was right but the bottom line is you got to follow your hunches and don't get too carried away with the greed and certainly,
don't get carried up in the fear that's stopping you from doing what you really need to do. I got to give great credits to major (unclear 06:14) that I have in my life for teaching me how to follow those intuitive hunch, teaching me how to be humble enough to realize that I can't do it all and more importantly I can't do all by myself, that's why I bring people like Jay in on the teams that we formed. You got to bring the best team and the best are expensive. The best are always free, because the best are always going to give you (unclear 06:39). They're always going to give you 10 times more than the cheap person would give you. It's always free for the best. I wanted to just acknowledge you for taking the risk to be in the room that you're in. To rub shoulders with the other sparrows, those little birds in our society you're in. That's a whole room full of them. I want you to take your right hand, place it over your left shoulder, pat yourself on the back; I'm on that little bird. Make sure to touch your neighbor's shoulder. Say "You're that little bird." Audience: You're that little bird. Jay: That's good. Bob I want to ask you. I know you're out of time but there is a couple of things I think you can nestle into your conversation that might be very pivotal. Number one is your attitude about - I believe in the geometric pillars, the Parthenon approach. You believe in multiple streams. Translate that for existing entrepreneurs, also you're not audacious but you want to be distinctive and you like challenges and you like controlled and hedged dastity. I'd like you to talk about because certain people here are a little more timid and a little more let's say shy or a versed to doing some of the most powerful things that will propel them to the levels that they really want to go to. You give us a little perspective. Robert: Well, the two secrets - Mark talked when he was there the other day about the fact that all of you need multiple streams of income, Jay calls it did a Parthenon. I think I have a better metaphor and that is mountains and mountains streams of income. There are four mountains that you're going to build your world from; you're going to build up with the streams income coming from the real-estate mountains. You going to build streams of income that come from the investment mountains. You want to have streams of income flowing in from own your own business mountains and then from the internet and I'm going to challenge you to have streams of income coming in from all of those things. The second stream is you got to make money while you sleep. Now, we're thought in our society that you
should go get a job, work for somebody else, y ou know, get the goal latch down the road. What you're going to learn here in this talk with Jay is that why you don’t get the goal latch now? Do it now! And the way you do that is you have to create streams of income that flow in while you sleep and this means
going against the grain. You know, I don't know who these guys were back few hundred – two hundred years ago sitting back with their cigars and they going you know I think we're going to start - we are going to have them go to college, that’s what we will have them do. Four years of college that would cut them deep in debt, so they have to work for us and then just before they get ready to retire (laughs) (unclear 02:30) I mean what kind of pillars did you buy? What I was saying is just you need to launch your own businesses and you need to quit listening…
Jay: Bob, juts to be sure, 99% of the people in this room have at least one and some of them they've done very well but I want them to do better. I want them to know your attitude about hedging yourself and how you build your business, you got internet, you got joint ventures, you got this and you're audacious. You challenge the media. I want you to for just a couple of minutes spin that because they are already passed that. They're there; they're opening and closing the door there. They're butts are on the line, so that's already done. Take them from there. Robert: Well the first challenge I did was (unclear 03:20) take away my wallet gave away a hundred dollar bill and 72 hours of my excellent piece of real estate using none of my own money. Jay: That was your claim and the times that LA Times challenged you. Robert: The challenge. Now, I didn't know at that time that that would become my thing. You know challenge. If you look at the word challenge and has my name in the middle of it. Ch-allenge. (Audience laughs)
Robert: And I just know at the time that that was going to be my homework but I don't always felt that if you have a business, people are skeptical and therefore you need to make an outrageous promise. Jay: That you can deliver on? That you can deliver on? Robert: And as a matter of fact Jay, I think you need to make an outrageous promise that you don't think you can deliver on but then you re-engineer your entire business to deliver on that promise. Jay: I like that. I like that.
Robert: Let me give you an example. When I wrote the Moment of Streams of Internet Income, I said you know sit me in front of any computer, I'm going to make $24,000 profit in 24 hours. Well, that means that when I make that statement came out of my mouth I did not know how to do that but I tell them it's good. (unclear[00:04:28]) to do that? So I pulled all the experts and they help me figure out if I could sit at the computer, push a button and have a 24,000 bucks going in 24 hours. We did that count for live cameras and actually made $94,532 in 24 hours - a hundred grand. Jay: You did that in the unemployment line too, didn't you? Robert: (unclear[00:04:49]) unemployment line, send me to any unemployment line someone who is broke out of work and in two days time, I teach them the secrets of wealth in 90 days with (unclear 04:57 ) feet with 5,000 cash in the bank. Never step foot in an unemployment line and again, these challenges are - there are statements that I make and there I can figure out how to do them. Jay: Okay. I'd been there. Robert: The one-minute millionaire. I mean a lot of people kind of think it's like the one-minute manager where you're doing one-minute techniques and one-minute strategies in a sense that is true, because the book - the One Minute Millionaire breaks the process of (unclear 05:24) well down into those little one-minute bite-sized pieces. But we are literally going to do our One Million in a Minute challenge because actually it's right there in the book. It's worth the end of the book you're reading. We're going to be on some major talk show probably you know one of the that starts with O or one which starts with an L, I don't know. One of the major ones and we literally in 60 seconds, we're going to push a button on a computer and we're going to bring in over a million dollars and net profit in 60 seconds. Now, how you do that? Jay: How do you do that? Robert: Well that's the next seminar, Right? (Audience laughs) Jay: We'll talk about it later. Robert: Is that the 50,000 thousand dollar seminar, Jay? Jay: Yes, that is, Bob. So when we talk about - how can they - can I all be a more audacious? And is it in their best interest?
Robert: Well, I'll just try to teach them. What I want you to do to your businesses is to make an outrageous claim that you know you can do, and then figure out how to do it. So what we do with this challenge, with the One-Minute-Millionaire, we did not know how to make a million dollars in a minute. We did not know how. But once you started writing the book, you said let's pull it all major experts and let's just figure out how. The first step is how to a million e-mails, which we now have. Let's takes over a year to gather a million of e-mails of people that we know - the people that are friends of ours, this is not spam. It's an often e-mail list. We just read it backwards, we say let’s see if (unclear [00:06:51]) a 10,000 dollars seminar, how many people do we need to have out of the million people, in order to a million bucks. Think about it for a minute, 10,000 dollars category we spend a year with them. We give them 5 days of business (unclear [00:07:05]). We did a personal consulting, would we need to do for a 10,000 dollar fee? And we figure it out. Let's try a million e-mails; we would need them a hundred people. What percent response is that? That's a 1% response of a 10,000. We'll we don’t need a hundred, so o ne tenth of 1% of a million is a thousand. So it's one tenth of one tenth of 1%. If I could find a hundred people out of million people who'd want to do some personal consulting for 10,000 dollars, that's a million bucks. Well maybe that’s little too stretching for you guys. What if we have a thousand dollars seminar where you're going to take your information and your ad and you're going to give to a certain numbers of people to help share with them. A thousand people times 10,000 dollars is a million dollars. Jay: Translate Robert. Translate if you can, give me a little bridge. You got 300 different industries in this room, so stretch your analogy a little bit. Robert: Each one of you has enough information on your own industry, that you can share that information with people in a non-dependent way. Though where the information that's in your head is worth at least a thousand dollars to a thousand people. In other words I believe very single one of you has a million dollars in your head right this second. Not something you have…
Jay: Defend your industry. Why within your industry? Robert: Within you industry, and even within your own life experience? (unclear 08:37) to be an industry experience. This is your own life experience that every one of you has a million dollars in your head right now. And of course the secret is finding the people that you share that message with and how you enlarge that list that can last you and in our case, we're going to make a million dollars in 60 seconds by sharing your life experience. (over lapping sounds) challenge you. You have that 10 million dollars in your head as well.
Jay: Few more questions and I would be mindful for the both of you. The first one is share the diverse ways you grow your business so they can understand that multiple streams apply to how you operate because you got - you had the e-mails. You got the space, you got the 39 dollar, you got the free classes. I think that's pretty cool. Robert: We have dozens of ways that we bring money into our business, dozens. We believe in multiple streams of incomes. We do free (unclear 09:29) that brings people into our life. We do infomercials. We partner with the companies that does (unclear 09:36) promotion based on the all the money we don’t spend a dime. Jay: They run full page ads, they do media, they do infomercials. Robert: You know infomercials, that drives people into a flask that a flask and then from the back end we teach a more highly personalized ways. We do e-mail blast, we do direct mails, we do all those stuff for (unclear 09:57) dollars. Jay: And cumulatively, the cumulative effect, it’s not only success but it's stable hedged certainty, isn't it? Robert: Yeah. You need streams of income that are flowing in while you sleep. Jay: And everything won’t work, everything won't work when you test it? One more question, I'm stuck stepping over you. One more question. You've had a pretty long term relationship with me. You've seen the attributes, you've seen what - mentally-dysfunctional with my ADDs (laughs) but I want you to give one recommendation to these people knowing that I'm trying part of it that I ever have to teach them not only marketing but strategic thinking. That you would urge them to do when they get home other than what you have already said about your knowledge of my stuff and what they should absolutely do with it to make sure they get the greatest outcome and payoff from their investment of time and effort in me. Robert: The greatest return on your investment is understanding Marketing. It is the single most important skill that you can learn. That is your job - understand how to convince more and more people to flow into your life and Jay teaches about it with anybody else. You got to learn how to find more customers. You need to learn how to find each of those customers buy more stuff on (unclear 11:17) and you need to know how to make those customers buy more frequently. If you just do all those three things, just really simple, it can multiply your business by 20-fold and the master of teaching that stuff - you created all that stuff, who is the Einstein of that
stuff, is the guy that stand right here in front of you and that is something that is hard to understand. (Audience laughs)
Robert: But get it. Get it, because it is the most powerful stuff that will change your business more than any other and hopefully one of these days you and I are going to write a book together about it Jay. Jay: I like it. Rob, you've been a great, great friend. Thanks for taking time out. Any question you want to ask us that we can help answer for you. Robert: Do what you love to do. What do you love to do? Jay: Great. Thank you and have a great tour. Robert: So that when you wake up in the morning it’s not work. I got up five o'clock in this morning getting here and after flying and getting here, it’s one o'clock in the morning from California. We got to a lot of CR on two television shows earlier night that we have two things to open my eyes this morning. So the question was sitting on that show with Mark, I felt like this is one that I was born to do. In my message is that teach people that it is possible to achieve incredible success that if you don't in the middle of all those prosperity, living in a miracle in North America, where else you’re going to do it. You find something that is so empowering to you. When you get up in the morning, you can't wait to talk about it. You can't wait to share it. Jay: I have one more point. I want amend and ask one more. I believe the biggest mistake most business has is they fall in love with their product or their company, not their clients. Do you have a perspective on that? Robert: You’ve got to find out what they want and then give it to them. Jay: Okay. Robert: It’s just really, really simple. And that’s what we’ve done over the last 20 years, we’ve just found out what people want and we’ve just given it to them. Jay: But you have a lot of respect and empathy for them, you really do and I think that’s critical. You’re gracious. Thank you so much. Say hello to Mark and knock ‘em dead. Bye bye (Audience applause) Jay: Thanks a lot, okay. Apologies, I love the technology but when you throw it in a situation like this and I spent no time so my colleagues in it
are to be admired because they’re making do with a really awkward situation in power source and everything but pretty cool, right? Audience: Yeah. Jay: And he wasn’t even scheduled. I’m very lucky. I mean I’ve helped a lot of people but they reciprocate. I can say “Hey Bob, what are you doing Monday morning at about 9 o’clock? Or I’m going to be doing an interview on CNN at about 8:30, well I’d like to go right downstairs and there is a set up there. Okay, I’ll do it. Uh oh. We were wrong by 30 minutes and 30 miles. What do you mean? Well the facility is somewhere else. I’ll do it.” Ill then write him a cheque. It’s pretty cool to have people that will do that for you with no alternative other than they want to give back. Pretty cool, okay are we ready for William? Male Speaker: We are. Jay: Okay, I got to set this up. This is so neat. Jay Abraham is all about subtle, subtle, subtle leverage. We were going to an exercise, I don’t know if they did it. We were going to turn the lights off on the art and show you the difference. We talked about headlines, we talked about their equivalents, we talked about all kinds of ways to get 20%, 50%, 100%, 500% leverage on 30-40-50 impact points. I didn’t get to the depth that I probably wanted to earlier and hopefully get some of today but that’s covered in so many categories and the grounding materials and the things we issue to you on Day 1 and the stuff on Day 2 but leverage upside is where you transform your company. Improving 20 or 30 impact points, 5%, 20%, 50% is how you get hundreds or thousands of percent improvement on the result, on the profit. You get that and it’s a lot of littles that make a big difference. I got a sleeper for you to die for and because you’re entrepreneurs, it’ll even be more leverage because we as entrepreneurs don’t usually think about how we come across; posture, position, pre-eminence, pre-emptive, look, communication, confidence and yet that’s very, very important. It’s even more advantageous to a small entrepreneur because my concept is there’s this scale and every little factor you can weigh in your behalf means that you’re going to get it and they’re not. In all due respect, most of the entrepreneurs I meet don’t dress very well, they don’t come across with a great posture and they don’t realise that that is as impactful, or that is as detractive in the process of gaining and sustaining the advisory relationship with a client as anything else. We’ve reached really far to do something really daring and the poor man’s had to tolerate my audacious clothing for the last couple of days. We got William Thelby who was not only the original Marlboro man, he’s an actor
but he wrote the book, “You Are What You Wear”. He also wrote the book, I brought it up; “Passport to Power” and he wrote the women’s book which I didn’t bring up, which is “Women the new Power Club”. He is one of the neatest, strategic, communication consultants in the world. His clients have included three presidents of the United States and the heads of many, and not the fortune one thousands but the fortune ten thousands or twenty and… Male Speaker: Individual, other top people in the country. Jay: Who are very wealthy and powerful and impactful and authoritative and highly, highly, highly impactful men and women. And I asked him if he would break his paradigm, shutter his way through thinking about how to transform entrepreneurs not into only wall street bankers but into men and women who could use the leverage of strategic communication impact more powerfully. And then we exacerbated by stating you got to teach them all this in 15 or 20 minutes. Go for it William! And he started by watching me and saying “Oh my God!” so with that state is that a fair enough opening for you? William: Sounds good to me. Jay: Have fun man! Thank you, I really appreciate it. (Audience applause) William: Thank you very much ladies and gentlemen. I’m delighted to be here and I appreciate very much the opportunity to speak to you. I’ve had the real pleasure of meeting a few of you. Had lunch, breakfast and dinner and sitting there rapping with you, I wish I could sit down with each one of you. I talked to Jay when I come with this thing and I said “You know, this is a very sensitive subject”. He said, “Bill let me tell you something.” He said, “I love these people. These people are the heart of America. They’re the one driving America. They are going to be our leaders. You go out there and tell them the truth. You bring them into the reality. Into the real world, and I love you for it.” Here you are pal, its coming straight at you, it’s coming hard and fast, it’s coming right from my heart. I don’t want you to go out there and make a fool of yourself like I did. I don’t want you to get your heart broken. I don’t want you to be at my age and still have cuts that are bleeding. Because I didn’t understand that we live in a totally different kind of society today. Now there’s always a couple of guys that say, “Listen dude, let me tell you something.” I do it my way, I package myself, I do it because I’m a producer and I can go to any company and get a job. I got news for you pal. That isn’t the way it works. Lee Congo
thought that and when Ford fired him, the media said “Mr. Ford, why did you fire an automotive genius?” He said “Why? I didn’t like him.” Now get that straight, we men, we don’t fool around. He jeopardised Ford motor car company. If you can just understand that you have one opportunity to set up a condition expectancy of trust, knowledgeable and sincerity. You will learn these skills, it’s simple. Like all the great stuff in training you’ve got this week. But if you don’t this, if you don’t get these facts into your head and move on them, someone half as nice as you, have as smart as you, half as intellectual as you are going to leapfrog you, they’re going to take your dreams, your hopes and your client away from you. And you’ll say, well they’ll be sorry. You got ten years to lose? You’ve got all this money to lose? Of course you don’t. So you got to start thinking about grabbing this. All I ask ladies and gentlemen, put it in your head, I wish I could give you all a Velum just to sit back and relax because it’s coming hard. Sit back and say this old dude may know something; I’m going to consider it. There are two things that happened in your lifetime that I didn’t have the advantage of when I was your age growing up. When I was growing up, I knew my mother and father; we lived in Bad Axe, Michigan. We lived on a farm up there and everybody knew how much money my dad made, how many dresses mother had but that’s all changed now. There are two things that changed the world. Number one, we are in the greatest migration in the history of the world. We’re in a world of strangers now. There are not southerners downstairs; I read these books where I studied, there are no southerners downstairs, there are no northerners up there, my daughters go to Europe. Hell, when I was a kid, I never went to Florida. (Audience laugh) Now everybody, we live in a total world of strangers. The second most important social influences in the last one hundred years are the automobile, movies and television. And all studies indicate that the television is much more persuasive. Why? Because it gets right in your home, all of you people have television. Our children spend more time in front of the tube than they do with family, in school and church combined. Now they’re the surrogate teacher, the substitute teacher. But it inculcates on our mind a frame of reference. People down south have never been to Harlem. They know all about Harlem. How? Called Jack to come up there and says “Hey Syros, you want to see what a crook looks like? Look at this dude coming down the street.” The wardrobe man packages that man to look funny. So every week, every night on every show, we interpreted people and are given a frame of reference with the good, the charismatic, the degenerate, the pimp, the alcoholic and what
they all look like. So you and I are walking down the street and I say “Hey Jim, you know him?” and he says, “Oh don’t want to know him. That bum.” Why? Probably a nice guy, but he’s packaged to illicit the cues and clues that immediately transform into our brain and we calculate who it is. We as wonderful human beings buy a great suit and I don’t care about that suit. I don’t care about that big watch you got on. I don’t care about those alligator shoes. I’m looking for character flaws. I’m looking at you and saying “Hey, what are you not telling me?” Come on what aren’t you telling me? What could he do? You got to get it through your head right now ladies and gentlemen. There are three things in this world that aren’t funny, aren’t cute or aren’t negotiable. That’s my money, my family and my future, just like every one of you. And you all think it. Beautiful lady here said “listen, I forgot my money, could you loan me a hundred dollars?” “I’ll mail it.” You see right away BOOM! Adrenaline hit her hard. She’s more awake now than she’s been in the last three days. Why? Because I’ve touched one of the three things that affect them, so you got to start thinking about all these things that have changed our world and now become important to you. This is terrible. This is terrible but this is reality. I’m sitting out there and I see a guy come up and said “I made a million bucks” and I’m thinking, “That guy makes so much more than I really do”. Then I look at him and say well, if he’s doing so great, what is he wearing that dirty sports shirt for? Number one, I wouldn’t even own that sports shirt and I wouldn’t appear in public in it. And the guy says “I just got my hair cut, what do you think?” Who wants a fool-fool hair cut? I do business with people who I can trust. I do long-term business with people I trust and like. And if you’re not there pal, I don’t care who you are. Corporate has a very sophisticated way of flushing out those that aren’t sophisticated. And we won’t say it to your face because you’ll probably sue us now. In the old days we would have threw you out. Now we have a sophisticated way of plateauing and then flushing you. Now you want to start thinking about everything you have on. This is an exact science. It’s called impression management. You attempt to control other people’s perception of you by the way you package yourself. Now you’re just tired of hearing all this garbage about I don’t want a blue suit and a white shirt. Well where is it? Is it home? Why trust what I see? Studies show that the eyes are sometimes more connected with the brain than the ears. So the eyes would input when we gather information to interpret and understand who you are and how you are coming at me. We live between hope and acceptance. That’s where 95% of the people live in. The winners live between hope and just drive. Every winner that wins
has one thing in common, they go out and do it and they always believe in their heart that the answers will come forth. And that’s what you’ve got to do. And you’ve got to start thinking that everything you purchased to wear that, “What is this saying about me? What is it saying about me?” And I tell you ladies; don’t put anything on display that’s not for sale. Because you’re going to get somebody out there that’s going to ruin your career and he’s in the business and they’re going to start saying things about you that aren’t true. Everything you buy, you people look at your outfits and I know that your designer is a four-letter word called “SALE”. Start thinking about putting your money where you make your money and we’re all that way. I’m not complaining about you, I’m telling you about myself. I got four, fabulous, beautiful daughters and believe me, I adore them and I give them a cheque Christmas time that I wish somebody gave me. Now I’m looking at the thing here to fix my toothpaste so it’s always filled and its $3.95 and I say “Well I’m not going to pay $3.95 for that thing”. My value system stinks. You got to start thinking, put your money where you make your money. Now we don’t have time to go through all the things you should be doing, by in the way you buy your clothes but the way you package yourself is the only tangible evidence that I see in front of me. Now the three most prestigious research organizations, I guess in the world, Harvard University, Stanford university institute and Cardy institute; they studied why one person becomes a success and not the other. And they all came up with the same answer, 15% of the reason that you people get a job, hold a job and advance in a job are intelligence and your skills. 85% of the reasons you get a job, hold a job and are promoted in a job are people skills. That ability to walk into a room where no one knows you and set up an instant condition of expectancy of a person that’s trustworthy, knowledgeable and sincere. If I had the whole day, I guarantee you, if you’d grab these things and run and get on a plane and go to any place in the civilized world, when you walk off that plane, you’ll be a person of substance, background and ability. And proven success and I am open to anything you say to me, anything you want to say to me, at least I’ll consider why, because you look more successful than I do. Tricky clothes are for tricky folks. And you start buying all this stuff saying “Bill give me a break. This is down time! I was told to wear a jean.” Wonderful, why did you wear your dirty ones? Now come on, you’ve got to start thinking about what you really put on your back. I look at some of you and I don’t know if you’re the janitorial service or you’re probably making more money than I do. It’s wrong,
rotten and immoral but this is the way the world is run. So what’s new right? So the second thing that we make a great mistake in is what we call “physical management”. Physical management is the language of the silent gesture. Now if I walk into you and you say “Well Gee Bill, it’s pretty sincere there and I sort of trust him” and then now big Bill opens his big mouth and you say well “Bill do you really make a great living at what you do?” And I go “[laughs]…well sure!” Well you know right there I’m dead right? I’m dead in the water. You’ve got to start thinking to yourself just like you’re going to the gym. You’ve got to everyday. Remember people who go to the gym, you should all go but remember the first day you go “Gee, look at these dudes”, all dressed up with the big muscles and the women with - and then you sat down and you started going like this. Three weeks man, you’re going to your buddies and you’re saying “Come on to the gym and I’ll show you how”. This is the same thing; you’ve got to discipline yourself. I got
Jay Abraham Mastermind Marketing 26 William: Oh sure! You know right there I am dead, right? I am dead in the water. You have got to start thinking of yourself just how you are going to the gym. Remember, people who go to the gym say, "You should all go", but remember the first day you look, "Hmph, jeez! Look at these dudes. All dressed up with their big muscles." You sit down and you do your routine. In three weeks you are going to your buddies and saying, "C’mon to the gym and I’ll show you how." (Audience laughter) William: This is the same thing. You have got to discipline yourself. I relate this all to the gym. If you can think when you were a little boy or a little girl, when momma held me up and said, "No, c’mon Bill, put that leg - Oh aren't you wonderful, aren't you wonderful you got that little leg up". It got to motor movement going. When after a few days of that, little Willy here grabs a chair and pulls myself up and I am walking by myself. That's motor movement. Then it goes into muscle memory. How many of you people have lessons in walking. How many people have lessons in what to do with your face? How many people have posture lessons? We don't have time for that, right? We just go out and do it. So, here we walk in a place and the guy's walking in like that, [unclear 00:01:16.23] probably got a lot of muscle but no brains. You got to start thinking about everything you do. You got to see the way you walk. Everybody gives it away from their face. You change the look on your face you go, "Huh, hello, what you doing?", "I don’t know...", "What?" "Eh..." You got to start thinking. This is the mirror
to your soul. Then you wonder why we abuse you. Why we gave you the lower salary. The president of the company told me, you haven't filled that job - human resources - 75 big ones. You say, "I got a guy coming in. He's got a tremendous bio". The guy comes in he sits down. He says, "I really like him. Coz I see - boy you’ve got the smarts, you‘ve got the looks, you got the appearance you got it all; but I look at your shirt and I can tell you have worn that shirt twice". I look at those shoes which he has tried to shine them but they are little worn. So I know right away that I got to, "Oh boy you are a sucker, I could work". So I say, "Well, look, I love you and I am going to give you a break. This is a blind ad. We are not even hiring. I can't guarantee this but I am going to speak to the president of the company and see if they will hire you but you know, we are not Bill Gates. I can give you 45 thousand to start. But, there will be continued escalation of salary". This is what happens every day. I know by looking at you that you are struggling. I make it a point, when I walk down the street and I see a guy passing on something, I always take it. I figure, there's a guy that's got a 100 bucks to change for his whole business. What does he figure would really hit me in the heart and change me? So I go home and look at it. I try and learn every day to improve my skills of walking into you and saying hello. You know physical management - I have to teach half the executives in America how to shake hands. Think about it. These are mature guys making a $150,000 a year, can't even shake hands. There are three things you got to know. When you shake hands is same as when you walk. You’ve got to start thinking your face. The face gives away everything. Get that nice pleasant look on your face and if they say, "Bill, would you like to buy these?", “Nah, it's all wrong, we have already bought something like that". (Gesture) You keep that same winner look on your face and you say, "Gee I am sorry you feel that way". And then shut up. (Audience laughter) William: "Well, Bill I was thinking maybe it's not right for us now, you know", "Oh..." Start thinking when you are sitting in front of them, how you would do it. The third thing that you have to do in this thing, is what you call, 'Verbal Management'. Everybody thinks they should never tell them. I sit around you people and one says, "you are having a hip operation, you have got a bad hip, you have got a bad elbow, my wife is always sick" - you know. Do you think I want to hire somebody with a sick wife? Do you think I want to hire you because you have a bad hip, because you are going to be limping around my office all day? Listen, we are very selfish people but you are telling me things which you should never open your mouth about. You want to be the local bore. Whenever you bump into somebody they say, "How you doing?" You stop and tell
them. All we want to know is, great, the best. From a scale of one to ten I am flying on 14 - "How are you doing pal?" You want to shut them up say, "Geez you look fantastic, things must be going well," he goes (gesture). (Audience laughter) William: You know it's always one, two. It's never ONE, TWO. When you put something, in my memory bank or your memory bank, it's irretrievable. Think about it. You can always keep your mouth shut you know and not give yourself away. We men, I don’t know how we were brought up, but we seem to think when we are out with our buddies we tell them things we should never tell them. I bump into one, five years from now and I say listen, "You are over that big company, are there any openings over there?" What do I think about, that you are great guy and I love you and we went to high school together? Remember old Jimmy and I went to high school together. You think I remember that, No. I forget where I put my glasses, I forget where I park at the mall. I never ever forget that you told me when you were a kid you got caught stealing a bicycle. I never forget you because you told me you went trick ‘n treat with drugs. "Oh, I never do it anymore, Bill." That's what I remember, like a steel trap. Because there are three things in this world that I don’t think are funny or cute - my money, my family and my future - and we never ever, ever change. When you start opening your mouth, you better saying some good stuff. Now listen, this is the opportunity of a life time. One of the fun jobs I had; I played Jane Mansfield husband on Broadway for three and a half years. I was the most envied guy. Made love to her every night in the hall. She started telling everybody that she had 186 IQ. I loved her. She was a super lady but whether she had that IQ or not; I don’t know. But it was in every newspaper of the world. The point I am trying to get to you people is that you are like a jar. Every little drop you put in there, you can put it. Do you ever think about it? But don’t be some idiot who says, "I am really smart". That's a kiss of death. But if you do something, subtly, softly and you so good at it that you are out on a party or something and everyone's laying back after having a few drinks where they say, "This was humiliating the other day. I went over and something horrible happen," you say, "Listen, I know just exactly how you feel. When I was in high school and they us IQ test and I was 190, I was the joke of the whole school. Everybody teased me for my entire time in school." I'll forget where I left my car at the mall, but I remember you pal. You told me you had an IQ of 180. Now, the head of the company comes to me and says, "Bill, we need two women and two men for an overview group at the company." Who do I go to, my buddy, who knows where all the single joints are? He who stands on his head and drinks beer, no. I go to my buddy here that's a genius - why? Self-serving, self-serving, self-serving.
We insulate our self. I don’t advise you all go out and tell everybody you are a genius. Drop the vignettes that help. Jeez you people go out and give an organ recital. "My kidney; I used to drink when I was a kid and I am having a little..." What are you doing? You are poisoning the well. Now, I have known a lot of people. All the celebrities I have jumped around knowing, I worked with John Wayne; I was his double in the movies. I worked with Sinatra. They all had charisma. You think boy, I wish I was born with that so do they. John Wayne told me a story when we was coming up and really making a mark. He said that Garry Terry, who was a great, great character actor, in those early days movies. As a friend, John had him in every picture. He said, "I like to individualize the way I walk as a cowboy. I don’t want to be like every cowboy in town." Garry said - an old timer - "the silence of silence gesture and how they telegraph; John, I am going to teach you in thirty seconds". He took John over, he stood him like this and says, "John, when you walk, don’t like the other guys, turn your toes in just a little and watch what happens". (Audience Laughter) William: Now I am not saying you people to start walking like John Wayne. Jane Mansfield used to have pictures of Marylyn Monroe. She had 50 pictures in her dressing room. I'd go there at night and talk to her. She was always going (gesture). By the time she went to Hollywood, she was Marylyn Monroe. The idea I am trying to get across to you - everything you do telegraphs to me who you are. When you stand up today folks, don't just go (gesture). Go, Uwah! And start walking with some fluid grace. People get out of your way. You'll love it. But if you continue going on like you are now, pretty soon - George is so good - kiss of death. What this world needs is no more tired blood. It needs people of energy who are looking ahead and who can insulate my position, bring business to my company, and add to my social structure; anything that can aid me. You know when you learn, when you mature above it and really begin to do well, you begin to let go of the fears and some of the angers you had in there. You realize, for the first time, the only color the world really loves is green. Like in green back. The only picture everybody wants is you know, Roosevelt, Lincoln and all these guys, Hamilton. Those are the ones - if you can show me how you can bring something into my world, I love you trust me. The fourth thing, 'Emotional Management'. Again, you get livid, you feel it inside going, “Mm, Hehe...” You want to kill these people. First thing you do is you ask yourself, is this criminal? And the guy says, "You know, I am not going to buy it, we are filled - get out," whatever he's telling you don't like. Ask yourself, "Is this criminal?" No, you idiot, are you
kidding. In the next thing you ask is, "Will it make any difference in ten years?" In ten years, I wouldn't even know this guy. Then ask yourself, why is this upsetting me? You have got to do this, so I can go to the gym; it's not easy. It's simple if it's not easy. You got to do it like you go to the gym every day. You have got to think this way. You write that up in a yellow sticker, put it on the mirror up there and look at it every day when you are shaving or putting on your makeup. Learn to detach. It is a power you cannot believe. You say, "Listen guy I have got news for you. You work in my company, we got this dude over there, John," I say, "Yeah..."; "Nobody gets along with him Bill, nobody. He hates everything I bring to him - he says "What?"". Now I take you over to the side for lunch in the company cafeteria and walk over to you and say, "You mind if I join you?" "No Bill, please sit down." And you start giving me, "John hates me, he's doing this. Nobody in the company likes him over there and bla," and I say, "I was hoping it wouldn't come up. Because, this is going to be resolved very shortly. You see John has terminal cancer and he's got thirty days to live. I was hoping that this would just work itself out". What have I done? You get along with John now, right pal? Miss you could get along with John? Why? I have pierced your emotional steal; your barrier. We all have these barriers and they are all so serving little barriers. They asked at the table the other day, Jay says "What is the one thing you have learned from all this?" The asked me and I said, "I am the biggest problem I got". That's what I learned. All these things are available if I go out and do them. What holds you back? Fear. The fear of being humiliated, embarrassed and everything. You've got to ask yourself, what's the worst that could happen? Well, that's already happen to me over there, I remember. Try and detach yourself. There are only two kinds of problems in the world, you know. The kind that you can do something about that are the great ones because, we can solve those. If you have a flat tire you fix it. Your house is burning down you phone the fire department. A legal problem, sometimes you can't work it out but you can hire a lawyer and you may not like an outcome but it's over and life goes on. The subconscious and subjective problems are the toughest. You can't control those. What are they? Love, fear, anger, disappointment; all these kind of things. You learn to negotiate them. You learn to put them in proper perspective. You've got to learn to detach these things from tearing you apart. They are going to wear on you. When you get into financial problems with your company, instead of being lucid and saying, "Now, I remember that seminar, right, the first thing I do; Uh Yeah, okay,” and you start working at it. Emotion is the one thing that tears that most of the people in the country. It's a thing that holds most people back - Negative emotion of fear. Especially we men. We are brought up to believe and understand that if we are successful we get beautiful girlfriends, beautiful
wives, big cars, and big homes. And if we are not successful we get what's left. (Audience Laughter) William: We go out there. Look at the corruption, the thievery, and the shortcuts men have taken to try and get there. They say, "What about women?" What about them? Yeah, they've got Martha and they are all jumping on her because there's one women that did thousand guys so we've got "One woman here and look what she did". What we men have done to this world, I don't want to waste any time on that one. You start thinking of yourself as a product. It's pretty simple. Either you are going to be bought or your competitor's going to be bought. It's that simple. You say, "Don’t worry about the opportunity that was lost" It wasn't lost, pal, someone got it. The four things that change your life; you've got to reinvent yourself and think how lucky you are that today you can do that. When I was growing up you couldn't do that. We were stuck in a channel. You can reinvent yourself so that when you walk into a room, ladies and gentlemen, all the studies show, they make ten decision about you. WHAM! How much money you make? WHAM! What kind of social position are you in? WHAM! What kind of education and everything. There’s always somebody who says, "Well I'll tell you something. I can't tell that stuff about anybody". Really? I say, "Pal, look at that guy over there. How much money is he making? "How would I know?" Well are you going to hire him? How much money do you think he's making? What kind of education does he have? "Well, I couldn't tell anybody's education". You couldn't tell anybody’s education. Does this guy has MBA? "MBA, are you kidding, the only thing that held him back from college was high school". We are such nice people we don't want to hurt your feelings. Men, we are so looked up in the fear of rejection and failure that we won’t even say it. When you walk out of here today, the Litmus test for a weak link is they say, "Ah, that old dude up there shooting his mouth off. I don’t believe any of it, you know". That's how you tell your first weak link in your organization. Because, they cannot handle the fear of change. Women by their very nature, gentlemen, are much better. They see this as an opportunity to grow. You must do that. You must grab this and realize you must reinvent yourself. You don’t have to open your mouth and say how foolish you are. Or how much you haven't learned. Just sit back. De Gaulle said it best, "Silence is Gold". That's power. Your ability to walk into a room and have your package that says, "I am trustworthy, knowledgeable, sincere, learn how to shake hands -" Actually I'll tell you how to shake hands. He doesn’t say (gesture). Learn how to shake hands. There are three things you first do. You don't go, "Oh..." (Gesture)
(Audience laughter) William: You say, "Hey pal! How are you? It's good seeing you". First thing to do, 'Telegraph Intent'. Right now, right here; hands that lock like that. You shake his hand once and let go. It sounds so simple. Ladies, trouble with men is, we are so macho that we won't go and say, "Hey buddy lets work on it a little". Oh no, we are too macho. So we go through life "Hello," "Hello". (Audience Laughter) William: We have talked about these things. I wish I had a day. I want to teach you how to walk, I want to teach you how to talk. I want to teach you what to say and how to answer every question. It's so simple. You are only going to be asked ten questions all your life. Why not get the answers now. The power to knife right through; the focus - like a razor. Now, I have told you all these good things. I am a couple of months older than all of you. I hate to tell that to all these beautiful ladies. If I have learned anything and I have learned quite a bit, because I was a very selfconscious kid who kept his mouth shut for most of his life and watched other people. That’s where I learned. You can go out of here with all the information that our leader is given you and make money, go up and up and up; but one day, you are going to mature to the fact that without love you got nothing. You have nothing. I don’t care how big your house is, unless you have someone that comes over and puts their arms around or you go over to your wife and say, "Sweetheart, you know how much I love you. You know how proud I am to have you as my wife". I went home several years ago after Hollywood. I was out there first time in my life making any money and buying beautiful counter shirts with waterfalls going over the shoulder; my girlfriend says, "Bill, you are the best dresser I have ever met", and I am thinking it's true. What did I expect this lovely lady to do that I am taking out to dinner every night say, "Bill, get off the streets you are making a fool of yourself". I went home to visit my folks one time. Following morning the phone rang and he said, "Bill, It's Jimmy. I heard you were in town, let’s have lunch. Can you do it?" I said, "Love it!" He said, "Meet me in Coney Islands at 12, I'll be there". We sat and had out two hotdogs with chili and a chocolate milk like we were two kids again. He was telling me about Mary and little Jimmy. He says, "C’mon, lets walk over to the old waterhole, I don’t have to be back yet". So we walked over to the - now a park - waterhole, back in my days. We sat down on the bench and pretty soon, just looking out at the great river that separates Canada and our little town. I sat there in a flood of wonderful memories of my childhood. I was thinking of the days when we used to come down here and dive in and swim in front of the girls. It was fabulous,
kind and wonderful days. All of a sudden I saw Jim get up and walked over to the spiles and leaned on the spiles. He sit there for a minute, then he started talking to me. He was thinking instead of talking. He said, "You know Bill, sometimes you forget. Life hits you so hard and you are driven by being successful and all that. I was at work one day and I heard that our boss was retiring. They were going to take someone from our department to run the department. I made up my mind that I was going to win. I was so focused. I was the first one there and the last one to leave every day. About the second month in, I get a phone call. It was from Red". Red was a kid in high school who is now the chief of police. He phones him and says, "Jim, little Jimmy was picked up in the dime store today, stealing. They are not going to prosecute him..." "Wait a minute! You must be crazy, my Jimmy doesn't steal". He said, "Jim, the stuff was in his pocket, he's right here". "Hold him, I’ll be right down," he said. He said, "Bill I went out and jumped in my car, I raced down to the police station. I ran back there and walked in. I looked him up there with the kids and asked Red to excuse us for a moment. What's wrong with you?! Are you nuts? I am tearing my guts out down there trying to make a future for your mother and now it's all over town that my son's a thief? You think you are going to promote me?" He said I took my belt and gave him six whacks on his rear end and I said, "You are grounded till I tell you to not". He said, "I went back because I was so mad, I would kill. Bill, three months later, Frank got the job. It was humiliating. My back was in a spasm. They practically had to carry me out to go over to the hospital. I stayed in the hospital all weekend. They gave me some drugs to loosen me up I guess. I spent three days out of the office, winding down and thinking, where I am? Who I am? And what have I got that I love? I did a lot of thinking Bill. I was back at work in a month or so, I get a phone call, "Jim, this is Red. Listen, we picked up Jimmy again. They said they wouldn't prosecute this time but I am telling you, if he does it again, he's going to jail. He's here". He said, "I went out of the office, I went to jump in the car. It was Friday and I remember it was Mary’s day for the car. I started running. I was halfway there when I started thinking about all the thoughts I thought about in the hospital. I walked in the police station. I walked in the back of the room in Red's office. I looked up at my little boy up there. He's sitting there and he's crying. Tears are coming out of his face and he's shaking like a leaf. "Dad, I'll never do it again". Jeez I looked up there. I realized that I hadn't hugged or kissed him or told him I loved him. I can't remember when. I asked Red to excuse us. When he left, Jimmy said, "Dad I promise I won’t do it again. I said, I know son you won’t. Come here. We just stood there and hugged and kissed and asked Jimmy to come home. We still live on the second street. Mary must have been in the front room because she came out. For lunch, she packs a little bag of sandwich and get my coffee
down there. She comes out and says, "What's wrong Jimmy?" I looked at Mary and it was like I have never seen her before. I look at her and realized that poor girl has never gone to the beauty parlor since I have married her. That dress is the one she owns when I married her. I just did something I never did in my life. I am a very conservative guy, Bill. I ran in the middle of the street, grabbed her and hugged her and asked her to forgive me. Mary’s the only smart one in the family, Bill. She got us inside the house. We just stood there and we hugged and kissed and told each other how much we loved each other. It's the greatest day of my life. You know something, Bill. I fell in love with that woman all over. I realized that day where my real wealth is." When you are alone tonight in the room up there, ask yourself, when was the last time you told someone you loved them. When was the last time you went to your husband or your wife, put your arms around them and said, "I am so proud to be your husband, I am so proud of you". Ladies and Gentlemen it's been a privilege being here today. Go on God's way. Thank you. (Audience Applause) Jay: One question. Just so I get this right. When I walk into a room I don’t do this, right? That's wrong? Okay. You succeeded my hopes in a very different way. What one other thing, besides the most wonderful point you made, would you like me to think about, in there. I have the belief that they don’t realize that confidence, authority and leadership is so important to convey. I try to do it with more fun here because I want to differentiate that I am not really out of control, even though I have an attention deficit. I want to change clothes because I want to break your paradigm. I find, that when I go into a room and most people take me relatively authoritatively. I go to parties I have to admit to you, women like me. Most men talk to men. I talk to women. It's a lot more fun. William: Wise man. Jay: You did such a wonderful thing for everyone; I am so appreciative of you and thankful in their stead for you. What other thing would leave having them think about in just whether they wear a suit, whether they wear a polo shirt. What would you leave with one more thought? William: The one thing that I believe about myself. I had a college education. I can't remember what I even took. (Audience Laughter) William: He said so many times during this thing, your pain is where you learn. You don't learn from success. That's ego, you learn from pain. When I was a kid, I was 6'4". My parents all came up to here. In those days they
didn't have tall kids. My feet were so big that my mother took me down Detroit and got me navy shoes so I go to church. I had pimples all over my face. I became very self-conscious. It was really embarrassing. The good man upstairs takes care of all of us. What he takes, he gives. I learned to be aware. When you people walk up to somebody and say, "Hey how are you doing?" I walk up and I train my self - I know the length of your hair, I know whether you go to a professional barber shop or you let the barber massage your hair and tell you how good looking you and while giving you a lousy haircut. I know the thickness of the soles of your shoes. I can tell you what you have paid for everything. I calculate who you are? How you could touch my life and how you could benefit me or detract from me. Awareness, awareness, awareness. Ladies and gentleman, it's no genius. It's just like going to the gym, today. Start looking at everybody the same way. You don’t go (gesture) (Audience Laughter) William: You size them up and you calculate everything. It's served me, I can't tell you. Thank you. Jay: I love surprises. There's a method to all of my madness. Believe me, every element of what we are doing is being done for a benevolent reason. It's more important than understanding technical marketing. Okay, Winton, are you ready? Are you going to follow up? Get ready for this. Winston Churchill - true name. Actually related to Winston Churchill? He'll explain that. Has probably a better understanding of a real opportunity in using the internet and using the worldwide web, that almost anybody I know. He has worked for five or six of the largest technology corporations of the world. He was the executive vice president of Act which is one of the most pre-eminent contact management software. He is a consultant who gets paid a lot of money to help companies develop lead generation and conversion programs to sell very expensive items. Fortunately for us, been a J. Abraham enthusiast for many years so he understands the entrepreneurial world; the corporate world where never the (unclear 11:09) show me where the advantages and the opportunities of borrowing from each exists. He's going to do a very relevant hour. The title is, Winton... Audience: (inaudible) Jay: Okay, are you ready? Take it away Winton. Audience: (Applause) Winton: Thanks a lot. I have been enjoying this seminar like of you. It's a little disappointing that you have to get up here and talk because I am
going to miss out on something. There's a lot going on at the tables. This is a very valuable experience as entrepreneurs getting started. I find, if I can have my first slide... Jay: Those of you I asked to call in and see Terry, I am supposed to tell you to do something but I don’t remember Rick, what am I supposed to tell them to do? Rick: Row names that Jay called off earlier, as soon as possible. Jay: Also I am supposed to announce that there's a box up here for all of those who wanted to do project with Marshal and I. It's up there. I apologize but I was supposed to do it two sessions ago. Forgive me. Go ahead. Winton: No problem. Okay can we have our first slide up there? With a name like mine I find that if I talk to an audience, the first five minutes people are saying, "Is that his real name and is he related?" And unless I answer those questions right off the bat, people are kind of teetering all the way through the first five minutes. So in the interest of getting that out of the way and satisfying those two questions - next slide please. I am not named after Winston Churchill, I am named after the car called the Winton Six. It was the first motorized vehicle to cross the United States back in 1897. In fact, there's a story about the guy - Winton that built the motorcar. One of his prospective investors said, you are crazy. In order for this thing to work, you would have to pave every dirt road in the United States. It was kind of an interesting perspective. Next slide please. Yes we do have a common ancestor. There was a branch of the Churchill family that came to the United States. One branch stayed in England in the late 1600's. There's a little bit of relation there. Next slide please. The world of email is a very mystifying place. You can buy manuals and books and tapes on how to setup email system of one kind or another but there is a context that you have to look at in order to fully understand the process. Interesting show of hands before from the people that have spent money thinking they were going to make some more and didn't. There's a lot of that going on the email space right now. One of things that I am going to do with the presentation is go through and give you some of the critical factors, the context the surrounds the process of doing email. We are going to go through that first, then we are going to go through some very specific details on email systems and what a lead generation program look like, for example. Some of the issues you might tackle as you turn to email to tackle you sales and your product. It's interesting, I had my first exposure to direct mail in about 1972. I started an electronics
company. Left college after two years. An engineer and I built an obscure piece of test equipment at that time for this new technology coming along called, Digital Circuits. My first exposure to direct response or direct mail was, we had raised a little money so we did some advertising in magazines. We got some nice, big full paged ads and some of the industry trades and got no response from it. We were out of money. Now, I had to figure out what to do, that we are out of money. So I bought a mailing list of a thousand names of electronic engineers and coupled together a brochure that I now know makes probably most every mistake I am going to tell you not to make as we go through this presentation. And I send it out. In those days with email things happening fast - everything in 48 hours. But with this thing you had to send it out and wait for three, four, five days to make its way across the country. Then you wait for people to respond and you have to categorize the responses as they come back which can be a trying thing. It's kind of like golf. If you are a bad golfer you usually are still going to hit one or two shots every time you go out. That was what propelled me through that process. I got two leads out of the first thousand things I sent out. The point there is that even if you do something not to perfection you can see results. The good thing about direct response is, Jay teaches it and that's why I am such a disciple of Jay, the ability to test and measure as you are going through a process, will educate you at your own seminar - put you to school on what the technologies are, how to use them and how to make the greatest advantage of what you learn. Next slide please. One popular misconception, and I run into this a lot with clients. They have spent quite a bit of money on website. As many of you notice we lost about seven trillion dollars in value in stock market over the last few years because this thing, in part called the dot com revolution, crashed. The dot com revolution was based on the idea of build it and they will come. You put a website out there in virtual space and people will make their way to you. Next slide please. Websites are good for things like, talking a little bit about your company, product, service offerings, PR; that sort of thing. Next slide please. Most investment in website goes down the drain. There are hundreds of dot coms that no longer exist. You are very unlikely at this point in time, and I know this will contradict some of the people that have been here that have dot coms that are doing well; it's a very difficult way to go. The entry costs are very high unless, you have some posy or congregation of people that are otherwise associated with your business. You can drive them to a website but you are not going to build a website and have people find you out there. Next slide please.
Does anybody know what this is? It's a specific fish. It's Grunions. If you live in California and I imagine all the way up to West Coast, this is a kind of an interesting fish. They come up on the shore with the tide on a full moon. The female burroughs into the soft sand and lays her eggs. Then the male comes up and fertilizes those eggs. When our kids five, six, seven years old, this is a fun thing to do. Take the kids to the beach in the full moon and the waves come in, the waves go out. These things come up, they go out and pick them up. In fact in California you don’t need to have a fishing license. It's the one fish in California you are allowed to catch without a fishing license. You pick them up and put them in a bag and it's quite fun. We went with the kids, the full moon is out there. It happens to be two ‘o clock in the morning. The waves come in, go out, nothing happens - come in, go out. Pretty soon you start to see these fish flopping around in the shores. The waves go out and they are doing their thing. Pretty soon a wave comes in and the whole beach is just covered. It's a fabulous site and as you can imagine there's a lot of excitement. The night we went there were probably 400 people on the beach with kids and their pants legs rolled up and everybody is wet and sandy - picking up fish. They pick up about a hundred fish and they only keep two or three because they are slimy and they squirting out everywhere. We go home at three o clock in the morning. About two years later I am watching the discovery channel. They had this guy from the Scripts Oceanographic Institute. He's talking about the Grunions and being a fellow Grunions fisher I pay attention to what he has to say. The interviewer talks about how the whole process goes on. He says, "What do you people actually do with the fish? Usually they take them home, in a plastic bag, put them in a freezer and throw them out in about two to three years". Audience: (Laughter) That's what most companies do with their leads. Whether their email or some other direct response kind of thing. Very common that leads are not responded too. One of things you have heard here is the importance of taking action on what you hear. If you produce a giant crop of leads; unless you take that action, it's all for nothing. You want to use a technology like email that can be belligerently consistent, once you set it up. To do that consistent follow up. To process those leads as they come through your process. Next slide please. A little bit more about Grunions. As people respond to some kind of offering that you make - a critical concept which Jay drives home so well, the top part of the pyramid, people are buying right now. People are ready to buy they are an inactive process. The next part of the pyramid; they are buying soon. The third tier of pyramid; they will buy over time and then a
small portion of the pyramid will never buy at all. You want to concentrate not only on the first portion but on the band two and band three. That's where email marketing through automated releases of information can continue to mine and lather up, for lack of a better word, that particular audience, to predispose them to use your product. This is another concept that Jay talks about. Next slide please. Life is a moving parade - customers do things on their schedule and not yours. You do a promotional email. Unless you are doing a regular sequence of follow up, you are not going to hit them at the moment that they need your product. They may have just changed jobs. They had a bad quarter. There industry is changed. They may have expressed interest in your offering at some point but unless you are continuously in front of their face, not overwhelmingly. Certainly everybody here that has seen what Jay has done to create this turnout, you can see that you can get a fair number of emails without getting irritated and produce a result. Most people dramatically underestimate the frequency they can use to contact people with useful information and accomplish a result. Next slide please. This is for people in the room who have larger companies. Who might have a sales for of five, ten, twenty people who are dedicated to sales. Underutilization is a severe problem with sales forces, today. We see people that are having to layoff, downsize, rearrange. Sales people go out and they get marginal prospects into their process. The marginal prospects take more energy, more effort to bring to a sales. Many of them cog up your funnel as you go through a process. One of the concepts that you want to understand and one of the values of doing email marketing is you can eliminate this underutilization aspect if you have a multi-person sales force. Next slide please. These are not in the book but they will be available in email after the presentation. We'll work to see that you get all these slides. It's tough out there. This is the worst economy that I've had to sell in, in the last thirty or forty years. If you look at it statistically, you could go back a hundred years. The stock market’s gone down longer than it did during the great depression. It's a very difficult market. One important thing to understand from a mindsets standpoint is that money is much harder to get from prospective clients today, than it has ever been before. So there has to be a degree of sophistication and how you pursue that money. That ties in very well with Jay's strategy of pre-eminence. Next slide please. One of the things entrepreneurs do when times get hard, is they reach out to business that is not really there core business. One of the things that I try to do with email marketing programs is help people concentrate on the
areas where they are a pretty good fit as opposed to having them spread out in the outer zones where they are not a good fit at all. Next slide please. One of the things that people forget, in the world of website and email marketing, is that there is a distinct process and distinct steps to the sales process. I know the other day when somebody asked for a show of hands, there were a couple of people here that are in a one-call, closed kind of business. For everybody else, there's a series of steps that you go through. Some amount of warming up, bringing along, educating it at some level and then moving towards a close. The clients that I work for do that. Some of them do it over the phone. Most of them are sort of technology clients or high ticket sort of clients. A win for them with an emailing lead generation program is getting invited in to an appointment. Let’s touch on these three areas. We are going to go through these twenty concepts that will set the stage for the specifics of the email program. Next slide please. This maybe the most important slide of this presentation. If you understand none other slide but this one, you would have received value. What happens now? The column on the left there, represents the amount of activity in time that goes into engagement activities. This was a survey we did for a client. They spend typically a hundred hours filtering through leads, making telephone call; that sort of thing, to get to about 30 hours of meetings that they have with the clients. Once they get to that meeting they go to the proposal phase. Once they complete that proposal phase some subset of those people actually close and become clients. The promise of email lead generation is you can take pretty much all of the engagement activities and move those to a system that automatically does those things. He was talking this morning about making money while you sleep. That's the component that email can best address. If you make a $50,000 product you are probably not going to sell a lot of them on a one-shot email, but you can get your sales people in front of the right people. Clean a lot of the garbage out of their funnel that's never going to close and move them into a closing situation. Particularly with hi-tech or high ticket products, the sales people that you have are very relationship oriented. They are very good at relationships. They are very good at bonding, listening, understanding needs and solutions. They are terrible at tele-sales and going through leads. It wears them out to those kind of things. So if you can create a process that gets them invited in at best or at least gives them a well-qualified lead, you are far ahead of the game. Next slide please.
This is again for a specific client. In the past in a complex sales process. I define a complex sales process as more than one step. This applies to greater or lesser degree to everything that you are looking at. You see your marketing department or you might do some lead generation and some kind of qualification at a level. Then you rely on you; if you are selling, or your sales team to do all these other steps - quite a bit of work. Next slide please. The goal today I think is to drive, to balance where you have quite a few of those initial lead generation steps. Particularly the activity intensive, repetitive, rejection heavy steps pushed into an automated mode and then save your special resources, you relationship oriented sales people or your best phone people to accomplish the direct selling. Give them a richer hunting ground, if you will, to search. Next slide please. Forget the decision maker. In the past, a lot of people said that if I could just get to the CEO, CFO or the guy who runs the machine tool shop, there’s a concept that there was a right person to get to. Experience, recently has shown me, going back to at least two years that as the economy has contracted. Companies have laid off people. They have rearranged responsibilities. The senior most people are in a crisis decision mode. They are getting interrupted on a quite frequent basis. The decision maker is no longer the person that can sit down and thoughtfully evaluate your proposal. What you want to do it find somebody in that organization, who agrees with your perspective and then have them advance your sales opportunity, in that organization. Next slide please. Reduce or abandon legacy marketing. How many people like to be sold to? There are a few that would like to be sold to but most don’t. That is indicative of the general population. Whether they be in a business to business environment or a business to consumer environment. They don’t want to unleash Lester here that's pestering with your phone calls and - "I want to do you plumbing, I want to review your insurance policies". People are very unreceptive to that at this point in time. For a company that has a portfolio of things that they do, you might want to consider doing less of some of these and funding some part of an email program or some other persuasion strategy that is less offensive to your audience. Since, I have been here in the crowd and the tables, a number of questions about newsletters have popped up. Newsletters is one of those things that fall in the category of - an entrepreneur will show you a newsletter and say, "What do you think of the newsletter?" The newsletter looks great but do I think it works in terms of persuading a customer base or prospective customer base to do anything? Not really. We all don't want to get 15 pieces of information about your company. Maybe a few pieces of
information about your industry. In fact I talked to somebody here and they said, "There's this guy whose newsletter I have signed up for. He had some really good stuff in it. I read it the first time, I signed up. After that it kept coming. I would go to my In-Basket and I would look at it and see that it was there. I would put it off in a file to read later. That file now has two years’ worth of that person's newsletter that I haven't read". So if you are doing newsletters, those tend not to be a persuasion activity. It can be a very valuable information activity for a current customer base but tend not to be a good persuasion activity. Next slide please. The alternative is to develop a program that provides a continuous flow of leads. Most people don’t get the continuous part. This is an essential word in terms of how you want to think about leads. I can guarantee you of somebody who has been thrashing around selling things one way or the other for the last thirty-two, thirty-three years that you will always need leads. You will always need a new flow of leads. Unless you put a process in place to produce those on a continuous basis, you will get to the point where for example, our speaker this morning, had an avalanche. There are always these avalanches coming along in your business life. Unless you have that persistent, reliable, email marketing system, you will not be able to survive those ups and downs as well as you might - as long as you have that continuous flow of opportunities. Next slide please. Because most of my clients deal in most sophisticated products in terms of price and cost, the goal of most programs I do is to get that person invited in. Again, Jay's strategy of pre-eminence. You come in as a trusted advisor, because they have been exposed to some of your materials through an automated system that aligns with their philosophy or better yet, helps shape their philosophy. Next slide please. I am going extremely fast. One thing I didn't quite have a feel for when I signed up with Jay was that I have about 250 slides in two days that it takes to go through all this. I paired it down to 65 slides. When you cut out those slides of your presentation, it's like, leaving your children at home for vacation. I'll go as fast as I can, get through as much as I can and apologize for sounding like a machine guy. Next slide please. Moving deals forward - this is another key concept in the specific email marketing program that I am going to show you. There are people, who on one end of the spectrum will come out and say, "I bought a list from a guy for $50 - 10,000 names and I mailed it out. It didn't work, or I got a response". On the other spectrum is this kind of program where somebody is on a special interest list indicating that they spend a thousand, two thousand, three thousand dollars a year educating, ways to do things
better in their industry. They open from you an email that is oriented to that problem. They click on a link indicating interest that they want to solve that problem. In order to solve that problem, which is usually reading a white paper report on how to solve that problem or how other people have done that, they give you their email address. They then download a white paper. They read the white paper. Within the white paper there are other things they can click on and request additional information. They may request a spreadsheet that helps them evaluate the impact of your thoughts on their particular situation. So we have the person over here that's melted down their computer by sending out 10,000 names and got a handful of leads. We have the person over here who has gone through this entire process, who is a well-qualified lead to turn over to your field sales force. Next slide please. Jay is very good on this concept and a lot of this material you are getting today, I rely on a regular basis. It's really important in email to stay focused. In fact, I recommend for my clients that you never ask a client to do more than one single thing in an email. You don't say, click on this link or call. Given the opportunity, the confused mind says, "No, thank you". So you want to have them click on a link - is the only option you want to give them with their email oriented generation. Some people that I have worked with have been successful with an email and call toll-free number but by far, click on a link, is successful. You are not offering your product or services and this option and that option. You say, "If you have this problem, click on this link". We'll show an example of that in just a minute. Next slide please. Again, Jay Abraham 101; be a trusted advisor not an imposter. You may not have the industry specific knowledge that you want to have that would best serve your potential client. But you can go out and buy the expertise of people that do have that and create an interview, create a report or use a report that they may have already created, to begin to develop that trusted advisor mindset. Next slide please. When I work with companies, particularly in the service area, they don’t have a vision for what business they are really in, in a sense that a prospective client is interested in solving a problem. Your product or service may be a piece of solving that problem. It serves you well in email marketing where you are developing a long term relationship with a client base to think about more than just your specific offering. What other things do you sell or do you provide a linkage to, through your process, that helps that consumer get a total solution to the problem. Consumers don't buy products, they buy solutions. Next slide please.
Risk reversal - You have heard a hundred times about risk reversal. It's extremely important to risk reversal to get email people to take action. People are suspicious of email. Show of people how many of you people like spam? Not a lot. You are asking them to do something. It's very important to reverse the risk. Particularly with technology companies. One of the things that surprised me, and I have worked with a number of Jay's folks. They say, well our industry is different. We really can't do a risk reversal on our industry because the product costs too much or any number of reasons and this slide is about an hour long seminar. There are always ways to find risk reversal on what you do. I would challenge you on the breaks or one of the meals later today, if you think you have a problem that defies risk reversal, I'd be happy to take a whack at it and see if I can come up with that. That process has fundamentally changed business for very many of my clients. One of the easiest things to do and very effective. Next slide please. This component is not really an email chain. It is so powerful that I left it in and I want it to communicate it to you. If you sell a complex product. Somebody in the company you are selling to gets lathered up and excited about what you are offering, the biggest challenge they have, if it's a 50,000 or 100,000 whatever it might be, is communicating their excitement and their rationale to their peers within that company. One of the things we do for a lot of clients is prepare this champion kit as part of the persuasion process. I would challenge you to think about, if you sell to somebody who gets excited and leads the charge on something, they have to go back into their organization and persuade other people. There are things that you can do to accelerate that process. They have to go through an analysis process, typically, a financial process, in larger companies and you can short circuit that time cycle and close your sales faster by helping your champion in that company to advance the ball. Next slide please. Return on investment - I had one client describe the internet economy as you holding your hand up in the air and an order flew into it. Certainly doing our economic expansion, that happens some. Now the CFO in charge of particularly some major decisions. You are going to spend more than a thousand dollars. The company's going to buy something for more than a thousand dollars. You'd be surprised at how many decisions get rolled up to the CFO. Unless you have a rationale that in addition to your emotion based marketing, deals with numbers and saves somebody money or makes them money, it's very difficult to move the ball forward. Next slide please.
This is one of the most dramatic aspects of email marketing. This ties in with, "Life is a moving parade". You can mail to an email list today, and get a two, three, 4% response. Depending on the industry you can go back to the exact same list and mail that list 60 days from now and get that same response. And it will be mostly different people and some people that responded the first time but lost what you sent them. So you want to be very aware, particularly in this type of economic uncertainty, there may be a war soon, lots of things are changing for a lot of people. They have to do things they never thought they'd have to do. You want to have your message, your problem focused message in front of your target audience on a continuous basis through this period of time. Next slide please. Persuasion design - broad topic - Jay is the master. The materials that he get - quick story, when I first went to work for contact software they were a fledgingly little company. I had been at Spinnaker software and was the VP off OEM sales and VP marketing at the company at the time. We actually tried to acquire the product because we saw this new contact management category as being kind of an interesting category. We had about a 150 products and at the time, Spinnaker had successfully made transition from the largest Commodore game company to leading supplier of 100 dollar productivity software. We thought that contact management would be a nice thing to add to our portfolio. We didn't acquire the product for couple of different reasons but during the process I got to know the founders and they said, "You know we have this product here and we have got a few people and things are starting to go well but we don’t have somebody that's actually work for a software company before. Why don't you come down," - Spinnaker had gone public and was very successful "and help us put that, together. We have got investors, we'll make all this stuff work". I met most of the early investors. Some of Dallas’s finest urologists and gynecologists that you'd ever want to know, from Boston and got down there. The president of the company said, "You know all that money we promised you we were going to able to do things with, when you got here. Well, I spend it all". He had spent it on advertisement. I don’t know if anybody old enough to remember, but he had a picture. It was person seated in a chair. It was a full color paged ad. They had a disk, like this. It would have been a poster child for things not to do - Jay Abraham. He was holding a disk that said, "Act" It was something to the effect of, "What you need to do business better". First thing I got down there, the phone was ringing off the hook. He's placed this ad in five of the major publications. Phone calls ringing off the hook. We were hiring people, setting up workstations, trying to get people on the phone, most of them didn't know what the product was and two thirds of the people
calling in - we had to say - we explained the product to them, they said, "We are not interested in that". As I get down there, we have this fire-hose of lead generation turned on us but they were the wrong people. We are out money so we have no money to do things. I was having this meeting where he told me there really was no money because when you are an executive you don’t like to give news to people like that. You kind of tap dance around it. We finally had to sit down and he said, "We have no money and we are not going to have any money for a while". So, he reached around behind his credenza and pulled out stack of Jay Abraham material. He said he had bought this material and read some of it. He said that there were some really good ideas in there. You didn't have to spend a lot of money on applying them. I thought, great! I left the public company - cushy job - Vice President, nice big office up at Boston. I am down in this little hole in the wall software company. The guy's out of money and he's giving me marketing books on how to do things on little or no money. Kind of an interesting scenario. The toughest customer you have to deal with when you are as entrepreneurial as I am, is your wife. Especially when you wife has little kids. I had to go home and say, “Honey you know there is no money to do marketing. This things probably going to nowhere. We are probably going to have to move,” after we relocated our family again. I took the man's way out and went home and read the manuals over the weekend. Furtively looking for some solution to the problem I was faced with. This came in Monday morning. We did a mailing to the small but growing group of Act users and offered a video tape and a free working copy of the product that held up to 25 contacts, in a referral program. We contacted all our customer and said, "We were glad you are using Act. If you know anybody that would benefit from using Act, let us know and we'll send them this free video, this free working copy of the product and give it to them on your behalf and say so and so thought about you and thought this might be useful for them". At that point in time, thank you Jay Abraham, that saved the company. Act would not have gone on to be leading product in the market and really create the whole contact management category unless I had read that book over the weekend, I think. Hand to Jay Abraham. (Audience Applause) Winton: Then, we got money, then we got stupid again and went to full paged ads. Once you kind of mass momentum you can do that, it doesn't show up but when you are trying to get something going, you have to do differently. Next slide please. Particularly today, communicating the pain or the problem is essential. Don't talk about your product or offering. Talk about the pain. That is the
key message for any email program. You don’t want to have anything in that about your product. Next slide please. Because of the sophistication of your mailing list, you want to identify people that have a willingness to buy. That have the ability to buy.
Jay Abraham Mastermind Marketing 27 Wayne: About your product of offering talk about the pain, that is the key message for key message for any email program you don’t want to have anything in them about your product. Next slide please, because of the sophistication the mailing list, you want to identify people that have a willingness to buy, that have the ability to buy. Now it used to be a year ago, you couldn’t buy the email list and get its segmented by these categories now you can, you can go to exactly the ten thousand Vice Presidents of operations in electronic industries companies between fifty million and two billion it’s just fabulous, the list that have been developed so you have that opportunity to talk exactly to the people that you can buy. I might point out that this is the difference if you will put a website up and you have people searching on your website and downloading white papers and you don’t know whether that’s a geek in a bowel of some .com company or a Vice President. When you only target Vice Presidents you know that every lead that comes in is a Vice President and you can handle that accordingly and you don’t drown in the mass of leads that come in from a typical web based marketing. Next slide please; you want to find somebody who you can educate. There are many people out there who will never buy your product no matter how good it is because you are not the market leader, particularly entrepreneur starting a business. They roll out of email programs they read about a problem they might have some interest. They download your white paper they realize that you are not one of the market leader for one reason or another. They opt out of the process, they get out of your sales activity they unclog your sales person’s agenda. Next slide please, so the key message here is you want to do direct response, that is what kind of that everybody does when they talk about email but you really want to do the permission marketing as well the opt in piece, have them give you permission to continue to provide them with valuable information overtime. One thought about providing the valuable information over time on permission marketing does somebody want to hear a sales message over time from you repeatedly? Probably not, but there are lots of things you can say about your industry. How different trends are affecting people that they would find interesting and that’s the key component to your permission marketing program. Next slide please; you want to create an itch they have to scratch. If somebody is looking to buy an expensive software product and they get an offering of a white paper of the mistakes people make when they buy that software product. They have to get that manual their job is on the line in many cases at the higher ticket
products, or they are comfort of safety or whatever it might be in the lower or personal sort of things. Next slide, this one is a little abstract, I don’t know if I can do this in ninety seconds but you want to think of your lead process as kind of this re-fractionation column. You are bringing in the leads which are sort of the crude oil and then you apply heat which is the repeated miss-sibs that you send them over time. Some people like some molecules here drift up to the top and come off as a gas and that kind of what you are looking for. Others remain in the process until the heat gets sufficient or catalytic agents are added to that to breakup those molecules and then they drift up to the top and that’s kind of the concept with email marketing, you’ll take the people that are hottest now and then you will take the ones that are hot over time. Next slide please, with most people do lead generation they do one thing, they do the bottom to square or the bottom square. They send and outbound email and say please buy my product. Lead generation email based sales is a complete process and we look at this in more detail in just minute. Next slide please, so your desired outcomes are going to be higher quality leads. Lower cost of leads, better control of messaging, people don’t get lost in your website, better utilization of your sales force, happier sales people, lower turnover and a stronger more consistent revenue stream. As an entrepreneur that revenue stream is the thing that you want to focus on, put that in place and certainly if you can get a robot to help you with that, you want to do that, and that’s exactly what this offers. Next slide please, setting goals. We have heard some interesting things about how people go from zero to a million in sixty seconds and God bless all of us if that would happen to all of us, that would be a good thing. What I have found is that organizations that put in place an email lead generation process and built a possey of a couple hundred, I mean a couple thousand names that have opted in on their list have a unlimited reserve to go on a regular basis. Somebody always got to do something that relates to your product. So you want to grow organically at first and then you can do some of the kind of things that we have heard about hearing the referral program and that sort of thing. One example client had an about 300 names in the database and we did a program where they allowed that database to offer a free info kit to all of their contacts and resume their contact base up to about three thousand with in a matter of about two week so those opportunities are there but you want to get the first piece done right. The bad thing about email marketing is one you flip the switch it happens so fast that if you are not ready to handle a response you are going to be in trouble and disappoint a lot of people. Next slide please; okay why it works quickly. You are slowly developing a relationship. How do you like to develop a relationship? Do you like to go into a restaurant or bar or event like this and hi, how are you what you do and a lot of personal information? No, you want to slowly develop a relationship. We are over communicated; somebody said I think I wrote down 13,000 messages a day. So
we want to get little pieces over time and that is how we build the picture and the relationship because we have very powerful filters that we have built to reject a lot of the stuff that we see on the daily basis. Next slide, so now we are going to look at the specific components of a sample lead generation program and this will be in your notes so you can look at it, it’s a lot of detail on here but first thing you do, create a strategic plan, second thing lead capture system, that’s how you actually grabs the name as they come in, you create website landing zone, so I will add a little bit more that here. A response delivery system, you’ve got to have some way to send out the information that you are offering to the person as they requested. You want to create a list selection test plan, more detail on that to follow. An educational offering like a free report, a white paper something like that and then an outbound email, those are the sort of preparatory things that you do. Once that outbound email happens, all the things above that last yellow box about the middle there are the things that comeback to somebody as they participate in your lead generation process. Some people are opting out through the process, but people receive in that case is I think it was about six emails, some material that they can download on request and it’s kind of like the rat pressing the bar. They get things automatically but then there are also things that can get the press the bar and get the pallet, and that’s a very important part of making your program effective and what comes out of this and this one of things that Andy talked about there is an engagement process that get you invited in, so you can do that sales pain gain follow up. Next slide please, this is an example of an email that has worked very successfully for one of your clients and some of things that you might want to notice about this, is a lot of white space. It looks pretty hippie; the only people that would actually read this and respond are people that are in severe pain. If you have a product that takes them out of pain, it makes sense for you to want to talk to only the people that are in severe pain and that’s the goal of this process. Next slide please, one of the mistakes I see people make is they - actually, entrepreneurs are pretty good copywriters. They are used to telling their stories; they get feedback from audiences clients whatever. When you do email marketing there are certain words, certain phrases that can poison your response and you want to be careful to tune those out of your email activity if you through that. Next slide please, Audience: What are the point it raises? Wayne: There is probably a hundred and what I recommend that you do is find somebody that can review your document and coach before you send out that email document as a strategy, that’s a way entrepreneurs can put together their own email program, keep cost low but make sure you get a professional copywriter to review it for those poison words. Anybody that has that experience
can do that and I think some of Jay’s material has examples of poison words in them, so you certainly want to look at that manual you got today. Audience: I want to list of magic words and (unclear 00:44) words. Wayne: Okay Audience: (Unclear 00:45 – 00:48) Wayne: Okay very good, work with Rick. I think coordinate that through Rick. Audience: (Unclear 00:58) Wayne: When you do email, you don’t what email list going to be most productive for you and this is the idea, it’s like drilling wildcat oil wells. You will send out a thousand test messages to different lists some will produce a big response some will produce a small response. Just want to get this concept across that different list produces different results and as long as I have been doing this you know I am still wrong. The list you think won’t work do and vice versa quite frequently. Next slide please. Again the formatting the idea here is you want to create a link the only one link, one action that can take you intersperse this link in your copy. I am a real proponent of a long copy approach, what happens from research we know that most people select the first link. They read into the first paragraph or to select that link. But as many have theorized and is now were able to prove through email we can measure what response comes off the second, third and fourth link and you get sometimes twenty to thirty percent off those second third and fourth link showing the people are reading down into that copy and not becoming persuaded until they get to that point. Next slide please. When somebody clicks on that link, this is the page they get for most my clients know as we ask for minimum amount of information again on the theory that people don’t want to provide you with a lot of personal information and particularly if you are selling high ticket products. The kind of person that you are selling to is not the one that is not going to sit down and punch their fax numbers and that sort of thing in there. Next slide. This is where it all happens if your message doesn’t get open, its all for not. The number one thing the people look at is who the email is from to decide whether they open it. In a way you can’t really help that, important thing don’t put the name of your company in there. Put the name of the person. We find that a wide Angelosact and protestant name works the best. A female name works the best, these are all the things that we have measured over time and find consistently that works for getting through that first filter that most people have. The second thing that I see Jay talks a lot about headlines and Mac talks a lot about that a lot of good information there is a challenge with email, you can write a great headline but if they can’t see it, it doesn’t do you any good you got to keep your headline within 40 characters or its likely to be off the page of the person’s email readers as they go down the list.
Next slide please. This is an example which one the CIO is going to read, this is an example of two different white papers, again making that point of you want to find someone who is in the selection process doesn’t want to make a mistake once to avoid embarrassment is a very powerful theme and you can use that in your reports and white papers. Next slide please. Little hard to see but when you get the slides you will be able to see a closer look, sequential marketing. Jay has talked about that and is going to talk a little bit more about it, very important that you create an automated sequence of things that happen that are sent out over time after they request that first piece of email. You will realize that people that download your white paper for example certain percentage 20, 30, 40 percent, the phone is going to ring somebody is going to interrupt them and they will forget that they downloaded your white paper and that white paper spitting around on their desk they never read it. So if you come back at them with 2, 3, 4, 5, 6 different things you are going to remind them they had an interest in that they wanted to download the white paper and bring them back into the process. People say how many of these should I do after a typical mailing, I said you do it until its quits working. I had people doing eighteen months programs on their sequence and they have seen no drop off and they are opt in list. Next slide please. This may be the most powerful component of white paper marketing within the body the white paper you can say if you would like additional information on this topic click here. What happens then as the business person you find out what are of the nine mistakes that you were talking about, which of the nine mistakes are of greatest concern to that particular person. So when your sales person engages them you know that for example in this case they are really struggling with the concept of metrics and that person can in essence be a mind reader about what their problems are. Next slide please. We don’t have enough time for that, its kind of a map it will be in materials you take a look at it. Seven things to avoid. There are the things that people make that kind of kill their process, not understanding that lead generation is not sales. Sales on the internet you know it happens for some people with the right circumstance but a very difficult way to go. What a lead generation program can do is put you in front of the right person with the right problem, the person has money they are looking for solution and they have a belief that you may be able to help them. Most sales people would like to talk to those people all day rather than people that were surfing the web and thought they might be interested in your product. Next slide. Don’t buy the sixteen million Dollar, 150 Dollars, this is an unfortunate client that setup his machine one weekend to mail out his spam email and it didn’t work out too well. Next slide please. Good list. Only use opt in list or endorsed mailings as Jay talks about those are very good. Resist the temptation because they are out there
people will say I have got a list of 500 people that are in my association I got a list of this and that, unless you have permission to contact that people you are going to create more aggravation for yourself than its worth the opt in list typically sell between 30 and 50 cents a name its expensive but they are that expensive because they produce the result. Next slide. Again copy writing, this is an example of an email that I got, I don’t know a week ago from one of the largest database manufactures in the United States. Everything highlighted in yellow is talking about them, everything highlighted in blue is hype, for example words like the future keeps getting brighter, these are examples of poor communication. Emphasize the rational for having a professional copywriter the one that skilled that email persuasion design. Review your materials before they go out and its not magic but a good copy writer, any good copy writer can help you quiet bit with that and keep you from making a big mistake. The other last thing that I want to point on that is you see how a line jumps, because people don’t format emails when they go out properly. They are mistreated and abused when they come in to your targets email and you will see how hard it is to read when you have a full line and then one word and then another full line. This kind of formatting will depress your response by 70 percent. Somebody sends out their first email, they say it look great I don’t know what happened. It looked fine in word but I got a bad response these are the kind of things you have to check to make sure that you are not doing that. Next slide. We have already kind of talked about this but the idea was formatting lots of white space, white space works in email and people will scroll down if they are interested. Schedule is extremely important never mail on Mondays or Fridays. Never mail the day before holiday or the first day back after a holiday. Don’t mail on election days, I learnt that lesson painfully this last election cycle with the Presidential Election I had a few clients that were had an email programs, that we actually didn’t mailed on election day but we had the mail scheduled right after that and because it was undecided people were not paying attention to their email and watching the news to see what is going to happen. You want to mail them in the morning or after midnight you want that person to get that email first thing in the morning, people are much more reactive and likely to click on a link than they are later in the day. Next slide please. Be careful what you ask for the more information you ask for in that first contact will absolutely depress your response and ensure that the only people you get to talk are the ones that are more than happy and have all the time to disclose all their personal information to you. Next slide.This is an example of the kind of thing that you want to ask on the first click, just get their name and their email address and then build the masses of data, you know their physical address, their phone number all those things through your report sequence over time and one other thought on this is that you always want to have. This is where the internet doesn’t work for 10 or 20
percent of people most of time on a mailing. So you want to create an option where they can call a toll free number and pick up what you are offering a hard copy of it because they can’t download it for some reason. Next slide. Most of our clients the website that we setup for them, not their main website but the one we use for response works likes this. This is the home page it has no navigation its not something that they can jump into and run around and get lost, which is what most people do on a website. There is no navigation we take him down a very specific path, a very specific persuasion path and we intentionally roll people off as Jay was talking about yesterday. We polarize people so that they go down that path and tune out the people that are not interested or ultimately not likely to buy. Next slide please. I think this is the last one or the second last one. People are nuts on giving things away on the web. This is an example free palm pilot and I tell just one last story. I worked with a company that had just purchased a Porsche Boxster and they raffled it off as a way of generating leads and they will go to trade shows and they will hand out little things you fill in and they would had a thing on their website. They got 4000 leads they just distributed all those leads to their sales people. Sales people would call up the name on the lead, the person would hear the name of the company and they think boom right away. I won the Porsche Boxster they were excited, then they realize in another flash they didn’t win the Porsche Boxster, not only they did not win the Porsche Boxster but you are going to try to sell them something. So they go from pretty excited to pretty unimpressed in a vey short period of time. If you want to collect names of people that want Boxster and Palm Pilots, offer a Boxster and Palm Pilot but avoid these kinds of tactics for collecting names. Next slide please. My advice is this is something that you can start as an entrepreneur, you can start small and learn a lot and learn very quickly. You get the immediate feedback most of your result comeback in 24 to 48 hours. People call you, people send you emails saying I like this, I didn’t like that you know if you strike a wrong note you will here from some of your recipients so I would encourage you to begin. This is something you can do, you can take the materials that Jay has provided extremely relevant, extremely helpful in structuring your persuasion design and just get started with that. Start with a small audience if you are not doing it yet, get a feel for it and then move it forward and you will get to a point very quickly you know three to six months where you will be able to apply some of the more sophisticated techniques and really ramp up your congregation or group of people that are interested in solving the kinds of problems that your product or service sells. Next slide. That the end. Thanks (Audience Applause) Carl: So first of all Wayne just gave you and incredible compact perspective on a hell of a great way to use email marketing. We are going to try to broaden it
because you know we have gone out at lot of different ways and they don’t refuse. I want to make sure because I am going to talk about what we have done we are going to bring all these people up, who have figure out other nuances. I want you to give like a connected bridge that helps them understand there is not a right and wrong. There are just so many different avenues of pursuits so give me phrase on that I want you to give us your swami like forecast of the future of the internet opportunities and I want you to tell me what an entrepreneur sitting in these chairs from 300 different industries some with email list some with not, some with one time product, some with not, some with copy writing skills, some with not, should do today when they get home to act, to apply to implement, to execute, to actuate whatever it is you just said. Wayne: Okay. The first thing that you should do is focus on the problems that your product or service solves and begin your persuasion design from that perspective and again use the materials that Jay has put together to take that and amplify that. The one phrase that I would say is keep your powder dry, we go five to ten emails sometimes before we would actually mention the product or service or nature of the solution that we are offering, we will find that problem, find that one raw nerve and hit it over a period of time to bring some part of the audience to a fever pitch and if you are selling something you want to talk to people who are at a fever pitch in search of a solution. Carl: Okay alright thank you very much, appreciated man. You will be around. Wayne: Yup Okay thanks (Audience Applause) Carl: The only negative about taking his green step as your teeth look like you are trying to be at Halloween Gul forgive me, get a lot of energy from it. A couple of quick points again those of you who are interested in being guinea pigs if you did and if you don’t its no big deal but you if you want to have an incredible time interacting at level about ten times deeper than we get over here and being able to listen to really probing and penetrating analysis and interviews of cutting edge books that are the most definitive and really get the upper edge because that’s where the break through has come from. Put it in because we are not going to offer it again. I had printed for you last night the chapter of my book on strategies preeminence. Its not in my opinion as dimensional as the notes I was looking at but its much cleaner and simpler. We are going to distribute it now you can read it now for just a little reference. You can look at and refer too often as another benefit if you would like, I am willing to have the notes the I was reading from cleaned up because I stuttered, stuttered, stuttered, tangential comments, irrelevant dialogue etc, but I will get it cleaned up and we’ll post it on a private website for you so you guys could download it if you would like, and I think you probably would like that. No I am just want to honor my obligations. If some of you don’t know our obligations but I have made it silently to you, I
promised a couple of things I think you should also have, one is an interview I did of friend talking to him called him Encounter and I thought it was in the tactical force and I am told that isn’t so we will get that transcribed and we will put it on a website for you also. The (unclear 0:08:31.3) I am involved in is really cool and if you want to try they around here. They have been telling me basically because I have never used the technology for it, they are easy but you got to know the other side and get more feedback what we did and this is really cool, the army is using it in the Middle East, the Discovery Channel is using it to broadcast incredible stuff underwater some of the most sophisticated coverage in the world are using it and I am trying to figure out how to use it myself to reach entrepreneurs’ but if you can figure it out its incredible because they got for a couple of hundred dollars a month and less than a dollar a minute you guys can do incredible things so I would urge you to think about just these things. I want to give you a quick break but I got to have you back, you don’t have to get back but in ten minutes Carl, and I are going to go through how we got all of you in this room. We are going to go through how sold four and half million dollars worth of PEQ home studies of five thousand dollars a piece with one sales person. We are going to go through what I think is the key to sequential marketing we are going to open up some really neat quarters of internet prospective and then I am going to do I think a couple hours of actual Q & A interaction so we can just get right to some serious applications but I am going to start in ten minutes so put on some really high music so I can get my energy level up for everybody and come back in ten minutes. Okay so I have been around for a long time I have looked at a lot of stuff I have formulated a lot of strategies. We decided. Mac: Can I do the intro for you instead? Jay: Sure. Mac is going to take over. He is going to ruthless bloodless coup are going to throw my leadership down and takeover and he is going to call it ShayMac. Guys come on look what we are doing help us here. Mac: How about if turn the Microphone on with that help. (Audience Applause) Mac: What Jay and Carl are going through with you here simple humility that they both possess will prevent them from telling you the magnitude of what they’re about to give you. This is one of the great marketing turnarounds that I have ever seen. They took in the last year working on these techniques last couple of years using the new technologies, email of the combined with their direct marketing knowledge and expertise and to their intuition and everything else and just dogging this on Carl’s part as well creativity. They took a situation where the average conversion of a lead for a program like this was one percent. Very expensive to put people this each. Even using associates and affiliates to
bring the leads in, it was one percent. What they are about to tell you is how they change the conversion rate a thousand times ,at less expense that they had initially. Most people can fill a room with 20 people at 50 bucks, look around you the 20 people at 50 bucks are less satisfied than you are six hundred people at 5000 Dollars. This is an extra ordinary what they are going to share with you. Their ability and the willingness to open this up is almost unprecedented in business. Please give it your full attention. (Audience Applause) Jay: Okay. So we start looking at what changes were going on in the world and the point of conclusion that we came up with I think non-verbally was you have to give more utilization utility productivity out of the action. What I always talk that it was really hit home what do you think Carl? Carl:
Right
Jay: I have always been of the mindset that it literally was only a matter of time before everybody you wanted to have a relationship with you would, number one, number two there are lot of people really wanted to do they just didn’t know it yet, number three that if it is going to benefit then you couldn’t let them off the hook just because you had not clearly conveyed the level of value at high enough clarity that they couldn’t say anything but yes, and number three that was so preoccupied in our lives with so many day to day diversion, calamities, insanities that its hard for us to really reflect on something and number four or five are not really paying attention to my numerical sequence. That is a lot of things that we wanted to do but we never do. There is a lot of things that we should do but we never do, and then number five or six is that even if we want to do it getting this out of our comfort zone is hard as we had a moral obligation to not let you guys down. How many people here got more than one email before you signed up? Raise your hand, stand up, I got to do this walk to the wall. Okay now take 650 times 5000 that’s a little high because there is couple partners and there is some friends of mine here but its a little high but not that high 650 times 5000. Okay and now remove this group times 5000 a head, if I had resigned myself to one email and look at this room. Now stay there and go back as I call this example you got a second email, if that was what it took for you to sign up go back. I am going to do so you guys see it graphically. You got may be two or three reports and you study them, go back. You got may be two or three or four or five calls from Carl Turner and I want you to think what it took. I want you guys to see how sequential activities make a difference and all these heads are 5000 Dollars to you, all these heads, that man is a 5000 Dollar vest, that man sitting down is 5000 Dollar tie, that man is a 5000 Dollar, at least 5000 Dollars you want to bet on it. Okay, how many people did it after they were on a conference call with me? How many were on it after they got one of the other speakers and if you don’t have to be down here, just walk it. One of the speaker’s report how many guys
after I did something that was very straight forward but bodacious and you go damn it he has got me. How many people had to wait almost the end before we finally pushed you over the wall? Do I make my point? One of things that I use to teach is in all the material we gave you before it had been repeated in some of the work books we gave you plus three letters from Oxford Club besides that. Anyone says O! don’t email people more than a couple of times, you will offend them. We did a little survey of the people who unsubscribe and sent me nasty emails and we went to see what if anything they ever bought from me. You want to guess what the answer is? Okay may be one wasn’t over whelmed and if the gentleman says I am not, so I am neither (unclear 0:06:32) nor I don’t know I am confused, I am indecisive, but we, I am giving you just basis here then Carl is going to talk for a few minutes because I forgot to go to the bathroom because I was talking if got a run I am going to explode but that okay Carl can run with it. Really of Oh God thanks. (Laughing) Oh God, Oh God. Anyhow it doesn’t matter I can hold it for a minute more. The key to a lot of this is understanding what I called a 1985 and I think I called it something else now. The moving parade, there is an escalator of life, this cycle of life it’s that we are going through constant change, remember I was talking to you the other day, I was talking outside about how you will get your epiphany at a different time from a different person or event or experience on the stage at the table in the outside you know got to the John and talk to somebody at Lunch. I don’t care which it is I just know with certainty that by the end of today or earlier that it will be. Does that make sense to you, I impute the same belief system in what we are doing. I don’t care if its email one, two, three, four, five to combinations the audacity whatever, it is just that we have it, certainly we are not going to let him or we are going to polarize. We are not going to let you off the hook until you do one or two things either submit or evict us. I mean literally is that a good prelude, Mac is that a good prelude? Mac: Its wonderful. Go before you flood away. Mac: I am going to interview Carl because Carl is not a presenter of this kind, this is totally must be awesome experience being up here in front of all these talent energy and want, need and sharing and everything else because in all to give you all, if you don’t mind I walk you through couple of things. First of all if you don’t mind. Speaker: Would you share with us how you got to be here at all. Speaker 2: What I did before was I worked in a nuclear power industry I had an Engineering Consulting Company. When you are working as an Engineer you are trained to be negative so I decided I really needed to change my outlook on live is to be able to think positive because when you’re are in business you have to
think positive. So I went to Tony Robbins and went through all of Tony Robbins training program first as a participant and then as a trainer that was very expensive copy but it was very worthwhile because I learnt from a person who could not supervise people to supervising sixty three of my competitors employees and then after that Tony recommended I meet Jay when I was at Financial Mastery. I met Jay and then I went through one of Jay’s program just like the one we are doing here as a participant. I paid 5000 Dollars like each of you and I really was very enthuse about Jay’s material but I thought it was not organized and I thought I could organize it down to about one tenth what it was I did really understand Jay’s material obviously so that was my purpose and getting with Jay was to teaching him how to organize his material I didn’t realize there was a purpose of what he was doing. Mac:
What did you do with your job?
Speaker 2: Well Mac after I met Jay and decided that I really wanted to do marketing full time so I set to change careers by did as one to work for Jay for three years and then after that I actually have done joint ventures with Jay for the last five years so I totally changed my career after I met Jay. Mac:
First of all here I meant excuse me but you hung around for a while
Speaker 2:
Yeah
Mac: And you just did stuff to learn you didn’t get paid. For I don’t know what period I really didn’t care to know but for a long time you invested in just walking in his shoes right? And then what happened? And they needed bodies at one point so suddenly you were useful and you were there? Speaker 2: Mac, I worked as telemarketer for Jay for a while that was something that I was not really trained to do and as matter of fact I was by far the worst tele-marketer that we ever had and they really didn’t want me to help them in this operation but I kept bugging them I had letter and phone call a fax I just keep bugging them for a number weeks and they finally decided that it was easier to let me to prove to me that I couldn’t handle working for him and after two weeks I’d quit but I was in need, I really wanted to do this and so after six months I was by far the best salesman they’d ever had Mac: Motivation and want need, and desire and passion is more important than anything. What was Jay’s technique and what was his marketing technique at the time you started. Speaker 2: When we first started it was one shot marketing I call it with general ads and it would be with the success, entrepreneur or the magazine like this and it be like sixteen page inserts and it will be direct letters from the editors of those magazines to their people and those were joint venture type relationships, so it was actually we had waited for people call in and once they call in we explained what we were doing and then they either buy or they did not but it was all incoming telephone calls.
Mac:
What was Jay’s general feelings about the internet at that time?
Speaker 2: At that time the internet was of place where people make money teaching people how to make money on the internet in other words the only people who making money was the people who were teaching people and Jay was actually a little bit of intimated by the internet because of the technology. Mac: So you went to work on the system and you were analytical at the same time you were working on your skills? Speaker 2: Right Mac, what I did I chat with all kinds of in-bound and out-bound telemarketing and just leaving messages all different types of things was more proactive versus a reactive mode were before I said that the other salesman were trained to react to incoming calls and then to respond to that. Well I developed an outbound marketing program and the tremendous amount of testing because the VP that Jay had didn’t care what I did as long as I was doing my own money and I was willing to share the information I learned with him. Mac:
You have never been not on performance?
Speaker 2: No, initially it was that small draw but it was essentially performance all the way. Speaker 2: Okay. So you quit doing the business and you do other programs and how were you selling those? Speaker 2: Well what we are doing now is using a process type marketing where we will send out a letters and will call to make sure people got the letter then for the people who are interested in we will sent out them additional information so its a very proactive process. We knew that the entrepreneurs out there had excellent products and services but they either had terrible marketing so they were just simply doing what their competitors were doing. They didn’t understand marketing and we knew the answer was to be able to use Jay’s techniques and the hard part was figure how to get that information to them to allow them to take advantage of it. Mac: Can I ask question of you people? How many people here in this room talked to Carl? O man look around wow. This guy is a hard worker. How many of you talked to him many times more than once? Awesome so you worked on several programs and you still mostly mail marketing and mail and telemarketing and I call that tele-sales actually make distinction telemarketing is low skill level, highly scripted activity where telesales is a very extremely skillful and dedicated operation where you need the highest talents in the world to make the connection. Where did the seeds of the techniques you used to fill this program come from? I am using what’s the one thing that you added to the Mix to make this fly? Speaker 2: The one thing we added to mix was to be in constant contact with people once they indicated interest, once they raised their hand and what we did was we try to make sure we send an email to the people once a week and we
also would call people to make sure that they were interested and to give them additional information, it was a process of giving them more when people buy there is process where they buy on emotion but they justify based on logics, so we give them more and more units of logic and more and more units of emotions to allow them to buy with that will get them on the fence and then to move them off the fence one way or the other. We didn’t care which way because we know that it’s a numbers game Jay: Sorry to interrupt but they all have genuine really priceless value in their own right and they are not that does not mean that they don’t some element of a credible and equitable offer of an exchange either attached to them in million attachment or preface but is nothing covert it is pretty straightforward and the content I meant who got the content we gave it free? I mean I pride myself on giving better stuff than most people charge for on the internet and I am proud of that because I can’t I wouldn’t lower myself to that level you want to distinguish as we give great content. Mac: So see he is so immersed in it. What do you call the system? Speaker 2: It’s a drip process. Mac: Why drip? Speaker 2: Its where we keep in constant contact with people and once they expressed interest give him additional ways to look at what they are trying to do and feedback on how they can become more successful and solve their problems utilizing our products.
Mac: What you would have done before the advent of fairly universal email. How would you have followed up? Speaker 2: Its hard to describe I would do the same drip process now but what I would do before then was once I am expressed interest I would typically follow up with thirteen or either leave messages or talk with them and I would leave up to thirteen messages to make sure that they knew that I was really serious about talking with them if they had bought. If they hadn’t bougt out I would only leave five messages and then before I said I won’t follow up anymore. Mac: What would be the relative response rate on that? Speaker 2: I use to convert about one percent of the people who expressed interest in something like this now with this method here we convert about ten percent of people who expressed an interest. Jay: Carl in one of the remarkable people in the world in that he takes the philosophy, the ideology and the whole concept of consultative marketing to not an art form to the 10th degree because he can’t not let you come from every filament in his heart, he knows how much lessen your business would be if he allowed you to pass. When you say no you really don’t mean no. When you say I
don’t think so, I know you really. How many of you have got more than once call from Carl Turner? How many sensed that he was sincere in that call? How many sensed that he had your best interest more at heart than his? The one who didn’t, you didn’t really understand him because he does. He will call me and say this person shouldn’t be here, this person can’t afford it or its marginal because it might not be right for them but I want him to experience it. It also stems from not an attitude but a belief system Mac? Mac: The one of the things that was added and they did it so seamlessly. One of list that was circulating around in last couple of years was that email and internet marketing was different qualitatively and quantitatively different than everything that Jay has taught over the years, it was different you didn’t have to do that, none of it matter there was no value, you didn’t do value propositions you just got edgy and sticky and all other sorts of stuff but you didn’t have to work on value propositions. You did it as short as possible it was all supposed to be all online. How many of the leads were generated online out of the group you worked? Speaker 2: Mac it was about 4000 that were generated online and 2000 that were generated to the normal print medium Mac: Was there any difference in the conversion from online versus print solicitation, did you do an analysis on that? Speaker 2: The difference between the conversion rate and the online leads are the leads from the press solicitation was that we would do probably about four times better from the ones that were from the print but we got two thirds more or I guess twice as many from the online, so the result was that online lead was just about as good as an offline lead. Jay: when we did the PEQ before something like this, can I [ 0:00:37.6] so prior to this we did the PEQ. I had twelve thousand e-mails when we started more we generate over the cumulative process, 7500 leads. So let me say again we started with a 12 thousand email list and over how many emails and sequences to be sent out 20,23? Speaker 2: I think it was closer to the 30. Jay: So we sent 30 sequences of communication out to 12 thousand emails and we got. Mac: How much prints did you do? Jay: One thing it didn’t work. The home study we did a mailing piece that we spent 20 grand on for PEQ, it pulled, guess how many people it pulled? Speaker: Zero. Jay: Can you just save that one for when I came back from the bathroom [Audience Laughs}
Jay: So you already told them whole story? Mac: No. Jay: Okay everybody except Carl and I thought its all over and I said no its just going to take a little different approach. We are going to have do it sequentially and we would love if the whole people came rolling and in writing the checks but they are going to have to achieve it from a Force Multiplier of sort, then we sat down and we kept doing it. Every time we did anything Carl said that said as we thought how can we redeploy that. We did a report and we thought we will not be able to get that to we sent an email so you said you didn’t really get to this report was so different we are not going to let you off the hook because you kick yourself and you be mad at us so we are offering you again. Mac: All you have to do is call us to get it. Jay: Oh yeah that will be great [unclear 0:02:16.6] when email first came out and when the internet came out and they said oh you make it easy way go to the website and its painless and its anonymous and we try that and we got 14 thousand people to the website, we thought 13. Speaker 2: Twelve Jay: Twelve excuse me. We thought, I like that. So we decided lets make people more accountable, let’s get a higher quality lead or prospect we don’t care about quantity so we decided before you can get the report. What you get the confidential private website. You had to contact Carl by phone or by email and had to give them all your contact information. If you wouldn’t that’s okay we won’t give you something its valuable we understand no problem no arguments. Mac: And there were several reasons for that right. One of which is establishing rapport and the other is the technical reasons that you couldn’t blast email a Gigabyte file without having everybody hates you? Jay: That’s exactly right, but we had some elements. So we started doing stuff and we started with the report and then we thought not enough of people got it, so we stayed it for different places and different ways and set it again and again and then after we got the report we decided a lot of people would like to hear how it work in real life. So we got check on the phone with me. Then we are done in the beginning. We actually did a live program and it was killer, and then we basically summarized the live program and we made an offer the summary of it then we invited people to be on a conference call and we done with it and then we offered a tape of the conference call and then we offered a transcript conference call and then we offered a Q & A separate conference call and then we offered [unclear 0:04:03.8] and we took the attitude that I take with. Let’s get back to my exercise when about a fourth of each room read the same book analysis and the forth of this room is 125 people, got something different out of it, does that make sense. Well 125 with different interpreted places on the continue and are letters if I am guilty of anything I probably could make them shorter and I am guilty about [0:04:38.0] but I wouldn’t make it as most people
think. They wouldn’t work I think if you heartfelt sincere you tell the story and you let them in on the [unclear 0:04:49.6] madness they really appreciate that I mean most people tell me they never got emails like mine and I frankly don’t setout to make them special, i just write them from the heart. Mac: I can tell you the number of people that I talked to over the years that are a student of [unclear 0:05:06.2] programs. No I’ll be get his mailings for years [Audience Laughs] Jay: That is not a joke. We had an idea last year of sending out letters saying you got to pay us 400 Dollars to keep getting our mails or emails and will reply to anything you buy. How many people have a Jay Abraham file they have been keeping. It’s a smaller representation than normal. Normally I get three quarters bills so I have got two file cabinets full of your stuff and I say I know I expect that. People use me as their model but that’s okay, that’s implicit. If you guys the most tragic thing I would feel is in people de-subscribe to my stuff. I feel like its their loss because we are one of the few people who have the willingness, the openness, the dare-ness to try all kind of things and I would think I am the greatest model of a person. I am not trying to be egotistical. I don’t care if you, I lay it all out in the email, it’s funny when the switching over but I did the request for case studies, you know you are on my email list as often, I ended up with we had 18 thousand people we did an email asking for case studies subscribing and we got 150 and everyone was excited because they have good taste they said that’s terrible. I go back and said you guys don’t get it. I don’t believe it there is only a 150 case studies in this. I want more and I want them by Friday and I got 250 more and then I thought this is not enough so I went back again and I did it from another [unclear 0:06:34.7] may be I didn’t say this correctly you give me a case study tell me how you made money and the one big idea. I am going to share with you may be a thousand different ones like it but not [0:06:45.8] and you would be able to find 50 or 100 from that to blow your mind and probably make you millions of dollars and you are going to get that just [0:06:49.7] Mac: Can I share with you one little thing that I have learnt from Jay is the actually is the biggest thing and ever and if you walk away with just this it’s the most powerful thing in the world which is never accept practical reasonable realistic results. He doesn’t and he makes you not accept them either and if you don’t they would get better. Jay: I would tell you truthfully I am disappointed because I expected 700 people and I am a little bit but a bit disappointed that I wanted to have 500 home studies of 2000 and I only got 450. Mac: this is not fun to be around not all the time. Jay: I push because its hilarious. My hairstylist says I am his most favorite and his most feared client because I don’t accept his haircut, you’ve been there when I get my haircut and what do I do Carl? Speaker 2: You always challenged him to do better.
Jay: I said that’s not enough Michael let’s cut it this way that you are really happy you want me to be your poster boy are you happy with this you want me to go out. I said is this really what you want people to think about and then they think that guy is not very well groomed so I may have to say Michael Jay cut it and I get great hair cut because I challenged him to perform at a higher level. I challenged the market place to respond at a higher level because it has been in their best interest. Now I don’t know if you could do that if you didn’t believe with every filament of your being in the value, in the virtue, the benefit, the enormous and the priceless worth what you have earned. Speaker 2: Yeah. I give me an example on this when you do the PEQ we are talking about the number of home studies we could do. I said we could do 50, Chet said we could do 100 then we went to Jay and ask him what he thought and he will do 500 and guess how we did? 500 Jay: Actually we did 800, but we planned into our expectation attrition. You don’t have attrition that’s not something that we proud about it means you are not stretching the envelope wide enough but if you have none or not enough its equally tear able because you will not stretch it you want to get up to marginality because you wouldn’t help people may be are on the cusp does it make sense? Speaker 2: Right yea. Jay: We lost 2 percent of you on yesterday at 2 o’clock. Of the 2% about 30% converted to a home study of the remaining lets say 1.4%, two of them I talked to were too close minded and they didn’t get it and should have left because it would have waste of money because if they had stayed and paid they would have done nothing it. They ended up having an atrocious and now they gotten no need for 12 thousand Dollar worth of Goods and which is [0:10:08.1]and they got it didn’t happen they didn’t say anything negative it normally happen this is 2 or 3 years from the today you see a smiling face from the back saying I left, I am embarrassed I owe you 5000 dollar or I made 25 thousand dollar and 150 thousand dollar and we know that will end up with a good will don’t we it will make us more money that we can imagine but our attitude is even worrying about those its worrying about you. I am trying to give you a mindset may I said to somebody at the break I am a little bit eager to give you more technique but I said that I gave you in 12 pound or 25 pounds worth of free stuff and probably a thousand pounds of other stuff more techniques that you would need in your life your mind set without the philosophy, without the ideological approach [0:10:57.2 ]but its useful [0:11:00.8]we are trying to really strip ourselves naked we actually took the time Mac told you to publish most of all the emails we use successively [0:11:09.8] letters didn’t we. Speaker 2: Yeah letters. Jay: But we put like 25 emails for PEQ and just so you know this we gave you the secret to about 8 million Dollars’ worth of sales we generated you may or may or may not want to emulate it, replicate it, or model it if you really which you hope you can better you can even do better, but that’s a hell of a template.
Mac: It’s not as you see it’s not about email, it’s about marketing, it’s about adding value and adding credibility. Jay: What else should I say? Mac: There is technique involved I don’t know obviously. Jay: So I mean its starts with I have disciplined my mind to constantly think of two things, in the contents of sequence what is the next layer or what’s the next level of, remember the notes from the strategy pyramids and what’s the next step to graduate and move forward? What am I not connecting for them what are they thinking, I tried very hard not like aha, just like natural everything well. What would I be thinking if I got this and this what would my mind be devoting, and I also do that I think not to be audacious for audacities purpose but to be audacious just to break their paradigm so they will stop for a moment and reflect differently. I think what approach will just blow their mind and then tie in and I do things that no one else does. I don’t want people to try to basically be doing this from the get go and from the basically take advantage of. I want to tell the upfront exactly what I am going to do why I am going to do it, what I expect to happen, what will happen if I am correct and what won’t happen if I am not, why it’s totally covenant on me to perform and why they should just go along for the ride and put their defenses down. I think most people do that. They think that there is something weird about doing that. I think that’s so natural. Do you know anything Mac? Mac: I think if there is a lesson for you, I am not in the Seminar business, but if you are, the lesson is this, small incremental improvements, leverage by technology all of sudden become truly unbelievable breakthroughs. You can see nothing here even of itself was absolutely the key, they just kept working on it. Jay: One thing was it was a belief system was the key. Mac: And the belief system that they could do it and would do it and would find a channel and a way and their knowledge of their clients and their market place converges. Unidentified: And then I tell you one good thing that happen and this is not audacity but once we manifest our vision then when momentum started really working we utilized it with candor and honesty to our positioning advantage because we just say hey, here is the truth and it should have come across as dead serious because I did a conference call on one call and it was not trying to be arrogant and said here is the deal guys, this is the first one we have done in seven years, I am at better point than I have ever been again. More I want to show, I like people at higher level I had experienced more things more ways, figure out the real way to make the internet work. I know how to add an efficient way to get not just marketing knowledge but get you strategic implementation to do it. I am going to have the room filled, it’s a matter whether it will be you or somebody else and that’s the god honest truth and since there is no down side if
you don’t value so for, shame on you and I was very sincere. I think that is sincerity. Speaker: Rick has a couple of things. Jay: Sure go ahead. I was just trying to help you, it’s not about how great we are. We are trying to transform your mindset. Speaker 2: This will work for you too. Audience: A lot of times being an entrepreneur you always focus on who has got my list, and one of the things Carl that I would like you to talk about is the state you are in when you went and started working on the mastermind. I don’t want to put words in your mouth but didn’t you call Jay’s list petrified wood, like it was tough? Speaker 2: Yeah. Jay: How many in this audience really didn’t think that they are not going to buy another thing from me again? Raise your hand. We thought different. (Laugh) Jay: Not because of us, because we thought you weren’t there yet because Carl would tell me I am trying to sell things, and he says you know that and I say okay great Carl and ask him how many strategic alliances? how many referral systems? How many of them were embarrassed and they didn’t know and we thought we owed you not letting you off the hook. Audience: Could you integrate what you are talking about with either the part Parthinon principle or the force multiplier effect? Jay: Is that a Yes or No question? Yes I could. Audience: And will you? [Laugh] Jay: Okay. So let’s take first multiplier. So where is our Colonel from here, where is our Retired Colonel? Jay: Major. Pardon me. Where is your Brigadier General come on up. No the mic is up here. You can borrow one of ours. So now in the service what did you do? Major: I was a Major on active duty, I was on M1 tanks and M1-A1 tanks. Yeah I know Force Multiplier. Jay: So I want to talk about war fare okay. You probably know war fare in a more elevated and scientific way than I. Right. Major: I understand it pretty well.
Jay: You understand force multiplier? Could you explain it first and then let me try to translate it from the militaristic stand point about trying to not just impact but knock down and destroy and decimate the target, the enemy whatever it is once and for all and you don’t care how its done, just that its done. Major: Sure I mean as you are attacking an objective you are usually given an objective in the military and typically what you do is, you take your own assets that you have been given and you determine how you are going to deploy your own assets. The thing that happens next is your boss says I can give you these additional assets if you can deploy them properly and there is a whole host of other things that go along with it but shouldn’t have ran up here. Anyways what happens is once you get those assets you sit and you decide how I am going to bring all these assets to bear at the exact same precise moment and time as I am assaulting the objective because as I have assault the objective. If I have been given artillery which is not an organic asset to me, if have been given air defense, if I have been given air its called cast plus air support, If I have been given helicopters, how I am going to bring all these things to bear on that asset at the exact same time that my soldiers come scream and across the hill top and start popping caps at the enemies. Jay: And one more thing and your goal is to knock down and decimate the target and it will be great if you knew that the bombs would do it or the foot soldiers would do it or the tanks would do it. You really don’t ultimately care which one does it. Major: exactly Unidentified: Just want to do it. Major: I want it level when I am done. Jay: Yeah. So give us a couple of more perspective or anything else. You don’t have to, I was just saying may be there is anything other like attitudinal or physiological. Major: Its widely psychological that’s a good point because you know first of all when you see an M-1 tank from the other end of the muzzle that generally sucks. [Laughs] Major: When you see you know a patty helicopter is coming across, then I have good buddies who flew those and Cobra Gunships and an A-10 war hog blast. Jay: All at the same. Major: yeah all at the same time. Jay: Its not a pretty picture.
Major: There is reason why ten years ago those [0:08:09.9] who got about their foxholes and start walking in mass to Jay Abraham [Laughs] and that same thing happens I think in marketing so. Jay: That has been very helpful. Mac I think answer does it. Thank you. [Applause] Jay: Certainly better than I would have. Mac: So he is airborne too look at that Jay: Such a great visual, so thank you very much. Okay we knocked that one down Rick. Anybody has a question. Go to mic, the only one question I must have either been very interesting or very boring? Audience: Boring [Laughs] Carl just see it, these are jokers. Audience: Before you ask the question I want to make one comment about Carl. I am on the east coast and got all this emails and then one from Judith Garf with the telephone number in it, 08:30 in the morning I called this number. Jay: 08:30 your morning? Audience: My morning and Carl answered that’s what [0:09:08.2] Jay: So let me give you a perspective its good and bad. This is an exercise in how to do something and also how not to do something. Carl is an amazing man I am not really in the seminar business anymore I am looking for those twenty of you that wanted to do deals with [0:09:22.9], businesses I get involved in and equities I can make and wealth I can create you know as an asset and stream for my wife but I got such a knowledge base and most of you couldn’t afford me and most of you, you know are will not be able to help so we’ll do a seminar occasionally for four or five reasons which I have already shared wonderful ethical way to find clients to it’s a great way to pay the overhead and for it’s a great way to keep my proficiency and learn from all of you. Carl is remarkable; Carl is so loyal he loves doing this. Carl is the sales person because we were really not in the seminar business, are we? We sort of do a promotion and Carl is like into in and go out for two months and chill out he is on fumes. He has been doing this because he loves it. I would suggest you do that because you burn out your normal stat but it shows you how much higher you are capable from human performance.
Jay Abraham Mastermind Marketing 28 Audience: I do not read, if you go pass one page but I’m here line email style, I send out short emails.
Jay: They weren’t us very affective. What is your business sir? Audience: I sell several things, but air purifiers, water purifiers. Jay: So all over the country? Audience: All over the country. Jay: I mean and I rather not now because when we are done with this, we are going to do some exercises between now and about 8 or 9 at night which will be much more specific and interactive and Q and A are problem solution or scenario and strategy/ tactics and answer but you have an optimum, it may be you don’t read them but somebody does and it maybe that you had to use your email as stage effect. But I will tell you what.. Matt: Here is a little secret, hardly anybody reads them all the way through. Jay: Yeah, but it doesn’t Matter. Matt: It doesn’t Matter because the evidence, you know the proof and the case is there and you can see that, as you scroll through it or you flip through it and you go look at the supporting evidence here, look at the detail they taken and you will go I will just cut to the chase and you to go the end and a lot of people go from the beginning to the end. It’s the fact that it is there if you want to pick it up that is important, not necessarily – you can’t necessarily force everybody to read everything in sequence, that’s not the issue. The issue is, are you answering every question that is being asked? That somebody needs to go further. Can they find it if they need it? If they trust you, they are guarantee, if they trust your risk reversal in the front end; they might say all of this is irrelevant because its risk reverse. But it’s there if they want to answer the question. The second part base is that… Jay: I only want ask you a question, only one right now because I want to get it all through, please and thank you. You will probably have more time, I’m sure it will be real nice when it get many people because we have a lot of ground to cover. Just two more, that’s all? Okay, you but the ones that had them, gives them a chance to ask them, okay. But just in this segment we are going to have to end, okay go ahead. Audience: Why I didn’t use HTML email and you think it would have increase you’re qualify lead rate. Jay: To do what? Why didn’t I? Audience: Yes. Jay: Because somebody whose name I wouldn’t mention, urge me to do HTML instead and said that would change everything and we did it and we got less response and more complains because it is less integrity. I’m not saying you guys
can’t, my voice, my communication, my style, it may be long, you may think its high beat but it is pure and it is straight forward and it’s more understated and home spun, don’t you think Matt? Matt: This is why you have to test. Jay: It may be that’s right for you, my style… Matt: I know some businesses and they are totally opposite of that. Jay: And they get great results and they test it along but we – you have to realize one thing.. Matt: Yeah. Jay: What you are doing, remember when Patty Lens said, like he basically – he invites the people he wants and he disinvites the ones he doesn’t want, well your strategy is going to create the people you either like long or short, just by the way you do it. First of all it might bring a combination that you integrate together and bring through. A number of people have told me that my training and my written style as powerful as it is, it isn’t really maximizing educational approaches and so while it appeal to one segment, it totally unpeel to 2 or 3 other. I’m sure it’s true, right now I’m content that I attract a certain category that is in this room and I turn off another category and it’s not the one in the room, it’s the one that left. But you got to realize whatever style you take, unless you exist, we try to do bunch of different things but I only know this is also prejudices, my prejudices. I came from environments where I had to be able to denationalize, articulate, denomensiably, validate enormous tangible, intangible worth to a lot of intangible things, newsletter, investment forms people never had. So I had to become, I sold – I mean I’m very proud, remember I sold like $2 million worth of Salvador dollar linking without ever having a picture. Matt: Without a print, without a picture. Jay: Never saw the picture, no it’s serious. I describe it, I describe the effect, I describe how cool it was, I titillate the fact you look at this thing, you look at a woman butt and you see Christ in a sort of weird and I thought if I did it with more eloquent and… (Audience laugh) And I titillated, I explain it, I desensastionlise it, I revered it, I compared it but I learn how to do that early in my career, so that prejudices follows through. I’m a little bit of a hypocrite, because if I taking it full force, we would do short ones, we would do everything and I’m a little bit lazier than – I got to tell you this, for a person with no real staff anymore, we do a lot of shit, don’t we? Matt: Yes.
(Audience laugh) Jay: You have no idea of the stuff we do and I… Matt: And you have had real staffing. Jay: Yeah but I do more with – I have an attitude which is pretty need, so remember at the X-Factor last night, Ed O’Neal and his wife and a group, I don’t manage particularly well, which is no great surprise, probably to you, but I learn how to get the effect of billions of dollar worth of really good managers and capitals. Somebody said to me, Jay what’s your strategy of management? I said it’s really simple, it’s called ‘Do a strategic alliance with somebody who’s got 200 to 500 employees and has a need to keep the payroll made and the cash flowing about 10 times more than I and I will be glad to run with my ball. Matt: Yeah.
Jay: So I have lots of people that do stuff with me. Carl is not an employee, he's a joint venture partner. This thing I forgot - this is selfserving - if anyone has a nice entrepreneurial list of email, I want to know about it because we have got the hottest email offer. We made $750,000 with one person working out of his house to setting up email with list. We pulled $6 a name and the good ones which are pretty impressive. Just because we don’t purport to understand emails but we understand marketing pretty good. Audience: Yeah, I had a math question. If you could expand on the model on which you got all of us here. Carl you were talking about it briefly, initially about how many emails you send out, how many email lists... Matt: One of the things that Rick asked Jay to touch on, and it's more of a Jay question I think, is the front end affinity tri-venture and what that does to the dynamic. Jay: Okay, we are going to talk about JV sometime in the morning, so I’ll do a little bit now. I called my wife and told us we'll probably be done by ten, 11, 12, one or two. But seriously, probably three. I believe that a strategic alliance - somebody ask me sometime, "If I took every one of your concepts away from you but one and you had to live or die on that one, for the rest of your life, what would it be?" I said, "There's no question, it would be strategic alliance, because somebody else spends a life time, ten years, enormous amounts of human and financial capital and effort - going to huge audiences to find that resonate with them, committing themselves over and over again, transaction by transaction, month by month, to keep good will and keep advancing and regenerating that. Spending tens, hundreds, thousands, millions of dollars a month, quarter, year on staff to fulfill and technology to do it to research and
production. And I get able to come in for underwriting a cost of a letter or for making a profit deal, get access to emails that may cost them $100 million dollars” - I have told you, you have got a $500,000 dollar unintended gift from me with that list. If anyone gets any solicitation from that list that didn't emanate from me, you let me know right away because we will smite that person with the full force our negative Karma. I have an advantage most people don’t. This was part of my strategy from the beginning. I have invested in, created and enjoy the wonderful pleasure of having a reasonably substantial amount of good will accrued around the world. That's always my plan. My plan to invest forward, if nothing ever came. I'd still get a payoff, someday, somehow, somewhere; I could help people. I have in this room, probably 50 of my ex-clients or good friends that I insisted on buying an attendance for. I took a quarter million dollars out of Carl and my pocket when we had a configuration that we thought would be over filled, because I could not let them be here. How many people here, as a guest of mine that I hounded you to come even though I took money out of my pocket? A lot of people because I felt it was the thing to do. I believe in helping - Brian Tracy - I have gone and helped him two or three times. All the people here I've helped and a lot of them have paid me and a lot of them through joint venture. I can go to somebody who is either benefited from my services or has a relationship with me and I can get them to basically do about anything, because they know I am not going to ask them to do that isn't in their client's best interest. They will also benefit but their clients will benefit more. I won't ever breach the integrity of the sanctity, I'll do it right. I can go to anybody in the entrepreneurial arena and odds are if they are entrepreneurial they know off of me or my reputation, which is pretty good. I have got 188 matches on google where couple of people spend five grand or maybe 25 grand and did nothing with it blame me not themselves but most of it is pretty darn good. If they don’t know, I can normally have a conversation with them in an hour or so and give them so much value that they are honor bound to reciprocate. Our attitude, which should be your is, there's tons of people out there that have already spent a fortune, time, good will, capital and human capital to build the relationship; why not figure a way to collaborate with them. I don’t have time on this little segment but to go through the nuances but I am delighted to do it when we come back or are done with this. Out of 100% people in this room, how many came from other people's list, as a percentage? Audience: Approximately a 100. Matt: Came from where Jay?
Jay: Other people's list. But incrementally that's a half a million dollars we wouldn't have if we didn't do it. Matt: Your list is composed of people who came initially on joint-venture. Jay: Who’s a previous Jay Abraham product or attendee buyer, raise your hands. Keep it up. Only put it down if you got an ad in the outside market if you came from any endorsement, keep it up. If you first came to me, because somebody you had a relationship with, Tony Robins, Nightingale, Garry North, Phillies Publishing, Angora Publishing, if some organization or entity endorsed me in the very beginning when you start a relationship, if that was the case, raise your hand. Okay, stand up, go to wall. (Audience Laughter) Jay: It may sound like it’s an exercise but I want to make a visual that I want this to always be indelibly embedded. I am sorry to you but I think you will appreciate that I am doing this. Don’t you think Matt? Matt: Yeah Matt: I am appreciating it. Jay: If I just ran ads in the paper, if I just rented lists from the outside market and did nothing else - wait till everyone clears out... Matt: My guess is; half the people sitting down just don’t know how they got it. Jay: Did you start your relationship by reading an ad in the outside newspaper, or did you get a letter or an email about me from somebody you had a relationship with. Think again before we do the count, because you did go to the wall. Okay don’t count the people at the seats. Count the people around the room, times not $5,000. How many people, in this room, have bought more than this from me, raise your hands. How many people in this room have bought at least two live or home study courses in the past, raise your hands. We have 40,000 people on our old list to which most of you came from that has spent about 90 million dollars with us. Probably, of the 40,000; 32,000 who probably spent 80 million dollars wouldn't be here if it wasn't for what? Matt: Once wall street journal had a special on business education. They had a lot of numbers from various universities programs and I started to add their fees up. Jay had trained more people and made infinitely more money for everybody with bigger results than all the university programs put together. I am not talking about undergraduate, postgraduate,
business executive, small business - it was incredible. How small some of those programs were with all the clout that says, Orton has for instance. Jay: Matt only because we are two minutes behind on our schedule. I am not showing this to show you how great I am. I am trying to show you opportunities for yourself, do you clearly get that. One thing I need to do is going back to the mic. How many of you people, standing up, got something - maybe not profound but impactful - out of what we just talked about? I need about seven of you on each side to stay at the mic and the rest of you sit down. Whatever the rest of you got something, you have to tell people what that is during the break or lunch, whatever come first. I need about seven of you on each side of the two mics. I want you to explain what the insight is, how it can be best applied by everyone - as quickly as you can, go ahead. Audience: Well, Jay I started getting your emails about the Mastermind Alliance. These emails kept coming. They were very good and they talked about Napoleon Hill. Then, I started getting the emails and as they went on, it just got better and better and you explained how I'd be in a room with 650 people and I'd be getting all the energy. It reached a point where I just couldn't say no. Jay: What's the impact for everybody else here? Audience: That we are all benefiting tremendously. We are meeting people, making contacts... Jay: What's the impact of that awareness that can be translated into an application that everybody here can use on themselves or their business? Audience: I think all of us have to be much more aware of sequential marketing. Keep doing it consistently, weekly and eventually this is the result. Jay: Good, Thank you Audience: Jay, I think you just proved it when this last time we got up because you asked the question how many have gotten from either Tony or some other associate, bunch of us went to the wall. Then you repeated the question again basically said the same thing and another group got up so we just asked again and it happened. That's what I got. Jay: I like that, thank you. Audience: The way we acquire things and the way things come to us, it's always - Tony Robbins once said, "I don’t want to own anything, all I want to do is have access and use of because we all come in naked and we all
go out naked alone. All we do is rent this stuff while we are here". The acquisition of relationships and the way you draw people together. I was looking at the table last night, I kind of ditched out, and I noticed you are very specific with language. You are very precise with it, even your coin words tie into the precision - are we going to go through a program? It doesn't say program, are we going to go through a seminar? Doesn’t say seminar. I looked at your stated purpose and I thought about this word, training. What you have done here is if you remove the name tag and puts their thumb over the word training, you find out we have just been acquired. We have just become and entity that is - read it. We are not in a seminar. We are not in a program; he didn't use that word did he? If you got a parachute, in training school when you are done, you become a paratrooper. We are not at a seminar, we were acquired. We are at a training. Now, this entire body that came from relationships and associations is now a new association proprietary to him and we are collectively Jay Abraham's Mastermind Marketing group. Matt: You and 10,000 people before, which you will find connections with maybe 50,000. Jay: We will try to get you all connected somehow, some way. There are a lot of people who have done something on eBay. (Audience Laughter) Audience: I came to the program specifically because the way it was marketed. I am familiar with Jay's stuff. I have been to several events for about eight years but it was the marketing process of attending it. I discounted coming because of the schedule and everything but Carl quilted me into it because I realized what I didn't know about everything that I have been taught, but specifically the process. The thing I realized when I was sitting here, more so with the synergy and the accumulation and the connectivity from Robert Alan and Marc Hanson and everyone and how this is one community of ideas and that was probably more good than anything. Jay: Good, thanks. Audience: I first found out about Jay when I was working for Tony Robbins organization. It was a number of years ago and it continues on a lot over the years. The thing that struck me today when I was up against the wall, was that when you set an alliance, that is a gift that keeps on giving for years and years, people come back and do more and more out of the one time - connection from alliance.
Audience: I got my first exposure to this seminar through Tony Robbins mailing. I looked at the price and threw it away. It sounded great, but I didn't know, threw it away. A friend of mine is here and she says, "I have got a couple of emails from Tony Robbins," I deleted them. Then she says, "Okay we have this great offer. We can both go and share," then I am listening. Someone said, "You could use certain funds to pay for it". Now, I am really listening, so I am picking up the phone and making all the arrangements. So, it did take a lot of levels to get me here. One thing I am taking away is that my greatest asset, which is strategic alliances, is the only one amongst others that I haven't done anything with. That's my greatest leverage. Jay: That's great. This is true, most of you don’t realize that you have a dual valve and I'll get into it when it we talk about it deeper. You can joint venture off of other people's lists, media, data, and deliverable communication. They can do off of yours and they are very wonderful and very powerful and lucrative. Very values based beneficial, two way contribution strategy for you that can make a very, very big difference. Audience: [Unclear 00.00] for me, from this is been the power and strength of relationship with whom you are doing joint ventures with - with the people on their list. I had gotten some people [unclear 00:01] but I don’t have that kind of relationship [Unclear 00:05] but I had with my friend Joe Christopher who sent me an email. I didn't even open the package from [unclear 00.24]. I get so many emails from them but when I get something from my friend Joe, I read it. I read that and it said that, “Jay is having a conference. He hasn't had that in eight years. He might not have one again.” I told myself I was going. I didn't even listen to the tele conference. That was it for me. The thing is, when you are analyzing joint-ventures with somebody with a list, look at how strong their relationship is with their list. That's going to give you a much greater response. Jay: Great, thank you. Audience: The optimization formula, seeing how you came from strategic alliances and the number of clients and then upselling - I'd much better be here than listen to the tapes, but I'll listen to the tapes for sure too. What I am curious about is, on frequency, what the strategy would be if you had these three or four times often. Would it be easy to sell and fill seats like you have today? Jay: We used to 12 a year. What happened was Carl would - and we had a sales force. Three things would happen, we would have so many people coming through the process in the pipeline there it was only a matter of
graduating them in about 20% of the home studies. I have one advantage over most people. You all do too if you do what Bob Alan said and have to figure out your audacious - my stuff may not be packaged well and our time commitments may be terrible and the pasta maybe cold but we give you guys so much more, in everything we do. What we don’t do is try to give you so much more to make it up to you that you can't hate it. You got to see as a role model what you should do. We basically give somebody a home study and 20% think, "Damn! I want to experience that, or they go out and use it and make 50 or 100 or $500,000. Then, psychological laws and reciprocity come in and they feel like they have got to give back. We are very strategic but it's not manipulative. We don’t really care what we do from hour to hour. Do you guys really care whether I basically use an instantaneously conceivable exercise to make a point or whether I go through a list of elements as long as you get it, really? We understand that, that's sort of our attitude. If I am good at anything it's figuring out how to reclaim something, making way to Sunday ethically, don’t you? Matt: Yeah, you are the bounce back king, no question about that. Jay: We'll just figure so many things to do with we don’t have anything else to do it, we'll figure someway to joint venture ethically with somebody else who can do more stuff that we can't. I take the attitude of how many ways should I, can I and must I give greater value to benefit, protect to my market and you should think the same thing. Audience: Jay, the single most important thing I have learned is to contact many people, many times with many offers from many different points of views and then always follow up with a personal touch. Jay: There's one other element that maybe Carl talked about. The composition, the construction got to be externally focused. It's got to be with their best interest in mind or it will not work. Talking about me, me, I, I, I; we, we, we instead of giving to you, you, you and thinking about they, they, they will just be suicidal. There was one element we may not have covered but that is a critical to connectivity, don’t you think? Thanks Audience: Hi, Robert Harbower from Apparel Emboss. We manufacture and distribute emboss equipment decorate apparel. Think that I learnt was, I remember when I got the email which said 40 days and nights of merciless money making, I was looking forward to it. The thing I am taking away is Jay's honest. He tells you what's going to happen, how it's going to happen, how's he's going to get there and then he takes you on the trip. Sometimes we sit here, we hear all the speakers but we forget that we have to tell people what we are going to do, instead of starting to do it right away. That's the biggest thing for me. Thanks.
Jay: I am suggesting that this will work for everybody but I found, not just spiritual but success liberation in not trying to keep people in the dark. If I didn't explain what we are doing and why we are doing and why does it matter what we do, you'll end up getting what you want - you'll be a little bit frustrated, wouldn't you? , "What in the hell is he doing?" but by taking all that confusion, those questions, that inconceivability and incongruity away and replacing it with logic, with respect, nurtures educational awareness and taking it down the path while future pacing it and why we are going to change it all the time - please turn that off - it makes it a totally different dynamic, doesn't it. Did I tell you all, you are going to get, 40 days and 40 nights of merciless money making and you'd be shamefully embarrassed not to sign up for at least a home study because if you were a person prejudiced towards action you would be honor bound to give back. Any one of the reports or the excerpts I send you will blow your mind and you could do anything with one of them. How many people took a report? One of the free excerpts and did apply it and got something out of it? How many didn't read the report and didn't apply it and now feel like you want to kick yourself? How many don't know what you know or feel? How many are brain dead from the weekend? (Audience Laughter) Jay: How many don’t know if you are in the right seminar? How many of you think this is [unclear 08.29] family program? (Audience Laughter) Jay: How many of you came here for the free cold pasta? (Audience Laughter) Jay: Just checking. Continue. Audience: What I got of the whole thing was that education shouldn't be measured monetarily. That goes hand in hand with what you were saying about educating your clients. Audience: May name's Bob Adams. I like in the UK. My invitation arrived on Saturday morning in early November. I faxed back the acceptance on Sunday. I am unique in the sense that I didn't need a follow up. On Monday I got a phone call from somebody to say, "We've got your fax, can we just check the address. We have to send you a packaged material". The lesson I want to give everybody here is - reinforcing the point that Bill made - you get an opportunity to meet somebody, make that first impression count. Thank you.
Audience: To solidify my AHA! Moment, I'd like to know how man in the room here would be in form or another a millionaire. May I see your show of hands? Yet they applied and signed up, no matter what level your customer is. Market, market, market. I market to millionaire and I am always hesitant that I shouldn't email them too much but I was just proved wrong. Audience: Hi, I am Pamela Collins and my husband is Tom Collins. Jay: Not to be confused with [unclear 00:33]. That's probably the first time anybody has ever made that joke, I bet. You can use it from now on, okay. (Audience Laughter) Jay: I'd never heard of Jay Abraham at all. I have worked with Tony Robbins for a number of years. I was a trainer for him and did a lot of things. This last year got my husband involved with Tony Robbins and some of his ideas. What happen was that my husband came to me because we are at a point in our office where we couldn't seem to get to the next level. We had used the Value Pack and the quality of people was a onetime thing. It just wasn't working to the degree that we really wanted to see our office grow. I sat and I thought and I called Tony Robbins and spoke with Billy Sanderwall there. I begin to tell him my dilemma. I said, "You know we are involved in several of your programs. If there's anything we can do so that we can learn to market our business more effectively". She said you know, "What you signed up for really doesn't gear you in that direction. You know what, just this week we had a meeting and was told about the Jay Abraham program. I have 25 page fax that I'll send you and you can take a look at". I said, "25 pages, my word, what is this?" I couldn't believe it. She sent it to me and I began reading it. I highlighted all these things and said, “Tom, I think it's incredible, because they are going to guarantee and if it doesn't work, we get our money back". We looked at it, we talked about it and I called her back and told her that we were going to do it. The kicker is the big package comes in and I don’t recognize the name on it so I said, “We are not accepting this package, this a bit heavy thing". I didn’t know what the heck that was. I was going to reject it, my husband says, "Now you just wait a minute". He goes back in his office, he opens it up and comes out and says “You owe me an apology”. He opens this thing up and I am like, "Oh, my word, look at all this stuff, it will take us a year to get through this". We started listening to the tapes, because we have another office in the mountains. So when we take our weekly trip up there we started listening to the tapes. I am writing information down and all the stuff starts coming to me. It was incredible and it was even before we came here. I just want to let you
know, it's exciting to be in an environment where I see there is support group and there is a way to be able to see that there is direction. There is way to have things work for us. There’s always a way. It's exciting to see the reality that there are a lot of motivated people out there that are very interested in supporting other people, having their business grow, being great in shape, add value and make a difference not only in their own environment but also do that to all those around them. Thank you so much, this is so exciting. (Audience Applause) Audience: [unclear 04:08] generation investors. This is my seventh Jay event. I just want to get something off my chest before I explode. This is the Mastermind group, Jay's group, right here right now. This is not the end, this is the beginning. Look around, there's a lot of generous people in this room. From my experience from 98 events, I am still in contact with a lot of people that I can send them my ads and my ideas and they will let me know what's happening. I am sure the people in this room will do the same for you. So use them, work with them and help them too. Jay: Don't hustle, unless you like to dance. Audience: Hi I am Jean, apparently a resident Psychiatrist... Jay: Soon to be a pathologist. He wants to sell you a series [unclear 00:07.27] after Quincy. Audience: Just addressing the force multiplier effect. I feel that certainly I have been approached that way by Jay coming at me by deploying multiple speakers. Not to really destroy me, but build me up. And I have found that immensely valuable. I think it's an excellent example of permission marketing, because I have paid to have these people market themselves and their products to me and it's one of the impressive things which, I think. They have the insiders club and the insights and I paid to get the excerpts of their speakers programs so I could review them and perhaps buy them. What I have gotten out of this and perhaps others can also use it, that first to really establish myself as becoming empowered as a preemptive, preeminent expert in the area I want to address. I could create a book, 'A la Chicken soup series' by really not writing it myself but getting some of the people I have done research in the area I am interested in to write it more in Lay man's terms. It would be more appealing other than in the select specialist area. Then, give added value to the contributors of the book, just as Jay's given it to the speakers who have come to speak to us. This would educate the public with added value
in terms of reports or white paper. Perhaps, you can get a website for this they can download it. Jay: Thanks a lot Jean. It’s good having you back the seventh time. We are going to break for lunch short, not yet. Who did not get some meaningful, maybe not profound, but meaningful insight out of this day? Anybody? If you didn't do me and yourself a favor and make that insight known at lunch to the rest of your table and see if they can help plumb out of you the fact that you really did. You just haven't validated or recognized it yet because I think you have. If and when you realize you have what it is, realize what the action is associated with that recognition of the revelation is, and what you need and will do with it when you get back. At lunch, go around the tables and share it with everybody. And since this is the last day, unless you guys are going to hang out tomorrow, if you are done with your sharing at the table, pick up your plate and maybe exchange places on other tables. If you get spilled water on you, don’t get upset, just wipe it up and move to another table because this is the last chance today and the dinner you are going to have to do this then you should have a lot of insights to share and if 650 get to tell at least 30% of the people at lunch what they got out of today or accumulative new insight, it will be like getting like 650 different seminars, all condensed into an hour and half which is a pretty good leverage. If you have email list that has a lot of entrepreneurial business owner, serious quality business opportunity seekers, professionals, association members that are heads of businesses or managers you should come up and see me yourself. Give me a card because we do money making secrets book and it's been a killer. We only do it as an endorsed promotion. It's a very generous one. I don’t handle it but colleague of mine does and we'll set it up with you in January. We only do it in launches but it's a killer deal and you probably can make tens or thousands of dollars from it. Audience: I just wanted to say one thing about the session here, who wanted to demonstrate that process marketing works. One, you have got an example out of it and two you do it. That was the idea of the session when Rick and Jay were talking. Jay: Did we accomplish it? Is it evident to you? Audience: I don’t know. I think we did. I think process marketing does work. You can do it. Jay: Remember I said I am going to take three things and tie it together. Matt: Carl, did they get this list? Carl: I'll email it to everyone.
Jay: This is wonderful. This is Car's principle and process of marketing. They are very interesting. Number one; most entrepreneurs provide great products or service but only know how to market like there competition. Number two, effect marketing can make a difference between making a living and being very successful. Number three, Jay Abraham's marketing training can make that difference. Number four, I owe it to my prospect friends to help them get the success they deserve. Number five, I do whatever it takes, ethically, to provide my prospect friends to provide the marketing training they deserve. Number six, I had a dream of helping the world entrepreneurs become even more successful through effective marketing from Jay Abraham. Number seven, I have a plan to achieve this dream. Number eight, I love to set impossible goals to achieve them. Number nine, I believe I will attract the right people, staff, and friends to help me achieve these. Number ten, I love to plan, implement, track, adjust, plan, implement, track, adjust, plan. Number 11; I must mentally sell myself on any product or service before I sell it to others. Number 12, I develop excellent sales tools; sharpen the saw. Number 13, I believe I parlay prior successful processes to future successful proceedings. That's Carl Turner mind-set. That's very wonderful it is. Audience: (Applause) Thank you Carl. Jay: One final thing, will take about seven minutes, depend on what we have got. Years ago, I was fascinated with the concept of thinking outside the box and now it has gotten tripe. Now it's got some pretty cool inside the box stuff. I want to make a point in this session, what's the metaphor to show how ludicrous and limiting and stupid; operating at a rigid paradigm or linear thinking or conventional attitude or being unable to stretch outside and open your mind of possibilities and applications and approached and ideas from other markets and I thought if you got a box like this, you realize that most people trap themselves in a box. When you look at your hand like that it looks pretty daunting. When you hold it away it's pretty little, but if you think about the effort that it takes all day and night, to keep yourself squeezed into a stupid little box, it's about a thousand times more effort than it takes to just take the damn thing and get rid of it, then your whole world is your oyster. Does that make sense? What I like you to do, because we so happen to have a few dozen boxes here, we are going to pass them around the tables. I want the first person to get it to say, "Forever more, starting this day, my personal and business life, I will never again stick myself inside a limited box," or something to that effect. First person does that, sign your name and date it as an affirmation and pass them around and when you are done, then you should go to lunch and come back. If you leave early, everyone's watching you that you are hypocrite and you don’t get the attitude and we
will make mockery of you for the next seven hours, so you are all deputized. Watch who leaves or who tries to get the first piece of cold pasta. It's now 1:30. This will take ten minutes. We are taking an hour and fifteen minutes break. I want you back at three o clock at the dot. Rick: We have a Donald Moine fanatic, fan, zealot. Okay, two fans. Any more fans of Donald Moine before we get started. Audience: (Applause) Rick: Oh my goodness. You got a fan club, that's great. For those of you who are not in his fan club, one of the things that really got me excited about it was that Jay asked Donald to coach him, counsel him, on improving his own sales process. I don’t know the exact figures but Jay told me that he had geometric improvement in his closing rate. Donald: It’s more like exponential. Rick: Sorry. Exponentially 25 times per call. He's got a very powerful message. As you can see, Jay loves being fluid and spontaneous and knows how to do that. Those of you are sales people in the field, you can appreciate the value sometimes of being able to think on your feet. Donald has a different message. It’s very specific, it’s very structured and I think it has a lot of value. Any man that can improve somebody's sales that's already a master by 25 times, I am listening to you. With that said, Donald Moine. Donald: Thank you Rick; that was a great introduction. It was just the way I wrote it. How are you all doing? Audience: Good Donald: Folks, here's the way this works. In case you haven’t noticed, this is a live presentation. The more energy you give me, the more I'll give you back. How are you all doing? Audience: (Scream) Donald: That's more like it. I think you are doing lot better after lunch. For those of you watching this video in the year 2010, we are in Los Angeles California, December 2002, we have been going from seven in the morning till two in the morning at the Jay Abraham Mastermind summit. We just went from seven in the morning till two, without lunch. You guys look a lot better now. You look marvelous. I have a very interesting challenge. You have about three hours of material to share with you in one hour. I was doing another boot camp in the last three days that's why I
wasn't here. But I am very happy to be here today. Jay told me this is one of the smartest groups he's ever had. Is that true? Yes or Yes? Audience: Yes! Donald: Alright, so we are going to go into hyper drive. But I have an interesting challenge because guess what? My wonderful program is in volume two. And as I look out over your desk over the thousands of page of material you guys all have volume three. Since you are so smart that's not a challenge. You are going to take rabbit notes, you are going to transcribe into volume two and I am going to sweet talk Jay into sending you the completed notes. Because I don’t have people sit here passively and listen to me. I make you work. I have fill in the blanks, we have exercises. I am going to do this a little differently than what I normally do. I am going to follow the outline, I’ll tell you to write some things down, write down as much as you want, have some fun. Some of you are still eating, that's fine and we'll get you the completed notes. I had a fascinating experience about three week ago. I have been privileged to be on group calls with Jay Abraham, Brian Tracy, Mark Victor Hanson and all of the other speakers. Some of the most brilliant marketing minds in the world. We brainstormed this program. Jay got us together about a month ago and said I want to talk to all of you guys and have one question, "What is going to be the big marketing break through? What's going to be the mega trend of 2003?" This diverse group of people, we actually reached agreement. Can you believe that? Back to basics. Brian Tracy says he's going to go back to basics. A lot of people forgot how to market. It was so easy in the 1990's wasn't it? We forgot how to market. I do a lot of work with financial planners, stock brokers, I just signed up a top annuity sales man in the world. He makes $5 million a year selling annuities. He hired me to help him make $7 million. I said a year after that, we'll make $10 million. It got too easy for stock brokers and financial planners in the late 1990s. They forgot how to sell. A lot of them are starving. How many of you are financial planners or stock brokers? How many of you are stock brokers but you didn't raise the hand the first time? Audience: (Laughter) Donald: Okay, I see a few more hands going up out here. Folks, it's back to basics. This stimulated my thinking, I started thinking. What are the real basics? Why aren't you selling more? You guys are the superstars. You're the pinnacle. You are the superstars of the entrepreneurial world. Comes down to three things. Number one, your product is not good enough. If that's true I can't help you. That's not true for most people. Most of you have outstanding products, world-class and innovative.
Number two, your service is not good enough. Your service sucks. If that's true, I can't help you, you need to work with another consultant. But that's not true for you because I've gotten to know a number of you this morning. Your products are outstanding, your service is great. Why aren't you making more money? Why aren't you enjoying the success you deserve? It's because your words aren't good enough. Write this down in large letters. My words can make me rich. You can't change your product overnight. You can't change your service over night. You can change your words. Ladies and gentlemen that's all you need to do to double your sales, to triple your sales. Do you believe me? Audience: Yeah Donald: To accomplish anything in life you have to first of all believe it's possible. Let me share an example with you from, Jay Abraham earlier this summer before I met him, and I have been buying Jay's material for years, just like you. I have spent thousands of dollars on his brilliant books, tapes but I didn't meet him until easily September of this year. In August, another client of mine, that many of you know named Ted Thomas had Jay do a 90 minute conference call to 1,800 to his very best clients and Jay was supposed to market a $5,000 package. At the end of that 90 minutes, as brilliant as he is; he sold three. Ted was disappointed, Jay was disappointed. Jay said what can I do Ted. Ted said, "You have got to call Dr. Moine". You don't have to call me doctor, call me Don. He said, "Cal Donald Moine". He helped me go from a closing ratio of 2% to 35%. Same product, same price - changed his words, and that can change people's lives. Ted Thomas called me up and said, "Donald, Jay Abraham is going to call you in the next half hour". I said, "Yeah right, Ted". Within half an hour Jay Abraham called me. We found out we live about a mile from each other in California. There's peninsula jets out in the ocean about 20 miles southwest of here. So getting together at odd hours at his house, he has his office, he call me up at eleven o clock at night, that's cool, so I started coaching him and that was cool. I started coaching him because on October 4th, he had another event coming up with Robert Alan. A little bit over 500 people were showing up. Changed a few words here, changed a few words there; Jay is a brilliant marketer but he'll be the first to admit he's not the greatest one-on-one sales person. Instead of working at my usual hourly rate, Jay said I am not going to pay you. I am going to do even something better. Audience: (Laughter) Donald: I said, "Wow, what's that Jay?" he said, "We are going to do a revenue split. We are going to do variable compensation. If it doesn't work
I don’t owe you anything, if it works you are going to get a big piece of it". I said "fair enough". Folks he went to the Robert Allan program. I wrote scripts for him, I emailed him scripts. Jay doesn't read his email. His secretary prints out his email, then he reads it. He called me at home, I met at his house. His Palatino mansion, 7,500 feet - I walk in there - acres of granite. This is the best story about the power of words, by the way. It's one of the houses you can see through. You walk in through the big double front door - some of you have been to Jay's house, just granite everywhere, beautiful. I said, "Jay how much did this cost?" Because I have put granite floors in the couple of my bathrooms, it's very expensive. He said, "It didn't cost me anything. I met a guy who has a big stone yard and I did a swap. I exchanged some of my services for $45,000 worth of granite". That's just the material cost. That's the power of words, ladies and gentlemen. He doesn't pay for anything. One night he was on the phone with me and its 11:30 at night, he says, "Donald I have to get off the phone". "Why?" I said. "I just had a brand new Porsche flown in from Germany, put on a flatbed truck and delivered to my house. It just arrived here from New York". I said, "That's a good reason not to talk to me Jay, get in that Porsche go driving man. He doesn't pay for anything. That's the power of words. So Jay does the program. He says, "Donald you have got to come to office Friday morning, I have forgotten some of the scripts. You have to print them out again" - he lost them, "come to my office, coach me, Carl Turner's there". Jay's always on these weird diets so he's eating eggs this morning and drinking his "pawn scum". I give him his scripts, I am there coaching him and he call me up at the end of the day says, "Don, I have got some good news for you and some bad news. What do you want first?”. “Bad news," I said. "Don't know how I did it, I lost the scripts. I forgot half of what you told me". I said, "Wow, how much worst can it get?" He said, “Now, I have got some good news, I closed 48 people, $5,500 each. We brought in $256,000 dollars for a ninety minute talk. That's pretty good isn't it? "Folks that's what a plumber makes!" Audience: (Laughter) Donald: I am getting a piece of that, so I am pretty happy. Do scripts work? Do powerful words work? How many of you have used scripts? Folks you used all be raising your hands. I will conclusively prove to you in the next hour. Every one of you in this room uses scripts. You just don’t know you use scripts. Do you know what a script is? It's simple - write this five start bonus idea. Script is an organized collection of words, that's all it is. Your words are either; organized and powerful, they are polished or disorganized, they are rambling you are shooting from the lip and shooting from the hip. That's a lot of entrepreneurs and sales people are. They wonder, "Why am I not more successful?" Sometimes I have been
hired by fortune 500 companies to coach their sales people. I say what are your toughest objections? That's frequently what I ask people. What are your most difficult objections? Why doesn't everyone buy from you? I want you to think about that right now? Why doesn’t everyone buy from you? What are your toughest objections? What’s separating you from the sales? They tell me those objections. I say "What's your best response to that first objection? What's your second best response? Third best response?" Most of the times they don’t know; they say they will think of something. Then they wonder why they are not successful. Folks, we all use scripts. The only alternative to scripting, since you don’t have your notes, I am going to do this from most of my memory, is that okay? And I am going to sweet talk Jay into getting those to you. The only alternative to scripting is something called ‘Glossolalia’. Since you all know what that is I am not going to define it. What is glossolalia? It is word salad. Its speaking in tongues. It’s what schizophrenics do. It is nonsense. Its gibberish. Up down - couch - sofa - food - chair - blonde - blue eyes - brown hair - light; do you talk like that? If you don’t speak in glossolalia, you are using scripts. How many of you, last night, called your spouse on the phone? You used a script. What did you say to your spouse? Your words determine what you get in life. My words determine not only how much money I will make, my words determine, how happy I’ll be in life. Your words determine not just how much money you make, your words determine how happy you will be in life. If you are unhappy in your marriage, it's because you are using low quality words. What did you say to your spouse last night? Did you say, "Honey, did you wash the car? Did you do the laundry? Did you wash my underwear? Did you starch it? Did you clean the cat box?" Those words are going to get a certain response, aren't they? Audience: Don't come home. Donald: Or did you say, "Honey, I really miss you, I love you so much. You are the most beautiful woman in the world. I am the luckiest in the world to be married to you. I am going to the most powerful training in the world. When I get back, I think, realistically, I’ll be able to make about a million dollars in extra sales before Christmas. I want you to reserve the week between Christmas and New Year, because I am going to take you and the kids on a trip to Hawaii. We are going to stay at the finest hotel. Honey I love you so much, I can't wait to get home with you. This seminar is incredibly powerful". If you said something like that, you'll get a different response aren't you? Say yes. Audience: Yes
Donald: Folks we all use scripts. It’s not a matter of not using scripts. You use organized words, whether they are written down or you rely on your memory. The only question is how good your scripts are. There could be someone else in this room who has an inferior product, inferior service but they have a more powerful sales person, whose going to sell more? They will. For those of you who do have your books, this is section nine of book two and you can follow along with me. Why didn't half of you admit that you used scripts? The reasons you won’t admit you use scripts is that, bad sales people use bad scripts. When we think of scripts, who do we think off? We think of the people who call us at seven o clock at night say, "Would you like to subscribe to Time magazine for thirty years? Would you like to change your long distance service?" Those are nonprofessionals. Don't judge yourself by the worst practitioners. Do you know that Jay Abraham uses scripts? Do you know that Robert Alan uses scripts? Do you know that every single speaker you have heard, uses scripts? You take away their scripts - how good are they? The first speaker this morning talked about personality types. Are you a red, are you aqua or are you yellow. He wanted you to take his test. He was a great speaker. Robert Allan talked about personality types. He said, are a tortoise, are you a hare, and are you a rabbit. He asked you to go to his website and take his personality quiz. That’s one of the oldest ideas in the world. I am a PhD psychologist, it’s called temperaments. Hippocrates wrote about black bile, red bile, and yellow bile around 2,000 years ago. This is one of the most important ideas you are going to get form this conference. Whoever has the best words wins. Whoever has the best words wins. Are you going to go to that website and take that personality test or you can take the one's that's handed out. Who had the more powerful words? Who reached you? Do you sales people have the most powerful words? Does your website has the most powerful words? Do you have the most powerful words? I am going to show you how to create those yourself. Now there are many different types of scripts. There’s the initial presentation script, question scripts. How did Socrates teach? Socrates is considered the greatest teacher who ever lived. He taught with questions. President John Kennedy was asked, "Mr. President, why is it that all Irishmen answer a question with a question?" He thought about it for a moment and said, "Do they?" Scripts for dealing with concerns and objections. I don’t even call them objections anymore, I call them concerns. People don’t have objections. They have mere concerns, mere little trivial concerns. That's called reframing, it's a whole other seminar. Then there is closing scripts. The boot camp I did over the last three days, a number of people - when we started off on Friday, when we asked, "What would you most like to get? If I have a magic wand, if I could bop you over the head, give you any power and ability you wanted?" Many of those people read a number of
my best-selling books on neuro-linguistic programming. I wrote the first book on NLP in sales. I think that's when Tony Robbins was in junior high school, so a few of you have read it. It's in about 11 foreign languages. I wrote the first book on hypnotic selling techniques. About the only criticism that book ever got was that it was too powerful, some people said. It gave people to much of an advantage. There's an over emphasis, ladies and gentlemen on closing. Some of the people on my boot camp, these last few days have said, "I want to learn these powerful closing techniques". After doing this for twenty years, I have worked my way through ten years of college as a sales man. I sold stereo equipment, underground gas link storage tanks that was not very prestigious. I sold underground gasoline storage tanks; used ones. I worked for a company that tore down gas stations, dug up ten ,20 thousand gallon gasoline storage tanks, tested them, reinforced them, tar coated, painted them and it was my job to sell them. You know what I figured out in my second year in college? I was making more money working part time as a used gasoline tank sales man than what my college professors were making. My goal up until that time had been to be a college professor. I lost a lot of interest in being a college professor. I became much more interested in selling. I don’t believe in closing hard. I believe in opening hard. I think if you open hard, if you open well, build a deep level of trust and repertoire my philosophy is you grab them my their throats and their hearts and minds will follow. Audience: (Laughter) Donald: If I could start my sales presentation by withholding someone's oxygen for a minute, I’d be in a pretty good place. So that's what we are going to talk about here today. I want to talk with you about the difference in mental maps and reality. What is more powerful, a mental map or reality? Audience: A mental map. Donald: Because you don’t know what reality is? Your reality is different than your reality, which is different than Jay's reality. Even on the sensory levels, there are many things we don’t see. You know that a hawk can see a brown mouse move in brown grass from one mile up in the air. Can you see that? Can you hear a dog whistle? On a sensory level, many things we don’t take in. The information you take in, you forget 90% of it within one hour. The little tiny bit that's left over is filtered through your prejudices and distortions. The little residue of what's left - you call reality. What will people do over differences in mental maps? What would people do over differences in reality? I say "Unga bnga bunga", you say "Unga bunga
bonga!” I'll kill you. I'll drop you, I’ll pop you. Here in Los Angeles last week, our new police chief declared a war on gangs. How many of you know that? We have had 40 gang killings in the last month. There's some neighbor hoods ten miles east of here. Don't go there at night. If you were wearing a red bandana when you were supposed to wear a blue bandana, "BOOM! I'll take you down, brother". Let me ask you a question. Is it dangerous in sales to question people's opinions and beliefs? It's called burning your book. Trying to show you how smart you are - it's called burning-your-book, in business. What are you going to do? How are you going to adjust your scripts to deal with all their different perceptions that's what we are going to deal with right now. Those of you who have the handout, turn to page three of the handout. The first thing I’d like you to write down is that 'Objections are not the truth'. I was shocked in the boot camp I did couple of days ago when I was helping people with their scripts, handling objections and concerns, I asked one guy, "what's the most difficult objection you get?" he said, "your price is too high!" I say, "What's your best response to that" He said, "Dr. Moine, there is no response. Our prices are too high". I realized this guy is 90% defeated. Folks, objections are not the truth. That's not the truth. Some people say Jay Abraham charging $20,000 per seminar is too expensive. He doesn't believe that. If you believe that true, you are three-quarters defeated. Your first sales job has to be your selling yourself. People were not born with objections to your products or your services. There's not a baby in a crib that says, "Your insurance is too expensive or the mortgage origination fee is too high," they were taught that. They were brainwashes to think that. You don’t have to change your products. You don’t have to change you service. If you change the way people see your products and services, you can literally make millions of dollars. That's the power of words. Napoleon said, "We rule men with words". I have updated that for the 21st century, "We rule men with words, we rule women with words, we rule children with words, and we rule ourselves with words". What words are you saying to yourself right now, do you even know? We speak to ourselves at the rate of 500 words a minute. Isn’t that incredible. Isn't that miraculous. Do you know what you are saying to yourself right now? When do I get a bathroom break? Boy that was a good lunch? How can I use this? You are talking to yourself whether you are aware of it or not. This guy's in what's called a telephone posture. If you studied NLP, he's looking down left. He's in the telephone posture. He's stimulating what's called the brocus quarter of the brain. Heavy internal dialogue. Remember Rodin statue, the thinker? This is true even in cultures where they don’t have telephones. When people were in this posture and looking down left, they are stimulating the auditory quarter of the brain. Powerful things going on.
What words are you saying to yourself? The words you are saying to your self are more important than anything I can say or anything Jay can say.
Jay Abraham Mastermind Marketing 29 Donald: They go for houses that have no equity. Then you pay them $5000 or $10,000. The reason you do it is you'll have to pay a real estate agent, $20,000 to get rid of it. These people get paid to get beautiful houses. They have developed a program on this. It really is an amazing program much better than Carl Sheets program. They needed my help though. They do a 90 minute seminar to sell a $1,000 book and tape program. They tape recorded their program. We spent a full day going though it - from morning till night perfecting it, improving it, pumping up the words. Folks, they are now averaging over $30,000 per 90 minute talk. These are people who used to work in General Motors. They think they have died and gone to heaven. I didn't change their program, I didn't change their prices, and I just changed the power of words they are using. So please, do yourself a favor, tape record your presentation. Transcribe it, look at it. You will find, I guarantee, using the techniques I have shared with you here, dozens of ways of improving it. One last idea is use sensory words. Those of you who have used NLP know about this. I have spoken to a lot of you here at the program. Some of you are very, very visual people. You use lots of visual words. That's not clear to me. Can you shed some more light on that? Hey that's a bright idea. That's hazy to me. Some of you are very auditory. You use lots of auditory words. Sounds good to me. Hey that rings a bell. Now we are in harmony. That struck a sour note with me. Some of you are very kinesthetic; use lot of kinesthetic words. I get a kick out of you, let's run with it, my back's up against the wall, don't try to strong arm me, I am not going to stick my neck out. Watch you want to do is make sure that you presentation have all these words in them so you can reach your full range of your clients and prospects. Many of you, I am sure are doing presentations that are merely visual, auditory or kinesthetic. When you insert all these words in, it's a very, very powerful technique. Sometimes just by that alone you can increase your sales by 30% or 40%. I have got so much to share with you but we have an extremely exciting line up for later today. I'll be happy to show you the book. Some of you brought my books. I have already autographed a bunch of them. I'll autograph a whole lot more. Jay and I look forward to working with you next year. Folks, my wish for you is, I hope next year is the best year of your life and that every year after that gets better and better. Thank you very much. Audience: (Applause)
Jay: Am I on? Do I have good friends? Audience: Yeah. Jay: A lot of good ideas. You have a colorful shirt, I like that shirt. I got a couple of questions to ask, Donald. Just so you know it's not conflicting. I have lots of business relationships with lots of different people depending on the situation. There's a big company and they've got plenty of money and we get a big enough piece for long enough and forever our profits enter. I have different partners for different situations. Don’t get boggled. I bring out different advantages in different relationships. I have a lot relationships with a lot of people. Donald, if you didn't say this, you should know this. I am telling you about a couple of things because this is an intimate form. I don’t do front of the room selling. Do I Donald? Donald: Very little Jay: When I do it over my lifetime I've been like the embarrassment. One time I spoke for Tony Robbins instead of paying me six figure fee. He said, "I'll promote your [unclear 00:03:50.10]" I said, "That's good". He changed his mind when I got on. He didn't want to do it, I didn't want to do it. Neither of us wanted to do it and we accidently sold a half a million dollars. So that was the one time I sold a lot. Then after, I had to do it myself a couple of times and sold like one person. When I tell you about something, I am not trying to sell you mister. Here's the deal. I did something to one group. Donald said, don't educate them as much. He said, "Just tell them these things". So he gave me this really well-honed script and I of course, being the attention deficit person that I am, forgot about three quarters of it and adhered to about half of the other quarter. It was interesting because instead of getting one or two people, I got 50 or 55. I like free form spontaneity but I got to say, when somebody can do 25 times more yield by structuring it and orchestrating it, you probably should pay attention, get it right and if you want to maybe personalize it. This guy is one of the only people in the country who has a PhD in, basically studying scripts. He was on the founding stages back with me [00:05:17.03] whether you like it or dislike it, it works. If you have it based on Jay Abraham's materials, methodology and your intent is honorable and noble, it works even better. Donald: Folks, Jay is being excessively modest. He is an outstanding scripter - one of the very best in the world. Every speaker who’s been up here has praised Jay. Have you noticed that? I am going to do something incredibly radical. I want to tell you a secret. Not every Jay Abraham idea is original. He's not the only person in the world who has spoken about referral selling, about seminar selling and even unique selling
propositions. You know what, he does it better than anyone else in the world. His words are better. I know people who do programs on unique selling propositions, they are shuffling, and they are struggling, trying to make $500 a speech. Jay has people pay him 25; $50,000 per speech. Same material, better words. When Jay speaks sometimes, it's like diamonds. Have you had that experience like diamonds coming out of his mouth? Write this down on your notes. One final thought I want to bonus you with. Mark Twain said this, "What's the difference between the right word and the wrong word. The difference between the right word and the wrong word is the difference between lightning and the lightning bug". What would you rather have? Lightning or a lightning bug. What would you rather be? Lightning or lightning bug. That's the difference one word can make. You multiply that over hundreds and thousands of words. When Jay Abraham flies into a city like Brisbane, Australia. It's like lightning has landed. The power is in the room. He's got ten thousand clients in Australia. He's made the good Australia billions of dollars. I go there too. When he gets on that plane and he leaves, it's like the lightning is leaving. When you learn scripting, ladies and gentlemen, you learn the power of words. Direct mail - I have got to get this off my chest before I explode. That's a script. Isn't that incredibly powerful, that's Jay Abraham. When you learn this, you will have a job for the rest of your life. If you want to pick up tomorrow and move to Alaska, there's always a job for great sales people, great entrepreneurs, people who can write and script. You want to move to Key West Florida. You can pick up tomorrow and go to Key West Florida. You know in the great depression, the unemployment rate in America was 24%. I have actually read the newspapers during the great depression. There were lots of jobs for sales people. There's always great jobs for sales people and marketers. That's the power of words. That's the power of Jay Abraham. Thank you all for inviting me here. Jay: Two more questions. Donald: Okay Jay: I have a lot of friends and they have different skill sets. This man is very, very unique because he's got two things that he represents. Immediate, instant leveraged improvement. Imagine this, two days ago when you left, your sales people were contacting X people on the phone, X people they were getting their presentation to impact. You go back and you understand this, and all of a sudden it's two or four or seven. Now, because I am giving you different tactical and strategic perspective, you have to shuffle it up and integrate it. I am purposely doing that too get you guys to see that there are a lot of possibilities and filaments you weave together in the fabric of your unique business strategy and selling
approach. I would take heed from this. Donald is a really cool guy. You are going to be available for the tactical panel we are going to do. Donald: Yes I will Jay: I can't wait to hear his answers. If you'll hang out, I'd like to call upon you. We are going to do about three hours of hot seat real life situations after Scott. If you are available I’d love to have you on. Donald: Have fun. Jay: The only time I get benefitted is when my clients of my own benefit. Those of you who have got a script, you ought to check him out for a day or half a day because he's really cool. First of all it’s counter intuitive that it's not comfortable. It's not natural. But then what happens? Donald: It becomes natural, it become wired into your brain. Jay: You have told what you have told them, what's the one thing you haven't really told them yet that they got to remember and they got to act on, other than what you have already said, when they go home. Donald: Great question. I would say - sales stories. What it means is the most powerful scripts of all our sales stories. People remember stories. They forget all the factual stuff you tell them; the specifications. They remember stories. Jay Abraham teaches with stories. All great communicators teach with stories. Jay: Bible is the most memorable story because of its parables. Donald: That's right. Jesus taught with stories. Jay: Good Donald: No matter what you thought of Regan's politics, he taught communicated with stories. His nick name was 'the great communicator'. I've got to share this real quick with you. I saw a video tape of Regan. He had a problem of rising unemployment during his presidency, just as Jimmy Carter did. Jimmy Carter was asked a question about it, "Mr. President, what are you going to do about the rising unemployment rate?" Jimmy Carter was a very brilliant guy. Do you know what he was actually trained in, similar to Carl Turner, he was a nuclear engineer, just like Carl Turner. He trained for nuclear submarines. To answer that question he said, "Well, I have got a 13 step program to get America out of the unemployment crisis and the first step is..." He went on and on. He was up to like the 11th step when people started saying, "No more, no more" we don’t' want to hear any of these steps. Regan in his presidency was asked
that same question because it was the time when employment blipped up. You know, the first word out of Regan's mouth, usually was, "Well..." He would look down on his right foot. That's what people do when they are getting into their kinesthetic and getting into their body. He wiggled his head a little bit. Had a little turkey waddle - very handsome guy - little Turkey waddle going on, he'd say, "Well, it reminds me I got a letter few days ago from a little girl in Pueblo Colorado and well, she told me that her father's been out of work for a few months. He was looking hard for work but he still hadn't been able to find a job. Well, I haven't slept very well the last few nights thinking about that little girl and her father who’s looking for work. And I am not going to sleep very well until every American who wants to work has a job!"- Next question. He didn't answer the first question. You felt satisfied. You felt, he's losing sleep over this. That's the power of a story. That's a great question, what’s the only thing I left out? Folks, stories are the most powerful scripts of all. Jay: I love stories. What do you think is the Harvard Business School's approach is? Case study. What's a case study? Anybody read my 'Getting Everything' book? It has 395 different examples, case studies, illustrations, real world truthful examples for you to be able to relate to. When I get people to go up to the mic and tell what they did, is that very useful for you? People love stories. They love analogies. Metaphor is the way the mind really grasps things. Donald: It is. We are homo-sapiens but I think we are homo-narrative. We think through stories. As children we were educated with stories. As adults we are influenced by stories. I listen to you guys out in the hallway. You know what you are doing? You are telling each other stories. Here's how I use Jay's technique. One guy I met at the back of the room says, "Here's my unique selling proposition" a guy from Toronto. I have analyzed Tony Robbins programs. Lot of his seminars are 80 to 85% stories and people love him, don’t they? That's true. Folks capture the best stories and write it down. Human memory is fallible. Are you like me? I forget things. If I hear a great new response - I am at Jay's House, I am sitting there in his mansion. He shares a great idea with me. I have got a pretty good memory but you know what, I'd write it down. Because I know two weeks from now I'll be faced with the same challenge. And if I don’t write it down I'll be saying, *Knock Knock* "What was that brilliant thing Jay said". Write it down. Capture it, you'll own it forever. It will make you wealthy. You words will make you rich. Thank you very much. Jay: Donald, thank you.
Jay: First of all, isn't it great that people will come from wherever they are. Donald was doing a seminar. He cut it short. Changed his schedule so he could be here for us. Be here vicariously for me to be able to gift him to you. You have got to realize this. Every one of these people could do a week do you understand that. I could do 86 hours. I did probably 400 hours in the stuff we gave you before we gave you on Saturday and today. I hope you understand I am trying to give you what I think you really need. Three things, we are going to bring on somebody that really deserves an extraordinary hand for what we have unintentionally done to him. He's got such a great message to give to you. Before I bring him I am going to tell you, what I am going to do afterwards so you guys are prepared. I need hands, who is absolutely leaving tonight. What time are you guys leaving? 11 tonight? 11's going to be pretty good. We are probably going to go late. Here's what we are going to do. I make value judgments as we go of what you need. You have got to trust me that we are doing what you need. What I am going to do next and for probably a number of hours until I get you guys inculcated. We will do hot seats, focus seats, Qs and As where we basically start making a real world analogy - case study type marketing makeover or strategy restructuring and then as we are doing it we are having out of body experiences where we are showing you with parenthetical comments, what techniques we are using, what application we are using so you guys can start seeing it while making copious notes. When I feel like we have done enough, that you are layered well enough to understand it, we'll then build a program. We might get there at eight, we might get there at 9, and we might get there at 10. Those of you who have to leave, we will get there and it will be on tape. I am going to go the duration. I called my wife and said that it was going to be a late nighter. That's the next thing. You might think about question, situations, and scenarios. We are going to pluck lots of things. We are going to do the internet. We are going to do it the way I said. Did you guys share insights like I had asked at lunch? Was it really revealing? That's cool. I have a message I am supposed to give. Did you all get insights from the insights? Do you remember what they were? Let them down. Truthful yes or better write it. Why don’t you take a moment while I am getting my thoughts? Write down what your big insights was from lunch. We'll probably do something with it. If it was profound enough to be insightful, it's probably relevant enough to be made a prisoner on paper. You got so much stuff for us that there's somebody here who in the shipping business, where are you? I did not do you justice because they handed it to me and told me about it twice and I said okay and walked away. You have made arrangements if they want to get their stuff shipped. We have somebody's who is going to be here, if
you guys want to ship your stuff home. If you not going to carry it all. You know you're going to walk away with more stuff than you got at home in the mail did you. Keep in mind, I didn't have to do that. I am not looking for someone to say, Thank you Jay. No, I just want you to know that you have no excuse for not - I spent yesterday and today at strategy and mindset. I haven't been as detailed because I have given you 5000 tactics and the stuff you have got before, the stuff you have in the workbook which we didn't have the need to cover. There's also the stuff I gave you today. Is that evident to you. Tactics are useless without a strategy to deploy. You get that? Audience: Yes Jay: Greatest tactic in the world. Strategy deployed is usually from a mindset that believes it is thoroughly and absolutely achievable. Do you get that? Audience: Yes Jay: We are getting to the final home stretch. There's something else that's relevant to you. Oh, a David Carrington, who had to leave last night who has been to seven or eight programs. Very fine gentlemen and he told me he's made a really good come back from cancer but he was fatigues and had to leave to go back to home. He came up and said, "I feel so bad, I wanted to make contribution to everybody. It was so obvious nobody thinks about it and I forgot, would you do that for me?" I said, yes and I forgot this morning. The contribution is, he said, "All of you can go to your local chambers, or your local civic organizations and offer to chair the fundraising or the membership drive activities and use my marketing activities as guinea pig beta test. You'll negotiate, navigate yourself through all kinds of great context. You'll be hero of the highest magnitude and it will be fun and very full filling". I thought it was a very neat idea. He wanted to give that to you and he wanted to make sure I gave it to you. Rick, what have I forgotten? Spar have had has brought over the new CDROMS for you as a great reference anchor from now on. I had Bob Cheswick get some more of his little educational CDs on digital marketing. I acknowledge people I like. I don’t make a dime from any of this, I just think they are cool guys. For some of you they are worth at least examining. What else Rick? Rick: One of the things, Jay's been making statements like, "I am going to get you that". The unclear 03:36.08] interview, things like that Jay: Oh, did everyone get the strategy and pre-eminence? Anybody read it? Who read it? It's pretty good isn't it? It's not good as the notes when I
clean them up but it's a good primer. You can read every day in the morning. It'll take ten minutes to remember who and what you are and where you are trying to go? What your hopeful desire for everybody else is? Rick: Yeah, we are going to publish a website - a private one that's only for you, don't give it to anyone else - to fulfill on all the things that Jay made commitments regarding. Jay: I don't pay attention to what we give you but we'll always get it for you. Rick: So, we are going to give you the website by end of tonight and then over the course of next three weeks, we are going to go through the tapes again. Find out all the commitments he made, because I wasn't keeping track of them. Jay: If I made some. We have a secretary. Who’s the person I nominated as secretary. Where are you? Oh, she's not here right now? You are fired! Rick: Yes, case studies, the emails, and the interview and there was one more. Jay: When you get those case studies my recommendation is to print them out and read them. Who’s on Garry North's list? This is sort of funny. It's a funny story. It didn't make me happy at the time. I basically spend three months acquiring these case studies; went to great effort. Then we spend enormous amounts of time. Rick spent 500 hours organizing and cleaning them up so you didn't have to read a lot of wasteful stuff. They were designed only to be shared by the submitters of case studies. Rick: There were better part of a 1000 case studies that came in and they were filtered down based upon applicability, results, based upon strategy which got called down to 700 which then called down to 502. Jay: It was a really neat deal done with total integrity. I said, “Guys I want to know how you use this specifically. I got a lot of uses. If you give me yours I'll give you up to a 1000 another ones and it’s for your own use only”. It went out and said, "For your eyes only, don’t share it with anybody, absolutely no body" Rick: Jay, how much did you sell the last set that you did? Jay: Last one's I sold for a thousand dollars a set. I wasn't sure what I was going to do with it. Whether use it as a premium, whether use as a training guide, whether I would just use it for a new book but I wasn't going to make it readily available for anyone other than somebody who
paid the just and fair price of submitting to me a case study. Now we have this wonderful man - Gary North. He is attention deficit. He's oblivious. He doesn't read anything. His heart's in the right place. He doesn’t get anything. We did it in installments. Rick was working for four weeks processing it full time. It's not his full time job. He was with us for this project. He gets the first 150 done, we download them for your eyes only and nobody else. Gets the second one out. Doing a seminar. AMA right? It's like $25,000 seminar. We come back feeling so good. I get to the office on a Saturday there's a letter saying, "What in the heck is he doing". Garry publishes the website for his whole email list... Rick: And endorses the case studies and directs them to the website. Jay: It comes out, he's so cute, he says, "I have an admission. I sat down to do my newsletter last night. I got these and I started reading them at about midnight. At about eight in the morning, I am still reading them and forgot to do my newsletter and need something to submit". You couldn't get mad at him, but that's how you guys got introduced to it really, isn't it? Then I said, "Don’t give it to anybody else, stop". Then he sends an email and says, "Last Chance!" Audience: (Laughter) Jay: Anybody who knows me, deep down knows that if somebody did that intentionally to me, they would be very unhappy campers. But he is like an attentional deficit, in the ozone, doesn't have a clue, and is that right? Rick: Absolutely. Jay: He was so cute. Rick: He was so genuine. It was a touching letter. Jay: The CD or the link they give you, there are 502 case studies submitted documents by actual people. This gentlemen’s read it. I am not selling it, I have already given it to you. It's got probably, for your benefit, millions of dollars of direct application. Wouldn't you say? You get the mindset, the action, the application, you get how they did it, you get how it works, you get what the lesson learned is - 502 of them. What I am hoping you guys will do is not say "Man I got the greatest collection of paper weights in the whole country". That would be very disappointing. That would be so cruel to yourself. Rick: Just from an overall perspective, just so you realize how actionable it is. The most popular strategy that people took from Jay and actually implemented and denominated the results was risk reversal.
Jay: It worked for almost every company that submitted them in some form. Direct or indirect. Remember I was using the Real Estate example yesterday where the world isn't black and white. You can't always have a 100% risk reversal but if everyone else doesn't do anything and you do some of the things, or most of the things or at least areas you can control and can legally, ethically, financially protect, reverse, take the risk for, you win and everybody else loses. As Max said, "Win or Die" You are going to have a lot of fun when we come back because you are going to do case studies Q and A's, lightening round. So come prepared to create your action plan. Say, yes, it is a great idea. Audience: Yes it is a great idea. Jay: There's this person named Scott Holman was introduced to me a long time ago and he used my technique along with others that he learned to engineer a company that he took from nothing to a $100 million. Why am I using two mics? Somebody in the bathroom said, there's no such thing as attention deficit and I said, "Okay". Scott sells it and gets into other fields of endeavors. Takes his understanding of mine and other people's stuff and formulates an original synthesis - creates a way to deal with one concept at a time. It's very powerful because it's slow, methodical, adheres to the kind of philosophy Jet Holmes teaches. Then he starts analyzing stuff that I and other people do and starts engineering all kinds of really killer ways to find massive win falls. You notice, almost all the people up here who are really inspiring, didn't just fall of a truck. They have spent hours, years, lifetimes studying and analyzing. I was going to ask Donald another question. This is the key to everything. People ask me what's the real secret to everything. I tell them, the secret is there is no secret. You do it and you got to keep doing it every day. That's actually quite liberating because there's no magic, there's no silver bullet. There are things that will produce, extraordinary, profound and amazing improvement on a sustaining compound basis. If you do them all and do them systematically and sustain them, layer them, add to them, monitor and measure them, adjust them, replace them and keep doing that the rest of your life. That's the secret. That is the secret. How many hours of video and audio have you studied and analyzed in your life. Would you imagine? Or did you just fall of something and one day be able to understand all this? Donald: Jay and I are neighbors and I didn't know any of this but just on the drive here this morning I made it all up. I wrote the first PhD dissertation in America on Sales superstars. Jay: How much time to it take to do that dissertation?
Donald: I spent three years studying people making a half million dollars a year. Jay: Three times 12 months times thirty days times twelve hours, is that right? Donald: Gee! I was in college; I have had to have time to party? Six hours a day, but I finished that in 1981. Jay: Then you stopped studying, was that it? Donald: That's when I started doing it really seriously folks. I was teaching part time at the University of Oregon and they said Donald if you leave academia, you'll never be able to come back. I was making $14,000 a year as a junior professor. My first consulting assignment was more than that so I really didn't regret leaving the world of academia. I love words. You know how come people collect gold coins or butterflies or cars, I collect words. I collect powerful scripts. There's nothing more exciting to me than hearing a powerful new way of explaining a benefit. Sometimes one sentence can change someone's life. Do you believe that? Say, yes. Audience: Yes Donald: I was going to give an example that over the boot camp I did this last weekend, this person I said, "I have already got an example". I said, "Who is that?" We have been talking about sports and sports figures and he said Pete Rose. He was a great baseball player. He's been trying to get into the hall of fame but because he was busted for gambling they won’t let him in the Hall of Fame. He said, "I bet you a long time ago someone said one sentence to Pete Rose that changed his life". I said, "What was the sentence?" The guy said, "Want to bet?" Jay: That's good. How many hours have you spent, watching videos, studying transcriptions, listening to audio tapes to try to perfect and refine you skills. Donald: I have spent about half my time doing that. That's about 1000 hours a year for the last 20 years. I want to make it very practical for you guys. I would say to develop a full-fledged script book. From beginning to end - initial presentation through all your closes. You probably, in most cases you have to spend from 120 to 200 hours. Jay: However, that's what you think because you think linear that I am talking about a script book. I am talking about just becoming proficient at whatever you do.
Donald: Just becoming proficient. Write this down on your notes. A script does not have to be long to be good. One of the things in section nine of book two. I know it's upstairs. You will find an actual outline of a script that we did for [00:04:20.03] Michigan. A mere twelve pages helped them raise $14 million went they went public. Jay: How do you become an expert? Do you become an expert by falling off the truck? Donald: No. Jay: You become an expert by watching videos for a year and saying I got it. Donald: No. Jay: You become an expert by doing it up until the internet comes and not watching it anymore [unclear 04:52.29] Donald: No. Jay: How do you become an expert on a sustaining basic? Donald: By expert modeling by spending time with sales super stars. When you get a letter from Jay Abraham you respond to it, you sign up for the program but you also analyze the letter. How did he get me to do what I am doing? By continuous learning, let me give you an example, very practical. You want to go out to dinner tomorrow night. Your spouse wants to go to one restaurant you want to the other restaurant. Who wins? Whoever has the best words wins. If she talked you into a different restaurant, analyze the words she used. Jay: Don’t talk about words for a minute. Take yourself out of being a wordsmith. You are an expert. [00:05:46.00] Okay thank you, good bye Audience: (Applause) Donald: That was easy. Jay: Do we have fun? Audience: Yes Jay: I am not really wasting your time, do you understand that? Going on here's the neat thing. We have got this gentleman whose mastered different incredible distinctions. How to engineer massive win falls using my stuff in your business instantly as well as figuring out the hierarchy of opportunities meaning this dawning spectrum of stuff. This incredible
array of incredibly stimulating titillating ideas, this palate of possibilities. But where in the world do you begin and how you do it and who’s on first. What's the first step? A little intimidating? He's got the answers. We had him originally scheduled to do two session and we had to adjust it. [00:07:28.12] He came to help me. We had to compress him from this to that. Okay sure, I am in the moment; I am having a good time. I am learning. I am experiencing it, I am growing my practice too but Scott Holman has an incredible message. Scott Holman is a very knowledgeable guy. Scott Holman has broken through the one million dollar mark, the five million dollar mark, the twenty million dollar mark, the twenty five million dollar mark which is when most companies start experiencing turbulence but fifty million dollar mark which is when most of them crash and burn. The sixty million dollar mark, the 75 million dollar mark up to a 100 twice. Now, he's trying to take some of the things he's learned and reduce it down to entrepreneurs because they are fun and enjoyable and he really has a gift to give. He's going to demonstrate it and consolidate it because he is a real - stand up for a minute. And orthodox people from Brooklyn. No you are not going to do macho man. Where are the other two gentlemen? Stand up for a minute. This is a set up. Anybody in this room Jewish. Oh, I happen to find three. You know what a mensch is? What's a mensch? A human being who’s got a good heart, good soul, and rolls with the punches has your interest at heart, more than his. Scot Holman's going to teach you for an hour about something great and I wish we had more forums. Scott. Audience: (Applause) Scott: All right! How's everybody doing? Audience: (Screams) Scott: I have got a question for you. How many of you want to leave here with a few simple key word. Fully executable ways to absolutely put $25,000 to $16 million in profit in your pocket? Audience: Yeah Scott: Next slide. It may sound like hype because those are big numbers. Jay, Chad and I did PEQ 3 where we got to spend five days with 50 companies or so and I did a session similar to what I am going to do here, although as you heard it will take 2.5 hours which I can compress it into one - it's not a problem. 50% of the participants said that they felt they have found at least a million dollars from what I am going to take you through right now. I need your energy high. Everybody stand up, because you are going to get blown away. Because I have an hour, I have to move
extremely fast. I already speak fast now. I really need your energy level here. I need everybody blazing with a pencil. As I walk you through this I apologize but I want to ground you in the material. I want to get you doing some workshops. You are actually going to produce something here. It's all about implementation. One idea is worth a ton more than a thousand ideas that never get implemented. It's all about implementation. It's all that matters. You know when Jay talked about building the 59th fastest growing company in America, we focused on a few things to constantly looking to implement them. We are in era right now where everybody feels that they have new, they have to have better. How many of you have learned tons of ideas in the last ten years and you still don’t implement them? 98% of clients that come and work with us come to us not because we got great ideas. It’s all about saying, "You know what, I have tried, I cannot implement, I cannot pull it off". Usually what I find when I get them on the call with me, they are working on 16 different things. Originally my first session would spend 90 minutes we are going to do here. Today we will talk about 'Hierarchy of opportunity' to help you sort out everything you have learned here. Paul and John did a great job with that so I am going to skip over that. Next Slide. Survey says, companies are leaving stacks of money on the table by learning but not implementing simple easy things. When Jay and I did a coaching program together called four star coaching. We surveyed all of the participants. These were the numbers that came back. Point of purchase optimization - upsell cross-sell - basic concept - MacDonald’s right? 91% of the business didn't use it. They knew about it, thought it was a great idea. Referrals, 89% even though Jay showed them 93 ways. Strategic alliances - 95% and it's probably a 100% if it didn't say how many did it systematically. How many were consistently reselling customers, following up, re-contacting the customers, these are basic fundamentals. 88% were not doing them. Best practices - systematizing what they do well. Optimizing what you do what you do within your organization - 95%. Formal customer commitment program, like Michael talked about, building strong bonds that you keep life time customers, which is crucial if you want to get referrals and want them to buy more stuff from you - 96%. Next slide. The bottom line is that, we are not using these things. What I thought I would do is read this to you and hopefully I won’t mess it too much. I call it the window to wash your simple ways to riches. It’s important because I want you to see how you can take fundamentals and layer them on top of the other. In a moment I am going to show you what I call the power of incremental improvement and why if you are in this room right now you are looking for giant breakthroughs - God bless you. I hope you find them.
Many of you will. But many of you if you look only for major breakthroughs are never going to get anywhere. One of the things when I grew up, my dad always talked to me about the power of money and the power of compounding and interest. As I made my fortune building my businesses, I was too busy building my businesses to even worry about this saving stuff and dollar that turns into a 50 or a 100 down the road. I look back now I go, "Wow! 20 years have gone by". Well, five, ten, 15, 20 years of your business are going to go by as well. And every year you are not optimizing from the simple basic strategies which you haven't placed much less the complex ones, you are leaving money on the table. Next slide. One day my wife arranged to have our windows cleaned, which she does twice a year. The service charged us $400. After they completed the job and left, we opened our bedroom window and noticed the sills and the outside of the window frames were all full of dirt. I asked my wife, "What if the window cleaning service offered to clean those for you, while they were up on the ladder for a $100, would you do it?" She said, "Yeah, absolutely, I would do it". Looks like crap. I then asked, "What if they offered to clean your screens and gutters for say another $50 or $100 dollars each?" she said, "Probably". I then said to her, this is by the way a true real life story, "How many times one of those window washing services has asked you these questions" She said, "Never that I can remember". Anybody here guilty of not asking basic questions to clients? If she just had one of these extra services, just one, it would have increased their revenue, 25%. Does that make sense? You start off with $400, you just add a $100. Does it make sense to everybody? Next slide please. We had seven different window washing companies in three and a half years. Why? Because, and this is no joke - I still can't believe this is true not one has ever contacted us to see if we wanted to have them done again. Not one. I know you probably have done business with somebody like this but you probably never been guilty of that with your clients, I am sure.
Jay Abraham Mastermind Marketing 30 Scott: And this is no joke to (unclear 00:02) so I still can't believe it's true. Not one has ever contacted us to see if we wanted them done again. Not one. Not one. Now I know you probably all have done business with somebody like this, but you probably never have been guilty of that with your clients, I'm sure. So I continued with the question with my wife “If the owner came in and inspected the windows after the job was done to ensure your complete satisfaction, would you use them again?” She said, “Well of course, because it's a hassle to find a new service.” And by the way, never one time, did they send their workers in
they did it and they left and (unclear 00:35) she was always unhappy. Now that doubles the window washing cleaning services revenue. They just did another job, they wouldn't have normally done. So even if only half those clients decided to have that person back for whatever reason, it's a 50% increase in revenue. Does that make sense to everybody? According to (unclear 00:53) here. Now that's a 25% revenue increase by providing more services and another 50% simply by following up consistently with the customers when they are ready to have their windows cleaned. Alright, so we're at 75% so far, have you noticed Dave would be proud. Everybody see the movie ‘Dave’ you know, about the President? You know, he sits in there and he's going to take control now and he gets in front of-the board and he's going to cut the budget because, guy says, you've got to cut the budget 130 million, he's well, now, that's (unclear 01:22) we're doing pretty good here. So that's what we're doing here. Next slide. Now I said to my wife, “Well what if the second time they serviced you, he told you about a special program where they will come out every two months for 10 minute tune up. You know, you get the kids, they put their fingers on there, there's spider webs in the key windows.” I said, “What if they were to do that and whenever they are in the neighborhood,” which I'm going to show you in a minute, “they charged you $25 for each visit. Would you do it?” She said “Yes.” Now I understand everybody won't say yes to these questions, but, as we are going to see in a minute, they don't cost anything, so that's another $100. So they come up four times between their normal six month cleanings or said another way, 25% increase in revenue. So as David says, we're doing pretty good here. Alright, so that's another $100 initial $400 sales so now we're in a 100% cumulative increase in sales, alright. Next slide. After confirming her total satisfaction, what if he'd say to my wife, “If you will simply provide me with a testimonial about your satisfaction level then I can share with my neighbors” and he just gets one, one out of my 48 neighbors, “What I'll do is do this touch up service to you free for a year.” He's going to be in the neighborhood anyway, didn't cost him much money. Now, so if just one of the 48 neighbors becomes a client, that doubles their business again. Does that make sense? Were you following the math? That's a 200% increase and I wrote here, since this new customer will also be a continuous customer and choose some of the other additional services as well, they're also going to have that same magnitude. And this is 3 simple techniques. So if any of you are, anybody in this room guilty of not doing those three in a consistent systematic basis? We find more money for our clients by showing them how to do what they either have done, they know works, have worked for them in the past, but they haven't systematized and you remember that word, and even my clients that work with me systematize, systematize, systematize. If you do it nine out of ten times, you're leaving out 10% of the works. Does that make sense? Next slide. Now let me ask you a question. How difficult were any of these steps? How difficult? Audience: Not at all. Scott: Okay, piece of cake. How much did they cost to implement?
Audience: Nothing Scott: Not a dime! Not a dime! Not a dime. Absolutely zero, now I understand there's a very simplistic example, but it's real interesting when you start with a core basic, how it applies to every different business. I work with 126 different industries. This same concept applies to the swimming pool manufacturer, that applies to the consultant, that applies to the doctor, that applies to the lawyer, they're all the same concepts. One of the great things about what Jay teaches is its universal. It may take a little, what was the (unclear 04:15) talking, you know wrestle some of the stuff to the ground to see how it applies to you, but it applies to every business. You know Jay talked about you know, how much work it took to perfect. When I started doing this, I created this program called the power of one, about three or four years ago and then I got wrapped up building this other company and when I came back and told Jay, I said, “What I think I'll do is I'll do a coaching program because I want to really learn what the elements and the issues are. For the last 18 months, I've dedicated about half my time to working one on one with clients to find out what works and what doesn't work and that's why I can stand up here and say this stuff is universal. It's universal to every business. Everything won't apply the same way. Maybe one person will try one of the concepts and it's a smaller impact, but the bottom line is to impact never the less. Alright, next slide please. Okay, the power of incremental improvement. This is probably one of the most powerful things that we teach and it is critical for you to understand, absolutely critical and I'm going to actually put you, I'm going to give you a workshop, because I want you to feel this. I want you to, what's the...you've got to feel it, see it and I want you to hear it. Alright, next slide. Alright, let’s take a business that has a million dollar revenue baseline and they're making $100,000 profit. Okay. Now, what we want to look for is what is cash flow impact will be for one year and then also over five years. How many in the room plan on being in business one year and going out of business? Audience: Go out of business? Scott: Yeah, but that's how you look at it. How many...one year, just want to do it for one year? How many of you plan on being in business for five years, or more, five or more? How many would plan one day to have an exit strategy when you want to sell your business? Okay, it's all around. There's something called EBITDA. An EBITDA is earnings before depreciation interests the taxes and amortization and that's how most businesses are purchased. What is your profit, what's your EBITDA. So when you're thinking about your annual profit, don't just think about what you're taking home, because you're leaving a lot on the table. Next. Let's just say you make a 2% increase. In other words would you take up sell cross sell and you implement it. You take what you just learned from Dawn about sales and you get 2% increase. Not a big increase, anybody think they can't get 2% increase if they work really hard on what Dawn just taught you? Alright. So 2% increase, what's that produce, well if you did that every month, a concept once a month, just once a month, something once a month to go back
and improve things just to make a 2% impact on that profit. Now I don't ever deal, I don't care about revenue. I only care about profit. 2% increase is $24,000 a year, its $120,000 over five years. Does that make sense? 3%, is that my next one? You can actually push the button twice here. Just go the right direction, other way. 3% is $180,000 and 5% is $300,000. Over time, you are making $60,000 a year, if you do it systematically, you put in the systems I'm going to tell you about, it's year after year after year. Products might change, customers might change, concepts, system doesn't change. Alright, now, but what happens on the other side? You now want to sell your business on top of that $300,000 you decided to sell your business at five times the multiple of your profits. So 2% adds $120, 5% adds $300,000. So if you can find a way to increase your business, don't think about it monthly. Think about implementing the strategies. 12 strategies you think that are most applicable to you and all you're looking for is those strategies ever, not right now, ever to produce 5% increase in your profits, then bottom line impact is $600,000. Alright. What I want you to do right now is just, this is going to be real quick two minute exercise. I'll leave this up. I want everybody to use your own numbers. I just gave you a million dollar numbers, some of you are 20 million, some of you are start-ups. What I want you to do is just fill out this worksheet and I don't know, (unclear 00:56) it might be in the workbook, but what's your current profit per month? Whatever it is, 2,000; 5,000; 50,000; a million, just write it down. Calculate a 2% not 5, let's just go 2% per month, so it's 2%. So remember if it's 100,000 that was an additional $2000. And then I want you to actually annualize it, just multiply it by 12, let's see what this little increase does to your business, its 24% impact. How many of you would love to have a 24% bottom line impact just from doing what you're doing better. Forget all the other stuff you can implement. Alright, nobody? One? You guys probably think that I should have said 50 or 100 right? See Jay Jay got you guys all pumped up, alright. Then calculate the impact, multiply that by five. Now if you don't get this in your gut, you're going to go back and you're not going to do it. Just like I didn't get it in my gut that I should be putting aside 10% or 15% of my income every year so that I would continue to build that wealth over the years, instead I've got to look back and go wow! That's pretty painful, because there's another way to look at this. The $600,000 that you're going to make is what you've lost because you haven't done it the last year. It's what you've lost because you haven't applied what you've learnt. Alright, let's kind of keep things light here. Alright. Then I want you to do is take and calculate the increased market cap. So take whatever your annual number was, 100,000 in the other example, multiply it by five and add those two together. (I should have had that little, got a little, you know ding ding ding ding, we play in our conference calls). Alright, I just want everybody, people to yell out. Yell out your number. Two, anybody have a number out there? Still doing your math there? Everybody is scared, “Oh, there's a person next to me!” I won't make you do it because somebody, there's somebody sitting next to you but I want you to really internalize it because it's important, because the key question is what's the extra profit you're leaving on the table.
Next slide. Alright, let's talk about how you make 25 to a million dollars or more by actually applying this stuff. Okay, same customers, same employees, same resources. Next. Oh, I wanted to pause on with what I'm going through right now, where I got a lot of my notoriety was, there was a radio show in Pittsburgh that interviewed me and they challenged me on their radio. They said “So how much money can you make a business?” I can make any business, $25,000 in 40 minutes. And he said “Well, that's a pretty bold claim.” And I said “Well, it's true.” As long as there is business of three, four hundred thousand dollars or more, it's easy to do. So he challenged me. So we took, I think 12, there's 12 or 15 that set appointments. I talked to 12 or 15 and then he went back and picked them and re-interviewed them. The five companies, it's on tape and it's on our website, the 5 companies, the number was $5.8 million. $5.8 million. Alright, yesterday I talked about the opportunity to impact profits. Since I went through it when I was up in the panel here, there are 3 areas. So don't just look and say “Why (unclear 04:36) already do that? We already have enough selfprogram. We already do that, (unclear 04:40) referral system.” I want you to think about how you can implement and new system within your business, if you don't already have, you don't have a formalized system, or add another product or service to a successful system. So if you're up selling at the point of purchase, have you gone back and seen if you can add something else, if you've got a referral system, can you add another one? So think about, if there's something you're doing that's successful, if can add another one and the last one is improving the system and this is by evaluating your success formula and I'll talk about this in the end, but if you've got your formula down pack, even in the sales that you've got, okay, here's how we drive in leads and here's how the sales process works, let we telemarket; then we go to proposal, appointment or proposal. One of those elements, if you can just improve it, just a slight bit can double or triple the results. So you want to go back, if once you have a document, you can actually go back and play with it. So I don't care whether you have a system in place, don't have one in place, have one partially in place, it applies to you. Alright, next slide. Alright, what we're going to focus on here because I'm very short on time is maximizing the transactional value of every customer and we teach like 28 ways, but we're just going to cover as much as time allows here. Next slide. McDonald's, everybody knows the story. Simple story, right? “Would you like fries or a coke with that?” 30% of the population says ‘yes’ even though what, they didn't order it! They didn't order it, they didn't go buy it. They already decided that wasn't what they wanted but they ordered it anyway. This concept is so simple it gets overlooked but it is applicable to virtually every business. Up selling is when you're adding an additional item, you're taking them from a small coke to a large coke, cross sell to get everybody on the same ground that I am is when they ask if you want fries, when you ordered a burger, because it's related, but it's not the same item and a down sell is what Jay just
did to everybody who couldn't come to this live event. Alright, everybody couldn't come to live event could buy the $2000 or $2500 home study. If he didn't offer that, those 500 sets or 600 or how many (unclear 06:45) up to would have never happened. So $2000, $500, sounds like a million dollars to me, if they didn't apply that concept. So if you're selling something that's expensive and then you don't close the person, but you can break it apart or make it a smaller transaction, you have a huge opportunity, you've already invested in getting the customer there, driving the lead and etc. Alright, next slide. Alright, case study number one, $15 million online rug dealer. New profit system added 1.8 million a year and if we do our power of incremental improvement, it's going to use (unclear 00:14), its $18 million market cap. By the way, for this particular company, it's probably two or three time that because they're growing like a rocket, very sassy and they're going to have a much larger evaluation. What they did is added two items at the point of purchase, that's it. They sell rugs on the internet. Somebody comes, buys a rug, and they said, well let's add padding and the other item is scotch guard. I won't go into the details of the story because it's actually kind of funny story... Audience: What's the other item? Scott: The other item was scotch guard. They went scotch guarding and at PEQ, we went through, they were right there, I asked everybody in the group if they bought a $2000 rug, how many paid $50 to scotch guard it? So basically you've got two items on. It sounds simple again and they're very successful company. They go from 7 to about $20 million this year. Very successful, they figured it out, they've got a killer model, but they were leaving a lot of money on the table. Alright, okay, go ahead, next slide. And what I want to do is skip a lot of quick stories here because I want you all to relate, so I use lots of different examples whenever I teach. $3 million telemarketing office supply come in and they compete with office depot etc. They do it all from telemarketing, new profit stream, is 18% increase in profits. Now this is important because they systematized a successful system. What do I mean by that? This guy was awesome at what he does. They were awesome, they were a selling machine. They were competing against the big boys, they're growing like crazy and as a matter of fact his company was just featured a few sessions ago in Inc. Magazine. Doing a great job, doing a great job at up selling, but I made him go back and take it and dissect it and say, what can we do differently? How can we modify a script, how can we modify the timing, how can we modify the offer? 18% increase in his bottom line profits, and it's a true story, while I was on the phone with him, the month I'd started him, on the phone with him and I hear this guy coming in the background yelling screaming, and I go “What's that?” And he goes, “It's one of my sales people. He says he's made $300 extra today.” So it's powerful, but you have to systematize it. If he didn't systematize it, he wouldn't ever be able to go back and optimize it. Next slide, $750,000 chiropractor, net profit stream $275,000. How did I get there? Alright, I want to
go back to how I got there. We implemented a system where he had never done any cross sell, never offered his patients anything, even though he'd always done it. Why? He was uncomfortable. He was fearful. He didn't know how to do it. All he had to do was make him comfortable on how to do that. I mean he started with two items and one was orthopedic pillow and back pillow and the other one was something called Bio-freeze and we implemented the new system and there were two items about $575 to $600 a week. Week in, week out, 550, 650. Over a year, its $27,000; over 10 practice its $275,000. Now admittedly in year two, year three or year four Bio-freeze might not be the cool thing. So what, now it's something else. The bottom line is they trust in him. They trust in him, okay and the important thing here from a systematization stand point, I might talk about this later, but I'm going to talk about it right now is this is critical for you all to understand, is if I went to him and said, implement the sub sell cross sell system, that's it. Here it is. I want you to ask at the point of service of the patient, and I want you to put the Biofreeze up on the counter when come up, I want your staff to say the following four, five words. If I went back a month or two later, would he have been, I want to give show hands of how many people think he'd still be producing 575 a week? See I bet you, I could go to every one of you, if I sat down individually, and I can find something that worked like this before and you just don't do it anymore because you have no measurement system in place. No monitoring system in place, no systematization in place whatsoever and you’re absolutely pouring money down the drain. Okay, now in this particular chiropractor's case, we had to create a system and it was pretty funny story because I get on it after six weeks, he's been kind of hands on, he says “I can't do this, I see a hundred patients a day” and I said “We're going to formalize your system” and he goes, “Okay.” The problem is the charts are in the back and they have to come up here and don't know how to document them, I go “You have any yellow stickies?” This is a true story. I had him started with yellow stickies. After two weeks, we went to a form, after three weeks, we went to comprehensive form at the front desk and after about six weeks, we computerized it. Otherwise, he never would have done it and that's very important for all of you. It's the little things that get in the way of you implementing and producing results. Next slide please, next one increasing frequency of primary purchase items by conditioning your customers to purchase more often. Next slide, case number one a dentist, net profit stream $90,000 a year, $900,000 using the application I gave you and it was reducing the average patient's visits from 8 months to 7 months. Right, in other words, what he did (unclear 05:12) parenthesis, he improved. He was already doing it. Dentists are the only people I ever come across who follow up consistently on their patients. Why? Is it because of their brilliant marketing strategy? It’s called survival strategy. Right, who wants to go to the dentist? In this case the dentist says, “Well I'm doing pretty good, we send out a letter and then (unclear 05:34) calls. I said, “What do you do after that?” “Oh, nothing” So when we went back and determined how many of their patients' didn't actually come in, it was, I forget, 10 or 12 or 13 or 14 % and I said, we talked about lifetime value of a dental patient which is massive with
their families, if they're like mine. And what we did was, we went back and said, okay, what if you went back and created a continual follow up system? Let's say, add some pain, let's educate them about gingivitis. Let's educate them about the fact that once it gets between 6 and 12 months, the probability that's going to A: impact your health, and B: impact your long-term dental goes up you know 5 fold, I don't remember the statistics were. Does that make sense? Simple stuff. Alright, next slide. Okay, now, I always get this, up sell doesn't apply, I'm a swimming pool. I only sell single items you know, and they're big items, okay. So we got a swimming pool company, one of my favorite ones, because somebody goes, well how often does somebody need a swimming pool? $10 million Swimming Pool Company and they asked me, they were not my client. This is actually a pool company in our neighborhood. It's the greatest concept. Net profit stream $600,000 or $6 million in value, 40 pools at $30,000 that's $15,000 profit. Let me tell you what they did. They-open pools and closed pools, you guys don't know what that means, they got to open them up, they got to close them up, right? And people can go anywhere; once they install my pool I can go anywhere. I may start out with who put in my pool but a year or two later, I may get pissed off and leave. So what they did is they said-well the standard warranty in a pool is 10 or15 or 20 years, I think it is, and they said, “We're going to make our warranty 30 years. 30 year warranty. There's only one (unclear 07:19) we got. You have to use it as to open and close your pool.” Okay its $1500 a year times 30 years is $45,000. So there's always ways to condition customers to purchase more often. You just have to get creative. Next slide, a mortgage broker. Mortgage broker came to me and said, it was $275,000 broker, $75,000 profit a year is what this meant, his business. $750,000 in value creation, 500 clients there was and basically let me tell you the story here real quick is that they were not diligently actually not following up at all with past clients. Well I did a refinance and you know, I'm onto the next one, constantly scrambling for business. But the bottom line is people refinance every 5 years so there's a hundred predictable not maybe not you know, statistically out of 500 there's a 100 people that are going to refinance their home and if we added in people that are going to move and purchase a home, it goes up even higher. So if you implement a strategic systematic process, follow-up system for building value and building relationships, your probability that they're going to come back to you is huge. I just went to go get a loan, I wouldn't have a clue who to call for the person that did mine before. How many people who ever finance-how many people you know, have a constant, they get a value added mailing and they get tips about their home and they get calls once in a while and stay in touch with them with whoever did their mortgage? 20% of the room, maybe. Alright, next slide. Alright, what I want you to do as I'm going through this process, it is important for you to write with your pen because we're going to get
into an exercise in a few minutes. Think about how up sell, cross sell applies to you in one of the three categories. Either you're going to implement a new system, you're going to improve a system, or you're going to add an element to what you're already doing. I want you to think about that. I want you to write it down. You better-need to be making a list or you're going to feel lost. And I also want you to think about how you can increase frequency, if you've got a product and you're not staying in constant contact with your customers, you haven't mailed to them lately, you need to think about that. Give you another example, as a chiropractor, alright. Chiropractor, the person comes in, they stay for 3, 4, 5, 6, 7 ,8 weeks, now they're feeling better. So I asked my chiropractor, I said “Do you do follow up mailing?” He said, “Well no, we do Christmas stuff and what not.” And I said, “What is the probability that somebody who came in with lower back pain, that stayed, was feeling better, what's the probability in 3 to 6 months they're going to have pain again?” He said, “100%” I said, “You have any ideas?” How about a letter that goes out after 3 months that says, “Jee frequently our patients end up having the symptoms, you know, we really care about you” and invite them back into the office? Or do you think people stopped going to the chiropractor because the calendar year, you know, they've run out of insurance, but the new calendar year, the insurance starts all over. Alright, the next concept is related to up sell, cross sell. Up sell, cross sell is at the point of purchase, at the point of purchase, they're in a peak purchase state. That's why you'll go to the car dealership and they sell you all the gadgets and it's in the extras. They try to do that a month or two down the road, you say “Forget it; I'm not going to spend another $1,000.” You are in a peak purchase state, alright and you know when I went to a Tony Robbins, I went to the Tony Robbins seminar, free seminar and he did his hype and everybody at the crescendo, he made it sound like there's only so; I mean there must have 400 people in the back of the room. Expanding purchase patterns is similar except, what is this mean, its okay, well, now I've done my primary purchase, I'm moving on. Now I want to be constantly going back to my customers and offering them not only the primary item that they purchased, but something else that I offer. If you only offer one product that doesn't apply, but if you offer multiple products, what typically happens is I'll talk to the client and I'll say, you know what, I ask them, we told; we gave all the laundry list. We told them all the financial services we do. We do mutual funds and we do insurance and we can refinance their home. Like my broker, (unclear 02:52) who never asked me once, so I refinanced my home with somebody else. I bought insurance from somebody else, never stayed in contact. Okay, again, ideas, write them down. Next slide, alright $2.6 million dry cleaner, I don't remember 2 million, I couldn't remember the exact number but you get the gist. New profit stream $210,000 a year, $2.8 million. This is one of the radio people that called in and called in and said there's; I was called to let you know right, now there's no way in think you can help me. I'm in the dry cleaning association of America. I'm a head (unclear 03:26) and I know it all. I said, alright, that's good. So I said, “Tell me about what you do?” He goes on, he's explaining to me very passionately about his referral system. We're on referrals,
he says, “I've got the greatest referral system, because I do these high end drapes in high end neighborhood,” He's got about 1000 clients. We take their drapes; I go back and hang them up. It is a $1,000, $1,500 and he tells me about the referral system. That's pretty cool. I said, “Let me ask you a question? How many of them are dry cleaning customers?” Now this guy has got multiple (unclear 03:51) pick up and delivers. He goes, “You know I was looking at it the other day, 5%.” I said, “Well let me tell you what I think you've got to do. I think you've got to ask them.” I said “If one out of ten say yes, it would put $500,000 in your pocket using my power of incremental improvement.” Okay, so lucky, every once when you actually interview somebody, something like this happens, they get on the interview and they are telling their story and I've gotten a call from him a couple of days before and as we were on the interview and I said, “Tell them about the story” and the interviewer said, “You know, $500,000” and I said, “No no, stop stop, you've got to wait. I said it's cooler than that, because he had already started the process.” So I said, “Let me ask you a question. Tell him what you just told me. How many out of ten are saying yes?” “6!” That's $3 million a year, its $3 million dollars a year. I give you a lot of examples because what I find is I can tell the story or Jay can come up here or any other speakers and tell you a story “Ah, that doesn't relate to me!”. I'm here to tell you this relates to every single one of you in this room. I said 126 different industries, multiple countries in the world and you know, it doesn't work equally for everybody. When I first started doing my coaching I made a fatal error. I got a program called Power One. It was designed to do once a month concept for 12 months. So I took the whole group and said, we're going to go through this module, we're going to go through this module, or what's the problem, this one's going to....didn't really apply and the other one's going, this is really cool. But they've got to wait four months before they get to the one that applies to them but once you teach them, it's the small little changes that take place; the 2% it gets pretty exciting, doesn't it? Alright, next slide. Oh by the way would you love to see the technique (unclear 05:42). Alright, $400,000...that one's a complicated one, (unclear 05:49) work on a script. Next slide please. Case study number two, $400,000 payroll company, new profit stream is about $40,000 of profit per year and it's in cost savings. They offer about 3 or 4 services and one of them is remote entry. He says “It saves us tons of money, I can cut a couple of people out” and I said, “Well when's the last time you told your clients about this?” He says “Well we (unclear 06:16) I tell them all about it.” I said, “No no, when's the last time you told them about it?” One mailing, one mailing. One mailing produces $40,000 profits savings per year, alright. The technique was again, we just sent out a letter and they did a follow up call, I forgot about that. Sent a letter, and then I got another email from him saying this is really exciting because we did a follow up call and I don't remember what it went up to, but the total was 33%. Next slide, alright the ultimate leverage referrals, rather sit up here and give you 93 different ways, I don't have time to do it anyway, I want to share with you a couple key principles about referrals and I hope I remember at the end of this I
was sitting next to somebody at one of the tables and I was overhearing them tell about what they're going to do when they go back. They were talking about, “I'm going to do referrals.” And they started telling me about what they were going to do with it and I just listened, I thought it was never going to work. It's never going to work. What they were trying to do, they're not thinking through the process of what it's going to take to work. So I thought them turn your satisfied customers in your sales team with active referral systems. Active referral systems mean, don't just say, I asked for referral but get your clients involved in being your promoters. And again, I can do a whole workshop on that. Next slide, I want to make a couple of distinctions here. Case study number one, $4 million plastic surgeon. New profit stream, notice that says loss, because I want to drive up my point $2.2 million. So this plastic surgeon is on the phone with me and the plastic surgeon says “Look” he says, “We have a real good referral system.” I said “Well let me ask you a question, how many times out of ten.” By the way, key question, stop everybody write it down. I'm serious, write this question down, I'll make you more money quicker than you could imagine. How many people out of 10, how many people out of 10 say yes? How many out of 10 give us a referral? How often out of 10 times does my sales staff ask the question? Because if you have something that's successful and it's 7 out of 10 or 8 out of 10, I can guarantee if I came into every one of your...not everyone, the vast majority of your offices or operations I would find is not being done systematically, and that's a shame. So what happened here was he gets on and tells me this whole story and he happened to have a very challenging job because his clientele were strippers. So he did brush jobs and so he's telling me about the process and he tells me you know what happens, they come back in and when they finally come back get in there, they're really perky and happy...no pun intended. When they're really perky and happy, well that's the time that we ask them. So I said, “How many times out of 10 do you do that?” He goes “We do it all the time!” I said, “Well you do, who ask?” He says, “My office manager.” I said, “Is she there?” he says, “Yes, I'll get her on the phone.” He gets her on the phone and she goes “I think I do a pretty good jobs” I said “How many out of 10?” She says “7”. I say “You've got a calculator. I made him get a calculator, piece of paper and pencil, by the time we were done, I showed him since you started in practice, he had lost down the drain, never to be recovered $2.2 million because he wasn't systematic. How many people does this apply to? How many of you out there do something pretty well but you don't do it systematically? It's huge. So, next slide please. Case study number two $3.3 million publishing company, $100,000 per year, a million dollars of impact and this is a company, I use this because, this is a company that improved the success system. They've got one of the best referral conversion rates I've ever seen in my life. It's fabulous and what they do is they mail out their product to the doctor, the doctor takes a look at it and on the back page, they offer free printing for the month if they get referrals. It's beautiful. Four color beautiful thing works like crazy, gets a ton of referrals. So I said you know what’s interesting, I said, “Let me ask you a question, who orders these?” “Well the doctors and the dentists, they order, they (unclear 02:49) guys” “Well
do they order?” Well my office (unclear 02:50) they all look at it. I say, “You sure they all look at it?” He says, “Yeah I'm sure they all look at it.” And I said, “Well do you think because you do it monthly they probably just look at it and say okay, yes I want to mail that, because they get a choice to who they are going to mail each month?” And he goes, “Yeah, probably.” I said, “It just occurs to me, I don't know, it could be funny, but you know you've got a killer referral system because they see the back page” and he says “Yeah, they see the back page and that's compelling to them.” I said, “Well, how many of you think don't see the back page?” He goes “I don't know.” So we think it's 50%, we were going to do Christmas mailing, we couldn't do it because he couldn't do this and the solution was is by putting a star burst in front of this beautiful thing that says, look on the backside for free printing for the month. How many of you think that would work to some degree? I don't know if it would be 50% or 30% or 20% but it cost him about $25 to do. That's called improving. So if just said to him we, (unclear 03:38) got a referral, he said “Yeah I got one, it's a killer,” we stopped there, we miss out on it. You have to break down your process. You have to break down your process. Next slide please. Develop lifetime customer relationship management systems, I call this, when I teach, I call this the boring way to riches. It really is. It's the most boring one. I was embarrassed to put it into my program because I thought, you know, nobody wants to hear that. They want to hear about how to make money and then I realized that's the number one money maker there is. If your customers aren't happy then everything else falls apart. You can only fool the masses for so long and right now when you've got the big boys like Wal-Mart deciding they wanted to get into businesses like eye care that used to beoptometrist, you got Sears and Home Depot getting into expo and whatever the other place is called, so that now, these independent granite places and tile places and carpet places and kitchen bath places, customer service becomes more critical than ever. There are ton elements of time that you should be using to impact your customers from the time you meet them, all the way through the life of the customer and I don't have time to go through it but, I want to give some illustrations here. By the way , the statistic 25 to 85%, there was a study done, I don't remember the industries, there were 4,5 different industries and they were weird ones like oil and gas and but what it showed was a 5% attrition rate can impact your profits 5% to 85%. So the bigger your margin is, when you lose those customers and the closer you are to break even, the bigger the number becomes. Attrition will kill you. Absolutely, you can’t' afford it right now. It's six times more difficult to get a new customer and you need to keep your existing customers. Alright, next slide. HCC was the business I built that was Inc. Magazine 59th fast growing company in America. Just want to give you a real quick rundown. We've re-maintained 96% of our 500 hospital clients nationwide over 8 years. 96%. Alright we had a little pin that said quality means no compromise. We had system set up. I had, I personally called as the CEO of the company about 200 of the clients every 60 days myself and I hired a full time vice president to make
the rest of the calls. If somebody was rated a one that meant everything was (unclear 05:50) two it meant, the slightest little even tonality, if the tonality wasn't right, they were two, if there were any problems, it was three, came right to my desk and I made a phone call. 96% retention rate. I sold the company and a year later they were losing 55 a year and they had to build old sales force, etc. So you have to guard your customers. Every 60 days I touched my customer, by the way, most of the time, I didn't even talk about business, I built relationships, like check talks about and once you build those relationships, I get them to call me up years later and say, you know what, you guys have dropped the ball, you stink, you need to get it taken care of and that was the call. That was a called action. Next slide, $38 million electrical supply company. New profit stream and I wrote potential here because this is a very frustrating situation. They're a family owned business. In that industry, the electrical supplies is-folks I've talked to in New York, in that large industrial segment, if there's not a recession, maybe they need to call it a depression. It's really a big impact issue. And what used to work right. What happened, what's happened here? During the .com era, you didn't have to sell. You just had to have a shingle and no disrespect to many of them, even if they worked real hard but the bottom line is there is a lot of businesses that did really well because of that. I raised $77 million on a business plan and built a company that was 20 days from having a $1.4 billion market cap with only $85 million in sales at that point. In an industry, that's typically (unclear 07:23), probably valued at one time sales, we were valued at 12.8 go forward sales. It was ludicrous and along with that was all of everybody who was supplying all those services and all of a sudden when I hear over and over and over again is hey, the rules have changed. We have to work. We've got to market. We have to go sell, we never had to do that before. So in this particular case, $3.8 million potential here if they just get 3% what happens? They got in that industry, all of the big contractors divide their work among 3, 4, 5 guys, that's how it works, but when we look at the ones at the top level that they're getting 40 and 50 percent of what they were doing, they had relationships, they invested time, all the other ones they didn't. So what we need to do is take that down to the next tier. Let's take that success model down to the next tier. If they can just increase at 3%, this shift, the 10% shift, so they go from 33% on average of the load to 33%, its $3.8 million to them. It's a big number and the technique was modeling the accounts. Alright, how am I doing on time? Male Speaker: You have 23 minutes. Scott: Okay, good, good. What I want you to do, you should have all been writing. You should have been writing down ideas, if you're not writing down ideas then you're not...oh forget it. So what I want you to do is, this is a sheet. Now normally what I do in this situation if I have more time is we do the first concept, I have you all go break out, work at the tables, you know share ideas, bounce ideas off and then learn off each other, but we don't have time to do that because of the timing. So what I want to do is I want to have you pick the top applications and calculate how much profit you can earn if you implement. Now
you can either choose one of the concepts here or you could choose any concept you've learned this weekend. Don't care what it is, but I want you to write down one or two or three top applications, but I want you to calculate using this here, I want you to calculate what the profitability impact can be. So the top one because, I don’t' have one phone that fits all the number of transactions, it might be an increasing your revenue, it might be a number of new customers, what we want to get to is what your increase potential is in your profit. If you think it's going to be a 5% increase or 10% increase or 20% increase, just write that down, because, ultimately what we want to get to is we want to get to what your increased revenue is by line number B. So whatever you think the impact is going to be, and by the way you don't know one of the things that I teach and what John and Paul did a great job of, you had a little matrix. You had to go through the matrix and determine what your criteria is, to decide what it's going to be, but right now just do it at the back of a napkin. If you think you know what, I haven't done and up sell cross sell, so if I did 20% of the customers would purchase it and you know for $50, write it down. You can ask for more referrals I think I’d probably get about you know it would increase my revenue 10% more, I'd probably get 50 clients and that would produce another $50,000 for me, yes. Audience: Can I ask you a question? Scott: Yes. Audience: I just wanted to ask you were talking about systematizing and office work. You know, you may want, in my case in a gynecology practice, you have the patient go to the front, I don’t' always ask a patient, you know if they've been satisfied to refer a patient, but if you want your staff to ask it each time, do you think it would systematize it 100%. You think a form or some type of, because they get so busy on the front desk that often they forget or they... Scott: Yeah, I'll make two comments. Number one, unless you have a documented procedure that you can measure, it'll never be done consistently, that's number one. But number two, I just want to make a quick (unclear 01:04) out here it's not necessary you're going to ask every patient because it may not be appropriate. It's asking at every appropriate time, does that make sense? Audience: Yes. Scott: Okay. Audience: But would you use a form or some type mechanism to make sure that it's complied with? Scott: I would definitely use something that I can track otherwise you’re not going to ask. Yes. Audience: Okay.
Scott: Any other questions on how to fill this out? Again, this is the back of a napkin, that's all it isn't scientific numbers or actual numbers. What I want to do, I think I have a few minutes, anybody that has big break through either that they've had before, they are applying here, or any of the concepts, let's go to the mike and I want to hear from some people. Dave, you've got the mike here? Audience: Yeah, as I've said before, I'm a financial adviser and I’ve just had a major breakthrough here. I've a website and I I’ve had a lot of trouble getting people to believe in what I do and what I think I'm going to now do is create a separate section on my website and have all different businesses and people and professions with whom I come into contact, listed on that website and I would then meet with these people and discuss these strategies and as a back end I would show them what I do. Scott: So what do you think the impact would be? Audience: Well on them, I would create tremendous additional wealth for all these people and then the back end, I would reap the benefits. Scott: So what do you think that would mean though, financially? Audience: Well we're talking big numbers here. Scott: Give me an idea. Audience: Well the sky is the limit, it could run into billions. Scott: Okay, well the interesting thing is what does it cost you? Audience: It's just time, just a few... Scott: Just time. So the important, thank you. The important distinction there is that we don't really know. But if you have something that's significant, that is massive and doesn't cost you anything, then as Jay would say, “Shame on you for not doing it!” Alright. Tamara: Hi Scott, Tamara Campbell. Scott: Hey Tamara, how are you? Tamara: I'm good, thank you. We had the great fortune and honor to work with you as a personal coach and one of the things that I gleamed from you in the very first discussion we had was “Why aren't you asking somebody if they want something else?” A simple up sell and it made sense to me so I went to my office the next day and I said to the first person who was at the first desk, I said, “Today, I want you to sell facial cream to every single person who buys E3 Live.” But I didn't do it with anybody else, just one person. At the end of the day, she sold 10 jars of cream. When I tracked that, it brought in 4 more customers for us or clients excuse me, in the next two weeks, of other products. So I took that same principle, came back and talked to you and you said, imagine if you do this systematically, so I said, well that's an idea. I went back, I taught it to all of our
tele-operators to do it and we increased the business to the extent that I would say, it brought in very easily four us another $10,000 over the course of a couple of months, just increasing one thing and we did it with samples, not even the actual product, but we gave them samples of the product and they came back and purchased. So the power of just asking, just thinking and if I do it systematically there's no doubt that it'll bring it back to us 100 fold very quickly. Scott: Great, thank you Tamara: So I got that from you, from here. Jeff: Hi Scott, Jeff Wilson of wealth management company and I was on a conference call with you and Jay and we did a quick hot seat and talked about being (unclear 00:00) you gave me a gift and the gift was to go to my existing clients and talk to them about, if they were in the market for refinancing. I fiercely negotiated an incredible arrangement with a mortgage broker giving them better rates than they can get anywhere and lower fees and spoke to 8 clients, 8 of them went ahead with it, made 8 grand in couple of hours time. Rolled out, just last week, rolled out, on a small test bases an email campaign and already have four people who are qualified who are interested, so... Scott: So what does that mean? So for a couple of weeks you made 8, 9, 10... Jeff: So, what that is, what that means is with limited execution, 12 grand, and with just a little bit more effort next year, I could easily be 50 or 100 grand. Scott: 50 or 100 that year, because it's a duplicable thing you can do every single year, right? Jeff: Yes. Scott: Every single year. Jeff: Yes. Scott: Okay, great, thank you. Jeff: Thank you. Lou: Hi Scott, my name is Lou Altman, president of Global Phones, we help international travelers who are frustrated with cell phones that don't work around the world... Audience: YAY! Lou: Yay, alright, I have a fan! Well I'm the guy whose now has become known as the moron who grew his business 40% without doing anything. It's not that great because, and I've never been a math guy. My CFO is over here and hopefully he doesn’t have anything sharp because it's going to come flying at me. We have equipment, our cell phones, built into some of the cell phones we have as an infrared port or cable. You can plug it into your laptop and there were some guys watching me before. You can check your email using a cell phone
when you're driving down the road, in the back of a taxi, on a train, I've been doing it sitting here and I mentioned, I don't know, I said, I have an idea, let's ask everybody it they wanted data with their phones and you know how many times we did that, once, and I don't know if it worked or not because we never tracked it. And not being a math guy, I'm good at creating things and coming up with ideas but I suck at actually running the business. So doing this exercise real quick, if we had a 20% increase or 20% of the people accepted that cross sell or incremental sales would be $80,000, our margins at a 120%. $52,000 of profit from doing nothing more than saying do you want (unclear 02:37) with that? Scott: Is that per year? Lou: Yeah, yes. Scott: So that's 500,000, right? Lou: Yes. Scott: $500,000 Lou: Yeah, from doing nothing more than saying, welcome to Global Phone. Scott: By the way the statistical average is 30%. One of the fun things you do, whenever you go in and somebody says, would you like, you order donuts and they said, for this many more...always ask them, how many times out of ten does somebody say that? It's amazing the answer you'll get. Thank you. That's awesome. Lou: Thanks. Scott: Yes. Sara: Hi, Sara Whipple. I have a seminar company and for me it's just I'm blown away by the simplicity that implementation is asking and the system is a reminder to make sure that I ask every time and just the simplicity of that and the thousands to hundreds of thousands of dollars that it can potentially make me is incredible. Scott: Alright. One of the distinction there is you know, you've got to go back and try and do some of these things and it won't work perfect, but you can play with them, it doesn't cost a dime. You can do five different tests, five different up sell items in the same week. Yes, one over here. Go ahead, you guys are stacked, it's all... Debbie: My name is Debbi Premont. I’m a marketing consultant and a professional speaker and I already offer a tele-class program that I've offered a few times this past year that went over phenomenally well but I really wanted to expand and roll out. And so after listening to today's Jay's program about process marketing.. Scott: Yeah, it’s great.
Debbie: I brain stormed with an internet marketing guru (unclear 04:03), wave your hand, this woman is brilliant in internet marketing, if anybody want to know, and she gave me about 8 strategies to use in the process marketing to really roll this program out, but then I came up with three more and I figured out ways to up sell, cross sell and down sell. So I just started doing rough numbers and it's worth hundreds of thousands of dollars, just depending on how you want to go. But through hose beneficiaries and I mean just all sorts of strategies are really very easy would actually no cost to myself... Scott: Hundreds and thousands of dollars per year? Debbie: Yeah. Scott: You all still think, (unclear 04:35) you all still think and this is a big mind set shift that you own a business for a year. Now if you're doing just one promotion, you're doing just one ad or something in your whole client list, it's not going to work again, that's very different. What she's talking about is a process. What I'm trying to teach you is up sale cross sale is a process. It is a process and so again, the item may change but that'll work year after year after year and you only get better at it. It's awesome. Debbie: Right. Scott: Thank you. Yes. Tad: My name is Tad Hargrave from Canada. I do workshops for student councils in high schools and it's about $50 a student, usually the school will enroll maybe 6 students. So that's $300 and that concept of down sell just totally hit me in between the eyes. I never even considered, like, schools would not enroll and it would just be like, well, okay, next event and it just struck me, what if I offered them, you know I'm really sorry you can't make it for whatever reason, we have this really incredible package we can offer you for $50 or $100, but let's say $50 and even if I don’t know, six schools took that, that's $300, per event and if I do 20 events in a year, that's like $6000 per year that I've just totally left sitting on the table of schools who probably just because of the dates couldn't make it. So that down sell just really got me. Scott: Well then you can go out to other schools with that as well, can't you? Tad: Sorry? Scott: Then you'd go out to other schools as well with that. Tad: How do you mean the other schools? Scott: Once you, what you said is you go, you have a process where I might have missed a step, you've got a process where they don't come to the event, right? Tad: Right, some of them can't...
Scott: So just repeat that last part then. Tad: Okay, so some of them can't come so I could offer them, you know, for $50 a sort of a home study or something they can just have in their school, since they can't make it on that date for $50. Scott: I just didn't know whether or not you can then bottle it, package it and sell it to a school that's not a client. Tad: Yeah. Scott: And now you have a front end instead of down sell, so you got and actual front end to potentially market with or sell into and get a new school as well. It's, I like it. Scott Joe: Scott Joe Winder, we process checks electronically over the internet and the concept of down sell is something that I guess I just hadn't really thought about before but one of the benefits of doing it is the fact that as people are trying to drive down their costs in worst case scenario, we provide a tremendous amount of fraud protection and all these other things that we charge higher rates for. I mean if they get to the point where they just really trying to have a lower base product, we can down sell and say okay, you just want electronic processing of payments over the internet, fine. Here's your price, you don't get the customer service, you don't get this but you save all these things and then come back and try to up sell later and that's to me, that'll probably be worth over easily over a million bucks over a couple of years. so... Scott: I have a client who's in the same thing and they think their sales are going to go up 6 fold, so you know. Scott Joe: Yeah it's pretty strong. Thanks. Scott: And again, it's an easy thing to test right? Modify it, test it, play with pricing and the profitability on your business from net stand point of view is so huge, you've got a lot of variance. Yes. Eileen: Eileen (unclear 07:37) I'm a network marketer and a metabolic weight control specialist and I was here in August. I did the five day workshop. I thought it was phenomenal, but what I immediately recognized was that I could never go back and implement all the things I knew needed to be done because I had zillions of dollars of profit that were flowing through my fingers and Scott was at that workshop and I want to acknowledge you Scott because you impress me as a product of the product. You really did and I knew that Scott could really assist me in building my multiple income stream that I already had. My husband and I have made over $6 million and our current network marketing companies that were doing okay, but happened was Scott designed, one of the thing that happened in my little coaching sessions that we do, is he designed a call and we had several hundred people on this call but we recorded it and it was a call where he walked us through, you did up sell, cross sell, expanding market patterns, customer client retention, that type of thing, and then Scott's office in
(unclear 08:46) also designed us a special report that was nine pages long with a customized letter from me which I simply had to sign. And so what we did, we not only had a phenomenal call which I had tremendous feedback from immediately, but we now have a tool that we're shipping out by the hundreds along with the customized worksheet to our various distributors. So one of the pieces of feedback that I got immediately from that was that someone who had a store front selling our product immediately after a couple of weeks time, had calculated and she had already made $250 more per day in sales in her tiny little operation. She said it was incredible. Scott: Awesome, that's awesome. Eileen: So, I'm multiplying that now times thousands when we are able to fully implement which we are just now getting started, we're doing so...that's pretty exciting. Scott: That's great. Eileen: Yeah, and I got one more. Scott: Okay. Eileen: Scott's also working with me. I have trained doctors done a great of medicine. I've got a phenomenal turn- key profit center where a doctor, health professional can add 10 to $20,000 to his bottom line. I had a chiropractor who's the number one chiropractor in the state of Alabama who was too busy, he wanted to do this, but couldn't possibly see me until after January, because of the little package that you designed putting my profit center together with a little bit more customizing. He had another chiropractor flying in this week for special appointments, Saturday night. Scott: Great, great. Eileen: So thank you Scott. Scott: Yeah, there's an important distinction before we can ask anybody else, thank you. There's an important distinction here in Eileen example, which is she's got all these down line distributors, and the facts here are, I think, she was doing $207 a transaction than the average other person was doing $70 or $80 a transaction, specific duplicable model techniques. One conference call wasn't going to do it, alright. That's why she taped it and now its ongoing training and measurement to actually bring them up. You don't move a ship in a day and from an implementation stand point, I went and took over a company that was troubled and they were, they used to do 10 widgets an hour and they were down to 4.6 widgets an hour and I couldn't say, okay, new incentive program, starting tomorrow, everybody, we have to do 10. It took 18 months and we didn't get to 10, we got to 7.9. To understand this, you have to start to implement these things, you've got to keep working at them, you're changing behaviors, you're testing, you're modifying, it's not automatic and they any of you can go back and
say hey I tried one of those concepts and it didn't work, it's because you need to work at it to get it to work. Yes. Judy: Hi, my name is Judy Cash and I've been speaking so far about transformational tours to Machu Picchu and other places. This time I want to just mention we've got a retreat on an island. It's a very small retreat and the insight that I've got here like accommodation for three different, like two rooms and a (unclear 11:45) and the insight that I got is that part of the cleaning up and homework I can do at not cost is simply reorganize in my own brain about the way I've seen my business. I've always seen it as small and therefore I don't have a budget to do much with it and I've missed entirely that managing a business that's small is really a work of art and I have missed amazingly simple things that I could do because I've just had an attitude that hasn't seen that there's a real dynamic that I could have been working all the time at no cost. We've even had a lot of the right things, about 80% in place. Like we do ask, we do have point of sale, sort of add-on things that we put to people, offering massage when you come, but instead of saying, like people have even said, do I book that now, when they're booking a room and I say no, you can book it when you come. I mean, really, because I've got an attitude that says, we're little I guess and I've just accepted that. We've been in business now for 12 years and that would be a millions dollars coming in over that time. If I had just been creative and had not had that attitude, saw it as a work of art, it's something that was dynamic that could really pulse, we'd have three times that much. So it would take me another ten years... Scott: I mean I have to pause on that because I'd promise I'd wrap up (unclear 13:12). This one last thing and again, you guys can glance at this here, but the critical thing here is that you know when you're implementing a procedure, I want to just give you some grounding here which is number one, you need to document the procedure. It may sound anal; you've got to document the procedure. You have to do it in two ways. When you're doing procedures and you're creating them to get results, you want to look at two things. You want to look at the tangibles. What are the physical steps we're doing, but don't forget to also document for your own purposes the intangibles. What's the timing of the up sell, what's the question I asked, what's the tonality I ask? Who's going to do it? All of those things become extremely crucial when you're documenting. The second one is once you've had it documented, then you can do what Jay is always talked about. You can one up every element, every element once you do it. Every time you come across a better way to do it, you've got a best practice in hand. Why is that important? Because, not only is it important in getting results, it's important because what happens so often is Mary leaves and she was the one who was really good at it and somebody else comes in and you have no training mechanism, one or two thing, either you're doing it yourself or you don't get the results and you go back to losing that stream of income. The third thing that you need to do is cement in your success. Have you ensure that your profit generator is always produce. You've got to set up alarm. So like my chiropractor client I told you about, documents those up sell dollars every single week. If
there are $550, $600, he doesn't worry, doesn't have time to worry. Just a glance, but once it starts trailing off, you need to get involved and find out what's going on or the profits you create are going to be the profits you actually lose forever. You can never recoup them. Jay: Don't stop, I'm going to ask you a few questions. Okay. Number one, what's the one overriding action other than what you just said that is imperative that every person here does A: with what they heard and experienced in the last three days and B: with what I sent them and gave them in the last three weeks or months. Scott: Okay, absolute most important thing you can do is create momentum. You're going to leave here, you've got a billion things you've heard again, Paul and John talk about focusing on one thing. If you create momentum, momentum gets exciting in the room; the ball gets bigger and bigger and bigger. So the number one thing is don't go back and try to do the biggest thing. You'll tackle it, you'll get busy, take one simple application, something that has power and impact, John and Paul, both gave you tool to how to hierarchy this stuff, hierarch your opportunities and pick one or two things. Once you do that, then you can go back on a weekly bases as (unclear 15:59) teaches and introduce something week after week after week and create momentum. I can tell you if you don't do that, if you go back and you've got grandiose plans doing 4 or 5 or 10 or 15 things, you will not do it. Jay: Next question. Not you, not me, what's the biggest insight you got from somebody else here including it could be an individual at the mike or on the stage that you think is so exceedingly important that these people also get that they may not that you've got to tell them you're going to explode, if they don't get it. Scott: What's something that I'm going to tell them that's new? Jay: Well something that you're going to tell them that's not about you, not about me, but you observed it, you learned it, you rethought it by listening to somebody else and either taking what they said or it stimulated something totally different. You made a note for yourself to act on, I mean, it's an insight on the highest magnitude that you don't teach, I don't teach, they heard but they may not have really impacted them. Scott: Alright. The thing is that, I don't remember what it's called. What's it, rethinking inside the box? Jay: Yeah. Scott: Rethinking inside the box. All of you and I think, I don't know if everybody got the power of that and I know you all get tired, but you've got an opportunity to leverage your successes, and these are new opportunities, but if you look, I think the premise of that was, if you look inside your box, you look at your systems, you look at your assets, you look at how you can leverage those things, that's immediate, it's instantaneous and the key here is that you all should go
back and be able to do that, take an inventory. If you go back and take time to start looking at components of your business, you'll be embarrassed by what you find. I went back one time in my business, in my healthcare business, and we had 1000 different charge (unclear 00:46) 4 million invoices a year. 30% of our business came from the state disability evaluation. I negotiated this deal with multiple ones to raise the rates 15% or 20%, I can't remember what it was. So I don't know if it was weeks or months down the road. The bottom line is, one day I went down and what I would do once in a while is I sat down with invoices (unclear 01:06) invoices and said, “Boy, started telling me how to do this.” and also I saw the rate pop up, $15 instead of $20, and I went “What's this?” And I had my staff go back and dig and I don't remember the number but 30 or 40% of the charge codes never got changed. Now this is millions of dollars of pure profit. Does that make sense? Now all of you should be going into your businesses and taking a look at what you assume. Its little things, I got a ENT doctor that says, “Oh we get the emails, great.” But you know when he went back and looked at it, he found they weren't doing it, or they weren't doing it systematically. So back and look within and look at your assets and find out how you can leverage them. Jay: Okay, you're very good at looking at a broad scope of things and honing in on one real key message, aren't you? Scott: I don't know. I'm going to find out. (Audience laughs) Jay: So, we had a lot of speakers and you got to see most of them, didn't you? Scott: Yeah, quite a few, I guess. Jay: We are going to do a(unclear 02:02 ) who's got the list of all those people who spoke, anybody? I'm going to name a speaker and tell me what you think the message that these people should have gotten from him or her voice. You alright by that? Scott: Okay, yeah, as long as I've listened. Jay: If you were not there, say pass. Scott: Alright. Jay: And if you don't think you have it, say pass. Scott: Okay. Jay: Okay. Let's say (unclear 02:20). Scott: Okay (unclear 02:21) message was is that you really have to dive in and work on your business. It's not about wrestling; wrestling it to the ground and it's really about I think taking the concept much consistent of what we're talking about here and staying with what you think should work within your organization
to actually get it done. If you don't wrestle it to the ground and you don't get the results, why would you switch? Why would you have a situation where you have something that you've just calculated here that you think is going to make your million dollar business, you should make 100,000 a year, you've identified something that's going to make you $200,000 probably but you just don't believe it in your heart. And yet you want to go back and you want to go back and work on the next thing. It doesn't matter if it takes all year to do it, it's going to triple your profits and that's what you all need to understand, to wrestle it to the ground. Jay: I love that, good. Mike Bash. Scott: Mike Bash's concept is which I love because it's very customer centric, is that it's all about building your relationships with the customers, not just giving customer service, it's building relationships, it's walking your talk and I think the overriding message of all of that or the benefit is that if you do that federal express in (unclear 03:32) UPS as he talked about, built on that reputation and once you get that reputation, they will come to you and they will stay with you even when there's price competition. There's no greater in my opinion, there's no greater combat to price competition other than creating value than creating strong relationships with your clients and I think his message was very powerful. Jay: Okay, I'm liking what you're saying so far. Paul Lambert. You've seen Paul? Scott: Yes, Paul's message was similar to what I talk about which is one: focus on one thing. It's all about implementation; it's all about being tactical. It's all about taking the things you're learning from Jay, these ideas and focusing on implementing one thing at a time and I love, by the way, didn't he have the coolest graphics? Aw, it's just killer graphics. So it's all about implementing one thing at a time and ultimately, at the end of that, being able to value that, to be able to hierarchy that process and so you know, you're hearing that over and over this, you know why? Because it's what's necessary, it's what's necessary to get results. You know I think all of our speakers, I know Jay's goal is, we don't want you to come to another one of these events and say, still haven't done it, right? Rise to the next level. Next time you come to the next event, it's hey, how do I take it for the next level. How do I go from, I went from a million to five million, let's go from five to fifty. Jay: Let's continue, I like this game. Jackie Hall. Scott: What's that? Jay: I like this game, Jackie Hall. Scott: Was Jackie the... Jay: The woman on the screen. Scott: Oh, I learned a couple of things there. Number one is that she was very patient in being interviewed.
(Audience laughs) Jay: So patience is an attribute? Scott: I only saw part of Jackie so I'm in a little bit of disadvantage there. Jay: Okay, John (unclear 05:21) Scott: John, John's message was, John's message was also very powerful and he is, he has a very gifted way of presenting things. Doesn't he? He just humanizes the whole process, isn't that awesome and again what you had is I think that John's another one, as a matter of fact, I'll tell you, John and Paul stole my thunder of what I was going to talk about today. So I'm upstairs scrambling to take and modify... Jay: After having three other sessions cut out from under him. Scott: Yeah, and having how he crunch it all down, I didn't mean to go so fast, but they were both, as a matter of fact I went and say to him you guys were awesome you know, and I wish that what both of them had was a little bit more time to actually take you through the tactical steps because when you look at where they're heading, it's all about saying you know, look, there's a systematic way of looking at these things, there's a systematic way of valuing things and that's very powerful for all of you and what also I liked about what John had to say was you know, it's about quality of life, you know, we're entrepreneurs, we burn ourselves out. It's about quality of life and I think that you can do both and I think what I've realized is that I made a goal to work for three days a week, right now I'm not getting ready for this and all that, but I made a goal to work three days a week and that's why I'm not a CEO anymore and you know, it's interesting when you work three days a week. I set up my goals, I don't make any less money and its amazing how my income has actually exponentially grown because I put that in my mind set. So that's what I thought he offered. Jay: Okay, what about Donald (unclear 06:45)? Scott: Donald's, I didn't-I also didn't see that one. Jay: (unclear 06:49) Scott: I was up scrambling trying to adjust and modify... Jay: I'm sorry, did you see (unclear 06:52)? Scott: I did not see (unclear 06:53). Jay: Okay William Thourlby. Scott: No. Jay: You didn't see him, the (unclear 06:56), from this morning. Scott: Alright.
Jay: Okay, that's okay. Alright, okay. How about Brian Tracy? The big single concept that you got from that, you can pass if you don't want to. Scott: No, I don't want to pass him, just trying to think what I would say the biggest message there is. Help me out here, get me started. Jay: Who's got something good about him, so throw it out. Audience: (Unclear) Scott: Yeah, get over it. It was, it was about; he… Audience: You become what you think about. Scott: Yeah, you become what you think about. His was also I think that you had with probably with Brian, thanks for triggering it, what you have with Brian was that there's a lot mental state. It's about a lot about your mental attitude, it's a lot about your mental thoughts and that it's as much to do with your success as anything else. We all want to work-you've heard up here, you've heard about strategy, we've heard about, I'm talking about tactical and you know Brain's message is that you know, it's about attitude and if you have the right attitude, if you have the right discipline, if you have the right focus, you set your goals and you make sure you check those on a regular continuous basis and discipline yourself, you will be successful and I think when he said you know you could be anybody in this room who wants to be a millionaire, could be a millionaire if you just focus your mind on it, take that mind set and focus on staying focused and disciplined on your goals. Jay: Did you see Andy? Did you watch Andy Miller? Scott: No I did not; he was from this morning as well. Jay: Did you watch Mark? Scott: Yes. Jay: What did you think Mark's message was? Scott: Okay, well, Mark's message was (unclear 08:37) (Audience laughing) Jay: Are you interpreting the message in that message, he is encrypting the coded message. Scott: No, I was just joking. His....no no, it was powerful, but it was so fast it's like my springs were popping and it was like his message is, you can leverage to the nth degree. There is no end. If you set up and say I'm going to leverage this thing and come at it a different way and always looking creating more value, pulling more profitability out of your business. It's endless. Has he created a money machine or what?
Jay: I think he also had a (unclear 09:07), I liked most of yours, on this one I would have mended and said, I think he said, set higher goals for yourself. Scott: Yes. Jay: You're worthy of more than you accept from yourself.
Jay Abraham Mastermind Marketing 31 Jay: I think he also had a (unclear 00:08), I liked most of yours, on this one I would have mended and said, I think he said, set higher goals for yourself. Scott: Yes. Jay: You're worthy of more than you accept from yourself, from your business, from your efforts, from your actions, from your marketing. Do Andy. How about, did you see any of Mac? Scott: Well, I've seen Mac before. His is, you know, it's crack, fix it. No, I think one of the... (Audience laughs) Jay: The CRACK. Scott: One of Mac's greatest things is, you know, it's the bottom line is it doesn't matter what we think. It doesn't matter what we think. It matters what the customer or the prospect thinks and that there is no right answer that you've got-there are some fundamentals. He's a master teaching you fundamentals, but at the end of the day, none of us really know if it's going to work and the bottom line is that you've got to test, test, test, test to find out that winning formula. Jay: Okay, how about Allen Coleman. Is Allen in the room? Allen here? Allen Coleman? What do you think? Scott: I didn't see him. Jay: He was-he did, did you? He was the guy with a Double O Matrix. I though you said you saw him. Thinking outside the box. Scott: Oh, thinking outside, I already did that. Jay: Yeah. Scott: Yeah, okay. Jay: But did you already say what you thought he was all about. Scott: I already said, yeah, I already said that one. Jay: Okay, did you see David Wagenvoord last night, late?
Scott: No. Jay: The barter guy. Scott: I would have liked to have seen that. Jay: He was good. Okay so do me. What do you think I'm all about? You won't offend me (Audience laughs) Scott: Well, I think that you are all about and especially, it's one thing when you see and know Jay from the stage or you hear him on tape, but I can tell you from spending private time with him as this is a man who is passionate about you guys getting this. You know, here's somebody who's made millions and millions of dollars, could have just stopped doing this and you know, when him and I first met, he used to drive me nuts that they don't get it, that they're still not implementing at the tactical level and I think what I admire about Jay is two things I think that you've got to get out of this. Number one is he's constantly looking for a better way to serve, he's constantly looking for a better way for the techniques to work, that's why there's 12 or 13 or 14 speakers here because he's trying to bring you collective knowledge to look at things in a whole, in a broader way Jay: I have one more and we're done. What's the biggest single insight, other than your own comments that you've got out of the power panel last night? Scott: I think probably the biggest insight that I got out of the power panel last night which was interesting is one of the things is that, we all have different views of strategy, that everybody has a different view of what strategies are made up of and that there are different slices of the pie and I thought it's real interesting to have be up here with 10 or 12 other people and hear so many unique and valuable perspective, all of which were right. Isn't that cool? Jay: This is true, we're getting ready to do a very expensive program in March or April on strategy. It's going to sound funny to you, but (unclear 03:25) and I were talking and it's interesting. I said, “You know, everybody thinks I'm a great marketing whatever, expert, wizard.” I said, “Probably, I am, but I think I'm a better strategist. I think I change peoples' strategy first and then I develop the marketing” and I said, “most people are tactical” and I said, “of all the levers that I know, the easiest thing to give somebody a leverage is change their strategy because even if they execute wrong or not wrong but half past, it'll still work better than doing (unclear 03:55) with the wrong strategy... Scott: Right. Jay: (unclear 03:57) people it's like that's, you know, learning (unclear 04:00) and selling is instant leverage, changing your strategy is probably the second biggest thing you can do and most people can't even-we, in preparing this, we're going to do like a $25,000 program and if you guys want to come as a beta, you
can come in for almost nothing because we've got to get some betas in it, but we look through like a 1000 pages on the internet, we look through books, very few people have a clue, even the real-well how to describe strategy let alone what the hell it is and yet as our four star general here told us... (Audience laughs) Jay: That's right Scott: (unclear 04:44) Jay: All you want is retire and get the money, right? Audience: That's not enough. Jay: And you want to get-don't you want the chauffeured Hummer for life? Audience: (unclear 04:53) VIP's Jay: You want the chauffeured Hummer for life, don't you? But strategy is-you've got to have the tactics to deploy it and that's true, but if you have great tactics without a strategy, you'll never grow to the levels, you'll never have a sustaining business, you'll never be outside of it and you'll never have the asset value that business could be worth. Scott: I think, see, I would have argued with your opening statements. I think the greatest asset, the greatest thing you've brought, the greatest thing is strategy. It's changing the mindset, it's thinking, it's it's about new possibilities... Jay: That about-that is strategic. That is a strategy. It's a strategic distinction. Scott: Absolutely. Jay: It's a philosophical strategy of life. Okay, you did great and I'm sorry again for all of this, but we (unclear 05:33). Thanks a lot (Audience claps) Scott: Thank you. Jay: Okay, here's the deal. Scott: Let me see if I'm (unclear 05:50) Jay: This is always the case, I'm under time, I'm way ahead, everything is rowing along... (Audience laughs) Jay: Not. Okay, so we're going to take, just as-you only have ten minutes to break and then if you've got to talk, stay and shut the doors. Mac and I, here's the game plan. I've got to get you to dinner at 9 or I screw you guys up, I screw the staff up and worse, I turn rubber pasta that's cold into hard stiff macroman. I
don't think you want to that. So we're going to go until 9 and here's what we're going to do. We're going to do crisscross pollinated permutations of hot seats question and answer scenarios like getting everybody to the mike to demonstrate all the ways they've figured out to make money with the internet. We're going to keep changing the game until you get it deep enough. We're going to break, we're going to see what it's like at 10. We may do another hour or two and then we're going to build late in the night and so we're not going to be able to be on tape. I promise you we will do, we will stay till it's done. We're going to build you an action plan. But I've got to get some things that I haven't covered yet and rather than doing them in boring linear-just basically literal list, it isn't going to work. I want to do it in empirical and illustrative (unclear 07:10) or so, could take a ten minute whatever, put on something really loud and energizing so I can get myself ready and we come back and get ready for a real fast paced trip. Jay: Here, this is very important. Okay? Are you here for the whole thing? You're not leaving till 8? Audience1: No. Jay: Okay. What's your regular business? Audience1: I work (unclear 00:10 track 2) illustrated. Jay: Okay, well, for the rest of the session, Audience1: I'll be (unclear 00:14 track 2) with fine arts. Jay: Well you (unclear 00:16 track 2) worked with fine arts, but right now, you've just become the director of the Abraham Marketing Ets and your job is to recruit men and women and we'll have-in the last, in the end, we'll have a little performance, okay, so, at dinner you can figure it out, alright? Audience1: What do you want me to do with that? Jay: I don't know, you're going to surprise us! Mac: He's a big delegator, you know, basically making up... Audience1: (Unclear 00:38 track 2) Jay: It's the Abraham Marketing Ets. Audience1: Ets? Jay: Ets. Marketing Ets. It's a group. It's a performance, like a drill team Audience1: Like the Rockets. Jay: Like the Rockets, except we're the Marketing Ets. Men or women, I don't care, you figure it out. Mac: One of your inspired ideas.
Jay: Okay. Alright, don't laugh, I'm serious. Audience1: I know. Jay: I take myself serious. Are you laughing at me behind my back? Audience1: No, we're enjoying. (unclear 01:05 track 2) Jay: Who wants to volunteer? Okay see you her at dinner. You disrupted this Mac. Mac: Yeah. Jay: You want to see anything interesting about Mac's demeanor, his style? Audience: (unclear 01:20 track 2) Jay: Is he a dancing machine? (Audience claps and whistles) Mac: It's the tie Jay. Jay: Is that tie hot? Mac: Jay caught me coming out of my room and he said, you have to put on this tie! (Audience laughs) Mac: I have something special later. Jay: Okay, okay, we'll get rid of this. Alright, can you give me a sparkling water please? Mac: Oh, it doesn't affect (unclear 01:40 track 2) Jay: And hand me one of that (unclear 01:42 track 2) Mac: Yes, it's a nice tie, it's a beautiful tie. Jay: Okay, so... Mac: I think this is my fa... Jay: That's a nice tie Mac! Audience: (unclear 01:54 track 2) Jay: I only wear it on holidays. Mac: Which holidays? (Audience laughs)
Jay: Insanity day, you know. Mac: You never take a holiday, that's just why it's no use. Jay: That's true (unclear 02:06 track 2) anyhow, okay. So we've got a bunch of ground to cover. We're going to go till probably the hotel thinks we're crazy because we're probably here till one or two, but we've got a couple of quick points we've got to make before we start. We're got five or four issues, we've got to teach you and I'm going to take one, Mac will take one, we're going to be very quick and we'll spend about four minutes on each. You take your choice first, I'll take the next one, of your list. Mac: Okay, here's an issue that I-really has been surfacing in a lot of my discussions and it's one that we should have treated-we treat; it always pops up. This is scientific method as enthusiastic as it can be. Jay's method-there's method in the madness. You are not, repeat, not authorized to throw your current businesses in the trash and dive into the deep end of the pool. You're just not authorized by Jay Abraham. And what I mean by this is that people get so enthusiastic about these new techniques that they say, “Oh, all my old stuff is crap!” I didn't say that. What's his name, Scott did. They do, and they say “Oh, it's just terrible!” and they forget that that's their basis. That's what they need to measure things against, that's what makes it scientific, that's their control in direct marketing terms. Don't throw away what brought you to the party. Hold on to it. It's your crown jewels. Jay: To explain... Mac: If you can make an improvement on it, that's the improvement. Your enthusiasm maybe wonderful, but it may not sell. You worked on your old engine for a long time. People have been trying to throw away the internal combustion engine for 100 years, we're still with it. This is-you make sure that what you're doing is in fact an improvement and you don't just trash your old business because your bored with it and please, please, it's a method, it's a stepping stone process, you want to move from known to unknown. If you think your message is stale, don't change the medium, don't change the format, change just the message. The elements of whatever you're doing have to be controlled. If you go into an unknown market with an unknown product and an unknown message, in the end, you don't know anything, even if it works. Jay: So, can I make some additions? Mac: Please, this is... Jay: So you've got a business, my line, is that on? Audience: Yes. Jay: Off or on? Audience: On!
Jay: On, okay. So you've got a business that is generating some cash flow, positive or negative. There are some mechanisms doing it. You have sales trips, you've got ads, you have this. You don't stop everything. The first thing you do is say “Every element I have in place right now is what I will call my control mechanisms because that is the best I know I have going right now.” Would you agree Mac? Mac: And you know something about it. Jay: And then you, first then you measure and quantify, you say, “Okay, I've never looked at this.” What is your name? Bill: Bill. Jay: Bill, one of our sales person is, I start looking at elements that I can-some metrics that I can measure and quantify. I start seeing that Bill is calling on 10 people a day and securing three appointments and making two presentations and closing one out of those and selling an average of 100. I've got a basis. I see that, what is your name? Sara: Sara. Jay: Sara is running the direct mail department. She is sending out 10,000 pieces a week and the piece she's mailing right now which is, let's call it the A piece and it's pulling one half percent leads and of those 10% of the one half percent coming in are converting to an average of $200. That's our control B from that thing. (Unclear 06:10 track 2) just give me some. And then we see that... Reyman: Reyman. Jay: Reyman is basically going to trade shows and he is spending on an average including his salaries, incremental expenses, the trade show stuff, the fee we pay, $6000 of trade show and he is bringing in, because I started analyzing it, 8 new accounts, worse case and each account's worth $2000 a time and were making $500 on that and staying for about a year worse case, three times then it's whatever that is. You get what I'm saying? Mac: And what this means is, what this means is if you have something in place, you don't just throw it in the trash. Jay: Okay, because that's (unclear 06:53 track 2) but then you've got, then you know, then you say, okay, I've got choices. First choice is can I make what they are doing perform better? And if the answer is yes, then next one is how? If you don't know, the first thing is you look outside and see how other people are performing the same function, do it. And then, if you see if you can borrow elements and not replace what is working but side by side compare to see if changing the constitution and the construction. Mac: Why do you think they call it copyrighting?
(Audience laughs) Jay: He's right. No, but the point is you test... Mac: You find things, other things and no ego... Jay: And this is the logic. You don't test direct mail instead of space yet. You start with where you are, what brung you to wherever you are. Before you abandon it, you've got to make sure you've got something better you seek and I make that ad perform better. Can I change a headline, can I change an offer, can I change a call to action, can I change guarantee, can I change price, can I change the way I receive the order, what I say, the script I use. Any number of variables. That's one thing. At the same time, there is nothing wrong with separately, but without ever compromising what is sustaining your current success trying any other number of the other elements we talked about and any other number of the 50 elements we didn't talk about that I gave you better education about than you've ever gotten in your life in the first day's stuff, in the last days stuff and in the 12 big big big documents and items we gave you and conservatively trying that out separately, not in lieu of but separately in addition to conservatively to see if it works and if it does work, if it works better and if it does work better but the other one is making you money, why in gods name would want to stop it? I'll give you a story. I've got to give you a story. Mac: For instance, can I just say, it isn't, for instance, testing is not, say, firing all your salesmen and saying we're going to go with web presence. That's not testing. Testing is trying a little web... Jay: It's asking two separate questions. Mac: ...questions at the same time. Jay: How much better can I make what I'm already doing to action or the categoric activity perform and it's asking, is there a better different way to get the same access or result and if the answer is if I can make this perform better, but I can get a better result here, you don't abandon this, you combine them because you understand force multiplier, you understand the parthenon, you understand the power business geometry, right? Audience: Yes. Jay: Does that help clarify that question? Okay, one down. Mac: Okay. Jay: Next. Mac: You want one or do you... Jay: Yeah. Guarantees. Mac: Oh yeah, good.
Jay: Okay, so, I don't know if I said this but I'll say it again. Anytime two parties come together to do any kind of transaction business, fraternal, social, romantic, you know, you want to get a job, you want to get a client, you want to get laid, I'm not trying to be funny, you want to get name to the top of the city council, there is always inherent in the transaction. One side is always asking the other to assume and you fill in the blank, most all or more than all of the risk in the transaction and the complexity here is the risk can be tangible, it can be intangible, can't just be a financial or giving your life to the wrong lover or it can be intangible, it can be (unclear 10:42 track 2) Mac: Can I give an example? There's one that's in this room which is, I saw from flier that somebody put together on a software system for businesses and he is featuring his money back guarantee. Well if you're-you'll meet people in business, what's your concern is your concern over even a $1500 software product that you can get your money back if it doesn't work, if you install it and you run it and it's supposed to run your whole business, what's your concern? Jay: You worried about the $300. Mac: Is it the $500 or even $1000, what's your concern? Audience: (unclear 11:15 track 2) Mac: That it'll destroy your business, isn't it? And so, getting the money back is the least of your worries and so that's a hard warrant to warranty, but it may well be, and this person has over 100, raise your hand, where are you? Right there in the red shirt, what's your name? Brad: Brad. Mac: Brad. Brad has 100 testimonials. Testimonials like a risk reversal because it says, all these people who were in business and who liked me, written me and said, the foot on the line says, it works. It's not a classic guarantee, but it is a risk reversal, because, people, you say, “Okay if it works for all those guys and they're willing to put it on the line, then I believe it” then that's a risk reversal, it was not a classic guarantee and this, it's a kind of nuance. Jay: So, there are so many ways to do it, but you've got to realize and if you read all these case studies as Rick said, something in the vicinity of 60% to 75% use variances of risk reversal. What I say is there's a very big difference between saying satisfaction guarantee or saying okay, come to the seminar, you sign up. First thing is we're going to send you stuff worth $11,000. Why is it worth $11,000, because we actually have sold it for that in the last few years and we've sold it to thousands of people. We're going to give it to you to study and examine and evaluate for 30 days before you ever show up, 60, maybe if you really proactive and commit. Now, we're going to give it to you to put to the acid test, not just a test theoretically, but to apply in your business wherever it's best suited and unless it makes you at least $5000, which coincidentally is the entire price of the program ahead of ever coming, we don't even want you to go forward, but we insist you keep all the collection for your trouble because we
think your time and your faith in us is worth it, but after you have made $5000 or multiples thereof, we think that's not enough because your time traveling, your faith afterwards is so valuable and precious and really important to us that we insist that we must deliver a multiple on that $5000 before 2 o'clock on day two or we absolutely don't think your purchase should be binding on your part. We don't even deserve to get to keep your good faith deposit. You should leave discretely and respectfully and get your money returned, but if we do provide what we said, that's not enough and we don't really need or want your money upfront, we'd rather pay for your attendance purchase for you which we probably would have done earlier but if we didn't for some bizarre reason, like maybe just couldn't get around to it, we let you pay after you profit afterwards and to make darn certain as it sinks in, we'll be on the phone with you for 12 months, 90 minutes a month that's a pretty good guarantee isn't it? See the difference between satisfaction guarantee. Mac, you want to comment? Is that clear enough for you? Mac: Is that clarified? Jay: No, I'm serious. Mac: Does that clarify anybody's thinking, is anybody even... Jay: You've got a question. Alright go to the mike if you have a question. You've got any question, because I don't to hear a grumbling at one, “Oh I didn't hear about guarantees” Go ahead. Mac: The other is, the other side of don't guarantee what you cannot guarantee. That's the corollary. Jay: Yeah. Mac: Don't... Jay: Did I talk about realtors here or not. Did I already give the example of realtors the other day? I did, yes. I thought I did. Did I make sense? Audience: Yes. Jay: Okay, because you can't guarantee everything, but if you can guarantee more of the transaction or the first thing is you've got to be able to do what I call a risk audit, a risk inventory. What's the risk-tangible and intangible because if you don't know what it is, how can you take it away? And it can't be what you think it is necessarily, it's what they absolutely perceive it to be tangibly and intangibly. Remember when I read to you this strategy of preeminence and I talked about putting words into feelings that has never been verbalized before? This is the absolute arena where it's critical. This is it. Do you want to go deeper after I answer these questions? Mac: He has a questions first.
Tad: My name's Tad from Canada. I do workshops, I day-long workshops for student councils and I offer 30 day guarantee let's say, do I remind them at the end of the 30 days, okay the 30 days is up, now if you want to, you know... Mac: Only if you have too much money in the project. Jay: No but you remind them on day 1, I mean, what we didn't get into and I don't (unclear 16:08 track 2) to be a good teacher of this, but I believe in what it's called future pacing and future pacing is a process of setting the visual expectation for what-pardon me-the future is going to be like after you either acquire the product service and it's transactionally functioning to protect or enhance your life or your business. For example, I envy you Muhammad? I got a good memory, don't I because I can't see far enough. Muhammad: That's wonderful, thank you. Jay: You're in the printing business I think. Muhammad: Yes. Jay: I got double good memory. And you're going back tomorrow and you're going to be a little tired but you're going to set in motion an incredible series of events and activities and guess what's going to happen. You're going to start having, first thing is, you're going to start having satisfied, happy clients who realize how much value you give them and how incredibly important it is and they're going to start telling all of their clients and they're going to start telling all of their vendors and you're going to start seeing an incredible consistent-it'll start as a really nice flow and you'll start becoming more and more acute, it'll almost become title proportions if you do it right, every week you're going to start seeing incredible flow event and then guess what's going to happen. You've salespeople in the field? Muhammad: Yes. Jay: Your salespeople are going to start basically, they're going to start number one: getting better appointments, making better presentations, closing more clients, getting more quality people that not only you're going to enjoy, you're not going to negotiate down to nothing, you're going to start enjoying it, you're going to have clients that bring other clients and it'll go on and on. By taking the future to what it's going to be like, that's going to be pretty exciting expectation, isn't it? That's called future pacing and you try to put future pacing into a guarantee. Let me demonstrate and when we use that example, that-is probably going to say, it's not legal, I just don't know the legalities of supplements, but supplements is a great use. I'm going to (unclear 17:58 track 2) you'll have to refine it, but I'm going to get it, so I can could say, “Well gosh, I'll sell you, these supplements with 30 day unconditional guarantee.” That's pretty exciting isn't it? What if I say, what is your name? Yeah. Luke: Luke
Jay: Luke? Luke: Yeah. Jay: Here's the deal. I'd like you to do this for me. Would you be willing to try these supplements 3 a day, one at 8 when you start your day, maybe (unclear 18:25 track 2) at the office, one at noon, right before you have your first drink of water, coffee, coke; one when you get home before you eat dinner and monitor yourself, if within 30 days or less, the following things don't happen, I wouldn't deserve or expect to keep your money. Number one: you start having the energy you had when you were back at 18. You're getting up an hour earlier, your staying up an hour later, you're in the moment, focused, things that used to really upset and perturb you don't bother you at all, you're attentive at work, you're getting more done everyday than you maybe got done every two or three or (unclear 19:06 track 2). Your staff is telling you're a heck of a lot more calm and enjoyable to be around, you're seeing your staff and your clients and your prospects treat you with a different level of respect. Your family is really enjoying you. Your wife is finding you more romantic, you're relaxed, you're-people are telling you, “Boy, you look so good!” and if that doesn't happen and you don't feel that way by on or before 30 days, I don't want and I don't deserve, I don't-I wouldn't think of keeping your money. Would you be able to try that for me? Luke: Sure. Jay: Sound better? Mac: To answer that question specifically on whether you should send the notice at 30 days, well you'd probably do it because people do what you ask them to do. There's what I call a meta-message if you sent that notice. Jay: Yeah, good point. Mac: The meta-message was to people who are out there and who are basically satisfied, they go “Oh, maybe I should be unsatisfied.” So you just made them unhappy with something they were relatively (unclear 00:56 track 3). Jay: Yeah, you should use what I was saying is you should preempt it in the beginning to give them a great expectation, because there’ll be more mind flow of how much value they got out of it and Mac is right unless you don't give them anything worth the value and then you're screwed and that's your problem. Okay, yes. Audience2: I had a question. Yesterday, you were talking about the radio advertising and the guarantees that you-you were asking of the radio something in return but there was never an explanation of exactly what were you asking in return. Jay: I'm sorry I was thinking about what Max just said and I didn't hear you at all time. Say it again.
Audience2: Okay, what I was asking about was yesterday you were talking about... Jay: Which me; me me, or this me? Us or the group Audience2: You know what, I don't... Jay: Someone was just talking about it, so let's get this right... Mac: Someone (unclear 01:45 track 3) Jay: Someone in this room maybe a speaker, maybe someone else... Audience2: No, no no, it's a speaker and he was saying something about, okay if we're going to present you with an advertising proposal for a radio station, they were going to ask something in return from the radio station and... Jay: I don't remember it. Audience: Barter (unclear 02:05 track 3) Jay: Yeah but I don't remember, I was in the room, but I don't remember the context. Remind me what it was Mac: (unclear 02:10 track 3) Audience2: Okay (unclear 02:12 track 3) was something you've been asking in return from the radio station basically trusting your money with advertising campaign with the radio station. Jay: I'm sorry, I don't remember this Mac: (unclear 02:25 track 3) I think this is David Wagenvoord Jay: (unclear 02:26 track 3)Who can give me the scenario, I can't remember the scenario. Audience: You said client list, barter. Jay: But give me the exact scenario. What is was it? Audience: Carnival Cruise. Jay: So Carnival Cruise goes to a radio station and what do they get, what do they give, what do they get? Mac: They get (unclear 02:42 track 3) Jay: (unclear 02:42 track 3) go to the radio (unclear 02:42 track 3) and say we have cruises, our cruises offer $2000 a week. You have radio advertising, it sells for $2000 for a 60 second commercial. For every time you run a 60 in double A drive time, we'll give you a cruise credit. You can use that credit anytime in the next 12 months. You can use it together to bump up to more expensive or you
can use it to go down. It's doesn't matter when you use it as long as it's on availability basis. Is that answer your question? Audience2: Yes, it does. Jay: Okay, next. Audience3: Jay, I was going to send a direct mail, a letter in January, Mac, the other night, I went over the letter with us as a group, the one area in the letter it's. Jay Abraham type letter. This is for prospective patients as a gynecologist, but the one area that I can't quite figure out Jay is the USP because, when you're talking, I'm sorry, with a guarantee because, we're not able to give their money back or... Jay: (Unclear 03:44 track 3) I can make jokes which I want. You might be able to really-I'm going to try to-I'm not going to be evasive, but you might be able to refer to the fact that you have a unique empathic understanding-you feel the problems that they feel and your approach is very unique for a male obstetrician or sorry gynecologist...don't you think? Audience3: Yeah, that's right, (unclear 04:14 track 3) because the whole point is you can't really guarantee the result except that it won't hurt... Jay: It won't hurt but I don't know if that's enough. Audience3: Except your best efforts basis is the supreme care, the supreme care. Jay: Yeah I think it's empathic. Audience3: Supreme empathy Jay: Yeah that's what I think. Audience3: in every fiber of you... Jay: Women, what do you think? Audience: (unclear 04:38 track 3) Jay: Pardon, and that's a great idea. It's a great idea, use testimonials... Audience3: Right. Jay: ...from women and ask them and record them, you guys will get into this testimonials because, your clients, your patients, they can do so much, they'll tell in their own passionate heart filling-which is also-can I-so I'm thinking about this or I'll forget. I don't know if you've ever, have you ever heard of my amazon.com school of copyrighting. Audience3: No
Jay: Oh, this is too cool. I get tickled with myself. I don't come up with a lot of great views but when I do they're so cool. How do you like to have a billion dollar copyrighting genius at your beck and call for free 24/7. You do? It's called amazon.com. Anytime you want to write copy about anything, anything, all you've got to do is go to amazon.com, put in a search engine in the generic topic, take the 50 top books on the subject, go to them on Amazon, look first of all at the titles and the subtitles. Write those down. Then go to the descriptions, write those down then go to all the five's and four's and all of it, the one's two's and zero's, they're polarized. You get the best most passionate articulation from people of what they felt great about it. You get the worse ones and what they didn't want. Take those words, build it, you'll get killer copy. How do you like that? Mac: I think that's great. (Audience claps) Mac: I'm really, that's absolutely wonderful. Jay: No, I've done it, it works. Audience3: So Jay, one last-I went over this with (unclear 06:09 track 3) Churchill and he had said if anyone has this concern then come up and talk to him. What he recommended was doing exactly what you're saying, but in the last paragraphs there is something like I know it's difficult for you to come to this office but as a token of encouragement I'm offering this book. Jay: It's good. See all of you, I've got to say this again and god bless Mark Victor Hanson, he's a wonderful person, he did not address something I ask him to, it's not a negative criticism of him, it's a correction and amplification and addition that you've got to know. There's nobody in this room who shouldn't have a book that demonstrates you understand it, that demonstrates you are more expert, it demonstrates you're more empathic, it puts words into-you do not have to write. You can go to any journalistic student, grad student, have them write it for you, there's probably stuff online... Mac: (Unclear 07:03 track 3) obviously. Jay: You know the GSA, the Government Services Agency probably spends $7 billion a year and have cumulatively created so many public domain books and reports, you can do anything you want with. There's a lot of ways to do it. All you've got to do is do it. Wouldn't you agree Mac? Mac: Yes, you put your own spin on it, because a lot of the hard work is... Jay: It gives you credibility. It's a great (unclear 07:24 track 3). yeah, I want to hurry through. Audience4: My question is on money back guarantee specifically (unclear 07:31 track 3) money back guarantee. I did a workshop on how to build (unclear 07:34 track 3) list profit from it two months ago. Only 39 people were in the workshop,
videotaped it and prelaunched it two weeks ago to the first fifty of my high ticket item clients and I did a two program money back guarantee. One is 12 months, no questions asked, give your money back if you're not happy with the videos and audios. Second money back guarantee is if you don't profit 10 times what you paid for which is, they paid $500 for the video-audio set, I will double your money back. That's two program guarantees... Jay: Yeah, what's the question? Audience4: Now my question is this. I told them it's only for the first fifty of my paid clients, my special clients. In the online world selling ebooks and digital products, I know the longer the guarantee the better it is, less refunds almost nil. Mac: Yeah, that's true. Universal. Jay: It is true everywhere. The longer the guarantee, always better the refund because people forget about it, they're aren't as judgmental. The shorter the guarantee, the more magic and lightning in the bottle they expect to produce instantly. Don't you think Mac? Mac: Yes. You should... Audience4: So, I should do the same thing for the... Mac: You should, absolutely. You should (unclear 08:53 track 3) Jay: Does it deliver good value? Audience4: Absolutely. Jay: If they follow what you teach... Audience4: Mac is reviewing the web copy now. Jay: Okay, but I'm asking you. I'm not asking Mac. Audience4: I'm sorry. Jay: I'm asking you from the depths of your heart. If I bought it, would you sell that to your mother and would you be happy with that guarantee. Audience4: Absolutely Jay: Okay. Mac: You should be aware, this is a business question that a lifetime guarantee or warranty can be an impediment to sale of a business because it's an overhanging liability... Jay: Contingent liability () Mac: You may want to limit it at some point and that, if you ever...
Jay: Or, which is also where the flip is, but it can be great negotiating advantage since you know very little of it to come true. Take it as consideration, be (unclear 09:33 track 3) as long as they pay for it. Mac:That's right, it's negotiating Jay: It's great. Audience4:Thanks. Jay: You're welcome. Audience5: Could you maybe give me some flavor as to how guarantees work in professional services? Jay: What kind are they? Audience5: Support services, engineering services to the federal government. Mac: It's the same answer we gave (unclear 09:54 track 3). it's the character of, it's the performance record of your work, it's your preparation, it's your education, it's your track record and it's your approach and your personal style. Audience5: Okay, I got it. The guarantee, when I filter the word guarantee, I think of money back guarantee... Mac: Think of risk reversal. Jay: So stop...okay, I'm sorry. Mac: Go ahead. Jay: So let me ask you some questions. Is it all bid or is it-do they have to bid everything? Audience5: A lot of it is bid, but... Jay: Okay, who does their requests for proposal. Do you help-are you, let's talk about preemptive advantage. I'm so sorry David Carrington had to leave. Mac: Yeah. Jay: First thing is can you get involved and say look, I would love to do businesses with the government if we can add more value than any other supplier or choice of resource but right now let us start by helping you create the best RFP that addresses every area because we think because we understand it, we can help identify some areas you've never thought of and so you help them build the RFP because it shows and you build it more for their needs not yours because, and you also build it at a higher level of-two ways to do. Number one is build it for them and have it really show that you really thought through things they haven't. Number two is when you bid, bid back doing that or throw in for free other things that are complementary. They're going to have to get done to before, during, or after that have lower cost higher margins, whether you own it
or get it outside. That's another way to guarantee, but to guarantee it you can say three things. You can say, we'll do it in stages, we'll decide together minimum milestones, benchmarks, metrics, performance criteria that you will set that we will agree are reasonable and that we absolutely can, must achieve and if we do not, you will have three options. Number one: terminated at that point, replaces. Number two: terminated at that point and I have us refund the money if it's substandard. Number three, because you understand that it's not our fault, let us go forward and that's pretty powerful and you can table your risk. You might say “Well it blows, we're going to lose ten grand but if we go forward, we're going to get ten million.” I mean, does that help? Audience5: Got it. Yeah that allows us to wire the effort. Jay: Good, okay. Audience5: Thank you. Jay: You're welcome. Audience6: Hi Jay. Jay: Hello Audience6: I'm one of the 15% of the people here this weekend who happens to be female and women... Jay: Okay, can-can we make one point. I want to address something. I was told that some women said I didn't have women representatives. Let me tell you... Audience: Yes Jay: You want me to answer you or would you like to go on to the next question? Audience6: It's not the question. That's not my question. Jay: No no, I want to address something. Audience6: Okay. Jay: I really did two ways, Jackie Hall who you heard was going to be on the panels. She was going to give one of the very first presentations. She was going to be rolling around. Debra Neil, are you here? Is she still here? Edwin's wife, who runs a bunch of his retail businesses and just a killer killer competent person was going to be on the tactical panels and I was going to pull her up. We're not trying to be non-I mean, believe me, I love women. I love competent women. Audience6: We can tell. Jay: So I apologize but it's not that I'm trying to be sexist or discriminating. We actually had two and the first one had a change in base and we had to alter the second but it's not true, it's absolutely not true and as more and more women start coming, we'll have more and more because I've helped tons of-I mean
Patricia Seibel is a client of mine, she's a killer. I've got a lots of wonderful wonderful people who I'd love to have come but they can't all and the schedules don't all don't all accommodate as I learn more and more people who are great. If you guys have good ones, suggest to me. We are delighted, it's not anything negative, don't misunderstand or misinterpret our intentions excuse me, go ahead. Audience6: Thank you. I was saying I'm one of the 15% of the people here who happened to be women and I've coached hundreds of women over the past couple of years, men as well and every single one of the women to (unclear 00:156 track 4) are really repelled by the whole military tactics, crush the competition, rip their heads off, scorched earth marketing... Jay: It's only, let me give you... Audience6: Let me finish my question. Jay: You ask it to me. Audience6: On the side of the customer, it's like okay we love them, we nurture them, we think they're wonderful, we respect them, but then it's almost like schizophrenic, you know we rip their heads off and I don't get that. Something's missing there. Jay: Okay, so let me-can I try to first take on that or would you like to ? Mac: Well I don't want to go near her! (Audience laughs and applauds) Jay: No, I can't, I can't, I can't I can't, alright, stop, no no. Okay, let me give you a perspective. Audience6: He doesn't even like it. Jay: I'm going to ask a question now, Joseph you want to dive in some real treacherous waters with me? Joseph: I have always (Unclear 01:02 track 4) Jay: Okay, so you're a military person. Right? Joseph: Right. Jay: Okay. You are-basically you have troops, you have young men and women that are under your charge, right? Joseph: Right. Jay: You care about their well being, you care about them having the safest best possible, don't you? Joseph: It's the most important thing we do.
Jay: The most important thing in the world. You want to see them thrive, you want to see them go home to their families, their loved ones, their wives, their mothers, right. There's somebody out there threatening their well-being. Now do you want to basically be tacit and-basically pacifistic and not let that person who's threatening their well-being go on? Joseph: Hell no. Jay: Okay, he said, hell no. Now let me give you a different switch. I'm going to couple different visuals and you can embrace them or you can reject them. Okay. If a competitor who does not understand the strategy of preeminence, if the competitor who doesn't really care at the deepest seated heart of his or her being, culture, entity, organization, about a client or a prospect, if a competitor who renders substandard service value impact protection well-being experience gets that client, you've got to do everything in your power to avoid that from happening, not because you really want to kill that competitor because it deserves the client's best interests. You've got to stops them... Audience5: Totally with you on that. Jay: You've got to protect them, you've got to cut him off at the pass, you've got to do everything and maybe in the process you actually end up educating that competitor to come up and be a finer, better, more contributing person and make you have to rise to a higher level. Does that help you reconcile it? Audience5: Sure it does. Mac: Yeah, but you have a different set of-just for my education. Do you have a different set of metaphorical references for a competition? I mean, what would you use? Audience5: I think you attract the people that you're supposed to do business with and if you are really (unclear 03:14 track 4) and you've really got a good positioning, I mean, you're going to attract those people, you're going to draw them in and the ones that you're not supposed to have, you're not going to have. Jay: I'm going to tell you something that I really-other than ripping the heads off, the competition was a headline that I actually used long time ago. I'm going to tell you something. It made a million dollars. Now we wrote it because we did a private little discussion with a lot of entrepreneurs we found that deep down in the core of their heart, they didn't really want to see their competitors thrive. (Audience laughs) Jay: Now, would you agree Mac. Mac: I just remember reading a very-an interesting story about some of the-both in the 19th century the most dreaded event to happen in the west was for a white man to fall into the aboriginee's hands because the women would skin them alive, cook them alive, I'm not sure that women are always pacifistic and nurturing in the same role that you're suggesting, I think that's a romanticism
and since I'm taking it on, and I'm not sure that the notion that women are always mild, I can tell you, you're going to meet my wife... (Audience laughs) Mac: Who I wish was on this panel because she's very effective, but she works (unclear 04:38 track 4) I promise you. (Audience laughs) Mac: That's how I got so sure. Jay: Wait, he was a basketball player when I met him. (unclear 04:45 track 4) reminds me of Joan of arc. Mac: But that's how it's-i think the rest-are communications, I think your point is well taken. There are communications in metaphorical acceptances... Jay: You need not use that one. You need not use-you can come up with any references you want. Audience5: Jay, I just feel like you have a huge under served market because women are starting businesses at double the rate of men, but women to be only 15%... Jay: And we're interested in that... Audience5: ...like where's the chicks, you know. Jay: No, that's good and that's a very good suggestion, if you have great ways that you guys, you women guys can... (Audience laughs, applauds) Jay: ...can suggest to me how to access them better, I’m so open and you've got my mind set so come back and merit to me and humble me with enrichment and I’ll be very appreciative. Audience5: Okay, thank you Jay. (unclear 05:35 track 4): I just got one little comment for the little lady here. How about... Jay: Help me, but I’m right here, give it to me right here () (unclear 05:35 track 4): How about a two cosmetologist or shops... Jay: No, say it again. (unclear 05:35 track 4): How about one shop that caters to females, has only lipstick and the other shop has 1000 shades of lipsticks, all the rouge, all the eye markers, and all the other pampering that goes with it and you tell me that the
two of them won't be competitive? And which one had the most guns and ammunition? So just use some women metaphors. Jay: Yeah that's good. I like that. That's good. Audience6: Alright Jay, I'm in the wireless business (unclear 06:07 track 4). We don't get to hold our commission until 180 days after someone's on service. Jay: Right. Audience6: And the comment about guarantee what we do to prevent the loss of that is we followup three days... Jay: David's really good at this. David's got a really-he's got it down (unclear 06:24 track 4) go ahead. Audience6: And within five months, within five months, so we're continually making sure you're happy so that when it comes to the drop dead time we know if you're unhappy or not, so I think (unclear 00:03 track 5) guarantees is what we all would do is to not just throw it out there... Jay: (Unclear 00:006 track 5) but also build the action co-efficient to make sure that it works, it's true. Mac: People in big... Jay: (unclear 00:006 track 5) David, thanks a lot. Mac: People in big purchase businesses where there's a lot of buyers remorse engineer what's called post sale reassurance. Post sale reassurance. They give a gift, some extra bonus, some package of enduring value beyond the product or service delivered so that if there are questions about the product which-whether it performed or whether expectations were not quite met, the whole experience becomes satisfactory at least and it's something to think about in any relationship. Jay: That's really good. When we brought Christy,my wife a Jaguar convertible, they gave her really hot Jaguar jacket. Porsche sent, when we got a Porsche, they sent her something really neat. The Mercedes they send you stuff, I got specialized cups and specialized really neat, like a sports bike, you take to sporting events with Mercedes and my name on it. It's really impressive. I don't want to get rid of that. No but, it's smart, it's smart, lot of avenues here, you impact from this. Audience7: Jay and Mac, about a month ago, just couple of days after I decided to join this program, I made a website proposal to one of my perspective clients and that's our business. We do creative websites. He was wanting a fairly complex one with a pretty good size ecommerce back end. It was going to be something where he's going to launching a new wine. It was kind of an interesting project and I think we were very responsive on it from a marketing stand point and pricing I think was quite good, but towards the end of the
presentation he said, “Well, you know this all looks good, but I don't really have much experience in websites and I really don't know what they-how they should be priced and so I'll think about it a little bit and get back to you” and at a subsequent meeting a week later, he said, “Well, you know, we don't know maybe there's something cheaper out there.” He was commoditizing the whole process and there's an awful lot of people out there that indeed do-you can get a website from any high school kid and if people don't discriminate between something that's professionally done that has the marketing input and something that's just thrown together, it's a tough market to be in. But nontheless, I was figuring that if I could in someway engage the risk reversal process here, I might very well be able to close him. So, I've been wrestling with that ever since, over a month. Mac: My guess is, it's not risk reversal you need there. It's an educational cell. Why there's much more utility and value ultimately to you in your operation although a high school kid could put together a basic website and you have to say, differentiate and eliminate exactly the differences between the reliability, the design and click through rates, all the parameters that might be important, the utility, the scalability, all the factors that make a website substantial rather than merely functional. So that's... Jay: Only because I want to move a lot, but I agree with him. Mac: Testimonials once again, but one of the things that situation calls for is () sit down in a business like that without asking “Is this Yamaha your first, am I your first call?” because lot of times if sombodt says first call, say “Why don't you go shop around first. I'm not the lowest price. If you're looking for the lowest price, we do professional level work...” Jay: And keep in mind you don't want to be everything to everybody. You've got to be very clear on who you want and who you don't and like, we're very, we're pretty clear about turning off if we don't want to be here. Audience7: I understand that, that's a possibility. What I've wrestled with now and I think is risk reduction is perhaps spelling out exactly every single step of the process and how their interaction comes to play and give them some degree of control. Jay: Yeah that's good and you can also give them a bail option anytime during it, you can say there's 12 steps and in any step you'll always be notified, you can stop if you're not comfortable with. Audience7: That's a good idea. Thank you. Jay: Yeah, great. Mac: Think about the business risk on that though. Jay: Yeah. That's true, (unclear 04:43 track 5) yes.
Audience8: Yeah, over the past three days as I’ve been taking my copious notes, I’ve been trying to apply the philosophies to different scenarios. I can't really understand... Jay: Are there uncopious notes? (Audience laughs) Jay: I'm sorry. Audience8: So anyway, one of the scenario's would be if I had to apply for a job right? Rather than to continue what I'm doing now, so I was trying to let's say in a cover letter that instead of doing headlines and making bold claims, (unclear 05:09 track 5) cover letter, you have to do, be a little humble and you don't want to come across as too obnoxious. so... Jay: What's your question. Audience8: ...I guess I was curious if you had, to apply some of the ideas you were talking about and how you would apply to a jobs. Jay: Yeah, but this is about guarantees. Is that what you're talking about, you're talking about guarantees? Audience8: Well, I mean, yeah, sure, guarantees, what the work is going to be. Jay: I'll tell you what my son has done a lot of times. Brian has sat down and he said, “I'd like-I think I'm very well suited not just through my experiences and my knowledge, but my desire to add more value to the organization, but I don't know, I’d like to first before I ever do anything, could I ride around for a week at my expense with one of your sales people to see if it's the job what I think and whether I think I can add value. Can I ask them questions?” I mean, he starts with things that nobody else would have asked to do and it's an implied guarantee. I will invest forward in you before I ask you to even consider, even interview me if you like, but I'll give you-but here's why you should give me the chance to examine so I can decide in an objective well reasonable way whether I think make a big enough difference that you should even consider me as a serious candidate. Mac: Yeah, I've used the same approach with lots of people who have come to me and said how do I get by this, (unclear 06:31 track 5) I've got great credentials. I said, go in and say, look, you don't have to write it down, you say “Look, I know you have lots of candidates for this job and I know that I may look a little overqualified, under qualified, whatever, I said, let me make you a proposition. You put me on for a week, I work for nothing for the week. I go home Friday or Saturday or whatever when you close down and I don't come back until you call me” and often they, there's lot of reasons why (unclear 07:02 track 5) can't take you up on that liability, that sort of thing, but the willingness to show that you have stuff is a risk reversal in that kind of a situation. Jay: See one of the greatest things you can do, you...
Audience8: (unclear 00:10 track 6) alternative. Mac: Oh yeah, in a sense that's what Carl did. Yeah. Jay: Yeah, sure. Audience8: (unclear 00:15track 6) showed up. Jay: A lot of times it's very preemptive, if you invest forward in somebody else, it's like-we spend more on the pre-grounding materials for the home studies than they paid us. It's a calculated risk, you know I could lose $100 on-over it, but it's so outlandishly unprecedentedly wildly impressive don't you think? Mac: Yeah, I mean, at some point you have to get used to this numbers game and... Jay: Yeah and you quantify and you test it and you understand the one thing about all of this is you're not a drunken sailor. You're not profligate or promiscuous with guarantees. You predicate them on one of three things. History, empirical experience discounted very conservely so you know that whatever you say if it happens, like us, when we do anything with anybody we reserve 15% of the gross and we stick it in bank account and don't touch it and we don't touch it for 30, 60, 90 day guarantee, we don't touch it for 120 days because people aren't necessarily as bright enough to keep track counter wise and there's a lot of elements where we just have to go with it. We always want to know that our exposure is covered. We don't want to do something which if we are wrong and people come back and hit the guarantee, we can't deliver or it screws up our cash flow to where we're compromised. You shouldn't either, but if you're going to try to get a job and you can take one or two or three or four or five days and either apply yourself somewhere, spend-you'll get a cheap South West ticket or spend days driving around with somebody or when I was young and I wanted to do something I would ask if I could sit in their office and watch and I said, “I’m not competitive, I want to see if I can be good for your business. I would like to ask some questions at the end of the day or the end of the week” you do things that are so evident that you've got more sense of contribution, more sense of not-like, what you're going to do for me (unclear 02:25 track 6) says, removing to a free agent world and he's right. But you know what the great opportunity is there if you want to get a job? If everybody is saying “Hey I can go anywhere I want,” you're saying, “Hey, I am looking to be able to build a career. I'm looking not to see what you can do for me but where I can find greater value, where I can grow to be invaluable, where I can build myself such a presence that you can't help but promote and enrich me because I'm making such a contribution above and beyond everybody else. I don't know if that's possible. I am not asking for the job. I am not saying I'm even the right person, I'm saying I feel like I understand what I think you might want and need better than most people who would respond to any ad and I'd like the opportunity to see if my beliefs are right before I even asked to be formally interviewed by you.” That's pretty powerful isn't it? Aren't you glad that we recorded this?
Audience: Yes. Jay: Yeah, I am too. Audience8: Yeah, that's great (Audience applaud) Greg: My name is Greg (unclear 03:25 track 6) and I'm with (unclear 03:25 track 6) the background check company and I hope you'll forgive me and indulge me. I'm going to back up to the first one that you all were talking about. Mac: First? Greg: There wasn't time for questions there. Jay: On control? Greg: Yeah and implementation. Jay: Okay. Mac: Oh, sure. Greg: And the questions that I have in a very very small sales group that has functioned very very well as a team and they do not have the benefit of this seminar and you go back to that office with incredible ideas and a lot of things to implement and salespeople by nature I think are natural leaders and there could be a perceived threat from that and how would an individual manage a new idea in a teaming environment where they don't think it's broke. Mac: You'll have to sell it to them. Greg: That's the first fold. I mean, the second fold is between the grounding materials and volumes one, two and three, I think I've got more Jay Abraham material than my body weight and that's quite a bit. (Audience laughs) Mac: Well you want a tactic if you've got resistant people, I'm going to give you one. You go in and you say and they go, “How was the seminar?” and go “It was great, but I guess we'll probably never do any of this stuff, you know. This place is stuck in the mud.” and they go “What?” and you go (unclear 04:40 track 6) bother you know (unclear 04:40 track 6) tell you, really you'll be wasting your time.” They'll go “Oh really, tell me a little bit” and you go “Yeah, well...” I heard this used in a very similar company to ours but they have a more go ahead culture and you just... (Audience applauds) Mac: ...and you just make them want it a little bit. You have to make them want it a little bit. If you try and push it down their throat, they're going to resist it.
Jay: Are you talking about the sales force? Mac: He's talking about the sales force. You've got to make sales forces feel that they're at a disadvantage. Jay: (unclear 05:10 track 6) to make a lot more money... Greg: Right. Jay: And they wanted to work a lot less effort than you did. They wanted to have people buying a lot more each time than I think we really want. I mean I would use a lot of fun things like that but there's another way to do it and that is to, it's almost like the (unclear 05:33 track 6) about a picture is worth a thousand words. I think actions speak so much better than words. I think the mistake that most people make coming back from this when the rest of their organization hasn't been exposed is to try to shove it down their throats. There's three options that you can do. Number one: you can and if you like, I would make available at cost to you for your internal use either or there are two really neat interviews people have done of me, Tony did a really great interview of me, if you like Tony Robbins and his killer and I can tell you it's killer because I traded $125,000 speaking fee for him spending 9 hours of his time which is worth about (unclear 06:18 track 6), interviewing me took 9 hours of extraordinary stimulating conversation and we paid somebody $10,000 who was the definitive guy in audio production and editing to edit that down to seamless form. It's a pretty killer tape, number one. Number two, the same guy (unclear 06:35 track 6) you can take that and say “Listen to this and see if this excites you.” It excites about three quarters of the people. At the same time, you can figure out your own hierarchy of opportunities figuring out what easy simple applications you yourself can do within the confines of what you learn that'll have an absolute visual dramatic, tangible impact so you don't have to say a damn thing. It's like well you can say, “Guys, just do me a favor, try this-one of you try this this week and one of you try that and let's just see what happens and report back.” Does that make sense? Mac: Here's another one, if you want. What you do, is you've got a crew of salespeople. You take the lowest performer and you kind of take his aside. You say, “You've got nothing to lose here pal” (Audience laughs) Jay: That's great, that's great. Mac: “Why don't you work with me. You haven't made a sale in seven months and why don't you work with me on some of these techniques. I want to try them out. I don't want to give them to the rest of the guys.” You can go to the high producer too, but if you can all of a sudden turn that guy into a competitor, then you can get everybody to love it. Jay: That makes (unclear 07:47 track 6).
Greg: There's four of us, total. Jay: Who's got a sales force director directing this room. How many people? Not very many. Who should have a sales force in this room? A lot of you should. Okay, you really don't have a sales force any of them, Andy? That's amazing isn't it? Andy did you see that. Did you see the show of hands? Andy: Yes I did. Jay: What does that tell you? Andy: There's lot of work to be done. Jay: Lot of work to be done, miles to go before you sleep. I got a great approach for somebody who has a sales force but until we see that, maybe people just have had sore elbows too and can't raise them. I got a killer approach for somebody who's got enough salespeople that will just blow you away and I'll tell you that maybe at the end of the day if time allows. (unclear 08:34 track 6): I'd like to just locate the... Jay: Nobody's got a sales force, it would be a waste. (Unclear 08:37 track 6): wait, wait, wait, wait. Jay: Pardon. (Unclear 08:37 track 6): I had a, Jay, this side, the other piece, the materials, I don't believe there's one page in here of all this stuff that doesn't have value, but if I spend my time dedicated to digesting that, that's all I'll do for the next year. So what would you recommend is the best approach, because I don't want to miss one morsal, what would you recommend is the best approach to digest all this stuff. Jay: Three things. If I were you, did John do that-do his, are you here John? Does that mean you're not or you just basically have laryngitis. Where's everybody when you need them? They're supposed to be at the power panel if we were going to do it. Mac: You want to guess. Jay: Let's guess. Where could they be, watching the game, recruiting clients, no they couldn't be doing that, where could they be. Okay, here's a really cool concept. Make a list of number one, make a list of all the things you do in your business that your business is most depended on. Figure out, this is John's, I'm appropriating his-either told you about it or it's on one of the things we do, number one. You don't do it here, it's on tape, it's going to be on tape and you write it down. Figure out the three most important things your business is paying you to do, right after (unclear 00:50 track 7) on this other session we transcribed, number one. Figure out the seven or eight key elements in the doing all of those things and relatively speaking how well you perform or how
comfortable you are doing it and John's got a more benevolent criteria but I think for lack of a better approach, rank it between you're brilliantly good at it or you're almost imbecilic at it, okay. If you are anything below good at doing it, find someone else to do internal or external and get the time and the negative energy out of your system because going from terrible to lousy is pretty linear and it's pretty incremental. Going from good or great to brilliant is geometric, would you agree Mac. Mac: Let me just give you another insight. Jay: Okay go ahead. Mac: I can't tell you over the last 12 or 13 years since Jay's been doing programs that have evolved, how many people have come up to me at airports and that sort of things saying “Hi, saw you at one of Jay's do's” and I go “How are you doing and they go great.” They say, I say, “You putting any of it to work” and they go, “Well I only did one thing, I really have to apologize, I only did one thing” and I go “That's...well...” and they say, “But actually it made me several million dollars and I'm on my way to the (unclear 02:25 track 7),” you know, I mean, it happens all the time. People say that and they've done one or two things apologizing but they did what they've wanted to do so maybe your unconscious process is working a way at your top at your priority. I take Paul Lambert's point of view about priority, I only have one priority which is the thing on top of the list. Do your priority and work on your list. Jay: But let me give you-I want to finish, because I wasn't done. So I'm freeing up time. Mac: Sorry. Jay: No no, it's okay, I'm freeing up time, Mac and I will step on each other and we'll maybe disagree, but that's okay. So apply it three ways. So your first way, your freeing up all this time, I mean a lot of times, my neighbor, I have a beach house in Capistrano beach and it's very nice and my neighbors are ten times wealthier than I am and he's got a bunch of really neat neat restaurants up and down the California coast and we were talking one day about how he really got wealthy. He used to have one restaurant and he did everything and didn't make much money, then he decided, he'd rather have people doing the stuff that was 80% as good as him so he could free himself 100% of the time to be more strategic and implement and guide people. So now you've freed up a lot of time, now you've freed up a lot of time. You figure out what I said before. There's a very simple logic. You start by maximizing your current activities and then you multiply that by bringing more and new revenue streams and marketing approaches in, but the first thing you do is say, where are we now. Because that's the easiest, fastest leverage. What are-what's the velocity critical, what's the word, critical mass, right, in place, you've got stuff going on and you've got things happening. You've got salespeople in the field, you've got ads (unclear 04:10 track 7) and you've got stuff going on, then look at those and ask yourself, which one, not ones, which one, like parental principle, which one is the most
important of them all right now. Where's the 80-20, where's 80% of my business coming from? The salespeople, the ads, the trade shows, the repeat business and you start with where the most leverage is but you don't screw with most of it. We have a thousand clients and we see most of the money come from a repeat, you take maybe 100 of them and you test those and you can do anything with the 900. If it's all coming from new sales and you've got seven salespeople in the field. You take one or two of them, the weakest ones and you play with them a little bit while you keep the others there. Does this help give you a little bit of direction. Audience9: What are you saying, use them as reference books? Jay: Yeah. Audience9: Look for what you need within the volume? Jay: That's the first thing you do, all the thing-you go through it systematically, I mean if Jay Abraham was in your life or not, you're doing this stuff. It makes sense to do this everyday to get most out of it, doesn't it? The most current the most residual, first you've got to figure out what it is. Then you've got to figure out-then another thing is like, I can't remember because I did this section right before this weekend for another group like the day before, that I’d go through breaking the processes into sub processes for you. Did I explain an analogy likedid I talk about Citadel, Citadel, is a good example. I went to Citadel which is a radio chain. I did a deal with him and I had something like 40 salespeople in a room and we were trying to analyze what they were already doing because, they all-it was call coming from salespeople. I said, okay, let's break it down. But see all the sub-processes we could improve and figure out what the most impactful ones were. We realized it was-first of all, targeting good prospects. Then it was contacting, approaching. Then it was securing an appointment, then it was making a presentation, then it was following up with a proposal then it was closing the proposal then it was adding to the proposal, then it was sustaining the proposal, then other things that were very important were selling blends of advertising, the good time and the bad and then it was selling against better, more popular or better numbered or better performance media, then it was selling specific industries, then it was selling very profitable promotions, then it was selling certain-I mean it was all kinds of things. We figured up all out and then we value ranked the most important current, does that make sense. It's being pragmatic and we started with the one that had the most leverage. It's all about leverage, I mean, truthfully that question is so self evident if you stand back and you're pragmatic. Doesn't that make sense. I'm not trying to take you to task. I look at a lot of things I don't understand, but I look at things and say (unclear 06:48 track 7) and critical, but I say, doesn't that make sense, you don't go and start coming up with wild new things to-you can't, I mean you've got this stuff going on. You go to three trade shows a year, you send out 25 catalogs. How many people in this room send brochures or catalogs to people that call and request them or write and request them, raise your hands, stand up. Remaining
standing if with that catalog goes a true sales letter, remain standing if a great sales letter goes with that catalog. Audience: Does separately count? Jay: You've got a catalog and a great sales letters, sales letters are much better than catalog. Mac: Sales letter on top of the catalog. Jay: Sales letter and the catalog. Audience: (unclear 07:34 track 7) separate letter. Jay: No no, catalog with the sales letter with it. If you have a great sales letter with that catalog. So I’m going to ask you to tell me what it is, so if you're fooling us or yourself you're going to get nailed in a minute. (Audience laughs) Jay: Okay, so, truthfully, I'm not because I don't have time but you've got about a third, let me tell you something. Mac: You forgot his yard stick. Jay: See I'm talking about what you're doing right now. So you're sending catalogs out just by putting a sales letter with the catalog, that will usually improve sales by 30 to 300%. Why, I’ve got to do my visual okay, because I think this is so funny. Sending a catalog without a sales letter is like me going into your office, sit down and, you're a busy executive, right and that's your desk and walking in and worked so hard to get the appointment and so hard to know that you were going to give me your time, and you walk in, and using these (unclear 08:38 track 7) facial medicines... (Audience laughs) Jay: And there, there's you desk and I go, and then I go... (Audience laughs) Mac: Tell me about it. What are you bringing me, what's that on my desk? (Audience laughs) Mac: No, I don't want it, no what are you doing in my office? Jay: Okay, all a catalog is-I was trying to show leverage points. All the catalog is a summary of the benefits. The sales letter that accompanies that accompanies, it makes the case, it compels them, takes them through the process, organizes. This is one leverage point. And I probably, I haven’t done this for long, it's pretty easy to maybe I'm making it harder for you guys. You've got stuff going on right now whether Jay and
Jay Abraham Mastermind Marketing 32 Jay: You've got stuff going on right now whether Jay and Mac or (unclear 00:25) or Allen Coleman or (unclear 00:30) who's ever in your life, first thing is figure out what in the world it is in the macro, then break it down to all the sub elements that have leverage and start where you are at, but figure out which one or ones have more impact on you than anything else and going to be the easiest and the fastest, the safest, the least expensive to impact, then when you realize that, take a very small segment so if you are wrong, you don't screw yourself up. That's about as clear as I can be, isn't it? Mac: It's good. Jay: Does that help? Audience: Yes. Jay: Okay. Andy: Jay, can I add one piece? The manager has to have the conviction... Jay: Get a mike, get a mike. Mac: I hear you. Jay: That mike one? Yeah, add anything Andy. Andy: Is this one? Jay: Do you disagree with me? Andy: No, I want to add one piece. Jay: Okay he's adding a very significant piece. That was fun. Mac: Yeah. Andy: Is this on? Audience: Yes. Andy: (unclear 01:25) change the manager has to have a conviction that's going to work and you're going to have to expect resistance whether you educate him or you reverse psychology them into it, either ways it's going to work, but you have to have the conviction yourself that it's going to work and then you have to have the fortitude to weather the storm. And if you don't have that, don't try to implement it because it's going to be one more failure. Audience: (unclear 01:50) Andy: Yeah.
Mac: Do you mind if I take a little walk down memory lane. One of the stories I most enjoyed about Jay in his early days when he was selling on the road, he would sell to a lot of industrial companies and they often had a little anti-room that you would come into and they'd have a little tiny bank like window with a glass hole in it and you'd have to come in and talk to the receptionist and see and if they like you they'd buzz you in and if they didn't, you either sat there forever or just died there mummified... (Audience laughs) Mac: So Jay having selling industrial products was-came in and would sit there for hours and he finally got fed up with that one day and he went out and had an enormous, what, two by... Jay: Two by three laminated... Mac: Two by three laminated business card made up and he'd show up and they'd go, “What company are you representing?” and he'd pull out the enormous business card and he'd try to pass it through the window... (Audience laughs) Mac: And they'd go “Ah...it doesn't fit” and he goes, “Well maybe open the door” and that was so... (Audience laughs and applauds) Jay: No, I did do that, you're right, I did it. It's true. Where were we? Audience1: I'd like to locate the energy management guide that stood up yesterday. Jay: I'm sorry, I forgot. Is the energy management person here? The other person who is selling energy management, if you are, or... Audience1: Maybe he's the one that left. Jay: Find him? Maybe he was the one...I don't know, I don't want to be cynical or make any fun of anybody, it's not my nature. (Audience laughs) Audience2: Hi (unclear 03:35) Mac: That's my job! Audience2: Jay, when I started attending the protege I guess over a decade ago I made, we're talking before risk reversal I said on the educational materials we sell which go up to $10,000 usually around $2000 ticket, 100% money back guarantee, no questions asked, lifetime. With Master charge visa, we had a 0.03% return rate. This year I started working with two promoters that have a 30
day money back guarantee with conditions. Our return rate has gone up 33 times that to 1%. Mac: Yeah, sure. Audience2: And if that doesn't prove the point, I don't know what does. Jay: That's really powerful. Mac: That's great. That's really impressive, awesome. Audience2: Second point, when we talk about guarantees, guarantees get executed on when people are dissatisfied. Dissatisfaction is the distance between expectation and realization. If you're concerned about whether somebody's going to send back a guaranteed product, then you either have to make sure their expectations are more in line with reality or make sure that the results they receive are more in line with what you sell. If you do either one of those things or both those things, then you won't have to worry about your guarantees. Jay: Good, thank you. Audience3: Hey Jay, I started off on the way up here to come up and to help out the guy-who is the other web development guy, who had some problems with his clients and actually if you want to come talk to me or find me later I've got five phases of web development that can definitely help you with that client and prequalifying them along the way. And then on the way up a, listening to all the other speakers decided that well, I’ve changed what I wanted to ask and what I specifically wanted to know from you is I want to grow my business, obviously ten million and I want to start working with Fortune 500 companies, but I don't know how to get in the door to those Fortune 500 companies and if you were to represent, you and Mac represent a Fortune 500 company to me, and I'm doing web development, I will assume this applies to just about any other service. How do I get in the door? How do I get that in front of you besides getting to know the gate keeper, etc, but how do I get that to happen? Jay: Mac (unclear 05:42) Mac: Now, you're talking about theoretically getting in For...what-where are you located? Audience3: Well, yeah. Jay: What are you selling? Mac: Where are you located? Audience3: San Diego. Mac: What kind of websites do you do?
Audience3: Full eCommerce, you know, everything, like I said, it's a services industry but what I would like to know is what is the one way that I wouldn't offend the Fortune 500 companies. Mac: First of all, first thing you need to understand about Fortune 500 companies is that they're not monolithic. They're made up of tens if not dozens if not sometimes hundreds of divisions. So you start with an easier division than the central division, because, they're just, they're another, they're basically a small company working with the capital of a public company and they often make unilateral decisions. So you pick off something that somebody who can talk to you, who's probably being under served because all the hot money is going to the big part of the corporation, that's one way to think about it. Audience3: Right. Mac: The other is to ally yourself with a house parasite relation-house beneficiary relationship with somebody else who's already doing business with them and have them walk into the door as Jay said with their arm around your shoulder, say you know, if they're having problems with the site, helping them (unclear 07:00) lot of times, people get into disputes with their web developer... Jay: And I'd rather wait for that, for a different session. Mac: Right, but if that's-people, one of the great things I learned from Jay is like the lion is part of the strategy. Your optimum moment to sell anything is when people are having trouble with their current operation and so you come in and you take the throne out of the lion's paw and you've made a friend. If they're having a dispute with their current web developer internal team, something’s broken, that's your moment that you can come in and fix something and establish a relationship even if it's something small (unclear 07:39) I'll give you some direction on that. Audience3: Could I ask one followup question on that? Jay: Yeah, but you can't until everyone else has gone through. Audience3: Okay. Jay: Okay. Audience3: Alright. Audience4: I really came up here because I heard a fellow speak about the fact that he had a problem with price, with people asking for, explaining that his price was too high and maybe there was something cheaper. Our particular company is in a narrow market where really there's only few people in the industry and we're the recognized leaders world wide. We're also the highest priced. And so price is the one thing that we battle with on a continuous basis and I have developed an answer or an explanation and I simply ask the customer if I can give them my explanation of expensive or inexpensive. An expensive is that goods, service or item that no matter how cheap the price, fails to perform the
function for which it was purchased. For the moment it fails, it has become horribly expensive. Inexpensive is that goods, service or article that performs effectively, exactly and precisely what it was purchased for, for when it does that, price is no longer a consideration (Audience applauds) Jay: Good. Mac: One thing to ponder is that price leaders, if you want to call them that, the lowest priced product in a marketplace is rarely the market category top product or service. Usually it's a relatively high priced product like when you look at consumer goods Tide and Crest and some of the others are actually category leaders because their perception is value and reliability, not just price. If price were the determinant, everybody would be driving KIA's. We used to say (unclear 01:50 track 2) Jay: I want to make an interrupted question. What's the theme of this whole event? (unclear 02:00 track 2) it could be Audience: Marketing. Jay: Marketing? But what's it getting-it's getting the maximum upside, it's all about getting leverage and we're using all kinds of thematic ways to demonstrate the evidence to you so it'll be, it'll haunt you positively forever, aren’t' we? So what's wrong with this picture in this room? What do you think is wrong with the picture in this room Mac? Audience: The lights. Jay: Oh lights aren't on, so like in our brain. I wonder if there's a difference if the lights go up. You think there will be Mac? Audience: The lights are off the pictures. Jay: Oh the lights are off the pictures? Mac: The lights are off. Jay: I didn't notice that. Did you you notice that? Mac: The lights are... Jay: Maybe we should turn the lights on and see if it makes a difference. Turn the light switch, Rick, turn the lights on. Mac: (laughs) Wow! Jay: Amazing. Oh and it looks different doesn't it Mac? Mac: It really does. Jay: Think like life and marketing and possibilities maybe.
Mac: You mean shining a light on something? Jay: I don't know. (Audience laughs) Jay: I don't know grasshopper. Mac: You think that makes... (Audience laughs) Jay: Okay, next question. Audience5: I wanted to share with everybody, especially the women here with the testosterone free marketing in a way that there's a little bit-I have a background in martial arts and I was in the army too myself and I have a way that I incorporate that has helped and has helped me to really look at, not in a combat format but maybe in a softer or so way, hard to approach marketing in a way that's not going to be very, you know, using the words, war, (unclear 03:40 track 2) okay. So what it is is, you want to have, all of us, we don't have to really, have to be conscious that we are unique human beings, whatever sector or industry you are, you are unique so your product, your services, yourself should come across your clients with self confidence because if you know your product, you know the service, you know how you want to help your client, customer reach their goals and better their lives or their business, then you should really not have any blockage, whether it's competitive. Competition sometimes, it is a technique that other corporations or other people can put in your (unclear 04:25 track 2) for you to lose focus in your company. In writing, for example, false press releases of products or services that they're going to come out just to shift you off balance, if you know martial arts, or anywhere (unclear 04:40 track 2) opponent with self, with his own strength and so you want to really just keep focusing on what your company is doing and what your values and missions in your companies are and move along. Don't worry about the competition, you know. We're all here to share in an immense universal intelligence that we can tap and help embrace the world. Jay: Alright, thanks. Andre: My name is Andre. I live in Brazil. My question is if I sell knowledge, how do you best apply risk reversal? Because, okay, once you sell the meat... Jay: What kind of knowledge do you sell? Andre: Some techniques could be for creativity, thinking, whatever. Jay: Okay, so what's your fear? Somebody's going to steal them and not pay you? Andre: Yeah, basically what happens...
Jay: That you would deal with unethical people who are going to zap your brain for all your worth and going to throw you in the gutter after they've had their intellectual way with you? (Audience laughs) Andre: Basically it happens sometimes... Jay: I'm having fun. Help me here. (Unclear 05:45 track 2) the evening. Start again. So it's not a problem. Tell me who you sell it to and how you sell it. Andre: Well I don't sell yet. I'm just... Jay: Okay, what would you be selling and who would you be selling it to? Andre: Business. Jay: Okay, what is it? You've got to help us out here. What is it? It is what? Is it a book, is it a seminar, is it a... Andre: Seminars, seminars, seminars... Jay: What is the seminar going to teach them to do? Andre: Help improve their performance. Jay: So, little clear please. Andre: Help improve their performance. Jay: In what areas? Andre: Business. Jay: Too general. Andre: Personal, could be business, could be professional. Jay: Can you prove it's going to help them? Can you quantify, have you used the techniques you're going to sell in your own past endeavors? Andre: No. Jay: How do you know it's going to help them? Can you demonstrate to me, if I were the hard nose (unclear 00:32 track 3) buyer that you're going to come to, how in the world can you demonstrate and validate to me that your seminar could and would and does in fact produce whatever productivity...what's the minimum (unclear 00:43 track 3) going to get me? Andre: From my experience and from the experience of other people. Jay: Okay, so you can quantify it? Andre: Yeah.
Jay: You can say, okay, I guarantee you within six months after you use this, you're going to get at least to 20% greater productivity from every person you put it through or... Mac: If you follow, if you follow... Jay: If you follow through, mutual. The answer to his question is mutual performance. Mac: it's right, it's right there. Jay: There's no reason, there's no law that says you have to assume every piece of risk without reasonably requesting that the client do the minimal acceptable, measurable thinking and say, and if you don't do it when I prescribe and recommend, they're reasonable, they're-you read to them in advance, I can't possibly be held responsible because you've aberrated the dynamics. Mac: But that's a, he means to say... Andre: You have to make it (unclear 01:29 track 3) Mac: You say the risk reversal and that if you make your ten calls a day, if you... Jay: If you implement the system then I'll teach you over the next 90 days, document it, make sure everyone you put the program forth does four little incantations, does the five little this's and that's, I will absolutely guarantee a minimum of 20% or whatever it is or I'll give you a great one, what we've done, or pro-rate the difference up to 100%. Mac: That's how you do it. Andre: Thank you. Jay: You're welcome. Two more and then we're going to unfortunately have to stop because we're going to change the game. Hey Gill, do a lot of people come up to you after John said, go see Gill. Gill: Yes. Jay: What did you tell them? Gill: I said, it's good. Jay: What's good? Gill: The experience with John. Jay: That wasn't what he was supposed to have them tell you about it. He was supposed to not be self serving. He was supposed to be basically, having you tell how you built your business. Gill: That's what we talked about.
Jay: Okay, good. It was not supposed to be a self serving endeavor. How's things going? Gill: They're going very well and I do have a question on the risk reversal. About 15 years ago, (unclear 02:45 track 3) introduced to Jay and one of the things that really grabbed me was the risk reversal. I call taking the risk off of the customer and we retail high end ceiling fans and that's our only specialty. That's the only thing we sell and we're in somewhat of a commodity, what we are is in a commodity business and what happens is, it's become a core value. I've always believed, in fact that becomes an interview question, many different ways when we hire people how they feel about returning money to people when you know it's their fault, when you know they have no real reason to return it. However what's happening in the last two years is our return rate which has been running about 2% to 4%, 2% to 3% now has jumped up to 5% to 7% and the other phenomenon seems to be happening... Jay: Yeah, what do you attribute that to? I can give you a couple of suggestions. Gill: I'm really not sure, other than we've increased our business. Jay: Well you have stretch passed, I mean, as I told you there is one phenomenon, don't you agree Mac, the broader out you go, the more marginal people there are and you don't all have the same attribute. We go in the outside market and run ads, they are not going to have the same-if this whole room had 650 people who came from a regular ad, not from endorsements or my own list, we wouldn't have-10 people left, we would have had probably 62, don't you think? Mac: Corollary is a totally different business if you're in the real estate rental business, and you have zero vacancies, what it means, is your price is too low. Jay: Yeah, you're not charging enough or you're not demanding a high enough quality tenant and you're not allowing-you know, you're not being ruthless enough when they don't pay on time. Gill: Well one of the things that's happening is that, this is a phenomenon I've just seen this summer is people are shopping after they purchase either at other stores or on the internet, they go home and then they find the price and they come back and either return the product because they bought it from somewhere else... Jay:Oh, they want you to reduce the price. Gill: ...or they buy (unclear 04:50 track 3) Mac: It's hard (unclear 04:52 track 3) trouble... Jay: What's your belief on-if they want you to reduce the price, what do you normally do? Gill: We reduce the price.
Mac: But Gill, do they come to you and say before they pack the fan, take the fan down and walk it in? Gill: Sometimes they do this before they've installed the thing. Mac: Before they have installed it. Jay: How do they...well give us the scenario. So they take it home though? Gill: Right, they'll say buy three, four, or five fans, they take it home and then three or four days later or even a couple of weeks later they'll return it. Mac: Why don't you just promise if they call you up, start bringing it in you'll install it for nothing if they keep it? Jay: How much the amount of money and say give us the average I mean, let's look at-Mac's got a great point. Be creative, innovative in looking what they're saying. How much money is normally involved in the adjustment? Gill: It could be anywhere from $50 to $300-$400 depending on how many fans they've got. Jay: Okay, what does it cost to install? Gill: That could run $100 to $200. Mac: How much does it cost you? How much does it cost you? Jay: But you say basically we'll give you $35 towards installation and let them basically have an installation certificate they can use. Mac: But you have installers don't you? Gill: We contracted that. Jay: What do you have to pay, somebody just said that they cost $50 to $150 or $200 or $300? Mac: His cost probably isn't that high. He probably has some 100% margin on it, right? Gill: No. Not in installation, we don't make any money. Jay: Please pass this through. Mac: Well there goes that. Jay: What's the-so of 7% or whatever it is, are they representative of mostly as almost 100% of those two categories? They either bring them back or they they want to knock down the price? Gill: Correct. Some of it is legitimate, but usually they all say things like, our electrician says we couldn't use it and then we try to say well our electrician's can install it for you...
Jay: And they'll say. Gill: No. Then you know it's an excuse not and objection or they'll just say can't... Jay: That could mean one or two things. Mac: Have you made a shift in your business. I remember back when you first came, you did installation. Gill: Did what? Mac: You did installation. Jay: I don't think he ever did it. Gill: Well we did it, we used referrals. Jay: (unclear 00:04 track 4) sub contract. Mac: But you had more control over installation? Gill: Probably. Mac: Yeah, well maybe there's a... Jay: I would think pre-framing might be really interesting, Mac, you know, you might want to try pre-framing for some of the other services. You might say “Are you going to install this yourself or are you going to need it installed?” And they're going to say, “We're going to need it installed” and you might say “We've got this service, why don't you let us go ahead and set it all up” and why don't you right there and then confirm an installation date and put more ownness on them so it's harder for them to get out of it. Say, “We've set it up, here's the number,” you know and maybe set up-so there's like two things, they've got to bring it back, they've got to cancel. That all of a sudden doubles the process problem. Number two, you can say “Look, if you are going to install it yourself we've got a full-time person. When you can install, we'll set up and appointment and he'll walk you through it and set an appointment.” The more you commit people, it's unethical, the more you commit them to confirm their purchase obligation with a post purchase action, the harder it is normally for them to bail out of them, don't you agree? Mac: Yeah, that's good. I think that's... Gill: But the phenomenon of the increase returns is not out of line. Jay: I think we're done. Mac: I'm sorry? Gill: The phenomenon of the...
Jay: (unclear 01:14 track 4) industry is fine. So you just-but-so what's the question? We were confused with the question. Gill: If my sales are increasing this much and my returns are increasing this much, that's still within the bounds of, because I do know I make extra sales because of it. Mac: Are you generally better off. Jay: What's the question? I'm confused. Gill: It seems like it's going too high. Jay: Okay, here's what I said. That's a factor, that's an impact factor (unclear 00:04 track 4) your refunds, your broken sales, your unwinds, your returns. Try a couple of different things and see if they make any difference. Have you tried any other, have you tried positioning differently at the point of sale? Gill: Yes. Jay: And did it make any difference? Gill: It's hard to tell because we sell so many and... Jay: Well maybe you try it with a certain salesperson and see if his or her sales unwind, and maybe just try for a certain week and see if those sales unwind, you know for certain number of sales and see statistically, do something. I mean, it's not a perfect world. Mac: Maybe we should talk to Gill one-on-one and we could have two or three other people... Jay: Yeah we could. We're going to do you guys and then we're going to stop. Audience6: I have one question I wanted to ask, I don't know how to ask it tactfully but let me ask it anyway. If Dr Deming was instrumental in producing the Japanese economic miracle in the 60s and 70s, can Jay Abraham trigger and stage a marketing revolution in Japan in the 21st century? Jay: You know, that's an interesting challenge. I'm really, you know, I don't think anybody even yet and I've not held it back in your book. I actually gave you an incredible process we're working on process improvement with salespeople and I've shared it pretty openly with everybody Mac and almost nobody does it, you know that? What do you think that means? Mac: It's hard. Jay: I don't think it's hard. I think they just don't... (Audience laughs) Jay: I don't think it's...
Mac: No, I mean, I think salespeople can be hard so-but your process works-we have to make a commitment and I think that a lot of time, basically... Jay: Yeah, but it would be fun to try. I don't know, is that where you're from? Are you from Japan. Audience6: Yes. Jay: I would love to try, if you want to talk about it, you know, I would love to embrace it. Couple of people have suggested that it would be a very appropriate thing to try to teach to Japanese companies because they're not very mindful of that and I would love the opportunity if you can facilitate it, I'd be very open. Mac: Though the underlying problem is that sales forces, if it doesn't work, it's because sales forces often hold their businesses captive and that people are reluctant to rock the boat, so they're very resistant to change I don't know where Andy is-and so because you don't have a parthenon of leads, generations and other selling sources, the salespeople often hold the business hostage and so it can be very difficult to implement-is that...Andy? Did you hear what I said? Andy: True, it's so true. Mac: That's well and that's why it can be hard. You have to make a commitment to having multiple channels of income and that lets you control your overall business better, not be held hostage to anyone one process. Jay: Thanks. Audience7: Hi, my name is (unclear 04:31 track 4). We sell two different products. One is a high end distribution supply chain software that has a very high or I should say long selling... Jay: (unclear 04:40 track 4) price plan. Audience7: In the mid-range where 150 up to about three quarters of a million. Jay: What size business would buy it? Audience7: 5 million up to 200 million. Jay: Okay and what's the other product? Audience7: The other product is a CRM product which is lower price point, but we need to go to a shorter sales cycle. Jay: Okay. Audience7: What I'm trying to determine is we've never been able to provide a money back guarantee because we can't control what they're going to do. In other words, we can't control whether they're going to have the right people on the task, whether they're going to give... Jay: But you can establish sequential criteria at different intervals, can't you?
Audience7: Yes. Mac: But maybe it isn't a money back guarantee that's the concern. Jay: Maybe it's. Mac: What's the equipment again? Jay: One's a CRM and one's, what's the other... Mac: CRM package or a system? Audience7: CRM package. Mac: You have to ask what's the major threshold concern that is raising a barrier to commitment. If it isn't the money back guarantee, we talked about this at the outset. It's not getting the money back for your product, it's not ruining their business in the process. Audience7: So if we provide risk reversal and we say we'll set it up, we'll give you a try before you buy methodology, we'll take the risk and after 90 days... Jay: There's another way to do risk reversal and that's... Mac: And you'll restore their business, you'll put their old system back just like it was... Jay: What's the hard cost of doing it to you? Audience7: We could try that out with the CRM. Jay: And what's the hard cost? Audience7: Maybe 10,000 to us. Jay: And what's the upside if... Audience7: It's huge. Jay: So, and no one else would probably do that. Do many of your competitors offer that? Audience7: No. Jay: If you're the only one to offer that and it's a quality ethical company with established game rules and the rules say “Hey, are there any catch”-three simple stipulations, I think you'll agree, they're all quite reasonable. Number one, you've got to do census. Number two, you know, we've got to be able to measure. Number three, we agree going in on what matrix or milestones or benchmarks (unclear 01:05 track 5) as long as you've done your part based on a simple agreement, hey it's out there and your money is back in your hand or we'll put in an Escrow account and won't even draw on it.
Mac: Can I give you another way to look at this, risk reversal? A friend of mine is in the heavy electrical contracting business. He went out to buy a new backhoe and he looked at CAT product and what's the Japanese for it? Audience: Komatsu Mac: Komatsu, and he looked at a Komatsu and he went to Caterpillar and said, “What's the service breakdown, parts replacement situation, guarantee deposits? They said “Oh well, we'll have your any part in 24 hours and he said (unclear 01:50 track 5) you'll be there, you'll be back working 24 hours. He went to Komatsu and he said “What's the parts and breakdown situation?” And he said”What do you do when something breaks down?” He said “What's your situation?” He said, “We don't know,” he says “What do you mean you don't know?” He said, “We've never had a breakdown!” (Audience laughs) Mac: There are different levels of guarantee and risk reversal so think about post-educating on the front end that it will work and the you're planning is so impeccable that it will work without a hitch is more important and documenting your process and it maybe more important than trying to sweep up the mess afterwards. Audience7: Real quickly. I've worked with a couple of companies about their CRM and talked to them about it. The problem that we have talked to them and the reluctance they have to change is actually the amount of time and effort it's going to take to convert over to a new system and what happens if it doesn't work because there isn't a link between one software and the other software, if it doesn't work, what's going to happen is we're going to have to go through all the pain to bring it back to the industrial system. Jay: So Andy you probably have more than two answers for that don't you really, or do you? Andy: Not the conversion. Jay: Not just conversions, but (unclear 03:15 track 5) too. Mac: But the sales-overcoming that objection. Overcoming that objection. Jay: Do you have a mike? Mac: There's one right on this table. Jay: On the table Andy: Couldn't get it to work. Mac: Well here's one. Andy: Yeah, is this on? Okay, because I was thinking about that as I was listening to this and it's funny, are you selling the software and installing it both?
Audience7: Yes. Andy: Okay, because I find very few software companies who are willing to do the risk reversal. Now, there's a reason for that, I think there's two reasons. The excuse they give me is because accounting rules have been changed a year, year and a half ago, there's a revenue recognition issue and they want to differ the recognition of the revenue because everything's got to be in place and accepted so that differs their cash for 90 days. Now if you're a public company that's a problem; if you're private, that shouldn't be such an issue. So there's other things you could do. You could agree to doing certain steps or you could do what Jay always talks about is “Hey if we can show you how to increase your revenues by x amount of dollars, for every dollar we give you, how much would you give us back?” because for example, I've got a friend who sells for SAP and she has a-one of her clients is a large drug store chain and she says, they've got this stuff in place and that's CRM that they sell, they've got, the CRM is in place and she says “What's killing me is they're not using it the way they could be using it and if they were using it this way or this way or this, they would make millions more.” So I don't know if that's given any ideas or not. Audience7: We have the success stories. We have tangible results, we know that we can help you make money, save money, increase the value of the company, that has already been accomplished. What I'm trying to determine is if there's a way-we've now gone browser based for CRM. What I’m trying to determine is if there's a way for us to take the risk, let them try. Jay: (Unclear 05:19 track 5) let me ask a silly question. Who's sales training do you use right now? Who's trained you so that we know you're doing this right, just so we're sure. Audience7: Solution selling programs Jay: Is that good. (unclear 05:32 track 5), I'm serious, is it good? Audience7: I've been to Tony Robbins... Andy: But, hold on a second, how many salespeople are on your team? Audience7: 3 Andy: 3, okay, so you're all using the same methodology? Audience7: Yes. Andy: Really yes? Audience7: I probably am more successful than a couple of the others, but yeah. Andy: Okay, let's say you use solution selling and you've got nine boxes, so if I called your people in one at a time and I said, draw down on a piece of paper and label the steps, they'd all give me the same answer?
Jay: And you monitor and you verify this too, correct? Audience7: We do not monitor-we're not monitoring well. Andy: Okay, so they're all doing their own thing. Jay: And you're not really sure, when how... Andy: I don't mean that as a bad... Audience7: No no no, it's okay. That's why I'm here. Jay: I mean a lot of times, just by doing a little forensic examination, you go, “Oops!” And we're talking about leverage, it may not be the answer in totality but if it gets you one more $150,000 transaction a quarter just to go back to the basics or figure out what about all three or maybe that isn't the right one anymore or maybe the person... Audience7: I think I'm trying to leap. I'm trying to take the referral issue, the risk reverse issue... Jay: I know, we're just trying to say it's not a perfect world. We're sort of trying to get at it and we're saying if we get you a 20% improvement, we don't get you the 200 you want but we'll get you 7 other 20% improvements, we'll still get you what you want. Mac: Have you tried changing your rep, the rep on the account? (Unclear 06:54 track 5) team selling? Jay: The rep and the (unclear 06:56 track 5) Mac: Have you tried bringing in the president of your company? Audience7: We do a male, female sell now which seems to work well. Mac: That's what you're using? Audience7: I'm still trying to make them faster and I'm trying to triple the transactions for one person. Mac: Okay, that's good. Audience7: So, it's okay, I mean, we're on the right track. Thank you. Jay: Only because we've got to get through. We're not going to abandon you because we're here for all, but I got to get through some other stuff. Audience7: Got it. Mac: The biggest risk reversal you can do in a lot of selling these days, especially business to business is bring in the CEO to close the sell, even (unclear 07:26 track 5) Jay: And here's my personal number...
Mac: He or she guarantees it. Their presence says the whole force of the company is behind it. It's not just the salesmen talking. Jay: This is not a joke, we've gotten a lot of business owners to put a special line in their home, here's my personal number 24/7. You can turn it off and not answer it, if you're gone you're out, I mean, serious, but it's a very comforting thought. I mean, he's right, a lot of these things you can try and you've got to test it because seemingly elegantly simple things can transform or turn the tables...get quickly the last two. Audience8: Yeah, the guy who didn't do anything this year and grew his business, didn't always not do anything, if you want to call the Fortune 500 corporate yellow book, it's $300 a year. They update it quarterly and get the phone numbers and call them and you can dummy up at the receptionist and say “Oh, help me out!” because they will. My question though on a risk reversal, it's a fixed cost, I send it to you but you're going to take my cell phone overseas and you can spend a dollar or you could spend $50,000. if I say to you take this... Jay: Do I get credit with you? Do I get credit with you? Unlimited? Audience8: Well if I'm going to do a risk reversal and send you the phone and say use it, try it and I won't charge you for a month, you could not use it at all. Mac: But that's not... Jay: No, but you could say use $100, what's your hard cost? Audience8: $20. Jay: Okay you can say use-and what's equivalent-$20 worth of cost translates to how much usage? Audience8: $50. Jay: Okay. Audience8: Well, I mean, that's the phone and the subscription (unclear 00:50 track 6) Jay: Yeah, but you could say, “Go ahead, try use $50 worth. If it isn't everything I say it is, send it back and you owe me nothing.” Does that help. Audience8: Yes Jay: You're welcome. Audience9: I have a product that can be used promotionally and they can personalize it and I'm wondering how to apply risk reversal. Jay: What is it? Audience9: They're inspirational affirmation cards.
Jay: How would they use it? What are the ways they would use it real quick? Audience9: They would give it to customers, clients... Jay: Or they would use it themselves? Audience9: They would use it themselves. They would give it as... Jay: So, here's the thing... Audience9: Okay. Jay: You've got to figure an outcome that's as measurable and translatable to their desired results, no yours. You could say “Try 100 of these, give these to 100 people in your sales introductory or just to break the ice and say the following and measure and if you don't see an improvement in, and you fill in the blank, and the number of people who say yes, I'll let you talk to me or in the number of sales you close in the size that you-whatever you want to say, I'll give you back your money, try 10 or 20 or 30. what's it really cost you to sell 10 or 20 o 30?” What's the hard cost? Audience9: Well if they're personalized? Jay: Well generalize to start with. Audience9: Oh well, like $3. Jay: Okay so you try risking, if you find potential clients who could buy 300 of them a week or month, it's a pretty little risk, isn't it. Does that help? Audience9: Yeah, actually I was thinking about people who want a few thousand or more. Mac: You might, we might give it... Jay: It doesn't matter, you let them start with a few... Audience9: Let them start with a... Mac: Given the nature of your product, you might want to have a satisfaction, a soft warrant, a soft risk reversal on feelings, not quantitative that your morals better, their communications improves and you... Jay: Yeah like what people... yeah that right. Internally right. Your people are getting along better there are less complaints, there's less downtime, there's less sick days, but just figure what it is you want to translate it to and then if you're worried about selling 3000 (unclear 02:50 track 6) back and say, why don't you apply it to one department or to five drivers or to one sales force and don't be afraid. A lot of us want the instant gratification but if you're-you need to know whether your belief in your product and it's performance is real or surreal and the best way to find is put it to the acid test. Let somebody test drive it around the block in a limited test, testing is the greatest arena, I mean you can be a
marketing genius, you can always be the greatest sales achiever in the world if you test-a lot of assumptions, don't discriminate, if it doesn't work then you know that-maybe there's certain things you can absolutely guarantee that'll happen and certain things that won't and unless you know it's certain, you may love your cards but they may-great morale, no result. No (unclear 03:38 track 6) improvement but greater sales (unclear 03:40 track 6) less sick day, I don't know, you know? You know? Do you know what the impact is going to be in different people? Audience9: Somewhat. Jay: But not totally? Audience9: No, not... Jay: Then why don't you use it as a beta test and take it out and do it. Let people try 100 of them in our little application, say try one. Our offer's very simple. Audience9: Okay. Jay: Try 100, here's the criteria, measure on this this and this, I like that. Okay, thanks. Audience9: Okay, come see me later. Alright. Jay: Here's what we're going to do. We got Michelle or Rick around, come here, I just need to know whether 9 is hard or soft on a time. Everybody who said they found at least one way to make out really well on the internet or with email to their company whether it's approach, whether it's a way of using it, but it's really working and making a lot of difference or money for them, go to a mike. Now, you've all rose earlier, remember I said we're going to do an exercise? Com on. I said, anybody got at least one approach, figure out what the one approach is that you've figured out that is really working like gangbusters, whether it's making money or getting you-penetrating more markets or getting you more prospects or cutting your transactional cost or getting greater connectivity with your market or any of the above, pick out the one, not multiples, if you've got multiples, the one biggest element because I promised you all you'd learn about the internet quickly, we're going to do this really fast, take notes and share what it is, how it works and what's the lesson for everyone else, okay? Staff: Yeah. Jay: Are you ready? Staff: Yeah. Jay: Okay, get your pens out, go! Staff: Direct mail,you've got five to ten seconds to grab the attention of the person who's on your side so you need a dramatic headline that addresses their
pain. And then with the least possible amount of linkage, they read all the way down and click on order. Jay: Okay. Audience10: I offer lots of free information and services and updates and I simply add a signature file at the end of my emails and that's all I do. The rest of it is just simply non solicit... Jay: So what should everybody do? Shut the door please. Carl can ask if the people outside either come in or move it somewhere else? Audience10: I'll say that again, because it sounds like some people didn't hear it. Jay: I'm sorry, go ahead please. Audience10: I offer information basically updates, news, I have a newsletter with about 2500 members, investors and I simply add a signature file at the end of my email. I don't actually promote anything particular in the email, I might give an update or information, but I won't actually be soliciting anything normally and I actually had to close it-too many people were wanting to get in so I have had no problem sending up to 100 emails a month and some people will email me if I miss a couple of days and say “Where are you, we miss you.” Jay: And what are your emails focused on? Audience10: Simply updates on various investments or update on some news issue. Jay: So what's the lesson to everybody else? Audience10: The lesson is give something free that let's you be your front end... Jay: That has value to the other... Audience10: It has a lot of value, give something free that has a lot of value and build a trust-a strong trust relationship with your people and add a signature file that... Jay: You all know what a signature file is? Audience: No. Jay: Would you explain a signature file? Audience10: A signature file is simply some links like for example, mine would say regards. Wayne Nash and some information (unclear 01:20 track 7) Mac: And your contact and your company information... Audience10: Contact, company information, yeah.
Mac: Your USP and probably a hot link to your site, right? Audience10: Right, exactly. Actually some, I've got about five or six links now, I have kind of a USP... Mac: A mail to... Audience10: ...and a link, USP, link, USP, link and then that's it. Jay: Okay, good, thanks. Audience11: We're seduction.com. You don't get laid, we don't get paid. What we do is... (Audience laughs) Audience11: That's our guarantee. What we do is we go onto use net groups that are devoted to these topics related to what we sell, we just post in the use net groups and put our SIC file and the SIC file has the guarantee, you don't get laid, we don't get paid and you drive a lot of traffic for free right to your site. Jay: I'm not commenting...that's an impressive way of doing it. (Audience laughs) Audience12: I have a mortgage and real estate company. I've a website that I drive traffic from a radio program that I air daily, generates a significant amount of traffic. Now what I used to do is drive the traffic through the company url which is advantage.com but when it was tough to save plus it was the company name, so then I changed it, because I'm focusing on information, I have a tremendous amount of information about free reports so was always driving people to the website for free reports on this, talk about something specific and an action item, driving them to the website, 150 pages of different reports on the website, drives of 1500 unique visitors a day, it's just this regional market, a million hits a month and drives about two and a half million in gross commissions. Jay: Great. Audience13: (Unclear 03:18 track 7) with betterwebsite.com. I write a lot of articles that I share with other easing publishers and other websites and at the bottom of each of them instead of sending them back to a website, I'll always send them to an auto responder. Jay: And why do you do that? Audience13: Because then you get their email and you know how that they got there. So you offer more information and send them to a specific email that triggers the auto responder. Jay: Now have you built a big email list?
Audience13: Yes I have. Jay: How big? Audience13: Over 10,000 now. Jay: Okay that's great, okay thanks. Alec: Alec Thomas. Excuse me. pmgroup.com. Jay: Someone shut the door please for me? Alec: I know of 21-pmgroup.com, I know of 21 critical issues but I'm going to talk about one that all of us can do and that is when you set up your email account, if you have a domain or website, make sure you set up something that gives you a catch all mailbox. What that does, it allows anything going to, in my case, pmgroup.com, to get to a mailbox, my mailbox in particular and what happens then is you can give out a different email address to every marketing piece that you use so that you can track what is working. We do that and we know where to spend our money. Jay: Okay, thank you. Curt: Curt Warner, mortgage market guide, we use a risk reversal on the front end and a better than money back guarantee so and we also send free information with promotions so we give them critical information for their business, we give them, when they sign up, for $5.99 we give them $650 worth of free material if they don't like it in 30 days, it hasn't made them 10 times what an annual subscription costs, we give them their money back and they keep all the materials. Jay: Okay. Audience14: Four quick things. If you have a website that is targeting profession as mine does, make it, these are my experiences, make if feel like the place that your visitors belong. I work with advertising agencies and radio stations. When you go to my homepage danoday.com, if you're a radio person, you'll hear a jingle, just land on it, you don't do anything and you'll hear in the traditional jingle style danoday.com and if you're a radio person, that literally is music to your ears and you feel like your home. Second thing, we try to show our expertise in a subtle and fun way rather than proclaim ourselves as experts, we will do it in a more subtle way so I specialize in radio advertising, you go to our website, click on a bad commercial generator, we ask you three questions about your product, your service and we will instantly write a bad commercial for there by saving you the time and effort. (Audience laughs) Audience14: Now, in doing that, we hope that we're demonstrating that we know what makes a good commercial and what makes a bad commercial, so we're actually teaching with a fun tool. Third thing we do is every single page on
our site has a real easy to use, send this to a friend and we do not, if you click on it, and we tell people we're not saving your address, we're not saving your friend's address, right upfront, what happens is they're not sent the contents of the page, they are sent a note that says “Hey, I saw this on Dan O Day's site, it's really cool, click there to go,” because we want to drive traffic to the site and finally every page on our website, we have an (unclear 02:04 track 8) within the industry and every single page on the website tries to get people to sign up for the (unclear 02:10 track 8) but it doesn't say sign up for Dan's need (unclear 02:12 track 8) it says free stuff from Dan O Day and we track all the click throughs and a whole lot of people click on it and they they get the offer. That's it. Jay: Good, thank you. John: John (unclear 02:25 track 8) software and again the principle of giving away stuff for free, we create site search engine software and if you have the site for less than 10,000 pages, you can go to our site, register for the software, download the software and use it for free and if you have more than that, we have more expensive versions of the software which people buy. Jay: Thank you. Audience15: The thing I want to say, it's critical to track everything you do when you're doing stuff online. Every single part of your sales process because otherwise you don't know what results you're getting, you know, we did sponsored link on google, we brand six different ads and had a separate ad tracker on each one and we had a really big thing that happened. We had, a guy who was working wholesale connection I had with google, had suggested using the word wholesale in there. He said, “You'll get a great click through with wholesale.” Well yeah, we got great click through with wholesale but our visitor value and our conversion rate was much lower with the word wholesale. Mac: Then what, what was your alternative. Audience15: We had, let's see, we had a bunch of different-we didn't just have the word wholesale, we had like a whole different ad, we had six different ads we did so we had ones that were focused on the product that it was original product the Bob Barefoot (unclear 03:45 track 8) Coral Calcium and you know, bunch of different things that we tested... Mac: A lot of people who aren't familiar with web design might think, “How do you do that, my god, how do you track us?” Audience15: It's not hard. Mac: It's not hard, if your web developer says “I don't know how to do that,” what do you do? Audience15: oneshoppingcart.com is... Mac: Get a new one, right?
Audience15: I don't, I mean, this is not my company, this is just the software that I use other things out there but oneshoppingcart.com has a software package that has ad trackers affiliate program, all that stuff in it, it's... Mac: You can track everything down to individual links. I mean and should and see whether replacement, for instance, replacement high on a page or low on a page draws better, one next to an internal copy or next to a graphic so you can track every action that takes place that can be tracked. Audience15: We had another time that it came in real handy too when we had somebody that came to us and said, “Okay, we're going to give you-we've got this tool that a million people have downloaded, have it on their browser and so when they type in Coral Calcium you're going to own that, your page is going to come up and they said that they would guarantee us a million hits over six months. Well so we did an ad tracker on it and we got tons of click throughs, not one sale. I knew what my visitor value was (unclear 05:00 track 8) I knew what my conversion rate was so I could compare it. I called them up and I said, look, something’s not right here, we haven't had any sales and I know what's going on and I was empowered that information where I could get out of the contract. What I found out they were doing is they were guaranteeing that with pop under traffic which is nowhere near the quality of traffic is when somebody's typing in the keyboard. I mean, it's two completely different worlds and you're not going to have the kind of conversion rates, so you know, if I hadn't had the ad tracking, I would have had no clue. You know, I would have still had my level of sales and I wouldn't have known what's causing what, you know so it's critical to do that. Mac: Thank you. David: David (unclear 05:40 track 8). A couple of years ago, I was working with a company that was selling a report was about 250 pages and it cost $20,000, it was on eCommerce, so we put out a press release, we put it on the web and we also send it out through PRNewswire or something like that and one of the websites in the industry picked up on it and created a banner ad, so you could click on the banner ad to go right to the press release and then you could read the press release, but inside the press release, we embedded a pdf, so they could click on some of the words in the release and so they could look at the pdf and it opened up a 4 to 6 page pdf and that was the long copy selling for the report and as a result just that press release we got a company in Germany and somebody in New Hampshire to call to basically order the report with no qualification whatsoever, I mean, they saw it, the long copy sold them. Mac: For those of you who aren't aware of what a pdf means, a pdf is Adobe's portable document format. It's a format where you can put a document on the web and it will retain absolute formatting and it will print out on everybody's computer the same way no matter what, and display the same way no matter what. That is not true with regular html web pages which are browser dependent and are coded and resynthesized every time. So if you only want to hold a document to presentation value, you use pdf, I just want to clarify that. Who's up?
Gene: I'm Gene Wells. I'm nervous (laughs), heart's pounding. Gene Wells, I have a site, it's worshipguitarclass.com and... Mac: I'm sorry, what's your... Gene: It's worshipguitarclass.com. Mac: Oh, right, right. Gene: And I was going to share, just do what your passion is. I'm a worship leader, I love teaching, I love worship and I have newsletters and if I don't send it out like (unclear 07:46 track 8) said you can't sell with newsletters, you can, if I don't send it out, I start getting emails like, “Am I off the list?” Mac: She's also a good natural copyrighter, in case anybody wants to know. Gene: Yeah and so it's real precious. Now my videos are in 17 countries. They're using them to teach in over 100 churches including UK, New Zealand and Australia, Canada, but so I have like I think it was Don that said he has on every page, you can join the newsletter. So I have that and then also an exit pop up and I find that about half of my people join from the exit pop up. Audience: (Unclear 00:08 track 9) Gene: What's it? I'm making money. This is the best year in my life. Mac: Good for you. Audience16: Good evening everybody. I can imagine that you're all a bit tired, but what I'm about to share with you is so powerful, you really want to write this down. It's very important... Mac: (Unclear 00:30 track 9) under your eyelids, right? Audience16: that we ask the customer what they want. So we do a survey on the website. If you leave our website, there will be a pop on the screen which will have the survey. The headline is reward and the reward is an ebook that we have written ourselves that has tips of how to create more traffic to your website without big investments. So it's really valuable, it has a lot of value. People want to have that, so the only thing they have to do is fill out the survey, fill out some questions and we gather their email address and their name because we have to send the ebook, so that's one way to make sure that the email address is correct. But this is only the start of the whole thing because when we ask the questions we know exactly what they want, what the reasons are, why they don't buy at this moment. We ask them when do you plan on buying and most people plan on making the decision to buy around one month after they visit the website so that was a real eye opener for us. So what we do then is we-for every, let me read this, I say it correctly. They have reasons why they don't buy so we eliminate the objections of every single answer and we write a little paragraph just to eliminate every problem they have, so what we do then is we send out
personalized email with the paragraphs which apply to that person and we send it to them and we can have like 30 emails following up... Mac: Is that a program function, I mean does the... Audience16: It's all fully automated. Mac: Yeah. So they get a customized report depending on which selections they make. Audience16: The power is in this that you get to eliminate their objections, to all the different answers they gave, personalized, but fully automated and that's very powerful and so you not only gather all the email addresses, but you can really help them. Very powerful, we just implemented this one month ago so we're not, I don't have concrete results but a lot of people fill out the thing. Mac: Well, thank you. We have, we're trying to get out of... Audience: What's the website? Mac: What's the website? Audience16: Website is alphamege.biz. Mac: Walk it through letter by letter. Audience16: alphamege.biz. Mac: dot what, biz? Audience16: biz. Mac: .biz, okay. Audience16: Yeah, thank you. biz. alphamege. Sorry, I'm sorry. Mac: Okay, thanks. We really have to... Jay: We not going to probably get all of you (unclear 04:05 track 9) Mac: because we want to get you to dinner. Jay: ...you won't eat and because of tonight there will be more, I'm sorry, excuse me, pardon me, wait one second. You know what we'll do, why don't we stop right here and we'll pick it up when we come back, is that okay, but don't leave yet. I've got to set you up for the next part. That's pretty good isn't it? Hold on one second, there's shippers outside somewhere I lost the note, oh here it is. The shippers will be available at the registration table throughout evening so when you're staying late, if you need him to ship stuff, we're going to take a one hour dinner, tape? I don't know what they've got, I don't know, I’m sorry I should, but just go check it out. And also ship it home for you, if you want. Audience: Are they providing the boxes?
Jay: I don't know. Staff: Yes. Jay: Yes. They are, I should have known, I was testing my staff and they passed. (Audience laughs) Jay: Here's what we're going to do when you come back. We're going to-are we going to be ready, after lunch we're going to have the The Abraham Marketing Ets started so our digesting gets going and they're going to be cool, right. They're going to be cool, the guys are going to be sexy and the girls are really going to be good, right? Okay, is it going to be equally represented by both genders? Jay: Okay, you know, did you get really, did you get tight sweaters for the men, okay. So, we're going to do that and then I'm going to do a flip, we're going to stop this and we're going to do industry focus. We're going to put you in groups by industry and you're going to go around the tables, wait, wait, wait, you're going to go around the tables by industry and you're going to list number one, the most important current approach or method or strategy your business has been using to generate maximum success or sale. Number two, the biggest breakthrough you got from this and number three, the biggest lesson you would give other people in a related industry, we're going to vote about it. Then we're going to get the winners the respective tables because a lot of it is going to cross pollinate, okay? So you guys, you need energy and you'll see me, and I apologize, I'll get frustrated with my staff and with people out in the hall, I look at this as a marathon and it's very admirable that you ran it. It's sort of nice that you were in three quarters of it, but doesn't it feel exhilarating to finish it. So if you're out in the hall, understand this and it's not meant to be, but this is how I am, I'm mindful of who's there and when they come up with a problem, if they weren't here to give contribution support and listened to the others, I tend to be, unfortunately, but very very democratically far less empathic to you. So do whatever you want, stay outside, do whatever you want, doesn't matter to me, but don't be upset if when you come in, if you've been out there for an hour and you want something from me and I say next, because I'm very very aware. This is like the last mile and this is the marathon and we're all one for all and all for one and if it unwinds in the 11th hour and we can't go the distance, then I don't think you have a lot of probability of doing very much when you go home. That's just my feeling so for whatever it's worth, if it's nasty, I apologize, but I want to go the distance with you, if you don't want, I can go home right now because my family is waiting, but help me here, we've got a little further to go and it'll be really glorious, if you want to, do you want to? Audience: Yeah! (Audience applauds) Jay: Okay, then help me, put some music, wait wait, no, I didn't know that, but don't get mad. (unclear 07:44 track 9) Rick.
Mac: As you were. Jay: Did you have coffee today, how many cups of caffeine did you have? You get this? Okay, what's your message, we have a message. Don't leave quite yet please. Staff: (unclear 08:00 track 9) party or the first 25 people who signed up... Jay: It's at four in the morning. Staff: It's at four in the morning, excuse me, it's after, directly after the event. It is not during dinner. Jay: Yeah, okay, now, one other thing about it, if you have to leave and you're not able to be there, I'm sorry it's the only time we could schedule it to get you what we wanted. I will deal with each of you privately for one question by phone or you can, if you're in the neighborhood, but we'll make sure that you won't get anything but a superior outcome, whatever. Number two... Staff: Plus the 25 people who register, plus (unclear 08:35 track 9) people in the ballet room and it's after the seminar. Jay: Whenever the seminar is over and if you guys are too tired, you have to catch a plane... Staff: It's located just past the restaurant, but before, the outside door's on the left. Some people have...okay this is important. You guys all know the value of the notes right? Audience: Yes. Staff: Some people have misplaced their binders so check the ones you have because you may not have your binder, you may have somebody else's. I know of at least three different people, one of them named Ronald Conner, I believe his name is and he has lost his notes from the entire weekend. Jay: We found it, oh great, that's good. Good for the...anything else? Staff: Also, there are also items in our lost and found, so you may want to check your own stuff or check the lost and found. And all the speakers if you could just check with me after the event, there's a get together afterwards... Jay: For the speakers that are here. Staff: For the speakers only. Yeah. See you in the room. Jay: And then Will if you're around and you want to come up to my room, that would be great and all of you, I am, we're here for you, Mac, I, Rick, all the speakers that are here for the duration if you're here for yourselves, are you? Okay, get energized, get ready for a great performance.
Jay: Breakthroughs right and that's been really neat, hasn't it? Yes, and he talked about breakthroughs and what was the other thing? Obstacles, correct? Now I want to change the game for a few minutes until the Marketing Ets are ready to perform. Mac: And the most common and prominent problem in their services. Jay: But I've got a whole new game. That's done, we're doing that game. Listen to him. So now, we're going to make it simpler and more powerful. Each one of you, no, but that's good. But now we're going to do something so elegant it's going to go (unclear 02:04 track 10). Each one of you is in a business that is similar relatively speaking to the rest of them, right. You are either start up, but you're having somebody where you're successful, you're very successful, right. You have clients and prospects, right. You sell product or services, whatever, right, but you do it uniquely and differently. If there are 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, are you with this group or are you just, okay 11, I will promise you there are at least seven different modes of generating them at this table and that most of you don't even comprehend it yet and even though you've been exposed to it, so you've got until the Marketing Ets are ready to perform to go around the room and now forget about your breakthrough, forget about your (unclear 01:18 track 10) here is the one major way we drive our business and here's how you should, could, must use what we've learned, if you want to apply it as one of your pillars. Okay and watch what happens. Do it now. Jay: I've got a question. I've got a question. I want to see a relative vote. Who got...losing my voice...who got more out of the first exercise over the second, raise your hands. Who got more out of what you did first, what I just had you do, raise your hand. Okay. Who got more out of the last one? What do you think that means? Who got an idea of the last one they can absolutely take to the bank? Okay, who would like to play a little bit more of that game? What is it? Is it...no, that isn't really. Oh god, you scared me, that's funny, oh god. Okay we're going to play a piece of music to get our minds going for about two minutes and then we'll play a little more of this, okay? Play some music. Jay: My god you scared me, you just trying to blow my mind. This is the mood. (Audience applauds) Jay: What an impressive performance. Are we going to change the game? We're going to change the game. Sit down for a minute, we're going to change the game. That's fabulous, you guys are hot. (Audience applauds) Jay: You guys are hot. Okay, excuse me, somebody bring me back my, write down Albert all the songs on that so I know there's one more I want to hear, I can't remember it, on that one, just you played, for me. The one you just did that had, who's got it? Rick? Rick: What?
Jay: Take it back one more time, I want to know what's on it, there's one more I want to play, I can't remember, it's 12, I want to hear one. Okay I want you now for a minute, everyone at the table, think about what one breakthrough you got by listening to everybody that's most universal and then I want you to take your water glass and move to different tables and spread out now to different tables okay and I want you to share with each other, the one biggest breakthrough you got out of those two elements that you think would be most universally applicable to anybody's business. Okay, you're with me, am I too confusing? Audience: Yeah. Jay: Okay you want me to do it again, explain it easier. Okay, so get your water because I don't have time to have them change it, leave the thing, go move to a different table where there's not people from this group, share with that group, try not to be with the same group, share the one biggest insight from the two things that you think are universally applicable to any business. Jay: Who is it? Who is it? Was it a man? Now, is it weird? Is it weird I mean, I'm not going to do weird things am I? Pardon. Random Speaker: (Unclear 00:12 track 13) Jay: Can you get the fluid and the blood flowing in my brain? Random Speaker: And back out. Jay: And back out? Random Speaker: Yes. Jay: I'm not going to go schizoid or anything else am I? I'm such perverted person I kept thinking about the orgasmatron from Woody Allen's... you remember that? Random Speaker: Sleeper. Jay: Should I put a screen in front of me so that no one sees what happens. What should I do? Random Speaker: Go behind the curtain. Jay: Am I going to be pleased with the outcome, am I going to have mental acuity on those of mortal men? Can I see through clothes? I'm looking for some benefits here, sell me on the benefits. Sell me on the benefits. Sell me, sell me, sell me. Random Speaker: Did (unclear 01:01 track 13) think you're going to have the adventure of your life? Jay: I'm sorry, going to... Random Speaker: Price your life (unclear 01:06 track 13) machine?
Jay: I'll raise it up. How long will I have? Will I be up all night? I want to party after this. We're going to go to those all night after hours clubs, all of us. Rick has got, how many buses have you got? Random Speaker: Jay. Jay: Yes? Random Speaker: If I shall tell you what to do, you need to be quite. (Audience laughs and applauds) Jay: Now? Random Speaker: Yes, yes. I'm going to expand your DNA code and correct it back to normal state. Jay: Can I ask you a very complicated question, a conflicting, a conundrum? I have a conundrum. Can you do that to me while something very intense is going on in the rest of the room? Random Speaker: Yes I can. Jay: It's something loud and intense. Random Speaker: Yes Jay: Okay, then I will throw caution to the wind. I will take my shoes off and make myself totally vulnerable, but this will be my first time so you'll be gentle, won't you? (Audience laughs) Random Speaker: I'm going to (unclear 02:15 track 13). Jay: What am I going to do? Should I trust her Michael? What do you think? Okay, so this, where do you live? Random Speaker: What? Jay: You live in Los Angeles? Random Speaker: No I live in Montana. Jay: It would be much better if you lived in Los Angeles, because if you keep doing this, it's good everyday. Okay, alright, we're going to, we're going to do an experiment, while we're doing this, Rick has something else that's going to go on for everybody else, right Rick. Rick: It's a bit of an event. Jay: So, I'm going to sit here, am I going to sit down and do it, how am I going to do it? Where am I going to do it? Okay I'll do whatever you say, but Rick will take over while you're doing this. We have a special something.
Rick: Yeah, this is the world premiere of a song that was generated by a very famous artist, you've probably, you've heard of him livin la vida loca, right? Well (unclear 03:18 track 13) also recorded another song. Would you play it? Could you play it? Would you play it loud Jay: Do I leave my sock on? Okay, alright. You're interesting, thank you for doing this. I'm going to be excited, okay. By taking them off? Okay. Might be dirt on the bottom. Okay. The dirt if from the sock, it's not my feet. Turn it a little higher so I can hear it.
Jay Abraham Mastermind Marketing 33 Jay: You're used to one foot or do you do two? Okay, can we switch the other now or only Random speaker: No Jay: No? Random speaker: (Unclear 00:05) Jay: Okay, I'm going to have to do my thing around you. Okay. So when we last left, that's okay, keep doing it, when we last left our exercises, what were we doing? Did you guys go around your table yet Audience: Yes Jay: Okay, now here's the deal. Do it again. Mix one more, you had an insight; did you guys get insights? My voice is going. Did you get insight from that? Audience: No Jay: Okay, I want you to go, no, change it, I want you to ask me a question. We're going to take questions now. Each of you write down the biggest single unanswered question, unclear, let's say, issue in your mind, biggest problem you're still struggling with and I'll randomly, and then I want you to then be able to present it to your table, hear me out, if you're talking, then you won't do this and I'm not going to repeat it. I mean, I know you can hear me so I'll say it one time and if you didn't hear it, you'll have to ask somebody else because I'm losing my voice. You're going to write down either or your biggest, you're just going to have only one of them, but you can put three and choose one. Your biggest unanswered question, the biggest unresolved issue in your mind, your biggest uncertainty about some element of what we're all about. Take one of them and present it around the table. The table then chooses the one whatever it is, that is the most universal and the one whatever it is, that is the most unique. You'll then go to the mikes at intervals because we'll have too many and you'll pose them and I will answer them and is Mac here, and Mac will help me. Okay? Does that work? You get it or not? Am I confusing you or are you clear? You want me to do it one more time even though I said I wouldn't? Okay then do it right now and be ready to send delegates in about ten minutes.
Jay: I know, it's hard. Are you almost done? Okay, two minutes, alright. I want to get this. Alright here's what we're going to do. We are going to take about 20 representatives from what we just did and we will answer them. We are going to put you on the honor system to try to answer some of them yourself when we're done with the next element. After we've answered them, we will then show you how to build your strategy and your action plan and then we'll tie it all up and it should be about probably with luck, about 2 o'clock, we'll be done. Yes, serious. And then you should be stimulated enough that you probably won't sleep. Well see your doing this to me, I'm probably going to have to fear what to do from two until about you know, 12 o'clock on Saturday because I probably won't sleep. The things I do for you, is it going to give me energy? Am I going to be able to sleep when I want to, yeah but not probably for a while. I can go for a walk around the block a million times. Yeah, if I want to. Don't do it yet or it'll defeat my purpose. Okay good, that'll be great when we're done. That'll be great when you're done, not right now. Now your energizing me right? Okay. Thank you. Random speaker: (Unclear 01:40 track 3) Jay: I would love to after, it would be very interesting. Random speaker: (Unclear 01:45 track 3) Jay: Okay, okay, good. Okay, Rick, Rick, I'm sorry, is Rick here? Rick, where is he? Hey Rick, you're done? Okay, thank you. Your gracious. Thank you so much and I'll tell you when I go to sleep. Okay thanks. Hey Rick, where are you? I don't feel tired. I'm always pretty energized. I'm sure I probably am, I’ve had foot massages in my meridian stimulated before so I believe in it. The negative is, as she said she can put to sleep, then you're energized for a long period of time, but I'm not feel bad. I need energy for about an hour and a half more and then I'll be able to let you on your way to wherever you like to go. Jay: Okay, here's what we're going to do. Okay, everybody, okay, I want about first couple of tables across keep sending-if you have a universal and unique one, send them until we have no more than-use the honor system, ten at both sides. I'm going to see how fast it goes. If it goes really fast, we'll do some more, if it doesn't I will leave you on the honor system because I want basically to get into the strategy and the action plan okay? And then time allowing, I’ll tell you, 8 or 10 people asked me about the strategy session we're doing in March or April, I'll tell you about it, but not until we're done. Random speaker: (Unclear 03:30 track 3) Jay: My feet feel pretty good, I'm feeling, the bottom is still great. I'm very aware of my senses and I'm feeling good. I don't yet feel like exhilarated, does it take a minute or two? But I feel pretty good. Pardon, what? I'm feeling pretty good. Pretty good, we'll see how my mind and my mouth work in a minute. Hopefully I'll be agile minded and extremely focused. Okay, everyone, go to the mikes, but no more than 10 at a time. Okay, Mac, we need you. We need you.
Okay, are you ready? We are going to answer questions, are you ready? Mac, you ready, would you sit down. Okay. Sir? Audience: Yes, we talked about words or power... Jay: A little louder please, you talked about? Audience: We talked about words or power and using different auditory visual kinesthetic words in your approach to selling to customers, clients, excuse me, and I was wondering it wasn't talked about, is there a fundamental difference when you're talking to either gender where you would want to use different kinds of words for female, different kinds of words for a male, wasn't talked about much at all. Jay: I don't consciously see myself really being gender, what's the word we call, gender Audience: Specific? Jay: Specific, but Mac, what do you think? I don't really think so, but maybe you do. Is your mike on? Is your mike on? Audience: Your mike isn't on. Jay: I think it's off. Yeah, I think empathy is empathy is empathy and I think frankly, if you envision, remember what-and listen to that strategy of preeminence. We promised we would get it cleaned up and put it on the website. We will, the actual notes and you've got a short version of it that was in the book, right? I gave that to you and you should know, one of the groupsTanya (unclear 05:29 track 3) assistant stayed up all night at Kinkos because I just gave them requests and they'd just go out and do it. (Unclear 05:32 track 3) everything. So, read it, it'll be helpful for you but I think when you get that really instilled and installed in your mind and you're really aware of what you're doing, it'll come naturally. When I read the (unclear 05:48 track 3) from the longer notes, I said that the vision is that you're in their lives, or in their homes, in their offices, in their-your product is in there (unclear 05:55 track 3) order in there, their office or building or whatever, working, helping them and adding value and you just start thinking in those terms, your subconscious will almost automatically help you create what you should-but I don't think I consciously even deal with gender. I think everybody is one genderless sort of human being, but that may be wrong Mac, what do you think? Matt: No, I don't think you do. I think you do what works and if people-you wouldn't normally use an expression like rip off the competition's head. But if you hear somebody say it to him and other people start going, “Yeah, he'll try it” because he (unclear 06:35 track 3) kind of martian approach to these things, you know. I don't know what these people... Jay: But it's a great question, that's a great question and I would think, I don't do a lot of, well actually I have, I've done stuff to women and I guess you probably...
(Audience laughs) Jay: You guys, you have a nasty mind. I'm the purest and I'm embarrassed, I'm humiliated. Matt: Cut off. Jay: The, I think if you just-if you envision the person, again, one thing I would say, Mac probably said it in his clinic if you didn't stay up for it (unclear 07:15 track 3) heard on tape and that is that basically your writing not to 100,000 different people, in different genders, ages, ethnicities, you're writing to one person at a time and if you're selling a product that very much is gender specific, then you merce yourself empathically and respectfully and try to say, what's that woman-if it's a woman? What's that woman thinking? What's her hope, what's her dream, what's her problem, what is she thinking, what is she frustrated with, what is she trying to put in words, what is it that she really wants, what is it that she needs. What is it she does for that right now if anything, and if you start asking good questions, the answer is almost automatically... Matt: I've worked with Jay's copy a lot and I have to say, I've worked with a lot of other people's copy, try to tune it and that sort of a thing too and sometimes that's a concern. I've never felt it was a concern with-I mean, he seems to want to universalize it and that's-he intuitively takes that approach. It isn't any-he doesn't really write to men or women. There are more men in the audience he tends to market to but that's a natural phenomenon. It isn't a male approach. If most entrepreneurs relate to business as a war, then that's what you sell them. I mean, if that's what gets them in the door, he's really been around some lot of other concepts... Jay: (Unclear 08:40) sounds good to me. Audience: Thank you. Matt: There's addictum which you kind of-you sell them what they want and you give them what they need and that's not cynical, it means that the people don't even know what they want and they think they want certain things that are patterned but they really need something else and what you need is a funny thing in that particular direction. Jay doesn't give people exactly what they want or what they bought often. He gives them what he thinks, what he believes fully that they need and so he'll use an appeal that appeals to maybe not to the highest instincts but we've had people cry in these programs, come to their knees crying with spiritual experience. Jay: We weren't trying to screw with them (unclear 09:26 track 3). Matt: It just happened. We've had a room full of people this size and... Jay: They came for pure averse. They wanted to make money... Matt: They thought they did.
Jay: And we tried to show them you can't make money until you first add... Matt: Without service, without service. Jay: ...contribution and we showed them that manipulative stuff isn't really the answer although you can make service based communication but... Matt: Anybody from the protege is here? Jay: Anybody here from the protege training program, the old ones, the old ones, the old ones. The ones we did in 89 and 90 Matt: They can tell these were the most emotional liberating spirits, (unclear 10:00 track 3) have to worry about money... Jay: (Unclear 10:00 track 3) paying millions of dollars if we would have said “We're going to teach you to follow up with your clients, we're going to teach you to slow down and (unclear 10:06 track 3) Matt: To liberate yourself from material from material wants. Jay: Be opposite of what you've been all your life and force you to go out of your comfort zone and tolerate stuff that you have never tolerated before and probably hate me in the process, no one would have come. But that's what they needed to be able to make a lot more money because it was the by product, the reward, the benevolent bonus that cosmos gives you for doing the contribution thing so to speak. Anyhow... Chris: Hi, I'm Chris. I'm in a web posting business among other things. Jay, I would like to thank you for creating a huge problem for us which is you helped us increase our sales with 600% and now I would ask you to solve the problem which is, how do we handle that? Jay: Okay, so explain-the biggest issue that I tell people are first of all is to look at the qualitative levels of sales-certain sales you may not even want. Certain sales you maybe able to put a heck of a lot more service meaning people or effort behind because it translates when you start looking at your lifetime value into a hell of a lot more residual value. Mac you want to pick up? Matt: Yeah, you can also raise your price. Jay: Yup. Matt: But (unclear 00:28 track 4) where you get exactly the customers you want to handle for the infrastructure have. If you want to build an infrastructure out to handle business, that's a business decision and that takes some time and one of the true dangers and it sounds like a copy line which I have made it at various times which is be careful with these techniques because they can generate more business than you can handle and everybody's distinctive response is “Bring it on, I'll handle it all.” Chris: It's true
Matt: We've seen them bury businesses and you really have to be careful. Jay: And there's another side, again this is a very difficult one and there's not a general answer, if you know you have a residual based business and there's enough repeat either currently or if you add it back ends and that was your strategy, you might be wise if your making a lot of money-I made tons of-I never operated my own business very long and probably well because I was always more interested in others, but the one thing that I learned that I didn't do that I would do so much is put a lot more quality people behind it when you got it, build an organization that will be there to handle it so you might say because my motto was always to sub things out because I never managed to have really loyal, but not a lot of people not always in the past pay well etc...I would basically say, okay, right now I'm making money but it's a mess. Let's put some quality people in, who will keep it going and if I don't have a back end let's figure out how to add back ends to it so it would work. I mean, I'm not a management consultant, what would you say? Matt: Well I think there's some interesting studies on entrepreneurs. One of the things in classic entrepreneurial personality is very good at creating things. They aren't necessarily entertained by running them and so they'll tend to-when everything is running, when they really get it great and running smoothly, they'll blow it up so that they can take on the chaos again. Jay: You guys got a great compliment, but it also has a little bit of barb on it from a couple of my colleagues here, one was very wealthy who I didn't tell you about. He said these are some of the neatest people and most of them are creators, but they're not really as naturally oriented to be builders, if that makes sense. They can create a lot of stuff and they're going to have to work or bring in quality people to help them. Matt: And sometimes you might think seriously having a guy (unclear 02:40 track 4)to a certain stage about taking the money and going back and creating again. Because if you find yourself unhappy in the role of builder, don't make yourself unhappy. Take the money and run. Jay: Or, and I'll tell you, this is very delicate. I've been burned, Mac knows that trying to bring... Matt: Business partner Jay: ...business partner into take my money making ability and solidify it, but I've also had some really good friends that have done well. Brian Tracey has a partner who I'm very impressed with. He does all the deals, sets it up so that Brian can do all the work. Tony Robbins doesn't have a partner, but he's got a brilliant guy running his organization that I'm very impressed with who coordinates everything runs interference, keeps Tony concentrating on the bigger things. The other day, Tony was telling me John (unclear 03:25track 4) concept about, I didn't get it down, but he's saying figure out what you not only do well but you love doing it. Don't do anything else. Get yourself out of the rung so
that you can work on the biggest thing to keep growing it and go to the mastermind group I mean if I don't as good an answer, you heard his question, right, don't raise your hand now because we don't have time tonight but you see who he is, hopefully he'll be here at 2 or 2:15 when we're done and hopefully he won't be so wiped out that he's going to run to his room. Each of you who think you've got an answer from your own life and I know there are people here who've taken businesses through my stuff or others two three four time increases over pre rapid rate, give them your best, not only reason, but experience recommendation. If you get 20 of them, write them all down, don't just say thank you. Sit there and say, talk slower and then put them all together and see if there's a hybrid there and I think you'll get a little closer to it okay. Chris: Thank you very much. Jay: Good luck. David: It's I guess going another (unclear 04:25 track 4) we had a group of (unclear 04:28 track 4) one man operations, but looking as we've built this and get the leverage up there we'd like to be able to bring on some other people and some of your materials have indicated in ways of bringing on an employer, getting them to work for you without really asking to pay, I mean or like a commission (unclear 04:45) it's a way to structure I guess. Jay: One of my belief systems was and still is and (unclear 04:50 track 4) believes this and he's demonstrated to me that it can absolutely be done. If you revere what-okay, just like this program had in it everything that everyone everybody needed, have you noticed that? You should have all by now met somebody that had either the answer or the connection or the perspective or the experience or the ability that you were looking for and maybe you didn't even know before you met them and I’m going to bet that's happened to almost everyone of you, hasn't it and if I had gotten here a little bit more intermixed it would happen to even more of you in more and more ways. The same holds true. What you've got to realize at your size is you need a mastermind organization or multiple ones. You need to either find other people doing what you're doing outside your market and call them up, introduce yourself and say, hey, what do you do by the way, what do you do? David: Office furniture doctor. Jay: And in what geography? David: Washington State. Jay: So, okay, are you now planning on national tomorrow? David: No. Jay: Okay, so you call-you get a DNB or yellow pages directory for the country. You look up related categories, you find out bigger ones, you call and you say, Hi, my name is, what's your name?
David: David. Jay: David what? David: David Cathers. Jay: That's right, and I live in where? (Audience laughs) Matt: Just checking. David: (unclear 06:15 track 4) Washington. Jay: You're very good for 1 o'clock. David: Alright. Jay: And I am a small one person but growing furniture doctor you are a large dynamic local or regional one. I have no probably capacity but certain desire to ever compete with you, I mean I don't think you're going to compete in-where are you? David: From (unclear 00:15) Jay: No no, (unclear 00:16 ) what city? David: (Unclear 20 track 5), Washington, Tacoma area. Jay: Tacoma, if that's the case and I sign an absolute letter affirming I'm never going to be competing in your area, would you consider being a part of my mastermind group. I'm trying to organize 10 different people who aren't competitive but are doing the same thing, to help not just me, but help us all grow and I'll orchestrate, we could do it by phone, we could do it in personal we could do it there, we could do it here, if you do that, one way. Then you go in your locale in Tacoma and you find reasonably well respected business leaders at different levels maybe you can't go to the hundred millionaire, but maybe you can go to somebody who's got past where you are in some business that maybe isn't directly that way but is parallel at least you know (unclear 01:03 track 5) service business and you go to five or six of them and you say, “Can I meet with you and buy you breakfast or have coffee and here's what I want to do and right now I can't help but someday I will be able to, if your assistance helps me and I'd love to help give it back to others.” I'm sure you have a charity that you'd like to benefit-I mean, and you figure out a way to do it. If you do that continuously and when you're driving to and from work you pick out people that you read about in the magazines and you call them and you ask them if they would consider talking to you giving you their advice and you do things like that all the time, guess what, half of them might say no, maybe three quarters, maybe even seven eighths, but guess what, some of them will say yes and it doesn't take very many of them and very quickly for you to get the answers you're looking for in the perspectives you need and the guidance the encouragement and the fan club
that I think will make it possible for you to grow to the level you want. Does that help? David: I appreciate it. Audience: We've put all the mastermind techniques to work. We have lots and lots of clients and now we're just also dog gone happy at our table, we want to reward our clients. Do you want to elaborate a little bit on any kind of loyalty program? Jay: Sure. But you want to tell me what kind of-all of you? Okay. Audience: Well that was the question (unclear 02:26 track 5) Jay: Good question Good question, good, good. I'm sorry I was playing a different game in my brain, different game in my brain, see it's getting late. Okay, first thing is there's two different ways reward clients. One is as a surprise and one is almost like Pavlov's dog? Matt: Yeah, Pavlov. Jay: And neither is right or wrong. You can set up a loyalty program and you can say we want to not only reward you but really enrich you for sticking with us and buying all your whatever they are so we've got a program and it could be either discount, it could be free goods, it can be points they get towards things they want and need personally, points they get towards things they want or need in their business, it can be something really neat like a reward, big pose, I mean, where's Adam Bush, is he still here? I mean, at the last mastermind we did he and a bunch of people pitched in and brought me a trophy that was like, that big. Now that was really cool but it cost money-what did it really cost? $100, $200, $300, $400 how much? $100? Okay but it looked really great. Matt: It was great, it looked very impressive however. Jay: It's like that big, I still have it in my office. It had a plaque that was very distinguishing, people coming in my office and they see it all the time, it's really cool. You can get at any time, anytime, anybody prominent is performing anywhere in your locality. There's always somebody you could go to the club and say I would like to do a photo shoot with that person, would that person consider getting a $1000 or $1500 just to meet at the club before, after, the next day whenever it worked, we'll pay you a fee for it, just to be a guest there, anyhow. I did a trade, this is terrible. I don't think Mac probably knows this. Remember Count Basie Orchestra (unclear 04:15 track 5) Matt: Oh yeah, sure. Jay: So Count Basie Orchestra, Count Basie dies, his son takes over the orchestra, coming to one of our programs, we're having a great time... Matt: (Unclear 04:26) he's one of the adopted son.
Jay: Yeah, adopted son and we do a trade a sort of (unclear 04:31 track 5) trade. Next time he's in LA, he'll bring the whole group over to my house for a party. So he forgets to-I forget to tell Christy which I am, forgetful. He doesn't tell me when he's coming, he calls and says, “We're here, you want us to come over?” and he was going to bring the whole group over but Christy was 8 months pregnant.. Matt: It's like a twenty piece ensemble. Jay: Yeah I had to, it was going to be, I had to wreck stuff in the backyard, she was mad, but the point is the reason he was going to do it was they were there anyway. They love playing music. Whether they're paid or not, they want to do stuff. What cities you're in doesn't matter. Somebody relevant or relatively speaking who's prominent is there. There's something I just did to somebody and it was really neat who was... Mac: I don't know. Jay: I'm trying to think who it was. It was somebody prominent, it was somewhere I arranged for all these people to get pictures with them to show, to send home with... Mac: That's very nice. Jay: with their, you know, to put on their desk. You put a picture of you me and I don't care who it is, an athlete, a this, a that and you frame it. This was so funny. When I was doing (unclear 05:40 track 5) we had Buster (unclear 05:42 track 5) who would-Flash Gordan, he was Tarzan, he was Captain (unclear 05:47 track 5), he was, who else was he? Mac: Who are you talking about? Jay: (Unclear 05:50) Mac: Oh, that's right. Jay: He was still on the outer periphery of popularity and I got him to send signed autographed pictures to the station managers wives and every one of them let us have a (unclear 06:05 track 5). So you do lots of different things. Does that make sense? Audience: Well it does, can you give too much? I do home inspections in Northern California and I want to take... Mac: Yeah you can do, yes you can Jay: I think you can look really, you can look desperate. What I... Mac: Yeah, you have to give a gift that's something that's going to grow in... Jay: But there's a delicate balance. Staying in somebody's life is very important, but a gift can be just your caring about me and sending me, at Christmas for
example and you've got time to do this. Almost everybody buys a beautiful card, almost everybody does something gorgeous, expensive, but production specific. What would happen if you sat down at Christmas time and wrote a letter from your heart and maybe even personalize it, if you didn't have a lot, if you didn't, you wrote one and you have everybody sign it who is all of your staff and you've got a picture of them, maybe people they've never met before and maybe add a little note from a bunch of people saying you don't know me but I work on your-I pack it, I ship it, you know, I've never had-I mean there's a lot of neat things you can do that are very again, I said earlier, I was walking to the (unclear 07:22 track 5) I was talking about humanity and humility. Most of us, what I hope I maybe opened up, maybe not convinced you totally but get into your humanity and your humility and connect and there's a lot of things. Mac, you want to say something... Mac: Yeah, this fringes on a topic which is dear to my heart which is a question of what I call trophy value. A friend of mine in the premium incentive business talked about that. He says one of the reasons that business exists is for instance, everybody goes “Oh, give him cash.” Cash has no or very little trophy value. It doesn't sit on your desk, it isn't anything you can show off when you pull out your wallet and pull out the $100 bill, maybe, if it's $100 bill, but it's just cash goes into your bank account, it's gone spent on groceries, whatever, it's gone. Trophy value is-$100 dollars spent-if they gave $100 to Jay, it's meaningless. They gave a trophy... Jay: With my name and you know it is the best... Mac: And it's a literal trophy. Jay: We appreciate all the things you've done, this is the greatest of all time, it's like I've kept it in my office in a main place for seven years. I have somebody who dusts it every week. Now does that give you an idea? Mac: When you give something and you want to give them recognition and have them enjoy it, give them something that can be displayed. Jay: Yeah, that makes them look special, because they are. Mac: It makes them look special because they are in front of other people, their piers, their employers, customers. Jay: And try to get them something that will last. A bottle of wine is beautiful and wonderful, it is, isn't appreciated by half the people, isn't … Matt: But a silver, a crystal and silver decanter with a presentation plaque those have trophy value. It'll probably cost about the same. Jay: Or something really cool that would sit on their desk forever or really does, so... Audience: So are you saying a trip to Italy would be too much?
Matt: For what, for what? Jay: I don't know. Audience: That's what I'm thinking Matt: We literally know a case like that where a furniture company that we worked with was able to buy from a syndicator, packages to Hawaii, if you bought a sofa. The breakage on those is so high, they cost a nominal $2000 trip you could buy for $175. Jay: (Unclear 01:18 track 6) you people do it. Matt: So they could afford to use it. It was in their allowable cost of sales and it killed sales because they're customers looked at that and said, if they can buy me a trip to Hawaii, I must be overpaying like mad. Audience: That's what I wanted to know. Jay: Put is to test and don't-we're going to give, the first strategic thing will build is I am going to continuously and properly test everything relevant and when I find something producing better, that only is the beginning and that's…. Matt: Does everybody know there's a test and a roll out? Jay: Explain the difference. Matt: The difference is a test is you don't shoot the farm, you don't do everything, every customer you have, you do with small, if possible statistically or at least business significant element so you can get some reasonable business fix on whether it would work if you took it to a larger group of your customers prospects and whatever it might be. A test doesn't mean rolling it out to your whole people. It means that's where the leverage comes from testing the smallest group that gives you an indicative response that you can say “Gee, I can extrapolate this out.” Now there's some dangers of error, but if you are very cautious in the way you extrapolate results, that's the tremendous leverage you can test literally 2500 or something and if you get a 1% return, that's just, that gives you statistically significant results. So but you have a list of 1000, you test 100 and you're in a business to business situation and you get ten things back of the 100, and those ten things can generate-have the potential for generating a million dollar sale each,that's business significance, you don't care about statistical significance, that's for statistician, you care about business significance. Jay: Good, okay, only because we want to get onto planning your future. Audience: Jay, given the power of the referrals and the affiliation programs that we've talked about, why don't you talk about network marketing and any of (unclear 03:35 track 6) as far as I can tell.
Jay: Because most network marketing deals I don't like because they encourage people to sell and not sell through, they want you to sign up lots of distributors, they don't try to get you to sell lots of clients, buyers, what you sell out to buyers, they'll so screw you. you can't make enough money almost to justify it and they don't give you really, they make you buy tools which are training programs and it's just-met very few. We've tried I mean, we had $3 million worth of radio time. (unclear 04:09 track 6) is a great friend of mine and he's involved with a lot of businesses. We went with prepaid legal and we took the top position just as an experiment, we spent $400,000 of our (unclear 04:20 track 6) trying to get people in and we got a 1000 leads and we converted like 20 of them and two of them sold and I think I got $212 in money back. It's just-I know people who do it, I think there's so many faster easier more... Mac: And there's another reason. If you read the contracts on most distributor arrangements, you are prohibited in most multi levels and most network marketing from doing direct marketing or anything that might be effective direct marketing, you're usually prohibited from using the primary branding of the product, making product claims without clearing them through home office. They tie you up because it is a direct sales proposition not a direct marketing proposition. I've been asked to work on several of them, I’ve looked into it and unless you work at the primary level, they've tied it up, so you can't direct marketing.... Jay: And I would challenge this. Now that you know this stuff and you kind of see the leverage in this, why would you want the leverage in that because that leverage... Matt: That is a good thing to start with, sometimes it's a great business experience. Jay: There was a gentleman and this is very cool. There was a gentleman, I can't remember his name, (unclear 00:58 track 7) even here or was here at our last program who literally was teaching the fact that network marketing was a great starting point for people just to get their feet wet, $200 or $300 and maybe use it to parle and learn some good and I actually found that premise palpable... Matt: I think I agree with that. Jay: But I just personally, it's like we help-the best one I've ever done was I created a model, I don't think I ever told you you this, where a really cool guy. He had like 500 people who (unclear 01:35 track 7) really high performers, but they were dedicated but different people have different skill sets and they were able to do all the things and I got him to create almost like a corporation where each one put different values in, we evaluated it and it's like you put in money to financing, you put in the time to set up appointments, you put in the presentation, you put in the work with the (unclear 01:55 ) and I broke it down and it was pretty cool. It worked but
Matt: Yeah, like anything else, it's-there's big difference between some and another. Some of them are closely held and are really interested in selling product through and not just selling distributorships. Audience: I have a question. Have you guys ever interviewed some of the various organizations and some of the real superstars in those organizations? Matt: Yes. Jay: Mac has, I have. Audience: Okay. Jay: But we've also interviewed people who have made a lot more money in businesses that have had a lot more net worth and could be sold and we're not knocking it. We're not knocking-in fact all of these techniques in one way or the other can be applied to it. I've done very little but I can tell you-you know million dollar a year earner (unclear 02:45 track 7) is a client of mine, the chairman of prepaid legal buys my stuff, two or three of the top people (unclear 02:53 track 7) is a great friend of mine who's a big person in a lot of network marketing, the guy who used to run upline, or downline or whatever it was called, he's got a funny name, something something something, he claimed I kept him alive financially by using my stuff, so it's not like I don't have a presence in the field. It's just not my preference of concentration. Mac: Because they usually are tied up. It was almost like working in a regulated field, because you have so many things that you can't do and so you have to be, you have to jump through a lot of hoops to do anything but if you can make these work to the extent that your distributor arrangement allows you to do it and I don't want to mention specific ones that I’ve worked with, but it, usually you run up against a brick wall somewhere. Jay: Okay, anyhow, hope that helps or at least explains. Audience4: Several of us at our table were very interested in learning how to become I guess market experts so that we could practice the strategy of... Jay: Marketing consultants or just marketing experts? Audience4: Well we want to practice the strategy of preeminence including... Jay: So what's the-can you ask the question a little bit different? Audience: I'm not finished with the question. Jay: Oh, I'm sorry, pardon me. Audience4: So, in order to do that, we need to know more about the market and the industry rather than simply just our little business and so we're looking for more ways to gather information about research that's already...
Matt: You've probably don't need to know-I mean just to be contentious, you probably don't need to be-know more about the marketing industry. You may not need to know deeper and more pervasive marketing technique but you probably need to know a whole lot more about the industries your going to work with. Audience4: No what I'm trying to find out is something like if someone's already done research to find out what the effect of productivity is to have beautiful paintings on the wall, if somebody's already done that kind of research then I can have access to it, how will I find that? Jay: Okay, I'll give you. Let me count the ways Audience: Wonderful Jay: Okay. First thing you do is-it doesn't matter what business you're in? First you obviously look on the internet and you look at some web pages, what I always do is, somebody we pay a little bit more than minimum wage, get every legitimate looking web page and their goal is to find things that have statistics comparability, case studies and print everyone out and then basically assemble for me. The next thing is to go to any association and see what they've got available. The next is to go to Amazon and see what books there are available, the next is to go to clipping service and see what's available, the next is to go to other people who are not competitive with them and see if they've got anything. The next is to look at competitors marketing that might have it in there and normally you don't have to go much further than that. Matt: But one thing you should be aware. It's a dynamic situation. Things change over a period of months. One of the most interesting parts of direct marketing, direct response is something that worked three months ago might not work at all today and it can flip around. You have to keep investigating. Paintings on the wall might be wonderful this year, and might be a total drag (unclear 06:23) Jay: Everything in the world is not, I mean, very little is constant. I mean you know, desire for money, for love, for sex, for, you know fear of death, that kind of stuff is a constant, but the way people can be impacted changes and if you learn that this works tremendously well, the reality of it is combined in the kaleidoscopically unique application that is your market approach or strategic marketing approach. It may bond. That's why you have to test it. Matt: Jay couldn't have sold the mastermind seminar between 97. Jay: I couldn't sell anything. Matt: Yeah, you just (unclear 00:15 track 8) marketing lab, you did the internet thing. We did a lot of stuff, but you weren't always happy with, because you have such grandiose expectations but he couldn't have (unclear 00:29 track 8) it all because the market climate was such that people didn't believe in a basic business model. They believed in putting your stapler on the internet and doing an IPL.
Jay: And money profit wasn't a relevant thing. It was stickiness, it was visitors, it was impressions, it was quick throughs... Matt: And right now, all of a sudden people-Jay Jay:(Unclear 00:50 track 8) it's hilarious, everyone wants me now. I'm busier than I've ever been in my life. I got more people because fundamentals the Warren Buffets School of business is pretty damn popular. Matt: Yeah I mean, you know, people were booing more in Buffet three years ago, I mean things change, you have to-that's the interesting part about the business. You can't stick with anything forever. Anything Jay: But you can-it's a great, great, great guide host, but it's not a certainty, Matt: Jay's one of the great historians of direct marketing. He's been studying everybody whoever started anything. He has a reservoir in his mind and on his shelves of everything that was ever done in the whole history of marketing. Jay: I've got a lot of stuff, but.. Matt: Well I (unclear 01:33 track 8) being the point, but he only slightly because he owns licenses and stuff that have been out of print for years. Robert called your letter book for one thing. I mean, and he revived people like John Caples, anybody heard of John Caples? Probably from Jay, tested advertising methods of fathers of this-Jay put together-Jay, because techniques that maybe out of fashion this year or this decade are something you should test again from time to time to see if they've come back in and everything goes through a cycles so that's I don't know if that's a good answer. Jay: Okay, good, I bet it helps a little bit. Audience: It does, thank you. Audience: Jay and Mac, you have to imagine for a second that we've kidnapped your families and we're holding them hostage. Jay: Which one? Family number 1, family number 2, or family number 3. Audience: Everybody, they're all... Jay: The answer's going to be relevant. Audience: They're all locked up in the back room talking about you. Jay: Okay. Matt: Then they're all dead! Jay: Okay.
Audience: And your key to get them back is for you to dig deep and express to us the one core mindset or belief or a way of looking at life that if we adapted it would have to biggest impact on our success. (Audience applauds) Jay: That's a good question, good question. And I'll try to do stream rather than think about it. Can I give you a composite answer or you want... Audience: Sure, whatever you think if we took it on, we would make a difference in our life. Jay: The first one is from today forward, you don't interact with anybody if you can't make them better off because that moment or that hour or that presence or that meeting or that conversation wouldn't really make them better off, it didn't add to their quality of their life, whether you smile at somebody at the elevator, whether your stopping to listen to the lonely maid or whether you're just acknowledging somebody, because that's the first thing. You're focused on how and what areas can I give more value to my clients and you basically don't think you know squat and you start basically becoming so obsessively almost fascinated and interested with everything else everyone else outside where you are is doing and you have the courage and the genuine passion for asking a lot of people a lot of penetrating questions and not stopping at the first or the second or the third level of answer they give you. Mac, you've got a better one? Matt: No sir, but I can say this. A glass in that is that revolves around, well the life in a business philosophy which is that which doesn't kill you, makes you stronger and marketing or business contest there are no failures if you look at it properly only tests from which you learn something. Jay: That's great. No test, and if the test is devastating to you you didn’t learn, you test conservatively at first because I don't care how cocky or competent you, your partners, your board of directors your banker your husband, wife, supplier is things don't always do what you think for the worst and for the better. I mean if I showed you the stuff that made us the most amount of money I wouldn't have guessed it. If I showed you the stuff that didn't work that I loved, you would be surprised. I couldn't discriminate, or wouldn't have taken the, loss on but the trick is there is no loss if you do it right. There's no reason to spend $100,000 if you can get the same answer for $5000. There's no reason to run a full page ad if you can run a quarter or just a headline first and see if it works and if you do that, you'll have a lot of little losses that won't amount to (unclear 05:38 track 8) but when you find the winners, you'll roll them out and make so much money and when you decide not to be static and do it one time and never do it again but build and build and build. That's how you build a strategic business. Okay? Helpful? Audience: It was excellent, thank you. And your family will be waiting for you when you. Jay: I'm glad I can keep paying for the schools.
Audience: This is back to the basics question for you Jay. We agreed that we would like to develop your prowess power and unseemingly instant ability to write copy. Can you give us a step by step process so that we can all become Jay Abraham copyrighter. Jay: Yeah, I can't, I can't, but it's not going to be something you're going to do overnight. I really didn't get it. I had natural ability but I didn't get it until 1976 or 77. it's when I met Dan (unclear 06:22 track 8). I was successfully poised but I didn't know how I was doing it. I was working for Entrepreneur Magazine. We traded $15,000 worth of advertising for a day, this guy is charging $15 grand for a day back in 78... Matt: Which was a lot of money. Jay: And he was getting-but his credit, he treated like cash. He organized (unclear 06:55 track 8). He basically made me do three things. He gave me a bibliography in an order, he gave an educational marginal net worth three for the first time, he showed me the meaning of business life and explained it to me that the goal was to bring people in and keep moving them along and selling them and reselling them and he showed me the financial dynamics that he had, he was a mathematician. I used to keep and I lost it, this incredible proprietory thing that he did for newsletters and it was like so mind boggling because he showed me how to do it. This is this... Matt: The progression... Jay: The $15 converted to the $39 and it was wonderful. But he taught me this. He said, here's the problem. He said most people buy a book or they hear somebody tell their principles and they're not dynamic. He said, read somebody's principles first, he told me who to do, then go back and read their biography or autobiography to learn the activities they encountered and the experiences they (unclear 07:53 track 8) to be able to really come up with those conclusions then if possible see if there's any other information you can learn that's even more global and he started off with Claude Hopkins which is the most definitive book I have ever read. He said, read scientific advertising first and he said read it 50 times. It's a little book, it's toilet reading. You can read it in 15, 20 minutes and then read it again. Matt: It's still in print, published by Cranes Jay: Crane Communication (unclear 08:20 track 8). It's called something else too. It's got another something... Matt: (Unclear 08:25 track 8) Jay: You can find it, but then this was the guy, he was obviously and probably still is one of the most brilliant marketing scientist that ever lived. Okay, so read his conclusions first, but don't stop there. Then read My Life In Advertising which is the guy's autobiography that tells every major experience, the lesson he learned and the action and the implication he took from it. So I learned how to
do it. Then he said, read, Taken At The Flood which is the life story of Albert Lasker who was the man he worked for so you see contextually what was going on in a bigger scope and that was the model I translate I think almost intuitively to everything. It's like you'll learn-if I had the time and I'd say, how many of you are really good salesmen or women and I'd bring 50 of you up here and I'd ask you a question and I'd say, tell me first of all what your selling strategy is, then I'd say, tell me how you learned it, then I'll tell you, what influenced you there, then I'd say, what were the origins of that in your life, before you did it. Then go back to your history and I'd keep going, I keep going, what is the word I'm looking for Mac? Matt: Globalizing, I guess. I'd say globalizing. Jay: And I think you've got to do that. So here's how, I’ll give... Matt: Chunking up Jay: (unclear 09:50 track 8) first of all, start monitoring ads that repeat (unclear 09:56 track 8) direct response. If you see an as that runs week in and week in and out and a lot of publications, tear it out and take it home. Ask all of your friends and all of your colleagues and coworkers to do the same. When you start getting direct mail, start saving all of it, but throwing away mail, you don't get more than once. Do you agree? Matt: Yeah, there's one copy and you take it for granted. You have to get some direct selling experience. Jay: Yeah, I did, I mean, get a book on direct selling. If you can take half a day, a week off, go get a job on commission selling something that requires developing selling skills. Get educated by an... Matt: Doing network marketing thing it's easy and.. Jay: You've got to be able to-I sold door to door. I sold business door to door. I sold on the phone. I had to learn that. I was rejected. I had to learn how to over come it, had to muster up the energy. Matt: What the dialogue is like. Jay: How to envision that person. How to conceive of every conceivable verbal, non-verbal explicit, implicit objection, thought, what was going on in their mind until and unless you do that, you won't be great, really, don't you think? Matt: There's what-direct marketing, direct response advertising is a dialogue, a silent dialogue, not a monologue with your prospect, with your customer and you have to anticipate how they're reacting in the process of dynamic flow, your copy. If you don't have a sense how people really react when you sell them stuff, your copy will be academic and miss the point. It'll be, if you study just direct market advertising, it'll be your copy will sound like a history of direct marketing museum. You have to make it interactive in a live sense. You have a-you're
talking even though you may print million of them and put something on the web, you're still talking one on one with someone. Jay:(unclear 12:05 track 8) Matt: It's a human-it's a fundamental human transaction and one at a time. Jay: If you print a million newspapers or if you run it on a TV station that is watched by 10 million people one person at a time, you're talking to one person, anyhow.. Audience: Thank you. Jay: you're welcome Audience: Jay, can you shed some light on maximizing opportunities from consumer exhibition. We are a retail company and we've got wedding exhibition coming up. Jay: What kind of-is exhibition like a trade show? Audience: No, direct for consumers. Jay: So would it be like... Matt: He's talking about, he's thinking about a specific trade show in London, right? Jay: Which one? Audience: It's.. Matt: A bridal trade show. Audience: Bridal trade, not a bridal exhibition, consumers, Jay: Sure, sure, I can. Matt: 12,000 people. Jay: 12,000 people. Okay, well the first thing is you need a preempt, I'll give you three things to do. First thing is you need a preemptive sign, a big sign that doesn't have your name but has the biggest pay off they can expect to get for visiting your booth. At the booth, underneath, you need bulleted benefits, subbenefits and advantages. Third, you need to be able to say something so powerful in 15 or 20 seconds or less that it galvanizes that, would you like your wedding... Matt: What if it's in a 12 story building with separate rooms rather than a show room floor. Jay: Is that what it is? Audience: Yes, but..
Jay: People are going to walk through all these rooms? Matt: Gee, It was just a wild guess. Audience: They will. Jay: No, I don't know. I mean it's like I don't vision what it's going to be like. So you're going to go up and down the stairs... Matt: It'll be like selling in a hotel room to room. Jay: Oh really. Matt: Yeah. Jay: And individuals will come? Matt: Yeah. That's what he sells. Jay: Are these individuals consumers? Audience: Yes. Jay: That's a weird consumer show. Matt: I know. It really is. Yeah. Jay: Are you sure? Audience6: Yes, we've done this before and they go up to the top floor. Jay: Your attending, are you putting it on or... Matt: No they're exhibiting. Audience: Exhibiting. Jay: Okay, so can you bring models, can you hire models that are really attractive in white dresses and men in black tuxedos to walk up and down and have signs on their back? Matt: Hand out, visit our... Jay: That's number one, number two, can you have a wedding in process, like you can have fun ones going on, I mean weddings every hour on the hour but run... Matt: That's a terrific idea. Jay: Let me think of some more. Can you go to everybody else that has a booth there that is not competitors to your and make a deal with them if they tell everyone to go to yours also that everyone that goes there, you'll give them something like that, can you, this reminds me of Roxanne, the movies, remember
Steve Martin when he was listing the whole list of ways you could better insult his nose. (Audience laughs) Jay: Let's see, what else can we do Mac here? Matt: I think that-the issue comes is that how do you make people-you have to drawing of a sweepstakes so that you keep people, if there are so many rooms and so many shows... Jay: There's got to be neater than most people give away. It's got to be neater than what most people give away. You go to the owner of the whole thing and you pay a premium to put a special sign like preemptive, like draping in front of the whole building saying register for a complete wedding for you, your whole family, all accommodation, I mean, what are you selling, what's the product? This is not a universal-unique one. What do you sell them? Audience: Wedding clothes. Jay: At what price point? Audience: About 1000 to 2000 pounds. Jay: Okay, and if you do really well, how many will you sell. Audience: I think it's follow up afterwards because. Jay: yeah but how many will you sell if it works out? Audience: If it works out, we might sell 200,00 to 300,000 pounds. Jay: And what will you make on that? Audience: 100,000 pounds. Jay: Okay, only 100, really? Audience: Maybe more. 150. Jay: Sure? Audience: Depends how many we can (unclear 16:24 track 8) Jay: You know the tax authorities aren't listening. Well you could probably, I mean, if you know that there's that much at stake, you might be able to go out and negotiate with a hotel that normally charges let's say $500, we get the time of the year that they'll do it for $100. A lot of different things, put a package a gift together so different it blows the mind of everything else and then pay a premium to the promoter to have a preemptive sign there and then pay a premium, pay a rental rate your talking about what does the booth cost? Audience: About 8000 pounds
Jay: $8000, how many booths will be there? Audience: I think about 150 exhibitions. Jay: How many of those 150 will be competitive to you? Audience: About 30. Jay: 30, so 120 won't, right? Okay. 120 won't. You have men's clothes or women's clothes? Audience: Both. Jay: Okay. So 120 don't have that, if you gave them 120 times $200 is what? Matt: it's 24,000. Jay: 24,000 or 2,400 Matt: Thousand. Jay: What is your budget for the whole event. Audience: I think 20,000. Jay: Okay would you be willing to spend 30? Audience: Okay. Jay: Okay, you know what, then give me 10 grand right now! (Audience laughs) Jay: So, what would happen if you went to those 120 people and you said, I want to write you a check for everything you paid for this booth. I think we can do it if you refer enough people to us. Here's a check right now as advance for 200 pounds and here's a sign we want to rent and put up. Here's the things you give them and you work out something like that. Mac help me here. Mat: I think your idea of getting prime position by going to the promoter of the show by paying extra is actually probably the most powerful thing you sell. Jay: Did that help a little bit? Audience:Thank you very much. Random speaker: I've got a weird... Jay: you're welcome. And try fortune cookies. Random speaker: I got one...no, no, two years ago we started getting a bunch of phone calls out of the blue from brides and we thought well why would brides call us? We started sending out catalogs to brides and so we asked, why are you
calling us and two year ago, Martha Stewart in her magazine before she became a criminal... Matt: She's a pre-criminal, she's not a criminal yet. Audience: Before she, you know, whatever, she said in her catalog a great idea I think for a brides is the idea of customizing fortune cookies and giving them out as table favors because you want to be non trendy. So we had tons of brides start calling us and then it continuous, about 20% of my business actually from brides and so what they do is coordinate instead of giving out chocolates which every bride in the world gives out, they customize and put their wedding colors, so if they're having a pink or a purple wedding, that's great, they use, a pink and a purple and like they break up the fortunes and are like on my side I have a ton of wedding fortunes that brides have done, like they break it open and one fortune says, “He loves, he loves me not, he loves me, we tied the knot. Sharon and Dave 1999,” you know whatever your, so maybe and idea, this is a weird idea, not to get you to use me, but maybe you go to the promoter, you say, will you give these out, I'll give them out to everybody and so it's a nice little theme for the show on one side it promotes whatever the promoter wants to do on the flip side, maybe it drives them to your booth for something, I don't know. Matt: Yeah, that's great. Think out of the box. Audience: Jay, my, sorry, Mac my question is. Matt: That's right, Jay's here in spirit. Audience: Oh, Jay's in spirit, well that's great. First I have to tell you all my original question was and I'm sure you'll identify with it, it is Jay, if there's one more thing that, and of course you all know what happened is that somebody else asked the question first. So I related this to one of my passions which is martial arts. The typical martial artist debate is my judo beats your tai chi or my karate beats you tae kwon do and they get into this argument about one having intrinsic value over another right without really addressing... Matt: Sounds like a (unclear 20:52 ) event to me. Audience: Right, so in a situation where the concept is right and someone's offered (unclear 21:02 track 8) the other guy said he was holding Jay's family hostage and the position that I had was good, because I was going to deliver that question last in line, it was going to be the last question of the night, you know get a big laugh and you know, be appropriate, the last big thing. Mastermind to mastermind, how do you address that situation if you've got a client who has been pitched on the strategy of preeminence, how do you compete against the strategy of preeminence? Matt: Well, I would go low. That's a high card. I would play a low card. I would say, is that what you want, preeminence? Do you want sales? I'll get you sales. I'll get you profits, I mean I wouldn't try to trump preeminence and (unclear 22:00 track 8) super preeminence. I'd go practical, I mean, but that's just a sales
instinct that's not a, I'm not sure that fits your philosophy. But you can go high or go low, it's an interesting game, you can go anyway you want. Audience: Thanks Mac. Matt: Sure. I don't know if that's a satisfactory-I'll ask Jay again. Audience: Mac, how would you address the question if a person has the ability to earn a lot of money, their poise to earn that money, but they don't feel like they deserve the money, whether it's after they've earned it to keep it for themselves, or the value on their service, they don't feel it's even worth paying for. How would you help a person develop the confidence to earn the money, the worth to keep the money and to use the money. Matt: Most fascinating question. First thing I have to ask is why do you care? Are you talking about yourself? Audience: Yes. Matt: Okay, because otherwise, it's... Audience: And actually in the martial arts, it's probably one of the most common challenges that I've heard. Mac: That's a wonderful question. I think that you at some point have to go out and say that the course that you've chosen on the money does not have great energy for you in it. I think you have to be an energy hawk and maybe if you say that, it isn't right for you. I mean, I wouldn't go against that, there's something, you know, is money the motivator, find something that has the karmic payoff that you want that may or may not have the money. Why force yourself to do it. Life's short. Follow your energy, follow you joy. I don't see why you need to make yourself do the money unless you have a strong debt to someone and that maybe enough of the motivator. I don't think you should force yourself. Audience: It's not so much as forcing it, it's the concept of... Mac: Confidence? Audience: Yeah, I think that's what it is. Mac: But what-self worth? Audience: Yeah. Mac: you know, I have a feeling it's not-that maybe the case. I suppose the most powerful thing is to examine your soul and find something you want that that success will buy, something that is satisfying to you that that success will buy maybe you want to start a foundation for autistic children, I don' t know, but if there's something beyond that that is something that you can only get by going through that path, I think that might dissolve of the self confidence or motivation issues, because I don't think self confidence exists in isolation. I think that's-it's a motivational question rather than a sheer confidence question.
Confidence you build by going on and taking on a series of tasks and proving your competence to yourself, but I think you're talking about something else, so that's the course that I would suggest. Audience: If I can direct the question to Jay. Mac: Jay this is a very interesting question he asked. Jay: What's it? Mac: You mind restating it? Audience8: Sure. In regards to feeling a sense of worth, feeling worthy of receiving the money once it's been made or knowing the ability-having the ability to earn the money, but stopping yourself or once the money has been made, to not feel deserving of having that money. How do you overcome that? And why do you feel that you deserve to get paid? Jay: Okay, that's a great question. Well I'll tell you my answer and again, I've never thought about it, so I'll give you a pretty sort of a stream of consciousness answer. I feel like I receive compensation for/after and only by making people's businesses and personal lives so much better. I don't just feel it, I know it, because I have taken the time to analyze and measure and assess the value I give and when I saw that it was not adequate, I think Mac will honestly say-then I stopped it, didn't I. Or I improved it or I made it up. Now I'm not perfect. I've failed to do this but I feel very good. I know with certainty frankly that everyone in this room and everyone who's left if they would have gone through any of those home study, I mean those preparatory stuff and they would've watched-it would be impossible if they signed up early enough for them not to have already made more than it cost. I know that if you go through even just the very wonderful workbook that we created for you because I took it from materials we sell for $10,000 that it's impossible for you not to do. If you know that what you do-if you don't know what you do, the first thing you've got to do is immediately go home pick out the best most recurring or highest paid satisfied client you've got or patients and get him on the phone and say, I want to ask you some questions that I don't think anyone's ever asked you. It's about your relationship with me, it's about the service or products you get, it's about the impact it has made and would you answer me if this isn't good, can I do it in the next hour or so, and you call him up and then you say, here's the question, first of all, “Do we make a difference of any kind to you?” and they going to say yes or no and if you say, I want you to be honest. It maybe is just a convenience. if they yes-is your business is better off because we're in it. So, how, why, what have we done that's been, what do you find most valuable? What's the impact been? How has it helped you in anyway that can be measurable financially, psychically, has it saved you money, has it made you money, has it made people stay that cost you money to replace and we can quantify that. You start stretching so you do it for your reasons, this is a killer, it makes them appreciate you more, it makes you appreciate you more, do you understand that?
Audience8: Absolutely. Jay: And you record it and you transcribe it and you listen to it and you read it and you disseminate it and you say look at what we do. When we choose right and we render, serve right, we help increase people's productivity 20%. We keep people, we keep two thirds the people leaving (unclear 29:05 track 8) and that saves them $100,000 a year and you calculate too. When they answer a question, you extrapolate. I'm being a little bit abstract, is it too confusing Mac? Mac: No, no. I think that's, I have-but if you go through everything that Jay talks, which is a rational proof to yourself. Jay: You've got to prove that you have value. Mac: But if you go beyond that, I just thought of a great book that a friend of my mother's wrote, it maybe out of print but it would be worth while (unclear 29:30 track 8) chasing down. It was called Fear Of Success by Dr. Leon Tec. Tec with a, he was Hungarian, it had one of those (unclear 29:40 track 8) marks on it, I'm not sure what it's called and (unclear 29:44 track 8) languages, but it's a great little book. He's a very cultivated man and musician and a psychiatrist too, was a very insightful and practical and funny guy. So if you need to go beyond what Jay-the practical proof to yourself, he discusses some of the issues that maybe holding one back which usually are engrained fear of disapproval for success within a family set up. You may lose love, because you're successful beyond the expectations or wants of your people, of significant value in your intimate setting. So it's an interesting book, if you want to go touchy feely. Audience8: Thank you, you just made 6000 miles and $6000 worth it. Thank you. Andy: Jay, can I add one piece to that? Mac? Jay: Please do. Andy: Okay, over here. Jay: Andy, please. Andy: One of the things that I notice with salespeople is they start to get a level of success and I hear them say things like I'm making more money than my parents ever made and they start to feel guilty about it. So just pay attention to are you becoming more successful than you ever thought you could be and one of the speaker, I think it was Mark Victor Hanson yesterday said, pick worthy goals and so one of the things that I find help people is find a fantasy that you want to make become real and go make it become real or if you're going to pick a worthy goal, find something like a couple of weeks ago I was in Cambodia and there was a hospital there that for just a little bit of money you could save the lives of like 250 children. Okay, so take a little money and send some money, so more than just pick a goal, go somewhere and actually see it action and you'll find that sharing the wealth is a pretty worthy cause.
Jay: You know, couple of other things. This is how important that I'll deal with it a little more. I've give you a couple of other and I think we all sort of give all of it differently. I believe you really get into this concept of seeing the higher cause or purpose of what you're doing being much different than making money, number one and then you've got to achieve it to really fulfill your life's purpose. Number two, you start living in the transactional future of when your product or services are at work in somebody’s life, number three, you take the time, go to people, go to your clients, get to know them, it's very exciting. Go to your clients, meet them, go meet the people that are using them, I mean, I had a client who was an attorney once, remember Sheldon (unclear 32:29 track 8) from the protege? Mac: Yes. Jay: He was this killer brilliant personal injury attorney, he only did medical malpractice, he wouldn't even take a client until he would go and live with them for at least three solid days and make sure he really respected them and he felt that he learned their life, he appreciated how they'd been harmed, hurt and he was really, he emerged himself. We had another guy who was a criminal attorney. I ask him how in the world he could do it, he said, I will not take anyone one I can't find something that I really like about. He may have raped pillaged and plundered, but he loved his mother and it may sound funny but he would find something. You've got to find something that connects you at a deeper level than just monitory. You've got to realize you've got this driving goal to protect to enrich, to enhance. I just think that's really and you've got to love people. You've got to love people and probably the other thing is you can't take it too serious. You've got to have fun. You've got to do what's moral,what's ethical, what's equitable what's right, but you don't have to do what everybody else does. You're not judged by anybody but yourself and whoever, whatever higher you know whatever you believe in. I think Mac, don't you? Mac: Yeah I just thought of another set...
Jay Abraham Mastermind Marketing 34 Audience: ...money in every month. So he feels that he doesn't deserve that much. I asked him, "What do you do at IBM?”He is in charge of something related to power. I say, “Probably you are really good at what you do," because he is very good with people. He does his job really well, he is good at his job. I ask him, "If nobody did that job, what would happen? How much damage would it cost IBM?" He says, "That's a lot." So what would happen to your clients if they don’t use your service? Your focus is that you are valuable for your clients. What would happen if they don't get it? Speaker: The other thing is you could just hang out with some base-ball players, they don’t have any trouble getting paid big bucks for doing nothing.
Audience: This is related to what he asked you, just two little quick things which will helped because I had major money issues too; big time, for years. There were two things that really helped me a lot. One is seeing myself as a waterfall; that energy is coming through me. It doesn't matter whether it’s monetary energy. As long as it's flowing outward, I don’t have to even hold on it. If people have issues with holding on to money, then let it flow through you. You can look at it that way. Another trick I did too was, that looking at instead of as money, just looking at it just as a number. What I did is, when I get email from my merchant account batch every day, just say, “Okay, well it's 1500 a day. Okay I want to be 2000 tomorrow, 2500 the next day and then 3000, 4000 and then 5000.” Looking at it as a daily thing because there was a number that was coming into me every day and I could just detach that it was even money and look at it as a number and a goal and it turned it into a game. Audience: We are a disaster restoration contractor. We are up in Northern California. We do a lot of commercial work and we are pretty strong regional player. Most of our work, obviously comes from the insurance companies. We are calling on the large insurance companies now. How do we reposition ourselves against our national competitors who are going to those guys and saying, “We are a one-stop shop [unclear00:02:21.19]." Speaker: Do you offer the same array of services? Audience: Yes absolutely. Jay: What's the question? Audience: We compete with them, pound for pound. How do we reposition when we go into calling these corporations because their USP is... Speaker: Are you priced equivalently? Audience: Price is equivalent. Speaker: Is that your choice or not? Audience: Yes Speaker: Service delivery is actually the same? Audience: It's the same or better. Question: Yours is or theirs? Audience: Ours
Speaker: You are saying, because of their branding, they get the work? Audience: I am saying, because of the consolidation, some of these insurance companies would rather deal with just one company that can go national. That way they can deal with them in Kentucky, New York, California... Speaker: Insurance companies are not all the same. But they are also simple organisms. They have basically one set of stimulus response. They respond for all practical purposes, if you cut them the price... Jay: But also, be pragmatic. Start with who wouldn't. If almost all of them would rather deal with the national one and there are a hundred insurance companies. If most means 80 then figure out the 20 who wouldn't, then start there first of all. Speaker: Can you offer a set of services that will save them money. For instance we had a dryer fire in my house. The insurance company had a rapid response team that came in and did an immediate smoke remediation. They didn't even ask for underwriting or anything, they just came in and did it. I think it probably saves them tremendous money waiting for somebody to come in and do the thorough job. Could you be quicker to the mark? Audience: I don’t think we can be any quicker. Jay: Can you add certain services that are highly profitable, that most insurance companies would have to pay for and make yourself a proprietary? If everyone is the same but there are three different other services they have got…what's a typical job size? Audience: It can come out $60,000. Jay: $60,000. What is the profit? Audience: 45% GP. Jay: So you are making about 26,000. What else do they do before, during or after what you are doing? What don't you do that has to be done either before, after or during? What don't you do that transpires around the service? You do these services but you don’t other services that go along with, after before - what are they? Audience: Maybe, consulting. Jay: What kind of consulting? Audience: Disaster planning
Speaker: Okay, what if you had a disaster consultant that was worth $10,000 and on every call they got up $10,000 worth of disaster consulting free. Speaker: The obvious thing is, establish better rapport. Do you even buy them lunch? Jay: How many insurance companies are there in Northern California you could deal with? Audience: Probably, 35 tops. Jay: Are those 35 do you know the decision makers in each one? Audience: No Jay: In trying to get an answer, we are being a little bit surreal because you came to us for help. I was talking to a dentist. When I address a bunch of dentists about four weeks ago. I was supposed to give them my three way and they besieged me to work on two things. Getting more referrals because the referrals were down 40% on average and getting more people to go forward with their cases. The first thing I said was, "Do you have a referral program at all, in place?" They said, "No," I said, "Then get one." Next question. First thing, is to figure out who they are. Then contact them Speaker: Contact them and ask them, what's not getting done right. Jay: Remember what Jackie Hall said. Say, “What did they do to get your business that we didn't? I am not saying get every business but will you help me maybe get some other business from another person's competitor. I want to learn.” What would you say we need to do to get your business in the future? Not just price; what services, what’s your biggest frustration with whomever, what the perfect disaster service look would like. What other services are there, packed in for free, and would just be to die for. You think that wouldn't help really? Audience: No, it’s good, Thanks. Audience: First I want to thank you for changing everybody's lives here, I think. It's been incredible. Jay: Oh, you are very welcome. I thank you guys for sticking it out. I am sorry that it's two o clock but for one day in your life; it's not a big deal. It will pay such compound dividends and I am so proud of all of you and I suspect, 90% of the people that aren't here, is not they retreated to their
room, they had to drive home. I appreciate you on tape, when you get these, we are very impressed with all of you. Audience: I know you can do 86 hours and you have done a lot less than that. So once we leave here, what are we still going to be missing and what should we be looking for? Jay: Everything that you are missing will pick up on the conference call. Here's what we are going to do. I am going to give you an easy way to build a strategy. Then on the first conference call, we are going to hopefully - get the tapes by January the 15th. If I were you, I would really make a concerted schedule on your calendar over probably; maybe not three days. It would be killer if you said to your spouse or your significant other, alright I am taking off...you can’t afford three days, given it's a weekend; take off half a day or whatever you can, go in early and listen to it in big chunks. Have your pen and your pad, your previous pad in hand. Make lots of dual things - connections and questions. There's going to be tons of new questions, new issues, new thoughts that you are going to have, that you didn't have before. If you can submit them in advance to Carl or Rick and I could sort them; most universal most unique - it will be a lot more productive. I’ll knock all of those out and depending on what we get covered in the next half an hour; I may or may not go into more strategy building with you. Then, we'll figure together what you didn't get, because you'll know. You will listen; you'll compare it to whatever the promise was. If we are short on something, we'll use the calls to do that. The good news is you haven't begun to meet the kind of people I have, as expert friends, have they Mac? Mac: No Jay: So what I’ll I have to do is figure out what I or the experts haven’t given you or what you still need or what new breakthroughs I have realized or have come to me, because I have all kinds of experts constantly coming to me. I have the ability to do some nice things for them so I can get them unhedgingly, not trying to sell you a darn thing, to get on the phone and let you pick their minds clear and since you don’t know necessarily the best questions to ask, you’ll have me advocating for you. If I hammer them in and push them and ethically bribe and tell them what a cute guy he is or what a beautiful tie he's got, I can get Mat Ross also on some of the calls, what do you think? Mat: You mean I can keep the tie? Jay: If you really want it to, sure. You'll give me Q and A. We'll should have peer confirmation where many of you will have gone out. In that two or
three weeks, before you have our first call, you'll take in, what I'll teach you to do with your strategy here. You will have found couple of easy, quick, very low effort, low risk, and low cost ways to try it. You'll have validation that you will share just like the 502 case studies you will read when you get home. You will share it on that first call and that will inspire the others of you and you will still be able to be in the mindset of being open, intimate and vulnerable. You will be willing, if you don’t get it or if you are afraid to take action or if you took an action and didn't get stellar result; to be candid and honest enough to say so. Either I will help you through it or more hopefully your peers will, who have already done it. We'll keep doing that, and doing that, and doing that, and doing that until, a year is gone, does that make sense? Audience: I was wondering, has anybody heard of the book, 'Science of getting rich?' Jay: Who is it by? Audience: The science of getting rich, it's by Wallis Wattles. It was written about 90 years ago. Jay: Is it really great? Audience: its 60 pages long. Jay: Can you summarize it, in case we can’t find it? Audience: It talks about how to bring - it's bringing out of substance using a certain way of thinking... Jay: ... like manifesting something? Audience: Yeah, manifestation - it's a certain way of thinking that is connected to being poor and a certain way of thinking that is connected to being rich. It doesn't really have to do how much you have got in your pocket, because there are poor communities that have relatively Jay: To understand something, I'd interrupt you for a minute. Wealth true, pure, real wealth has denominated in so many bigger areas than financial. You need money to pay your bills. You need money to gauge, I guess, some measure of your commercial success. True wealth is denominated in many forms, as you'd hopefully have gotten the opportunity to understand, demonstrate it and reconsider; in this environment. When you realize what true wealth means - I was telling someone Mac, and I’ll tell you guys this too. I made more money when I was younger, not because I wanted to make money but because I was obsessed with seeing businesses be all they could be, sounds like the
marines, get all they could, impact all they should and really reach their fullest potential. I went through a divorce and I had a seven figure overhead. I tried to do everything to make money and I did very, very poorly because I was obsessed with making money. I then decided, screw that, I am not having any fun anyhow. I am going to find people I like and purposes that really make me feel like I have made a difference; I am not going to deviate from that and I am not going to please everybody. All of a sudden I gained enormous psychic wealth and guess what, with it, as a wonderful unexpected by-product. My financial wealth grew. I don’t know what your book says but Audience: It's a small book. It's kind of a recommended reading on my website. Jay: Where can you get it? Audience: You can get it at scienceofgettingrich.com Jay: Okay, so somebody's reprinted it, that's good. Audience: There's a little forum as well. The reason I have mentioned is because it's an issue of worthiness. It talks not only about the science of getting rich but what the attitude, we need to have, in regards to money. I am not sure if this is in the book but my concept of being wealthy is a sense of not being in the state of lack. So even if you have a million dollars, if you feel you have not enough, then you are still poor. But if you have just five cents in your pocket and you feel you have enough; then you are rich. Jay: Thank you, I was reminded with the quote I started with - two days ago, about; it's not are you worthy of the goal, its if the goal is worthy of you? The goal is whether you can do so much more and you can't realize that - You have to do more. Do you want to let a lot of other generic competitors to serve, steal productivity, profitability, protection, enjoyment from people because they under-serve, undervalue, undercontribute to them. Do you want to let that happen? Are you amoral enough to let that kind of an atrocity happen to well deserving, trusting people? You can't. What's wrong with being rewarded after that, nothing. But the reward is the bonus; It’s not, in my opinion the goal. Don't you think? Audience: I just wanted to share the benefits of a few thousand dollar research I did with this group of diehard-success entrepreneurs. It has to do with copywriting. The gentlemen asked earlier and Mac gave excellent answers to it. The reasons I got back up here is because, almost everything that Jay talks about; you talk about leverage. If you can write
good copy, you can find someone and judge it; it shows exponential results. How many people in here would really like to learn to write better copy, which might be beneficial for them? Just so I know if I am wasting your time. I spend about four thousand dollars this summer buying all the courses I could and trying them out to find the one that really understood at a deeper level. I read Claude C. Hopkins. Do everything that Jay says. Is it appropriate for me to recommend a specific course here, now or should I have them come see me at my table. Jay: Who is it by? Audience: Michaels Masterson's course. Do you know it? Jay: I don’t know it. Is it a good course? Audience: It's very good. It's a home study course. Jay: I really respect that somebody came up to me and said, I want some help but can I send my book for critique, I don’t want to sell it to anybody. The intent of all this is to contribute, not to mine the wallets of one another. I am not saying that's what your purpose is. I have no problem with that. For you it's the best thing to do. For you it’s very purposeful. I encourage everybody to investigate, examine and check it out. Also, one of the things [unclear 00:03:44.29] didn't talk enough on - he's wildly incredible on due diligence. Mac: He needs to be. Jay: The point is, he really is. I watched him do some incredible things and he taught me how he looks at deals. Mac: Good Jay: You guys should look carefully at everything, including books and things that you read. Audience: So should I tell them what the course is? Jay: No not right now. Audience: Ok Rick: Hi Jay, my name is Rick. I am a success coach and I deal with anywhere from people that are professional NASCAR champion drivers, all the way to the brilliant minds in Hollywood. My question to you is this. I was hoping to hear something about people that invent products and they patent them. I have a client right now whose biggest problem is that he
has great stuff but his biggest fear is he doesn't want to spend half a million dollars on patenting something. Mac: Why doesn’t he do it himself? The US patent office has a great online presence. You just go to US patent office, click on it and its self guided, it will take you through it. Rick: No, the question is. Thank you for your input but the question is that he's biggest fear is to invest all that money, or go through that process and have a MeToo company come and create his product? Mac: If a MeToo company comes and creates his product/process and he has it patented, they will all give him a lot of money. That's what patent means. If he gets the patent he has the rights to exploitation of that product. If he is afraid of being knocked off he should find himself a good lawyer but that’s the process. He maybe doesn't have to spend his half a million dollar. Rick: He thinks there will be a MeToo company based on Jay: He's not going to do anything? Mac: Life is inherently risky. Jay: A lot of time the first one in isn't necessarily the one that wins, so what, if he hedges his bet, does his services himself, what's the downside. If he doesn't want to do, he can flip it. He can get it registered and go out and sell it; joint venture. Usually, mostly people don’t look analytically and pragmatically enough. In the world today; United States, North America, The Western Continent, all the way to you-name-it, there are affirmatively so many companies that need works from you and what you or your client has got. You just have to find them out and present it in a way that they see it as the solution to their problem. Remember what I read in the strategy pre-eminence? What you are really saying is, this person is so afraid of being knocked off he won’t even try. Mac: Does he even know it's a patent application process. Has he explored what's patentable and what's not? Jay: Did you understand how he can protect it? Maybe some of his patents aren't that original. He should go for it and find out, shouldn't he? Rick: I absolutely agree. Jay: Well there’s your concept. Rick: Okay thank you.
Lauren: Good morning, everyone. My name is Lauren. I am actually a high school student. I am seventeen years old. Jay: Are you having fun? Lauren: Oh, very interesting. Jay: From where? Lauren: Algrove, California near Sacramento. Jay: Good deal. Lauren: I was curious, what job markets should I get into? Jay: Let me tell you what I tell my son. I am going to give you a theoretical concept. He's never done it but it's what I would do if I were a seventeen year old. I would sit down with the Yellow pages. I would cut out the first couple of yellow pages that have the descriptions of different kinds of industries or categories. I would then go online and look up some websites that describe what those categories do. Then I would think about myself and I’d make a list of, as much as I know about myself; what I am? What I like? What are my talents, strengths and weaknesses? Then I would overlay my very superficial sense of what those kinds of industries were to see if they seem compatible to the skill sets or the passions that I have. I would shortlist from 400 to 25. Then, I would get the major Yellow pages of 25 or 30 major cities. I'd find 4 or 5 companies that look meaningful in all those cities. I would call up and ask for the name of the owner of the president. Or if it's a category you decide you want to be, like an architect or musician, I would then call and I would be honest. So I'd say, "My name is," What's your name? Lauren: Lauren Shostrum. Jay: I’d say, "I am from," where? Lauren: Algrove, California Jay: "Which is close to," where? Lauren: Sacramento, the capitol state of California. Jay: "I will never probably be a competitor to you but I am seventeen. I am on the precipice of my career. I am getting ready in a year to go to college. I have a lot of choices. I want to not just be strategic but I want to be purposeful and fulfilled. There are a lot of people I have observed; my father has shared with me him get to being 40 or 50, building a business and they are unhappy or in a career which is unfulfilling. I'd like to
honestly ask you a few questions that might help me make a better career decision and it's the kind of thing I think you'd probably hope that maybe your son or daughter might either have done or could do if they were in a situation like this. I will be forever appreciative. If you are kind in giving to me I will promise you when I am in a position to do so, I'll be too happy to do it for someone else that I can pull up that you clearly do." For most people, if you do that from the heart, whatever words you use, will say, "Yes, I have done this for lots of people." Then you ask if you could do it now or could do it later. You ask them a few questions. Number One, do you really still like what you do. Do you love what you do? Do you love what you do, more than you love who you do it for. Would you go into it again if you were doing your life over? Would you recommend it to young people as a career? What's the most fulfilling and exciting thing about it. What's the most frustrating and limiting thing about it. What are the best attribute, skill sets and character traits to have to make it really successful? What's the most dangerous ones' they have to make it miserable? Who influenced you most about this? What do you think is the most important attribute, trait I have to work on or master in my education? How would you start? Questions like that. You do that 25 times in 20 different industries you have got a hell of start. Don't you think? Lauren: Oh yeah. Jay: Does that help? Lauren: Heck yea, Thank you so much. Audience: (Applause) Jay: Mac, should we tell them the secret. Building strategy is not that hard. We are going to build you a strategy really quick. You can do a lot more. The first we have got to do is realize you have options. They have a lot of options, don't they? Mac: More than they know Jay: You got to first of all figure out what strategy if any you are following right and why you are doing it. There are numbered questions in the workbook, aren't there Rick? Rick: Yes, there are 24 pages of strategy type questions. Jay: First thing you have figure out, what you are doing, what you are not doing. Why are you doing it? First you have to figure out, what now is my strategy, if anything. Why am I doing it? Is that not only sensible but is that the highest and best strategy that I could be doing. You can't answer
that until you start looking at and listing alternative strategies. You can't list strategies till you figure out what you really want for and from your business. A lot of people will say, "I want it to be the fastest growing business;thebiggest business in the world." I'll say, "Why?" They'll say, "What do you mean?" I'll say, "Are you doing it for ego, are you doing it for money, do you want to sell it, do you need power you think?”They don’t know. If you are just doing it for money, why would you want to manage 400 people if by changing the product mix or the residual value or getting better back-ends, you can have one-tenth the number of employees, onefourth the amount of inventory, one-twentieth the amount of management headaches and make the same amount of money. Does this make sense to you all? You have to consider the options, the alternatives, the choices and the possibilities available. The easiest way to do that, I think; I am going to tell my idea, you tell me yours, is it okay Mac? Mac: If I have one that's different than yours. Jay: Then you start looking at the other options out there. If I were you, I would start by doing a bunch of things that are cool. You can go through back-pages of things like Forbes. A lot of those will tell you what the strategy of a lot of people are. I would highlight them and type them out. I would go through a list of all of the business models I could look at and understand. What do you think Federal Express' business model and strategy is? Do you want to pick up on this? Do you have a different approach? Mac: I am just interested in yours. Jay: I am looking at some easier ways to start. What I do is different. I have my mind so wired. I have so many experiential possibilities I go, cross-reference, look at it, and pass it by a lot of subconscious reference points and experiences. I can, BOOM! DING! Out comes an answer. But I don’t think most people can do that, do you? Mac: No, not the way you do it. No one can. Jay: I got a lot of experiences to draw from. What I would do is start from Mac: But I do think that there is, after you do the work, at some point the process will go, just like Jay said. You will deliver your answer. It won't be Jay's answer but it will be your answer if all your research and subjects are aligned. Jay: Say it again, because I am sorry, I was making a suggestion...
Mac: I was just saying, that I think the same process that if they do a part of that exploration and immersion in their options; at some point their unconscious system will kick in and will generate. Jay: At this point in your life, you probably won’t get everyone but as a group you can share your 20 or 30... Mac: Another thing is, I think Marc Victor had a part of this but, I use a similar technique when I worked with someone and I am stuck on that. I say, "What do you want to do, just tell me, now?" Tell yourselves, now. If the reason comes out, not so hot, maybe revaluate it. If it's a reasonable plan with a reasonable motivation that can be sustained, then do it. You can adjust; you don’t have to stay with it forever. Jay: You could change the rules and play the game differently anytime you want. Right now you can change your strategy today and you can change it tomorrow, change it until you find a better one. Mac: There's a very interesting principle called the law of requisite variety. It basically, when it all comes down is the person with the most option wins. If you have a lot of options and you know your options, you can pick the best course and you will win. Jay: Did I tell here, that I did two things back to back. Did I tell the story of the cubic zirconium? Mac: I don't know. Jay: Did I? Audience: No. Jay: Let me just give you a difference between one strategy and another, then you can start looking at things. I have two friends. Both of them are fascinated with cubic zirconium - synthetic diamonds. One of them was a world-class copywriter of massive distinction. The other was a world-class strategist and was a very discreet guy. Copywriter number one, who is brilliant and renowned sat down and came up with a really cool concept called the Beverly Hills Diamond Company. He had a really great AD. He ran it in newspapers across the country. He was selling a one carat; lose cubic zirconium for $39. He was okay. He made about 20% of his money. He was [unclear 00:00:21.00]. He basically gave up and got tired because he made a few tens of thousands of dollars and gave up. Friend two was a super strategist. He understood the difference between a tactical approach, a stupid strategy and a great strategy. He sat down. He wasn't as good a copywriter but he was millions times better strategist. He came
up with a cool name. He was called Van-Cleef-Tiffany. Which is an amalgam of Van Cleef and [unclear 00:00:52.13]. He had a Vance Cleef Diamond which was a proprietary equivalent of a cubic zirconium. His AD was 80% as good as reference case number one. He didn't make money; he lost money on the stone. But the first person strategy was, let's sell cubic zirconium and do something else. Friend 2 who was a super strategist, when you got the stone; along with it were a couple of things. First a letter; you'd open a letter. It said, "Congratulations! The good news is you are probably almost shocked by how much more brilliant, dazzling, sparkling, radiant, fiery the Vance Cleef diamond is. It's so much more alive with beauty, much more so than a normal diamond. Number two, it probably appears to be smaller than you probably thought. It's not because we took advantage or ripped you off, it's because a Vance Cleef diamond has more density. It has more weight per unit volume. Because we have found that the vast majority of our clients, once they see how beautiful these stones are, want to upgrade to five and ten and twenty carat stones. Then they want to have them set in beautiful and majestic rings, bracelets, earrings and etc. As a service, to protect you from over paying, we have gone out and negotiated wonderful arrangements to take the gorgeous five, ten, twenty carat stones and set them in beautiful, fourteen, eighteen, twenty-two carat settings. Because of the inconvenience of sending it back, we are only too happy to give you double credit, if you'd like to exchange it up.” The difference between strategy A, which made about three or four, ten thousand or twenty thousand dollar per month, happen to be privy to the dynamics. Strategy B, which made the friend of mine, 25 million dollars is a pretty big difference. Don't you think? So you might want to study different people's strategies and then, because you are now extrapolators, fellow visionaries, importers of other people's ideas and thought processes; ask yourselves, can I apply that strategy directly and if so, how would it look and what changes would it make to my business? You sort of do a kaleidoscope until you find certain ones that make sense based on a couple of critical factors. Number one, really knowing what you want and what you don’t want. I believe you don’t really know what you want until you first find out what you don’t want. A lot of times that is experience, but you don’t really step back and acknowledge or verbalize it. Number two, I think you have got to do some soul searching. Lot of the people in this room, it's not at all anything to be shameful off. You are really into a lot of this for a lifestyle. Maybe you don’t know it, don’t you think Mac? Mac: Possibly.
Jay: I think a lot of them are. That doesn't mean [unclear 00:04:21.00]. I just spent years; if I made two or three million dollars and my overhead was a million, I'd stop. I do a seminar till I made a couple of them, then I'd stop and have fun. Didn't I? Then one day I realize I am 54, I have got seven children, I've got a younger attractive wife. I have got a brain that happens to be very blessed with enormous mental acuity but any moment I could have a blood vessel burst or heart goes pop or any number of things. My intellectual capital has no monetary value at all. I want to turn it into equities and joint venture asset streams. You've got to figure out what you want right now, but all things being equal and Jay Abraham being master of residual leverage and minimum downside risk, it seems in all true candor that if you are going to do it anyhow, you might as well go for the maximum residual value - the maximum control - the maximum asset value - the maximum sellable value. I have got to tell something. It’s a question that may pain you a little bit but I am in such a lovingly giving mood, I am going to tell you something very candid that I don’t say that very often. To tell you the truth but 99% of the people that have come to programs like this to me or coming to have me help them grow their business - make it better - save it - turn it around, they ask me to that; they don’t say, "Jay, should I stay in this business? Is this the highest and best use of my time, my opportunity, my passion, my purpose, and my possibilities? Is this is the vehicle that's going to give me the most joy, the most profit, the most sustaining cash for the most freedom?" For a lot of you it isn't. It's not something bad. It doesn't mean there's anything wrong with poising your business to sell it, but you can't sell until you put a strategy of sales and exit-strategy. Am I being confusing? Mac: I don't think so. Jay:Does this make sense? Audience: Yeap. Jay:We promised you written strategy but what I have you do today is write down the answers to all the questions and start a quest. This is not a setup. I have a very simple philosophy. I can't tell you about the things that I am doing, like not self-serving; that are economically beneficial to me until I give it a certain amount of value. I am almost there but I was about to tell everybody, when there were 650 in the room, that we are doing a $25,000 strategy setting, super summing it. Either in the end of March or the end of April, we haven't figured it out yet. We want to do 25 people and we'll do it for 25 grand but you can delightedly come and we’ll give you a full credit for this and give you a $10,000 discount and you can pay the 10 grand over a year or so, because we want more quality people.
As we have been trying to put it together, I have been looking online trying to figure out who’s got good examples. One of the things we are searching right now, which are hard to find, are investment analyst reports. They are pretty good at summarizing what someone's strategy really is, in a paragraph or two. No one thought about that. I have read lots of them and already find a lot of examples so I say, "Go to a bunch of investment strategy analysts". Don’t you agree? Mac:That's true. Jay: We collect a lot of stuff from Forbes. We look at companies that we admire that are the leaders. You can go to all their trade publications and see. There are a lot of frustrated editors who are flattered if you call them and they are not too busy. You can ask them a lot of questions. Who’s the best performer in your industry? What's their strategy in a nut-shell? Who do you think distinguishes them? People don't understand. I am insatiably curious for two reasons. I love to learn more than I love anything else because I know I know so little and I expand my possibilities, options, leverage, and competitive advantage by knowing than everybody else. I have more options. It's hard to pin me in a corner, isn't it? Mac: Yeah. Like Spider-man. Jay: I can figure a way out of anything, can't I? Because I have exposed myself to so many options that I can create the most effective, the most powerful strategy. If that strategy isn't working as well as the superior one, I know how to move into it and transition and bridge. You have options. If you don’t know what they are, think about them. A client of mine, years ago before I met Mac, was one of the world's leading expert in, rental property. I didn't talk about this, did I? Mac: Not to my knowledge. Jay: He had a very simple philosophy. I was very impressed with him. He said, "Once you decide you want to decide a piece of rental property; a house or a multi-family unit. Don't you dare buy anything until you first looked at a hundred. If you don't, the first thing you are going to look at; you are going to go for it because you want to buy a rental house. Only by looking at a hundred do we see the better options, the better sizes, the better lots, the better assets, better deals, better terms, and better future growth potential." I'd say the same thing to you. You would go, "Oh, what should we do today?" I'd say, "First let’s maximize the stuff that's going on right now because it’s in place. Or, let’s stop it, because it's costing us to work. We are losing upside leverage”. While I am doing that, using some of the money that came from it, I will search out options. The one thing I
would encourage you to do, now you are going to have each other's name and everything, is take an oath to figure out 50 or a 100 different business model strategies and then share with each other and share with me. I will give you something great for the collection. It will save me from some trouble. Then you will have a palette to judge from. You will find that when you do that, as we are finding there's probably a 50 or 100 or less; true let’s say, macro strategies and their nuances. From those macro's, you can probably carry out the Pareto Principle and find 20 that most likely seem like the most adaptive to you. Again, the assumption I am making which maybe disservice to you or disrespectful, is that you probably aren't operating right now which what I call the Optimal Business/Marketing Strategy. You maybe but I think it's highly unlikely. Don’t you? Mac: More than likely why they came. Jay: Also, being honest with you, maybe not now because you might mentally work through and impute it that its fate what you are doing in business. However, most likely 80% of you - if we had the time and if we had the energy, and I am willing if you guys want to go for two or three more hours to bring you up and do a mini [00:03:36.08] and prove to you but I bet 80% of you aren't really tactical and your strategy isn't strategy but you don’t know it. Want to take that bet? Mac: No. Jay: Right now, you got all the answers. What I do first is right down the questions I gave you. Anybody did a good job at writing them down? Audience: I am tired. Jay: You are tired, I respect that. You did, you want to go to the mic and read them so that everyone can write them down and start working on them. Jay: More fun than what? Don't tell me about Raggedy Ann Proprietors. I don’t want to hear that. We are getting close and you guys are great. I am very proud of you. It's not as hard as you think but it's - why jump to answer when it's the wrong answer. It's taken you five years to get to this, another week two or three - is it ever going to make a big difference. A friend told me this one time and it's indelibly embedded itself in my brain. It's pretty profound and I'll adapt it to this. I'll tell you the story. I was working hard, trying to make a lot of money so I could support my then two kids and my twenty year old wife and our very non prosperous life style. I was working every night until twelve or one at this company where I didn't get a salary. I just got the piece of a performance. The guy worked late hours too but you have to be a multi-millionaire. He was rewarding
me but he did one very noble service for me one night. He came out on a Friday. He loved money and very much a workaholic. I became one sort of accidently by his influence. He said, "I am going to tell you something which I shouldn't, it's going to be important. The odds in five years of you being in association with me are about nil. The odds of what you are working on right now being relevant to your life are about zero. You'll look back on this it will be like a pimple on the pickle of time and its inconsequentiality. I would encourage you to have a more balanced life." I would tell you this if you don’t get your strategy formalized in the next few days or before you walk out of this, given the fact thatyou have twelve months of access to me and some of my friends who I end up being on the call be it Mac or other people you have got or new people I introduce to you, who I pluck out of the world because they owe me favors. I get them to work on strategies elements that are above and beyond my understanding that they can articulate clearly. What I would do right now to figure out what in the hell you are doing. Why are you doing it?Whether or not, it really is the right thing to be doing? What business are you in, why are you in it. Whether you should be positioning it for maximum success in short term. To get out of so you can use your time, your effort, your capital, your new found marketing wisdom, your compassion for humanity at a higher level or not. How many other options you have got, how many others - directly or indirectly - translate it to your business and what difference it might make in results and competitiveness. What you should be doing with your time to basically going from great to brilliant. I am getting a bit tired, Mac you want to fill in because I don’t know if I gave them a good idea or not. Audience: (Laughter) Mac: I think the strategy, of picking a strategy initially and trying it out, is the right strategy. Don't say I only have one path because as the dictum has it, "If you don’t know where youare going, any path will do." Have some alternatives. Look at least two or three things you could do and pick one. Jay: Yell Out, where is your favorite place to just luxuriate and recreate? Audience: (inaudible) Jay:Let’s take Mexico. Let's presume I have got a really beautiful timeshare in [unclear 00:04:33.29]. It's glorious, majestic, it's up on a hill, it's magnificent, there's nothing around, it's private and in a gated area which is really cool. If we want to go there we have a lot of options. We can drive part of the way. We could take the train, part of the way. We could take a boat, here goes there. We could fly and stages. We could fly on one
location and drive. It depends on the adventure, the experience that we want; the time we have to do it and what gives us the most joy visually? Whether it's getting there or the process of going there or a combination? If we don't know then we are probably not necessarily picking the best one. I think we need to know ourselves better. I think what I have tried to teach you is; to not be afraid to know yourself and to like or love yourself and love others. Mac: May I suggest, because in the interest of time, that they pick their best strategy from their list of strategies and the exercises they have done from the last couple of hours. Jay: Have you guys done anything in the last couple of hours that have produced a germ or a foundation of a different strategy to think about? Any of you thinking about giving strategies? Yes Audience: Yes Jay: Okay then we will start with what you already know and then go around the room and share. Mac: Yeah, maybe we should go around the table and maybe we should come down from the Olympus up here and talk. Jay: I get a little philosophical. I have been pretty good most of the times Haven't yelled at anyone. Somebody give him a list. Read through it. Audience: Okay, what's my strategy now? Is that my highest and best strategy? Jay: Also, Why? Why am I doing it? What is it, why am I doing it? Audience: What do I want from my business? Jay: Isn't it wonderful if a bunch of people hear the same thing, they get different things they hear and write down. Audience: What business are you in? What are all the options and choices you have now? Audience: Look at the back-pages of Forbes for strategies - other resources for additional strategies. Go through a lot of business models that you think you can understand. Jay: What I meant to say was make a list of the most successful and nonfanatic businesses that you know. Fanaticism is something; I don’t think most of you really want. I look at companies that seem to be very well
organized and consistent and continuous. See if you can write down what their strategies are. Anything else you got? Audience: Think about what you want to do? Jay: As opposed to? Audience: And what you don’t want to do? Jay: Good Mac: Or what you are supposed to do. Jay: What else? Audience: Then you said answer the questions and start a quest. Jay: Write that down. Answer the question and start a quest. Anybody get anything different? Audience: What should I do with my time to be truly diligent? Jay: Based on those three most important things and seven different things in ranking - good - that's right. Okay, that stated and writing this down, we'll make this the exercise we will work on our first conference call, but now let's do something different. Let's take the two or three strategies that you have come up that maybe popped into your mind, based on what's happened today or even anything else that is different than what you are currently doing. Pick right now the one that makes the most sense as an extension, a modification and as a replacement of the one you are currently using. I like your tie; I didn't notice that, that’s a beautiful tie. Pick that one and go around your table and present it, then we'll do one more thing and we'll wrap.You get to meet some really - cools my, I thought, cool's a pretty cool word. It's like, things are really cool. It's funny, neat, interesting, fascinating, poignant people. You'll never see somebody like William Herby that was from the heart. He's never done that like that before. You'll never see most of the speakers speak at this level without trying to sell you anything. Without trying to hold anything back. You'll never see Bob Allan trying sell his book to you because I asked him too. You'll never see in the last minute a [unclear 00:00:49.04] getting team 1 setup in a day so that we can have it here, even though it didn't work perfectly and not charge us so we can demonstrate that to me. It wasn't for you to see, it was for me to get excited about it but they wanted to show me how committed they were and you'll never get somebody like Jackie Hall who was not going to do it who we asked to do it. She drove and would sit there and had fun with it. She has a process. She gets paid $75,000 to $250,000 per client. She simplified it and if we
had a little better communication I would have gotten even more of it. You'll never get people to tell you everything that they are doing and how it applies to you. You'll never get people to be as contributing. Now, you have got to take that wonderful, wonderful, unique, rare and probably wondrous experience and replicate it every day in your own circumstances. I got about twelve people, maybe more; I'll have to count; who make this possible. I sit around like an eclectic mad scientist - very giving, very loving - but not quite as easy going as I probably may seem. I can be very tough. I am the worst of all worlds. I am the imperfect perfectionist. I have trained my mind over 30 years to see only the utmost leverage and event and I make people feel very frustrated where I just want to go higher and higher. When they were doing the event for you where they had to tell what their biggest breakthrough was, I said, "That's great but that's not the highest leverage". Learning what's working for everybody else is an incident. That's real, that's like ten times more leverage. I made them do again. I don’t want to let you down. Truthfully it's not about you saying thanks to me, it's a model for you. I could have done half of this and you would have been happy. I didn't have to stay up last night till four and I don’t have to be here. I am not saying it so you appreciate me; that's not necessary. I want you to appreciate what you can do for others. Do you understand that? What you must; and it will be evident. Hopefully you'll have a good feeling about me. You won’t be able to have a similar kind of feeling about you. Not because you sleep deprivate but because you pull out all the stops. You can only do it one way. It's the right way. Like Spar and I have a trait. He would not do three more layers. He won't let me have that right now because I made him bring it. I wanted you to see the versatility. He said, "Jay, it needs five or seven more layers." He does it layer by layer. He said he couldn't give it to me, even though we trade it. He's getting my services. He can only do one level the best. He knows he'll steal from himself if he didn't give you the best. That's a very good model. I would steal from myself if I didn't acknowledge everybody who made this look so great. I got a list and I hope I do this right. First of all nobody would be in this room if Carl Turner wasn't superhuman amazing, not selling a marketing machine but consultative, noble most trusted advisor of them all. I want to thank him from the depth of our hearts. Carl, Thank you. He really cared. Audience: (Applause) Jay:Carl couldn't have done this without - you have no idea the coordination and all the different majestic and mind boggling variables I create for the poor man to try to shuffle and I insist, it’s like I promised
forty days and forty nights that we are behind. We have all these experts and all these wonderful contributions. You would have been happy with three or four but we had sixteen and I said, "We promised I’ve got, we got to get them out." He said, “We could use them for something else." I said, "We can't, that wouldn't be ethical. We got them for you, we got to give it to you, whether you sign up or not" but coordinating all this is incredible. Tanya; Car's assistant, has been like amazing. She's coordinating and doing remarkable things. She's got things I wanted to add - "One more workbook, one more workbook" thirty, forty grand a piece. "One more!" She got is done. I started doing the strategy and pre-eminence thing and I thought, "Damn! I wish I would have edited before." I didn't think about it until - because I change my mind in the middle hours of the night, I thought, "Okay, what's almost as good?" The chapter of my book isn't anywhere close to as good but it's very clear and compelling. You can read it every morning when you get up and every evening when you go to bed and I thought, "Take this and get it done", "Okay no problem, I'll stay up all night. I'll sit there with my eyes sort of half-open leaning against the coffee machine at Kinkos coz it's important to you". And she's done that for Carl all along, Tanya, thank you so very much. Audience: (Applause) Jay: I am very, very blessed. I have a daughter who - I was very young when I had my first set of children. I wasn't very close to Michelle but she came back in my life and got very involved in learning how I think and trying to understand all my good points and also my bad and buffering, the irrational, emotional, spontaneous - I have a slightly acerbic side and I have a jig-saw tongue that unfortunately could slice somebody to smithereens ifit’s not kept with a shroud over it. She’s a good buffer for me. She's a wonderful person to use my mind-set and methodology constructively to compel and inspire people like hotel managements and printers and things. To do things they normally wouldn't and she’s really wonderful. She's made a lot of this possible by thinking all kinds of connections for you that you wouldn't know would have made this a lot less joyous. So Michele if you are here, thank you so very much, I love you. Very proud of you. She was uptill four o' clock for two nights in a row. Audience: (Applause) Jay: The hardest job of this is trying to be that of a, what I am going to call, it's going to be the wrong word to colleague but it's more of a like a prodigy side-kick. I am the kind of person that thrives on doing - I mean I have got so many relationships - I am very, I can multi-task. I can multitask like 20 things at a time and keep track of them but I am a slob
and I don’t have a lot of time for people and I am very, "Okay, let’s get to the bottom line and give it to me and move on". Rick Duress took on the owner's responsibility of supporting me reading all the support documents trying to figure what I wanted without me talking to him and then me second guessing him. Constructively critiquing him for things that he had no idea that I wanted because I didn't tell him. But after the fact I saw it was what I wanted, he wasn't like, "Oh Shit! Screw you, you S.O.B." But he didn't say that, he said, "Okay, we'll do it right". He's a glorious man. He left his family at home. He flew out thanks-giving weekend. The weekend before that and the weekend after that to make sure not only everything was created for you; workbooks and everything else, but we set the criteria. We set the bar for the speaker so they could only operate at their highest levels of glorious greatness. Levels they really don’t perform at for most people. Because we expect, we draw, we bring out and we only allow greatness. And he helped make that all possible. Every day, every night he is coordinating, he's facilitating. He's watching me being emotionally volatile about things and he's handling it nicely because he knows I don’t really mean it and I get over it. He's a wonderful man, he's given fully. He understands a lot of things. He's really made an incredible contribution to you in ways you don’t know and he should be acknowledged greatly because a lot of things you've got there is because he stayed up for four five hundred hours doing things which he wasn't even paid to do. He wanted to do it to be a part of it. So you should thank him a lot. Audience: (Applause) Jay:Debby Byers, Carl's other assistant is just done a herculean job of everything that needed to be done for Carl, for Tanya, for you guys. She did it. We sent her somewhere, she'd do it. You needed something sent, she'd do it. You needed something emailed to you, she did it. You need something followed up, you needed something to confirm, you needed to coordinate it - she did it. She's up right now, it's almost four o clock. She's here. Debby where are you? Thank you so much. Audience: (Applause) Jay: I am not renowned for doing a lot of sensory, really impactful stuff. I am renowned for being an intellect who is sort of in the ozone dolling out highly intellectualized and cerebral knowledge that I hope, somehow you'll figure how to tort things down. When I decided to do this program and decided to make it a really special experience, I kind of asked Spar and asked him to bring, not some of his art but everything from his home. And the art he was doing for others. He did it. When I looked at I thought,
"Damn! this is pretty impressive. What are we missing?" I thought, "Music". Because I am not really into music but then I had a bund of music brought in and I was listening to it the night before and found myself, "I am not very good at it - dancing, dancing" - I was a dancing machine and thought, "If I can be a dancing machine and I don’t dance, what could I do for you, because you all have rhythm". So I picked all this music. We started playing it. Poor Dave is trying to coordinate people who were switching seats and changing power loads and speakers were not necessarily perfectly balanced and we just got feedback, nobody knows. Me going *check, check* when he's going *check, check* - things are popping. Albert Plasseo, who’s come to tons of our programs just ardent and wonderfully gifted devotee. I know he's helped us with all kinds of other things, he jumped out. He became the musical director. He coordinated - he found the music. He's done nine million things and he needs like special double secret acknowledgement. So, clap, clap, clap. So thanks a lot Albert, you are great. Audience: (Applause) Audience: ...you tell us which three were yours. Jay: I did, you were in the bathroom. Audience: Oh... Jay: Can you guess again? Audience: My guess would be that one. Jay: I would like that one, he won’t give it to me. If he will that would be. Audience: Go and buy it, you can afford it. Jay: You think he'd miss it if I just took it to my room. Audience: Nah Jay: He probably doesn't have an inventory Audience: That looks like a tie of yours. That looks like; you and other tie is over here. Audience: Okay, my guess is right there, that one, right there. Audience: Oh, who else is in the bathroom besides me, sorry. Jay: I like the tree too. It's a rose on the top. The grapes in the back. The two cylinders one at the front and he's got two nudes and I have five or four or some number other ones at home.
Audience: That one here. Jay:No, but I wish it was. I like that nude and that girl and the nude out there and if he'd give them to me, I’d take them. Audience: It's a lot safer being a married man. Jay: No, my wife is waiting for the nude too. Somehow we started with I was supposed to get the nude but I ended with a heart. I don’t quite get it. Audience: You are looking at this. She's looking at the hands. Jay:You see them as hands, right? Audience: (laughter) Jay: I guess it's half full half empty, isn't it? Let me continue because I am going to fall off this. I am a little bit tired too. Albert's lucky to have someone else in his life who's really cool and helped out massively including helping us. Leece, where are you? Audience: She had to go home. Jay: She did great. She worked on us and she was wonderful. Gary’s hardworker where are you? Hi. You have done great things. Audience: (Applause) Jay: Carlton where are you? I can't see. I am going to read all your names. Rita Davis, Andrew Hargider, Karen Anderson - she's wonderful she watched my kids. She does anything that needs be done. Terry Friedrichson, my assistant. She's not used to staying out doing thing. She's pro acting, she's coordinating, and she’s smiling. I am not easy to deal with. Audience: (Applause) Jay: Very lovely person. She's got the most wonderful personality. You want to have an incredible auditory sensory experience, call and ask for Terry and listen to her. Happy jovial, hopeful, joyous, just invigorating smile and voice comes across. It's to die for. Annie Labas. She's our most trusted person and she's amazing. Justine Swallow, Tad Hardgrave, Will Green these are participants. Faith, Michele Green, Will's Daughter right? Earl Savilson - you all here? You guys are great and the way you guys have helped me a lot. Without those people most of this wouldn't be possible and they have stuff to do when we are done. We got a lot of other people and I hope I do it justice. In order. Mac Ross has been with me four almost every mastermind marketing that I have done. The only one he wouldn't
have done would be Australia probably. In this one I didn't even let him give the content. I tried him this one. It started out as just being one that's going to be done just to my list. I put together a killer list, don’t you think, of experts. It didn't allow us to do everything we wanted because we didn't think that was important is breaking through your mindset and strategic and all kinds of other connected issues that I felt would make my marketing material so powerful. Like with the preparatory stuff, with the stuff I gave in the workbook, you won’t believe how good that is. With the surprises we gave you. You are going to have more content than you know what to do with. Without the mindset, it's like having the hardware without the software to drive it. This is going to change everything. Mac has got more to give and he's like no non-sense but he's such a wonderful man with such a breadth of perspective. He would have gone, that night with you, till four or five. He’ll do whatever it takes for you to give yourself the outcome you want. He's a remarkable man that I truly admire.
