A Lost FREE Recording from 2 Marketing Geniuses
(No transcript available… but see my detailed notes below.)
I totally ADORE great marketers. Because they’re usually also great sales people. That’s the kind of marketer I want to be because that will only help my business.
A great marketer – not a lazy dime-a-dozen one – can really, truly help you line your pockets.
And if you don’t believe me, listen to the following podcast in which Tony Robbins picks the brain of legendary marketer – a guy interviewed in Success magazine repeatedly and consultant to some of the greatest entrepreneurs of all time – Jay Abraham.
You WILL go to the darkside (that is, believing in marketing) when you hear about things like:
- How Abraham took 2 businesses from abysmal profits to multi-million dollar profits… in 18 months each (one of these companies even got acquired for $10s of millions)
- What “leverage” means to the world’s most successful & innovative marketers
- The ONLY 3 WAYS to grow a business
- How your own expertise may be getting in the way of your business success
- The biggest mistakes even successful companies make when they run another ad
- The 2 questions Jay asks clients who pay him millions
- Why he’s never, ever taken a risk
- And tons more… all free thanks to https://www.thegaryhalbertletter.com
This is insanely powerful stuff for any small business, startup or online marketer.
LISTEN HERE, via The Gary Halbert Letter
Here Are My Notes from the Interview
I don’t have a clue how long the interview is. Maybe an hour and a half?
I don’t know because it doesn’t say… and because I paused the thing so many times so I could flesh out my notes, which I’m happy to share with you here.
They’re not the prettiest notes! But they’ll get the job done the way a decent transcript might. (And I’ve bolded some of the really cool stuff.) Enjoy!
Harvest the windfall profit that’s sitting, untapped, in your business.
Peter Drucker says there are 2 qs in business:
- what business are you in?
- how’s business?
When going into a business as a consultant, Abraham asks:
- What are you doing that you’re not getting “leverage” enough out of? Every biz engages in money-rendering processes they don’t even recognize or analyze – need to both recognize and analyze those processes so you can get more money out of them.
- Leverage has either upside potential or downside risk
- It costs you the same fixed amount no matter what you do to market – DM, ads, tradeshows – it all costs X. X is a fixed cost. It has no correlation to how the event performs.
- This is still true for PPC – although you only pay per click, you pay X amount when they click whether or not they buy, and X does not correlate to the amount of the product you’re selling ($2 click whether you sell a $300 product or $3 product)
- Leverage your money in the better way
- What’s the ultimate leverage if your ads perform better?
- Achieve leverage by analyzing what you’re doing and replacing those activities with alternatives that perform better
Things that can be under-performing: sales people are calling on the wrong quality prospects; people are calling on the right prospects but making the wrong proposition; people are calling on the right prospects with the right proposition… but they are not using the right risk-reversal to make it easy to reverse the barrier to entry; can have an ad or letter going and, because it has the wrong beginning or no beginning, it can underperform by 20 or 30x.
Don’t redo ads! That’s inefficient! Test the headline.
“If an ad pulls, the first thing you change is the headline.”
“Make the first statement a statement of the powerful self-serving result the prospective customer is going to receive from availing themselves of your product or service.”
What’s In It For Me: “[People] are buying a result. They’re buying a benefit. They’re buying an outcome that is very self-serving to the end user.” The only reason they let you deal with them is because they see an advantage for themselves.
When I meet people, I ask them: “In a minute or less, what is it about your business that gives great results and greater advantage to your customers than your competitors?” Most say nothing… or they say quality service, dependability, which is negligible – it doesn’t mean anything. Then I ask, “What is the lifetime value of a customer?” How much do you spend on advertising, selling, promotion? How do you formulate that? Of 100 customers, how many will come back if you do nothing? What will the projected long-term value for each customer be, in net bottom line profit?
“Until you know what a customer is or will be worth, you can’t possibly understand how much you could afford to do or spend to acquire them.”
YOUR MARKETING IDEA DOESN’T NEED TO BE “BRILLIANT”
In this example of rewarding your sales team, Abraham said that, by figuring out what the lifetime value was for each customer, sales could be better motivated. Here’s how: this client learned that the average lifetime value for the average customer was $3000, with the first sale bringing in a profit of $200. All the real money is made after the first sale. But the sales team was being compensated only $20 upfront – that is, 10% commission on the first sale. THE NEW MARKETING IDEA: Give each sales person 100% of the profit for the first sale. That will motivate them to bring in more new clients. And then you get to make $1000s without even trying.
It tripled sales.
These marketing strategies don’t have to be HARD.
“Regeneration”: Take dormant resources, use human ingenuity, and turn them into something wonderful. (Robbins)
You have an infinite upside budget if you stop looking at budget and start looking at allocating money to activities that have results
Example of how ICY HOT didn’t pay for advertising; they paid for results/sales:
- ICY HOT: In 18 months, built from $20,000 to $13M
- Sold for 10s of millions to a pharmaceutical company
“The only risk you ever have to have in anything you do is an inexpensive test.”
“Most people don’t test anything”
“Most people make decisions that… impact the fate or destiny of an enterprise, career or life based on conjecture.”
“Every aspect of a business can be tested, measured, examined, compared, improved.”
You should be testing everything. Test:
- 1 headline against another
- 1 price point against another
- 1 way of articulating your proposition against another
- 1 way of illustrating a guarantee against another
Exponential growth with testing! Test results aren’t isolated. They all build your company in massive ways.
THERE ARE ONLY 3 WAYS TO GROW A BUSINESS
How little do you demand out of yourself, your company, your investment? How is that holding your business back?
- Increase number of customers or prospects
- Increase the unit of sale (e.g., what people pay on each sale)
- Increase the frequency of purchase / Increase the residual value that customer is worth to you
- (Give them Air Miles, so every time they come back)
Do any combination of the 3, and you can grow exponentially. If you increase all 3 by 10%, you’ve grown 33.3% – that’s the cumulative effect.
“It’s easier to be successful than unsuccessful.”
99% of businesses don’t do ANY of the things they could to grow.
INDUSTRY EXPERTISE STOPS OPTIMIZATION
What stops people from optimizing? Their expertise! They have TOO MUCH EXPERTISE!
Most people have been in their profession so long, they know it so well… but they only know the industry as it is and how to perform in the industry AS IT IS – everyone in the industry is doing everything the same way because they all learned from each other and research each other. Need a fresh perspective from people who see a multitude of industries (which is why bringing in a consultant can be so important).
If you look at 100 industries, 95 of them have different ways of marketing and selling; marketing becomes a vertical… but they need to steal from what different industries do!
- Every business has ONE WAY of advertising – and they don’t even THINK about the other ones
- If something disrupts that ONE WAY, suddenly, that business is in trouble or goes out of business
“You should never do anything unless you can get the maximum benefit and the maximum yield currently and forever from the minimal waste and minimal effort.”
Everything a business does is a process – which means everything your business does can be measured, quantified, improved. 2 sets of dynamics to measure:
- The dynamics that bring action to bear
- The dynamics that impact the dollars brought in
Identify BASELINE and VARIANCE – goal as a business owner: raise baseline and lower variance.
To be effective, measure what you’ve got… and then find a way to leverage what you’ve got so you can predict your future.
You can’t manage something you can’t measure.
What are you doing with your EFFORT, ENERGY and TIME?
“How much more can you do with the customers you’ve got?”
SANDWICH: Half feeling, half real or perceived actual value
HOW TO GET LONG-TERM PROFIT
Build success on pillars!
Most businesses are “the diving board” – one post holds the board up, and if that post is used better by someone else, it won’t hold you up anymore.
Goal should be to build a Parthenon – that is, to “systematically create your business to be based upon multiple pillars that support it”.
Pillars can be:
- Direct selling
- Telephone marketing
- Joint ventures or strategic alliances
- Different direct selling right to customer
- Joint ventures with manufacturers reps
- Contingency or revenue-type selling with advertisers
If one pillar goes out, it won’t jeopardize your business success like depending on only one pillar will. Multiple pillars give “you unbelievable certainty about the future”.
Are pillars expensive?
“Never do anything that doesn’t produce a profitable outcome for you!”
A FREAKIN’ COOL EXAMPLE OF COMPANY GROWTH
18 months – $300K to $18B ($25M in profit… still amazing!).
The “puppy dog” close – give them something to hold first and it will be hard for them to let go.
Always under-promising and over-delivering.
- Get them comfortable and satisfied with an investment, to set yourself up to…
- Sell them more of the investment, to set yourself up to…
- Take them to a lateral investment (i.e., buy different stuff from you)
How? EDUCATE THEM ALONG THE WAY.
Those who don’t buy after you tease them, go back to them and try new things. Don’t give up!
…And then the interview is suddenly over. Quite sad to end like that… but it was really info-packed, so I can’t complain!
LISTEN HERE: Tony Robbins Interviews Jay Abraham
PS: If you want more great stuff but you don’t know where to find it, look no further! I love going out and finding the best info online and in books… and then posting about it here. So be sure to subscribe to my FREE weekly newsletter and follow me on Twitter!