10 Million Dollar Marketing Secrets

7/28/2019 10 Million Dollar Marketing Secrets

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10 Million Dollar Marketing Secrets

Bill: Good morning. Do we have some sleepless nights here? Yeah, yeah typical reaction at live events, which

were very proud of you know. Anything we can do to inflict discomfort Im very happy about because give you

an opportunity to think about your business and to look for things to take back in order to implement rightaway.

And whats really amazing after we do these types of events the kind of feedback that we get, Bill, implemented

just one idea I learned there that put an extra $600,000 in my bank account. Wonderful to see that. And who

here would like to know the 10 million dollar marketing secrets to instantly transform any business or sales

career? Mr. Kennedy continues to amaze me. Every time he puts together one of these talks Im in the back of

the room glued to my chair figuring out, trying to get every word and then I go back and listen to them over and

over and over again, which also reminds if you havent yet done so you can get the CDs of this entire day and

half for I think just $97 dollars. So if you havent filled in that form then do so.

Your about to hear those 10 million dollar marketing secrets. So Mr. Dan Kennedy

Dan: Morning. CNN reported this as a true story a handful of years ago. Ive since been told by some people

it is not a true story. It does negate my love for the story so I prefer to continue to believe its a true story. And

after all if CNN reports it its got to be true right?

So this was on CNN some morning, I forget the city I was in. And as a speaker I found it entertaining. In

Europe they still have the classic three ring circuses where theres something going on in all three rings.Theres a main act in the middle. Theres a side act over here. And theres a side act over here. So you know

the trapeze artist might be in the center ring at the same time as the lions over here and the clowns in the clown

car over here.

So theres this circus performer in Europe, Franz the Midget, who has been, his familys been in circuses. He

was born and raised in the circus and hes been a circus performer for some 30-years and his act is a trampoline

and trapeze act. And because hes so small and dense, the little guy, he can get going on a trampoline and he

can shoot himself like way up in the air and catch a trapeze and swing back and forth and drop back down on

the trampoline and go sailing even higher up in the air. So thats his act.

So hes over in the side ring on one side. Theres something going on the main ring and over in the side ring is

the hippo act where the hippos get up on bicycles and stuff. So Franz is over here doing the same thing hes

been doing day in day out for 20 some odd years doing this trampoline act. And just about the time you think

youve done something so many times that its like impossible to screw it upso hes doing his deal and hes

getting higher and higher and higher and he comes down and he like misses the middle of the trampoline and

he hits the edge and he flies up, his mouth flies in an arch instead of straight up and he flies over the center act

into the open mouth of a hippo.


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Now the hippos are used to be being thrown fish as rewards. So the hippo gets up on a box, he opens his mouth

and the trainer throws him a big fish and he swallows the fish whole. Well Franz coming in at about 35 miles

per hour feels to the hippo like one big fish and he swallows him whole. So Franz goes from trampolines

through the sky into the hippos and down the hippos throat.

The circus people of course rush, grab the hippo and rush the hippo off stage behind, a veterinarian but its too

late. So Franz has died in the stomach of the hippo.

Now the two things that immediately occur to me neither one is sympathy for Franz by the way. But its just

how I think. That actually didnt occur to me for hours but the two things that immediately occur to me are

number one like any time you like think your having a bad day doing whatever your doing, I mean, this guy

gets up does the same act hes been doing for 25 years. By now nothing could go wrong and this guy, I mean,

he gets eaten by hippo. So I mean whatever is happening to you in your office or your sales calls its nothing

compared to this. I mean how do you even call the relatives?

I mean what does that call sound like? The second thing that occurs to me as a performer, somebody who putson events is the massive problem you now have with your word-of-mouth advertising because see the audience

thinks they have just seen the greatest trip in the history of circuses. This is like incredible. The guy sails

through the air, goes into the mouth of the hippo and disappears. I mean this beats the two guys with the lion in

Vegas. This is real magic here right?

So they are all now going home at night telling everybody youve got to go to the circus before it leaves town

because this thing, the midget, the hippo he disappears. Its incredible. So what do you do now? Do you try

and find a midget a day?

I mean exactly how do you deal with this marketing/public relations problem? This was my reaction to theCNN story. It has absolutely nothing to do with what were going to do here this morning by the way. I just

thought it might loosen you up.

So something that does have to do with what were going to do today. You all probably know this story but it

was a starting point from theI mentioned it yesterday, in the way I approach things and the story is that on the

proverbial dark and stormy night in 1917 specific date has long escaped my memory a young writer, Napoleon

Hill, has gotten an interview with Andrew Carnegie, possibly Americas first billionaire. Theres some dispute

about that but certainly one of the first billionaires in America and Carnegie takes a liking to him and

essentially hands Hill a pet project that Carnegie has had in mind for some time. Carnegie believing that there

is actually set principles of becoming wealthy and successful that can be cataloged and learned and taught and

that somebody ought to compile them all.

And so basically Carnegie says to Hill, I can open every door. I can call everybody. I can get you in to see

everybody whos anybody whos achieving great things in our society if your go spend whatever time it takes

to go interview them all and figure out what the commonalities are. The things that they all do alike, not the

things that they do differently and put it together in some kind of an encyclopedia and Ill make the contacts for

you.


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And theres a lot more to that story but that was the set up for them 20 years at work by Napoleon Hill but

spawned, well the encyclopedia was called Laws of Success but then the book Think and Grow Rich, which

really is a condensation of Laws of Success. And so Hill spent 20 years going and spending time with and

interviewing Henry Ford and Thomas Edison and Heidi Firestone and the list is long and long and long and

long.

And the frame that Carnegie gave him was the important frame and I mentioned it yesterday and that is that the

differences amongst all those people just like the differences amongst you. The differences between Sam

Walton and Donald Trump, the differences dont matter although the differences are what are abundant. The

only thing that matters is the very few things that they might all do alike or least similarly the very few things

that they might all believe identically or similarly. And so Hill spent 20 years looking for those things and

ultimately cataloging 17 of them and Im sure youve read it.

The same approach has been taken again and again and again over the years. Tom Peters original In Search of

Excellence book was essentially Think and Grow Rich about companies. What do these great companies have

in common? It turns out that picking became a little more difficult and so if you go get In Search of Excellencetoday unfortunately about five of the excellent companies are now non-existent companies and so they were

excellent only briefly, which is a whole other topic of conversation. But still the process used was the same.

Gene Landrums work which is not as familiar to a lot of people but if your not familiar you should look him

up GeneLandrum.com. Genes work in the behavioral psych of highly successful entrepreneurs is the same

approach. They round up a bunch of them and put them under a microscope and interview them and talk to

their mothers and their sisters and the people who work with them and try and figure out what are the five

things or the seven things or the 12 things or the 14 things that they all do alike?

The same approach has been mine but unlike all of what I just described to you is fundamentally, academicresearch meaning through anecdotal evidence and interviews and observation only we draw conclusions. My

work Ive had the great benefit of being immersed, for more than 25 years, in hands on work with people who

are, for the most part, first generation rich, meaning they didnt inherit the money. They didnt the start with a

pot of money. In many cases they started with little or no money or a negative pot and made their money

through entrepreneurial and marketing and sales efforts.

And my private client base over the 20 some odd years has included about 250 now, 270 people who fit that

description. So theyre first generation. Theyre from scratch. They started some kind of business and they

went fundamentally from zero to a million dollars a year plus incomes and multi-million dollar a year net

worths through their own entrepreneurial efforts. And rather than just interviewing them after the fact Ive

been working with them like from when they started with the real small pot to when they now have a real big

pot, working with them when they done consulting work for 20 years fortwo guys for example who started a

company that did $10 million dollars its first year and last year did $1.6 billion.

The other commonality is a lot of my people do it fast. And so its quite common for the people Im working

with to have the zero pot today and have the million dollar income 12-months from now, not 12-years from

now. So same process of observation but observation from inside and as they went rather than observation


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from outside after the fact. And by the way interviewing people about it after the fact, sometimes they dont

remember or choose not to tell the true story of exactly what they did in order to get what they are. Its called

revisionist history and so we tend to change that story to make us sound better or more interesting or more

palpable or more acceptable.

And so if you will my research that led to the Renegade Millionaire System, which is roughly $500 million,

$600 million dollars worth of peoples achievements that led to everything thats in my Renegade Millionaire

System was hands on, in the trenches, armpit-to-armpit with them, figuring stuff out and applying it as we went

along. Many of these clients, by the way, have been with me continuously for 10, 12, 15-years and so weve

been together from their beginnings to where they are now. I dont mean to discredit Hill or any of the others.

I just make the point that its different.

Now the commonalities, and were only going to talk about the marketing related ones today, of the

commonalities all of what I call Renegade Millionaires have again this handful of things in common. They

have many differences but they have a handful of things in common and these are the categories of the

commonality that I talk about a lot in the system. So, for example, they have all have a particular philosophy.They have a world view, a view point that is very different from the masses, from the majority of folks. Were

not going to talk about that all today.

The other ones we are going to talk about is how they defy industry in the [inaudible], their overall approach to

marketing, which again is very, very different from just about everybody else in their businesses, how they

approach turning ordinary businesses into extraordinary businesses and how they change the way businesses

are done in their category.

So within that framework well talk about 10 big marketing breakthroughs you can borrow from them that are

their commonalities that you can apply to your business and that you can get some spectacular results from.

So number one is that they turn ordinary businesses into extraordinary businesses. Now what does this really

mean? It means that most people approach business and even come to a seminar like this with incremental

improvement in mind, meaning Im in a coffee shop business. How can we get more customers into the coffee

shop? How can we compete more effectively with the coffee shop across the street? Can we inch up our prices

by a dime? How can we get more people to buy two donuts instead of one donut? They approach it from an

incremental improvement standpoint.

The folks I work with approach it from a very different standpoint. How do we take this ordinary business and

make it something entirely different than what it is now? Although it still sells coffee that is infinitely more

profitable and has unique competitive positioning and so forth. Changed the entire business. By the way the

most common thing, and some people whove had the experience, the most common thing that I hear when I

wined up doing one-on-one consulting with clients is that I got here at 8:00 in the morning thinking I was in

business A and I left at 4:00 in the afternoon now in business B-C-D-E-X-Y and Z. The complaint attached

to that is Dan youve created a whole lot of work for me, which is like my best skill.

So if you approach your business with the question of how can I make it better, how can I make it more


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profitable? How can I increase its sales? How can I make it bigger? I submit to you its the wrong question.

Because the questions themselves have limitations. The questions themselves have an incremental

improvement mindset.

I have a client right now, very large company that, also a very dysfunctional company, which somewhat goes

together. I say the bigger they are the dumber they are. And big companies tend to get bigger and bigger and

bigger and dumber and dumber and dumber until theyre like this giant dinosaur that cant get through the

woods anymore and its bumping its head on every tree and very slow and ponderous. And its sort of where

they are but what they said to me at the beginning of the relationship is, Were doing 30% better than our next

closest competitor in our category. And I said, Yeah. But they dysfunctional too.

I mean its like bragging about being the worlds tallest midget.

You still got to wait for somebody else to push the elevator button if you want to go to floor five. So you dont

want to be comparing yourself to that. You want to be looking, for example, at what should I market share be,

what could our market share be? Not, Oh were doing 30% better than these other idiots. Also we takecomfort in the fact that theyre more dysfunctional, screwed up than we are but thats how a lot of people

approach business. We dont approach business that way.

So some of my favorite examples are Disney and Starbucks. I mean Starbucks imagine being in the meeting.

Imagine being in the meeting where everybody gets together and says, Heres what were going to do. Were

going to sell coffee for $8 bucks a cup and were going to sell it in paper cups that are so thin. Well we got to

give them a little paper wrapper to put it under so they dont burn their fingers. And were going to put a bunch

of really slow kids behind the counter so they got to stand in line a long time to give us the $8 bucks so they can

enjoy the ambience of the European bistro environment were going to create. And were going to complicate

the menu so much that just to come in and order [inaudible] were going to create. You need a degree fromMIT. You need to take a memory course and it may take you a half an hour to make the decision. And were

going to open so many of them that you literally can walk out of one, cross the street and walk into the other.

In fact our goal is to get the point to where were opening Starbucks in the mens rooms of Starbucks.

Now get out your checkbook and invest this puppy. Imagine being in the meeting. Youre going to do what?

Its coffee. And imagine now being in the meeting at say the big dumb company Dunkin Donuts when they see

these guys start. Can you imagine this? Everybody is like walking around celebrating the morons over at

Starbucks who think they are going to get people to pay $8 bucks for a cup of coffee. And theyre still

befuddled. I guarantee you their meeting yesterday was, We got better coffee. And they do but they dont

get it. See its not about that.

So Lynns in the coffee shop business but Schultzs only like barely in the coffee shop business. Thats clearly

not what Starbucks is about. You could spend hours talking about what it is about but we could all agree it isnt

about getting a cup of coffee because clearly theres a lot of places you could go faster, cheaper, better to get a

cup of coffee.

Dominos, that other favorite of mine, Monahan. See it isnt about the pizza. Everybodys got, you


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knowDominos originally ESP was fresh, hot pizza delivered in 30-minutes or less guaranteed. It didnt say

anything about good pizza. Well theres a reason for that.

Well what? Everybody knows you can get better pizza anywhere in America. Will that be in Chicago? I mean

you can be in a middle of cornfield in Iowa, theres a better pizza available than Dominos. They just started

their 10,000th store. He reinvented the whole business because he made it about the delivery and the delivery

time, not about the pizza. Everybody else get in the pizza business theyre also talking about the pizza.

Theyre all having meetings talking about our crust is better than this guys crust and we got a better recipe.

And I said, No, no, no, no. Lets just, and by the way brilliantly, something people dont know about

Dominos, all the original locations beginning with the failing one that he started with, were around college

campuses. So the deliver ESP was really cool because you got a lot of people in them dorms who have smoked

a bunch of funny stuff.

And at some point in time they are desperate for carbohydrates. They are completely incapable of going out

and getting any.

They want them fast. They could care less about good. Very capable of discerning good.

The guy pulls out of the kitchen cabinet, sits on the floor, eats the box of Corn Toasties and the box. So it

doesnt make any difference. So the 30-minutes or less was perfectly matched to the market. Well thats how

you take an ordinary business, an ordinary mundane business in a saturated cluttered field. So when Howard

Schultzs started Starbucks was there any place in America that there was a shortage of places you could get

coffee? Everybodys sitting around saying, Man we're 500 miles from coffee. I wish somebody would open

up a place here we could get coffee.

When Dominos started was there any place where there was a shortage of pizza? Everybodys sitting aroundsaying, Oh my God, you know I havent had a good pizza in 30 years because you can only get one in

Chicago and Italy. If only here in Cleveland there was some place we could get a pizza. Its the biggest

section in the Yellow Pages, biggest one. Pizza, [inaudible]. Those are the two biggest sections.

So there wasnt any shortage. Its mundane, ordinary business made into an extraordinary business. Not an

incrementally better business. Thats a big shift in thinking. I have a quick list here of some people in our

group that demonstrate the principle in different ways.

Two people in the restaurant business who are both clients of a client of mine, Rory Fatt at Restaurant

Marketing Systems. Rene Norris has a kind of restaurant but in a very small market, very small. Diane Kotu

has a pizza place that isnt even dine in. Its take out or delivery. Its gourmet pizza.

Now heres what the two of them have done. Theyve implemented continuity in their restaurants. Continuity

meaning [inaudible] big money. Those of you who are Inner Circle members are very familiar with this

concept. You just wouldnt expect to find it in a restaurant. I forget Renes numbers. I know Dianes. You

join the club and then on the first day of every month you get your credit back for $29.95 until, unless you say,

Dont do that anymore. And you get in the mail $39.95 worth of coupons that could be spent during the


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month on different and sundry products at different and sundry times all incidentally requiring you to spend

more money in order to use them.

You get the newsletter, which really the business should send anyway. You get some special offers during the

month that are for members only and you get a special phone number, this is the Disney shorter line plan. You

get a special phone number thats for members only so that like at peak times when everybodys trying to get a

pizzaso like Super Bowl Sunday the regular line, of course everybodys getting a busy signal. So you can

use the members only line and wait in line for a shorter period of time during the busy signal in order to get in,

in order to order your pizza. Thats what you get for $29.95 a month.

Now if theres 200 members there is $6,000 dollars a month of income on the first day of every month before a

pizza oven has been turned on, a box has been pulled off the shelf, a piece of crust has been made. Thats

$72,000 a year of locked in, automatic income before anybody sells or delivers a pizza. Furthermore it forces

everybody because now theyve got these coupons theyve paid for to spend money all month long. It

increases their frequency of purchase. It increases their repeat visit. It increases word-of-mouth advertising

because they cant use other coupons so they give some of their coupons to somebody else. So really thecoupons dont cost anything. None of it cost anything. The $6,000 dollars a month is 100% net. So theres

$72,000 dollars a month of 100% net created in this business that yeah its a restaurant but you understand its

no longer an ordinary restaurant. Its really about something very different than an ordinary restaurant.

Rene who has a banquet room in her restaurant sells now the memberships in her club, which she has two

levels, the way I sell product from the front of the room to you. She invites people into the banquet room in a

group or does a group presentation and sells them all in the restaurant business. This is how you turn an

ordinary business into an extraordinary business. You leave the core business there, okay were in X. But

now there are a lot of radical things we can do that nobody in X would ever dreamed up.

Paul Johnson and Bob Higgins was here. Bobs in a painting business and Paul was in the back yard shed

business. You cant be any two more mundane, boring, ordinary commoditizedpick something. I mean a

back yard shed. If you go over to Home Depot or Lowes theres a bunch of them sitting out in the parking lot

on skids that you can buy to take home and put up and you can buy them pretty cheap.

Pauls sheds are selling for roughly the equivalent of a room addition. And hes in northern California.

Theyre selling for as much as $20, $25,000 dollars for a shed. I think the average sale price is about $8,000

bucks. Its a shed.

But whats different is the marketing. And so for example somebody calls up any other shed company and

says, Send me some information. They send him a price list and then they send him a little crappy tri-fold

brochure with little drawings of their sheds in it, the specs.

Paul sends a DVD that is a half hour show room aid interviewing happy people in their back yards with their

sheds showing what theyre doing with their sheds. And one person has it as their doll house because they

always wanted a doll house when they were a kid and their parents would never give them one, so now shes

got a full size dollhouse. Its a little creepy but


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Its not like I was going to date her just there to shoot the show. Theres a book that goes in the package which

is all stories of shed shovers, shed lovers.

We call itgot new glasses now my teeth dont work. So this is like the book of Chicken Soup for the Shed

Lovers Soul and its these big emotional stories of these people who are, who say, We got out of this shed

business. We got into the emotion business and we made price irrelevant.

Doctor Charlie Martin was on my list, hes a cosmetic dentist in Richmond, Virginia and Charlies average case

size last year was over $35,000 dollars. His biggest case I think was $112,000 dollars last year. You could go

into any dentist in Richmond, Virginia, probably any cosmetic dentist in Virginia, quite possibly any cosmetic

dentist in the tri-state area and get quote the same work unquote done for 30 to 50% less.

Now the first requirement to set across the desk from a patient and quote a $70,000 dollar fee is the same

requirement the copywriter fees. It is the ability to maintain a straight face when you quote the fee. But you

have to go practice that in front of a mirror. Its a thing you dont take for granted. Its the same skill that

injury lawyers have when people come into the office and five members of the family have been hit by a trainand theyre telling them the story of how the lawyer has to go into the mens room, lock the door in the sound

proof room and go, Ca-ching. He cant do it in front of the client because it follows them.

So theres a certain thing you want to do with your face. But beyond that I dont think; now Charlie is a very

good dentist. Hes an outstanding cosmetic dentist and Id go to him as my dentist. I get on an airplane every

time I go to the dentist in order to go there. And I hate getting on airplanes. But I dont think hes a 100%

better than the next closest cosmetic dentist, I doubt it. But his practice is an extraordinary business. The way

the patient is handled, the environment from the grand piano playing in the lobby when you arrive to for the

female patients, the paraffin treatments, the massage chairs, the on and on and on and on.

I mean how do you know youre in a dentist office until the first time, you know. Painless dentistry by the way

means its painless for the dentist.

Bill who spoke to you yesterday, so I wont be labeled the point, but see by the time he got done with the

meetings, with all the marketing for his menswear stores the only thing they had in common with every other

menswear store was they happened to sell mens clothing.

But the business wasnt about that. The business was about by appointment selling. The business was about

direct marketing. Now the remaining story of the business is about a membership that people have to pay for

the privilege to be able to come in and buy things.

Darin Garmin, Im going to talk a little bit more about Darin but Darins an interesting guy because hes a,

fundamentally a commercial real estate broker in the middle of Iowa. He sells apartment buildings and

commercial properties in Iowa, which is probably the least exciting place in the world that you could be selling

real estate. I mean like Vegas, Florida, high rise condos, water, 400% appreciation, celebrities, Florida real

estate, 80% of which he is selling to investors from California, Florida, Las Vegas, Tokyo and last year 73% of

every commercial transaction in his marketing area went through his office.


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Why ordinary business to extraordinary business by going from local to national, by selling what it is that he

sells to people from outside of his market area instead of those inside his market area. Everybody has some

kind of rule about their business. All of our customers come from four square miles around our place.

Everybody always tells me their rules. All of our customers come from four square blocks around our place.

All of our business comes from within our city. All of our business comes from within this demographic. Well

thats how you keep an ordinary business and make it incrementally better.

You figure out how to get a few more of those people within that four square blocks and do business with you.

And you figure out how to stretch the four square blocks to five square blocks. But if you figure out how to

stretch the four square blocks to the globe now maybe you can do something. Dont have time to talk about Al.

Second big idea define industry norms. Now Ill tell you something about this, not only do the most

successful people I work with defy them, they take a perverse personal joy in doing so. So not only does it

have practical payoff, theres a certain psychic satisfaction from driving everybody else in their industry,

profession or niche stark raving mad, befuddling them, having them aggravated. These people take a perverse

joy in this. But heres why its so important to any industry norms. Heres what conforms to industry normsguarantees average results.

Because industry norms are all based on the average, the median, what does everybody do? So heres how

everybody gets in a business by the way. So whatever business youre in heres what happened when you got

in. The same thing that happens if youre in junior high school or high school that you transfer from one school

to the other. You spend your first few weeks looking around to see how are things done around here.

What do the cool kids do? How do I conform in order to be accepted? Thats what everybody does when they

join a business. So when you got real estate and you got in dog grooming or you got in whatever it is you got

into you pay attention to what everybody else in that business was doing and you made a point of conforming.Every real estate agent in the office has their picture in the top left hand corner of a business card. Guess what

your business card looks like? Its got the picture in the top left hand corner of the business, business card.

And if you get in ambitious about making that better you get a better picture. You dont decide, Im not even

going to use business cards. Screw them. So that you dont think about that. You just think about, How can

I make the business card better. Not, Im not going to have a business card.

I havent had a business card in 25-years. Everybody always ask me for a card. I say, I dont have a business

card. When I spoke with Zig on the tour always be a clump of people afterwards and I would always offer

product because I [inaudible]. And so theres a couple of people afterwards asking questions and there was

always a couple pushing their card at me and can I have your business card? And I say, I dont use business

cards. Huh? I dont use business cards. I havent had a business card in 25-years. How am I supposed to

contact you? I said, Well you just heard my best 90-minutes. Its the best I got. You got a chance to get the

lowest price thing I offer. If after my best 90-minutes youre not going to get the lowest price thing I offer to

start a relationships why on earth do I want you contacting me and clogging up my office later?

Thats why I dont use business cards. Well seriously thats why I dont use business cards. Now about half

the people walk away shaking their heads, you know, thinking Im an idiot and the other half walk away POd


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and offended and irritated but see everybodys got a business card. What do you mean you dont have a

business card? How could that possibly be? I know tradeshows have business cards. [Inaudible] business

card. No I dont use them. Im going to make you write it down on a piece of paper. Its like a test. Because

if they cant manage to follow-up with me without me giving them a business card I dont want them as a

vendor because theyre going to screw other stuff up later.

Lets find out first if they can follow these instructions before they try to get them following instructions when

Im giving them money. Lets try this one all right? Thats all it is.

So industry norms. Everybody who makes a lot of money defies them. Everybody who makes average money

conforms to them. In fact if you want a good exercise heres a great exercise. Heres a great strategy heres a

take home. Go home, get a pad. If you need help get some of your employees or your peers or your buddies

together and make a master list of everything that is an industry norm in your business - how things are priced,

how things are sold, how things are delivered, how things are advertised, how things are marketed, what

contracts are used. Just try and identify and isolate and annunciate every industry norm that people in your

business conform to. In most businesses you should be able to compile a list of hundreds of items.

Then try and figure out how you can defy as many of them is as humanly possible. You will transform your

income in direct proportion to the number you manage to violate. Im deadly serious. Ive done it all my life.

Started in advertising business. The norm in the advertising business, heres the industry norm, the norm in the

advertising business, just had a conversation the other night with somebody from Sache and Sache about this

whos still doing this after 20 years trying to break him of it. He went onto the advertising businesses,

company calls up and says, Weve decided to change agencies and we need some new advertising and we

need some new marketing.

And they tried like 30, 40 different ad agencies and marketing guys and copywriters through there and theneverybody does presentations on spec, meaning for free everybody goes back and creates ads for this company

and then they all come back and show them to him. Some of him who are really smart then keep the agency

they got but take the best ideas from everybodys free work and hand them to the guys they already got.

But everybody else works for free. I did it once. I said, I dont like this. I kind of was planning on getting

paid. So my norm immediately became - heres how a new client relationship begins. You come for a day of

consulting. You pay a fee for that day. At the end of the day if we go forward with project work the fee for the

day applies to the bigger for the project work. I dont do free lunch. I dont do free breakfast. I dont do free

phone. I dont do free anything. You pay. You come.

You pay currently $12,800 dollars essentially for a full day sales presentation so that I can figure out what you

need and sell it to you. Now this is unheard of in advertising. And immediately everybody says, Well you

may be able to do that with entrepreneurs but youre never going to be able to do that with corporate clients. I

dont like corporate clients but Ive had lots of Fortune 500 clients over the years.

I sat in a boardroom at Weight Watchers, they were owned by Heinz, and they had their ad agency there. They

had two other ad agencies doing a bunch of stuff on spec and they had me who they were paying $9,000 dollars


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to be in the room. And the other ad agency folks found out about it they were like, one of them comes to me in

the restroom and he says, I dont understand this. How are you getting paid to be here? I said, Because I

wouldnt come if I wasnt getting paid.

Well then he says, Thats not the way things are done in the advertising business.

Get it. Get it. Hes not the only guy in a mens room today saying, Thats not how things are done in our

business. But Im the one with $9,000 dollars in my pocket. Youre the one working for nothing. Maybe

mine is better.

All right? There are two great examples.

Ben McGowan who started MCI. When Ben McGowan started MCI there was a belief in this country, a law

everybody thought, that long distance telephone service was a monopoly granted by the government to AT&T

and the Bell companies. So no one ever tried to get in the long distance business. McGowan said, Show me

the law. I hear all the time from clients, Oh we cant do that, its against the law in our business. Nine outof 10 times I say, Show me the law. There is no law. Theres a belief theres some nitwit trade association

somewhere whos telling them, This is the way things are done in our business. But there isnt any law.

Then McGowan said, Show me the law. And nobody could find the law in a week. He said, Were getting

in the long distance business.

Initially the FCC called up and said, You cant be in the long distance business. We got that deal with AT&T

and the Bell companies. Well show me the deal. Nobody couldthey didnt have a deal. But Im staying in

the long distance business. For better or worse revolutionized the telephone industry.

Heres some quick things. Ill mention a few clients and Ill mention a few things. When I started doing a lotof work in chiropractic in the late 70s teaching marketing to chiropractic, prepaid was unheard of. Prepay

means that when you come into a chiropractors, how many of you have been to a chiropractor? How many are

chiropractors? Got to be a few. Okay. No offense intended. You know I love you guys.

I wouldnt be up here without a chiropractor. Im serious. But so the chiropractic drill is you go to the

chiropractor, they take some x-rays and they fill around with you and then they bring you back and they put the

x-rays up on a light box and they show you how your spines falling out. And you got to come in 14 times a

week for the first three weeks and nine times a week for the next 62 weeks and twice a week for the rest of your

life deal or you spines going to fall out and pretty soon your going to be crawling around on the ground like an

ameba.

Thats called, by the way, the report of findings. Thats what thats called in chiropractic language. And then

heres where the whole thing falls apart. Then most of them say to you, Lets schedule your first

appointment. And you come and go as you please fundamentally. So you pay as you go, you show up, you

dont show up, everybodys got a bunch of missed appointments. You got an appointment, you dont show.

Everybodys chasing you. Well, you create a prepay. Prepay is...chiropractor says to you, You got to come in

46 times a week for the 14 weeks and that all totals up to $18,642 dollars. You can take care of that by


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prepaying it or you can pay it in thirds. Which would you like to do?

At the time you wouldve thought we had proposed branding the Bible. I mean it was like people marching

with torches to stop prepay in chiropractic. It became a norm. It became a norm. The people who got good at

it could take a practice that was doing $10,000 a month and go to a $100,000 dollars a month in a month. Its

only 10 sales. It isnt that big a deal. Theres magic in transaction size and incidentally better now, better for

the doctor, better for the patient because guess what? When you prepay $18,600 bucks you tend to show up.

You tend maybe actually do those exercises they give you to do at home every morning because I mean I gave

the guy eighteen-six. Maybe. Maybe I should pay attention.

Closed door medical and dental practice. Those are becoming common. Its going to change the whole health

care system in America. Its having such an impact the AMA is having meetings now trying to figure out how

to get it outlawed because its not democratic. You shouldnt actually be allowed to say, Im only going to

take 120 patients and Im going to hand pick them. Because what about Barbara who doesnt get to be your

patient? Thats the AMAs current position by the way. Theyre racing to try and figure out how to make this

law because these things are catching on.

And the way a closed door practice works is you have to pay a fee, $3,000, $5,000. I have one client he

charges each patient $15,000 dollars a year to be allowed to be a patient and he only takes a hundred. And now

hell actually spend 40-minutes with you. You can actually get him. Hell actually go to the hospital and make

sure they dont kill you if you happen to be in there. Thats a very useful service by the way.

Continuity versus subscription. Core thing in our business, now spreading to all kinds of other businesses but

see in the newsletter business if you get other newsletters most newsletter companies, even the successful ones

are still clueless about this. Theyre still actually selling you a two year subscription and then trying to renew

you with another duffle bag and another 46 pieces of direct mail.

See we get you once and we just charge you for life. There is no renewal when you do continuity. It changes

everything. Some folks on my list. Tracy Tollison is here. I dont know ifall the way in the back. Tracys

in the back. Tracys a mortgage broker. He deals only with realtors. Thats the first defy industry norm and

most mortgage brokers by the way will tell you they [inaudible] with realtors, and they are but he deals only

with real estate agents. Turns his cell phone off everyday at 5:00. Wont talk to a borrower until they have

been prescreened by the agent and explained how you do business with Tracy. And most importantly doesnt

take any calls, doesnt return any calls, doesnt check any e-mail, doesnt communicate with anybody in any

way over a weekend.

Now real estate agents are sitting at open houses over the weekend. They have in their head if they got a hot

prospect they got to like get them financed like right now. Everybodys got a jump through hoops right now

but hes trained his real estate agents who all have to join a club in order to be allowed to do business with him,

how to do business with him in a way he wishes to do business.

Everybody in the mortgage industry will say you cant do it. But in fact weve proved that we can. Dont have

time to tell you the rest of the stories.


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Number three positioning. Positioning is simply about you have to stake out some territory in the market

place that you can own. My Renegade Millionaire clients look for a piece of space in the market that they can

own. Sometimes they have to completely reinvent their business in order to do it. My favorite current

reinvention story, the big example, is Subway.

I admire them immensely for pulling this off. They have managed to take a fast food place and make it a

weight loss business. They are actually showing people giant loaves of bread.

Huge loaves of bread dripping with some kind of sauce and convincing people theyre running Jenny Craig

over there.

Its incredible and brilliant. Didnt occur to them, by the way, you know the kid went to them. They didnt

find him. So dont give the big company too much credit but at least enough credit to think about it when they

saw it. Theyre in the weight loss business with four of them sandwiches for $12.95 if you buy them before

4:00 on Sunday.

So yeah Jareds like eating the little four incher one. See I dont see too many people eating them. I see them

going in there buying two of them big hunkin ones and eating both of them.

With two bags of chips and two 412 ounce Cokes.

They aint exactly the Jared Plan. But think about it, they put, theyve staked out territory. None of their

competitors have and now its extremely difficult for any of their competitor to get into it with a radical position

in the pitch.

For years the lingerie business was all about Fredericks of Hollywood and 90% of the customers were men and10% were professional exotic dancers. Regular women didnt buy the stuff. Fredericks of Hollywoods entire

marketing approach did not appeal to most women and in fact most guys gradually discover its not even

particularly welcomed as a gift.

One of two things happens it goes into a drawer and disappears into a black hole and you never see it again

and at some point it dawns you, Hey what happened to that. Its gone. Or you hear, Thats a gift for you,

not for me. Thats in the wife play book. Its on page 12.

Victoria Secret came along and repositioned the business to be pleasant and acceptable and palatable to women.

Now theyve screwed it up lately. Their sales are suffering and now theyre trying to fix it. Heres what they

did. Look at the stupidity of this. To incrementally grow their business theyd go hire people from Fredericks

who come in in Fredericks eyes, Victoria Secret. Now thats no good. The whole plate was that it wasnt

Fredericks. And all the women know exactly what Im talking about. So they created a different environment.

They createdthe catalogs look different. The stores look different. The presentation looked different.

Different position, same position, different position.

Carnival Cruise Lines is a doing a great job right now with an advertising campaign to make cruises not about


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old people with walkers. Because typically thats the cruise customer, historically the cruise customers been

save up my money for my entire life and then take the cruise of our life and everybodys in a walker. Some

have actually surprised me; they have buffets because its like difficult you know. However this is true because

I saw it on a Celebrity Cruise. I dont know where they got it but its apparently a common problem. I saw

people with a tray that clamps on the front of the walker that they can put the stuff on and then push their

walker over to the table. I didnt know it existed but I made a note because at some point in time Im going to

want to eat too, you know?

But Carnivals doing a great job repositioning the cruise with the jump off the boat, use the jet skis, climb the

rock wall, take an adventure. Theyre trying to carve out a different place in the market. Heres some of the

ways you can do it theres a long list. In my Renegade Millionaire System theres 52 different ways to

position or reposition a business. Sometimes you only use one, sometimes you stitch them together. Here are a

few good quick examples.

Bill Hammond is a client of mine. Hes been a client of mine for years. Bill is an attorney and I always; I

typically dont like to work with him. First of all I feel guilty about helping him. Andbut we had him in mycoaching groups, in seminars I always say likein one of my coaching groups for two years we had three of

them and they all sat together because no one wants to sit with them.

But still hesof all the attorneys in the world hes like one of the least offensive. Bills positioning is what I

call extreme specialist meaning theres a category in law called Estate Law, which attorneys typically deal with

doing estate plans. Then theres sort of a related small sub-section category called Elder Law, which has come

about kind of in connection with the baby boom generation becoming elder. So sometimes Elder Law

sometimes includes estate planning but it also has to do with Medicaid issues and nursing home issues and all

that.

Hes created a sub-section of a sub-section of the sub-section and his law practice is Alzheimers family law.

And so it is only working with families who have had that elder in the family who either has been diagnosed

with or who they believe is soon to be with Alzheimers and all the stuff youve got to do, which is essentially

Medicaid planning, nursing home planning, wealth rearrangement, estate planning, its all the same services

that are over here provided more generically but they become worth four times the few when theyre positioned

as coming from an extreme specialist.

Ron LeGrand who youll have an opportunity to hear tomorrow, it all becomes a blur to me. Ron one of his

great positioning in the get rich in real estate role, which those of you who are from southern California, and I

know there are some here who are driving back and forth from southern California, theres like what 10 get rich

in real estate seminars a day in L.A.? I mean flip the dial. I mean while I was getting dressed this morning Bob

Allens infomercials on one channel. This guys infomercials on. Russ Whitneys on another one. You dont

see Tom anymore, the guy in the hot tub with the babes in the bikini because hes in jail.

And they have a rule about running the show while your away but its a very crowded, cluttered field right?

And so Rons positioning in the field brilliantly has a lot to do with what hes not about. Thats a positioning

device. Rather than talking about what you are, you talk about what you arent. So Ron, for example, is all


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about quick turn real estate which means hes not about buying and holding it. Hes not really talking about the

real estate business. Hes talking about the cash business. The last thing he wants to see anybody do is like

own it. Its like barely touch it. So his positioning is what he is not about.

Reverse of norm is another positioning technique. I have a Platinum member whos doing very, very well in

another crowded category, the sale of information, training, coaching, etc. to single men who need to know

how to connect with women. In case you didnt know it this is a very crowded, cluttered field. Theres

seminars just like this, $3,000 dollar seminars, $5,000 dollar seminars, people fly in for $15,000 dollars

coaching. There are books, theres tapes, theres famous gurus, theres websites and all of the positioning is

how to pick up women.

It started with a guy by the name of Eric Weber from southern California some 25 years ago. All the

positioning in that industry one way, shape or form is how to come up to you and convince you to do

something from the polite end of the extreme, lets go have coffee, to the very impolite end of the extreme, lets

go do something else. All the positioning is that.

Johns positioning is a reverse. And so his business is WomenApproachYou.com. So his business is all about

how you get women to approach you. Reverse position.

Craig Proctors USP dont have time for.

Okay number four process change. Im going to touch on this very quick to bring myself a little time.

Process change within every business, within in any sales career there are a bunch of processes being used.

Another good exercise, it relates to the use of this idea is you need to go home and make a list of all the

processes that are being used in your business. So for example theres a process in your business for how the

phone is answered and a new customer, new client or new prospect is treated when they call. You have such aprocess.

A you may not have been aware that was a process and you may have just been letting it happen however it

happened. Or let Betty do it however Betty does it or you may know its a process and actually have

diagramed out a little process for whats supposed to happen and have a script. But it probably isnt happening

the way you designed it.

Or it may not be as good a process as could be and you havent really spent a lot of time on it but nevertheless it

is a process. Theres a process for what happens in a retail store at the cash register when somebody comes up

to pay for their goods. Theres processes upon processes upon processes upon processes. Theres enormous

opportunity in focusing on process change. Whats the process? How can we do it better? Should we

substitute an entirely different process for it?

Got a list here of just some examples. In the 1950s a different process was created at the retail level for how

people pay for merchandise. Retailers figured out a way to get people to pay for it in advance with installment

payments instead of buying it and then paying for it later with installment plans. Its called lay-away plans.

Now theyve just about gone away today but in the 1950s and into the 60s they were huge. The way your


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parents bought a washing machine or bought a new couch is they went down and they picked it out at Sears.

They opened up a lay-away plan and they paid $25 bucks a week into their lay-away plan account until the

$400 bucks for the couch was in there. Then they picked up the couch. It was a revolutionary thing in its

time. It changed the process of how people buy and pay for things. It didnt change the business. They were

still selling the couch.

One step selling to lead generation. A lot of businesses their process is run an ad, get somebody to come in.

Buy something. Problem with that is the only people coming in are the people ready to buy something this

weekend. So all the people who looked at the ad and have some level of interest to maybe buy that something

they arent ready to buy it right now. They were wasted. You paid money to put an ad in front of them. You

paid money to get them to look at it but you dont know who they are and you have no relationship and you

cant follow them. You cant follow up on them.

So the change to lead generation kind of advertising that says, You dont got to be ready to buy anything right

now but if you have some kind of interest call this number, go to this website and well send you a bunch of

stuff, and then you can start a relationship with them. Thats changed many, many businesses for the better.

A simple thing like the free recorded message. So youll see in the Yellow Pages ad now, youll see the regular

number so like a plumber ad. Youll see the ad to call if you want to talk to a live human being in the

plumbers office. So like my toilet is stopped up and I need a plumber right now, Im calling a plumber. But

maybe Im in the Yellow Pages because Im thinking about remodeling the basement that Im going to put in a

shower and a toilet down there and Im sort of looking and getting information.

Well now therell be a second number for that. You can call our toll free recorded message and hear the seven

mistakes people make when they buy new bathrooms for their basements. And you can get a free report 27

Smart Questions to Ask a Plumber Before you Permit Them to Enter Your House. Okay? So thats the use ofa toll free recorded message to double, triple, quadruple the power of an advertisement.

Single sale to continuity

10 Million Dollar Secrets to Instantly Transform any Business or Sales Career

All TV these days, the infomercial business where Ive done a lot of work. You know the annoying shows that

at 2:00 in the morning when your resistance is down sell you things that youll never use, neverthe mixer, the

ab chair, which is the funniest.

I like Jake but its the funniest of any. Its a lawn chair. I mean the ab chair. You set in the chair and you bend

over. I could do that in this chair.

I mean really have we gone so far. The things got a little spring in it that as you start to pull forward kind of

pushes you. Really have we gone so far? What amazes me is, the big mistake he made is he didnt put a cup

holder in it. Shouldve had a cup holder.

Well look in case you dont know this, this is a rule if you ever get in the fitness equipment business. All


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fitness equipment sold on television, all of it, it must have handles that point your curve up. You know why?

Its not federal law. Its because if they curve down when you hang the clothes on them they fall off on the

floor and people are unhappy with the fitness device that they bought.

The other thing is a fitness device must fold up to slide under the bed because thats where its going to go and

you want it under there so it doesnt get returned. See if its sitting up there staring at you eventually people

like to return it.

Anyway in the infomercial business huge breakthrough was continuity. So like my client Guthy Renker, see

you cant buy a box of Pro Active, the acne block from the TV show. You cant do it. You have to join the

club and get auto shipped supply of glop. Now what weits a professional term glop. Its an insider

language.

So you cant just buy one thing of glop. You can sign up for glop for life. Now you got to stop the glop. A lot

of people dont. I shot an infomercial years ago for another acne product, a skincare product rather, the regular

skincare stuff and we were looking for testimonials. We find a three generation family. And so grandmasusing this stuff, mommas using this stuff and her daughters are using this stuff. Theyre all in Tennessee. Its

a great story.

Fly them all in for the shoot. Well grandma, grandmas in her 90s and so first of all grandma has shrunk. Shes

really small. And her skin isshe looks like a Sharpe dog all right? I mean grandmas just got [noise] and so

Im doing a preview and grandma says, Ive been getting this product every month for 14-years. And when I

started my daughter used some of it and then my granddaughters started to use some. But then my daughter

signed up and gets her own supply and now my granddaughters they get their own supply. It keeps coming

every month and I dont go out as much I used to and my face is smaller. I dont need as much of it. She said,

The closets full and Ive got some down in the basement next to the jelly jars. Its all I can do not to say,Hon you can stop. But my client is this skincare deal and grandmas getting a shipment every month for

$39.95 and shes going to get it until they close the door baby.

So a lot of people wont stop, choose to do direct response business on TV but its just a process change. Were

still selling glop. The only thing we changed was from optional, you can join the club to you are joining the

club. Thats all that changed.

Options in the second sale after the sale. Ill do this real quick because it happened to me the last time I bought

a car. I didnt see it before. Im sure now its; a lot of car dealers do it. I just wasnt aware of it but its

brilliant.

It used to be when you bought a car they pitched you on all the options when you bought the car and bundled it

all into the financing. So a few years ago I go by. Im not a new car a year guy. I was when I was young. Im

not now. So Ive had the same car for like eight years. So I hadnt seen this. So now I go buy new Ford

Explorer and I go to pick it up at the dealer and before they let you have it they take me back to the after market

specialization consultant. You have to have a meeting with them. Its not a choice. Back you go.

This guy now sells all the options you didnt buy when you bought the car. Its the Pimp Your Ride stuff. Its


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the better wheel covers. Its the better stereo. ItsI mean its the, I see you didnt get undercoating. Do you

realize in Ohio without undercoating two years, long before youve paid off the car its going to be a Fred

Flintstone car?

Youre going to have little feet and your going to be pedaling down the road through the [inaudible]. You

dont want to do that do you? They sell like five; $6,000 dollars worth of options after the whole things done.

Then you go back to pick it up, second sale after the sale. Brilliant, incredible. Think of all the businesses that

could apply to.

Okay heres a biggie. This is like the biggie of the day. This is something that went on almost with no thought.

It does require some kahoonies but almost with no thought. You can go home and immediately increase both

the income and the value of your business. Heres all you got to do the strategy is price change. Thats all

you got to do. I made more people more money by getting them to raise their prices than by anything else Ive

done.

Make a note. Every marketer grossly underestimates the elasticity of price and neglects the percentage of theircustomers who will cheerfully buy a higher priced premium option of what they sell if it is offered to them.

They leave a lot of money on the table by not offering a leather bound addition of the paper bound addition or

some version there of; a blue door you can walk through in the back instead of the red door in the front.

In 1978 when I moved to Phoenix there was a very popular nightclub in Phoenix, big long rope line in the front

where you could buy a card for $500 bucks a year that allowed you to stand in the rope line in the back. Well

whos going to buy a card for that? A lot of people based on the length of the rope line in the back. In fact

some nights the rope line in the back was longer than the one in the front and I walked around and got in

around the front.

People will buy a premium option. Price is also very elastic. Most people dont understand how elastic price is

in part because they do what I talked about earlier, how do you set your prices? How you figure out pricing

your business to start with? Heres what most people do. They look around at what everybody else in their

business is charging.

And then if theyre really gutsy they try and be a little higher than the average or if they think they can buy

volume they try and do a little more than the average.

Heres the power of transaction size. Its a very simple example but you ought to put it up on a wall where you

see it. How do you get to each million dollars your business produces? Well you can get there with one

transaction if you can sell somebody something for a million bucks. If youre going to sell somebody

something for $100 bucks youre going to need to make 10,000 sales.

Making a million dollar sale is not 10,000 times however; it is not. Im not saying Starbucks could figure out

how to make a million dollar sale. They have figured out how to sale a cup of coffee for $8 bucks. They didnt

do that by saying, Lets see Dennys is $0.55 cents, Dunkin Donuts is $0.72 cents. Oh boy lets be really

courageous and try $0.79. That isnt how they got there.


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Omaha Steaks how many of you buy from Omaha Steaks? Good for you. Everybody ought to get good

steaks. Theyre come in Styrofoam box delivered right to your door. How many of you, you Omaha

customers, how many of you buy hamburgers from them? How many of you buy hot dogs? This is instructive

by the way, if youre looking around at them instead of me. If you want a sucker list you want to get the names

and addresses of the guys buying the hot dogs.

Okay Omaha prices are roughly I dont know double, three times the best stuff being sold maybe at the

supermarket or the butcher shop in your area. They maybe five times Costco. They do deliver it. But a steak

is a steak.

Now for a long time when you told somebody you were buying Omaha Steaks that you got the old [noise], Oh

I cant believe youre paying them. Anybody here buy from Allen Brothers? Awe you got to switch. You

got to switch. It is honest to God and I was an Omaha customer for years and I like the guys and I still use

Omaha to send client gifts becausebut for me Allen Brothers its ayou cant even believe how much better

it is. Its twice the price of Omaha. These guys got in the same business, catalog selling steaks, hot dogs,hamburgers. And they have the gall to double Omahas prices. And were switching like theres no tomorrow.

Price elasticity. Theres a whole thing in this monthswe have a newsletter called Marketing to the Influent,

in case you dont know. Theres a whole thing about a subscriber wrote in out rage at what Williams-Sonoma

was charging for cookies. He dont get that it isnt about the cookie. He didnt understand its not about the

cookie. Its about all the emotional reasons attached to why you would buy that particular cookie from

Williams-Sonoma and theres lot of reasons for that.

Lots of people on my list here Id like to talk about. I talked about Charlie. Ron Caruthers who may be here,

hes in sunny California. Hes in the college planning business at my urgent hes increased his fees four timesin the past 12-months and in total nearly tripled them, no suppression whatsoever in any meaningful statistic in

his business. By that I mean no difference in the number of leads converted to clients, no loss of clients, no

negative changes.

But four fee increases in 12-months leading to nearly triple the fee. Dont make any difference. Doctor

Fairfield whos got a cosmetic practice in the Philadelphia area and he does seminars to bring in new patients, I

got him to test at his last seminar offering a $25,000 dollar membership in the practice for the patient to have all

the cosmetic procedures they want or need for three years. So you want to come there every day and get a

Botox shot you can, $25,000 bucks prepay. Five out of a room of 150 and three of the five were brand new

patients with no relationship to him. They came in off a newspaper ad and were sitting in the seminar room,

$25,000 dollar membership. Thats price elasticity. Its everywhere. I promise you and most people

underestimate it, most people dont understand it.

Number six Immunity to criticism. When you conform to the renegades rather than to the majority of people

in your business, in your profession, in your circles of influence, in your community you will be the subject of

derision and attack.

I have a client; come back to thisthis is a great story. I have a client who owns a big chain of furniture stores.


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Does very well. His wife, lovely lady but basically a social climber. Shes very involved in the ladies clubs

and the country club and all of that. Hes basically a blue collar guy who got rich. If he could, their living

room would be like the one on the Frasier show. It would be elegantly decorated but with his old ugly recliner

in the middle of it. So thats the dichotomy.

All of his marketing for his stores is the kind of stuff Bill showed you yesterday. Its our kind of stuff and so to

her its ugly and embarrassing. He cant, for example, go home and say, Look at his mailing we did last week

that did a 48 to one ROI and brought in 600 new customers. All she says is, I hope my friends didnt see it.

So heres what he started to do for peace at home. Every year he has designed for him a beautiful normal

looking four color 12-page brochure about the stores. He has to print 10,000 of them. He then throws out

9,700 of them because theyre useless. He gives her 300 so she has something shes not embarrassed about to

show her mother in-law and her friend and she lays off of criticizing him all the time for the stuff he is doing.

He just tries for her not to see the newspaper ads.

Second great story; we had a chiropractor. Years ago we got to do prepay. The guy was starving. $3,000dollars a month. He wasnt even paying the rent. Second month doing prepay he had a seventy some odd

thousand dollar month. He made the mistake at the Sunday family dinner of telling the family of how well he

was doing.

Two mornings later the parish priest arrived at his office dispatched by mom to sit down and counsel with him

because you couldnt possibly be doing that well that quickly without doing something illegal or immoral. You

laugh, he never recovered. The next month he did $6,000 bucks and four months later he was working for

another doctor in his office for a salary. He never recovered.

A key common characteristic is enormous immunity to criticism. The renegade millionaires have in commonthis they dont care what anybody thinks of them except those who give them money. Thats the only vote

you get. They know their spouses opinion doesnt count. Their mother in-laws opinion doesnt count. The

trade association they belong to, their opinion doesnt count. The peer across the street opinion doesnt count.

Not even their opinion counts. We got to learn because were often wrong.

Im the highest paid direct response copy writer in the country. Im pretty good at it but every once in a while I

do four different things for a client to test and the one he and I both love and think is going to kick butt and take

names is the dead bang loser. And the one we were all suspicious of, Awe but lets test it anyway. Its the

hero.

I know my opinion cant count. The only thing that can count is results.

Interesting thing about this list is it probably wouldnt be happy about being paired with Jerry Springer but

nevertheless.

The other thing Ive got a few things that havent made Zig all that happy. Theres a profound commonality

between the two of them. And here it is. They dont care what anybody thinks about what they do except the

people who respond to what they do. So Zig does a very bad thing as a speaker. He does it in every speech.


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You couldnt get him not to do it. He gives you his biblical testimony. I cant tell you when he started

speaking the number of people who took him aside and said, Zig you cant be doing that. Youre going to

offend a lot of people. Youre not going to get a lot of corporate gigs. Youre not going to

This guy for the three of the four decades now has been the single most successful motivational speaker in the

history of all time. And by the way I may not want to hear it, you may not want to hear it, make any difference.

What he cares about is the people who respond to him.

Jerry Springer think of all thelets see Donahues gone, Sallys gone, and Montels hanging on by a thread.

Umpteen numbers of them have come and gone. Who are the two longest running, most successful daytime

talk shows in the history of day time TV? Jerry and Oprah. And probably the two of them wouldnt

necessarily like being put at the same banquet table either.

Springers show actually one of their slogans is, The Worst Show on Television for 27 Years. And hes

gotten rich with that gig. And Jerry, you know, checkered little past there. I mean Jerry was one time the

mayor of Cincinnati by the way. He failed to get reelected because he engaged in a real bad habit of paying forthe services he was using at the local brothel with his personal checks.

You dont exactly want him with his thumb right above the red button do you, you know? Judgment problem

there. But immunity to criticism hes got it. Doesnt affect him in the least, doesnt. Doctor Atkins during the

entire time with the Atkins brand was built there wasnt a day that Atkins wasnt under mammoth attack -

medical profession, media, you name it. I never saw him once in an interview that was positive, not once.

Even on Larry King, Larrys like the softball interviewer of the planet. I mean the joke about Larry is he could

have Hitler on the show and he would, Tell us about your stamp collecting hobby, you know what I mean?

I mean you know Larry isnt exactly 60 Minutes at its best 60 Minutes. Even you went after Atkins. DidAtkins, did it bother Atkins? Nah. Completely immune to criticism. People that make the most money are.

Number seven simple one but a big one. Systems the tiny minority of people who are making tons of

money in whatever business you want to look at have this commonality and all businesses and this difference

from everybody else in their field. Everybody else in their field is getting up every morning reinventing 67

different wheels in their businesses.

The proof is the thing cant function if they aint there. I always laugh at all the people at our breaks at a

seminar like this. Everybodys in a massive stampede to get out in the hall because they got to get on their cell

phone. What are they doing? Theyre checking to see if the place has collapsed in the hour and a half that they

were in the room. Thats what there doing. They figured they got to buy 90-minutes at a time and if theyre

poking at it, looking at it, checking on it, talking to people its all going to fall apart.

And by the time they get back there at the end of the day theyll be nothing left but ashes. Thats how most

peoples businesses run. Its how most businesses run. When I was traveling a lot (dont do it anymore)Id

been sitting in the airplane lounge, and now that everybodys on the cell phone and they dont have the good

grace to go into the phone thing and theyre all around you yakking you can hear all of their conversations.


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Right? And what are all the conversations? Day-to-day emergency stuff that is out of control that their

patching back together. Why? Theres no system for anything. Theyre reacting to everything on a constant

basis.

The most successful businesses in all America are what? McDonalds. Think about this meeting. Heres what

were going to do. Were going to open thousands and thousands and thousands and thousands of businesses all

across the country. Were going to manage them with absentee owners from distance and were going to put

everything in the hands of a bunch pimply faced teenagers listening to music on their iPods and not thinking

very clearly because there at like peek hormone run amok time.

And were going to invest millions of dollars and perfectly good jobs. Lets get out your checkbook and invest

in that puppy. They do it. Their business is run by kids magically somehow. They get through the day. How

does this happen? System.

Burger King keeps hiring new ad agency. They cant figure this out. It isnt about the ads. Its because of the

chaos in the store. Every Burger Kings different. One of them has got the milk shake machine over here. Oneof them has got the milk shake machine over here. In order to get a milk shake this clerks got to knock down

three clerks who are in between him dealing with the customer over there to get over here. The cups for the

milk shake are over there. Theyre not over by the milk shake machine. Yet Burger King is a mess.

McDonalds is not a mess. It is especially relevant to note McDonalds has the worst food. Theyre the most

successful of all of them with the worst food. Everybody knows Burger Kings got a better hamburger.

Everybody knows Wendys has got a better hamburger. McDonalds is the most successful. Why? Theyre

actually fast. So they call it the fast food business because people want it fast. They dont care about good.

Fast. So McDonalds has a system, everybody else has a poorly shadow of a system. Its a mess. Go in and

watch one at peak. Go watch an Arbys at peak.

Wheres the bag? Go watch at Taco Bell. Its horror show. It is. Its an absolute horror show. This person

cant run the register. This one cant find a box for this. This ones yelling for the manager for that. Theyre

running into each other. Vroom, vroom. McDonalds has a system. All [inaudible] based on system.

Ford family wealth, two systems. Most people think about the assembly line, thats one. Ford also invented

the dealership system for selling cars. Without the second system the first system wouldnt have been very

valuable.

Now heres the real question do you have marketing systems? Because there the most valuable. A lot of

people in business have operational systems. They can manage to get the lights turned on in a place in the

morning; they can manage to get a milk shake out of the milk shake machine. What they dont have is a

systemized assembly line approach to bring in their customers or clients to them, to handling them when they

come. Our guys got marketing systems.

Number eight macro/micro. Heres a micro example. In the 1930s in the recession drug stores had soda

fountains. People even went there for lunch. You sat at soda fountain got your lunch. A sales trick, and a lot


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of people when they ordered milk shakes they got an air gun. It was like an add on. So a sales trainer whose

name I forget, I get the two of them confused so I wont need either one of them but a sales trainer figured this

out. Lets have everybody when they take an order for a milk shake not ask do you want an egg in it, ask,

Would you like one egg or two?

Elmer Wheeler? Yeah thats what I heard a lot of them and I get them confused but if you say Elmer, Im

buying. So its Elmer.

Very simple micro managed thing. One sentence and all the interaction that happens between all the clerks and

all the customers in the store all day long change that one sentence. Save the chain of drugstores from

bankruptcy, dramatically increase revenues, dramatically increase profits, why? Because everybody takes an

egg. Hardly anybody says no to that question.

Now its like Sales 101 today. But youd be surprised how many businesses dont use it. Now thats a micro

thing. I have a client one word in a phone script, one word in a phone script 10 times the number of people

who converted and say yes. One word, thats micro. So everybody we work with is looking for opportunitiesto make micro adjustments that yield big results. All right.

Macro now is what the big vision is, whats the big idea? How do we take the core business and wrap five

businesses around it? Some people are really good at one and not really good at others. Bob Iger at Disney, we

dont know yet. Hes done a marvelous job since taking over for Eisner in terms of finance. Im a Disney

stockholder, I watch. And thats up 18%. But Igers a very bottom line guy. Hes real good at the micro stuff.

His rap is no vision. Not an idea guy. Not good at macro. Too soon to tell. Will he go get a guy whos good

at macro and pull himself with it? Will he let his ego get in his way? Will he getwe dont know yet.

But the really good ones are good at both. They do both. They take a look at their business every day from thebig idea side. Some time this week could somebody give me, can I get a big idea? And they pay attention to

all the little nitty gritty tiny stuff.

Number Nine. This is huge and regrettably I dont have time to convince you of it. I only have time to tell you

about it. The way the vast majority of people approach advertising and marketing is the opposite of what you

see on the screen. Theyre all trying to figure out how to spend as little as possible to promote their business to

get their customer.

So were all worried about if were going to do direct mail we cant put anything more in an envelope than well

mail for a stamp. I dont want to wait to shove me over into two stamps. I got a client whos testing right now,

does a lot of direct mail; testing 90,000 FedExs this month. He isnt worried about two stamps. Excuse me.

Shouldve apologized to start with. Ive been fighting a little throat problem for the last week or so.

90,000 FedExs he sending this month. He just adjusted the economics in the business to allow for the FedEx.

Not one of his competitors, all of his competitors use direct mail. Nobody sends FedExs. Nobodys going to

send. Incidentally this business of his is a seminar business that puts on seminars for the recently bankrupt.

Dan: I promise you nobodys sending him a FedEx box to sell them anything except him. So the vast majority


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of everybody, all of your competitors that come to the table with the mindset, How can we spend less? The

questions are always, Im doing pretty well with my Yellow Pages ad this big. Can I buy the next smaller

one? Not, Hey Im doing pretty well with my Yellow Page ad this big. Do you think I should buy eight

pages? I never hear that question. I always here the other question, How I can do less? How can I spend

less? Except for my winners, because my winners know the ultimate competitor advantage is being able and

willing to spend more to acquire a customer than anybody else who is talking to them.

I will pick a category in business [inaudible] routinely now. Ive taken people from zero to million dollars a

year incomes. Ive got them spending $6,000 dollars a piece to make a sale. I would say that the average in

their business is maybe spending $500. We just choose the pricing and the economics to allow them to spend

$6,000. Theyre selling something that normally sells for $4,000 for $30,000. They can now do things nobody

else who was talking to their prospects can do.

So the strategy is be able to spend more, dont strive to spend less. The normal question is, How can I spend

less? The renegade question is, How can I spend more than anybody else whos talking to my prospects is

spending? If somebodys sending them a FedEx how could I send them a big FedEx?

Theres a financial guy, investment guy been a member of ours for many years in Chicago. He targets, he only

does business with people who have invest able assets of $10 million or above, theyre running family owned

businesses, etc. Bill probably showed you the trash can mailing yesterday. Did he show you the trash can

mailing? The little aluminum trash can. Let me tell you what this guy does. He picks 50 prospects every

month. He has delivered to them by messenger a full size trash can. The one you buy over at Home Depot or

Wal-Mart. Full size aluminum trash can, hand-cuffed to the wrist of the messenger.

Somebody has to sign for it. The sales letter is inside the full-size trash can. Two things, the gatekeeper aint

throwing it out and even if she was bold enough to do so into what is she going to throw it?

It wont fit in the wastebasket. Awe the mental picture of, you know, Bertha the hun, the real determined

gatekeeper, try it. She is going to force this into this wastebasket no matter what. Yeah. 100% get the sales

letter. Over half call. Over a third book appointments. Its his whole marketing system. It cost a lot of money.

Trash can, the messenger, hand-cuffs, guys got to go back three, four times to get the right person to sign for it.

Its expensive. Pretty much everybody who ever sees it thinks hes an idiot. Hes doing very well.

Number 10 personal behavior. I have a saying, There are no business failures. There are no business

successes. Its all personal. My personal investment strategy is to not pay so much attention to the annual

report. Its to pay attention to the people running the show.

I think personal behavior matters enormously. Theres proof of it, the Disney example. Eisner was a fabulous

CEO until his personal behavior got goofy. Then he had to go.

Personal behavior matters a lot. The business is driven by you. And whats important is it is about behavior.

Its not about so much attitude or positive thinking. I think all that stuff is in nice and useful and theres no

doubt if you want to call it a positive, negative, it does have a physiological affect on you. All thats true butI


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was driving around in a car with a cassette player next to me and I was thinking positive and I was driving in

the $25 dollar car and I was dead broke. But I was positive. But the behavior wasnt right. So its behavior.

Now heres a secret, heres what my Renegade Millionaire System is really all about. Its the thing I call about

behavioral congruency. And so going all the way back to the beginning, if we identify a key list of things that

are extraordinarily successful entrepreneurs and business leaders and marketers do, not so much what they

think, and by the way theres big differences in how they think.

If we talk to Zig and we talk to Jerry Springer big philosophical differences. Big. Theres significant

philosophical differences between Zig and I. But there are a few key behavioral commonalities. They do

certain things exactly the same. We do certain things. Its about what we do, not so much what we think. Not

so much our attitudes. Its about behavior. Now here, so if we identify the behaviors what do these people who

are getting the kind of results we want do?

So everybody that has to run out on all the breaks and jump on their cell phone right away and check to make

sure that the place hasnt fallen apart in their absence, and checks their e-mail 36 times a day. I do a four dayseminar, set up here. I only take one bathroom break a day because I got a good prostate. And I dont have a

cell phone and I dont use email. And, I go four days without checking with anybody. My place doesnt fall

apart. Everybody else is out there worrying about if their place is going to fall apart.

So whos behavior is people, its a pet peeve of mine; theyre at the urinals on their cell phones. I mean, you

know, women if you dont know guys are doing this you cant go into a public restroom now and theyre not

talking on the phone while their peeing. Now really. If things are so out of control in your life that you cant

find five minutes to pee in peace, you know, you got some real issues.

And for the egotistical numnuts now that you thin

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10 Million Dollar Marketing Secrets