Professional Documents
Culture Documents
WILL: Hi.
JAY: I have heard that you have done something really extraordinary
in a field, that no one’s been able to do a lot with. You’ve taken
50,000 really, really quality massage therapists around the
country and organized them together and have been able to
work for them ways for them to have a happier, more secure,
safer, richer , more successful life. That’s really cool. That’s
really cool.
WILL: There are absolutely wonderful people in the world, that have
absolutely high ideals, that walk on the ceiling. And how do you
get those people grounded and to be successful?
JAY: They are probably not normally good business men and women,
and they probably get taken advantage of and are a little naïve.
JAY: And I know enough about you from our experience, that you
work really hard to get really quality products and services and
advantages for them. I don’t know all the services you’ve got
for them, but a couple of… just so that I know a little bit more
about it… What are some of things you’ve gotten for them, in
the past? Advantageous benefits, things like that?
WILL: The first thing we got for them was liability insurance at about a
fifth of what they would pay for it in the marketplace.
JAY: And probably a lot of them couldn’t even get it in the market…
Joint Ventures: From Mediocrity to Millions
WILL: They probably could have, but they would have paid a lot of money.
The truth is they don’t have much money.
WILL: Then we look for things like credit card merchant discounts and we
look for discounted services which are excellent.
JAY: That’s great. Well, I think I might have something, that might
be really appreciated, really beneficial, and a real achievement.
I’d like to tell you about it, and I’d like to get your perspective.
And I’d like to tell you why it’s more exciting for your group
than most of the benefits -- not as exciting as the insurance goes,
maybe, but can I walk you through the vision I have?
JAY: First of all, you know everybody and their brother sells long
distance telephone service. What you might not know is that
the average person doesn’t buy theirs very astutely, and there’s
a lot of hidden costs to it.
There’s a lot of hidden costs to it, and the average person (and
I’m just going to synthesize -- I don’t know what the numbers
are.) The average person out there is paying 8.6 cents a piece
and $5 a minute, and the average person is spending $47 a
month on their phone bill, including their long distance.
And it’s not a lot to you and I, because we make good money.
But to a massage therapist who would probably love to have
every hour of their eight hours filled, but really doesn’t… so I
know, that’s a lot of money.
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And they set-up a program that eliminated all the negatives, all
the hidden pitfalls, all the unsavory elements that made
telecomm so repulsive to most people. They work with only a
handful of companies around the country. They are very, very
discriminating about the people they work with. They work
with serious organizations that long term, want to bring
sustaining benefits to their people.
They work with organizations like you to try to figure out, first
and foremost, exactly what the most benefit is to your specific
and unique target audience. Then they create for you a
customized program in their name, or it can be actually
individualized for you. It can be a customized program in your
name and in your organization.
Basically, after they figure out what will serve your people the
very best, they then put together a collaboration. But they do
all the work…they pay all the expenses…
They do all the creative, but you maintain 100% of the editorial
control, so they make sure it’s absolutely right for you. They
create turn-key, very powerful, very effective marketing that
utilizes every avenue of influence and impact you have available
-- direct mail… e-mail… websites -- any other communication
opportunities you have.
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JAY: I don’t want to be overly zealous, but based upon the experience
that we have, and the really impressive, sustaining marketing
they will do for you, the odds of you getting 15,000 of those
people to be involved in this program over the next twelve
months are exceedingly high. No guarantees, of course.
If you get those 15,000 the good thing is the average bill is $47 a
person. First of all, the average bill would drop to $31 dollars a
person. Twelve dollars may not sound like a lot, but freeing up
$140 a year for a massage therapist to spend on your
membership fee, for example. It would cost them nothing.
I’m sure that a lot of your fees are like that, but the interesting
thing for your organization is that you will receive a perpetual
share of the revenue.
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MAC: You started going through the benefits to the association. You
started going through the dollars.
JAY: So, this is sort of interesting… Again, I put myself in your place
and I thought this:
I can’t guarantee it, but based upon our past experience, it’s
almost like… and this shouldn’t be the motivation. It should be
the motivation, doing the very best service and doing the very
best advantage you can to your members.
Now let me ask you a question. I know you are trying to build
an organization that will be the ultimate entity for niche affinity
groups, right?
WILL: Yes.
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JAY: I have sold a few people on strategic alliances…But you see how I
do it?
JACK: Yes.
JAY: And I would get into much more… I don’t have the time. I don’t
have the facts, but I would basically say:
Number one, I would want to know about the people you serve.
Number two, I would want to know about the certainty that
you’ve got this really done. Number three, I want to see how
long you’ve sustained those relationships. Number four, I want
to see the kind of money you are paying people.
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Number two, I’d like to show you the income stream so that you
can see it starts here. But it doesn’t grow like that, it grows and
grows and grows and grows…
Now, you probably have some phone program right now for
your people. It is one that is either contractually committed or
it is not.
We’re going to create for you killer marketing, not just one
shot.
Let me tell you something before you talk, Will. One of the
reasons most affinity phone programs are feeble is that most
affinity phone marketing is feeble. And it’s not direct response.
It’s like a tombstone ad you’d see in the newspaper.
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I created theirs. Ours does all of that, and then I realized, just
announcing it isn’t enough. We are at a very, very, very
diffused and diverted world. Most people don’t respond to the
first impact they get. They get seven, eight, nine…
WILL: I think it’s excellent. But I’d like to ask you one little question.
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JAY: Well, it’s not wonderful because I haven’t really thought about it.
But I think it’s more connective.
MAC: What I want people to know is, when Jay does this, if he does get
on a roll like this… now you take notes and say “I’m going to make
all those points…”--- That ISN’T what you are going to do with
this!
And you are going to make scripts out of it… you are going to
make direct mail letters out of it… you are going to make videos
out of it… and you may have to modify a little bit, but don’t just
take the high points. It’s a great script.
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JAY: So, the point I made. I just did something tactical, which I
promised myself I wouldn’t. But I wanted to just counter back to
you.
What I really think I’m trying to say is, your strategy has got to
be, first and foremost, to figure everything every other affinity
program doesn’t do and do it…
MAC: Here’s the strategic part of what you did: The strategic part of what
he did was, he started with what assumes, probably, rightly so, to be
his primary concern.
JAY: From my vantage point, and you can pass it to the other
members…
“Here’s what we think the issues and the problems are… Are
we right?”
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And they’ll respect you for asking and then if you accurately
assessed it.
And number three, that you realize that it’s a sustained process,
and that you have all elements for that. But they always control
it, and it’s not going to be offensive or overwhelming.
Number four, that over the course of doing this three, or four,
or seven times, plus every time somebody comes in, plus even
the expirees -- You believe from experience that you are going
to do a much greater job in getting buy-in than you’ve ever
experienced -- which will be good for their members, but it will
also be not inconsequential for them.
“It will pay for you and your wife, to put all seven of your kids
in the best private school forever. It will pay for you to take ten
trips around the world. It will pay for you to buy yourself the
brand new Ferrari, or a 600S Mercedes, and have an extra
$70,000 a month left to do something else. And analogizing it,
and analogizing it, and analogizing it, and analogizing it...”
And then go back, and say, “That shouldn’t be the reason you
are doing it. The reason is we can deliver to you, right this
moment, the names of 100,000 people you can call… the names
of seven impressive organizations that you can talk to who will
confirm every word I’ve said.
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PAUL: I’m ready, but what Chet said. You go. I want to be able say what
you said.
CHET: So, there’s a couple things Jay did, that I don’t… I just want to
make sure everybody noticed.
JAY: I’m just trying to help get it started a little bit here.
But also, your other strategy is going to be to figure out who can
shorten the learning curve.
It’s one thing for Jack to get on the phone and cold call people.
It’s another thing to say, “Who in this room has an affiliation to
either a publication, an association, a direct marketing company
that has a lot of clients?”
And you being able, and I’m not using you guys to do it…How can
you find other people to find other people?
When I was doing Icy Hot for example, first thing I did was call
cold. And I was OK. But it was an eight or nine sequential call
process with lots of follow-up things, with lots of relationship
building.
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Then I found twenty guys who sold…one sold jingles, one sold
programming, one was a rep for radio stations… And I split my
deal, a third/two-thirds, and got them to make 500 calls and it took
me ONE call to make the deal.
MAC: Who got the one third? And who got the two-thirds?
JAY: I got the two-thirds. But I could have given the opposite. It
wouldn’t have mattered, because incrementally, it was found
money.
So the thing you got to do, and I’m sure there will be examples in
the workbook, or in the encyclopedia, is got to go and figure out
“who already owns the market?” Because that’s leverage.
The thing that troubles me, but it’s probably because you haven’t
really mounted the initiative, is that you only have seven current
affinity clients. What I’m hoping is everyone of those seven loves
you. I would get them on a conference call, and I would get
somebody like me to interview them and I’d have the tape of them.
JAY: That’s what I’m saying. I’d go to all the…How many rural,
whatever they call them… How many do you have?
MARK: There are 17 in the state of Alabama. And we did exactly that in
December. We have 17 rural electric co-ops that have been
currently been using our services for two years.
The great thing about rural electric co-ops is that 99.5% pay their
bill and…
JAY: So let me ask you this question: How many rural electric co-ops are
there in the country?
MARK: I think there are 1200. They serve 40 million Americans. But I did
exactly what you said. I got really close to the president of the state
association and next week we are closing the Georgia rural-electric
state association.
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JAY: But here’s what you can say to them: You can say…and
again…if it’s improper for him to realize money, you can say:
“If you’ll get on the phone, or you will sign a letter that we can
send to the president of every co-op… if you’ll get on a
conference call with us and do a tape that we can send out, we
will either give your association or your co-op two or three
percent, or we will net it down to the other co-ops, or we’ll
create a fund in your name to blind kids, or a scholarship, or
whatever motivates you…”
MARK: We did it. We actually took that from Mastermind. We’re giving
the percentage to him, for his members and as a result of that he
actually endorsed a letter down to…
JAY: But here’s the thing: A letter is a tactical approach. You want a
strategy. You want to say:
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But then you get a call from Jack and said “Mac Ross wanted me to
follow-up and make sure that you knew it was important to him to
send that letter, and he wanted you to talk to me. He wanted me to
send an interview with twenty other rural… He wanted me to send
you an analysis we did of what we think it will mean to you and to
your people…”
MAC: That’s absolutely true. I mean Chet will go there, I’m sure. It’s
absolutely true. I can’t tell you the number of clients I have spoken
to, who go…”Well, we tried that once and it didn’t work.” So what
did you try? And how many times did you try it? And how many
different modalities did you try it in?
JAY: It’s sequential. We tell the story that this program, that the last two
programs we sold, we would have sold nothing. We sold $7.5
million dollars.
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PAUL: And then create relationships with them…and then, using them to
network at that level. So you network at that level and then push
down to the associations, who push down to become your clients.
MAC: This is all done in the spirit of benefit for their ultimate members.
You have to keep that in mind.
JAY: And you have…and this is true…people will tell you this: I
think the reason that my, not only marketing, but almost every
other endeavor I ever did, such as selling, was successful -- not
just successful, but massively successful -- is because my intent
was right.
Like on this one, we just changed this whole program Sunday night.
And a couple of people said “Noooo!” And I said it doesn’t
matter…our intent’s right!
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PAUL: Yes.
PAUL: The meta-strategy is the level of caring and concern you bring
to it.
JAY: Absolutely. And I submit that if you men and women get that and
that alone, and you drive it through the mindset that absorbs,
through just observation and experiencing it up here or on the
phone, you can’t NOT have a more externally-focused, empathic
and sensitive respectful… Because that’s what it’s all about!
It’s about making their lives better. It’s about making their success
more assured…
And if you talk about money, the reason that I correlate joint
venture money to tangible actions is not merely because I know that
metaphors, similes and picture examples are what drive people…but
because I think in terms of what it could really mean to them, and
that’s how I see it.
And it’s all a very genuine attitudinal belief system that I live and
translate into everything that I do.
Other points?
MAC: Yeah. If there’s anything that you can learn from Jay is that it
doesn’t go without saying. It just doesn’t go without saying.
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It goes without saying what they know what they are going to use
the money for.
JAY: And in multiple ways, because they don’t necessarily have the same
value scale that you do. So if you think “Wow! They are going to
want to put this into their pocket”... They may not. They may want
to put it into something noble.
So you have to give them three, four, five very varied examples of
how it could be translated, so you could have a shot of resonating
with them.
I’m just telling you what I’ve learned from a lot of experimentation.
Chet?
CHET: So at the tactical level, I just want to say, Jay did something off the
top of his head that I want to make sure nobody missed. And that’s
when he was talking to Will, he was saying “Now, Will, a lot of
these other systems, they come in and try it…and have you ever
introduced something that didn’t work to your clients? And Will
said “Yeah, we’ve tried that…” Jay said “Well, that’s because they
don’t have a sequential effort for it, so what we want to do…”
PAUL: And if you don’t do that, let me tell you, you won’t get it.
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(Just like I tell you guys, “Don’t worry, we’ll get you there by
Friday.”)
“Don’t worry, our goal… I can’t promise, but our goal is to get
you 15,000 people in the next twelve months, and then double it
every year thereafter, and when we are done with that,
reactivate 25% of your inactive ones. But we have to do it in a
sequence. So all you have to do is work with us. You’ll love the
communications because they are not hype-y. They are very
qualitative, and they are very consistent with what you’ve…”
Which is really cool, and you are right...That’s a very subtle thing I
do.
JAY: But I do it naturally now. But that is strategic. It’s not accidental.
You’re right.
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CHET: It’s going to take ten to eleven to twelve tries. We’ve done it
ourselves when Jay and I do joint ventures.
JAY: Also, what I do is insinuate my bad self into their lives innovatively
and say:
“We are going to do some really cool things that nobody else has
ever done, like (and we’ll pay for it of course) …we are going to
send tapes out. We are doing this. We are going to have a
conference call. We are going to create a custom book on it for
you.”
“Not only are we are going to have a custom plan, we are going
to create and gift you, as long as we get enough of your
members on board. We are going to create a turn-key
marketing program that if they had to buy it, it would be
$2,000. But we are going to give it to these people free, because
we want them to be the most successful massage people so
they’ll be on the phone all the time. They’ll be basically saving
more money, and they are going to be generating more
opportunity…”
And you just think it through, and you really believe that in your
heart.
MAC: One of things that Chet pointed out, that’s very insightful.
MAC: That also has the effect of answering the essential objection, which
is “This is too good to be true. Why would it work when the others
haven’t?”
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MAC: Because that’s the essential underlying “I don’t trust this,” and
having dimensionalized it and all. All these forms…it’s not magic.
It’s hard work -- clear, sequentially-planned and experienced hard
work. It goes there.
JAY: And one of the things I always try to do is preemptively attack the
uncertainty, or the negative as a positive. I’ll say:
“Hey, let me tell you why most programs don’t work. Or let me
tell you what most self-consumed companies out there don’t
even sense. Or let me tell you the questions that I would ask,
and questions I doubt if you would think to ask, that you
should…”
Nobody does that, because they sort of want to skirt all that. I say
this:
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CHET: Yes. So now how do you duplicate what Jay just did, so that it’s not
just the two of you doing it?
You “storyboard” it. You build that core story that I talked
about. But if I were to structure that for your situation…(and
mind if I use this thing here…)
Picture any core story or any presentation that you want to make.
It’s kind of like a giant funnel. At the top of the funnel, you want
broad information that is of interest to the client. And in your case
again, we’ll go with you guys. I’d start off with association
problems.
So let’s say you are selling to associations. So I’d have the title of it
be “The Four Biggest Challenges Facing Associations”.
So let’s start off and say “One of the challenges is making their
affinity relationships effective. Another challenge is a lot
associations go out of business.” And I’d literally show that 17% or
I can tell you for a fact, what is it, one out of every 25 companies
survives ten years. So you can say one out of 25 associations even
survives… So you have this pain section, and you’re talking about
all these problems facing associations.
And one of the things they’ve always tried to succeed with is with
telephone offers. And again, a lot of these have failed. Have you
had experiences where they’ve failed? Yeah, let me tell you the
problems with telephone systems and why they fail.
And if I’m agreeing… It’s called the “head and pendulum.” “Yeah,
I agree with that… Yeah, I agree with this…” And they are
agreeing all the way down the line. If when we get to here, at the
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And then, I’d have the “how to buy,” and then that’s a set-up,
whether they buy from you or not. Just like Jay said, “Whether you
work with me or not, here’s the three or four things you’ve got to
have in your telephone relationships…”
And at that point you are ready to talk about “Now let me just tell
you a little bit about how we work.” And you just pretty much set it
up that you are the logical choice. And if you do a good job with
this and I’ve offered the one that I’ve complimented on…
One of you guys sent in your core story, so I’m going to show the
one that was sent in yesterday morning, and then I’ll show you how
to make it ten times better. Well, maybe not ten times, because it
was a good job. Twice as good though, how about that? OK?
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So those guys are out there, and a lot of them don’t realize it. So I
put a low figure in the ad of $50K. We put $250K PLUS, and then
it says, “Build an empire in our company.” It’s all these things that
attract a certain type of mental type.
And one of the women that responded has been in the business for
17 years, and she’s made $250K a year every year for ten years.
She doesn’t even need a salary.
And there’s six or seven or eight other people competing for that
job.
CHET: The implication is that what you want to do is have ten people. Put
the ad in the paper. Have a big number in there. In other words,
what will you pay Jay, or what could Jay make? Or what could I
make if tomorrow I went to work for you, and I could bring you ten
monster associations? What kind of money could I make?
JAY: You could even be…How about “Make $50K to $250K a year,
each and every year for the rest of your life, from now on, by
just using your old relationships or contacts better.” Or
something like that?
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CHET: The point is that there are people out there who don’t need a base
salary. You can’t afford to be really paying for top, top talent.
There are guys out there.
A client I had got a stock broker who used to make $800,000 a year,
and then he did his own portfolio for a while and he lost his shirt in
the last couple of years in the stock market. The guy’s a total
player. He worked for one of my clients.
But you doing that long enough to codify it, teaching people who
won’t do it as well as you, but some will. And not just
salespeople who call cold, but being even more strategic and
leveraging, saying “Who’s already got the relationship? Who
just retired as the head of an association or the Association of
America?” or “Who sells product to all the mail order
publishers?” or “Who does this or who does that?”
And using some creativity, because with some time and a little
money spent in the strategic contemplative stage will pay such
handsome dividends that are compounded when you start
implementing, because it will shorten the timeline and enhance
the timeline.
CHET: Yeah. I’m saying “How do you duplicate it?” Because they want
to build a company, and they are in a situation they need to get
themselves out of. And it could be just the two of you, or you can
have these ads running every other week, and you can cycle
through. Even if they don’t work out, they’ll still bring stuff…
JAY: Let me make a point that’s very comforting for you. And people
know that I’m reasonably strategic, but my business is more of a
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Screwing around without much of a staff, I got one guy that made
me $600,000 in three months just by setting up e-mail
endorsements. And we made it in three months with affinity
groups.
And that was like one little deal. But you can do that if that’s part
of your strategy.
So the first part of your strategy is figuring out all the different
entities and organizations are. The second part of your strategy
is figuring out who has influence. The third strategy is
building…by the way…if I were you, I would build at least the
model marketing, before I’d try to talk to them because people
are going to say, “Show me what you are talking about.” And
then you are not going to have it. From the time they are
interested, to the time you get stuff to them, there’s going to be
lost torque.
JAY: But we don’t know if he’s got a successful one. He’s got an ad or
an e-mail that might suck. Truthfully. So what you want to do is at
least have a trial frame. Don’t you think, Mac?
MAC: Absolutely.
JAY: Because if not, they are going to say… I’ve done this sometimes. I
get so excited and say, “OK, let’s do it.” And then I don’t get
around to doing it. By the time three months goes by, we’ve
forgotten what we are doing.
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I’d get some trial marketing pieces together. They don’t have to be
perfect. But you are going to have every sequence. You got a
letter. You got an e-mail. You’ve got a booklet. You’ve got a tape.
A script that you can show them. You’ve got events. You’ve got
invitations. You’ve got all these things, and say “These are just the
models we use. We will customize them to the situation. And we
will figure out the sequence and quantity, once we get greater
detailed feeling and we won’t do anything till we do some solid,
immersion research and connection with your group, which you
should never let anyone else do that…I’ll bet most people have
done that, haven’t they?”
MAC: One of the things I have learned from Jay is that a powerful
concept will trump perfect execution.
One more final element that is going to make you so much money,
that you should pay homage to me, for pointing this out…now I’m
not trying to be arrogant. I’m going to be…this is like where I’m
really good…
Once you set all these people up, you say to them “Yes, and after
we do this for you, we are so well connected that we have and are
continually identifying the highest quality external value service
providers in the country -- We will then bring other quality
services to you.” And you end up being in the toll position, and
you control more deals that you put through that distribution
channel and that can make you more money than you make
from what you do.
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JAY: But somebody can do it. You just have to find who’s got it.
There’s another question. There’s another strategic question. And
it’s like DSL.
And let’s say you find eighteen other companies that have affinity
programs they don’t know how to sell and they’re not competitive.
And you go to them and say “Hey, I’ll tell you what. We’ve got a
way to open up all kinds of major groups. You can be our
second thing. We don’t have enough money to fund seven sales
people. You guys put up the twenty grand a month, and let’s
try it for six months for a lousy $120 grand. If it works, you can
make that in advance against our commission.”
There is all kinds of neat ways to do this, if you don’t have the
money to do it.
PAUL: Yes, so they could go strategically into being a conduit for people
into the association.
JAY: Here’s what I think: Most people are tactical. They say “We are
going to bust our butt. We are going to create an affinity group.
We are going to have the most trusted relationship with a thousand
entities, and we are going to do nothing else with it.” And then
there are all these other deserving people who can’t get access to
them.
If you say “Hey, are telephone business is cool, but our real asset is
our distribution channel.”
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Number one, they would get a better deal, better guarantee, better
value, better bonuses, better terms, better bonuses, and I always did
it so that the newsletter publisher came out a hero.
But people who emulated me, they didn’t get the strategy. So they
whored it, and slammed every piece of crap in there, and pretty
soon, it became ineffectual because it lost its integrity.
MAC: Absolutely.
Anything else?
JAY: Kudos.
CHET: But that would fail completely at the tactical level, if that were not
properly executed.
And one of the ways which we’ve already talked about, and Jay
already mentioned is mass teleconferences. You know, join two
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Joint Ventures: From Mediocrity to Millions
JAY: And you have successful ones, bringing them on, and where’s
Brett? He’s said “Who implements?” And I said it’s always the
responsibility of the company setting up the strategic alliance. If
you depend on the affinity group to implement, you might as well
go into another business.
But they will always have total editorial approval. They won’t care.
But it makes them feel like you are not trying to take over, or
exploit negatively their organization.
MAC: I have done hundreds of those deals myself. If it’s your primary
business, it’s your primary responsibility....to keep it going. It’s
not theirs. It’s going to be an additional buck for them. But it’s
your bread and butter. Just consider it in that light, and you’ll know
where to put the emphasis.
JAY: Cool. OK, Paul and Chet -- did we lose them both?
MAC: And you have to realize it’s a secondary stream to them, and
sometimes they get wrapped up in their primary business.
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