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JP Maroney’s “The Art Of Profitable Growth!

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© Copyright 2005-2007 JP Maroney All Rights Reserved

A transcription of JP Maroney’s business-building


workshop on how to set the strategy for your business and
implement real-world tactical tools to help you grow your
client base, keep your existing clients and generate
windfall profits…

By JP Maroney
Business Growth Strategist,
Author & Speaker
http://www.JPMaroney.com – main
http://www.JPMaroney.net – blog
Toll Free: 1-800-304-5758

© Copyright 2005 JP Maroney All Rights Reserved


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WHO THE HECK IS


JP MARONEY?
JP Maroney, is an American entrepreneur and
CEO of Marocom Group, a collection of
companies and joint ventures involved in
publishing, media, training, consulting and
internet commerce.

Self-described as a serial business-builder,


Maroney started his first venture at age 19,
when he created a t-shirt company called Cool
Alternative. He also formed his first joint-
venture, teaming up with a large screen printing
company that produced shirts for MTV, Clint Black and other superstars.

He soon after launched an advertising and marketing agency that created


print media and eventually ventured into radio marketing campaigns. His
fledging venture initially churned out creative promotions for local and
regional companies, but eventually broke into larger opportunities when he
landed an account with a local company that had recently become a publicly
traded company.

At age 22 he created his first magazine, a travel-oriented publication called


Escape Magazine, which he eventually published in Texas and Louisiana.
That success and his growing interest in publishing eventually lead him to
buy a weekly classifieds marketing newspaper called PennyWise.

Maroney jokingly calls this his insanity period when he was spread out
between too many projects without the business acumen and infrastructure to
manage it all. Everything came crashing down on him when a large
advertising client fired its marketing director – Maroney’s lifeline to the
company, and his agency lost the account.

At age 25, he lost everything. Went bankrupt. And, had to scramble to


survive… working as a waiter, shoe salesman and pizza deliveryman. But,
his fortune changed when a friend suggested another magazine he thought
Maroney should publish.

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Over the next three and a half years, Maroney built the publishing company,
eventually publishing editions in Texas, Oklahoma and Louisiana. In 1999 he
sold the company and launched another business as a speaker, author and
training programs publisher.

Maroney has lived through what most speakers and authors can only ''talk
about.'' And, in the process, he's has tasted both sweet success as well as
bitter defeat.

Today, as Founder and Chairman of Marocom Group, Maroney controls


ventures in publishing, media, training, consulting and internet commerce. He
is Executive Producer and Host of ''People Builders'', a video-based
continuous performance improvement system used by companies
internationally to develop their employees and managers.

A thorough researcher, writer and best-selling author, Maroney is the author


or co-author of more than 30 books and audio/video learning systems. His in-
demand articles and columns appear in dozens of print and online
publications throughout the US, Canada and Internationally.

Additionally, he has collaborated, organized and published business and self-


improvement books with more than 70 other speakers, trainers and
consultants.

A frequent keynote and seminar speaker, JP teaches proven principles, ideas


and strategies that have been hammered out on the anvil of experience. He
blends his personal stories and experiences with real-world, applicable
knowledge to create a memorable, motivating event for every person in
attendance.

Audiences consistently leave JP's presentations motivated, inspired and


equipped with new, actionable ideas they can use immediately. In fact, JP is
one of the rare speakers with the ability to both motivate and educate within
the same presentation.

JP is perfect to open or close a convention or meeting with his unique blend


of information, motivation and humor, tailored to fit the theme or focus of
your meeting. He can also present one of his powerful "how to" workshops
during a breakout or concurrent session.

© Copyright 2005 JP Maroney All Rights Reserved


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Are You Really Ready


For Explosive
Business Growth?
THE heights by great men were reached and kept were not obtained
by sudden flight, but they; while their companions slept, were toiling upward
in the night. Longfellow.

He said the heights by great men- not mediocre people, not average
people, not people satisfied with status quo, but great people had reached and
kept – there’s the key phrase. It wasn’t obtained thru sudden flight which
means they weren’t an overnight success. They weren’t a 30, 60, 90 day
wonder. They weren’t a person who was born with a silver spoon in their
mouth. They weren’t a person who was born with all the talents and
achievements and excellence ready and waiting for them.

The key phrase is while their companions slept ~ while other people
slept, they toiled upward in the night. You see all exceptional entrepreneurs,
all exceptional business people, all exceptional companies operate by a
principle called the slight edge. The slight edge is simply the willingness, the
initiative, the passion to do at least a little more than what others are willing
to do. Y’all believe that? Y’all buy into that?

You see it’s not really usually the big, huge massive things the
massive changes that bring about success and progress in business and in life
~ it’s the little things. I’ll tell you what, in fact this is for science have you
ever been bitten by an elephant?

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No?

Ok, then have you ever been bitten by a gnat or a mosquito? See, it’s
the little things that get you. It’s the little things. It’s the little things that
make a difference.

We’ve all been exposed to maybe an Olympic event where they were
racers racing toward the finish line and at the last moment, one person took
first place just by a fraction of a second. We’ve all seen the NASCAR Races
just by part of a bumper - the difference.

The Slight Edge


Business is no different. The difference in succeeding in business
today is many times, the little things, that can separate you from your
competition…..that can separate you from the pack, that can help you rise
above all of the noise that we’re dealing with. The messages.

You know we have our phones, and instant messenger and


blackberries and we have everything – fighting for attention. And you drive
down the road and you see the messages and you go gosh as a business
owner- small, large, whatever size you are, how do I get thru that clutter.

Well, it’s the little things ~ it’s the slight edge.

Would you agree that we are building our businesses in times that are
more competitive than they have ever been in the past? And would you agree
that customers today are expecting more than they have ever expected and
are wanting to pay less for it.

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Sure, we are building our businesses in times that are more


competitive than they’ve ever been before. There are changes taking place
and shifts in the marketplace and new people entering industries where they
were never, they were never competitors in those industries.

Look at people like the cable television industry and now they’ve got
satellite and the phone companies are now ramping up to offer broadband,
video and audio and on and on and you sit around and you look at the travel
industry, for example and the changes that have taken place.

And so we can’t sit by and assume that it’s going to be ok. We can’t
just assume that if we continue doing what we’re doing, we’ll get what we’ve
always gotten because we’ve all heard that phrase, right? Well the fact is..is
that phrase is false because how many people do you know that are still doing
what they were doing 10-20 years ago and they are going broke doing it. We
have to adapt and change and update with the times.

So my mission, my purpose – Well, the fact is that in this 2 hour


session, I will give you proven principles, ideas, strategies, real stuff that will
work to help you grow your enterprise if we never ever speak again ~ if you
implement it.

How many of you have heard that knowledge is power? Y’all heard
that before? That’s the biggest crock. Knowledge is not power.

How many of you know people – you are maybe one of these people
– who have in your office, notebooks from the last association conference to
the last seminar that you went to and you keep intending to get back to all
that stuff you wrote down and do something about it. Any honest people in
the room? Ok, I thought so. Right?

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We get so busy and so we go to the things like today and I tell you
this is free this is a major gift from SBDC to you today because this is a
multi-million dollar idea strategy setting seminar. This is not a gimmick or a
gloss over.

So you will get knowledge but if you take it and do nothing with it,
you will have wasted your time. They say that knowledge is power. I would
say in your handouts on the right, there is a ‘capture your thoughts’ that’s for
the little ah hah! kind of things.

This is a good ‘capture your thoughts’. The acquisition of knowledge


and the application of knowledge will make you a very powerful person for
the rest of your life. You believe that? One more time: The acquisition of
knowledge and the application of knowledge will make you a very powerful
person for the rest of your life.

It’s not just about getting more knowledge, stacking more books in
our library ~ it’s about doing something with what you learn and that’s what I
want to give you today. Not only the knowledge but what you need to
succeed and actually do something with it.

I have a mentor – he passed away several years ago but he was


someone who meant an awful lot to me – he was a multi-millionaire, he was
a very successful person but most of all he was a giving person. He used to
have a phrase, he said if you want to get, you’ve got to give. You gotta give,
give, give if you want to get, get, get. That’s law!

And he had a phrase that he used to say and I give this in every single
seminar I deliver, every keynote I deliver and that is:

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“If you want to be a master at anything, study what the masters have
done before you. Learn to do what they have done, have the guts to do it. And
you can be a master just like them.”

One more time: if you want to be a master at anything, I don’t care


what it is, master of selling, master of building websites, master of publishing
newspapers, master of selling credit card processing services, you want to be
a master parent and the best parent you can be ~~study the masters, the
people who have done it successfully, learn to do what they have done and
what that means is to learn how to apply it to your life, to your business, your
situation, and then have the guts to do it; the courage to do it and you can be a
master just like them.

People ask sometimes I put this up, people ask what is your agenda,
what is your reason for being here. There are a few of you here that know my
wife. My wife has a good sense of humor. We had been married about 6
months and we were sitting at a restaurant and she said you know why I
married you. I said well I have a pretty good idea. And she took out a napkin
and she wrote my name on the napkin and I thought she wanted to be a
Maroney and she made a mark and she said that’s why I married you.

(Laughter)

Of course, she was joking but truly this is why I’m here today. To
help you make more money.

Now there are, I think there are a couple of organizations represented


here that are non-profit or charity type organizations that operate in the non
profit sector, but if you take what…..number 1 money is the only score
keeper that we have, so if you are in the non-profit sector, you can apply this

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to how to bring in funds to operate your enterprise – operate your


organization.

How to make more money – and get more


out of your business
But how to make more money, how to draw out more from the
business that you created and hopefully, I’m going to guess that there are
people who are here that you’ve thought there’s got to be more to it, there’s
got to be something I’m missing, it seems like we should be doing more than
we’re doing, to be selling more than we are selling, we should be getting
more profits that we’re getting out of the business and hopefully I’ll unlock
some of the keys, some of the little locks for everybody.

How many of you saw the movie The Pirates of Silicon Valley,
anybody see that movie? It was about the early days of Microsoft and Apple
computer, the early days of personal computing. If you haven’t seen this
movie, you can rent this movie and it’s actually a really good movie to watch,
but in the movie, the character that played Bill Gates is, I believe at a
computer conference and he’s off in the sidelines at this computer conference
watching someone from Apple speak and (if I got the situation right) but he
makes a statement and he said:

“Success is a menace. It fools smart people


into thinking they can’t lose.”

That’s a profound statement when you think about that. The moment
you think you have it all together and that you can’t lose is the moment that
you have begun your walk down a very, very dangerous road.

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Take the caps off – remove all limitations


So what I want you to do when you look at your handout where it
says what can I expect from today’s seminar at the very beginning of the
introduction. What you can expect from today’s seminar is to take away
strategies, specific things that you can do – depending on the amount of time
we have I may get involved in some of your businesses individually today to
be able to offer you some specific ideas for what you can do but to be able to
take that away - but here is what I ask from you is that you take the caps off.

When I speak and consult with companies, I first usually meet with
their executive team and then we’ll meet with maybe the sales and marketing
team and then maybe with the entire company and roll out what we are trying
to achieve and accomplish and I always say this: takes the caps off.

I wasn’t kidding. When I work with organizations, we end up making


connections many times that people never ever made before. We find ways to
bring in more customers than has ever been brought in before.

When I say double or triple your business in 2005, that’s not a joke,
that’s not an advertising slogan ~ that’s a real possibility, if you take the caps
off. Remove every preconceived notion you have about marketing and
advertising and what you need to spend on advertising and marketing ~ take
all of that away and let’s go thru some real world specific things that you can
do.

The VITAL difference between


Strategy and Tactics
I want to talk very briefly- if you’ll follow along in your handout- the
difference between strategy and tactic, because this is a very important

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distinction that many people do not understand. Many times people will go to
a seminar and they’ll hear an idea- something that they could try, something
that they could implement- and that is alright, maybe they’ll hear well they’ll
hear somebody say maybe you ought to send a postcard out to all of your
customers.

There’s some realtors in here, right? You should farm a particular


area, you hear something and this is the postcard you should use and this is
how it should be worded or whatever and they go away and they try that and
sometimes it works for them and sometimes it doesn’t.

Well what happens is many times they’ve gone away and that is a
tactic. It’s a way to accomplish your strategy, but instead they started
backwards. They started with the tactic first and it may not have fit into
their overall strategy of their business and so it’s important to
understand the distinction between strategy and tactic.

Strategy is the overall ruling set of plans, purpose, mission, vision in


other words where you are headed. It’s the overall plan.

When the organization puts together a strategy, it’s this whole big
picture of what we’re going to do and it includes and encompasses the tactics
that will be used.

What about tactics?


But the tactics are the actual steps or tools or techniques or follow-
thrus that will help you achieve or implement that strategy. Does that make
sense?

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It’s an important distinction because you can pick out different tips
and tricks and things from marketing from this seminar, from a book, from
interacting, you know, from masterminding with other people but really what
you need to do is back up a step and look at what is the overall strategy of our
organization and how do we want to be perceived in the marketplace.

What message do we want to convey? What is our overall objective?


Is your overall objective in your marketing and growth strategies? Is it to
become the best known, the most trusted, the most valuable service provider
in that particular area or is it to acquire customers at the most rapid pace as
possible so you can sell out and retire?

See, those are two totally different strategies and they require a
different set of tactics. So it’s important that you really understand that in
order to grow ---- and build an ongoing successful enterprise as you need an
overall strategy for where you are headed. And then you need the tactics for
implementation.

The ONLY 3 Ways to


Grow Your Business
Now, there are only three ways and I share this and this is one of the
most profound things that you will ever learn in your life. And I am a very,
people that know me I am, this is one of my bests friend right here, Jeff
Morris, people that know me know that I’m fairly simplistic in my approach.
I believe that there are only 3 ways to grow an enterprise. Period.

There are only three ways, so let’s take a look at what they are.

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1. Number one and you can write this in your handout: you can
increase the number of clients, duh, right? I knew that – I didn’t have to
come to a seminar for that. (laughter) But, uh, increase the number of clients.
This is where most people start and stop.

And this is where they make the biggest mistake because, it’s kind of
difficult to read that, it is the most expensive way to build and grow your
business. It’s also the most narrow margined because it cost more to acquire
to sell to a new client than it does to acquire and sell to or to go back and sell
to an existing client.

The relationships built, you know, you don’t have to put on all other
layers. Many times you don’t have the same expenses so it is…there’s a lot of
value in going back to people but that’s important because every business has
a triton.

Any one in this room that says I never lose customers, you are not
being very honest with yourself. Eventually, ultimately you lose customers
for a variety of reasons. We’ll talk about what those reasons are. But
increasing them- that’s the most narrow margined the most expensive.

2. Increase the size or dollar volume of client transactions.

You can do this in a variety of ways. First, you can do add on sales,
cross sell additional products, you could increase your prices. I talked to a
dentist the other day, he’s maxed out, he has 2 ½ staff members, 2 full time
and 1 part time staff member and we’re talking about business strategy and
some things that he can do and he said you now I would like to increase my
income but I know I’m going to have to hire more people and I said so you’re
at max capacity. He said yeah, I said, so go up on the prices. He said, well I

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went up on them 6 months ago. I said you lose any customers? He said well,
no. I said, Well good; go up on your prices. Because he can support that. So
he can take, growing a business is not just about going out and getting new
customers. Many times it’s maximizing those existing relationships more
effectively. I asked him, I said, where are you in the price range compared to
the industry. He said I’m about average. Well, it’s ok to be on the top end. If
you are really good at what you do. I talked to a guy last night that‘s in the
video business, not this one, a guy last night in the video business - bills $200
an hour for post editing- the stuff that happens after it gets shot and we were
talking about that. He said I’m maxed out on my capabilities.

I said well go up on the prices. And people are afraid to do that.


Sometimes we are afraid we are going to lose some business but you may
lose some business but you will be doing less work and making the same or
more money.

Maximizing your time. And he said well you know and we could get
into some stuff. In a couple of minutes, I gave him one specific strategy that
he could utilize in his business without going up on his prices that would
make him an additional $500 a month – that’s 6 grand a year by making one
phone call instead of doing it himself. Okay, so there are other ways to look
at maximizing profitability.

3. Increase the frequency or number of transactions. Get them to


buy more often. Get them to come back..again and again.

Those are the only three ways to grow your business. If you go and
increase the number of clients by 10% you have grown your business by
10%. Okay, you have increased it by 10% or if you increase the size or dollar

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volume and go up on your prices by charging 10% more on everything that


you do.

You can take any one of these areas but I want to tell you about it, it’s
an expediential multiplier, people get this big thing, they say aw in order to
grow I’ve got to get all these new customers or I’ve got to learn how to cross
sell or I’ve got to really make a big difference. If, however, you increase each
area by 10% what happens is you do not increase your business by 30%, you
increase your business by 33%. There’s an expediential multiplier for
growing in increments in every area of your business. That’s why when we
talk to people; we say yes we need to find ways to increase the number of
clients.

I have a client right now, a retail business that we implemented a


strategy beginning from last October until today- he had 2000 clients in
October and today he has over 7900 clients or clients in his database. So 5900
new clients. By acquiring new clients and I’ll show you some neat ways you
can do that. But you also then want to look at how can we increase the dollar
size of dollar volume of each transaction and how can we increase the
frequency.

So as we go through the specific strategies, I will refer back to that


and I’ll explain to you how that can be done.

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Strategy 1: Separate
yourself from the
competition

I told you there were 5 ways to grow your business – to double or


triple your business. Under these strategies, I will talk about some of the
tactical things that you can do.

Michael Dell, you know that little start up down in. If you’ve ever
read Direct by Dell, if you haven’t, that’s a great book by the way, Direct
from Dell or Direct by Dell. He wrote that differentiation as a strategy should
be common sense when you are seeking to create and maintain a competitive
advantage but often it’s not.

I could go around the room today and I’ve done it before when we
have more time and ask each and every one of you what makes you different
from your competition and most people have an extremely difficult reason or
ability to come up with the answer for that.

They have a hard time coming up with that answer because they’ll
give me an answer and I’ll say yeah but does your competition do that.
They’ll say well yeah, as a matter of fact, they do.

So give me something else. Differentiation. What sets you apart?

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You need to be thinking about that. How you can separate yourself
from the competition. How you can make yourself appear different. Better.
Preferential to others in the marketplace. Thank you, Don.

Differentiation – let’s talk about that. Peter Drecker said a company


exists for one reason alone – to create a satisfied client. Period. That’s it. End
of sentence. That’s it. To create a satisfied client.

See people all get caught up in the stuff, the minutia, the stuff from
day to day, we’ve got to do this, we’ve got to do that, we’ve got to buy this,
we’ve got to implement this and the fact is that we’re here to create clients.
Satisfied clients – that’s ultimately our objective. No matter what we do in
the organization.

Client VS Customer
But let’s talk about what is a client because I’ll bet that most of you
when somebody says who are the people that buy from you, you’re going to
say there are my customers. And after today, you may use the word customer.
But I want to, in your mind at least if you don’t change your vocabulary, I at
least want to change in your mind the understanding of the difference
between a customer and a client – It is profound! It’s absolutely life changing
and business changing.

A customer – look it up in the dictionary – a customer is one who


purchases a commodity or a service. They buy from you.

But if you look up the word client in the dictionary, it says one that is
under the protection of another.

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Do y’all see a distinct difference between those 2 statements? See you


can have people that come and buy from you on a regular basis – maybe they
buy advertising Joycelyn- from you on a regular basis and when they fax over
the order, you design their ad or take their ad slick from them and you put it
in your publication. That’s a customer.

But if you have someone who either interested in buying advertising


from you or who is interested in doing business or who is already doing
business and they are a client, not a customer. Then they are under your
protection. You become their advisor, their advocate, their trusted advisor,
their consultant and you begin to look for ways to help and assist and grow
their business regardless if you get something out of it.

Becoming a trusted advisor is caring so much about the people you


serve that you put their interests ahead of yours. That if you hear them talking
about that their children are getting close to a certain age and maybe you sell
a particular product that is a investment product that could help for college
later on or something like that and you hear those things ~ you immediately
grab on to that and you don’t think to yourself, well there’s another
commission. You say there’s another opportunity for me to ------ I care, for
me to protect them because I know their kids are going to be getting older
and older and as they get closer and closer and finally they get ready to go to
college, what if those people don’t have the money- where will they turn.

When you know the difference between a client and a customer, how
does this change the way we provide our services. Do we see more value in
up selling or cross selling?

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You see I talk to people all the time and they say I’m not a very good
salesperson – I don’t do that part very well. Yes but could you be an advisor?
Could you help people? Well, yeah I love to help people. That’s really what
selling is.

Selling is helping people. Selling is discovering what are people’s


needs. What is it that they – what’s their pain, what’s their frustration and
how can I fix that? That’s what being a trusted advisor to a client is all about.

In order to create that edge, that distinction that differentiation, stand


out from the competition, you must offer your clients or prospects a unique
and distinct advantage or benefit and it must be above and beyond that of the
competition. That’s a fact – it must happen or else there is no reason – why
would they choose you.

Why would they choose you? Back up for a second, back on page 2
because I want to (we didn’t put a Power Point on this) I want to go over this
– we talked about the strategy of preeminence. Remember when I said you
put their interests ahead of yours.

The strategy of preeminence is simply looking at how can I position


myself in the marketplace where I become the choice – in other words –
when people think of what I sell- how do I get to a place where they don’t
think of anyone else but me. That’s preeminence.

See what happens when we talk about distinction or creating a


difference between what your competitors are doing and what you do, it’s
possible that you could be doing the same things but if you find something
that no one else is talking about and you promote that, that you can use that

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as a distinction between you and everyone else because you are the first one
to talk about it.

I’m going to give you an example. I believe it was – trying to think of


the beer company – this was years ago, they were trying to create their
marketing plan and their entire marketing message and when they were
interviewed, the guy that was going to write this copy for this particular ad
was asking the owner of the company and the executives of the company, tell
me about it.

He was trying to find the distinction, the difference – everybody made


beer the same way and so the executive or the owner of the company began
to tell him about all of the pains that they took to make sure they got the
purest water and the processes that they took to and how they cleaned their
equipment and made sure that everything was sanitary and went thru the little
minute detail after detail after detail about how they made their beer.

And the guy says well there’s the story. There’s the distinction. But
the guy says everybody does that. Yeah but if you’re the first one to say it,
they’ll think you are the only one who does it. So you begin to look at your
own business and maybe things that seem mundane – it’s hard to do it for
yourself, many times it’s hard.

Sometimes I’ll do an interview with someone and we’ll take that


interview and transcribe it and from there we’ll get the information we need
for their sales message because I can ask them questions and they can talk
about all the stuff right off the top of their head (snapping fingers) but it
doesn’t seem significant to them but therein lies the story.

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Therein lies the hook or the distinction or the difference and you go
oh wow ------------ no one else does that or no one else is talking about that.
So finding a way, setting yourself up preeminently as the provider and then I
want to talk about one last part preeminence of creating in the mind of the
customer or client that you’re the choice is risk reversal.

Risk reversal ---- not buy our product and if you don’t like it bring it
back and we’ll exchange it or whatever. That’s a guarantee. That’s not risk
reversal. Risk reversal is this.

A guy had a pony that he wanted to sell and he told these people who
were interested in the pony, he told them I tell you what, take this pony, give
me the money it’s $500, take the pony home, let me know at the end of the
month what you thought about it. If you don’t like it, bring it back and I’ll
either give you another pony or else I’ll give you your money back.

But another guy had a pony and here’s what he said. He told the
family, the horse, the pony is $750, but here’s what I want you to do. I don’t
want you to pay me; I want you to take this pony home. I’m going to bring it
over to you, I’m going to bring you some hay, some feed, I’m going to bring
you a brush so that your daughter can brush the pony and I’m going to show
your daughter how to care for this pony and what I want you to do, I want
you to keep that pony an ride it for a month, love it, give it carrots, give it
apples and at the end of the month, if you don’t feel that this is the best pony
you’ve ever seen in your life, I want you to bring it back and you don’t owe
me nothing. However, if you like the pony, you pay me the $750.

I wonder which pony they bought.

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Risk reversal. Any time in your business that you can remove the risk,
take away the risk of doing business with your organization and in every
industry there is a way to do it.

One of the most tricky or creative or maybe gutsy ----- that I have
seen – you realtors in the back of the room – is and maybe you’ve seen
people do this, they guarantee to sell your house in a certain number of days
or else they will buy the house or whatever or they will forfeit their
commissions or a variety of things. That’s gutsy. Now you know you’ve got
to have the market to back that up and you also have to know the capabilities
of backing that up but risk reversal is saying how can we take away the risk
in the mind of the client so that a-there’s no barrier for entry, that they can try
us and see if they like us. That’s really preeminence and it will set you apart,
it will set you up in the minds of clients as “the” person to do business with
because they can’t lose. They cannot lose.

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Strategy 2: Targeting
your ultimate buyer

When you begin to look at target marketing and understanding who it


is that buys your product or service, many people, I’ll go around the room
sometimes and ask who needs your product and people go well everybody
needs what I have.

In business many times that’s a failure or a downfall of a lot of small


business people…they think well everybody needs it so I need to market it to
everyone.

And yet there is a greater opportunity to focus with laser-like


precision to be able to not only get better clients but to spend less money
getting those clients. So let’s talk about some of the ways that you can do
that. #1 is to clearly identify who your best buyers are.

If you have not done this, you need to take some time and sit down
and work thru the process-what does the ultimate buyer look like, where do
they live, who do they work for, what types of businesses are they if you sell
business to business, what neighborhoods are they in, what regions or areas,
what do they listen to, what do they watch.

I talked about recording. If you, how many of you sell? I mean that’s
part of your job for your organization. You sell or market or promote. If you
have never done this, you really need to sit down and make a sales
presentation to someone and record that presentation and then have it
transcribed and go back and look at what is in that message – what is it that

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we’re saying. What are the key phrases? What are the things that we use to
persuade people to buy our product or service, but the important thing that
you can do with that is once you have that sales message down and you put it
in a form – you can put it in the form of a letter.

Most of you I saw you carrying in a letter, either the fax that you
received or the confirmation letter that I sent you back. A sales letter is
nothing more than a communication between two friends. A communication
between two people – it’s not some big abstract thing and so once you
understand that you can get that sales message into print, you can mobilize a
force of 10,000 fearless, faithful sales people – the ultimate sales person who
every day, regardless of how they feel, will go to work for you.

When it rains, during Holidays, they don’t take time off for vacations,
they don’t call in sick- if you ever harness the power and the ability of
communicating or using your sales message in print – in print, then you have
mobilized a force that multiplies your capabilities. How many people can you
call on? How many people can you call on in a given day or week? That’s a
good question. Yeah.

(participant): Probably about 10.

Absolutely. You could go around the room and every single person
has their limits of how many people they can call on, but if you can put your
sales message into print and first identify who your market is……you
wouldn’t want to mail it out to everyone, it would be a waste of time and
money and resources but if you could hone that message in and send it
ONLY the people who are ideal prospects for your service or your product,
you can multiply your sales efforts.

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It a powerful, powerful concept in the ability to leverage to bring


more business and then the key to that is testing- creating and testing
different offers. Not all people respond to the same offer, right? Not all
people respond to the same appeal so you try different things. Just test that.

If you have a list of 5000 people, send ½ of them one offer and the
other ½ another offer. See which one gets the best response. Code them.
When I deal with my clients, every ad, every postcard, every sales letter,
everything we do has a code on it. We code everything so that we can
monitor the response and track the response of those efforts. Otherwise you
don’t know if it’s working or not.

You know I was in advertising for years and that old phrase; I don’t
remember who said it, but he said, “Half the money I’ve spend on advertising
is wasted, I just can’t figure out which half.” (laughter) And the fact is that
people feel that way. But if you monitor it, there is no excuse for not knowing
which half isn’t working.

You can continually improve and grow and build it. So unleashing
that money and power.

Strategy 3: By the way, we are getting a 3 hour intensive business building


workshop in 2 hours; excuse me 3 days in 2 hours. We can walk thru every
single one of these and we will at some point, walk thru every single one of
these, step by step, step by step.

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Strategy #3: Building


Your Business with
Referrals, Alliances, and
Joint Ventures
This is strategy #3 is one of the most powerful ways that you can
grow your business because it’s a 3rd party endorsement. Let me explain just
briefly what a joint venture or a host beneficiary is just so that you clearly
understand the dynamics of it.

Here’s the idea – what are you selling? What are you selling? Ok, you
have the UPS store, so you have the boxes and the machines, the shipping
services, and all sorts of things. Ok, so a joint venture or a host beneficiary
relationship is …. I’m kind of picking on him for just a minute, but this is
good – you are getting a hot seat for nothing.

So is that you would look for and when you sit down and look for
host beneficiary relationships, I’m kind of skipping ahead to show you where
to look for them, but you would look for other organizations that target and
market to and sell to and have already cultivated relationships with the same
kind of people you want to do business with.

Okay, so that’s why you cannot do this without having first identified
who your target market is. You must have that down first – you really have
to. Once you have that the windows open up of the opportunities and ways
that you can grow in the market. So let’s say that you’ve identified – let’s say
it’s a printing company. We’ll use that as an example. I don’t know if that
would be a valid one, but let’s just say it was a printing company….would be

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a good target market. They sell to the same people but y’all don’t compete.
Do you sell printing? Limited, maybe business cards and stuff like that,
thermograph business cards and stuff.

Ok, but let’s just say that you went to them and you said look, you’ve
already cultivated relationships, you have 2500 customers that you do
business with on an annual basis who respect you, care what you say, you
know they like the products and services, you have a good reputation.

Here’s what I’d like to do-I’d like for you to be able to offer our
product and service to your customers. I’ll write the letter but you can
completely control what it says. I’ll bring it to you, you proof it, and you’ll
approve it before it’s sent out. But a letter goes out from you on our behalf
that says that the UPS Store has the following offer and we’ll make an
appeal. And you’ll come up with this, this will take much longer than 2
minutes but you’ll come up with an appeal. The special benefit to our clients,
the ABC Printing company, they are going to give 1 first month box rental
for free or your first shipping for free or whatever- you come up with the
appeal, the offer.

Just because you are a client of our business and so they send this
letter out. For every one of those that come in, you have prearranged with
him to offer him some sort of a spiff or incentive for sending him new
business. It could be that you give him services, your products and services
for free. It could be that you pay him X dollars for every new client that he
generates for you, but what happens is it’s like everybody surfs the web now
and you see the pay per click ads on Google and stuff; when you click on
those ads on the side and it says sponsored links, okay every time you click,
those people pay for that click, that company paid to have you come to their

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website. It might have been a few cents, might have been a few dollars. But
you see what this does is it allows you to pay as you go in your advertising.

Now this is no slam to publications okay or any other kind of


advertising but it’s absolutely opposite to traditional advertising and it says
you give me a check for this space or this commercial or whatever and if you
get customers, you get money back. This way you pay ONLY for the new
customers you generate.

I’m going to give you an example. Do y’all remember, Murphy, the


Jeweler on south Broadway, is one of my clients. Do y’all remember around
Christmastime they sent out an offer for gift certificates – for employee gift
certificates? Would any of y’all like to know the results from that? We spent
$90 on this promotion and we had 3900 and something gift certificates
distributed as a result of this to people in Tyler, Texas by their employers.

Okay, that’s been the result, for example in February they hit a sales
record they had not hit in 154 years in the company and March, we doubled
the sales over March in 2004 in numbers.

So it works. You look at ways to get other people to refer people to


your… Your minds, I see your little minds clicking…okay you’ve got to grab
on to this. The power of getting other people to refer business to you. Jeff
knows a little bit about the model that we’ve used with trade associations to
refer business to us.

We are now taking that same model and looking at other


organizations that we can do in the for profit section. But you can do this.
You can do this. You have to understand who your customer is, who else

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sells to them and then you make the approach. So knowing how to structure a
deal – I kind of explained in brief how you might do that.

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Strategy 4: Exploding
Sales & Profits with
“Back-End” Marketing

Alright. Exploding sales and profit with back end marketing. I used to
call this building your back end and some people got offended. (laughter)
Exploding sales and marketing, I told you to give away the first month’s
rental on the box; we gave a $50 gift certificate with Murphy’s.

What we looked at………..you must understand BEFORE you do


these kinds of promotions – that’s why all this fits together- it’s the big
picture. You must understand what the lifetime value of a customer is or a
client is for your organization. Once you understand what that value is you
don’t mind investing in creating more of them. Does that make any sense? If
I know that for every new client that I’ll get, on average, they’re worth $2500
in lifetime value to me, how much would you be willing to spend to get one
of those? Come on, I mean would you spend $100………..$500? You make
money every time. $200? I mean you could figure out what that number is .

You see I have people who have a very twisted viewpoint on sales
commissions. Very twisted viewpoint of sales commissions. They tell the
salespeople, they say you go out there and you get this business, sell a new ad
for my newspaper-I’m picking on you for a second-sell another ad for my
newspaper and I will pay you 20% of that ad revenue every single month
when those people pay that bill and some people are motivated by that and
some people aren’t. What if on the other hand, you told a sales person, for

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every new customer, as long as you maintain your book of business, for every
new customer that you bring in that has never advertised with our paper, you
get 100% of the first month’s advertising.

(Someone in audience): I’d be on the street. (laughter)

Would you? I don’t think so. I don’t think so because every single
month after that you’ll get the money, every single month you’ll get the
money and unless people are advertising 1 time then quitting, you get the
money every single month. That’s why you don’t mind.

Would you give….. Stand out there on the loop and say the first 100
people (how many boxes do you have by the way) mailboxes? Yes. 120…I
don’t know what your capacity is. I don’t know if that’s your main thrust of
your business, I don’t know if that would be residual income business – that’s
a profit center, okay, so stand out there and say the first 100 people you get
the first month free, the first 3 months free, whatever that number is because
you understand you are going to get the residual effect of it.

You gotta, like I said, take the caps off; don’t think about business the
way you’ve thought about it in the past. When we talk about as we go down
this referral process, we’ll talk bout how you can get existing customers to
get referrals. I have and I tell you, I’m going to come back to that because I
want to tell you specifically how you can do that.

But the lifetime value of a client- you must understand this first so
that you understand how much you can invest in them. It’s the total gross
profit of an average client over the lifetime of his or her patronage, including
all residual sales, less advertising and marketing and incremental product or

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service fulfillment expenses. In other words, it’s the profit that you make off
of every single client over their lifetime.

I have clients in a variety of industries, I have air conditioning


contractors on the residential side, the average lifetime of a client, the value
of a client for them is about $7000. I have some it’s $35,000, we have some
average lifetime of a client, several million dollars, okay, and then some it
might be $2500 or $250. I mean if your average lifetime value is $250, you
might want to find something else to do.

But if the average lifetime value of a client in your organization is


$2500 or $2000, then you understand and very clearly then I can make an
investment in getting more of those. If you KNEW that every time you went
to the well and dropped some money in, that you would pull back up a bucket
of 5 times, 10 times that amount of money, wouldn’t you go to the well as
often as possible, huh?

That’s what customer acquisition through joint ventures thru referral


programs is all about. So once you understand that, let me give you a quick
example. If the average, and here’s a small one or low one. If your average
client brings you an average profit of $75 on the first sale, he or she
repurchases 3 more times a year with an average ticket of $300 and each of
those purchases you make a gross profit of $150, in other words, you got
keystone mark up; if the average patroness’s life last 2 years which would be
very -----, then every client is work $975.

That works and if we were doing a client retention seminar, I would


tell you and go in deeper into the fact that that’s also a reason to fight much
harder in order to keep from losing people and if you have…..I had this with

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a client the other day, their employees – we were doing a training seminar
and then began to bring up this situation: they had a client that was frustrated,
had left and ran their mouth about how bad the service was over a $50
problem – retail sales - $50 – their cost in it was about $20 and I said for $20,
you are kissing thousands of dollars of business goodbye. You are an idiot.
That is, that’s backwards.

So once you understand the value of a lifetime customer, you can


invest in keeping your clients, keeping them happy. You understand like a
Fed Ex, I don’t know what the exact number is with FedEx, but I believe that
the front end people have or used to have something like a $50 threshold.
Problem, something went wrong, they didn’t have to go ask anyone. $50, if it
was under $50, they could fix it without anyone, because they KNOW the
lifetime value of a client. So once you understand that.

The backend. How to leverage that. Once you understand the lifetime
value of a customer, then you understand it is more economical, more
effective to continue marketing back to those people. I told you in the letter
that I sent you that I was going to share with you the most undeveloped,
underutilized, untapped potential for profit, windfall sales and profits in any
organization and that my friend, is your existing client.

Your existing clients provide to you and offer to you the greatest
source of revenue known. Let me ask just a quick pole: how many of you are
mailing once a year to your client base? Once or less? Yeah, to your existing
clients, to people who have spent money with you before, you are sending
something to them at least once a year, at least 5 times a year…..an offer, a
reminder, something, a small percentage 10 times a year, once a month –
who’s sending something every month? Okay, every month. Alright, what

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you do send them? What do you do? Pain management. Right, you are
contacting your referral sources every month. Do you contact your existing
contacts every month? Ok, so they get something once a year from you that
way?

Ok, I shared this with you over the telephone; we talked about referral
programs. We have a chiropractic clinic ~ one guy and one staff member~ a
small office. We created a referral program that was a contest; I’m going to
give you just the brief overview. We created a referral program that was a
contest- it lasted 6 weeks and his prizes were like a large 27 inch TV or
something like that, that he bought at Wal-Mart for $250-$300; the second
prize was like a $100 Wal-Mart gift certificate, third prize was like a $50
Wal-Mart gift certificate. We crafted an offer, a letter than went out to all of
his patients that said here’s an opportunity to get free prizes and whatever
from this chiropractic office and we told them about the promotion – we said
it’s easy, here’s how you do it. Remember I said it’s just a communication
between friends.

We’ve enclosed 3 business cards. Turn them over and write your
name on the back, give them to your friends, when your friends come in (and
on the business card, it offered a free initial consultation, exam and X-rays),
when your friends come in and bring this in for their free exam and X-rays,
we are going to give you a point basically in the 6 week long contest and at
the end of the 6 weeks, we are going to tally up the points, we are going to
keep a big board in our lobby and keep names of who has referred the most
and make it real exciting.

Well, as you know a few people get excited but a lot of people don’t,
just in that….he had people running all over town calling and saying can I get

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more business cards. Can you send me some more? Or when they would
come in to get their adjustment, they would get more business cards or VIP
cards and take them out to their friends and they started passing the out.

Some of the company executives handed them to out to all of their


employees; people starting passing this around. In 6 weeks time, a small
office with one man and a receptionist regenerated immediately income of
over $37,000 in new business in that period of time, not to mention the
lifetime residual value of all these patients over the life of their patronage.

That was immediate business so I’m telling you, you are talking about
referral programs, referrals from your existing clients is a
powerful….remember when you need to be doing a good job at what you do
but them taking that and leveraging that. Making an investment in getting
new business. Let me give you 3 things that you need to do:

Get all of your names, your past clients, people that have inquired
about your services, all these names that you either have on note cards or
rolodex, business cards, in your planner, in outlook and everything else and
get them into one manageable database where you can massage and utilize
that data. That’s number 1.

By the way for a penny a name, you can send these to a mailing list
company and they will run these names against the change of address, the
national change of address database for a penny a name, okay and verify that
the Addresses are still good, so that’s good value, how about that deal? Okay
is that good enough value for you?

Mine that data for sales opportunities. If you have a way that you
know people have bought certain types of products from you in the past for

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example, Richard, and you know this other product would compliment that
really well, then mine that data base and do a sort and search on people
who’ve bought that particular product and send them an appeal or offer for
this other one that’s very complimentary and you can craft that in your offer.
Recently or in the past year you bought X from us, I figured you would want
to know about Y and you tell them about all of this, so it’s a great way to
mine that data.

Test and create different offers. I can’t stand up here in front of you
and tell you what’s specifically going to work. Every time I take on a new
client, what we do, I’ll tell them…I’m going to bring a lot of stuff to the table
that’s proven but a lot of this in terms of offers and how we approach it is a
big experiment.

So we have to begin trying different suppositions, different ideas,


different strategies or tactics and see what works best, so testing them.

Anyone who tells you otherwise is full of BS!!!

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Strategy 5: Unleashing
your human advantage.

How many of you have employees in your company? How many of


you frankly wish you didn’t, just frankly speaking? (laughter)

Why we are here…


Okay as long as we’re honest. We are here. Why we are here – I often
say that to employees – this is something you can take back and share with
them. #1 we are here to keep our existing clients and #2 to create new clients
preferably by referral and word of mouth.

That’s really – I don’t care if they’re in accounting and they fold


invoices and send them out or what they do, everything that they do must be
focused on supplying the needs of the clients. People say well I’m not in
sales. Wrong.

Everyone is in sales
If you interact with customers, if you answer the phone, if you do
anything related to the company, you are in the business of selling. You are
in the business of selling your ideas to your superiors and your team members
or you are in the business of selling your products and services to your clients
but that’s why we’re here.

So when we talk about unleashing your human advantage, we are


talking about the people working in your organization and I want to share
with you some profound information. There is research that shows why

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customers do not return. Research has shown that 1% died. There are days we
wish more of them would die, right?

(Laughter)

Are there any honest people in the room? 3% move away, 5% make
other business contacts, 9% leave because they perceive and I say perceive
that our prices are too high and 14% because they perceive that our
merchandise or product is inferior. In other words it doesn’t solve their
problem, that’s why they leave but 68% of the people who do not return don’t
do so because of the attitude of the personnel.

How many of you have been driving down the road and seeing a sign
maybe or maybe a serviceman with a logo go by and you go, yeah, that’s the
one such and such told me about. Never do business with them or that’s the
restaurant they were talking about – I’m not going there.

Okay, so it does have a dramatic impact. You know, when you do


something exceptionally well, people will tell other people about it but it’s
those memorable negative things that if we don’t fix them, it can have a
dramatic impact and I said that to say this – I need that connection between
your people.

If you have employees in your organization and you take these


strategies back and begin to implement them in your organization, you will
have people who are going to get real uncomfortable because it’s change.
Okay, all of a sudden the organization starts growing, people will be getting
excited and happy and things will start happening and you are not going to
have as much stress because you’re going to have more money that you are
going to be able to pay your bills with and that you can do stuff with and

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people who are satisfied with status quo with the organization are going to
get extremely uncomfortable. It’s happened time and time again.

So what we tell people is that you must have a continuous and


ongoing process to bring your people up to the same level that you are at, to
bring them up to speed at the point you’re at. So that everyone in the
organization is thinking the same way. They are acting the same way, they
are talking the same talk, everyone is thinking how can we grow the business.

We know now that clients are worth this much and they’re so
important; if we screw it up and run them off and mess it up- this is what it
costs, and ultimately that could cost me my job because this company might
not be here, if we do that enough times. And so you begin to make those
connections.

So you must on a continuous basis be putting (if you would like a


power point of this slide I’ll send it to you by email) but knowing the lifetime
value of a client tells you what you lose every time you lose a client. The
kind of money that you lose, but it also tells you what you gain and what you
can potentially invest in getting new clients and so when you understand that,
when you can teach your people that, all of a sudden it make Joycelyn, that’s
why I made the statement – it’s a gutsy move but what happens……….I
didn’t finish the story……………….what happens is when you tell a
salesperson that you have to maintain your existing client base, you have
certain benchmarks that you must meet but if you are meeting those
benchmarks for every new client you bring into our organization, every new
advertiser that’s never advertised, I’ll give you 100% of the first month’s
advertising revenue.

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JP Maroney’s “The Art Of Profitable Growth!” 40

What happens is that they become highly, highly motivated. That’s


why I said the commissions structure are very backward in many
organizations- very very backward, because what happens is that we expect
them to basically take the risk and the growth over the long-term and they
don’t get nearly as motivated by that. It’s not right for every organization, it
doesn’t work for every organization but if you have people who work and
their pay is based on their performance, I challenge to look and see if you can
apply that model to your business because it will motivate people.

Now people who make or break the business. I talk bout this when I
keynote at big conferences, it’s generally my message that most people will
never go out and start their own business. They are going to work for
someone – it’s their life. But your employees, given the opportunity, the
motivation and the tools- they will treat the company as if it was their own.

There’s a process when I show, when I talk to you in a few minutes


about our employee development system, there is a process; you see most
employees have never been taught this stuff – a lot of you have never been
taught some of the stuff I’m saying. But most employees have never been
taught how to run the computer, or how to do this but they never been taught
how to be a good employee, how to not get fired. And so that’s what we try
to teach them every single month you need to be – people say I don’t have
time to have more meetings - but really you don’t have time to NOT have
more meetings.

If you can take 1 hour in your business a month and we’ve even
created a system that you don’t have to be at the meeting but if you can have
1 hour set aside and you tell your entire staff – this is the time to develop and

© Copyright 2005 JP Maroney All Rights Reserved


http://www.JPMaroney.com 1-800-304-5758
JP Maroney’s “The Art Of Profitable Growth!” 41

grow. This is for us to become a better organization. This is for us to look for
new profit centers.

We had one in our what we call ‘opportunities for improvement’


meeting with our video series where a power company in Oklahoma was
meeting with their employees and one of the lineman and said you know
what why don’t we take, we have these parts, I’m not a technical person, but
it was some type of electric motor part, some type of electrical coil thing, he
said why don’t we take those parts- we are throwing them away, discarding
them – spending millions and millions replacing them, why don’t we go to
like a goodwill industry organization where they work with disabled people
or people who have some sort of handicap and why don’t we get those people
– teach them how to rewind these parts and remanufacture them and why
don’t we buy the equipment and give it to them to do this And why don’t we
buy those parts back from them, I bet we could get them back, we’re giving
them the parts, we could buy them back at X dollars, so much less. And the
manager came to him and said how long have you known about this. He said
since I climbed the pole 17 years ago. He said well why didn’t you ever share
it. He said cause nobody ever asked.

And see if you’re not getting your people together on a consistent and
regular basis and saying how can we be better, how can we improve. See
success – the top 3% in society ask all the hard questions, they ask every
question to which they are afraid of the answer. How can we be a better
company, how can we improve profitability, how can we serve our clients
better, how can we be a better organization, how can I be a better leader. If
you get your people together on a regular basis and have a common theme
and take them thru this process and at the end ask them what ideas do you
have for improving our organization. All of a sudden you are going to get that

© Copyright 2005 JP Maroney All Rights Reserved


http://www.JPMaroney.com 1-800-304-5758
JP Maroney’s “The Art Of Profitable Growth!” 42

stuff that they have been going home and telling their spouse or telling their
friends, if we’d only do X, we’d make more money. If we’d only do Y, we’d
save more money and you are missing out on a great opportunity. Your
people are a competitive advantage.

All factors being even, location being the same, you’ve got
competitors down the road from you, right? All factors being even and
equal, people make the difference.

People – the distinction is people.

© Copyright 2005 JP Maroney All Rights Reserved


http://www.JPMaroney.com 1-800-304-5758
JP Maroney’s “The Art Of Profitable Growth!” 43

CLOSE…
It’s been a pleasure to be with you. Be sure to turn in your evaluations
and I hope w can do this again sometime. You are all on my list but the way,
so you’ll hear from me. And it’s been a pleasure to be with you. And thank
you very much.

NOTE: Contact JP Maroney direct at


1-800-304-5758 or email info@jpmaroney.com for
more information on how he can help
you grow your business.

© Copyright 2005 JP Maroney All Rights Reserved


http://www.JPMaroney.com 1-800-304-5758