Jay Abraham – Mastermind Marketing System

CD 1

Leverage

Bad leverage is when you buy something that is dependant on the market e.g. house
prices. Good leverage means getting more from the same efforts. Cost per sale is the
same so getting residual value gets you more for your money e.g. having a good
backend is good leverage.

Most businesses follow industry norms.

Optimising is getting the maximum result from the minimum time, effort, risk &
expenditure.

Upside leverage means getting the same effort, expense & time to produce far greater
upside yield. Examples, higher lead conversion, upsells, backend products, continuity,
etc

Always focus on the engineering compound dividends from your business.

In order to get great success you must be able to engineer breakthroughs in your:

• Marketing
• Strategy
• Innovation
• Management

You must travel outside your current industry to accomplish the above because then
you start seeing how other people in different industries accomplish things.

Think of ways to:

• Number of customers
• Increase number Products/Services they could buy from you
• Frequency of purchase
• Referrals

Don’t have tunnel vision but instead have funnel vision.

You cannot optimise until you step back and externally evaluate the opportunities
available to you.

People don’t buy products and service they buy Results.

How do the top companies in other industries lead generate??

If you just try to conform with industry norm you will be severally limiting your success.

The Science of Optimisation – resign yourself to get the highest the best performance,
results, outcome, productivity, yield & strategic connect with everything you do and
everyone you deal with.

Commercial real estate appraisal looks at highest financial potential in a property.

Ask yourself what is the highest & best use of .........? Look at how other professions do
it.

Geometry of your Business

Try to get many different elements to improve their productivity at the same time. This
has a compound affect that creates geometric growth. You are hitting people from many
different angles – force multiplier effect.

The combined effect of making more sales, converting more leads, getting them to
come back more often, selling more to them, getting more referrals, bringing in more
people more often, etc. The combined effect is geometric.

Example is that Federal Express which took it’s system from how federal banks cash
their cheques. Another is roll on deodorant which comes from ball point pens. Also fibre
optics comes from aerospace technology.

Marketing is the process of conveying the measureable, tangeable and buyable

benefits of your product/service at work in someone’s life or business so the
recipient is not only grateful but they also desire it so badly that they wouldn’t go
elsewhere. Always bring bigger benefits than anyone else.

It is easier to be geometric than be linear.

Cornerstone 1 - First Things First

First maximise what you are already doing before bringing in new breakthrough
strategies.

Analyse your company by quantifying, measuring and improving. Make things that are
doing well perform even better. Look at things that are not performing well by replacing
whatever necessary. Is it the people or strategies? Identify and isolate what is wrong
and then borrow a replacement from outside your industry. Be very judgemental and
see what the principles are, replacing as necessary.

Why does someone need to be the master of all trades?? By the analysis you will find
that people are much better than others at certain tasks and delegate that way.

Compare everything you do with other industries.

Always use a salesletter over a brochure/catalogue.

5 Things to know about Lead Generation

1) Quantity
2) Quality
3) Convertibility
4) Residual Value
5) Acquisition Cost

CD 2

Cornerstone 2 - Add New Strategies

Borrow success processes from other industries into yours. You will stand out if you do.

Cornerstone 3 - Strategy of Pre-Eminence

Replace the mindset and philosophy with Strategy of Pre-Eminence.

You must be able to articulate the result and outcome that the client is looking for so
there is no other choice.

1) You must view your relationship with your clients in a professional, trusted and
advisory authorative role rather than as a commodity vendor of products or
services.
2) Refer to them as clients not customers. Clients are under the care and protection
of others.
3) Don’t fall in love with your company/product/service. Fall in love with your clients.
Be externally directed. Never let your clients lose out by doing business with
someone else. Never let them buy less than they should for their benefit.
 4) Always look at things from the clients best interest and ask yourself on how much
more value you can offer them from their perspective so they couldn’t live without
you.
5) Have a brilliant USP so you are seen by your market as the only viable solution
to the market. You want for them what they want. You are the only person who
can deliver the result. What is the biggest serving advantage you offer that
someone covets.

People who have this mindset realise the clients buy the result or outcome that your
service/product provide.

How much more value, education, benefit & value do you have to display to convert
leads?? It should always answer the question –WHATS IN IT FOR ME??

Cornerstone 4 - Never Grow Your Business Incrementally

2 key elements

1) The 3 way to grow a business model

2) Power Parthenon of geometric business growth

Always look to grow geometrically and always look from a strategic not tactical
sense. Look to how you can differentiate your business.

3 Ways to Grow a Business

1) Increase number of clients – least effective and most effort

2) Increase size of transaction
3) Increase frequency of transaction

Using all 3 in tandem grows your business geometrically.

How to get more clients

• Attrition rate means number of previously buying clients that are now inactive.
Putting in a program to reduce this adds massive value.
• How many sales people (or anyone that has contact with your clientele) are
trained in advisory and consultative selling?? Getting this training is essential for
both you and your staff. This can vastly improve bringing in new clients.
 • Try different client generation processes and measure and quantify them. Always
improve them.
• Establish referral systems for each facet of your business. Make it a condition of
doing business with you. Most powerful option available to generate new
customers.
• Acquire new clients at break even/loss on front end and make the money at the
backend. Lower that hurdle/barrier of entry. Alternatively use the profit on the
front end to make more attractive bonuses.
Marginal Net Worth - Understand the lifetime value of a client worst case
scenario.
1) What do they buy up front
2) How often do they purchase
3) How long will they be an active client
4) How much do they buy each time
5) How many referrals do they make

How much will you now pay for a customer??

• Guarantee business through risk reversal. Guarantee the result and benefits.
Reduce the risk factor on the side of the prospect. Make it easy to say yes. It will
become a competitive advantage. If your results can be easily denominated in
the clients mind then guarantee it.
• Host beneficiary relationships – people who have a list and getting them to
advertise and recommend you
• Use direct mail
• Running special events and information nights especially at key times in the year
• Acquiring lists from brokers
• Develop a USP – be the only viable solution for people. This also reinforces your
marketing. Distinguish was your business does.
• Use public relations – write articles for trade magazines, get articles written about
you. Get people to solicit you not the other way around.

CD 3

10% increase in transaction size

Clients should get the greatest value from you and it is your duty to tell them. Never let
them buy less than they should.

Get them to buy more when they do. It’s in their best interest.
 • Have backend products. If they buy a product/service there are complimentary
products for it too. Focus on the best combined outcome for the client.
• Bundle them together.
• License new products
• Cross sell or Upsell better performing products/services
• Point of purchase special offers.
• Price perception is dependant on how well you can paint the result to the
clients life in the clients mind. Don’t price at the same margins. Raise prices.
• Change profile of product – make it more upscale. The more expensive the more
value is perceived
• Offer larger units of product with purchase at a discount.

How to make purchase more frequent

• Develop more backends that you send out to them

• Contact them more often in an education role. If you have real value then you are
stealing from them by not communicating with them often.
• License new products – what are complimentary before, during or after products
that go with that sale??
• Increase the utility of your service

2 Types of Clients

1) People you pay – vendors, staff – fall in love with these first
2) People who give you money

Power Parthenon of Geometric Growth

Recognise that there are 2 business models:

1) Diving board theory of business flow – being dependant on just one

approach/strategy for generating revenue – screwed if it goes wrong
2) Power Parthenon – multiple approaches/strategies for generating revenue.
• More robust and secure business
• Massive increase in revenue
Build Sub-Parthenons

• Multiple referral systems (seasonal, preferred buyers, etc)

• Introduce telemarketing as well as direct sales
• Introduce direct mail in different ways
• Keep improving performance

Either you work hard for your business or your business work hard for you. Your
business should be worth more to you when you are tired of it not when you are there.

Get the ‘you’ attitude.

CD 4

Testing

In every element of your business you should be testing. When you comparatively test
one approach to the same thing with another, one will always outpull the other by up to
21 times. Things to test:

• Headlines – anything that is the articulation of the opening statement in any

presentation. Not only ads and sales letters. It can also be the first statement
when someone rings in to inquire, the banner you display at a trade show, first
words on the front of a brochure, etc. Should be the reason why or articulate the
big benefit or best outcome. You cannot determine what the winning headline is
until you test it.
• Proposition – test the premise your whole approach is built around. Example:
new product vs revolutionary new product
• Pricing – changing one number can greatly enhance results e.g. $17 to $15.
$69,$89, $99 or $109
• Guarantees – better than risk guarantee
• Call to Action

Isolate how every primary process is performing and be constantly improving it. Keep
raising the bar.

One test one variable at a time.

How to get where you want

If you want great wealth then you must change and do what is required to get it using
the geometric growth model. You just know where you want to be and define what
success means and looks like to you. Without knowing what it looks like at the end then
working backwards you cannot achieve it.

Forge your own Optimal Success Strategy. You may not want staff, offices, inventory,
etc and create options to make it reality.

Questions to ask yourself:

• What initially got you started in your career?? What was the motivation??
• When I first started out where did my clients come from??
• Why in the beginning did clients buy from me??
• Why do they buy from me now?? Has it changed??
• What primary method of generating clients did I use to build my business??
• Which of my marketing efforts brought in the bulk of my clients??
• Do I test the various aspects of my marketing and selling activities to make sure
they are working in an optimised way and if they are not do I go outside my
business to find ways to improve them??
• How well am I connected with my clients at the transactional stage?? Do I know
who my best Clients are?? Do I know my attrition rate and do I try to get the
back?? Am I connected to them at all??
• What are the demographics of my current clients??
• Who else benefits from your success?? Vendors, shareholders.
• How many of my suppliers and business colleagues would be motivated to help
me to be more successful if I pointed out that it improved their success too??
• When I create a new client for my business, who else do/could I create a client
for??
• Describe completely what your business does?? How do you sell, what you sell,
who you sell to, why they buy it, any niche you serve and why they gravitate to it.
• What is my business philosophy as it relates to my clients??
• How have my methods for doing business and products changed since the
inception of my business??
• What are my sales per employee, department, category or industry served??
• What’s the biggest client complaint my company receives and how do we resolve
it if we do at all?? What’s the second?? What is important to my clients??
• What is our current Unique Selling Proposition?? What is our advantage??
• Is your USP a consistent theme in all your marketing & sales efforts?? Does the
office look classy but the toilet is dirty?? Incongruency is the kiss of death.
• Who are your biggest competitors and what do they do that you don’t? Can you
do it better??
• What is your competitions biggest failure and how can you take maximum
advantage of it
• What do your clients really want??
• Do my clients purchase from me exclusively or do the buy from my competitors
too??
• What’s your true market potential?? Get clients info.
• What does it cost to get a new client?? Allowable cost is dependant on life worth
of a client. How much can you spend on a client?? Can you afford to spend
based on third or fourth purchase down the line??
• What is your biggest and best source of new business and are you doing
everything possible to get the most from it??
• What has been your single biggest marketing success to date?? Have you
dropped it too early??
• How many better ways could you reduce the cost of transaction?? Reduce the
hurdle for you clients.
• After the initial sales, is there a system where you constantly communicate to
sustain the relationship with your clients??
• Do have an adequate supply of testimonials and success stories in print, audio
and video??
• Do you actively activate referral business??
• Have you tried selling your list of unconverted leads to a competitor on a Joint
Venture??
• Do you make consistent efforts to ask your clients about what your company is
doing for them?? Make sure you your clients appreciate the efforts you make.
• In what ways do I try to upsell my clients??
• Do I need to make money on a first time buyer or can I just break even because I
make money on the backend??
• Do I ever barter my products/service with other companies to access other
products/services I couldn’t otherwise afford??
• What kind of guarantee do you currently offer your prospects and how does it
compare with your competitors??
• Do you know your client attrition rate and what are you doing to reduce it??
There are only 3 reasons – They had a bad experience, outgrew your services or
a reason nothing to do with you.
• How do you currently capture client data??
• What is your average transaction size??
• How much is the initial sale to a new client worth worst case??
 • Do you joint venture with other people?? Endorsements.

CD 5

Well Crafted Sales Letters

Basics of sales letters:

1) Get readers attention – headline

2) Tell the reader why they should be interested
3) Tell the reader why they should believe what you are saying – credibility and
authoritive evidence
4) Prove it’s true with examples
5) Itemise and describe all the benefits of your products/services. People buy
results, advantages and outcomes.
6) Tell the reader how to respond

Sales Letters Formula:

AIDA
• Attention – Headline
• Interest - tell a story, giving proof and context
• Desire – prospects need to see results in their mind
• Action – motivate the reader to action

Components of Direct Mail Package:

1) Envelope – make it look personalised to get it read. If it is a very defined list or a

current topic try using teaser copy. Teaser copy should focus on the specific
topic of the letter. ‘How to.....’ Test both.
2) Sales Letter – It’s the beef of the package and presentation. It should address
and overcome every objection. Record your best sales personnel making a
presentation and transcribe it.
3) The Brochure – The brochure is only an accompaniment to the sales letter.
4) The Lift Note – a summary of the sales letter. Should be spoken in the voice of
someone else. Restate the entire essence of the proposition. What in it for me??
5) The Order Form – call to action. Set appointments, sell a service/product,
proceed a call, follow up letter for buyers regret, announce new products.
Headline Examples to be tailored to what you do

• The secrets of making people like you

• A little mistake that cost a farmer $300 a year
• Advise to wives whose husbands don’t save money
• Are you ever tongue tied at a party?
• How I improved my memory in one evening
• Discover the fortune that lies hidden in your salary
• How I made a fortune with a fool idea
• Who’s fault is it when children disobey
• Have you any of these symptoms of nervous exhaustion
• Have you a worry stock?
• How a new type of clay cleared my complexion in 30 days
• 161 ways to mans heart in this fascinating report for cooks
• Is the life of a child worth a dollar to you?
• Do you do any of these embarrassing things??
• 6 types of investors which group are you in??
• Today add $6000 more to your state for the price of a good dinner
• Does your child ever embarrass you
• For people who want to write but can’t get started
• They laughed when I sat down to the piano.... but their face transformed when
I started playing
• How to do wonders with a little land
• Little leaks that keep men poor
• How much is worker tension costing your company
• For men who want to quit work one day
• Buy no desk until you have seen this sensation of the business show
• Right and wrong farming methods and little pointers that will increase your
profits dramatically
• Did you ever see telegram from the heart?
• It’s a shame for you not to make more money when these men do it so easily
• Thousands now play who never thought they could
• Make this one minute test of an amazing new kind of shaving crème

Headline Formula

17 thousand blooms from a single plant – measure size of claim

In 2 seconds bare aspirin dissolves in your glass – measure the speed of the claim
6 times wider washes – comparing the claim

Melts away like ugly fat – metaphor to something people can relate to

Taste like you just picked it – sensorise it – feel, touch, see ,hear, smell

At 60 miles per hour the loudest miles in the Rolls Royce is the electric clock –
demonstrates the claim with an example

How a bald headed barber saved my hair – states claim as a paradox

Shrinks hemorrhoids without surgery – removes limitations from the claim

9 out of 10 decorators use one-to-weave carpets for long life at low cost – associates
claims with the values of other people with whom the prospect wishes to be identified
with

Relieves the congestion in all 7 nasal passage instantly – shows how much work in
detail the claim does at one time

Here’s what you do to get rid of pimples fast – offers info on how to accomplish the
claim

Here’s what doctors do when they feel rotten – ties authority to the claim

Before Weezo hay fever medication made you drowsy. With Weezo you can have relief
and be fully alert – before & after claim

Announcing guided missile spark plugs – stresses the nunas of the claim

Would you believe it, I have a cold – states claim as a case history question

Floats fat right out of your body – connects the mechanism to with claim

When you are weary with day time fatigue take Alkeseltzer – gives a name to problem
or need

CD 6

Keys to Quantum Growth & Breakthroughs

1) Work with the 3 ways to grow a business model

2) Operate your business in the Power Parthenon
3) Constantly develop multiple strategies in each of the above categories
Consistently travel outside your business & industry for new ideas. Be systematic by
starting to look at things you never did before.

Try the following:

• Read other industry Trade Journals

• Get other peoples sales receipts
• Ads in magazines and papers
• Ghost shop at other businesses
• Study books and tapes
• Build a mastermind group preferably from different industries
• Write down anything that excites you

Past Customer Re-Activation

You should know who is buying regularly from you and who isn’t.

3 Primary reasons why someone stops doing business with you:

1) They had an interruption in their life and stopped doing business with you for
reasons nothing to do with you – correct by contacting them
2) They did have a bad experience with you - correct by contacting them and
apologise and whatever to get them back
3) They stop having a use for your product – provide new products and get referrals

If you want to be interesting all you need to do is be interested.

If you want respect all you need to do is be respecting.

E-Commerce

The optimal purpose is use in combination with brick & mortar business. It’s just another
media. An enhancement.

Email is very powerful when used strategically. It’s a very intimate and inexpensive form
of communication but it needs to be humanised and externalised.
Websites are great for providing free information to prospects and capturing prospect
contact information. Good for niche marketing.

Studying the Competition

Monitor & evaluate what your competition is doing as well as people who are not in
direct competition with but sell to the same clients.

Subscribe to newsletters. See what the competition sends out. Swipe copy.

Example womens retailers:

• Look at other womens retail websites

• Womens retail books
• Other retail websites

Goal Setting

You can’t accomplish your goals without knowing what it is first. Know what you want
and reverse engineer it. Why do you want it?? Where are you now??

Look at ways to geometrically increase your business.

Have a business that works harder for you.

Study continuously how other people do things in their industries.

Conclusion

Quote 1:

‘Most people struggle silently with the absolute wrong question – am I worthy of this
goal?’

Should be

‘Is this goal worthy of me!!’

Quote 2

‘If you set your sights for the moon and the stars one thing is certain you will never end
up with a handful of mud’.